Audit report, Liberty County Board of Education, Hinesville, Georgia, year ended June 30, 1999

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AUDITREi>ORT LIBERTY COUNTY BOARD OF EDUCATION
~.S~LE,.OEQRGIA .. YEAR ENDED JUNE 30, 1999
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

LIBERTYCOUN[YBOARDOFEDUCATION -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

I

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

I

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

I

(NON-GAAP BASIS)

I

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

i
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, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

0
0

1 SCHEDULE OF EXPENDI1URES OF FEDERAL AWARDS

22

"I '

2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

24 25

"J

4 SCHEDULE OF EXPENDI1URES

0

LOTTERY PROGRAMS

26

ANALYSIS OF MINIMUM EXPENDITIJRE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

s

OVERALL

27

6

BYPROGRAM

28

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

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 8, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe 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, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe 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 Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and
perform the audit to obtpn 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, 1999, nor could we s~tisfy 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:

99ARL-13

The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department ofEducation for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Liberty County Board ofEducation as ofJune 30, 1999, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated May 8, 2000, 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.
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 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, .Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the 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 of the 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.
99ARL-13

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. ,.:

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 Geo~gia Annotated Section 50-6-24.
Respectfully submitted,
r ~...a2._LU.~
Russell W. Hinton State Auditor
RWH:jb 99ARL-13

LIBERTY COUNrY BOARD OF EDUCATION

LIBERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30. 1999

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

GENERAL FUND

GOVERNMENTAL SPECIAL REVENUE FUND

$ 14,340,934.91 $

570,906.59

724,752.98

732,410.69

114,030.41 24,098.74

$ 15,065,687.89 $ 1,441,446.43

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

$

7,975.23 $

211,345.TT

13,284.00

460,282.10

16,374.31

1,051.25

$

37,633.54 $

672,679.12

$

114,030.41

24,098.74

$ 15,028,054.35 $ 15,028,054.35 $

630,638.16 768,767.31

Total Liabilities and Fund Equity

$ 15,065,687.89 $

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

1,441,446.43

EXHIBIT "A

FUND TYPES CAPITAL
PROJECTS FUND
$ 4,841,099.91 $
1,910,470.90

DEBT SERVICE
FUND

TOTALS

{Memorandum Onl~}

JUNE 30, 1999

JUNE 30, 1998

52,197.29 $ 19,805,138.70 $ 11,770,939.97

121.65

3,367,756.22

1,606, 152.31

114,030.41 24,098.74

119,485.22 20,289.45

$

6,751,570.81 $

52,318.94 $ 23,311,024.07 $ 13,516,866.95

$

283,286.13

297,298.95

$

580,585.08

$

219,321.00 $

544,317.54

473,566.10

469,174.74

17,425.56

20,304.39

283,286.13

297,298.95

$ 1,290,897.74 $ 1,033,796.67

$

342,829.86

4,924,601.94

903,553.93 $

$ 6,170,985.73 $

$

42,914.30

$
52,318.94 52,318.94 $

114,030.41 24,098.74 342,829.86 4,924,601.94
16,614,565.38
22,020,126.33 $

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

$ 6,751,570.81 $

52,318.94 $ 23,311,024.07 $ 13,516,866.95 -3-

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

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
FUND BALANCE JUNE 30

GENERAL FUND

. , SPECIAL REVENUE FUND

$ 39,144,200.87 $ 7,359,449.32 10,278,310.07 1,391,843.14
$ 58,173,803.40 $

1,442,973.41 4,923,658.14
1,057,401.03
7,424,032.58

$ 34,534,113.73 $
2,378,064.67 1,145,066.33 1,248,694.99
534,874.33 3,738,655.94
149,118.81 3,956,025.33 2,264,107.27
333,883.51 153,432.93

2,808,513.96
225,437.25 183,497.22
1,906.95 87,758.23 29,992.24
33,600.29 21,992.80
225,029.30 3,757,912.73

$ 50.436.037.84 $ $ 7.737.765.56 $

7,375.640.97 48.391.61

$

$

-500,396.30

$

-500,396.30 $

$ 7,237,369.26 $ 7,790,685.09

396.30
396.30
48,787.91 721,624.92
-5,454.81 3,809.29 .

s.,....__ $ 1s1028,054.35

1_68.,1.7_6_1_.3_1

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 Onl:t:

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 1,815,464.42
4,293,161.95 $ 220,186.05
$ 6,328,812.42 $

$ 860.92
860.92 $

42,402,638.70 $ 12,283,107.46 14,572,332.94 2,669,430.22
71,927,509.32 $

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

$

$ 4,577,128.94

$ 4,577.128.94 $

$

1.751 1683.48 $

$

500,000.00

$

500.000.00

$ 2,251,683.48 $ 3,919,302.25

$ 6,170,985.73 $

0.00 $
0.00 $ 860.92 $

37,342,627.69 $
2,603,501.92 1,328,563.55 1,250,601.94
622,632.56 3,768,648.18
149,118.81 3,989,625.62 2,286,100.07
333,883.51 378,462.23 3,757,912.73 4,577,128.94
62.388.807.75 $
9.538.701.57 $

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
618621692.24

$

500,396.30 $

-500.396.30

$

0.00 $

12,338.69 -12.338.69
0.00

860.92 $ 51,458.02

9,538,701.57 $ 12,483,070.28

6,862,692.24 5,603,037.89

-5,454.81 31809.29

17,023.78 316.37

52,318.94 $ 22,020,126.33 $ 12,483,070.28

-5-

LIBERTY COUNTY BOARD OF EDUCATIQN 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, 1999

EXHIBITc

GENERAL FUND

ACTUAL .

(BUDGET

BUDGET

BASIS!

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 38,086,243.00 $ 39,144,200.87 3,739,266.00 7,359,449.32 7,840,838.00 ' 10,278,310.07 300,000.00 1,3911843.14

Total Revenues

$ 4919661347.00 $ 5811731803.40

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

$ 34,74;3,081.00 $ 34,534,11~.73

2,174,727.00 1,141,459.00 ' 1,331,713.00
642,088.00 3,699,359.00 , 148,650.00
6,346,930.00 2,603,085.00
333,248.00 248,388.00

2,378,064.67 1,145,066.33 1,248,694.99
534,874.33 3,738,655.94
149,118.81 3,956,025.33 2,264,107.27
333,883.51 153,432.93

Total Expenditures

$ 531412z728.00 $ 5014361037.84

Excess of Revenues over (under) Expenditures

$ -314461381.00 $ 7z737z765.56

OTHER EINANC!t::Uz SOURCES (USES}
Other Sources Other Uses

$ -5001000.00 . $ -5001396.30

Total Other Financing Sources (Uses)

$ -5001000.00 $ -5001396.30

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -3,946,381.00 $ 7,237,369.26

FUND BALANCE JUL.Y: 1, HM!!!
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

7,557,789.95 7,790,685.09

lm FUNQ BAbAt:fCE JUNE 30,

$ 316111408.95 $ 1510281054.35

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS!

$ 1,349,418.20 $ 1,442,973.41 4,442,539.43 4,923,658.14
1z7091851.00 110571401.03
$ 715011808.63 $ 7,4241032.58

$ 3,184,928.00 $ 2,808,513.96
'.

272,120.67 131,055.00
139,269.95 22,847.00

225,437.25 183,497.22
1,906.95 . 87,758.23
29,992.24

30,000.00 6,300.01

33,600.29 21,992.80

130,926.00 315481648.00

225,029.30 3z7571912.73

$ 714661094.63 $ 713751640.97

$

35z714.00 $

481391.61

.. $

396.30

$

396.30

$

35,714.00 $

48,787.91

704,543.01

721,624.92

999.69

-5,454.81 31809.29

$ 741,256.70 $ 768i767,31

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. 1999

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 lias 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 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.
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 pwpose financial statements.
The general pwpose financial statements account for all State, Federai 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 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 pwposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.

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.LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be u~ed for the acquisition or construction ofmajor capital facilities.
..
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the p_ayment 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 using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available).
"Measurable" means the amount ofthe transaction can be determined and "available" means collectible within
the current period or soon enough thereafte.r to be used to pay liabilities ofthe current period. Those ~venues
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 inclll,Ted.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1999, a sub.stantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and A~gust 1999, had not been made. Payments for these two months were mad~ and recorded as exp~ditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999; Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year
ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when
. -8-,

..,1

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 wh~ the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality.. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget-is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions'. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
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 of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on December 12, 1998 (levy date). Taxes were due on February 26, 1999. The lien date for property taxes was January 1, 1998. Taxes collected within the-current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Liberty County Tax Commissioner bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board..
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LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

'. . JUNE 30~ 1999

Note I: SUMMARY OF SIGNIFICANTACCOUNTING POLICIES .

The tax millage rate levied for the 1998 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

17.80 mills . ,

.. SALES TAXES .

Special Purpose Local Option Sales Tax is to be used for capital outlay for ~ucational purposes. Special

Purpose Local Option Sales Tax revenue duririg the fiscalyear amounted to $4,293,161.95.and was recorded

.in the Capital Projects Fund. The State will tenninatecollection.ofthis tax once~ additional $16,04~!214.07

has been collected or on June 30, 2002, whichever occurs first.

,:

INVENTORIES .

FOOD INVENTORIES .

Inventories of donated food commoditiesusedin the preparation of meals are reported on the Combined

Balance Sheet at their_ Federally assigned value. Purchased foods inventories are reported on .the Co~bined

Balance Sheet at ,cost (first-~ first-out). Donated food commodities ~ ' 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

~ese amounts do not constitute "available spendable resources" even though they are a component of net

current assets.

... ~

,

(

,-.: . ,d, ....:.

, ,. '~. _ . .. ,



INTERFUNDTRANSACTIONS >,. t:

~-.1

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.



. ,,.



,.. , .... _ .,~L

.. Operating transfers are recorded for all interfund transactions other than reimbursements.. :: .

MEMORANDUM ONLY -TOTAL COLUMNS.

Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that

. they are presented only to facilitate financial analysis.. Data iii these columns donot present financial position

or results of operations in conformity with generally accepted accounting principl~s. Neither are such data

. comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

. /-

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.

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- - ~ . : ~ { ...... \ ; . , ' : . , ~ .

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LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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 ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for dq,osits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, 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 ofindebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United Statei; government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage Association, and th~ Federal National Mortgage .Association.
CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $24,983,183.92. The amounts of the total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
- 11 -

'. LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

. NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

_ JUNE 30: 1999

Note 2: DEPOSITS

Category 2 - Cash collateralized with securities held by the pledgii)g financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but
. not in the Board's name.)

The Board's deposits are classified by risk category at June 30, -1999, as follows:

Risk Category

Bank Balance

1

$ 200,000.00

2

23,145,989;47

3

1,637,194.45

Total

, , $24.983.183,92

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

.' ~ .NoteA: 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 ofloss 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. 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 th.e.se risks in the past three years.

The Board is self-insured with regard to unemployment c_ompensation claims. The Board accounts for claims

within the same fund that the employee's salary and benefits were paid. Claims ~ 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.

.

,

. .:.12-

LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 4: RISK MANAGEMENT

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 of Year
Liability

1998

$

Q,QQ $ ~l.f!25,5Z $ 41,f!25,5Z $

Q,QQ

1999

$

Q,QQ $

2.~,QQ $

2.~66,QQ $

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$621,798.00 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$460,065.96

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$13,404.04

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$148,328.00

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the

Board as of June 30, 1999, together with funding available:



-13 -

. LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 6: SIGNIFICANT COMMITMENTS

Project

Unearned Executed
Contracts

Funding Available
From State

99-689-085 98G-98S-689-058 Bradwell Institute HVAC Renovation

$ 279,401.49 4,526,089.35
118,863.25

$4,917,078.00 1,421,295.58

$ 4.924.354,09 $ 6.338.373,58

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

Note 7: 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 finan~ial.position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general p_urpose financial statein~ts as described below.

The Board is a defendant in a wrongful death suit. The plaintiffs are requesting 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 p~sently determinaple.
. ..-~
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

. members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate
stand alone financial audit report and acopy 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% oftheir gross
earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS

-14-

. LIBERTY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE-FINANCIAL STATEMENTS

. JUNE 30, 1999

Note 8: RETIREMENT PLANS

Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage
Contributed

Required
Contribution

1999 1998 1997

100% 100% 100%

$ 3,985,559.16 $ 3,545,085.87 $ 3,384,302.90

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

LIBERTY COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 1999

EXHIBITE

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 939,298.32 $ . 121,963.45

FEDERAL PROGRAMS

TOTALS JUNE 30, 1999 JUNE 301 1998

., $ 1,061,261.77 $ 931,601.71

34,936.86

3,528.50 $ 693,945.33

732,410.69

393,760.23

.. 114,030.41 24,098.74

114,030.41 24,098.74

119,485.22 20,289.45

$ 1,112,364.33 $ 125,491.95 $ 693,945.33 $ 1,931,801.61 $ 1,465,136.61

LIABILII(ES AND FUNQ EQUITY

LIABILITIES

Cash Overdraft

Accounts Payable

$

Salaries Payable

Expired Grant Balances Payable

Total Uabllltles

$

. FUNQ EQUITY

Fund Balances

Reserved

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Undesignated

Total Fund Equity

$

141,945.78 $ 201,651.24 343,597.02 $
114,030.41 24,098.74 630,638.16 $ 768,767.31 $

$ 25,685.55 99,333.52
472.88 125,491.95 $
0.00 $ 0.00 $

490,355.18 $ 43,714.44 159,297.34 578.37

490,355.18 $ 211,345.77 460,282.10
1,051.25

693,945.33 $ 1,163,034.30 $

$
0.00 0.00 $

114,030.41 $ 24,098.74
630,638.16
768,767.31 $

108,682.33 155,376.22 462,963.54 16,489.60 743,511.69
119,485.22 20,289.45
581,850.25 721,624.92

Total Uabllltles and Fund Equity $ 1,112.364.33 $ 125.491.95 $ 693,945.33 $ 1,931.801.61 $ 1,465,136.61

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
VEAR ENDED JUNE 30, 1999

EXHIBIT "F"

REVENUES

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 301 1999 JUNE 3011998

State Funds Federal Funds Other Funds
Total Revenues

$ 292,794.00 $ 1,150,179.41

$

2,456,505.61

$ 2,467, 152.53

1,0571401.03

1,442,973.41 $ 4,923,658.14 110511401.03

1,529,457.60 4,676,298.97
9811803.28

$ 3,806?00.64 $ 1,1501179.41 $ 2,467I152.53 $ 714241032.58 $ 711871559.85

EXPENDITURES

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

$ 1,040,130.83 $ 1,768,383.13 $ 2,808,513.96 $ 2,836,448.53

$ 3.757.912.73

25,690.56 4,876.12
200.04 21,443.42 31,614.53 13,990.90 12,233.01

199,746.69 178,621.10
1,906.95 87,558.19
8,548.82 1,985.76 8,001.90 212,796.29

225,437.25 183,497.22
1,906.95 87,758.23 29,992.24 33,600.29 21,992.80 225,029.30
3.757.912.73

214,2TT.84 201,382.55
110,615.10 23,368.36 37,207.42 18,023.51 79,741.36 31532.606.54

Total Expenditures Excess of Revenues over (under) Expenditures

$ 3.757.912.73 $ 111501119.41 $ 21467.548.83 $ 713751640.97 $ 110531611 .21

$ 48,787.91 $

0.00 $

-396.30 $ 48,391.61 $ 133,888.64

OTHER FINANCIN~ SO!,,!RCES

Operating Transfers In

396.30

396.30

121338.69

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

48,787.91 $

0.00 $

0.00 $

48,787.91 $ 146,227.33.

FUND BALANCE JULY 1

721,624.92

0.00

0.00

721,624.92

558,057.44

Food Inventory - Net Change In Period Donated Commodities Purchased Food

-5,454.81 31809.29

-5,454.81 31809.29

17,023.78 316.37

f !.!ND BALANCE J!.!NE 3Q

$ 768i767.31 $

0.00 $

0.00 $ 768i767.31 $ 721,624.92

See notes to the general purpose financial statements.

-17-

LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1999

1' _.
ASSETS Cash and Cash Equi.valents . Accounts Receivable

GEORGIA STATE

FINANCING AND

INVESTMENT

REGULAR

COMMISSION

:- --- '

$

903,553.93 $

342,8~9.86

Total Assets

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Contracts Payable Retainages Payable

Tota.I Liabilities

FUND EQUITY

Fund Balances

Reserved

,

For State Capital Outlay Projects

For SPLOST Projects-

. Unreserved

Undesignated

Total Fund Equity

$

903,553.93 $ ====3=42=,8=29=.86-

$

342,829.86

$ _ _,.;:;.9.=..;03:;.,5~5;.;::;3=.9.;:;;.3

', 0.00

s

s ______ 903,553.93

34__2_._;_8_2_9___.a__6_

Total Liabilities and Fund Equity

$

903,553.93 $ --===34=2=,8=2_9_.8=6

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

4,296,678.23

7371309.21 $

LOTTERY PROJECT

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$ 5,543,062.02 $ 3;248,835.75

11173,161.69

1,910,470.90

670,466.50

$

5,033,987.44 $

1,1731161.69 $

s 7 A53 1532.92

3,919,302.25

$ $ _ _ _1_09....,,3_8__5__.5__0__

$

109,385.50 $

701,962.11 $ 283,286.13 187,913.45
1,173,161.69 $

701,962.11 283,286.13 297,298.95
1,282,547.19

$

4,924,601.94

0.00 $

$

4,924,601.94 $

$
0.00 0.00 $

342,829.86 $ 4,924,601.94
903,553.93
6,170,985.73 $

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

$

5,033,987.44 $

1,173,161.69 $ 7,453,532.92 $

3,919,302.25

-19-

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

REVENUES

State Funds

.. -

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

EUND BALANCE JUb):'. 1

FUND BALANCE JUNE 30

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00

$

33,053.69

$

0.00, $

33,053.69

$ .$ ... :$

$ 0.00
0.00 $
0.00 $

236,565.83
236,565.83 -203,512.14

$

500,000.00

$

500,000.00

$

500,000.00 $

-203,512.14

403,553.93

546,342.00

$

903,553.93 $ =-=34==2'=82=9=.8=6

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

EXHIBITH"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 1,815,464.42 $ 1,815,464.42

$ 4,293,161.95

4,293,161.95 $ 3,663,623.98

165,374.14

21,758.22

220,186.05

66,186.44

$

4,458,536.09 $

1,837,222.64 $

6,328,812.42 $

3,729,810.42

$

236,565.83 $

$ 2,143,700.47 $ 2,196,862.64

4,340,563.11

$

2,143,700.47 $

2,196,862.64 $

s 4 , 5 n , 128.94

2,533.50 211,528.60
214,062.10

$ 2,314,835.62 $

-359,640.00 $

1,751,683.48 $

3,515,748.32

$

500,000.00 $

918,799.10

-918,799.10

$

500,000.00 $

0.00

$ 2,314,835.62 $ 2,609,766.32

-359,640.00 $ 359,640.00

2,251,683.48 $ 3,919,302.25

3,515,748.32 403,553.93

$ 4,924,601.94 $ .

0.00 $ 6,170,985.73 $ 3,919,302.25

-21 -

.LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

SCHEDULE 1

FUNDING AGENCY eBOGRAM/GRANT

CFDA NUMBER

PASS-
THROUGH ENTITY ID NUMBER

FEDERAL REVENUE IN PERIOD.

; -,J
EXPENDITURES 'iNPERIOD,

Agriculture, U. S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

School Breakfast Program

1999 Grant

.',:

National School Lunch Program

1999 Grant

Total Child Nutrition Cluster

10.553 10.555

. ~-~ . . -~ ' ' NIA $

499,969.03

NIA

116891489.80 $

s ..... $ ..2,189,458.83

(2) 314901865.95 (3) 3,490,865.95

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550
(.,
,

NIA-

Total U. S. Department of Agriculture

Education, U. S. Department of

,.,
.,

.

Special Education Cluster

Pass-Through From Georgia Department of Education

Individuals with Disabilities Education Ad

Part B - Special Education

Flow Through

1999 Grant

Preschool Grant

1999 Grant

..-...... - ..
. 1'

84.027

NIA

84.173

NIA

Total Special Education Cluster

& .... ,

Other Programs

Direct

Impact Aid 1993 Grant 1994 Grant 1995 Grant 1996 Grant 1997 Grant 1998 Grant 1999 Grant

84.041

84.041

84.041

84.041

84.041

84.041

84.041,

a-.

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Ad

Title I

Grants ID Local Educational Agencies 1999Grant

84.010

NIA

Title II

Eisenhower Professional Development 1998 Grant 1999 Grant

84.281

NIA

84.281

NIA

Title VI

Innovative Education Program Strategies 1999 Grant

84.298

NIA

Safe and Drug-Free Schools 1999 Grant

84.186

NIA

267,046.78

2671046.78

$ 214561505.61 $ 3.7571912.73
-~

$

281,768.18 $

281,768.18

521300.13

521300.13

$

s 334,068.31

334,068.31

'. .... ~
,"';.1_ t,,
7,273.81

-:.-
(5)

. 3,149.80
~ :. 1,913.00

. (5) . .: (5)..:. '

_1,626.00

(5)

1,382.00

(5)

4,969.00

(5)

7,252,820.85

(5) . 'l, ,<, I

1,802,736.19
1,867.07 29,432.31
64,208.00 56,125.47

1,802,736.19
2,263.37 (3) 29,432.31.
64,208.00 56,125.47

--22-

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

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

Education, U. S. Department of

Other Programs

.

Pass-Through From Georgia Department of Education

Vocational Education - Basic Grants to States

High School Program

Basic Grant

1999 Grant

Tech-Prep Education

1999 Grant

Total U. S. Department of Education

Labor, U. S. Department of Pass-Through From City of Savannah Job Training Partnership Act 20-99-00-1-1-11

OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Oired Department of the Army R.O.T.C. Program Troops To Teachers

Total U. S. Department of Defense

CFDA NUMBER
84.048 84.243
17.250

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$

79,465.95 $

79,465.95

NIA

2,150.42

$ 9,643,188.18 $ 2,370,450.02

NIA

$

97,098.81 $ _ _...;a9.;_i7,=09=8=.8-'-1

$

45,479.21

(4)

40,835.65

(4)

$

86,314.86

Total Federal Financial Assistance

$ 121283,107.46 $

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 School Breakfast Program were not maintained separately and are Included In the 1999 National School Lunch Program.
(3) Expenditures for this program Include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.
r> Major Programs are Identified by an asterisk In front of the CFDA number.

The Board did not provide Federal Assistance to any Subreciplent

The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Liberty County Board of Education and Is presented on the modified accrual basis of accounting which Is the same basis of accounting used In the presentation of the general purpose financial statements.

612251461.56

See notes to the general purpose financial statements.

-23-

uaeRTY ~Q!.!NTY aQARQ QE eD!.!Q6IIQt:I
SCHED!.!bE QE SIA!e ReYeNU!;
)'EAf3 Et:jQ!;D JUN!; 30. 1999

SCHEDULE "2"

AGENCY/FUNDING
'I
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 f" Bus Replacement Limited English Speaking Middle School lnce_ntive Program Special lnstruciional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship 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 Year 2000 ProJed Funding Lottery Programs Assistive Technology Computers In the Classroom Exceptional Growth-Capital Outlay
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Ascal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Reading First Program
OTHER Office of the Govemor Children and Youth Coordinating Council Synergy After School Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

21,849,610.00 2,890,452.00 976,284.00 954,495.00 277,200.00 5,95~.711.00
917,056.00 208,606.00
25,163.00 823,005.00 1,005,222.00 197,709.00, 280,557.00
92,697.00 86,527.00 -2,569,378.00 3,948,284.00
$ 13,631.00
129,500.00 1,074.27
46,655.85 499.08
460,065.96 13,608.00
224,019.00 14,948.92 8,218.50 13,404.04 34,521.54
148,328.00

s
'./
292,794.00

6,687.00 218,462.09
$

1,815,464.42

925,030.32

89,171.61

23,355.10

TOTAL
21,849,610.00 . 2,890,452.00 , 976,284.00 ' , 954,495.00
277,200.00 5,959,711.00
917,056.00 208,606.00
25,163.00 823,005.00 1,005,222.00 197,709.00 280,557.00
92,697.00 86,527.00 -2,569,378.00 3,948,284.00 ,_ 292,794.00 13,631.00
129,500.00 . 1,074.27 46,655.85
499.08 460,065.96
13,608.00 224,019.00
14,948.92 8,218.50 13,404.04 34,521.54
- s,681.00 218,462.09 1,815,464.42
925,030.32
148,328.00
89,171.61
23,355.10

$ 39,144,200.87 $ 1,442,973.41 $ 1,815,464.42 $ 42,402,638.70

See notes to the general purpose financial statements.

-24-

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

SCHEDULE 3

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, Snelson-Golden, Liberty County High School and Bradwell Institute
Paving at Bradwell Institute
New Addition to Liberty County High School
Construction of Storage B~ildings at Taylor's Creek, Frank Long, Snelson-Golden and Lewis Frasier 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 COSTS(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

1,300,000.00 2,196,862.64 $
236,565.83

2,033.50 10,783.60

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

183,670.85

117,985.00 364,914.52 1n,130.10

201,245.00

$

24,000,000.00 $

35,247,684.00. $

(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 ~ these projects may Include sales tax proceeds, state, local property taxes, and/or other funds over the llfe of the project.

See notes to the general purpose financial statements.

25

s ____ 4,sn.12s.94

21_4.,.os.2...1..0..

LIBERTY COUNTY BOARD OF EDUCATION . . SCHEDULE Of EXPENDITURES
LOTTERY PROGRAMS
YEAR ENDED JUNE 30, 1999

EXPENDITURES

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

TOTAL

Current

Instruction

$

S1,1pport Services

'.

Pupil Services ...

Improvement of Instructional Services

General Administration

School Administration

Maintenance and Operation of Plant

Student Transportation Services

Other Support Services

6,687.00 $

218,462.09 $

814,981.74 $ 1,040,130.83

25,690.~6 4,876.12 200.04,
21,443.42 31,614.53 13,990.90 12,233.01

25,690.56 4,876.12 ~00.04
21,443.42 31,614._53 13,990.90 12,233.01

Total Expenditures

, . .

$,,...,

6,687.00 $

s 218,462.09 $ _ _ _....9._25_.o_a_o_.a_2 \1so.119.41

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

$ 876,421.55
6,687.00 218,462.09
48,608.n
~
$ 1,150.179.41

See notes to the general purpose financial statements.

-26-

LIBERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

SCHEDULE "5"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

2618941055.00 $

921,945.39

$

30,227,357.38

2,2031111.10 $ _ _1__,9_3_9_,5__5_0._00_

$

32,430,469.08

-273,432.02 $ _ _3_2.._1,_57....,,0_3_7_.0_6

$

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

See notes to the general purpose financial statements. - 27 -

. LIBERTY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

. GENEB& AND CAREER EDUCATION PROGRAMS
r> Kindergarten Grades 1 3 r>
Sub-Total.: K-3
r) Grades 4 5
Grades 6 - 8 (*)
Grades 9 - 12 (*)
High School Laboratories (*)
Vocational Education Laboratories (*)
Total General and Career Education Programs
SPECI&, EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*)
Sub-Total Regular
Category VI (Gifted) (*)
Total Special Education Programs
R!;MEDI&, EQUCATION PROGRAM C) Total Fourteen Weighted Programs
MEQIA CENTER PROGRAMS Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ..!!..

ORIGINAL

MID-TERM

$ 2,490,907.00

$ 2,241,816.30 $

610531094.oo

5,447,784.60

$ 8,544,001.00 90 $ 7,689,600.90 $

2,TT3,241.00 90

2,495,916.90

4,893,288.00 90

4,403,959.20

3,362,829.00 90

3,026,546.10

1,055,968.00 90

950,371.20

1122oi283.oo 90

110981254.70

$ 2118491610.00

$ 1916641649.00 $

0.00 0.00
2231214.00 2231214.00

$ 2,339,745.00

$ 2,105,TT0.50 $

0.00

$ 2,339,745.00 90 $ 2,105,TT0.50 $.

550.707.00 90

4951636.30

$ 218901452.00

$ 21601 1406.80 $

$

976i284.00 90 $

878,655.60 $

$ 25.7161346.00

$ 231144.711.40 $

0.00
0.00 0.00 223i214.00

$

742,062.00 90 $

667,855.80 $

0.00

2121433.00 100

212.433.00

$

954A95.oo

$

880i288.80 $

0.00

Total Fourteen Weighted and Media Center Programs
STAFFQ~LQPMENTPROGRAMS
Cost or Instruction
Professional Development

$ 26,670,841.00

$

87,526.00

1891674.00

$ 24,025,000.20 $

223,214.00

$

87,526.00 $

189.674.00

.
0.00 0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

2TT,200.00 100 $

m.200.00 s

0.00

. -. 28 -

SCHEDULE"6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 2,241,816.30 $ 2,285,462.36 $

82,676.45 $ 2,368,138.81

5,447?84.60

519791317.03

2561803.44

61236, 120.47

$ 7,689,600.90 $ 8,264,779.39 $

339,479.89 $ 8,604,259.28 $

0.00

2,495,916.90

3,497,733.56

143,439.64

3,641,173.20

0.00

4,403,959.20

5,316,164.71

446,745.91

5,762,910.62

0.00

3,026,546.10

4,515,022.91

604,526.69

5,119,549.60

0.00

950,371.20

948,084.24

29,968.82

978,053.06

0.00

11321,468.70

115271291.71

1711123.40

116981415.11

0.00

$ 19,887,863.00 $ 24,0691076.52 $ U35284.35 $ 251804,360.87

$ 2,105,770.50

$

219,325.38 $

843,719.85

.2,334,280.94

384,880.45

91367.82

3,835.42 $ 6,088.59 25,901.03 3,300.46
789.45

223,160.80 849,808.44 2,360, 181.97 388,180.91
10,157.27

$ 2,105,770.50 $ 3,791,574.44 $

s 39,914.95

3,831,489.39

0.00

4951636.30

5651462.26

26232.50

5911694.76

0.00

s $ 216011406.80

s 413571036.70

s . 861147.45

41423,184.15

$

s 8781655.60

8361878.62 $

s 1381118.42

9741997.04

0.00

s $ 23,3671925.40 $ 2912621991.84 $ 1,9391550.22

31,202,542.06

s

s 667,855.80

964,365.54

s

964,365.54

0.00

2121433.00

s

263,561.48

2631561.48

0.00

$

8801288.80 $

s 964,365.54

s 263,561.48

1:rp,927.02

s s 24~48.214.20

30,227,357.38 S 2.i23.111.70 S 3214301469.08 $

0.00

$

87,526.00

1891674.00

, ___2_11-12..0.0...0..0.

$

222,521.42 $

222,521.42

711049.39

711049.39

s

293,570.81 $

293 570.81 s_ _ _ _ _ _o_.oo_ 1

- 29 -

SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 8, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Liberty 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 ofLiberty County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated May 8, 2000. 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 paragrap~ 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 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, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as

inventories through alternative procedures.



Compliance

As part of obtaining reasonab_le assurance about whether Liberty County Board of Education's financial statements are free ofmaterial misstatement, w~ performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those .provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results
of our tests disclosed no instances of noncompliance that are tequired to be reported under Government Auditing Standards.

99YB-40 ...

'

Internal Control Over Financial Reporting
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 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 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 de$cribed in the accompanying Schedule ofFindings and Questioned Costs as item FS-6891-99-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe Liberty County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
w.~
Russell W. Hinton State Auditor
RWH:jb 99YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 8, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Liberty County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MNOR PROGRAM AND INTERNAL CONTROL OVER 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 its major Federal prognu for the year ended June 30, 1999. Liberty County Board of Education's major Federal program is identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major Federal program is the responsibility ofLiberty County Board ofEducation'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 Auditing Standards, issued by the
Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Pro.fit 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 e:xamining, 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 ofEducation's compliance with those requirements.

99SA-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 its major Federal program for the year ended June 30,

1999.



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 of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.

This report is intended solely for the information and use of management,.metnbers of the Liberty 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,
~~~
Russell W. Hinton State Auditor

RWH:jb 99SA-10

SECTION ill 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, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6891-94-02 FS-6891-97-01 FS-6891-98-01

Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPO~SES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6891-98-01

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

SECTIONIV FINDINGS AND QUESTIONED COSTS

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR' ENDED JUNE 30, 1999
I SUMMARY OF AUDITOR'S RESULTS
1. Twe ofRe.port 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. Re.portable 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 a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Liberty County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major ProlWlJlls
The audit report for the Liberty County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Iype ofReport Issuedon Compliance for Major Programs 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 Findimis Required to be Reported by Section ,Sto(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. Major Program
Federal award audited as a major program is as follows: 84.041 Impact Aid
8. Iype "A" Program Dollar Threshold
The dollar threshold for type "A" programs was $372;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 ofEducation.
- 1-

LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30,' 1999

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS - Uncollateralized Deposits Nc;mmaterial N:oncompliance Finding Control Number: FS-6891-99-01

At Jun~ 30, 1999, the_ Liberty County Board ofEducation failed to have its bank balances fully coliateralized as provided for by the Official Code ofGeorgia Annotated Section45-8-12 which states, in part, as follows:

"The collecting officer or officer holding public funds may not have on deposit at any time in any

depository for a time longer than ten days a sum of money belonging to the public body when such

depository h~ not given bond to the public body as set forth in this code section...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 of the amount of deposit

insurance".





This noncompliance occurred because ofmanagement's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement procedures to monitor the collateralization of bank balances to ensure compliance at all times with State laws governing deposits and investments.

Management's Response:

.

'

The Board of Education had contacted the financial institution involved to remind them that appropriate

collateralization was required. We will again contact the financial institution involved and insist that they

provide appropriate collateral for all Board deposits in the future.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group. Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6891-99-02

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 purpose financial statements ofthe Board being incomplete and not in'accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide.for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board , and should include, but may not be limited to, date acquired,,acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.

-2-

LIBERTY COUNTY BOARD OF '.EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999 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-6891-99-02 Management's Response: We concur with this recommendation. The Board of Education is exploring the cost and staffing required to record general fixed assets on the financial statement.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-3-