Audit report, Liberty County Board of Education, Hinesville, Georgia, year ended June 30, 1998

AUDIT REPORT LIBERTY COUNTY BOARD OF EDUCATION
HINESVILLE,GEORGIA YEAR ENDED JUNE 30, 1998
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

LIBERTY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

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

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

17

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

18

H

COMBINING STATEMENT OF REVENUES, EXPENDI'f9RES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

22

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

23

3 SCHEDULE OF STATE REVENUE

25

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

26

5 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

27

LIBERTY COUNTY BOARD OF EDUCATION -TABLE OF CONfENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

6

OVERALL

29

7

BYPROGRAM

30

SECTIONil
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

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

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 7, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Liberty County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Liberty 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 Liberty 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 Auditin~
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 report the deferred compensation plan assets and liabilities within the general
purpose financial statements. To conform to generally accepted accounting principles, these amounts 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 ofrelated 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 ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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, 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 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 Liberty County Board ofEducation as ofJune 30, 1998, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditin~ Standards, we have also issued our report dated July 7, 1999, on
our consideration ofthe Liberty County Board ofEducation's internal control over financial reporting and our tests of its 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 ofinquiries ofmanagement regarding the methods ofmeasurement and presentation ofthe 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 Liberty
County Board ofEducation 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 Liberty County Board ofEducation does business are or will become year 2000 compliant.
98ARL-13B

Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Liberty County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) 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, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit 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 taken 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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

RWH:jb 98ARL-13B

State Auditor

LIBERTY COUNTY BOARD OF EDUCATION

LIBERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 1998

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

GENERAL FUND

GOVERNMENTAL SPECIAL REVENUE FUND

$

7,647,987.98 $

822,919.38

541,664.42

393,760.23

119,485.22 20,289.45

$

8,189,652.40 $ 1,356,454.28

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

$

388,941.32 $

155,376.22

6,211.20

462,963.54

3,814.79

16,489.60

$

398,967.31 $

634,829.36

$

42,914.30

$

119,485.22

20,289.45

7,747,770.79

$

7,790,685.09 $

581,850.25 721,624.92

$

8, 189,652.40 $ 1,356,454.28

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

EXHIBIT "A"

FUND TYPES CAPITAL
PROJECTS FUND
$ 3,248,835.75 $
670,466.50

DEBT SERVICE
FUND

TOTALS

{Memorandum Onl~}

JUNE 30, 1998

JUNE 30, 1997

51,196.86 $ 11,770,939.97 $ 4,962,612.46

261.16

1,606,152.31

1,298,101.29

119,485.22 20,289.45

102,461.44 19,973.08

$ 3,919,302.25 $

51,458.02 $ 13,516,866.95 $ 6,383,148.27

$

544,317.54 $

469,174.74

20,304.39

$ 1,033,796.67 $

288,000.77 444,539.77
19,020.17 28,549.67
780,110.38

$

905,982.00

2,609,766.32

403,553.93 $

$ 3,919,302.25 $

$

42,914.30 $

276,112.50

51,458.02 51,458.02 $

119,485.22 20,289.45 905,982.00 2,609,766.32
8,784,632.99
12,483,070.28 $

102,461.44 19,973.08
5,204,490.87 5,603,037.89

$ 3,919,302.25 $

51,458.02 $ 13,516,866.95 $ 6,383,148.27

-3-

LIBERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED 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
Capital Outlay
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

GENERAL FUND

SPECIAL REVENUE
FUND

$ 36,217,683.05 $
2,588,883.45 8,894,301.39
113041392.66
$ 4910051260.55 $

1,529,457.60
4,676,298.97
9811803.28
711871559.85

$ 30,345,035.18 $
2,162,867.35 985,563.74
1,138,578.16 579,486.64
3,549,614.35 147,313.04
3,655,571.84 2,582,664.79
297,569.63 281,917.78
671529.35
$ 45z793z711.85 $
$ 312111548.70 $

2,836,448.53
214,277.84 201,382.55
110,615.10 23,368.36
37,207.42 18,023.51
79,741.36 3,532,606.54
710531671.21 1331888.64

$

$

-121338.69

$

-121338.69 $

$ 3,199,210.01 $
4,591,475.08

12,338.69
121338.69
146,227.33 558,057.44
17,023.78 316.37

FUND BALANCE JUNE 30

s___ $ 1,190,685.09

1.2..1...s=2_4_.9_2

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$ 3,663,623.98 $ 66,186.44
$ 3z729,810.42 $

$ 1,506.58
1,506.58 $

37,747,140.65 $ 7,265,182.42 12,559,431.95 2,352,382.38
59,924,137.40 $

34,913,709.02 5,939,357.96 8,737,801.79 1,925,464.16
51,516,332.93

$

$

214,062.10

$

214,062.10 $

$ 3.515z748.32 $

0.00 $
0.00 $ 1,506.58 $

33,181,483.71 $
2,377,145.19 1,186,946.29 1,138,578.16
690,101.74 3,572,982.71
147,313.04 3,692,779.26 2,600,688.30
297,569.63 361,659.14 3,532,606.54 281,591.45
53.061,445.16 $
6.862,692.24 $

31,754,270.38
2,180,240.15 1,144,974.09 1,274,147.85
634,141.19 3,433,075.01
133,853.55 4,097,843.77 1,878,265.40
303,626.58 181,695.90 3,373,585.25 830,522.12
51,220.241.24
296.091.69

$ 3,515,748.32 $ 403,553.93

$

12,338.69 $

660,900.83 .

-12.338.69

-660,900.83

$

0.00 $

0.00

1,506.58 $ 49,951.44

6,862,692.24 $ 5,603,037.89

296,091.69 5,311,412.38

17,023.78 316.37

-7,177.68 2.711.50

$ 3,919,302.25 $

51,458.02 $ 12,483,070.28 $ 5,603,037.89

-5-

LIBERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL CNON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1998

EXHIBIT"C"

GENERAL FUND

ACTUAL

{BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 35,062,928.06 $ 36,217,683.05

700,000.00

2,588,883.45

7,370,470.00

8,894,301.39

270,000.00

11304,392.66

Total Revenues

$ 431403,398.06 $ 4910051260.55

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
Capital Outlay

$ 30,438,995.90 $ 30,345,035.18

2,058,933.37 984,534.05
1,205,089.05 549,347.31
3,413,915.06 139,055.00
4,224,141.38 2,237,887.61
302,300.27 57,474.00

2,162,867.35 985,563.74
1,138,578.16 579,486.64
3,549,614.35 147,313.04
3,655,571.84 2,582,664.79
297,569.63 281,917.78

1001000.00

671529.35

Total Expenditures

$ 45z7111673.00 $ 45,793z711.85

Excess of Revenues over {under) Expenditures

$ -213081274.94 $ 312111548.70

OTHER FINANCING SOU~ES CUSES}

Other Sources Other Uses

$

-121338.69

Total Other Financing Sources {Uses)

$

-12,338.69

Excess of Revenues and Other Financing Sources over {under) Expenditures and Other Financing Uses $ -2,308,274.94 $ 3,199,210.01

FUND BALANCE J!.!1.Y 1, 1~7

4,571,584.41

4,591,475.08

Food Inventory - Net Change in Period Donated Commodities Purchased Food

SPECIAL REVENUE FUND

ACTUAL

{BUDGET

BUDGET

BASIS}

$ 280,674.00 $ 1,529,457.60

4,701,275.00

4,676,298.97

2,479,681.00

981,803.28

$ 714611630.00 $ 711871559.85

$ 3,225,059.00 $ 2,836,448.53

126,680.00 229,218.00
1,981.00 139,081.00
14,100.00 1,600.00

214,2n.84 201,382.55
110,615.10 23,368.36
37,207.42 18,023.51

276,500.00 3,013,327.00
632.00

79,741.36 3,532,606.54

$ 710281178.00 $ 710531671.21

$

4331452.00 $

1331888.64

$

12,338.69

$

121338.69

$ 433,452.00 $ 146,227.33

553,246.94

558,057.44

17,023.78 316.37

FUND BALANCE JUNE 30, 1998

$ 263.309.47 $ 7.790,685.09

$ 986,698.94 $ 721,624.92

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

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Liberty 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 of all the organizations that compose its legal entity.

FUND ACCOUNTING

The Board uses funds to report on its financial position and the results ofits 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.

General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose :financial statements.

The general purpose financial statements account for all State, Federal, Taxes and Other funds under control

ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units,

unless otherwise disclosed in these notes. Funds 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.

SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.

-7-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
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.
Governmental funds are accounted for ~ing the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, 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 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 of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two of the 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
-8-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Liberty County Board ofEducation'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 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.
CASH AND CASH EQUIVALENTS
COMPOSmON 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.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Liberty County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 10, 1997 (levy date). Taxes were due on March 16, 1998. The lien date for property taxes was

-9-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Liberty County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board.
The tax millage rate levied for the 1997 tax year (calendar year) for the Liberty County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):
School Operations
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 $3,663,623.98 and was recorded in the Capital Projects Fund. The State will terminate collection ofthis tax once an additional $20,336,376.02 has been collected or on June 30, 2002, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
INTERFUND TRANSACTIONS
The Board has the following types of inter:fund 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 inter:fund transactions other than reimbursements.

-10-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only'' to indicate that they are presented only to facilitate :financial analysis. Data in these columns do not present :financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 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 any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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 and debt obligations issued by the Federal Land Bank, the Federal Home

- 11 -

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 2: DEPOSITS

Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Fann 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 $14,729,382.50. The amounts of the total bank 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 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 Cate~ry

Bank Balance

1

$ 200,000.00

2

14,529,382.50

3

0,00

Total
Note 3: NON-MONETARY TRANSACTIONS

$14.729.3 82,50

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets and 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.

- 12-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 4: RISK MANAGEMENT

The Board has elected to self-insure for all losses related to natural disaster. In addition, 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 of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning ofYear
Liability

Claims and Changes in
Estimates

Claims
Paid

End ofYear
Liability

1997

$

Q,QQ $ 22,126.58 $ 22,126,58 $

Q,QQ

1998

$

Q,QQ $ ~1,625,SZ $ 41,625,51 $

Q,QQ

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

Position Covered

Amount

All Employees (Per Loss)

$ 50,000.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$593,689.08 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$456,321.00

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$10,389.08

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$126,979.00

-13 -

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 6: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is believed to be material to the general purpose financial statements as described below.
The Board is a defendant in a wrongful death suit. The plaintiffs have asked that they be awarded an amount in excess of $1,000,000.00. The Board has insurance coverage with policy limits of $1,000,000.00. The ultimate disposition of these proceedings is not presently determinable.
Note 7: DEFERRED COMPENSATION PLAN
The Board offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all Board employees, permits them to defer a portion oftheir salary until future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement,. death or unforeseeable emergency.
All amounts ofcompensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property or rights are (until paid or made available to the employee or other beneficiary) solely the property and rights of the Board subject only to the claims of the Board's general creditors. Participants' rights under the plan are equal to those of general creditors of the Board in an amount equal to the fair market value of the deferred account for each participant.
It is the opinion ofthe Board that the Board has no liability for losses under the plan but does have the duty ofdue care that would be required of an ordinary prudent investor. The Board believes it is unlikely that it will use the assets to satisfy the claims of general creditors in the future.
The Board has designated an independent plan administrator to operate and maintain the plan. The assets and liabilities of the plan are not reflected in these financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
Note 8: 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
- 14-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 8: RETIREMENT PLANS

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 ofthe 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 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1998 1997 1996

100% 100% 100%

$ 3,545,085.87 $ 3,384,302.90 $ 3,317,636.60

- 15 -

LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1998

EXHIBIT"E"

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1998 JUNE 30, 1997

$ 805,213.00 $ 126,388.71

$ 931,601.71 $ 758,915.89

39,857.09

12,150.02 $ 341,753.12

393,760.23

390,769.73

119,485.22 20,289.45

119,485.22 20,289.45

102,461.44 19,973.08

$ 984,844.76 $ 138,538.73 $ 341,753.12 $ 1,465,136.61 $ 1,272,120.14

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$ 108,682.33 $

$ 81,912.40 $ 27,205.24

46,258.58

181,307.44

105,525.34

176,130.76

5,808.15

10,681.45

$ 263,219.84 $ 1381538.73 $ 341z753.12 $

$ 119,485.22 20,289.45
5811850.25 $
$ 721,624.92 $

0.00 $ 0.00 $

$
0.00 0.00 $

108,682.33 $ 155,376.22 462,963.54
16,489.60
743,511.69 $

142,929.72 123,019.21 444,539.n
3,574.00
714,062.70

119,485.22 $ 20,289.45
581,850.25
721,624.92 $

102,461.44 19,973.08
435,622.92
558,057.44

Total Liabilities and Fund Equity

$ 9841844.76 $ 138,538.73 $ 341:753.12 $ 11465,136.61 $ 1,272,120.14

See notes to the general purpose financial statements.

-16-

LIBERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1998

EXHIBIT"F"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

REVENUES

State Funds Federal Funds Other Funds

$ 280,674.00 $ 1,248,783.60

$ 1,529,457.60 $ 1,646,848.52

2,416,356.59

$ 2,259,942.38 4,676,298.97 4,223,303.96

9811803.28

981,803.28

977,758.89

Total Revenues

$ 3,6781833.87 $ 1,248,783.60 $ 2,2591942.38 $ 7,1871559.85 $ 6,847,911.37

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation

$ 1,128,624.78 $ 1,707,823.75 $ 2,836,448.53 $ 2,613,136.07

$ 3,532,606.54

43,582.27 6,164.07 466.70
20,768.36 37,207.42 11,970.00

170,695.57 195,218.48 110,148.40
2,600.00
6,053.51 79,741.36

214,277.84 201,382.55 110,615.10
23,368.36 37,207.42 18,023.51 79,741.36 3,532,606.54

243,165.53 152,311.73 156,701.05
19,589.65 74,255.85
3,842.44 95,891.12 3,3731585.25

Total Expenditures

$ 31532,606.54 $ 1,248i783.60 $ 212721281.07 $ 71053,671.21 $ 6?321478.69

Excess of Revenues over (under) Expenditures

$ 146,227.33 $

0.00 $ -12,338.69 $ 133,888.64 $ 115,432.68

QIHE;R FINANCING OURCE

Operating Transfers In

121338.69

121338.69

71303.49

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 146,227.33 $

0.00 $

0.00 $ 146,227.33 $ 122,736.17

FUND BALANCE JULY 1

558,057.44

0.00

0.00

558,057.44

439,787.45

Food Inventory - Net Change in Period Donated Commodities Purchased Food

17,023.78 316.37

17,023.78 316.37

-7,177.68 2,711.50

E!.!NQ 6ALANCE JUNE; ~Q

$ 721,624.92 $

0.00 $

0.00 $ 721,624.92 $ 558,057.44

See notes to the general purpose financial statements.

-17-

LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 1998

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For State Capital Outlay Projects For SPLOST Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

403,553.93 $

546,342.00

$

403,553.93 $ ======54=6=,3=4=2=.0=0=

$

546,342.00

$_...,...._4_03_.,5_5_3_.9_3

0.00

$

403,553.93 $ _ _54;;...;..;;;.6=34...;.;2=.o"-o~

$

s_ _ _ 403,553.93

54_6=,34=====2=.o==o

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

JUNE 30, 1998

JUNE 30, 1997

$ 1,939,299.82 $

359,640.00 $ 3,248,835.75 $

585,400.60

670,466.50

670,466.50

1,417.50

$ 2,609.766.32 $

359,640.00 $

3,919,302.25 $ ========5=8=6'=81=8=.1_0

$

154,714.50

28,549.67

$ _ _1.;.;;8.;.,3,=26;.a.4.a..a.1.a..7

$ $ 2,609,766.32
0.00
$_...aa.,.a2;..,a6..0aa9.","7'-66.32 $

359,640.00 $
0.00
359,640.00 $

905,982.00 2,609,766.32
403,553.93 $
3,919,302.25 $

403,553.93 403,553.93

$ 2,609,766.32 $

359,640.00 $ 3,919,302.25 $ =======5=8=6=,8=1=8=.=1=0=

- 19-

LIBERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1998

REVENUES Taxes Other Funds Total Revenues
EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements 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
FUND BALANCE JUNE 30

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00 $

0.00

$

0.00 $

0.00

$

500.00

$

0.00

10,283.60

$

0.00 $

10,783.60

$

0.00 $

-10,783.60

$

557,125.60

$

557,125.60

$

0.00 $

546,342.00

403,553.93

0.00

$

403,553.93 $ ===--===54=6==34-2_.o...,.o

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

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$ 3,663,623.98 $ 66,186.44
$ 3,729,810.42 $

0.00 $ 0.00 $

3,663,623.98 66,186.44 $ _ __.;;;.i3,=22=6=.8~6
3,729,810.42 $ _ _____.3,_22_6_.86_

$
$ ___20_1..._,2_4_5._00_

$

201,245.00 $

$ 3,528,565.42 $

2,033.50 $ -2,033.50 $

2,533.50 $ 211,528.60

3,235.00 827,287.12

214,062.10 $ _ _8"""3"""'0,=52=2"'-'.1=-2

3,515,748.32 $

-827,295.26

$

$

-918,799.10

$

-918,799.10 $

$ 2,609,766.32 $ 0.00

361,673.50 $ 361,673.50 $

918,799.10 $ -918,799.10
0.00 $

1,271,926.54 -618,329.20
653,597.34

359,640.00 $ 0.00

3,515,748.32 $ 403,553.93

-173,697.92 577,251.85

$ 2,609,766.32 $

359,640.00 $

s_ _ 319191302.25

4_o_3._ss_3_.9_3

-21 -

LIBERTY COUNTY BOARD OF EDUCATION

SCHEDULE "1"

SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1998

At June 30, 1998, the Liberty County Board of Education 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 and instructional computer equipment. 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 ofidentifying all ofits systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
Validation/Testing 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 ~mpliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the instructional computer equipment was determined to be at the Assessment Stage; and the :financial accounting system was determined to be at the Remediation Stage.

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

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998

SCHEDULE 2

FUNDING AGENCY PROGRAM/GRANT
Agriculture, 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) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Program 1998 Contract
Total U. S. Department of Agriculture
Education, U. S. Department of Direct Impact Aid 1992 Grant 1994 Grant 1996 Grant 1997 Grant 1998 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Titie 1
Grants to Local Educational Agencies 1998 Grant
Titiell Eisenhower Professional Development 1997 Grant 1998 Grant
TitieVI Innovative Education Program Strategies 1998 Grant
Safe and Drug-Free Schools 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
Tech-Prep Education 1998 Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553
10.555 10.550

N/A

$ 477,926.21

(2)

NIA

1,669,409.56 $ 3,272,522.65 (3)

N/A

260,083.89

260,083.89

10.558

N/A

8,936.93

(2)

$ 2,416,356.59 $ 3,532,606.54

* 84.041 * 84.041 * 84.041 * 84.041 * 84.041

$

26,201.20

(5)

469,364.00

(5)

4,220.00

(5)

216,733.00

(5)

1,594,020.00

(5)

84.010

NIA

84.281

NIA

84.281

NIA

84.298

NIA

84.186

NIA

1,686,274.90 $ 1,698,613.59 (3)

14,094.38 41,096.35

14,094.38 41,096.35

50,423.87 73,217.04

50,423.87 73,217.04

84.027

NIA

84.173

NIA

221,674.37 52,009.26

221,674.37 52,009.26

84.048 84.243

NIA

86,395.33

86,395.3~

N/A

34,756.88

34,756.88

$ 4,570,480.58 $ 2,272,281.07

-23-

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998

SCHEDULE "2"

FUNDING AGENCY PROGRAM/GRANT
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army Domestic Dependent Elementary and Secondary Schools PL-102-484 1998 Contract R.O.T.C. Program Troops To Teachers
Total U. S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

12.999

$ 202,206.79

(5)

44,204.59

(4)

31,933.87

(4)

$ 278,345.25

Total Federal Financial Assistance

$ 7,265,182.42 $ 5,804,887.61

NIA = 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 Child and Adult Care Food Program and 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 on this program were not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds eamed on this program do not require reporting of expenditures.

Major Programs are identified by an asterisk C-) 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 Uberty County Board of Education and is presented on the modified acaual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-24-

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1998

SCHEDULE "3"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Ad Valorem Tax Adjustment Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Records Teachers' Retirement Lottery Programs Alternative School Program Instructional Technology Assistive Technology Classroom Technology
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Leadership Development Program
Office of the Governor Georgia Council for the Arts Georgia Challenge Grant

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 20,582,498.00 2,305,250.00 908,212.00 868,152.00 276,649.10 5,706,626.00
798,570.00 224,473.00
13,294.00 790,315.00 818,123.00 185,947.00 325,544.00
82,291.00 57,685.00 -2, 186,558.00 3,301,204.00
$ 3,505.00
122,623.00 129,500.00 39,265.41
989.06 456,321.00
12,596.00 213,046.00
17,261.65 21,919.50 10,389.08
126,979.00

$
280,674.00
3,905.26 5,499.00 297,093.02

20,582,498.00 2,305,250.00 908,212.00 868,152.00 276,649.10 5,706,626.00
798,570.00 224,473.00
13,294.00 790,315.00 818,123.00 185,947.00 325,544.00
82,291.00 57,685.00 -2, 186,558.00 3,301,204.00 280,674.00
3,505.00
122,623.00 129,500.00 39,265.41
989.06 456,321.00
12,596.00 213,046.00
17,261.65 21,919.50 10,389.08
3,905.26
5,499.00 297,093.02

942,286.32

942,286.32

126,979.00

1,000.00

1,000.00

4,013.25

4,013.25

See notes to the general purpose financial statements.

$ 36,217,683.05 $ 1,529,457.60 $ 37,747,140.65
-25-

LIBERTY COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 1998

SCHEDULE 4

PROJECT
Modify and Upgrade Heating and Air Conditioning System at Bradwell Institute
New Elementary School
New Middle School
New ROTC Classroom at Bradwell Institute
Technology Network, Wiring, Retrofitting at Button Gwinnett, Lyman Hall, Joseph B. Martin, Jordye Bacon, Frank Long, Snellson-Golden, Liberty County High School and Bradwell Institute
Paving at Bradwell Institute
New Addition to Liberty County High School
Construction of Storage Bulldings at Taylor's Creek, Frank Long, Snellson-Golden and Lewis Frazier Schools
Renovation of Button Gwinnett, Lyman Hall, Jordye Bacon and Bradwell Institute Schools
Modification of Jordye Bacon and Bradwell Institute Schools
Reroofing at Button Gwinnett, Lyman Hall, Jordye Bacon and Bradwell Institute Schools
Art Rooms at Button Gwinnett and Joseph B. Martin Schools
Music Room at Button Gwinnett School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST(2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$

1,300,000.00 $

1,430,000.00

5,486,055.00

8,405,720.00 $

6,835,876.00

12,403,246.00

390,000.00

510,510.00

2,033.50 $
10,783.60

0.00

865,735.00 390,000.00 952,380.00

1,489,659.00 429,000.00
1,639,000.00

442,000.00 4,290,000.00
754,000.00 2,059,954.00
156,000.00 781000.00

486,000.00 4,719,000.00
829,400.00 2,265,949.00
269,500.00 31oi700.oo

201,245.00

$

24,000,000.00 $

35,247,684.00 $._

214,062.10 s______o_.oo_

(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 each project. Includes all cost from project Inception to completion.

(3) The voters of Liberty County approved the imposition of a 1% sales tax to fund
the above projects. Amounts expended for these projects 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.

-26-

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS
YEAR ENDED JUNE 30, 1998

SCHEDULE "5"

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services

ALTERNATIVE PROGRAM

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

3,905.26 $

5,499.00 $

297,093.02 $

822,127.50 $ 1,128,624.78

43,582.27 6,164.07 466.70
20,768.36 37,207.42 11,970.00

43,582.27 6,164.07 466.70
20,768.36 37,207.42 11,970.00

Total Expenditures

$

3,905.26 $

5,499.00 $

297,093.02 $

942,286.32 $ 1,248,783.60

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Alternative School Program Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program

$ 884,922.76
3,905.26
5,499.00 297,093.02 57,363.56

$ 1.248,783.60

See notes to the general purpose financial statements.

-27-

LIBERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1998

SCHEDULE "6"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

24,948,477.00 $

775,254.00

$

26,749,291.64

1,760,478.65 $ _ _1:..i.;,5=2=8,~17;..;:2;.;.;.1~0

$

28,509,770.29

-152,275.34 $ _ _..;;;2=8=,3=57;...,.,4.;.,;;9'-',4=.9~5

$

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

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

LIBERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30, 1998

GENEBAL AND CAREER EDUCA!ION PROGRAMS Kindergarten (*) Grades 1 3 (*) Su'b-Total K-3 Grades 4 - 5 (*) Grades 6 8 (*) Grades 9 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
seECIAL EDUCAIIQN eBQGBAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*) Sub-Total Regular Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION eBOGRAM Cl
Total Fourteen Weighted Programs
MEDIA CENTER eBQGRAMS Salaries Operations Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL

~

ORIGINAL

MID-TERM

$ 2,369,278.00

s 2,132,350.20 $

0.00

51738,953.00

5,165,057.70

s s s 8,108,231.00 90

7,297,407.90

0.00

2,460,162.00 90

2,214,145.80

4,643,460.00 90

4,179,114.00

3,147,054.00 90

2,832,348.60

980,357.00 90

882,321.30

11243,234.00 90

1,1181910.60

s 201582,498.00

s s 18,524,248.20

0.00

s 1,952,816.00

s 1,757,534.40 $

185,835.00

s 1,952,816.00

3521434.00

s 2.3051250.00

s

9081212.00

s 23.7951960.00

s s 90

1,757,534.40

90

3171190.60

s $ 2.014,725.00

90 $

s 8171390.80

s s 21,4161364.00

185,835.00
185,835.00 0.00
185,835.00

s

s 692,165.00 90

s 622,948.50

175.987.00 90

158,388.30

s

868.152.00

s

s 781,336.80

75,769.00 22a7e1.oo
981530.00

s 24,664,112.00

s 22,197,700.80 $

264,365.00

SIAFF D~ELQeMElllI eBQGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

s

183,366.25

s

s 183,366.25

0.00

93,282.85

93,282.85

0.00

s

s 276,649.10 100

276,649.10 $

0.00

30

SCHEDULE 7

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,132,350.20 $ 2,089,856.69 $

84,129.74 $ 2, 173,986.43

5,165,057.70

5,364,322.26

194,133.14

5,558,455.40

$ 7,297,407.90 $ 7,454,178.95 $

278,262.88 $ 7,732,441.83 $

0.00

2,214,145.80

3,036,014.55

79,059.47

3,115,074.02

0.00

4,179,114.00

4,768,865.63

395,518.88

5,164,384.51

0.00

2,832,348.60

4,187,075.18

266,950.72

4,454,025.90

0.00

882,321.30

881,133.01

78,719.28

959,852.29

0.00

1,118,910.60

1,273,542.26

193,690.51

1,467,232.n

0.00

$ 18,524,248.20 $ 21,600,809.58 $ 1,292,201.74 $ 22,893,011.32

$ 1,943,369.40 $

299,383.64 $ 726,720.37 1,780,060.08 414,847.46
8,478.72

2,980.58 $ 5,535.62 20,340.32 2,473.04

302,364.22 732,255.99 1,800,400.40 417,320.50
. 8,478.72

$ 1,943,369.40 $ 3,229,490.27 $

31,329.56 $ 3,260,819.83

0.00

317,190.60

364,075.72

17,716.04

381,791.76

0.00

$ 2,260,560.00 $

s 3,593,565.99

s 49,045.60

3,642,611.59

$

s 817,390.80

s 668,265.28

s 186,924.76

855,190.04

0.00

$ 21,602,199.00 $ 25,862,640.85 $ 1,528,172.10 $ 27,390,812.95

$

698,717.50 $

886,650.79

$

886,650.79

0.00

181,149.30

$

232,306.55

232,306.55

0.00

$

879,866.80 $

886,650.79 $

232,306.55 $ 1,118,957.34

s $ 221482,065.80 $ 26,749,291.64 $ 1!760,478.65 $ 28,509,no.29

0.00

$

183,366.25

93,282.85

s _ _2_16.,,64_9.10_

s

183,419.30 $

183,419.30

93,282.85

93,282.85

$

276,702.15 $

216,102.15 s_______o.,oo.,

- 31 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS.AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 7, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Liberty 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 of Liberty County Board of Education as of and for the year ended June 30, 1998, and have issued our report thereon dated July 7, 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 standards and the standards applicable
to financial audits contained in Government Arulitini Standards, issued by the Comptroller General of the
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 Liberty County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of:financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government
Auditini Standards.

98YB-40

Internal Control Over Financial Re.porting
In planning and performing our audit, we considered Liberty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Liberty 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-6891-98-01.
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 ofperforming 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 noted 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 ofpublic record.
Respectfully submitted,
"?~.. (lQ ti).~ Russell W. Hinton State Auditor
RWH:jb 98YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 7, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Liberty County Board ofEducation
REPORT ON COMPLIANCE WITH REQIBREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNALCONTROLO\TER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
, Ladies and Gentlemen:
Compliance
We have audited the compliance of Liberty County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Liberty County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Liberty County Board of Education's management. Our responsibility is to express an opinion on Liberty 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 Auclitin& Standards, issued by the
Comptroller General of the United States; and 0MB Circular A-133,Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Liberty 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 Liberty County Board of Education's compliance with those requirements.

98SA-10

In our opinion, the Liberty 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, 1998.
Internal Control Over Compliance
The management of Liberty 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 Liberty 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 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 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 ofpublic record.
Respectfully submitted,

RWH:jb 98SA-10

~d(JQ_ Li).~
Russell W. Hinton State Auditor

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

LIBERTY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6891-93-02 6891-94-02 6891-96-01 FS-6891-97-01

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

CORRECTIVE ACTION/RESPONSES

EMPLOYEE COMPENSATION Retroactive Salary Payments and Related Costs Amount: $67,733.52 Finding Control Number: 6891-94-02

Because of confusion between multiple acceptable methodologies for calculating annual salaries of extended year personnel, payment was made to remedy what was perceived to be an error in selecting the appropriate method. This was done much as if an error was made in calculating an employee's salary and it was later corrected. This confusion is acknowledged in the audit finding. Given the confusion it seems no error was made on the part ofthe Board of Education, and they should not be required to expend the funds that would be required to secure the reimbursement. This cost may exceed the disputed amount.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6891-97-01

The Board of Education has decided not to pursue the recording of general fixed assets on the financial statement at this time due to the prohibitive cost.

SECTION IV FINDINGS AND QUESTIONED COSTS

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998

I SUMMARY OF AUDITOR'S RESULTS

we 1.

ofReport Issued on the Financial Statements

The auditor's opinion on the Liberty 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 Liberty 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 material wealmess.

3. Noncompliance Material to the Financial Statements
The audit of the Liberty County Board of Education 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 Liberty County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
s. me of Report Issued on Compliance for Mwor Prowm,s
The auditor's opinion on the Liberty 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 ,SlO(a) ofOMB Circular A-133
The Liberty County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Mruor Program Federal award audited as a major program is as follows: 84.041 Impact Aid

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

9. Low Risk Auditee
The Liberty County Board ofEducation was audited as a low risk auditee based on a waiver granted
by the U. S. Department of Education.

- 1-

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
IT 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-6891-98-01 The Liberty 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 p111pose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. Management's Response: The Board of Education has decided not to pursue the recording of general fixed assets on the financial statement at this time due to the prohibitive cost.
Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-2-