Audit report, Long County Board of Education, Ludowici, Georgia, year ended June 30, 1998

AUDIT REPORT LONG COUNTY BOARD OF EDUCATION
LUDOWICI, GEORGIA YEAR ENDED JUNE 30, 1998

LONG 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

EXIllBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

~ON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

21

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

28

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

29

3 SCHEDULE OF STATE REVENUE

31

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

32

LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

5 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

33

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

6

OVERALL

35

7

BY PROGRAM

36

SECTIONll
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 OMB CIRCULAR A-B3

SECTIONID 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 14,1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Long County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Long County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose fmancial statements are the responsibility of the Long County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the 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 fmancial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose fmancial 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.

98ARL-13B

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose fInancial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries
and the corresponding employer's cost ofrelated benefIts earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefIts were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 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 ofthese variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose fInancial statements of the matters referred to in the preceding paragraph, the general purpose fInancial statements referred to above present fairly, in all material respects, the financial position of the Long County Board of Education as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated May 14, 1999, on our consideration of the Long 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 of measurement 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 Long 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 Long County Board ofEducation does business are or will become year 2000 compliant.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements ofthe Long County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the fmancial schedules (Schedules 2 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-l33, Audits a/States, Local Governments, and Non-Profit Organizations. are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose fInancial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
98ARL-l3B

A copy of this report has been filed as apennanent 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,
~u).~ Russell W. Hinton State Auditor
RWH:gp 98ARL-13B

LONG COUNTY BOARD OF EDUCATION

LONG COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES ANp ACCOUNT GROUp JUNE 30 1998

~ Cash and Cash Equivalents
Inves1ments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

153,950.63 $

270,549.35 $

2,762,985.97

1,321,138.80

181,748.78

1,918,570.77

93,132.47

58,770.35

1,906.97

11,335.17 4,567.98

Total Assets

$ 1.568.221.90 $

526.991.63 $ 4,683:443.71

LIABILITJES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Peyable General Obligation Bonds Payable
Total Liabilities
FUNPEQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant BalanceslQuestioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outiay Projects Unreserved Undesignated
Total Fund Equity

$

1,321.00 $

21,268.25

86,558.72

4,690.15

$

137,028.00

7,213.00

$

1.321.00 $

112,517.12 $

144,241.00

$

78,449.98

$

1,566,900.90

$ 1,566,900.90 $

11,335.17 4,567.98 $
320,101.38
414474.51 $

3,621,548.96 822,655.75
95,000.00
4.539,202.71

Total Liabilities and Fund Equity

$

1,566,221.90 $

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

526,991.63 $

4,663,443.71

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only!

JUNE 30,1998

JUNE 30, 1997

$

286.046.83

$ 3,473.512,78 $

593.625.97

189.416.00

3,610,874,35

1,765,939.34

55,096.05

208,905,84

164,377,14

$

530,558.88

5.904,441.12

11,335.17 4,587.98
530,558.88
5,904,441.12

12,446.43 3,216.81
180,306.60
2,194.693.40

$

530,558.88 $

6.435,000.00 $ 13?44,216.12 $ 4,914,605.69

$

22,589.25 $

21,517.83

86,558.72

84,283.17

4,690.15

4,759.42

137,028.00

13,276.27

7,213.00

5,000.00

$

6,435.000.00

6.435.000.00

2.375,000.00

$

6,435.000.00 $ 6693.079.12 $ 2,503,836.69

$

530,558.88

0.00

$

530,558.88

$

78.449.98 $

2,307.61

530.558.88

180,306,60

643,39

11,335.17 4,587.98
3,621,546.96 822,655.75

12,446.43 3,216,81
388,563.53

1,982,002.28

1,823,284.63

$ 7,051,137.00 $ 2410769.00

$

530,558.88 $

6,435,000.00 $ 13,744.216.12 $ 4,914,605.69

-3-

LONG COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUNP BALANCES
ALL GOVERNMENTAL FUND TyPES YEAR ENDED JUNE 30 1998

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$

17,144.00

$ 6,252,524.07 $ 5,679,450.64

1,188,871.05

889,594.85

$

347,418.66

1,704,594.78

1,807,764.38

112,618.80

12,214.69

372,497.14

192,391.10

$

129,762.80 $

359,633.35 $ 9,518,487.04 $ 8,369,200.97

$

109,649.58

437,111.50 $

$

546,761.08 $

$

-416,998.28 $

$
55,000.00 118,875.00
740.00 174,615.00 $ 185,018.35 $

5,377,668.92 $
404,255.96 221,921.14 167,111.36 193,991.68 394,145.75 202,709.48 360,223,36 480,005.53 27,942.29 574,548.37 437,111.80
55,000.00 118,875.00
740.00
9,016250.34 $
502,236.70 $

4,555,806.91
190,333.20 208,092.72 141,795.60 155,726.34 341,304.87 105,020.97 349,575.93 534,559,41
12,940.74 554,156.17 362,431.13
45,000.00 120,427.80
750.00
7,677,821.49
691,379.48

$ $ 4,115,000.00
500,000.00 -142362.54 $ 4,472,637.46 $
$ 4,055,639.18 $ 483,563.53

22,871.39 $ 142,362.54 165,233.93 $

22,871.39
4,115,000.00 643,141.70 $ -643,141.70
4,137,871.39 $

300,770.84 -300,770.84
0.00

350,252.28 $ 180,306.80

4,640,108.09 $ 2,410,769.00

691,379.48 1,719,268.65

-1,111.26 1,371.17

13.18 107.69

$ 4,539,202.71 $

530,558.88 $ 7,051,137.00 $ 2,410,769.00

-5-

LONG COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-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

5,491,552.00 $ 40,000.00
1,287,227.00 40,000.00

5,825,649.34 84,730.66
1,357,178.12 138,611.31

Total Revenues

6,858,779,00 $ 7,406,167.43

EXPENDITURES

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

5,090,289.00 $ 4,750,914.53

247,117.00 198,364.00 162,011.00 146,877.00 353,340.00 92,800.00 428,317.00 515,444.00
22,500.00

230,620.83 191,362.82 165,856.78 151,201.17 377,365.05
93,059.90 360,223.36 477,565.26
15,063.68

Total Expendfiures

7,259,059.00 $ 6,813,233.38

Excess of Revenues over (under) Expendfiures

-400,280.00 $ 592,934.05

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

-500,000.00 $ -500.779.16

Total Other Finanang Sources (Uses)

$ -500,000.00 $ -500.779.16

Excess of Revenues and Other Finanang Sources over (under) Expenditures and Other Financing Uses

-900,280.00 $

82,154.89

FUND BALANCE JULY 1 1997

1,440,036.55

1,474,746.01

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

5,555,25

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

406,341.00 $

409,730.73

1,061,436.00

1,104,140.39

107,000.00

109,052.34

1,574,m.00 $ 1.622.923.46

$

798,744.00

25,127.00 29,291.00
1,960.00 45,058.00 16,700.00

626,754.39
173,635.13 30,558.32 1,254.58 42,790.51 16,780.70

948.00 13,905.00 577,822.00

2,440.27 12,878.61 574,548.37

$ 1,509,555.00 $ 1,461,640.88

$

65,222.00 $

141,282.58

$

779.16

779.16

$

65,222.00 $ 142,061'74

328,472.04

272,152.86

-54,261.13

-1,111.26 1,371.17

FUNP BALANCE JUNE 30 1998

$ 545.311.80 $ 1,566,900.90

$

339,432.91

414,474.51

The notes to the general purpose financial statements are an integral part of this statement. -7-

LONG COUNTY BOARD OF EDUCATION

EXlllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Long County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results 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, An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements, To 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 of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. F1;U1ds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
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 of Education and from the Federal government to accomplish specific educational objectives.
- 8-

LONG COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1998

Note I: 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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
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 (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (Le., when they become both measuI'lible 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 of these contracts were disbursed from the Georgia Department of Education
-9-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 Long County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year
- 10 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to
invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions ofthe State of Georgia.
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 Long County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on December 5, 1997 (levy date). Taxes were due on February 5, 1998. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Long County Tax Commissioner bills and collects the property taxes for the Board ofEducation and remits the balance of taxes collected to the Board.

- 11 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tax millage rates levied for the 1997 tax year (calendar year) for the Long County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

13.50 mills 2.30 mills

~mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $115,697.89 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $1,754,302.11 has been collected or on December 31, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for 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.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

- 12-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shal1 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 anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
- 13 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to.principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30,1998, the bank balances were $5,190,735.41. 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 collatera1ized 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 fmandal institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 1998, as follows:

Risk Category

Bank Balance

1

$ 476,192.95

2

4,714,542.46

3

0.00

Total

$ 5190 735 41

CATEGORIZATION OF INVESTMENTS At June 30, 1998, the carrying value ofthe Board's total investments was $2,610,874.35 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy of the State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1

- 14-

LONG COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 2: DEPOSITS AND INVESTMENTS
operates in a manner consistent with Rwe 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calcwated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist offunds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1998 was 29 days. The average investment duration for Fund 6 on June 30, 1998 was .96 years.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department of Agricwture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various.risks ofloss related to torts; theft of, damage to, and destruction ofassets; 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 errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

- 15 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4: RISK MANAGEMENT

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1997 1998

$

0.00 $

1.122.00 $

1.122.00 $

0.00

$

0.00 $

2.244.00 $

2.244.00 $

0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Superintendent All Employees

$ 20,000.00 $ 20,000.00

Note 5: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1993 General Government - Series 1997

3.00% - 5.50% 4.00% - 5.25%

$ 2,320,000.00 4,115,000.00

$ 6 435 000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

- 16-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 1997

$ 2,375,000.00

Additions

4,115,000.00

Deductions Payments

55,000.00

Balance June 30, 1998

$ 643500000

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as
follows:

Fiscal Year Ended June 30

General Obligation
Bonds

1999 2000 2001 2002 2003 2004 - 2008 2009 - 2013 2014 - 2018

$ 466,324.17 464,807.50 483,937.50 496,840.00 508,717.50
2,686,477.50 2,759,632.50 2,887.507.50

Total Principal and Interest

$10754244 II

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$105,147.68 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of $80,430.68

- 17 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT tiD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 6: ON-BEHALF PAYMENTS

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$24,7l7.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 1998, together with funding available:

Uneamed Executed Contracts

Funding Available From State

99G/98S-69l-059

$ 48 489,00 $ I 329 038 00

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

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms, The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

IRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by state statute to contribute 5% oftheir gross earnings toTRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required

- 18 -

LONG COUNTY BOARD OF EDUCATION

EXIllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 9: RETIREMENT PLANS

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%

$ 516,023.18 $ 439,724.06 $ 392,763,97

- 19-

LONG COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET SPECIAL REVENUE FUND JUNE30 1998

EXHIBIT"E"

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

SCHOOL FOOD
SERVICES ~

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1998 JUNE 30, 1997

$ 170,278.45 $ 33,155.63 $ 67,115.27 $ 270,549.35 $ 328,539.03

181,748.78

181,748.78

4,482.03

4,237.00

50,051.32

58,nO.35

34,862.56

11,335.17 4,587.98

11,335.17 4,587.98

12,446.43 3,216.81

$ 372,432.41 $ 37,392.63 $ 117,166.59 $ 526,991.63 $ 379,064.83

LIABILITIES AND FUND EqUITY
~
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabililies
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodilies Purchased Food Unreserved Undesi9nated
Total Fund Equily

$ 5,631.82 $ 30,n6.06

8,531.87 $ 28,860.76

7,104.58 $ 26,921.90 4,690.15

$ 36,407.88 $ 37,392.63 $_=3,8-,7,1-6,.,6=1 $

$ 11,335.17 4,587.98
320,101.38 $
$ 338,024.53. $

$ 78,449.98 $

0.00 0.00 $

0.00 78.449.98 $

21,268.25 $ 86,558.72 4,690.15 112,517.12 $
78,449.98 $
11,335.17 4,587.98 320.101.38 414.474.51 $

19,989.38 82,183.17
4,759.42 106,911.97
2,307.61 843.38
12,446.43 3,216.81 253,538.82 272.152.86

Total Liabilities and Fund Equily

$ 372,432.41 $ 37,392.63 $ 117.166.59 $ 526,991.63 $ 379,064.83

See notes to the general purpose financial statements.

-20-

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANp CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1998

EXHIBIT"P

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media SelVices General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendilures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES
-E!:!!:!!L

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$ 42,476.00 $ 347,193.55 $ 20,061.18 $ 409,730.73 $

488,939.40

615,200.99 1,104,140.39

109,052.34

109,052.34

394,494.48 827,722.26 106.479.22

$ 640,467.74 $ 347,193.55 $ 635,262.17 $ 1,622,923.46 1,330,695.96

313,393.20 $ 313,361.19 $ 626,754.39 $ 567,155.46

$ 574,548.37

15,998.81
16,780.70 1,800.00

157,838.32 30,558.32
1,254.58 42,790.51
640.27 12,878.61

173,635.13 30,558.32
1,254.58 42,790.51 16,780.70
2,440.27 12,878.61 574,546.37

16,902.74 16,840.58
3,152.69 58,123.29
32,411.88 13,485.24
2,743.78 554,158.17
2,580.63

$ 574,548.37 $ 347,972.71 $ 559,119.80 $ 1,481,640.88 $ 1,285,532.46

$ 65,919.37 $

-779.16 $ 76,142.37 $ 141,282.58 $

65,163.50

$ 65,919.37 $ 269,845.25
-1,111.26
---1.lli:1L

779.16

779.16

770.84

0.00 $ 76,142.37 $

0.00

2,307.61

142,061.74 $ 272,152.86

65,934.34 206,097.65

-1,111.26 1,371.17

13.18 107.69

FUNP BALANCE JUNE 30

$~$

0.00 $ 78,449.98 $ 414,474.51 $ 272,152.88

See notes to the general purpose financial statements.

-21-

LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1998
See notes to the general purpose financial statements. -22 -

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

$

418,570.77

1,906.97

LOTTERY PROJECT

TOTALS

JUNE 30, 1998

JUNE 30, 1997

80,669.75 $ 2,797,216.71 $

95,000.00

500,000.00

1,918,570.77

400,345.26

1,906.97

70,040.71

$

420,477.74 $

580,669.75 $ 4,717,694.45 $

565,385.97

$

34,250.74

$

34,250.74 $

63,546.17

$

137,028.00

137,028.00

13,276.27

7,213.00

7,213.00

5,000.00

$

34,250.74 $

144,241.00 $

178,491.74 $

81,822.44

$ 3,621,546.96

$

386,227.00 $

436,428.75

822,655.75 $

388,563.53

0.00

0.00

95000.00

95000.00

$

386,227.00 $

436,428.75 $ 4,539,202.71 $

483,563.53

$

420,477.74 $

580,669.75 $ 4,717,694.45 $

565,385.97

-23-

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL pROJECTS FUND YEAR ENDED JUNE 30 1998

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSES)
Proceeds from General Obligation Bonds Par Value
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

BOND PROCEEDS

$

0.00 $

88,559.08

$

0.00 $

88,559.08

$

109,649.58

$

0.00

$

0.00 $

109,649.58

$

0.00 $

-21,090.50

$ 4,115,000.00 -472,362.54
$ 3,642,637.46

$

0.00 $ 3,621,546.96

95,000.00

0.00

$

95,000.00 $ 3,621,546.96

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

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOITERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$

17,144.00

23,698.54 $

$

40,842.54 $

$ 361.18
361.18 $

17,144.00 112,618.80 $
129,762.80 $

21,737.04 21,737.04

$

109,649.58

$

134,575.00

$

43,179.07

259,357.43

134,575.00 302,536.50 $

359,870.50

$

43,179.07 $

393,932.43 $

546,761.08 $

359,870.50

$

-2,336.53 $

-393,571.25 $

-416,998.28 $

-338,133.46

$ 4,115,000.00

$

830,000.00

830,000.00 $

300,000.00

-472,362.54

$

830,000.00 $ 4,472,637.46 $

300,000.00

$

-2,336.53 $

436,428.75 $ 4,055,639.18 $

-38,133.46

388,563.53

0.00

483,563.53

521,696.99

$

386,227.00 $

436.428.75 $ 4,539,202.71 $

483,563.53

- 25-

~ Cash and Cash Equivalents Investments Accounts Receivable
eta,T Assets
FUND EQUITY Fund Balances
Reserved For Debt Service
Unreserved Undesignated
Total Fund Equity

LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUNp JUNE 30 1998

EXHIBIT"'"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 1998

JUNE 30, 1997

$

43,508.17 $

242,538.66 $

286,046.83 $

173,517.17

189,416.00

189,416.00

12,929.30

42,166.75

55,096.05

6,789.43

$

245,853.47 $

284.705.41 $

530,558.88 $

180,306.60

$

245,853.47 $

284,705.41 $

530,558.88 $

180,306.60

0.00

0.00

0.00

0.00

$

245,853.47 $

284.705.41 $

530,558.88 $

180,306.60

See notes to the general purpose financial statements.

-26-

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUNP YEAR ENPED JUNE 30 1998

EXHIBIT".r

~ Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expend~ures
Excess of Revenues over (under) Expend~ures
OTHER FINANCING SOURCES
Accrued Interest on Bonds Sold Operating Transfers In
Total Other Financing Sources
Excess of Revenues and other Financing Sources over (under) Expend~ures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$

231,720.77 $

115,697.89

8441.10

3,773.59

$

240161.87 $

119,471.48

347,418.66 $ 12,214.69
359,633,35 $

228,142.59 3,342.35
231,484.94

$

55,000.00

118,875.00

740.00

55,000.00

45,000.00

118,875.00

120,427.50

O.OD

740.00

750.00

$

174,615.00 $

0.00

174,615.00 $

166,177.50

$

65,546.87

119471.48 $

185,018,35 $

65307.44

65,546.87 180,306.60

22,871,39 $ 142,362,54
165,233.93

22,871.39 142,362.54
165.233.93

284,705.41 $ 0.00

350,252.28 $ 180,306.50

65,307.44 114,999.16

FUND BALANCE JUNE 30

$

245:853.47

284,705.41 $

530,558.88

180,306.60

See notes to the general purpose financial statements.

-27-

LONG COUNTY BOARD OF EDUCATION

SCHEDULE" I"

SCHEDULE OF REOUIRED SUPPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30. 1998

At June 30, 1998, the Long County Board ofEducation had no outstanding contractual commitments for the purpose of making computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage The actual process of identifYing all of its systems and individual components of the systems to check for compliance.
Remediation Stage When changes are made to systems and equipment.
Validationffesting Stage The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As of June 30, 1998, the financial accounting system was determined to be at the Awareness Stage.
The Board's fmandal accounting software (GENESIS) and hardware (Wang VS) are owned by the State (Georgia Department of Education). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating
system was installed at all GENESIS sites as of December 9,1998. The Georgia Department of Education
has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards of education currently utilizing the GENESIS accounting software.

See notes to the general purpose financial statements. 28 -

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEpERAL 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)
Total U. S. Department of Agriculture
Education, U. S. Department of Direct Impact Aid 1992 Grant 1997 Grant 1998 Grant Pass-Through From First District Regional Educational Service Agency dJbJa Live Oak Migrant Educational Agency Elementary and Secondary Education Act Tnlel Migrant Education 1998 Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Tille I Grants to Local Educational Agencies 1998 Grant Tille II Eisenhower Professional Development 1997 Grant 1998 Grant Tille VI Innovative Education Program Strategies 1998 Grant Goals 2000 SIaIe and Local Education Systemic Improvement Grant 1998 Grant Technology Literacy Challenge Fund Grant 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant

CFDA ~

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553
. 10.555 10.550

N/A

$ 117,567.17

(2)

N/A

325,370.01 $ 528,546.15 (3)

N/A

46,002.22

46,002.22

$ 488,939.40 $ 574,548.37

84.041 84.041 84.041

$

3,411.79

(4)

12,227.00

(4)

38,351.00

(4)

84.011

NlA

14,698.72 $ 14,698.72

84.010

N/A

84.281

N/A

84.281

N/A

84.298

N/A

84.276

NlA

84.318

N/A

84.027

NlA

84.173

NlA

-29-

259,485.00

259,485,00

14,575.00
9,2n.35

2,307.61 2,791.02
9,2n.35

79,166.00 157,636.32

12,500.00 157,636.32

52,342.00 5,625.00

52,342.00 5,625.00

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

SCHEDULE "2"

FUNDING AGENCY PROGRAMIGRANT
Education, U. S. Department of Pilss-Through From Georgia Department of Education Vocational Education - Basic Grants to States Hi9h School Pro9ram Basic Grant 1998 Grant Tech-Prep Education 1998 Grant
Total U. S. Department of Education
OTHER FEDERAL ASSISTANCE

CFDA ~

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 84.243

NJA

$

17,395.60 $ 17,395.60

NIA

5,000.00

5,000.00

$ 669,190.78 $ 539,058.62

Defense, U. S. Department of Direct Domestic Dependent Elementary and Secondary Schools PL-l02-484 1998 Contract Troops to Teachers 1998 Contract
Total U. S. Department of Defense

12.999

$

4,382.17

(4)

26,358.70

(4)

$. _--=3",0,.:.;74",0",.8,,-7

Total Federal Financial Assiatance NIA = Not Available

$ 1,188,871.05 $ 1,113,606.99

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 andlor consumed by the system during the cunent fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1998 National School Lunch Program.
(3) Expenditures for this program include state, andlor Other Funds. Expenditures are not maintained by fund source.
(4) Funds earned on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk (0) 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 Long County Board of Education and is presented on the modified a=tJal basis of accounting which is !he same basis of accounting used in !he presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-30-

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDEP JUNE 30 1998

SCHEDULE "3"

AGENCYtFUNPING
GRANTS Education, Georgia Department of auallty Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cosl Pupil Transportation RegUlar Bus Replacement Spal1llty Grant Middle School Incentive Program Special Instructional Assistance In-School Suspension Mld-Ienn Adjustment Migrant Mld-Ienn 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 AI-RiSk Summer School Program Environmental SCience Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Student Records Lottery Programs Instructional Technology Assisllve Technology Classroom Technology
Georgia Slale Financing and Investmanl Commission Reimbul1l8ment on Construction Projacts
Office of School Readlnass Pre-Kindergarten Program
Office of Treasury and Fiscal services Public School Employaes Reliremant
CONTRACTS Human Resources. Department of Children's Trusl Fund commission Second Step Program
Office of the Governor Georgia Council for the Arts Georgia Challenge Granl

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE PROJECTS

FUND

~-E!lli!L.

TOTAL

$ 3,120,415.00 291,835.00 173,821.00 135,733.00 44,065.00 936,890.00
253,138.00 84,336.00 64,264.00
132,960.00 107,055.00 35,684.00 157,203.00
14,967.00 14,101.00 28,842.00 -393,836.00 443,854.00
25,494.00 4,443.62
500.00 80,430.88
21,980.00 2,399.85 3,325.50

42,476.00 15,061.18
5,000.00

4,237.00 53,000.00

$ 3,120,415.00 291,635.00 173,821.00 135,733.00 44,065.00 938,890.00
253,138.00 84,336.00 64,284.00
132,960.00 107,055.00 35,684.00 157,203.00
14,967.00 14,101.00 28,842.00 -393,836.00 443,854.00 42,476,00 15,061.18
25,494.00 4,443.82
500.00 80,430.68
5,000.00 21,980.00
2,399.85 3,325.50
4,237.00 53,000.00

$ 17,144.00

17,144.00

289,956.55

289,956.55

24,717.00

24,717.00

7,271.69 10,000,00

7,271.69 10,000.00

See notes to the general purpose financial statements.

$ 5,825,649.34 $ 409,730.73 $ 17,144.00 $ 6,252,524.07 -31-

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF APPROYED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 1998

SCHEDULE "4"

Construction of a new Long County Elementary School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED IN PRIOR
YEARS

$ 7,044,038.00 $ 7,044,038.00 $ 300,000.00 $ _ _.....::0;;,;:.00;::.

(1) The Board's original 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 Long County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local properly
taxes and/or other funds over the life of the project.

See notes to the general purpose financial statements.

-32-

LONG COUNTY BOARp OF EDUCATION SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 30 1998

SCHEDULE "5"

EXPENPITURES
Current Instruction Support Services Pupil Services School Administration Student Transportation Services

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE-KiNDERGARTEN PROGRAM

TOTAL

$

4,309.59 $

53,399.88 $

255,663.73 $ 313,393.20

15,998.81 16,780.70
1,800.00

15,998.81 16,780.70
1,800.00

Total Expenditures

$

4,309.59 $

53,399.88 $

290,263.24 $ 347.972.71

RECAP: Salaries and Benefits Pre-Kindergarten Program Other ExpendibJres Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program

$ 229,120.98
4,309.59 53,399.88 61,142.26

$ 347,972.71

See notes to the general purpose financial statements.

-33-

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

SCHEDULE "6"

See notes to the general purpose financial statements. 35

LONG COUNTY BOARD OF EDUCATION ANALVSIS OF MINIMUM EXPENDiTURE REQUIREMENTS _BY pROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1998

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (") Grades 1 - 3 (') Sub-Total- K-3 Grades 4 - 5 (') Grades 8 - 8 (oJ Grades 9 - 12 (") High ScI100l Laboratories (') Vocational Education Laboratories (0) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs
Category I r)
Category 11(") Category 111(")
Sub-Total- Regular Category VI (Gifted) (")
Total Special Education Programs REMEDIAL EDUCATION PROGRAM CO)
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

364.309.00 934.m.00 1.319.086.00 90 422.030.00 90 nO,264.00 90 291,474.00 90 135,689.00 90 181,872.00 90 3,120,415.00

345,878.10 641.299.30 1.187.177.40 379.827.00 693,237.80 262,326.80 122,120.10 183,884.80 2.808.373.50

50.440.00 55.954.00 106,394.00
20,189.00
128.583.00

264,203.00

237.782.70 $

0.00

264,203.00 27.432.00 291.635.00 173.821.00 3,585.871.00

90 90
90 $

237.782.70 24,888.80
262,471.50 $ 156,438.90 $ 3,227.283.90 $

0.00
0.00 0.00 126,583.00

108.106.00 90 $

97,295.40 $

0.00

27.827.00 90

24,864.30

135.733.00

$

122.159.70 $

0.00

3.721.604.00

$ 3.349.443.60 $

126,583.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development

12.799.00

$

12,799.00

0.00

31.286.00

31,286.00

0.00

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

44.065.00 100 $

44,065.00 $

0::;:.00::::.

- 36 -

SCHEDULE "7"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOThlENT

396,318.10

387,137.80

13,892.26

400,830.06

897,253.30

935,126.25

76,128.32

1,011,254.57

1,293,571.40

1,322,284.05

89,820.58

1,412,084.63

0.00

379,827.00

415,034.91

31,100.68

446,135.59

0.00

693,237.60

896,445.39

75,993.17

972,438.56

0.00

282,515.60

407,284.44

73,007.53

480,271.97

0.00

122,120.10

156,700,33

20,706.01

177,406.34

0.00

163,684.60

242,704.08

43,447.14

286,151.22

0.00

2,934,956.50

3,440,413.20

334,075.11

3,774,488.31

237,782.70

7,743.67 70,284.50 322,994.10

147.26 639.97 10,797.80

7,890.93 70,904.47 333,791.90

237,782.70

401,002.27

11,585.03

412,587.30

0.00

24,688.80

13,920.96

13,574.87

27,495.83

0,00

262,471.50

414,923.23

25,159.90

440,083.13

156,438.90

157,080.33

1,174.39

158,254.72

0.00

3,353,866.90

4,012,416.76

360,409.40

4,372,826.18

97,295.40

124,550.09

124,550.09

0.00

24,884.30

39,01729

39,017.29

0.00

122,159.70

124,550.09

39,01729

163,587.36

3,476,026.60 $ 4,136,966.85 $

399,426.69 $ 4,536,393.54 $

0.00

12,799.00 31,266.00
$ _ _44=,0.6.5.0:;;,0

42,808.29 1,419.24

42,80829 1,419.24

44,227.53 $

44,227.53 $

....::0:;::.00::,

- 37 -

SECTION II 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 14,1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Long 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 of Long County Board of Education as of and for the year ended June 30,1998, and have issued our report thereon dated May 14, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose fmancial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Long County Board of Education's financial statements are free of material misstatement, we perfonned 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 detennination 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 Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Long County Board of Education's internal control over fmancial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involviog the internal control over financial reporting and its operation
98YB-40

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 fmancial reporting that, in our judgement, could adversely affect Long County Board of Education's ability to record, process, summarize and report fmancial 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-69 I 1-98-01.
A material weakness is a condition in which the design or operation of one or more ofthe 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 fmancial 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 ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record.
Respectfully submitted,
~u).ctJ. Russell W. Hinton State Auditor
RWH:gp 98YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
May 14, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Long County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITHOMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Long County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Long County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofLong County Board ofEducation's management. Our responsibility is to express an opinion on Long County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-B3, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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 Long County Board ofEducation'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 Long County Board of Education's compliance with those requirements.

98SA-IO

In our opinion, the Long County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 1998.
Internal Control Over Compliance
The management ofLong County.Board ofEducation 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 Long 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 OMB Circular A133.
Our consideration of the internal control over compliance would not necessarily disclose all rnatters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~4" 00 W.~.:St:: Russell W. Hinton . State Auditor
RWH:gp 98SA-lO

SECTIONID AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6911-93-02 FS-6911-97-01

Further Action Not Warranted Unresolved -See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6911-97-0l

The Long County Board ofEducation has detennined that it is not economically feasible at this time to maintain a separate General Fixed Assets Account Group from the primary accounting systems provided by the Department of Education. Although the Board realizes the significant role the General Fixed Assets Account Group has on the fmancial statements it has decide not to take any action at this time. The Board hopes that this issue will be addressed in the accounting system software updates issued by the Department ofEducation.

SECTION IV FINDINGS AND QUESTIONED COSTS

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Long County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Long County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Long County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Long County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Long 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 .5 IO(a) ofOMB Circular A-B3 The Long County Board ofEducation's audit did not disclose audit findings required to be reported by section ,510(a) ofOMB Circular A-B3.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services -National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Long County Board of Education was audited as a 10:-" risk auditee based on a waiver granted by the U. S. Department ofEducation.
-I-

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
n FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6911-98-0I The Long 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. .ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
-2-