AUDIT REPORT LAMAR COUNTY BOARD OF EDUCATION 
BARNESVILLE, GEORGIA YEAR ENDED JUNE 30,1998 
 
 LAMAR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE 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 
 
6 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
7 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
20 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
21 
 
CAPITAL PROJECTS FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
22 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
23 
 
DEBT SERVICE FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
24 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
25 
 
SCHEDULES 
 
1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
26 
 
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
27 
 
3 SCHEDULE OF STATE REVENUE 
 
29 
 
4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
30 
 
 LAMAR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
ADDmONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
5 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
31 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
6 
 
OVERALL 
 
33 
 
7 
 
BY PROGRAM 
 
34 
 
SECTION II 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPUCABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB 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. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 21, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Lamar 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 Lamar County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility of the Lamar County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
Except as discussed in the following paragraph, 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 ofthe 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. 
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1998, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
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: 
 
98ARL-13B 
 
  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. 
 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, 1998, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department ofEducation 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 30,1997, were improperly recorded in the year ended June 30,1998. 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 ofsuch adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Lamar County Board of Education as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. 
In accordance with Government Auditing Standards, we have also issued our report dated May 21, 1999, on our consideration ofthe Lamar County Board of Education's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants. 
The year 2000 supplementary information on Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation of the supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Lamar County Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Lamar County Board of Education does business are or will become year 2000 compliant. 
Our audit was performed for the purpose of forming an opinion on the general purpose fmancial statements of the Lamar County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, 
98ARL-13B 
 
 Audits ofStates. Local Governments. and Non-Profit Organizations. are presented for purposes ofadditional 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 ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements tak\ln as a whole. 
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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
~w.~~ Russell W. Hinton State Auditor 
RWH:jb 98ARL-13B 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
 LAMAR COUNTY BOARP OF EpUCATION COMBINED BALANCE SHffi 
ALL FUND TYPES AND ACCOUNT GROUp JUNE3Q 1998 
 
Cash and Cash Equivalents 
Invesbnents 
Accounts Receivable 
Due from Other Funds 
Inventories Food Donated Commodities Purchased Food 
Amount Available In Debt Service Fund 
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Laase Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 
 
4",555.Q' $ 
 
8O,13Q.QQ $ 
 
625,082.41 
 
2,981,969.Q7 
 
96,803.75 
 
306,341.71 
 
168,237.51 
 
67,285.49 
 
49Q,87Q.45 
 
2Q,517.51 14,596.05 
 
Total Assets 
 
$ 4.19Q.756.24 
 
283:481.Q7 $ _ _.:.78::;9:...1:.:7.:.1;::.85~ 
 
L1ABILmES AND FUND EgUIJY 
LlABlLmES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Ratalnages Payable Due to Other Funds Capital Lease Agreements Generel Obligation Bonds Payable 
Total Uabglties 
FUND EgUIIY 
Fund Balances Reserved For Debt service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Deficit Undeslgnated 
Total Fund Equity 
 
$ 
 
1Q,133.68 $ 
 
2Q,411.58 $ 
 
62,437.72 
 
547.03 
 
9,868.48 
 
306,456.00 475,50Q.00 
 
$ 
 
1Q 133.68 $ 
 
83,396.33 $ 
 
791,824.48 
 
$ 
 
2Q,517.51 
 
14,596.Q5 
 
$ 4,18Q,622.56 $ 4180622.56 $ 
 
164,971.18 2oo,Q84.74 
 
-2,652.83 Q.QQ 
-2,652.83 
 
Total Liabilities and Fund Equity 
 
4,190:756.24 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. 
 
-2- 
 
283481.Q7 $ 
 
789171.65 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
$ 
 
159,870,34 
 
105,231.64 
 
ACCOUNT GROUP 
GENERAL LONG-TERM 
DEBT 
 
TOTALS (Memorandum Only) 
JUNE 30, 1998 JUNE 30, 1997 
 
$ 1,276,837.76 $ 4,704,633.73 
 
3,076,792.62 
 
2,639,445.27 
 
647,096.35 
 
643,101.09 
 
490,870.45 
 
$ 
 
249,731.53 
 
20,517.51 14,596.05 
249,731.53 
 
22,839.21 14,833.48 
123,11821 
 
5,205,268.47 97,964.93 
 
5,205,268.47 97,984.93 
 
5,431,881.79 119,183.51 
 
265,101.98 $ 5:552,964.93 $ 11 081 495.87 $ 13:898:836.29 
 
$ 
 
40,413.74 
 
112,057.08 
 
62,437.72 
 
59,239.73 
 
547.03 
 
126.31 
 
467,393.40 
 
306,456.00 
 
194,936.20 
 
$ 
 
15,370,45 
 
490,870.45 
 
$ 
 
97,984.93 
 
97,984.93 
 
119,183.51 
 
5.455,000.00 
 
5 455.000.00 
 
5.555,000.00 
 
$ 
 
15,370.45 $ 5,552,984.93 
 
6.453 709.87 
 
6,50793623 
 
249,731.53 
0.00 249,731.53 
 
$ 
 
249,731.53 
 
20,517.51 14,596.05 
 
-2,652.83 4.345.593.74 
4627.786.00 
 
123,118.21 
22,639.21 14,833.46 3,950,270.19 
3,280.038.97 7 ,390,900.06 
 
265.101.98 $ 5,552,984.93 $ 11 081 495.87 $ 13,898,836.29 
 
-3- 
 
 LAMAR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDEp JUNE 30 1998 
 
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 Enterprise Operations Community Services Operations 
CapilalOuUay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expendttures 
OTHER FINANCING SOURCES IUSES} 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and other Financing Sources over (under) Expenditures and other Financing Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 8,713,053.66 $ 
3,459,018.82 507.071.43 
$ 12,679,143.71 $ 
 
424,868.36 1,389,347.50 
232.100.23 
2.026,316.09 
 
$ 7,116,019.18 $ 
519,325.83 375,937.01 231,320.85 202,839.06 747,087.62 102,032.32 1,000,123.56 815,483.33 108,561.59 
18,593.25 73,424.88 44,122.78 
945.57 23,342.96 
21,198.58 8,142.42 
 
787,455.52 
105,097.55 182,861.38 
11,183.93 28,808.63 
6,650.13 7,662.78 
24,248.06 874,535.77 
 
$ 11.408.300.59 $ $ 1.270.843.12 $ 
 
2.028.283.75 -1.967.66 
 
$ 
 
10.96 $ 
 
-202.729.35 
 
$ 
 
-202.718.39 $ 
 
$ 1,068,124.73 $ 3,112,497.83 
 
693.33 -10.96 682.37 
-1,285.29 203,729.16 
-2,121.70 -237.43 
 
FUND BALANCE JUNE 30 
 
$ 
 
The notes to the general purpose financial statements are an integral part of this statement. 
 
-4- 
 
4.180,622.58 $ 
 
200,084.74 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Onlyl 
 
YEAR ENDED 
 
JUNE 30. 1998 
 
JUNE 30. 1997 
 
$ 9,137,922.02 $ 8,481,374.34 
 
1,369,347.50 
 
1,157,942.36 
 
$ 
 
192,018.58 $ 
 
503,028.88 
 
4,154,066.08 
 
3,916,281.88 
 
101.999.22 
 
2,136.22 
 
843.307.10 
 
1.238,326.91 
 
$ 
 
294,017.80 $ 
 
505.165.10 $ 15.504.642.70 $ 14.793.925.49 
 
$ 4,450,261.51 $ 
$ 4.450.261.51 $ $ -4,156.243.71 $ 
 
$ 
100,000.00 277,822.50 
729.28 378.551.78 $ 126,613.32 $ 
 
7,903,474.70 $ 
624,423.38 558,798.39 242,484.58 231,247.69 747,087.62 102,032.32 1,006,773.69 823,146.11 108,561.59 42,841.31 947,960.65 44,122.78 
945.57 4,473,604.47 
121,198.58 285,964.92 
729.28 
18.265.397.63 $ 
-2,760.754.93 $ 
 
7,474,088.23 
667,090.53 240,843.64 225,848.75 250,075.84 750,300.72 110,055.96 1,028,126.90 828,216.01 206,183.93 28,216.79 892,341.39 
39,484.47 2,264,334.44 
103,616.58 337,459.59 
497.20 
15.446.580.97 
-652.655.48 
 
$ 
 
202,036.02 
 
$ 
 
202.036.02 
 
$ -3,954,207.69 $ 3,951,554.86 
 
$ 
 
202,740.31 $ 
 
-202.740.31 
 
$ 
 
.{I.OO $ 
 
5,442.63 -5.442.63 
0.00 
 
126,613.32 $ 123,118.21 
 
-2,760,754.93 $ 7,390,900.06 
 
-652,655.48 8,040,222.11 
 
-2,121.70 237.43 
 
1.563.36 1.770.07 
 
$ 
 
-2.652.63 $ 
 
249?31.53 $ 4.627.786.00 $ 7.390.900.06 
 
-5- 
 
 lAMAR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES 
BUDGET ANp ACTUAL - (N0N-GMP BASIS> 
GENERAL ANP SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 1998 
 
EXHIBIT"C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
~ 
Stale Funds Federal Funds Taxes Other Funds 
 
$ 8,188,933.00 $ 8,713,053.66 
 
3,141,881.57 60,000.00 
 
3,459,018.62 507,071.43 
 
Total Revenues 
 
$ 11.390,814.57 $ 12,879,143.71 
 
EXPENDITURES 
 
Current Instruction SUpport Services Pupil Services Improvement of Instructionel 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 Servioes Operation Enterprise Operations Community Services Operations 
Capital Outlay Debt Service 
 
$ 7,110,902.99 
524,194.31 312,186.92 223,984.13 268,754.09 736,202.25 
95,585.46 1,033,757.99 
808,999.33 115,784.17 
17,588,00 67,143.97 
161,162.17 
 
7,116,019.18 
519,325.83 375,937.01 231,320.65 202,639.06 747,087.62 102,032.32 1,000,123.58 815,483.33 108,561.59 
18,593.25 73,424.88 44,122.78 
945.57 23,342.96 29,341.00 
 
Total Expenditures 
 
$ 11.476,205.78 $ 11,408,300.59 
 
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) 
 
$ 
 
-M,391.21 
 
1,270,843.12 
 
Other Souroes Other Uses 
 
$ 
 
10.96 
 
-202,729.35 
 
Total Other Financing Souroes (Uses) 
 
-202,718.39 
 
Excess of Revenues end Other Financing Souroes over (under) Expenditures and Other Flnancin9 Uses $ 
 
-M,391.21 $ 1,068,124.73 
 
FUND BAlANCE JULY 1 1997 
 
2,972,233.42 
 
3,112,497.83 
 
Adjustments 
 
-M,309.62 
 
FUND BALANCE JUNE 30 1998 
 
$ 2,621,532.59 $ 4,180,622.56 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 
 
57,764.00 $ 424,868.36 
 
655,412.00 
 
1,369,347.50 
 
224,100.00 
 
232,100.23 
 
$ 937,276.00 $ 2,026,316.09 
 
$ 837,707.14 $ 787,455.52 
 
113,036.46 274,041.16 
14,000.00 25,063.80 
 
105,097.55 162,861.38 
11,163.93 28,608.63 
 
500.00 10,951.10 
27,900.00 842,274.11 
 
6,650.13 7,662.78 
24,248.06 874,535.77 
 
$ 2,145,473.77 $ $ -1.208.197.77 $ 
 
2,028,283.75 -1.967.66 
 
$ 
 
693.33 
 
-10.96 
 
662.37 
 
$ -1,208,197.77 $ 198,303.66 -8,409.93 
 
-1,285.29 166,258.47 
 
$ -1,018,304.04 $ 
 
164,971.18 
 
The notes to the general purpose financial statements are an integral part of this statement. -6- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXIllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Lamar County Board ofEducation (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. 
FUND ACCOUNTING 
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To 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 main\ained 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 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. 
 
-7- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SPECIAL REVENUE FUND - the fund used to accOlmt 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. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and material 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 ofavailable 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 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. 
 
- 8- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXIllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30,1998 
 
Note 1: SUMMARY OF SIGN1FICANT ACCOUNTING POLICIES 
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 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. 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 Lamar County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: 
 
-9- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
FUND BALANCE JULY 1, 1997 Adjustments 
Inventories - July 1, 1997 Food Donated Commodities Purchased Foods 
Fund Balance July I, 1997 (Budget Basis) Excess of Revenues and Other Financing Sources 
over (under) Expenditures and Other Financing Uses 
 
Special Revenue 
Fund $ 203,729.16 
-22,639.21 -14,833.48 $ 166,256.47 
-1.285.29 
 
FUND BALANCE JUNE 30, 1998 (Budget Basis) 
 
$ 164 97118 
 
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 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: 
 
(I) Obligations issued by the State of Georgia or by other states, 
 
(2) Obligations issued by the United States govemment, 
 
- 10 - 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXlDBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 1: SUMMARY OF SIGNlFlCANT ACCOUNTING POLICIES 
 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
 
(4) Obligations ofany 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 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 Lamar County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 31,1997 (levy date). Taxes were due on December 31,1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Lamar County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. 
 
Tax millage rates levied for the 1997 tax year (calendar year) for the Lamar County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
15.64 mills .-.1.U mills 
 
.l2.12 mills 
 
- 11 - 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXlllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SALES TAXES 
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales TaX revenue during the fiscal year amounted to $436,405.92 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $8,663,594.08 has been collected or on December 31, 2002 whichever occurs first. 
INVENTORIES 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for putchased 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. 
GENERAL OBLIGATION BONDS 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS 
The Board has the following types of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total co1unms on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these colunms do not present financial position 
- 12- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXlDBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
 
DEFICIT FUND BALANCES 
 
Funds reporting a deficit fund balance position at June 30, 1998, are as follows: 
 
Fund TvnelFund Name 
 
Deficit Balance 
 
Capital Projects Fund Special Purpose Local Option Sales Tax 
 
$ 3,937.50 
 
The Board will use subsequent Special Purpose Local Option Sales Tax collections to liquidate this deficit. 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction of the amount ofdeposit insurance. OCGA Section 45-8-11 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 anyone 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 ofGeorgia, 
 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
 
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State of Georgia, 
 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe 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, 
 
- 13  
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and 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, 1998, the bank balances were $3,054,406.03. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1998, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 400,000.00 
 
2 
 
2,600,622.69 
 
3 
 
53.783.34 
 
Total 
 
$ 3 054406 03 
 
CATEGORIZATION OF INVESTMENTS At June 30, 1998, the carrying value ofthe Board's total investments was $2,720,758.91 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 ofTreasury 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 ofTreasury 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: 
 
- 14- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXJDBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-71ike 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 earuings (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 I 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 ofits agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration ofapproximately one year. The weighted average maturity for Georgia Fund I on June 30, 1998 was 29 days. The average investment duration for Fund 6 on June 30,1998 was .96 years. 
 
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: INTERFUND ASSETS AND LIABILITIES 
 
Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status ofall interfund transactions ofthe Board at June 30, 1998: 
 
General Fund Capital Projects Fund 
Special Purpose Local Option Sales Tax Debt Service Fund 
Property Taxes for Bond Debt 
 
Due From Other Funds 
 
Due To Other Funds 
 
$ 490,870.45 
 
$ 475,500.00 
 
15.370.45 
 
$ 49087045 $ 49087045 
 
- 15 - 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXIllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 5: 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 unemployment 
 
compensation. 
 
. 
 
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to 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 o f Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
1997 1998 
 
$ 
 
0.00 $ 
 
811.80 $ 
 
811.80 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Superintendent School Food Services Director After School Program Director Each Principal Each Lunchroom Manager 
 
$ 50,000.00 $ 50,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 
 
Note 6: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES The Lamar 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 of the future minimum lease payments as of the date of their inception. 
 
- 16 - 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 6: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 1995 
 
3.85% - 5.30% $ 5 455 000 00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows: 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total 
 
Balance July 1, 1997 
 
$ 119,183.51 $ 5,555,000.00 $ 5,674,183.51 
 
Deductions Payments 
Balance June 30, 1998 
 
21.198.58 
 
100,000.00 
 
121.198.58 
 
$ 97 98493 $ 5 455 000 00 $ 555298493 
 
At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total Debt 
 
1999 2000 2001 2002 2003 2004 -2008 2009 - 2013 2014 and thereafter 
 
$ 30,601.00 $ 393,872,50 $ 424,473,50 
 
31,914.00 
 
409,012.50 
 
440,926,50 
 
33,282.00 
 
423,202.50 
 
456,484.50 
 
16,990.00 
 
436,402.50 
 
453,392.50 
 
453,572.50 
 
453,572.50 
 
2,443,930.00 2,443,930.00 
 
2,552,365.00 2,552,365.00 
 
1.582,140.00 1.582.140.00 
 
Total Principal and Interest 
 
$ 112,787.00 $ 8 694 497 50 $ 8 807 28450 
 
Deduct: Imputed Interest 
 
14,802.07 
 
Net Present Value ofFuture Minimum Lease Payments 
 
$ 97 98493 
 
- 17 - 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 7: ON-BEHALF PAYMENTS 
The Board has recognized revenues and expenditures in the amount of$191,737.99 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. 
Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$146,088.38 
Paid to the Teachers Retirement System ofGeorgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$II,239.61 
Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$34,410.00 
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 terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
Note 9: RETIREMENT PLANS 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS) 
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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
- 18- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Nme9: RETrnEMENTPLANS 
Fiscal Year 
1998 1997 1996 
 
Percentage Contributed 
100"10 
100"10 
100% 
 
Required Contribution 
$ 862,597.23 $ 824,149.68 $ 767,651.96 
 
- 19 - 
 
 LAMAR COUNTY BOARD OF EDUCATION 
COMBINING BAlANCE SHEET SPECIAL REVENUE FUND JUNE 30 1998 
 
EXHIBIT"E" 
 
~ 
cash and cash Equlvalants 
Accounts Recatvabla 
Inventorlas Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
181,478.38 $ 
 
1,271.03 
 
4,883.00 
 
FEDERAL PROGRAMS 
 
TOTALS JUNE 30, 1998 JUNE 30, 1997 
 
$ 
 
182,749.41 $ 
 
187,935.31 
 
163,374.51 
 
188,237.51 
 
66,710.32 
 
20,517.51 14,598.05 
 
20,517.51 14,598.05 
 
22,639.21 14,633.48 
 
Total Assets 
 
221 ,454.94 $ 
 
1,271.03 $ 
 
183,374.51 
 
386,100.48 $ 
 
314,118.32 
 
LIABILITIES AND FUND EQUITY 
 
~ 
cash Qverdraft Accounts Payable Salarlas Payabla Expired Grant Balances Payabla 
 
Total L1abnllias 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Inventories 
 
Food 
 
Donaled Commod!lies 
 
$ 
 
Purchased Food 
 
Unreserved 
 
Undeslgnaled 
 
Total Fund Equity 
 
$ 
 
4,363.72 $ 17,008.48 21,370.20 $ 
20,517.51 14,598.05 164,971.18 $ 200,064.74 $ 
 
$ 724.00 
547.03 
1,271.03 $ 
 
102,819.41 $ 15,323.86 45,43124 
183,374.51 $ 
 
102,619.41 $ 20,411.58 62.437.72 
547.03 
186,015.74 $ 
 
16,367.40 36,083.32 57,812.13 
126.31 
110,389.16 
 
0.00 $ 0.00 $ 
 
$ 
0.00 0.00 $ 
 
20,517.51 $ 14,596.05 
164,971.18 
200,064.74 $ 
 
22,839.21 14,633.48 
186,256.47 
203,729.16 
 
Total Liabilities and Fund Eqully 
 
$ 
 
221,454.94 $ 
 
1,271.03 $ 
 
183,374.51 $ 
 
386,100.48 $ 
 
314,118.32 
 
See notes to the general purpose financial statements. 
 
- 20- 
 
 lAMAR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES 
SPECIAL REVENUE FUND YEAR ENpED JUNE 30 1998 
 
EXHIBlT"P 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOT YEAR JUNE 30, 1998 
 
REVENUES 
 
State Funds Federal Funds OIlIer Funds 
 
57,784,00 $ 580,956.80 232,100.23 
 
367,104,36 $ 
 
$ 788,390.70 
 
424,888.36 $ 1,369,347.50 
232100.23 
 
435,079.00 1,157,942.36 
229,547.06 
 
Total Revenues 
 
870,821.03 $ 357,104.36 $ 788,390.70 $ 2,026,316.09 $ 1,822 568.42 
 
EXPENDITURES 
 
Cunent Instruction Support Servioes Pupil8ervices Improvement of Instructional 5ervices Educational Media Servioes General Administration SChool Administration Maintenance and Operation of Plant 
Student Transportation 8ervices Other Support Services Food Servioes Operation 
 
$ 872,106.32 
 
287,472.45 $ 
47,818.31 8,369.02 
7,531.80 
6,850.13 7,122.46 
373.78 2,429.45 
 
499,983.07 $ 
57,279.24 174,502.36 11,163.93 21,076.83 
540.32 23,874.30 
 
787,455.52 $ 
105,097.55 182,881.36 
11,163.93 28,808.63 
6,650.13 7,862.78 24,248.06 874,535.n 
 
798,678.84 
87,070.18 54,318.11 
20,990.03 788.20 
18,432.68 16,217.32 832,293.46 
 
Talal Expenditures 
 
$ 872,106.32 $ 367,757.38 $ 788,420.05 $ 2,028,283.75 $ 1,828,788.60 
 
Excess of Revenues over (under) Expenditures 
 
$ 
 
-1,285.29 $ 
 
-653.02 $ 
 
-29.35 $ 
 
-1,967.88 $ 
 
-6,198.18 
 
OTHER FINANCING SOURCES (USESl 
 
Operating Transfers In Operating Transfera Out 
 
853.02 $ 
 
40.31 $ -10.96 
 
893.33 $ -10.96 
 
4,728.65 -713.98 
 
Total OIlIer Financing Sources (Uses) 
 
653.02 $ 
 
29.35 $ 
 
682.37 $ 
 
4,014.67 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 
 
-1,285.29 $ 
 
0.00 $ 
 
0.00 $ 
 
-1,285.29 $ 
 
-2,183.51 
 
FUND BALANCE JULY 1 
 
203,729.16 
 
0.00 
 
0.00 
 
203,729.16 
 
202,578.24 
 
Food Inventory - Net Change In Period Donated Commodities Purchased Food 
 
-2,121.70 -237.43 
 
-2,121.70 -237.43 
 
1,563.36 1,nO.07 
 
FUNp BALANCE JUNE 30 
 
$ 200,084.74 $ 
 
0.00 $ 
 
0.00 $ 200,084.74 $ 203,729.16 
 
See notes to the general purpose financial statements. 
 
-21 - 
 
 LAMAR COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET CAPITAL PROJECTS FUNp JUNE 30 1998 
 
EXHIBIT"G" 
 
~ Cash and Cash Equivalents Investments Accounts Receivsble 
 
REGULAR 
 
BOND PROCEEDS 
 
SPECIAL PURPOSE LOCAL OPTION 
SALES TAX 
 
TOTALS JUNE30 1998 JUNE 30, 1997 
 
$ 
 
1,284,67 $ 210,012,50 $ 
 
413,785.24 $ 
 
625,062.41 $ 3,168,720.24 
 
96,603.75 
 
96,603.75 
 
1,195,914.15 
 
498.25 
 
68,787.24 
 
67,265.49 
 
243,539.07 
 
T01aI Assets 
 
$ 
 
1.284.67 $ 307,314.50 $ 
 
480.572.48 $ 
 
789,171.65 $ 4,628 173.46 
 
LIABiliTIES ANP FUND EQUITY 
 
~ 
Accounts Payable Con1raets Payable Relainages Payable Due 10 Other Funds 
 
Total Usbirrties 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Purposes of Bond Issue 
 
Unreserved 
 
Deficit 
 
Undesi9nated 
 
$ 
 
To1al.Fund Equity 
 
$ 
 
658.50 $ 306,456.00 
307,314.50 
 
9,009.96 $ 
475,500.00 484,509.98 $ 
 
9,868.48 
306,456.00 475,500.00 
791,624.46 $ 
 
14,269.00 467,393.40 194,936.20 
676,618.60 
 
1,284.67 $ 1,284.67 $ 
 
$ 0.00 
0.00 $ 
 
-3,937.50 $ 0.00 
-3,937.50 $ 
 
$ 3,950,270.19 
 
-3,937,50 1,284.67 
 
1.284.67 
 
-2,652.63 $ 3,951,554.66 
 
T01aI Liabilities and Fund Equity 
 
1,284.67 $ 307.314.50 $ 
 
460:572.46 $ 
 
769,171.65 $ 4,628 173.46 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 lAMAR COUNTY BOARD OF EOUCATION 
COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES 
CAPITAL PROJECTS FUND 
YEAR ENDED JUNE 3C 1998 
 
EXHIBIT""" 
 
~ Taxes Other Funds 
Total Reven_ 
EXPENPITURes 
Capital Outlay Land and Lend Improvements Building and BuDding Improvements Equipment 
Total Expenditu.... Excess of _ _ ....r (undor) Expenditu.... 
OTHER FINANCING SOURCES 
Operating Trans""" In 
Excess of Revenues and Other Financing Sources over (umer) Expenditu.... 
FUNp BALANCE JULY 1 
 
REGULAR 
 
BOND PROCEEDS 
 
SPECIAL' PURPOSE LOCAl OPTION SAlES TAX 
 
TOTAlS 
 
YEAR ENDED 
 
JUNE 30 1998 
 
JUNE30 1997 
 
0.00 $ 
0.00 $ 
 
100 841.06 100 841.06 
 
192,018.58 $ 1158.16 
193176.74 $ 
 
192.018.58 101999.22 $ 
294 017.60 $ 
 
800332.59 800 332.59 
 
0.00 
 
4.253,147.27 
 
0.00 $ 4.253147.27 0.00 $ -4,152,306.21 
 
2.422.41 108,172.81 
86 519.02 
197,114.24 $ 
~,937.50 $ 
 
2,422.41 4.361.320.08 
86 519.02 
4450.281.51 
-4,156,243.71 
 
2,224.915.19 
2.224915.19 -1,424.582.60 
 
0.00 1284.67 
 
202036.02 
-3,950.270.19 $ 3950 270.19 
 
202036.02 
 
~,937.50 $ 0.00 
 
-3,954,207.69 3951554.86 
 
-1,424.582.60 5,376137.46 
 
FUND BALANCE JUNE 30 
 
1284.67 $ 
 
0.00 $ 
 
3937.50 $ 
 
-2662.83 $ 
 
3951554:86 
 
See notes to the general purpose financial statements. 
 
-23- 
 
 LAMAR COUNTY BOARD OF EPUCATION COMBINING BALANCE SHEET pEBT SERVICE FUNp JUNE3Q 1998 
 
EXHIBIT "I" 
 
~ Cash and Cash Equivalents Accounts Receivable 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS JUNE 30, 1998 JUNE 30, 1997 
 
$ 
 
160,045,04 $ 
 
160,045,04 $ 
 
81,940,80 
 
$ 
 
20,229,67 
 
85,001,97 
 
105,231,64 
 
41,177.41 
 
Total Assets 
 
$ 
 
20,229.67 $ 
 
245,047.01 $ 
 
265,276.68 $ 123,118.21 
 
LIABILITIES ANp FUNp EQUITY 
 
LIABILITIES 
 
Cash Overdraft 
 
$ 
 
Due to Other Funds 
 
Total Liabilities 
 
$ 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Debt Service 
 
$ 
 
Unreserved 
 
Undesignated 
 
Total Fund EqUity 
 
$ 
 
174.70 15,370,45 
15,545.15 
 
$ 
 
174,70 
 
15,370.45 
 
$ 
 
15,545,15 
 
4,684,52 $ 0.00 
4,664.52 $ 
 
245,047.01 $ 0.00 
245,047.01 $ 
 
249,731.53 $ 0.00 
249,731,53 $ 
 
123,118.21 0.00 
123,118.21 
 
Total Liabilities and Fund Equity 
 
$ 
 
20,229.67 $ 
 
245,047.01 $ 
 
265,276.68 $ 123,118.21 
 
See notes to the general purpose financial statements. 
 
-24- 
 
 LAMAR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDlnJRES AND CHANGES IN FUND BALANCES 
DEBT SER\IICE FUND YEAR ENDED JUNE 30 1998 
 
EXHIBIT "J" 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 1998 
 
JUNE 30, 1997 
 
REVENUES 
 
Taxes Other Funds 
 
S 
 
258,641.54 S 
 
244,387.34 $ 
 
503,028.88 $ 
 
342,313.25 
 
1.476.55 
 
659.67 
 
2,136.22 
 
1,733.23 
 
Total Revenues EXPENDITURES 
 
$ 
 
260,118.09 $ 
 
245,047.01 $ 
 
505,165.10 S 
 
344,046.48 
 
Debt Service Principal 
Interest Paying Agent Fees 
 
$ 
 
100,000.00 $ 
 
2n,822.5O 
 
729.28 
 
0.00 S 
 
100,000.00 $ 2n.822.50 
729.28 
 
85,000.00 327,944.17 
497.20 
 
Total Expenditures 
 
$ 
 
378,551.78 $ 
 
0,00 $ 
 
378,551.78 $ 
 
413,441.37 
 
Excess of Revenues over (under) Expenditures $ FUND BALANCE JULY 1 
 
-118,433,69 $ 123,118.21 
 
245,047.01 $ 0.00 
 
126,613.32 S 123,118.21 
 
-69,394.89 192,513.10 
 
FUND BALANCE JUNE 30 
 
$ 
 
4,684.52 S 
 
245,047.01 $ 
 
249,731,53 $ 
 
123,118.21 
 
See notes to the general purpose financial statements. 
 
-25- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
SCHEDULE "1" 
 
SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION 
 
YEAR 2000 DISCLOSURES 
 
YEAR ENDED JUNE 30. 1998 
 
At June 30, 1998, the Lamar County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. 
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. 
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. 
Remediation Stage - When changes are made to systems and equipment. 
Validationffesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. 
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage. 
The Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As of June 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department ofEducation has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software. 
 
See notes to the general purpose financial statements. - 26- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
 
SCHEDULE "1" 
 
SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION 
 
YEAR 2000 DISCLOSURES 
 
YEAR ENDED JUNE 30. 1998 
 
At June 30, 1998, the Lamar County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. 
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. 
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. 
Remediation Stage - When changes are made to systems and equipment. 
Validationffesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. 
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage. 
The Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As of June 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department ofEducation has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software. 
 
See notes to the general purpose financial statements. - 26- 
 
 LAMAR COUNTY BOARP OF EDUCATION SCHEPULE OF EXPENDITURES OF FEPERAL AWARDS 
YEAR ENDED JUNE 30 1998 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFRA NUMBER 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agricutture, U. S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) 
 
. 
. 10.553 10.555 10.550 
 
N/A $ 127,932.61 
 
N/A 
 
403,815.40 $ 
 
N/A 
 
49,208.79 
 
(2) 
822,897.53 (3) 49,208.79 
 
Total U. S. Department of Agricutture 
 
$ 580,956.80 $ 
 
872,106.32 
 
Education, U. S. Department of Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Tille I Grants to Local Educational Agencies 1998 Grant Tille II Eisenhower Professional Development 1998 Grant Tille VI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant 
 
84.010 84.281 84.298 
 
N/A $ 386,390.95 $ 
 
NIA 
 
13,654.46 
 
NIA 
 
14,027.00 
 
386,380.12 13,654.46 14,027.00 
 
84.276 
 
NIA 
 
146,954.59 
 
146,954.59 
 
84.027 
 
NIA 
 
84.173 
 
NIA 
 
110,606.12 11,054.00 
 
110,805.99 11,054.00 
 
114.048 
 
NIA 
 
22,302.00 
 
22,342.31 (3) 
 
Total U. S. Department of Education 
 
$ 704,989.12 $ 
 
705,018.47 
 
Labor, U. S. Department of Pass-Through From West Centrel Georgia Private Industry Council Job Training Partnership Act 97-SVP-04 97-IIC-02 98-SYP-05 
 
17.250 17.250 17.250 
 
N/A $ 13,909.68 $ 
 
N/A 
 
49,535.38 
 
N/A 
 
19,956.52 
 
13,909.68 49,535.38 19,956.52 
 
Total U. S. Department of Labor 
 
$ 83,401.58 $ 
 
83,401.58 
 
Total Federal Financial Assistance N/A = Not Available 
 
- 27- 
 
$ 1,369,347.50 $ 1,680,526.37 
 
 LAMAR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEPERALAWARDS 
YEAR ENPEP JUNE 30 1998 
 
SCHEDULE "2" 
 
Notes tp the Schedule of Expenditures of Federal AwardS 
(1) The amounts shown for !he Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1998 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 en asterisk (') in Iront of !he CFDA number. 
The Board did not provide Federal Assistance tp eny Subrecipienl 
The accompanying schedule of expendllures of Federal Awards includes the Federal grant activity of the Lamar County Board of Education and is presented on the modified aeaual basis of eccounting which is the same besis of accounting used in the presentation of !he general purpose financial atatements. 
 
See notes tp the general purpose financial statements. 
 
-28- 
 
 LAMAR COUNTY BOARD OF EPUCATION SCHEPULE OF STATE REYENUE YEAR ENpED JUNE 30 1998 
 
SCHEDULE "3" 
 
 LAMAR COUNTY BOARe OF EDUCATION SCHEDULE OF APPRQYED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDEp JUNE 30 1998 
 
SCHEDULE "4" 
 
~ 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED 
COST (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED IN PRIOR 
YEARS 
 
Retiring a portion of the Series 1995 General 
 
Obligation Bonds from August, 1998 through 
 
and Including February, 2003, and, to the 
 
extenl that funds are available, funding an 
 
escrow account to retire addilional portions 
 
of the Bonds. 
 
$ 
 
5,100,000.00 $ 
 
5,100,000.00 $ 
 
0.00 $ 
 
0.00 
 
Remodeling, renovating, Improving and 
 
equipping existing classrooms, instructional 
 
and support space and grounds st existing 
 
school dlstricllacililles, including re-roofing 
 
and replacing the HVAC systam at the high 
 
school, scquiring any necessary personal 
 
property, Including technology equipment and 
 
fumishingslor the middle school, and paying 
 
any expenses Incident thereto. 
 
4,000,000.00 
 
4,000,000.00 
 
197,114.24 
 
0.00 
 
9,100,000.00 $ 
 
9.100.000.00 
 
197,114.24 
 
0.00 
 
(1) The Board's originel cost estimate as specified in the resolution calling lor the Imposilion of the Local Option SslesTax. 
(2) The Board's current estimate of total cost lor each project. Includes all cost from project. inception to completion. 
(3) The voters of Lamar County spproved the imposilion of a 1% sales tax to lund the abova projects. Amounts expended lor these projects may include sales tax proceeds, state, local property taxas and/or other funds over the lila of the project. 
 
See notes to the general purpose financial statements. 
 
-30- 
 
 LAMAR COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXpENDITURES 
LOTTERY PROGRAMS 
YEAR ENDED JUNE 30 1998 
 
SCHEDULE "5" 
 
EXPENPITURES 
 
INSTRUCTIONAL TECHNOLOGY 
 
ASSISTIVE 
 
CLASSROOM 
 
TECHNOLOGY TECHNOLOGY 
 
PRE-KINDERGARTEN PROGRAM 
 
Current 
 
Instruction 
 
$ 
 
Support Services 
 
Pupil Services 
 
Improvement of Instructional Sarvlces 
 
Genaral Administration 
 
Maintenance and Operation of Plant 
 
Student Transportation Services 
 
Other Support services 
 
Food services Operation 
 
5,487.45 $ 
 
69,042.00 $ 
 
212,943.00 $ 
47,818.31 8,359.02 7,531.80 6,850.13 7,122.46 373.78 2,429.45 
 
TOTAL 
287,472.45 
47,818.31 8,359.02 7,531.80 6,650.13 7,122.46 373.76 2,429.45 
 
Totel Expenditures 
 
$ 
 
5,487.45 $ 
 
69,042.00 $ 
 
293,227.93 $ 367,757.38 
 
RECAP: Saleries and Benefits Pre-Kindergarten Program Other Expenditures Instructional Technology 
Assistive Technology Classroom Technology Pre-Kindergarten Program 
 
$ 275,502.94 
5,487.45 69,042.00 17,724.99 
 
$ 367,757.38 
 
See notes to the general purpose financial stetements. 
 
- 31- 
 
 LAMAR COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND QUALITY BASIC EDUCATION pROGRAMS YEAR ENDED JUNE 30 199B 
 
SCHEDULE ''6'' 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
salaries Operations 
Less: Expenditures for Media Center Programs, in Excess of Tolal Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
1OD% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
6,376,196.00 $ 
 
190,317.00 
 
$ 
 
6,207,611.75 
 
273,1 BB.BB $ 
 
$ 
 
6,4BO,BOO.63 
 
234,696.17 
 
-12,BB7.61 
 
$ 
 
6,467,913.02 
 
$ 
 
O.OD $ 
 
0.00 
 
See notes to the general purpose financial statements. - 33 - 
 
 lAMAR COUNTY BOARD OF EDUCATION 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
YEAR ENDED JUNE 3D 1998 
 
GENERAL AND CAREER EDUCATION PROGRAMS 
K1ndergartsn r> Grades 1  3 r> 
Sub-TotaIK-3 
Grades 4  5 r> Grades 6  6 r> Grades 9  12 r> High SChool !..abonllnries r> 
Vocational Educa1lon Laboratorias r> 
Total GaneIBI and Caraer Education Pmgrams 
SPEC~EDUCATIONPROGRAMS 
Regular Programs eategoryllr> eategOlYIllr> eategOlY IV r> CBlegOlYVr> 
SuI>-Tolal RegUlar 
CalagOlY VI (GIflad) r> 
Total Special Education Programs 
REMED~ EDUCATION PROGRAM Cl 
Total Fourteen Walghtad Pmgrams 
MEDIA CENTER PROGRAMS 
5aIaJ1as Operations 
Total Madia cenlar Pmgrams 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
ORIGINAL ..JL. 
 
REQUIRED ORIGINAL 
 
MID-TERM 
 
603,410.00 1,821,811.00 2,225.221.00 90 
578,271.00 90 1.066.807.00 90 
555,737.00 90 324.179.00 90 408,188.00 90 $ 5.158.401.00 
 
543,069.00 1.459,829.90 2.002,698.90 
520,443.90 960.128.30 500,163.30 291.761.10 367.367.40 4.642,560.90 
 
0.00 0.00 
65.329.39 75,000.00 140.329.39 
 
$ 
 
587,780.00 
 
529,002.00 $ 
 
0.00 
 
$ 
 
587,780.00 90 
 
529.002.00 $ 
 
n,821.00 90 
 
69.858.90 
 
685,401.00 
 
$ 
 
598,880.90 
 
192.846.00 90 $ 
 
173.381.40 $ 
 
8,018,448.00 
 
$ 5,414.803.20 $ 
 
0.00 4,920.00 4,920.00 -169.39 145.080.00 
 
173.m.00 90 $ 
 
158.395.70 
 
0.00 
 
40,895.00 90 
 
36.805.50 
 
214.668.00 
 
193.201.20 
 
0.00 
 
Tolal Fourtaen Walghtad and Madia canter Programs 
 
8.231,118.00 
 
5.BD8,DD4.4O $ 
 
145,080.00 
 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
 
19.372.00 47,358.00 
 
19.372.00 
 
0.00 
 
47.358.00 
 
0.00 
 
Total SIal! DavaIopmenl Programs r> Iden1lllas Fourtaen Weightad Pmgrams. See notes to the general purpose financial statements. 
 
86.730.00 100 $ _ _::86~.7~30l:i'00~ 
 
0.00 
 
- 34 - 
 
 SCHEDULE '7" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
543,069.00 $ 
 
570,209.36 
 
20,905.80 $ 
 
591,115.18 
 
1,459,829.90 
 
1,361,352.52 
 
65,953.32 
 
1,427,305.64 
 
2,002,698.90 
 
1,931,561.88 
 
86,659.12 $ 2,018,421.00 
 
0.00 
 
520,443.90 
 
604,887.83 
 
13.371.82 
 
818,259.65 
 
0.00 
 
960,126.30 
 
1,000,024.06 
 
21,896.46 
 
1,021,920.52 
 
0.00 
 
565,492.69 
 
632.761.42 
 
18,360.58 
 
649,142.00 
 
0.00 
 
366.761.10 
 
451,649.91 
 
21,489.52 
 
473,339.43 
 
0.00 
 
387.367.40 
 
363,949.61 
 
59,156.64 
 
423,106.45 
 
0.00 
 
$ 4,782.890.29 
 
4,985,034.91 
 
219,154.14 $ 5,204,169.05 
 
$ 
 
529,002.00 
 
270,461.12 485,822.44 
16,751.24 5,721.01 
 
1,214.46 $ 8,401.63 
367.04 222.10 
 
271,675.58 494,224.07 
17,136.28 5,943.11 
 
$ 
 
529.002.00 
 
776,755.81 
 
10,225.23 
 
766,961.04 
 
0.00 
 
74,776.90 
 
83,990.24 
 
2,672.66 
 
66.862.92 
 
0.00 
 
$ 
 
603,780.90 
 
862,746.05 $ 
 
13,097.91 
 
875,943.96 
 
$ 
 
173,212.01 
 
170,767.89 
 
2,444.12 
 
173,212.01 
 
0.00 
 
$ 5,559,883.20 
 
6,018,548.85 
 
234,696.17 
 
6.253,245.02 
 
$ 
 
156,395.70 
 
189.062.90 
 
189,052.90 
 
0.00 
 
36,805.50 
 
$ 
 
36,492.71 
 
36,492.71 
 
0.00 
 
193,201.20 $ 
 
189,062.90 
 
36,492.71 
 
227,555.61 
 
5.753,084.40 $ 6,207,611.75 $ 273,188.88 
 
6,480,800.63 
 
0.00 
 
19,372.00 47,356.00 
66,730.00 
 
54,934.43 12,238.67 
 
54,934.43 12,238.67 
 
67,173.10 $ 
 
67,173.10 S 
 
~O~.OO::::. 
 
- 35 - 
 
 SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND' ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 21, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe Lamar County Board ofEducation 
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 ofLamar County Board of Education as of and for the year ended 
June 30, 1998, and have issued our report thereon dated May 21, 1999. This report was qualified for a scope 
limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing slandards and the slandards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. 
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1998, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 
Compliance 
As part of obtaining reasonable assurance about whether Lamar County Board of Education's financial statements are free ofmaterial 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 inslances of noncompliance that are required to be reported under Government Auditing Standards. 
 
98YB-40 
 
 Internal Control Over Financial Reporting 
In planning and perfonning our audit, we considered Lamar 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 a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgement, could adversely affect Lamar County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6851-98-01. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. 
This report is intended for the information ofmanagement, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
~0.4d-~ Russell W. Hinton State Auditor 
RWH:jb 98YB-40 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 556-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
May 21, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Lamar County Board of Education 
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCEIN ACCORDANCE WITH OMB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Lamar County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Lamar 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 Lamar County Board of Education's management. Our responsibility is to express an opinion on Lamar County Board ofEducation's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments. andNon-Profit Organizations. Those standards and OMB 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 Lamar 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 Lamar County Board of Education's compliance with those requirements. 
 
98SA-IO 
 
 In our opinion, the Lamar County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30,1998. 
Internal Control Over Compliance 
The management of Lamar 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 Lamar 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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33. 
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 ofone 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 for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record. 
Respectfully submitted, 
~~#...~ W.4J~ Russell W. Hinton State Auditor 
RWH:jb 98SA-I0 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 LAMAR COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 1998 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
6851-93-01 FS-685 1-97-01 
 
Further Action Not Warranted Umesolved - See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6851-97-01 
 
Because of current staffing limitations and budgetary considerations prohibiting the hiring of additional staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 LAMAR COUNTY BOARD OF EDUCATION 'SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1998 
SUMMARY OF AUDITOR'S RESULTS 
1. Type ofReoort Issued on the Financial Statements The auditor's opinion on the Lamar County Board ofEducation's financial statements was qualified for a scope limitation and 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 Lamar County Board ofEducation disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit ofthe Lamar County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. 
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Lamar County Board ofEducation did not disclose any reportable conditions in internal control over major programs. 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Lamar 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) ofOMB Circular A-133 The Lamar County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3. 
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 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Lamar County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation. 
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 LAMAR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1998 
n FINANCiAL STATEMENT FINDINGS AND OUESTIONED COSTS 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6851-98-0I The Lamar County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported. 
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