Lanier County Board of Education, Lakeland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
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LANIER COUNTY BOARD OF EDUCATION
LAKELAND, GEORGIA

REPORT ON AUDIT

OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2000



Russell W. Hinton State Auditor

LANIER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

ANALYSIS OF M ..,. EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

31

5

BYPROGRAM

32

LANIER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION ill AUDI'I'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
s r.ll,Lr\c. Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL


w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

171b
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingtcin Street. S.W.. Suite 214 Atlanta. Georgia 30334-84()0
January 25, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lanier County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Lanier 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 Lanier County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo1111 the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to confo11n to generally accepted accounting principles.
2000ARL-13

* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo11n to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Lanier County Board ofEducation as of June 30, 2000, and the results of its operations for the year then ended, in confo11nity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated January 25, 2001, on our consideration of the Lanier County Board of Education's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit perfo1111ed 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 performed for the purpose of forrning an opinion on the general purpose financial statements of the Lanier 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 inforrnation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except
for the effects ofthe matters referred to in the third paragraph, such inforrnation is fairly stated, in all
material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made
available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp
2000ARL-13

ssell W. Hinton State Auditor



LANIER COUNTY BOARD OF EDUCATION

LANIER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30. 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items Inventories
Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements
Total Assets

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

48,456.68 $

87,873.26

950,000.00

105,342.67

214,256.39

3,708.49 755.83

$ 1,103,799.35 $ =====30=6.!=,5=93=.9=7=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Contracts Payable Retainages Payable Expired Grant Balances Payable Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay For SPLOST Projects For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Deficit Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

64,812.41 $

1,000,000.00

69,383.83 115,801.89

5,156.21

$

1I064 812.41 $ _ __:.;:19'-"'0=3_,.:.41.:.:.9:..:3;.... 1

$

70,643.74

$

1,151.68

3,708.49 755.83

-31,656.80 0.00

110,636.04

$

38,986.94 $ _ ___:..11.:.;:6;.i.::,2=52::.:-=-04"--

$ 1,103,799.35 $ ===3o..6..,5=9=3...,97=

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

$

148,358.84

256,270.75

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

284,688.78 $

400,473.82

950,000.00

520,150.00

575,869.81

332,966.76

4,750.74

- - - - - - $ _ _ _1_9_9~,7_26_.6_1_

3,708.49 755.83

4,282.43 1,065.86

$

199,726.61 $ 2,014,749.52 $ 1,548,977.38

$

290,821.59

222,375.71

80,879.99

$

$

$
199,726.61
199,726.61 $

134,196.24 $
115,801.89 1,290,821.59
222,375.71 80,879.99 5,156.21
199,726.61
2,048,958.24 $

152,886.40 124,869.16 520,150.00
2,028.32 285,287.77

$

-189,447.70

0.00

$ _ _-1"'-=8=9'-'4..;..47;..;..7'"--'0'-

$

37,937.00

67,142.62

$

70,643.74

42,115.74

1,151.68

11,678.30

3,708.49 755.83

4,282.43 1,065.86

-221, 104.50 110,636.04

299,533.78

$

-34,208.72 $ _ _4..;.;6;..;::3.,,7..;::;5=5."--73;a....

$

404,629.59 $

199,726.61 $ 2,014,749.52 $ 1,548,977.38

-3-

LANIER 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 Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
Residual Equity Transfer

GENERAL FUND

SPECIAL REVENUE
FUND

$ 5,599,660.50 $ 481,557.65

1,823.63 1,048,200.17

1,630,511.63

171,352.18

178,511.49

$ 7,403,347.94 $ 1,708,269.31

$ 4,695,184.16 $ 664,711.19

478,103.83 338,612.40 191,168.22 173,311.48 599,074.36 182,513.08 500,620.12 224,798.00
5,453.26 900.00
26,268.57 1,945.43 5,500.00

173,752.67 106,267.82
11,587.28 71,016.44
11,945.99 11,053.89
73,108.48 650,077.73

85,561.16 16,972.11

$ 7,525,986.18 $ 1,773,521.49

$ -122,638.24 $ -65,252.18

$
$ -10,532.57
$ -10,532.57 $

1,946.03 1,946.03

$ -133,170.81 $ -63,306.15

152,651.10

180,442.16

19,506.65

-573.94 -310.03

FUND BALANCE JUNE 30

$ 38,986.94 $ 116,252.04

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS
(Memorandum Only)
YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$ 366,433.00 $ 6,447,651.15 $ 5,945,360.74

1,050,023.80

950,966.21

389,526.70

2,020,038.33

1,435, 118.82

2,722.90

352,586.57

304,340.34

$ 758,682.60 $ 9,870,299.85 $ 8,635,786.11

$ 5,359,895.35 $ 4,912,233.98

$ 1,067,872.66

651,856.50 444,880.22 202,755.50 244,327.92 599,074.36 182,513.08 512,566.11 235,851.89
5,453.26 74,008.48 650,077.73 26,268.57
1,945.43 1,073,372.66

515,322.21 405,628.51 198,168.37 262,178.65 485,513.65 150,509.66 595,029.33 229,120.83
5,589.28 76,538.07 647,643.06 24,891.94
4,070.13 5,500.00

85,561.16 16,972.11

81,594.89 23,716.99

$ 1,067,872.66 $ 10,367,380.33 $ 8,623,249.55

$ -309, 190.06 $ -497,080.48 $ _---'1.::.2,L;:;.5.;:;.;36;,..;..5;;.;6~

$

8,586.54 $

10,532.57 $ 100,140.79

-10,532.57

-100, 140.79

$

8,586.54 $

o.oo $ _ _ _.....;o;,..;..o;;.;o~

$ -300,603.52 $
130,662.47

-497,080.48 $
463,755.73

12,536.56 453,966.59

-19,506.65

-573.94 -310.03
0.00

-2,755.16 7.74

$ -189,447.70 $ -34,208.72 $ 463,755.73

-5-

LANIER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2000

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 5,511,388.13 $ 5,599,660.50

1,823.63

1,448,953.03 1,630,511.63

54,589.00

171,352.18

Total Revenues

$ 7,014,930.16 $ 7,403,347.94

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
Capital Outlay Debt Service

$ 4,443,095.98 $ 4,695,184.16

381,076.28 301,018.30 189,483.30 180,355.67 496,109.34 194,300.68 385,548.25 226,869.96
6,000.00 900.00

478,103.83 338,612.40 191,168.22 173,311.48 599,074.36 182,513.08 500,620.12 224,798.00
5,453.26 900.00

25,885.77

26,268.57 1,945.43 5,500.00
102,533.27

Total Expenditures

$ 6,830,643.53 $ 7,525,986.18

Excess of Revenues over (under) Expenditures

$ 184,286.63 $ -122,638.24

OTHER FINANCING SOURCES (USES)

Other Sources

Other Uses



Total Other Financing Sources (Uses)

$ -10,532.57 $ -10,532.57

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 184,286.63 $ -133,170.81

FUND BALANCE JULY 1. 1999
Adjustments Residual Equity Transfer

178,502.80 -32,563.31

152,651.10 19,506.65

FUND BALANCE JUNE 30. 2000

$ 330,226.12 $ 38,986.94

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 510,798.00 $ 481,557.65
1,035,134.58 1,048,200.17

202,569.11

178,511.49

$ 1,748,501.69 $ 1,708,269.31

$ 810,842.41 $ 664,711.19

152,605.20 115,720.00
11,584.00 76,023.00

173,752.67 106,267.82
11,587.28 71,016.44

15,993.00
85,667.00 594,643.47

11,945.99 11,053.89
73,108.48 650,077.73

$ 1,863,078.08 $ 1,773,521.49
$ -114,576.39 $ -65,252.18

$

200.00 $

1,946.03

$

200.00 $ _ __,:1.L:,94:...;..=..:6'-"'03=-

$ -114,376.39 $ -63,306.15

163,949.78

180,442.16

33,919.59

-883.97

$ 83,492.98 $ 116,252.04

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

LANIER 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 Lanier 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 confu1n1 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.

-7-

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for 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 of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-T~rm 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 deterrnined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in early August 1999 and ending in late May 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in August 1999 and ending in July 2000. State grants to fund the State's share of these contracts
-8-

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000


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

-9-

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, 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.
PROPERTY TAXES
The Lanier County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 29, 1999 (levy date). Taxes were due on December 31, 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 Lanier 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 Lanier County Board of
Education was as follows (a mill equals $1 per thousand dollars of assessed value):

- 10 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations

18.47 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 $389,526.70 and was recorded in the Capital Projects Fund. The State will te1n1inate collection of this tax once an additional $1,355,175.68 has been collected or on March 31, 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 items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

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

Residual equity transfers are recorded for nonrecurring or nonroutine perrnanent transfers of equity.
Operating transfers are recorded for all interfund transactions other than residual equity transfers and 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 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.

- 11 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

DEFICIT FUND BALANCES

Funds reporting a deficit fund balance position at June 30, 2000, are as follows:

Fund Type/Fund Name

Deficit Balances

Governmental General Fund Capital Projects Fund Georgia State Financing and Investment Commission

$ 31,656.80 $ 189,447.70

The Lanier County Board ofEducation plans to liquidate the deficit in General Fund with local Ad Valorem taxes that are collected monthly.

The Lanier County Board of Education plans to liquidate the deficit in the Capital Projects Fund with SPLOST funds that are collected monthly.

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on

deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not

been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face

value of such surety bond and the market value of securities pledged shall be equal to not less than

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

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,

- 12 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS

(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 Banlc, the Federal Home Loan Banlc, the Federal Interrnediate Credit Banlc, the Central Banlc for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2000, the banlc balances were $1,705,478.36. The amounts ofthe total banlc balances are classified into three categories of credit risk:

Category I - 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 banlc 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
1
2
3
Total

Banlc Balance
$ 200,000.00 947,195.00 558,283.36
$ 1,705,478.36

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

- 13 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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 unemployment compensation.

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

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

The Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not experienced any claims related to this risk in the past two years.

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

Position Covered
Superintendent Each Principal Each Bookkeeper Each Nutrition Manager Each Nutrition Cashier

Amount
$ 25,000.00 $ 5,000.00 $ 4,000.00 $ 3,000.00 $ 2,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Lanier County Board ofEducation has entered into various lease agreernents as lessee for digital phone systems, copy machines and an energy management system. 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.

GENERAL OBLIGATION DEBT OUTSTANDING The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as
follows:

- 14 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

Balance July 1, 1999

$ 285,287.77

Deductions Payments

85,561.16

Balance June 30, 2000

$ 199,726.61

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 2004

$ 82,407.10 57,008.88 57,008.88 23,753.70

Total Principal and Interest

$ 220,178.56

Deduct: Imputed Interest

20,451.95

Net Present Value of Future Minimum Lease Payments

$ 199,726.61

Note 6: LOANS PAYABLE

Article IX, Section V, Paragraph V ofthe Constitution ofthe State of Georgia limits the aggregate amount of temporary loans the Board may enter into 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. At June 30, 2000, short-term debt (temporary loans) outstanding are as follows:

Amount

Interest Rates

$ 1,000,000.00 $ 290,821.59

4.75o/o
6.25%

- 15 -

LANIER 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 $116,472.40 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 ofNon-Certified Personnel In the amount of $90,585.16

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $8,895.24

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 $16,992.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000:

Project

Unearned Executed Contracts

LW0099S-686-006 OOG99S-686-048

$ 716,881.19 625,498.89

$ 1.342,380.08

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

Note 9: 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 gr3.l)tor 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.

- 16 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 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 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% 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%

$ 596,487.16 $ 580,836.06 $ 538,794.78

- 17 -

LANIER 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

$

141,867.84 $

54,949.09

5,051.87

3,708.49 755.83

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

$

146,332.16 $ ===6=0=10.0...0...=96=

$

3,303.48 $

20,535.17

33,078.06

38,003.82

1 461.97

$

36,381.54 $ ___6_o.._,o_oo_._96_

$

3,708.49

755.83

105,486.30 $ ______0_._o...o. '--

$

109,950:62 $ _ _ _ _0.;::.;.;:.00;._

$

146,332.16 $

60,000.96

See notes to the general purpose financial statements.
- 18 -

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

196,816.93 $

223,438.99

$

200,754.08 $

8,450.44

214,256.39

177,622.23

3,708.49 755.83

4,282.43 1 065.86

$ 200,754.08 $

8 450.44 $

415 537.64 $ ==-=4=06=4=0=9.5=1=

$

106,432.67 $

45,029.90

44,720.01

3,419.82

$

199,602.40 $

2,511.00 $ 515.28
274.42
3 300.70 $

108,943.67 $ 69,383.83 115,801.89
5,156.21

60,501.88 . 39,817.99 123,619.16
2,028.32

299,285.60 $ _ __;2=2=5=,9..;:;.67.;..;;.;;;.;35;;...

$

1,151.68

$

1,151.68 $

11,678.30

3,708.49 755.83

4,282.43 1,065.86

0.00 $ _ _ _5.._1_49_._74_

110,636.04

163,415.57

$

1 151.68 $

5 149.74 $

116,252.04 $ _ _1.;..8..0.,._._,4-"'42=."""'16;;...

$

200,754.08 $

8 450.44 $

415,537.64 $ ==4=0=6=,4=09...,.5..,1,...



- 19 -

LANIER 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 Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

40,938.00 $

386,981.70

390,605.91

178 311.49

$

609,855.40 $ _ ___::3:;.::8.:::.6=,9-=-81.:..:..7.:...:0;_

$

321,315.05

51,328.31 302.76

162.05 11' ,945.99
255.65

$ _ ____;6;;...;4..;;;.8"-',4=05;;..;..8.;;...4;_

1 671.89

$

648,405.84 $ _ ___::3;.;;;8.;;.6=98-=-1,;.;,..7;..;0;_

$

-38,550.44 $

0.00

$

-38,550.44 $

0.00

149,385.03

0.00

-573.94 -310.03

$ 109,950.62 $===-===o=.o=o=

See notes to the general purpose financial statements.
- 20 -

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

$

657,594.26

$

657,594.26 $

53,637.95 $ 200.00
53,837.95 $

481,557.65 $ 1,048,200.17
178 511.49
1,708,269.31 $

420,760.07 948,678.94 200,314.71
1,569,753.72

$

340,398.57 $

58,967.27 105,324.68
11,587.28 69,882.39

10,798.24 73,108.48

$ _ . 670,066.91 $

$

-12,472.65 $

2,997.57 $ 63,457.09
640.38 972.00
68,067.04 $ -14,229.09 $

664,711.19 $
173,752.67 106,267.82
11,587.28 71,016.44 11,945.99 11,053.89 73,108.48 650,077.73
1,773,521.49 $
-65,252.18 $

657,148.96
106,067.06 77,440.78 10,943.05 68,509.12 12,271.08
8,219.67 74,774.99 647,643.06
1,663,017.77
-93,264.05

1 946.03

1 946.03

62,203.79

$

-10,526.62 $

-14,229.09 $

-63,306.15 $

-31,060.26

11,678.30

19,378.83

180,442.16

214,249.84

-573.94 -310.03

-2,755.16 7.74

$

1151.68 $

5 149.74 $

116,252.04 $ ==1=8==0.,.,4=42==16=

- 21 -

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

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

24,641.42

$ _ _---::;6.i.:2:;,.:;.so;::.:.:;.;00=--

104,284.90

Total Assets

$

6,250.00 $ ===12=8='=,9=2=6.=32==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Notes Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For State Capital Outlay For SPLOST Projects Unreserved Deficit Undesignated

Total Fund Equity
Total Liabilities and Fund Equity

$

6,250.00

$

156,346.66

118,979.05

43 048.31

$

6,250.00 $ ---=-31.:..,:8:.i.:,3:.:.7..:.:4;.:;.02=-

$
$ _ _ _ _.=..;0.=00;:;_

-189,447.70 0.00

$

0.00 $ _ _-...;1.;:;.89.::.,.,;.44.:..;7;..:.7;...;0=--

$

128,926.32

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX
$
$ _ _...:6.;:;.5=0.;;.54.;.;c.;.;79a..

LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

195,022.21 $

219,663.63 $

84,615.45

80,681.06

256,270.75

46 047.02

$

65 054.79 $

275,703.27 $

475,934.38 $==1=3=0-,6=6=2..4...7=

$

65,054.79

$

71,304.79

$

134,474.93

290,821.59

103,396.66

222,375.71

37,831.68

80,879.99

$

65,054.79 $

275,703.27 $ _ ___,;6;;.;;6..;:;.5=,3=82=.0=8c...

$

37,937.00

67,142.62

$ -189,447.70

$

o.oo $ _ _ _ _o==ooa....

0.00

25,582.85



$

0.00 $

0.00 $ -189 447.70 $ _ _1.....:3..;:;.0=,6=62=.4~7_

$

65 054.79 $

275,703.27 $

475,934.38 $

130,662.47

- 23 -

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

25,000.00 $

179,757.00

$

25,ooo.oo $ ---'1'-'-7=9c.:..75=-=7c.;.;o. ;;..;;o:....

$

39,662.74 $

475,477.83

$

39,662.74 $ _ _ _4;.;.7.;;.5i..;.4.;_77;.;.8;.;3;..

$

-14 662.74 $ _ _..;-2=9.;;.5i:.7:.=.,20;;.;..8;;.;3:....

$

8,586.54 $

86,300.13

$

8,586.54 $ _ ___:;.8.::.,6,.:;.30::.;:0;;.;..1.;.;:3:....

$

-6,076.20 $

-209,420.70

25,582.85

19,973.00

-19,506.65

FUND BALANCE JUNE 30

$

0.00 $ ==-=-1=8:=!9.,;,44,;,,:7.,;,7. ;.,;;0=

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

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

161,676.00 $

366,433.00

$

389,526.70

389,526.70 $

2,722.90

2,722.90

67,142.62

$

392,249.60 $

161,676.00 $

758 I682.60 $ _ _...;:6:.:,.7.z..1:.,..;.;42:,:.:,:62=-

$
$ _ _1.;..;:3=5=,o-=-50:;..:..o;::.::o;....

$

135,050.00 $

$

257,199.60 $

417,682.09 $
417,682.09 $ -256,006.09 $

932,822.66 $

0.00

135,050.00

1,067,872.66 $ _ _ _ _0;::.:.::.;00::...

-309,190.06 $ _ _...;:6:.:..7.z..1:.,.;.;42:.:.6.:.:2::...

$
$ _ ____,;-3;;.;;;2;..;.4=,3..;.;42=.2=2'-

$

-324,342.22 $

238,042.09 $ 238,042.09 $

332,928.76 $ -324,342.22

37,937.00

8,586.54 $ _ _-=3:.:..7=,9-=-37;...:..o=o::...

$

-67,142.62 $

-17,964.00 $

-300,603.52 $

105,079.62

67,142.62

17,964.00

130,662.47

25,582.85

-19,506.65

$

----- - -

0.00
------

$ 0.00- - -- - - ------------ -

$

-189 447.70 $ ____13_0_,6_6_2.4..7...,

- 25-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster

* 10.553 * 10.555

N/A $ 106,248.18

(2)

N/A

257,364.97 $ -----62-1-,4"1-3.-08-

$ 363,613.15 $

621,413.08

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U.S. Department of Agriculture

10.550

NIA

26,992.76

26,992.76

$ 390,605.91 $ _ _ _6_48'-'-,4_0_5_.84_

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

* 84.027 * 84.173

NIA $ 100,344.04 $

NIA

20,289.64

$ 120,633.68 $

100,344.04 20,289.64
120,633.68

Other Programs Direct Impact Aid Pass-Through From Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Safe and Drug-Free Schools Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Class Size Reduction Innovative Education Program Strategies Vocational Education - Basic Grants to States High School Program Basic Grant Tech-Prep Education
Total U.S. Department of Education

84.041
84.011 84.186
84.010 84.281 84.340 84.298
84.048
84.243

1,823.63

(3)

N/A

12,504.82

12,504.82

NIA

31,602.35

31,602.35

NIA

347,959.17

347,959.17

N/A

16,000.00

26,526.62

NIA

45,397.00

45,397.00

N/A

11,799.00

11,799.00

NIA

23,558.24

25,504.27

N/A

35,000.00

35,000.00

$ 646,277.89 $ ---"""6"5-6-,-9-2'6-.-9-1-

-26-

LANIER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Pass-Through from Georgia Department of Human Resources Substance Abuse Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.959

NIA $ 13,140.00 $ _ __.:..:13::..,_,1.:..,;4c.:.O:.:;.O.:.O

Total Federal Financial Assistance

$ 1,050,023.80 $ =====1..,,3.1.8...,,4.,.7.2....7..,..5

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures on this program were 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 Lanier County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.



See notes to the general purpose financial statements.

- 27 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grant
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-Term Adjustment Migrant Mid-Term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Special Education Low Incidence Grant Teachers' Retirement Tuition for the Multi-Handicapped Year 2000 Project Lottery Programs Assistive Technology Computers In Classrooms Exceptional Growth - Capital OuUay
Georgia State Financing and Investment Commission Reimbursement on Construction Project
Human Resources, Georgia Department of Children's Trust Fund 2nd Step Grant Family Connection
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Georgia's Reading Challenge
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 25,000.00 $ 25,000.00

$ 2,915,470.00 395,340.00 121,118.00 121,776.00 33,203.00 796,847.00

146,054.00 28,528.00 121,290.00 110,560.00 107,647.00 67,175.00 25,533.00
512.00 11,571.00 28,842.00 -314,636.00 548,819.00
$
16,895.00

40,938.00

35,000.00 5,897.87 750.00
90,585.16 5,000.00 8,961.00 3,203.45 15,000.00 8,895.24
97,220.28 4,476.50

8,641.90 53,000.00

161,676.00

2,915,470.00 395,340.00 121,118.00 121,776.00 33,203.00 796,847.00
146,054.00 28,528.00 121,290.00 110,560.00 107,647.00 67,175.00 25,533.00
512.00 11,571.00 28,842.00 -314,636.00 548,819.00 40,938.00 16,895.00
35,000.00 5,897.87 750.00
90,585.16 5,000.00 8,961.00 3,203.45 15,000.00 8,895.24
97,220.28 4,476.50
8,641.90 53,000.00 161,676.00

179,757.00
3,637.95 50,000.00
325,339.80
16,992.00

179,757.00
3,637.95 50,000.00
325,339.80
16,992.00

25,135.00

25,135.00

$ 5,599,660.50 $ 481,557.65 $ 366,433.00 $ 6,447,651.15

-28-

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

SCHEDULE "3"

PROJECT
Construction of six classrooms and two restrooms at Lanier County Elementary, addition to dining area at Lanier County Elementary, eight classrooms and two restrooms at Lanier County High School, renovations, modifications and upgrading of technology at Lanier County Elementary School and Lanier County High School together with equipping of same, acquisition of all property, both real and personal

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

= - -..... $ 1,a11,a4s.oo $ 2,109,000.00 $ 1,02a,209.92 $

o_.o_o

(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 Lanier County approved the imposition of a 1% sales tax to fund the above project. 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-

LANIER COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100/o TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

3,553,704.00 $ - - - -11~ 8,76-8.0-0

$

3,957,745.99

194,955.24 $ ------'-'16;;..;;8'"'"'7,--'4.c..6.;.;.9.c..O

$

4,152,701.23

-29,499.30 $ _ _ _4;.:,.1, =2=3=,2..;;..0_1..;.93.;_

$

0.00 $=====0.=00=

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

LANIER 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 ci
Vocational Education Laboratories () Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category II () Category Ill () Category IV () Sub-Total - Regular Category VI (Gifted) () Total Special Education Programs
REMEDIAL EDUCATION PROGRAM cl
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

320,146.00

$

288,131.40 $

0.00

791,228.00

712,105.20

$ 1,111,374.00 90 $ 1,000,236.60 $

0.00

345,432.00 90

310,888.80

658,913.00 90

593,021.70

246,910.00 90

222,219.00

242,247.00 90

218,022.30

310,594.00 90

279,534.60

$ 2,915,470.00

$ 2,623,923.00 $ ------'-0.'00-

$

357,139.00

$

321,425.10 $

0.00

$

357,139.00 90 $

321,425.10 $

0.00

38,201.00 90

34,380.90

$

395,340.00

$

- - - - - - 355,806.00 $

0.00

$

121,118.00 90 $

- - - - - - 109,006.20 $

0.00

$ 3,431,928.00

$

3,088,735.20 $ _ _ _ _..;;.O""'.O.;;..O

$

97,097.00 90 $

87,387.30 $

24,679.00 100

24,679.00

0.00

$

121,776.00

$

- - - - - - 112,066.30 $

0.00

$ 3,553,704.00

- - - - - - $ 3,200,801.50 $

0.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

10,784.00

22,419.00

$

10,784.00 $

22,419.00

0.00 0.00

Total Staff Development Programs () Identifies Fourteen Weighted Programs.

$

33,203.00 100 $

s_ _ _ _ 33.203.oo

o_._oo_

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

$

288,131.40 $

712,105.20

$ 1,000,236.60 $

310,888.80

593,021.70

222,219.00

218,022.30

279,534.60

$ 2,623,923.00 $

367,721.71 $ 842,208.32 1,209,930.03 $ 460,165.64 694,061.91 189,577.60 331,440.98 274,516.13 3,159,692.29 $

7,538.39 $ 32,331.80 39,870.19 $ 18,153.04 26,118.54 36,386.13 6,332.61 41,206.75 168,067.26 $

375,260.10 874,540.12 1,249,800.22 $ 478,318.68 720,180.45 225,963.73 337,773.59 315,722.88 3,327,759.55

0.00 0.00 0.00 0.00 0.00 0.00

$

321,425.10

$

125,003.59 $ 366,394.28
3,528.13

67.80 $

125,071.39 366,394.28
3,528.13

$

321,425.10 $

494,926.00 $

67.80 $

494,993.80

0.00

34,380.90

62,517.27

380.57

62,897.84

0.00

$

355,806.00 $

557,443.27 $

----'--- 448.37 $

557,891.64

$

109,006.20 $

115,543.47 $

231.27 $ - - -1-15',7-74-.7-4

0.00

$ 3,088,735.20 $

3,832,679.03 $

168,746.90 $ 4,001,425.93

$

87,387.30 $

125,066.96

$

125,066.96

0.00

24,679.00 - - - - - - $ _ _...;2;;.;;6..;.,2_0_8_.34_

26,208.34

0.00

$

112,066.30 $

125,066.96 $

-------- 26,208.34 $

151,275.30



$ 3,200,801.50 $

3,957,745.99 $

194,955.24 $ 4,152,701.23 s _ _ _ _ _ _ _o.o...o.

$

10,784.00

22,419.00

$ =---3-3,_,2_,o,.3._oo=

$

23,352.38 $

23,352.38

11,119.04

11,119.04

$

34,471.42 $

-------- 34,471.42 $

0.00

- 33 -

SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS

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

o~...'? I!

~-'<

:C->

,,.. ~~: :,.



DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta. Gecirgia 3()334-84()0

January 25, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lanier 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 ofLanier County Board ofEducation as ofand for the year
ended June 30, 2000, and have issued our report thereon dated January 25, 2001. This report was
qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to 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 Lanier County Board of Education's financial statements are free of material misstatement, we perfo1111ed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1111ination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and perfo1111ing our audit, we considered Lanier County Board of Education'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 control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Lanier County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6861-00-03.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of 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, the reportable condition described above is also considered to be a material weakness.
This report is intended solely for the infu11nation and use of management, members of the Lanier County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2000YB-40

Ru sell W. Hinton State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
January 25, 2001

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

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local

Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfu11n 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 Lanier County Board ofEducation's compliance with those requirements and perfo11ning 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 dete1mination on Lanier County Board of Education's compliance with those requirements.
2000SA-10

In our opinion, the Lanier County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Lanier 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 Lanier County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration 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 norrnal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Lanier County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp
2000SA-10

Ru sell W. Hinton State Auditor

SECTION III AUDl'l'EB'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

LANIER 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

FS-6861-98-02 FS-6861-99-01 FS-6861-99-02

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

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6861-99-02

A General Fixed Assets Account Group is not possible at this time due to the expense of establishing a cost for the existing assets of the system.

SECTION IV FINDINGS AND QUESTIONED COSTS

LAN1ER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2000
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Lanier 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 Lanier County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Lanier 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 Lanier 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 Lanier 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) ofOMB Circular A-133 The Lanier County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.027 Special Education Cluster- Individuals with Disabilities Education Act - Part B Special Education - Flow Through 84.173 Special Education Cluster - Individuals with Disabilities Education Act - Part B Special Education - Preschool
8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00.
- 1-


LANIER 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 Lanier County Board of Education 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
BUDGET PREPARATION/EXECUTION Deficit Fund Balance Nonmaterial Noncompliance Finding Control Number: FS-6861-00-01
At June 30, 2000, the liabilities and reserved fund balances exceeded assets available for the General Fund by $31,656.80 and for the Capital Projects Fund by $189,447.70. O.C.G.A. 20-2-67 (b) requires that the Superintendent submit to the Georgia Department of Education both a response to this condition and a corrective action plan designed to correct the budget deficit. The Board should establish budgetary procedures to ensure that funding is available prior to the Board committing to expenditures.
BUDGET PREPARATION/EXECUTION Temporary Loans Outstanding Nonmaterial Noncompliance Finding Control Number: FS-6861-00-02
At June 30, 2000, the total temporary loans obtained by the Board exceeded the maximum allowable amount. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year. The Board should establish budgetary procedures to ensure that temporary loans obtained does not exceed the maximum allowable amount.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6861-00-03
The Lanier County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, may not be
-2-

LANIER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6861-00-03 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.

-3-