-..:::7rr. ABco . RI E2.~ iJ4 lR=\-2ooD STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS I JEFF DAVIS COUNTY BOARD OF EDUCATION HAZLEHURST, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor 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 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ADDIDONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS . ANALYSIS OF 1v.1. u,v EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 5 BYPROGRAM Page 2 4 7 8 20 22 24 25 26 28 29 31 32 JEFF DAVIS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION TI COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION ill AUDI'I'E.E'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS s Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RUSSELi. \ \7 HINT()N STATE AUDITOR (404 I 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 \\1asl1ingtt111 Street, S.W.. Suite 214 Atlanta, Ge(1rgia 3()334-84()() July 16, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Jeff Davis 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 Jeff Davis County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe JeffDavis 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perfo1111 the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall ofipn1.ann1'coina.l statement presentation. We believe that our audit provides a reasonable basis for our As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 2000ARL-13A * 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 confo1111 to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confo11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo11n to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general purpose fmancial 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 Jeff Davis County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confon11ity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated July 16, 2001, on our consideration of the Jeff Davis County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfo11ned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was perfo11ned for the purpose of fonning 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 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such info11nation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial state1nents and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infotmation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 2000ARL-13A A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia An, ,tated Section 50- 6-24. RWH:jb 2000ARL-13A Respectfully submitted, w. ell W. Hinton Sta e Auditor JEFF DAVIS COUNTY BOARD OF EDUCATION JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food Amount to be Provided in Future Years For Payment of: Capital Lease Agreements Compensated Absences Total Assets GOVERNMENTAL FUND GENERAL FUND SPECIAL REVENUE FUND $ 119,325.24 $ 2,545,818.00 389,987.37 347,719.14 9,929.31 10,032.06 $ 2,935,805.37 s ======4B=7='=,o=o=5.7..5= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Notes 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 Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Equipment Purchases Undesignated Total Fund Equity $ 306,908.74 192,232.71 $ 40,708.19 8,350.00 151,023.28 $ 507,491 .45 $ _ __;1:.,:9..:.1._,_7=.31.:.,.4::.;7:,_ $ 2,059.44 $ 10,705.72 6,171.90 9,929.31 10,032.06 48,584.67 2,371,497.91 264,607.19 $ 2,428,313.92 $ _ _.::;29:::,5::.,.:,2:.:.7..:.4::28:::... Total Liabilities and Fund Equity $ 2,935,805.37 s ........4.B. _7_.o_o_s.7...s... The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" TYPES ACCOUNT GROUP CAPITAL GENERAL TOTALS PROJECTS LONG-TERM {Memorandum Only) FUND DEBT JUNE 301 2000 JUNE 30, 1999 $ 464,546.21 $ 583,871.45 $ 740,246.75 2,545,818.00 1,404,436.03 394,278.50 1,131,985.01 608,368.55 9,929.31 10,032.06 17,736.03 10,267.68 $ 88,106.39 240,068.05 88,106.39 240,068.05 31,965.20 208,007.12 $ 858,824.71 $ 328 174.44 $ 3,021,027.36 $ 56,174.24 260,100.00 280,080.88 60,836.40 $ $ 657,191.52 $ $ 88,106.39 240,068.05 328,174.44 $ 306,908.74 289,115.14 $ 159,373.28 260,100.00 280,080.88 60,836.40 88,106.39 240,068.05 374,289.04 137,567.76 170.00 95,391.64 125,583.19 31,965.20 208,007.12 1,684,588.88 $ _ _.;;.97a.aa2.,9:;.;.7-=.;3.;.;:;.95;:;_ $ 201,633.19 0.00 $ _ _2___0__1_.a,6=3..=.;3_.1__9___ $ $ 2,059.44 $ 9,919.32 10,705.72 14,098.92 6,171.90 6,171.90 9,929.31 10,032.06 201,633.19 17,736.03 10,267.68 48,584.67 2,636,105.10 12,662.17 1,977,197.39 $ 2,925,221.39 $ 2,048,053.41 328.174.44 $ 4,609.810.27 $ 3,021,027.36 -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, 2000 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Capital Outlay Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 11,071,506.46 $ 3,070,994.41 298,542.20 $ 14,441,043.07 $ 486,827.15 2,001,665.09 286,743.65 2,775,235.89 $ 9,600,421.99 $ 1,371,833.19 556,217.38 396,637.84 338,052.27 394,987.61 949,521.80 71,196.04 1, 171,595.45 593,988.74 393.12 68,206.52 5,030.31 6,624.80 38,771.94 52,341.26 131,967.19 328.00 46,724.33 1,028.14 22,897.39 45,932.87 2,463.98 1,112,807.36 23,464.71 11230.74 11,762.60 11057.40 $ 14,2161341.26 $ 218011143.71 $ 224,701.81 $ _ _..;;2=5.,_,9.;;;.07.;.;=82;;;.. $ 41,098.26 407,668.71 $ 36,016.17 $ 4481766.97 $ _ _..;:3;.;:;6..,0"-'-16=.:.-'-'17;_ $ 673,468.78 $ 1,754,845.14 10,108.35 293,208.27 -7,806.72 -235.62 FUND BALANCE JUNE 30 $ 2,428,313.92 $ _ _2_9_5_,2_74_._2.a.. The notes to the general purpose financial statements are an integral part of this statement. -4- . EXHIBIT "B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) - - - - -Y-E.t\R ENDED JUNE 30, 200<1 _ JUNE 30, 1999 $ 516,612.20 $ 1,571,961.01 _ _ _...;.7...;.49;;.;..5=2..... $ 2,089,322.73 $ 12,074,945.81 $ 2,001,665.09 4,642,955.42 586,035.37 19,305,601.69 $ 11,033,971.40 1,769,864.79 3,048,770.63 506,615.59 16,359,222.41 $ 10,972,255.18 $ 9,862,346.40 $ 12,499.19 1,481,275.91 608,558.64 528,605.03 338,380.27 441,711.94 950,549.94 83,695.23 1,194,492.84 639,921.61 393.12 70,670.50 1,117,837.67 6,624.80 1,520,047.85 552,857.43 473,749.65 393,917.10 390,882.04 830,399.16 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 27,678.76 _ _ _ _4_9__9_.=80__ 62,906.07 2,787.94 20,321.80 3,214.65 $ 1,521,953.66 $ 18,539,438.63 $ 16,550,638.38 $ 567,369.07 $ 766,163.06 $ -191,415.97 $ 77,949.00 $ 119,047.26 443,684.88 $ 1,137,256.59 -443,684.88 -443,684.88 -1, 137,256.59 $ -365,735.88 $ 119,047.26 $ 0.00 $ 201,633.19 $ 885,210.32 $ -191,415.97 0.00 2,048,053.41 2,240,460.12 -7,806.72 -235.62 277.56 -1,268.30 $ 201,633.19 $ 2,925,221.39 $ 2,048,053.41 -5- 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. 2000 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 Other Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1. 1999 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND ACTUAL (BUDGET BUDGET BASIS} $ 10,789,197.01 $ 11,071,506.46 2,803,016.07 100,000.00 3,070,994.41 298,542.20 $ 13,692,213.08 $ 14,441,043.07 $ 9,884,463.26 $ 9,600,421.99 591,515.81 438,428.36 319,524.00 346,714.98 944,035.77 90,108.06 1,103,820.29 606,801.49 4,842.74 68,188.89 2,466.00 37,991.91 556,217.38 396,637.84 338,052.27 394,987.61 949,521.80 71,196.04 1,171,595.45 593,988.74 393.12 68,206.52 5,030.31 6,624.80 38,771.94 24,695.45 $ 14,438,901.56 $ 14,216,341.26 $ -746,688.48 $ 224,701.81 2,200.00 448,766.97 $ -744,488.48 $ 673,468.78 2,566,413.86 1,754,845.14 -1,137,147.84 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS} $ 485,971.99 $ 486,827.15 1,889,832.01 2,001,665.09 311,096.33 286,743.65 $ 2,686,900.33 $ 2,775,235.89 $ 1,465,992.51 $ 1,371,833.19 91,416.44 174,768.51 58,281.00 6,318.00 950.00 23,185.00 20,000.00 52,341.26 131,967.19 328.00 46,724.33 1,028.14 22,897.39 45,932.87 4,339.00 993,799.00 2,463.98 1,112,807.36 12,820.00 $ 2,839,049.46 $ 2,801,143.71 $ -152,149.13 $ -25,907.82 36016.17 $ -152,149.13 $ 131,222.26 53,893.45 10,108.35 293,208.27 -7,806.72 -235.62 FUND BALANCE JUNE 30. 2000 $ 684 777.54 $ 2.428.313.92 $ 32.966.58 $ _...:;;;29.,;;5.i::,2..7._4.,:;;28:;., The notes to the general purpose financial statements are an integral part of this statement. -7- JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The 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 confo11n to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. - 8- JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICJ,. 'r ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for accrued compensated absences and capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measure1nent focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be fmanced 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-Te11n Debt Account Group. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be dete11nit1ed and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were ernployed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this -9- JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The JeffDavis County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. - 10 - JEFF DAVIS COUNTY BOARD OF EDUCATION .. EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone 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, (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 ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info1n1ation 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. - 11 - JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Jeff Davis County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 14, 1999 (levy date). Taxes were due on December 30, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The 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 1999 tax year (calendar year) for the JeffDavis County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 12.75 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,571,961.01 and was recorded in the Capital Projects Fund. The State will terrninate collection ofthis tax once an additional $5,128,038.99 has been collected or on June 30, 2004, 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 iterns are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets. 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 of this obligation as this amount is deemed immaterial to the general purpose financial statements. - 12 - JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INTERFUND TRANSACTIONS . The Board has the following types of interfund transactions: Reimb1,rsements ofexpenditures initially made from a fund that are properly applicable to another fund ar. recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, - 13 - JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS AND INVESTMENTS (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds 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 Inter111ediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $1,451,163.00. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. . Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category Bank Balance 1 $ 100,000.00 2 1,351,163.00 3 0.00 Total $ 1,451,163.00 CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $2,545,818.00 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 - 14- JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS AND INVESTMENTS Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe ~,tate ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment PooJ ,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 ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are 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 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-tenn instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unetnployment compensation. The Board has obtained commercial insurance for risk ofloss 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. - 15 - . JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 4: RISK MANAGEMENT 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: Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability 1999 $ 331.00 $ 2,012.00 $ 2,343.00 $_----,-____,o=.o=o 2000 $ 0.00 $ 0.00 $ 0.00 $_ _ _~0~.0:.:,:.0 The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December l, 1991, to develop, implement and administer a program ofworkers' 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. 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 Jeff Davis County Board of Education 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 ofthe future minimum lease payments as ofthe date oftheir inception. The changes in General Long-Te1m Debt during the fiscal year ended June 30, 2000, were as follows: - 16 - JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LON(:-:-..TERM DEBT Capital Leases Compensated Absences Total Balance July 1, 1999 $ 31,965.20 $ 208,007.12 $ 239,972.32 Additions Capital Leases Annual Leave Earned and Utilized (Net) 119,047.26 32,060.93 119,047.26 32,060.93 Deductions Payments 62,906.07 62,906.07 Balance June 30, 2000 $ 88,106.39 $ 240,068.05 $ 328,174.44 At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 Capital Leases 2001 ... 2002 2003 $ 52,874.01 42,157.56 1.00 Total Principal and Interest $ 95,032.57 Deduct: Imputed Interest 6,926.18 Net Present Value of Future Minimum Lease Payments . $ 88,106.39 Note 6: LOANS PAYABLE At June 30, 2000, short-te1111 debt (temporary loans) amount to $260,100.00 with a variable rate interest accruing at 2.75 percent below lender's prime. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount oftemporary loans to 75 percent of the total gross income from taxes collected in the preceding year and requires all temporary loans to be repaid no later than December 31 of the calendar year in which the loan was made. .. - 17 - JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 7: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $212,740.40 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $159,304.93 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $12,326.47 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 $41,109.00 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 tc;1n1s. 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 perfo11nance of routine Board operations. The ultimate disposition of these proceedings is not presently dete11ninable, 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 offorty-five days. Upon te1mination ofemployment, 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 - 18 - JEFF DAVIS COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JIB .~ o. 2000 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 Teach~rs Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2000 1999 1998 100% 100% 100% $ 1,093,412.18 $ 1,072,700.15 $ 991,540.21 - 19 - JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 272,715.86 $ 16,719.76 40,402.22 7,777.92 9,929.31 10,032.06 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general purpose financial statements. -20- $ - -3-33-,0-79.45 $ ===2=4-,4.9..7....6=8= $ 11,716.35 $ 5,061.64 36,794.54 19,436.04 $ 48,510.89 $ _ _..;;;2;..;.4i..;.,4.;;;.;97'-'-.6;;;.;;8;... $ 9,929.31 10,032.06 264,607.19 $ ----~0-:,:.00~ $ 284,568.56 $ ----~0-:.:.00~ $ 333,079.45 $ 24,497.68 - ------- - - - - - - --- EXHIBIT "E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 289,435.62 $ 263,149.27 299,539.00 347,719.14 306,442.47 9,929.31 10,032.06 17,736.03 10,267.68 $ 299,539.00 $ 0.00 $ 657,116.13 $ 597,595.45 $ 170,110.38 23,930.20 94,792.70 $ ----'2=8_8_.._,8_3_3__.2=8'-- $ 170,110.38 $ 143,418.46 40,708.19 29,330.96 151,023.28 131,467.76 170.00 $ 361,M1.85 $ _ _3~0~41=3_8_7~-~18'-- $ 10,705.72 $ 10,705.72 $ 14,098.92 9,929.31 10,032.06 17,736.03 10,267.68 0.00 $ ----=0-:.::.00:... 264,607.19 251,105.64 $ 10,705.72 $ 0.00 $ 295,274.28 $ _---'2=9=3=,2=0=8:::,27'-- $ 299,539.00 $ 0.00 $ 657,116.13 $ _ _5_9_7=,5_9_5.,45_ --- - - - - -- - -- - - - 21 - JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services 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 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 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 75,870.00 $ 257,074.15 776,704.32 286,743.65 $ 1I139I317.97 $ _ ___,;2=5;.;..7,.;0;.,.;_74.:...:.;_;:15;.. $ 187,441.45 31,687.01 2,391.61 328.00 1,950.00 $ 13,330.12 1,112,486.30 22,897.39 276.52 366.52 11,762.60 1 057.40 $ 1I125,816.42 $ _ __;2:,:6;.::.0L.:1.I,:.;58::.:..5:.::0;.... $ 13,501.55 $ -3,084.35 $ 13,501.55 $ 279,109.35 -7,806.72 -235.62 3,084.35 0.00 0.00 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 22- $ 284.568.56 0.00 $ -" -- - - ------- ----- - EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 153,883.00 $ 486,827.15 $ 493,953.96 $ 1,224,960.77 2,001,665.09 1,769,864.79 286,743.65 280,543.38 $ 1,224,960.77 $ 153,883.00 $ 2,775,235.89 $ 2,544,362.13 $ 1,045,436.05 $ 20,654.25 124,935.28 42,774.33 1,028.14 24,319.22 2,097.46 $ 1,261,244.73 $ $ -36,283.96 $ 138,955.69 $ 4,640.30 2,000.00 8,007.01 321.06 153,924.06 $ -41.06 $ 1,371,833.19 $ 52,341.26 131,967.19 328.00 46,724.33 1,028.14 22,897.39 45,932.87 2,463.98 1,112,807.36 11,762.60 1,057.40 2,801,143.71 $ -25,907.82 $ 1,170,232.20 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 .10,792.40 2,027.60 2,552,719.04 -8,356.91 32,890.76 $ -3,393.20 $ 14,098.92 41.06 36,016.17 31,376.22 0.00 $ 0.00 10,108.35 $ 293,208.27 23,019.31 271,179.70 -7,806.72 -235.62 277.56 -1,268.30 $ 10,705.72 $ 0.00 $ 295,274.28 $ ___2_93_,2_0_8._2.1.. -23- JEFF DAVIS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000 EXHIBIT "G" ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 464,546.21 $ 464,546.21 $ 355,142.92 394,278.50 394,278.50 $ 0.00 $ 858,824.71 $ 858,824.71 $ ==3=5=5=,1=42==92= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable $ Notes Payable Contracts Payable Retainages Payable Total Liabilities $ FUND EQUITY Fund Balances Reserved For SPLOST Projects Unreserved Undesignated $ $ _ _ _ _.;.:O-c=-00=- Total Fund Equity $ 0.00 $ 56,174.24 $ 260,100.00 280,080.88 60,836.40 657,191.52 $ 201,633.19 $ 0.00 201,633.19 $ 56,174.24 $ 260,100.00 280,080.88 60,836.40 134,168.09 95,391.64 125,583.19 657I191.52 $ _ __;3~5::,:5i...1:,~42::.:;.9::::2~ 201,633.19 o.oo $ _ _ ___,;o:;.:..o=-=o'-- 201 ,633.19 $ _ _ ___,;o:;.:..o=-=o"- Total Liabilities and Fund Equity $ 0.00 $ 858,824.71 $ 858,824.71 $ -=3=5=5.,.1,,...42_._92_ ' See notes to the general purpose financial statements. -24- JEFF DAVIS COUNTY BOARD OF EDUCATION . COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2000 EXHIBIT "H" REVENUES GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 State Funds Taxes Other Funds $ 516,612.20 $ 516,612.20 $ 0.00 $ 1,571,961.01 1,571,961.01 749.52 749.52 Total Revenues EXPENDITURES $ 516,612.20 $ 1,572,710.53 $ 2,089,322.73 $ _ _ ___;0::.:..0::.:0a:..- Current Support Services Business Administration Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Debt Service Principal Interest $ 12,499.19 $ 12,499.19 $ 202,576.37 180,512.73 773,235.88 324,950.93 180,512.73 $ 975,812.25 324,950.93 104,224.09 1,001,656.28 27,678.76 499.80 27,678.76 499.80 Total Expenditures Excess of Revenues over (under) Expenditures $ 202,576.37 $ 1,319,377.29 $ 1,521,953.66 $ 1,105,880.37 $ 314,035.83 $ 253,333.24 $ 567,369.07 $ -1, 105,880.37 OTHER FINANCING SOURCES CUSESl Capital Leases Operating Transfers In Operating Transfers Out $ $ ---3"-'1'"-'4_...,0_35::.:.::;.;83;.. Total Other Financing Sources (Uses) $ -314,035.83 $ Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 0.00 $ 77,949.00 $ -129,649.05 -51,700.05 $ 77,949.00 $ -443,684.88 1,105,880.37 -365,735.88 $ 1,105,880.37 201,633.19 $ 201,633.19 $ 0.00 FUND BALANCE JULY 1 0.00 0.00 0.00 0.00 FUND BALANCE JUNE 30 $ 0.00 $ 201,633.19 $ 201 1633.19 s _ _ _ _o_._oo... See notes to the general purpose financial statements. - 25 - JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Summer Food Service Program for Children * 10.553 * 10.555 * 10.559 NIA $ N/A N/A 112,434.40 437,009.71 $ 176,498.84 (2) 883,299.93 (3) .191,755.12 (3) Total Child Nutrition Cluster $ 725,942.95 $ 1,075,055.05 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 10.550 N/A 50,761.37 50,761.37 Total U.S. Department of Agriculture $ 776,704.32 $ ____1.,..1._2___5_,_8__16__.__4_2___ Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool 84.173 84.027 84.173 N/A $ N/A N/A 5,940.00 $ 157,582.04 20,901.00 7,119.81 (3) 157,993.43 (3) 26,565.76 (3) Total Special Education Cluster $ 184,423.04 $ 191,679.00 Other Programs Pass-Through From First District Regional Educational Services Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 84.011 NIA Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Program 84.332 NIA Elementary and Secondary Education Act Title I Grants to Local Educational Agencies * 84.010 N/A Title II Eisenhower Professional Development 84.281 NIA Title Ill Technology Literacy Challenge Fund Grants 84.318 NIA Title VI Class-Size Reduction Innovative Education Program Strategies 84.340 NIA 84.298 NIA Goals 2000 State and Local Education Systemic Improvement Grants 84.276 NIA Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 NIA 48,447.42 198,363.12 436,148.70 13,679.12 125,000.00 62,972.00 17,136.00 104,676.37 34,115.00 48,905.06 (3) 199,690.59 (3) 438,157.94 (3) 13,679.12 117,235.23 63,139.32 (3) 17,180.74 (3) 115,376.70 (3) 56,201.03 (3) Total U.S. Department of Education $ 1,224,960.77 $ ____1.._,2c.;.6.1..,,.__244---'-'.,.7...3___ Total Federal Financial Assistance N/A = Not Available -26- ------ $ 2,001,665.09 $ 2,387,081.15 JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State and/or Other Funds. Expenditures are not maintained by fund source. Major Programs are identified by an asterisk (*) in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the 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. SCHEDULE "1" See notes to the general purpose financial statements. -27- JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs $ 6,316,996.00 Special Education Programs 1,067,548.00 Remedial Education Program 405,914.00 Media Center Programs 265,759.00 Staff Development Programs 68,096.00 Indirect Cost 1,667,007.00 Pupil Transportation Regular 312,973.00 Bus Replacement 100,747.00 Middle School Incentive Program 224,969.00 Special Instructional Assistance 133,859.00 In-School Suspension 74,526.00 Counselors 25,279.00 Technology Specialist 28,842.00 Local Five Mill Share -1,142,721.00 Educational Equalization Formula 731,588.00 Food Services $ Vocational Education 244,204.00 Other State Programs Alternative Program 55,258.00 At-Risk Summer School Program 12,391.29 Health Insurance 159,304.93 Mentor Teachers 2,754.00 PayforPertormance 194,000.00 Preschool Handicapped Program 39,440.00 Remedial Summer School 3,183.77 Special Education Low Incidence Grant 17,041.00 Teachers' Retirement 12,326.47 Year 2000 Project Funding 9,112.00 Lottery Programs Assistive Technology Computers in the Classroom 75,870.00 12,909.92 59,159.00 $ 6,316,996.00 1,067,548.00 405,914.00 265,759.00 68,096.00 1,667,007.00 312,973.00 100,747.00 224,969.00 133,859.00 74,526.00 25,279.00 28,842.00 -1,142,721.00 731,588.00 75,870.00 244,204.00 55,258.00 12,391.29 159,304.93 2,754.00 194,000.00 39,440.00 3,183.77 17,041.00 12,326.47 9,112.00 12,909.92 59,159.00 Georgia State Financing and Investment Commission Reimbursement on Construction Projects $ 516,612.20 516,612.20 Office of School Readiness Pre-Kindergarten Program 185,005.23 . 185,005.23 Office of Treasury and Fiscal Services Public School Employees Retirement 41,109.00 41,109.00 CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program 120,000.00 33,883.00 120,000.00 33,883.00 $ 11,071,506.46 $ 486,827.15 $ 516,612.20 $ 12,074,945.81 See notes to the general purpose financial statements. -28- JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2000 SCHEDULE 3 PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS Construction, 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 $ 6,700,000.00 $ s _ _ 1,319,311.29 ...;.12:.:9:.:;,6::;;4;;;:9;.;;.o~s (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 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. -29- JEFF DAVIS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 8,056,217.00 $ ----"-2'3-8,'3-7'4-.0-0- $ 8,038,470.74 453,979.12 $ _ _ _40_3-'-,9_3_7._1_2 $ 8,492,449.86 -50,577.60 $ ___8...,_,4_4_1_,8__7_2._2_6 $ o.oo $ =======o..o..o= See notes to the general purpose financial statements. - 31 - JEFF DAVIS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category 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 ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 685,272.00 616,744.80 $ 0.00 1,657,785.00 1,492,006.50 $ 2,343,057.00 90 $ 2,108,751.30 $ 0.00 752,705.00 90 677,434.50 1,377,933.00 90 1,240,139.70 772,910.00 90 695,619.00 458,103.00 90 412,292.70 612,288.00 90 551,059.20 $ 6,316,996.00 $ 5,685,296.40 s _ _ ____,;.o;.;.oo.;. $ 923,779.00 $ 831,401.10 $ 0.00 $ 923,779.00 90 $ 831,401.10 $ 0.00 143,769.00 90 129,392.10 $ 1,067,548.00 $ $ 405,914.00 90 $ 960,793.20 $ _ _ ___::0~.0;.:::..0 365,322.60 s ------=o~.o=-o $ 7,790,458.00 $ 7,011,412.20 $ _ _ _ _.::;0.~00;;.. $ 215,717.00 90 $ 194, 145.30 $ 0.00 50,042.00 100 50,042.00 $ 265,759.00 $ 244,101.3o s-----=o~.o;.:::..o Total Fourteen Weighted and Media Center Programs $ -----8--,0- 5~6-,217..00. $ 7,255,599.50 $ 0.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. $ 22,107.00 $ 22,107.00 $ 0.00 45,989.00 45,989.00 0.00 $ 68,096.00 100 $ 68,096.oo s_____o,..o..,o See notes to the general purpose financial statements. - 32 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 616,744.80 $ 604,767.65 $ 16,817.25 $ 621,584.90 1,492,006.50 1,443,630.27 77,358.00 1,520,988.27 $ 2,108,751.30 $ 2,048,397.92 $ 94,175.25 $ 2,142,573.17 $ 0.00 677,434.50 873,102.54 41,193.64 914,296.18 0.00 1,240,139.70 1,526,420.53 58,050.76 1,584,471.29 0.00 695,619.00 814,818.39 100,740.74 915,559.13 0.00 412,292.70 583,941.26 26,546.57 610,487.83 0.00 551,059.20 498,856.81 54,736.22 553,593.03 0.00 $ 5,685,296.40 $ 6,345,537.45 $ 375,443.18 $ 6,720,980.63 $ 831,401.10 $ 127,183.31 $ 668,222.52 65,899.38 31,979.63 1,952.38 $ 13,693.54 3,595.14 1,209.69 129,135.69 681,916.06 69,494.52 33,189.32 $ 831,401.10 $ 893,284.84 $ 20,450.75 $ 913,735.59 0.00 129,392.10 134,525.87 3,342.61 137,868.48 0.00 $ 960,793.20 $ 1,027,810.71 $ 23,793.36 $ 1,051,604.07 $ 365,322.60 $ 398,827.98 $ 4,700.58 $ _ _4;.;;;0_;;,3,.;;;52;;.;;8;.;a.5;.;;.6 0.00 $ 7,011,412.20 $ 7,772,176.14 $ 403,937.12$ 8,176,113.26 $ 194,145.30 $ 266,294.60 $ 266,294.60 0.00 --------- - - - - - - 50,042.00 $ 50,042.00 50,042.00 0.00 $ 244,187.30 $ 266,294.60 $ 50,042.00 $ ______3_16_,_33_6_.6_0_ $ 7,255,599.50 $ 8,038,470.74 $ ------ --- -- - s 453,979.12 8,492,449.86 s===_ _ _ _ _ _o..o...o.. - ---- --- - -- -- $ 22,107.00 45,989.00 s _ , _ . . , 6 8....o..,9_6_.o.o. $ 53,328.65 $ 53,328.65 14,780.00 14,780.00 $ 68,108.65 $ 68,108.65 s______..,o,..o.o 33 SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS Russ1,1.1. W. H1NT<>N STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wasl1ingt1>11 Street. S.W.. Suite 214 Atlanta. Ge1>rgi,1 3()334-84()() July 16, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Jeff Davis 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 ofJeffDavis County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated July 16, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Jeff Davis County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dett::1n1ination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and perfo11ning our audit, we considered JeffDavis County Board ofEducation's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2000YB-40A control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect 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 ofFindings and Questioned Costs as items FS-6801-00-01 and FS-6801-00-02. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6801-0002 to be a material weakness. This report is intended solely for the info1mation 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. RWH:jb 2000YB-40A - - -Respectfully submitted, .... LLJ. Ru sell W. Hinton St e Auditor RussELI. W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washingt1111 Street. S.W.. Suite 214 Atlanta. Ge1,rgia 3()334-84()() July 16, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Jeff Davis County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 Ladies and Gentlemen: Compliance We have audited the compliance of 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 ofits major Federal programs for the year ended June 30, 2000. JeffDavis County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of 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 ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Jeff Davis County Board ofEducat.ion's compliance with those requirements and perfo1ming such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete11nination on JeffDavis County Board ofEducation's compliance with those requirements. 2000SA-10A In our opinion, the JeffDavis County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Internal Control Over Compliance The management of 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 perforrning our audit, we considered Jeff Davis County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to dete11nine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the no1mal course ofperfo11ning 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 infu1n1ation and use ofmanagement, me1nbers 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, .._. w . ell W. Hinton State Auditor RWH:jb 2000SA-10A SECTION ill AUDfl'EE'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, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 6801-95-02 FS-6801-98-02 FS-6801-98-03 FS-6801-99-01 FS-6801-99-02 FS-6801-99-03 Unresolved - See Corrective Action/Responses Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses 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 ofEducation concurs that this finding, 6801-95-02, remains unresolved. The State Department ofEducation 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 2000 but was not. EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $3,077.96 Finding Control Number: FS-6801-99-01 The Local Board of Education concurs that this finding, FS-6801-99-01, remains unresolved. The State Department ofEducation 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 2001 but was not. GENERAL LEDGER Inadequate Documentation ofJournal Entries Finding Control Number: FS-6801-99-02 The Jeff Davis County Board of Education concurs that this finding, FS-6801-99-02, remains unresolved. Supporting documentation has been provided to some degree. Proper authorization will be implemented for these transactions. Procedures will be in place to sustain that all journal entries have proper documentation and approved authorization to support the validity of these transactions. - 1- JEFF DAVIS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6801-99-03 The Jeff Davis County Board ofEducationconcurs with finding, FS-6801-99-03, remains unresolved. This is a continuation from prior year. At this time, the Local Board of Education has not established to correct this deficiency due to budgetary constraints for hiring additional personnel to maintain these records. This will be implemented between fiscal year 2002 and fiscal year 2004 as set by the GASB 34 act. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 6801-96-01 Previously Reported Corrective Action Implemented -2- SECTIONN FINDINGS AND QUESTIONED COSTS JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RI::SULTS 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 JeffDavis County Board ofEducation 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 Jeff Davis 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 JeffDavis County Board ofEducation'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 JeffDavis County Board ofEducation'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 84.010 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. - 1- JEFF DAVIS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee The JeffDavis County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL LEDGER Inadequate Documentation of Journal Entries Reportable Condition Repeated From Prior Year Finding Control Number: FS-6801-00-01 Forty journal entries were sampled to test the validity and accuracy of the journal entries. This examination revealed that nineteen did not include adequate supporting documentation. It also revealed that all forty ofthe journal entries did not have proper authorization. These conditions were a result of management's failure to properly review journal entries before they are posted to the General Ledger. Procedures should be implemented to ensure that all journal entries are supported by adequate documentation and are properly authorized before they are posted to the General Ledger. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6801-00-02 The JeffDavis County Board ofEducation did not maintain a 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 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. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-