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

STATE OF GEORGIA <

DEPARTMENT OF AUDITS AND ACCOUNTS

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LONG COUNTY BOARD OF EDUCATION
LUDOWICI, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND



E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2
4 7 8
20 22 24 26 28 29
30 32 33

LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
35 36

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

SECTION 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

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

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

March 30, 2001

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 ofthe Long County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Long County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo11n the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements 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 confonn to generally accepted accounting principles.
2000ARL-13

* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To 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, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confonn to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Long County Board ofEducation as of June 30, 2000, and the results of its operations for the year then ended, in confo11nity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2001, on our consideration ofthe 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. That report is an integral part of an audit perforrned in accordance with Government

Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was perforrned for the purpose of forrning an opinion on the general purpose financial statements ofthe Long County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U.S. Office ofManagement 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 info11nation has been subjected to the auditing procedures applied in the audit of the 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 stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13


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

Respectfully submitted,

L(J.
R ssell W. Hinton State Auditor RWH:gp 2000ARL-13



. LONG COUNTY BOARD OF EDUCATION

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items Inventories
Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund Amount to be Provided in Future Years
For Payment of Bond Debt
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

265,016.93 $

112,205.35 $

359,174.23

2,060,886.30

154,345.62

559,426.14

302,411.09

107,669.45

796.00



8,061.46

5,634.85

$ 2,629,110.32 $

s_ _ _ 387,916.13

9_18..,,6_0_0_.3_7

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

$

27,696.29 $

74,689.74 $

119,617.71

96,863.14

6,290.00

3,272.88

31,631.56

102,285.38

$

174,825.76 $ _ _.:;;2.:.;53:;.r.;,5:.;:3;..;.4.;.;:.6~5

$

6,042.27

$

31,704.38

2,589,081.76 $ 2,595,124.03 $

8,061.46 5,634.85
$

502,841.76 121,192.25

167,690.28

41 031.71

213,090.97 $ _ _.;:a.66:.;:5;.,.;,0=.;:6;.:.5:7.:.=. -2

Total Liabilities and Fund Equity

$ 2,629,110.32 $


387,916.73 $ _ _..,9.:.;18;;,.;6,~0;,;;;,0;,;;;.3,;,.7

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

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

385,648.73

$

1,122,045.24 $

3,798,876.82

86,423.46

2,861,081.52

2,781,.518.36

54,812.99

464,893.53

200,204.26

796.00

$

526,885.18

5,688,114.82

8,061.46 5,634.85 526,885.18
5,688,114.82

7,334.73 5,242.91 533,721.20
5,826,278.80

$

526,885.18 $

6,215,000.00 $ 10,677,512.60 $ 13,153,177.08

$

$ - - ~ 61=-21.:..::5"",oa.:o"'"o.=o"'-o

$

6,215,000.00 $

222,003.74 $ 96,863.14 9,562.88 31,631.56
102,285.38 6,215,000.00
6,677,346.70 $

148,900.47 82,645.02 10,448.68
354,401.86 154,296.01 6,360,000.00
7,110,692.04



$

526,885.18

0.00 $ _ _..;;.52=6;.,8;;.;;8;.;;;.5"-'-.1~8
$

$

6,042.27 $

23,268.61

31,704.38

17,765.35

526,885.18

533,721.20

8,061.46 5,634.85 502,841.76 121,192.25

7,334.73 5,242.91 2,464,386.53 635,939.32

2,797,803.75

2,354,826.39

$

4,000,165.90 $

6,042,485.04

6,215,000.00 $ 10,677,512.60 $ 13,153,177.08
-3-

LONG COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

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

GENERAL FUND

SPECIAL REVENUE
FUND

$ 6,895,315.06 $

400,188.83

51,561.87

1,378,705.87

1,651,778.12

463,636.08

121,251.63

$ 9,062,291 .13 $ _ __:._,1,.::.90::.,0:.,.1,:..:4.::.6.:.3:.::...3

$

5,327,882.25 $

340,181.45 300,068.32 182,244.27 270,213.47 395,350.59 137,034.81 521,526.26 581,528.69
21,956.52 72.00
27,118.13

844,951.05
35,344.84 248,343.31
5,626.49 52,101.27 21,519.76
3,225.00 8,395.32
894,095.32

$

8,105,176.76 $

2,113,602.36

$

957, 114.37 $ _ _.:.2.:..:13:.,,..4,.:..:5~6.:..0:::..:::.3

$
$ ---=2.::...61:...,.,5:;.;9:..:4.:.:.2:.:..6

11,594.26

$

-261,594.26 $ _ _.....;.1.:..1,z..::5.::...94..:.:=-26:::..

$

695,520.11 $

1,899,603.92

-201,861.77 413,834.07

726.73 391.94

FUND BALANCE JUNE 30

$ 2,595,124.03 $ ===21=3....0;;.;;9~0;,;;,.9,;,,,7

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

132,903.80

$

7,428,407.69 $

7,969,802.94

1,430,267.74

1,162,737.01

$

445,409.54

2,097,187.66

2,102,454.17

87,649.08

13,250.94

685,787.73

599,453.62

$

220,552.88 $

458,660.48 $ 11,641,650.82 $ 11,834,447.74

$

3,000,813.01

$

$

3,000,813.01 $

$ -2,780,260.13 $

$
145,000.00 319,807.50
689.00
465,496.50 $
-6,836.02 $

6,172,833.30 $
375,526.29 548,411.63 187,870.76 322,314.74 416,870.35 137,034.81 524,751.26 589,924.01
21,956.52 894,167.32 3,027,931.14
145,000.00 319,807.50
689.00
13,685,088.63 $
-2,043,437.81 $

5,816,915.86
315,699.49 331,165.99 176,734.76 213,083.16 439,166.08
93,486.06 445,396.45 491,903.06
20,877.56 603,494.63 3,424,210.52
75,000.00 391,324.17
1 296.40
12,839,754.19
"1,005,306.45

$

250,000.00

$ --=25;;..:o'"'"'o,;..o.c.o.;.;.oo~

$ -2,530,260.13 $ 3,195,325.85

$

261,594.26 $

575,902.06

-261,594.26

-575,902.06

$

0.00 $

0.00

-6,836.02 $
533,721.20

-2,043,437.81 $
6,042,485.04

-1,005,306.45 7,051,137.00

726.73 391.94

-4,000.44 654.93

$

665,065.72 $

526,885.18 $

4,000,165.90 $

6,042,485.04

-5-

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

EXHIBIT "C"

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 6,562,911.00 $ 6,895,315.06

40,000.00

51,561.87

1,572,000.00 1,651,778.12

50,000.00

463,636.08

$ 8,224,911.00 $ 9,062,291.13

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 Other Support Services Food Services Operation
Capital Outlay

$ 5,797,732.00 $ 5,327,882.25

375,820.00 294,239.00 233,503.00 286,394.00 461,141.00 140,311.00 598,342.00 577,237.00 21,000.00
72.00

340,181.45 300,068.32 182,244.27 270,213.47 395,350.59 137,034.81 521,526.26 581,528.69 21,956.52
72.00 27,118.13

Total Expenditures

$ 8,785,791.00 $ 8,105,176.76

Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)

$ -560,880.00 $ 957,114.37

Other Sources Other Uses

$ -425,000.00 $ -261,594.26

Total Other Financing Sources (Uses) $ -425,000.00 $ -261,594.26

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

$ -985,880.00 $ 695,520.11

FUND BALANCE JULY 1, 1999

1,855,300.14 1,899,603.92

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

-5,413.86

FUND BALANCE JUNE 30, 2000

$ 864,006.28 $ 2,595,124.03

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 424.134.00 $ 400,188.83 1,633,659.00 1,378,705.87

122,550.00

121,251.63

$ 2,180,343.00 $ 1,900,146.33

$ 896,289.00 $ 844,951.05

28,141.00 260,969.00
5,626.00 55,541.00 21,589.00

35,344.84 248,343.31
5,626.49 52,101.27 21,519.76

3,225.00 7,823.00 1,277.00 783,569.00

3,225.00 8,395.32
894,095.32

$ 2,064,049.00 $ 2,113,602.36 $ 116,294.00 $ -213,456.03

$
$ -225,000.00
$ -225,000.00 $

11,594.26 11,594.26

$ -108,706.00 $ -201,861.77

398,080.60

413,834.07

-6,010.86

726.73 391.94

$ 283,363.74 $ 213,090.97

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

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Long County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. 1'he Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To 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. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational
activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.


-8-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Terrn Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day
-9-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Long County Board ofEducation's budget is a complete financial plan for the Board's fiscal year
and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws
OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured
Federal savings and loan associations, or insured State chartered building and loan associations.

- 10 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated
Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment
or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(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 of the 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 1999 tax year (calendar year) on November 10, 1999 (levy date). Taxes were due on January 10, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within
- 11 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

.ruNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

60 days after year-end are reported as revenue in fiscal year 2000. 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.

Tax millage rates levied for the 1999 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

14.70 mills 1.00 mills
15.70 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 $332,540.56 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $1,112,752.56 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 ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 2000, are recorded as prepaid items.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group.
- 12 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fu11d 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 of operations in confo1n1ity 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 of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

- 13 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate 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, 2000, the bank balances were $2,288,806.99. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 2000, as follows:

Risk Category
1
2
3

Bank Balance
$ 486,337.73 1,802,469.26 0.00

Total

$ 2,288,806.99

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $2,861,081.52 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

- 14 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner
consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values 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 of funds 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-te11n 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. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned
value. See Note 1 - Inventories
Note 4: 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 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 of the past three years.

- 15 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

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 of that loss can be reasonably estimated.

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


1999
2000

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

0.00 $

$

0.00 $

6,036.33 $

Claims Paid

End of Year Liability

0.00 $,_ _ __,,0:.:.::.0=0 6,036.33 $_ _ _-"0-'-'.0'--=-0

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

Amount
$ 20,000.00 $ 20,000.00

Note 5: OPERATING LEASES

Long County Board ofEducation has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $95,195.54. Future minimum lease payments for these leases are as follows:

- 16 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: OPERATING LEASES
Year Ending
2001 2002 2003 2004 2005
Total
Note 6: GENERAL LONG-TERM DEBT

Amount
$ 100,851.16 100,512.36 94,432.20 84,208.11 2,592.00
$ 382,595.83

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%

$ 2,180,000.00 4,035,000.00

$ 6,215,000.00

The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows:

General Obligation
Bonds

Balance July 1, 1999

$ 6,360,000.00

Deductions Debt Retired

145,000.00

Balance June 30, 2000

$ 6,215,000.00

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:


- 17 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: GENERAL LONG-TERM DEBT
Fiscal Year Ended June 30
2001 2002 2003 2004 2005 2006 - 2010 2011-2015 2016 - 2018
Total Principal and Interest

General Obligation
Bonds
$ 483,937.50 496,840.00 508,717.50 519,527.50 529,167.50
2,737,030.00 2,793,317.50 1,754,575.00
$9,823,112.50

Note 7: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $114,402.72 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Departn1ent of Community Health For Health Insurance of Non-Certified Personnel In the amount of $85,899.72

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 $28,503.00

Note 8: SIGNIFICANT COMMITMENTS

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

Project 99G/98S-691-059

Unearned Executed Contracts

$ 112,003.45

The amount described in this note is not reflected in the general purpose financial statements.

- 18 -



LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant te1ms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 581,463.08 $ 579,890.52 $ 516,023.18

- 19 -

LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

86,704.86 $

43,220.60

154,345.62

12,143.59

8,061.46
5 634.85


$

266,890.38 $ ===4=3;;,i;,2=2=0=.6=0

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable E_xpired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
- 20 -

$

53,449.05 $

9,766.40

32,054.74

33,454.20

$

85,503.79 $ _ _ _4.:.;3::;.t,,2=2:.:::0.:..::.6=0

$

8,061.46

5,634.85

167,690.28 $ _ _ _ _...::::0.:..:::.0~0

$

181,386.59 $ _ _ _ _....::0.:..::.0=0

$

266,890.38 $ ===4=3=,2=2=0=.6=0

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

129,925.46 $

282,625.53

154,345.62

192,136.77

$

95,525.86

107,669.45

37,646.59

8,061.46

7,334.73



5 634.85

5 242.91

$

95,525.86 $

405,636.84 $ ===52.,.4=,9=8=6=.5=3

$

17,720.11 $

17,720.11 .

11,474.29

74,689.74 $

20,042.46

31,354.20

96,863.14

82,645.02

3,272.88

3,272.88

8 464.98

$

63,821.48 $

192,545.87 $ _ _..;.1-'--11;.,.1.;..;:5=2.;..;.4~6

$

31,704.38 $

31,704.38 $

17,765.35

8,061.46 5,634.85

7,334.73 5,242.91

0.00

167,690.28

383,491.08

$

31 704.38 $

213,090.97 $ _ __,;.4-'-'13:;.z.8;;.;;3'-"4.;_0;:..:...7

$

95,525.86 $

405,636.84 $ ===52.,.4=,9=8=6=.5=3

- 21 -

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures

Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND


LOTTERY PROGRAMS

$

49,246.00 $

350,942.83

507,796.89

121,251.63

$

678,294.52 $ _ _.;:;.3.;:;.;50:;.z.9~4=2=.8c=..3

$

304,009.19

17,378.62 185.00

21,519.76 3,225.00 5,975.00

$ _ _.;;.89~4;.,.;,0;.::9.;:;.5.:.;;;.3=.2

$

894,095.32 $ _ _.;;;.;35=2=,2=9=2..;;..57'-

$

-215,800.80 $

-1,349.74

$

-215,800.80 $

396,068.72

726.73 391.94

1 349.74
0.00 0.00

$

181,386.59 $====.;;;o,;,;;.o~o

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

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

400,188.83 $

370,842.78

$

870,908.98

1,378,705.87

1,047,111.07

121,251.63

125,173.39

$

870,908.98 $ 1,900,146.33 $ 1,543,127.24

$

540,941.86 $

844,951.05 $

740,613.87

17,966.22 248,158.31
5,626.49 52,101.27
2,420.32

35,344.84 248,343.31
5,626.49 52,101.27 21,519.76
3,225.00 8,395.32
894,095.32

36,867.20 77,182.05
2,195.68 43,618.31 22,768.74
4,850.00 9,388.75
345.00 603,494.63

$

867 214.47 $ 2,113,602.36 $ 1,541,324.23

$

3,694.51 $

-213,456.03 $

1,803.01

10,244.52

11,594.26

902.06

$

13,939.03 $

-201,861.77 $

2,705.07

17,765.35

413,834.07

414,474.51

726.73 391.94

-4,000.44 654.93

$

31 704.38 $

213,090.97 $ ===41=3=,8=3=4.=0=7

- 23 -

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

ASSETS Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Un designated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

41,031.71 $

502,841.76

$

41 031. 71 $ ===50=2=,8=4=1.=76=

$

502,841.76

$ _____4....;..1,_;;0~3..;..;1._7_..;...1

0.00

$

41 031 .71 $ _ _.:.;50:.:2:.t:,8:..:4.:.;1:.:.76::.

$

41 031.71 $===50=2='=,8=4=1=.7=6

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

EXHIBIT "G"

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

LOTTERY PROJECT

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

543,873.47 $ 3,053,954.00

$

60,266.04 $ _ __;.,49;.;9;..1'-,;6..;,.0""".1.;.0

559,426.14

658,166.97

$

60,266.04 $

499160.10 $ 1,103,299.61 $ 3,712,120.97

$

33,215.95 $

151,483.29 $

184,699.24

119,617.71

119,617.71 $

8,097.25

27,050.09

4,581.47

31,631.56

354,401.86

102,285.38

102,285.38

154,296.01

$

60,266.04 $

377,967.85 $

438,233.89 $ ____5,.;..;16'-"-7,"""9...;;,.5'-'-.1~2

$

$ _ _ _ _-=-o=.o-=-o

$

0.00 $

$
121,192.25
0.00
121,192.25 $

502,841.76 $ 121,192.25
41 031.71
665,065.72 $

2,464,386.53 635,939.32
95,000.00
3,195,325.85

$

60,266.04 $

499,160.10 $ 1,103,299.61 $ 3,712,120.97

- 25 -

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2.000

REVENUES State Funds Other Funds Total Revenues
EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00 $ _ _ _4.;.:6:.z.4,.:..::5;.:c.52:.:;.::...3

$

0.00 $ _ _ _4.;.:6:.z..4.:.::5;.:c.52:.:;.::...3

$

o.oo $ _ _ _ _..;:;o=.o~o

$

o.oo $ _ _ _ _--=o=.o;.:;.o

$

0.00 $ _ ____,;._46;;.i.,4.;.;5::.::5c:.::.2=3

$

-53,968.29 $ -2,008,000.00

$

-53,968.29 $ -2,008,000.00

$

-53,968.29 $ -1,961,544.77

95,000.00

2,464,386.53

$

41 031.71 $ ==~50~2..,;,8=4=1;,7;.~6

See notes to the general purpose financial statements.
- 26 -

EXHIBIT "H"

GEORGIA STATE



FINANCING AND

TOTALS

INVESTMENT

LOTTERY

YEAR ENDED

COMMISSION

PROJECT

JUNE 30, 2000

JUNE 30, 1999

$
$ _ _--"-1Oa.z..6;:;..:3=3=.0~8

$

10 633.08 $

132,903.80 $ 30 560.77
163 464.57 $

132,903.80 $ 87 649.08
220,552.88 $

1,196,134.20 307 699.46
1,503,833.66

$
$ --~3=22:..,.,5:_4:.::;0.:.::.8.=.3

$

322,540.83 $

$

-311 907.75 $

33,217.30 $ 2,645,054.88
2,678,272.18 $
-2,514,807.61 $


33,217.30 $ 2,967,595.71

391,480.70 3,031,229.82

3,000,813.01 $ 3,422,710.52

-2,780,260.13 $ -1,918,876.86

$

53,968.29 $ 2,258,000.00 $ 2,311,968.29 $ 1,909,635.54

-2,061,968.29

-1,334,635.54

$

53,968.29 $ 2,258,000.00 $

250,000.00 $ _ _=57.;.;;5:.z.;,o=o=o.:.:::.o-=-o



$

-257,939.46 $

257,939.46

-256,807.61 $ 377,999.86

-2,530,260.13 $ 3,195,325.85

-1,343,876.86 4,539,202.71

$

0.00 $

121,192.25 $

665,065.72 $ 3,195,325.85

- 27 -

LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$ 56,200.44 $

329,448.29 $

385,648.73 $

344,522.66

86,423.46

86,423.46

122,224.71

5 755.37

49 057.62

54,812.99

66,973.83

Total Assets

$ 148,379.27 $

378,505.91 $

526,885.18 $ ====5=3=3'=72=1=.2=0=

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 148,379.27 $
0.00

378,505.91 $
0.00

526,885.18 $
0.00

533,721.20 0.00

Total Fund Equity $ 148,379.27 $

378,505.91 $

526,885.18 $ ====5=3=3'=72=1=.2=0=

See notes to the general purpose financial statements. - 28 -

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX


TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$ 112,868.98 $
7 135.02

332,540.56 $
6 115.92

.
445,409.54 $ 13 250.94
458,660.48 $

453,750.10 17 032.79
470 782.89

$ 75,000.00 $
114,365.00 689.00
$ -70,050.00 $

70,000.00 $ 205,442.50
63,213.98 $ 315,291.93

145,000.00 $
319,807.50 689.00
465,496.50 $
-6,836.02 $

75,000.00 391,324.17
1 296.40
467,620.57
3,162.32
530,558.88

FUND BALANCE JUNE 30

$ 148,379.27 $

378,505.91 $

526,885.18 $

See notes to the general purpose financial statements.

- 29-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

PASS-

THROUGH



ENTITY

FEDERAL

CFDA NUMBER

ID NUMBER

REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

* 10.553 10.555

N/A

$

111,635.21

(2)

N/A

359,883.45 $ 857,817.09 (3)

$

471,518.66 $

857,817.09

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

10.550

NIA

36,278.23

36,278.23

$

507,796.89 $

894,095.32

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

84.027 84.173

NIA $ N/A

95,624.92 $ 11,561.00

95,624.92 (3) 12,193.20 (3)

$

107,185.92 $

107,818.12

Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Comprehensive School Reform Project Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development
Title 111
Technology Literacy Challenge Fund Grant Title VI
Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic
Improvement Grant Vocational Education - Basic Grants to States
High School Program Basic Grant
Pass-Through From First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Total U. S. Department of Education

84.041 84.332
84.010
84.281 84.318 84.298 84.340 84.276 84.048
84.011

59,061.87

(4)

NIA

71,148.00

71,698.17 (3)

N/A

310,306.86

310,306.86

N/A

16,000.00

25,184.55

N/A

125,000.00

101,960.78 (3)

N/A

11,773.00

11,793.84 (3)

NIA

47,108.00

47,118.30 (3)

N/A

140,955.00

149,900.49 (3)

N/A

25,973.00

25,974.16 (3)

NIA

15,459.20

15,459.20

$ 929,970.85 $ 867,214.47

- 30 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense, U. S. Department of Direct Troops to Teachers

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

12.999

$

-7,500.00

(4)

Total Federal Financial Assistance

$ 1,430,267.74 $ 1,761,309.79

NIA= Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts ~hown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or 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 (*) 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 accrual basis of accounting used in the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

- 31 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Education Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Other State Programs Apprenticeship Program At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital Outlay
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Reading Challenge Program Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 3,614,500.00
393,768.00 196,272.00 155,584.00
45,058.00 1,018,860.00

$ 3,614,500.00
393,768.00 196,272.00 155,584.00
45,058.00 1,018,860.00

263,743.00 81,550.00 57,698.00
134,459.00 144,335.00
60,382.00 219,724.00
16,412.00 13,611.00 28,842.00 -478,033.00 680,584.00
$

49,246.00

263,743.00 81,550.00 57,698.00
134,459.00 144,335.00
60,382.00 219,724.00
16,412.00 13,611.00 28,842.00 -478,033.00 680,584.00 49,246.00

2,000.00 7,819.00 85,899.72 24,394.00 2,908.34 15,000.00

2,000.00 7,819.00 85,899.72 24,394.00 2,908.34 15,000.00

10,078.20 53,000.00
$

132,903.80

10,078.20 53,000.00 132,903.80

287,864.63

287,864.63

28,503.00

28,503.00

53,250.00 28,192.00

53,250.00 28,192.00

$ 6,895,315.06 $ 400,188.83 $ 132,903.80 $ 7,428,407.69

See notes to the general purpose financial statements.

- 32 -

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

SCHEDULE "3"

PROJECT
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 $ 2,883,714.68 $ 3,593,132.47

(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/o sales tax to fund the above project and retire
associated debt. Amounts expended for the project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.



See notes to the general purpose financial statements. - 33 -

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100/o TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,579,848.00 $

153,992.00

---~"-'-'---'-'-'--

$

4,493,099.22

361,744.07 $ _ ___o;,;32=2c.:.,3;.;6c..0.;,.;.8..;._1

$

4,854,843.29

-25,589.15 $ _ _ _4_,_,8_2;..;;.9.:...,2_5_4._1_4

$

0.00 $========0=0=0

See notes to the general purpose financial statements.
- 35 -

LONG COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten (*) Grades 1 - 3 (*)
Sub-Total - K-3
Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*)
Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS
Regular Programs Category I (*) Category II (*)
Category 111 (*)
Category IV (*) Category V (*)
Sub-Total - Regular Category VI (Gifted) (*)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C*l
Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

486.231.00

$

437,607.90 $

0.00

1,045,718.00

941,146.20

$ 1.531.949.00 90 $ 1,378,754.10 $

0.00

407.516.00 90

366,764.40

798.552.00 90

718,696.80

388,524.00 90

349,671.60

219,724.00

182.657.00 90

164,391.30

305.302.00 90

274,771.80

$ 3.614.500.00

$

3,253,050. oo $ _ _2=-1;..;;9..:..1;,,;;;2;..;.4;.o.:;~o

$

362. 784.00

$

326,505.60 $

0.00

$

362,784.00 90 $

326,505.60 $

0.00

30,984.00 90

27,885.60

$

393,768.00

$

354,391.20 $ _ _ _ _..;;.O.;..;;.O..;;...O

$

196,272.00 90 $

176,644.80 $ _ _ _ _,..;;o.:..:.o.;...o

$ 4,204,540.00

- - - - - - $ 3,784,086.00 $

219,724.00

$

121,780.00 90 $

109,602.00 $

33,804.00 100

33,804.00

0.00

$

155,584.00

$

143,406.oo $ _ _ _ _,..;;o.:..:.o.;...o

Total Fourteen Weighted and Media Center Programs $ 4,360,124.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

14,639.00

30,419.00

$ 3,927,492.00 $ ====21=9,=72=4=.0=0

$

14,639.00 $

30,419.00

0.00 0.00

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

$

45,058.00 100 $

45,058.00 $ =====0.0=0

- 36 -

SCHEDULE "5"

AMOUNT OF

EDUCATION

UNDEREXPENDITURE

TOTAL

ACTUAL EXPENDITURES

FOR REQUIRED



REQUIRED

SALARIES

OPERATIONS

TOTAL

ALLOTMENT

$

437.607.90 $

412,111.41$

27,922.20 $

440,033.61

941,146.20

952,411.74

48,372.37

1,000,784.11

$ 1,378,754.10 $

1,364,523.15 $

76,294.57 $ 1,440,817.72 $

0.00

366,764.40

486,527.23

13,392.07

499,919.30

0.00

718,696.80

772, 191.97

36,223.78

808,415.75

0.00

569,395.60

487,381.54

117,496.51

604,878.05

0.00

164,391.30

171,630.66

13,751.91

185,382.57

0.00

274,771.80

260,439.35

42,928.00

303,367.35

0.00

$ 3,472,774.00 $

3,542,693.90 $

300,086.84 $ 3,842,780.74

$

326,505.60

$

53,026.30 $

158,063.18

339,696.40



39,693.25

1,121.70

436.05 $ 1,437.85 9,644.23
571.72

53,462.35 159,501.03 349,340.63 40,264.97
1,121.70

$

326,505.60 $

591,600.83 $

12,089.85 $

603,690.68

0.00

27,885.60

26,816.75

1,325.96

28,142.71

0.00

$

354,391.20 $

618,417.58 $

13,415.81 $ _ _6;..;3'"'1"",8..;;.3-'--3'..;;.39.;..

$

176,644.80 $

190,197.85 $

8,858.16 $ _ _1.;_;9;..;;9"0";,..:.5.;;.;6';..:.0..;..1

0.00



$ 4,003,810.00 $ 4,351,309.33 $

322,360.81 $ 4,673,670.14

$

109,602.00 $

141,789.89

$

141,789.89

0.00

33,804.00 - - - - - - $ _ _..;3;.;;9"",3;.;;8.;;.3.;.;;;;2.c..6

39,383.26

0.00

$

143,406.00 $

141,789.89$

- - - ~ - - 39,383.26 $

181,173.15

$ 4,147,216.00 $

4,493,099.22 $

= = = = = = = = 361,744.07 $ 4,854,843.29 $

0.00

$

14,639.00

30,419.00

$ ===4=5,=058=.0=0

$

45,102.36 $

45,102.36

860.79

860.79

$

45,963.15 $

45,963.15 $ =========0=.0=0

- 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS


w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta, Georgia 30334-8400
March 30, 2001

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 ofLong County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 30, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part ofobtaining reasonable assurance about whether Long County Board ofEducation's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete11nination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and perfo11ning our audit, we considered Long County Board of Education's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Long County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6911-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily. disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the Long County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2000YB-40

ussell W. Hinton State Auditor



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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta, Georgia 30334-8400
March 30, 2001

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 WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofLong County Board ofEducation with the types ofcompliance
requirements described in the US. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended
June 30, 2000. Long County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility 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 ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that
we plan and 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 of Education's compliance with those requirements and perfo11ning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete11nination on Long County Board of Education's compliance with those requirements.
2000SA-10

111 our opinion, the Long County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management 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 of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to deterrnine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the inforrnation and use of management, members of the Long County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2000SA-10

Ru sell W. Hinton State Auditor

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

LONG COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR \'EAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6911-98-01 FS-6911-99-01

Further Action Not Warranted



Unresolved - See Corrective Action/Responses


CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6911-99-01

The Long County Board ofEducation has determined 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 ofEducation. Although the Board realizes the significant role the General Fixed Assets Account Group has on the financial statements, it has decided 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 of Education.



SECTION IV FINDINGS AND QUESTIONED COSTS

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
'\'EAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS



1. Type of Report Issued on the Financial Statements The auditor's opinion on the 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 ofthe 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 progiams.

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 .51 O(a) of 0MB Circular A-133 The Long County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational
Agencies

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 low risk auditee based on a waiver
granted by the U.S. Department of Education.

- 1-

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6911-00-01 The Long County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the forrnal 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 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 of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
'

-2 -