Audit report, McIntosh County Board of Education, Darien, Georgia, year ended June 30, 1999

AUDIT REPORT MCJNTOSH COUNTY BOARD OF EDUCATION
DARIEt,i, GEORGIA YEAR ENDED JUNE 30, 1999

MCINTOSH COUNTY BOARD Of EDlJCATION - 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDffiONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

17

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

18

2 SCHEDULE OF STATE REVENUE

20

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

21

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

23

5

BYPROGRAM

24

MCINTOSH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
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. HtNTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May26,2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the McIntosh County Board ofEducation
INDEPENDENT AI JDITOR'S COMBINED REPORT ON GENERAL PlJRPOSE 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 McIntosh County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe McIntosh 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 Audjtina 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 ofmaterial 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:
* 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.

99ARL-14

* The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion ofsalaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fair!y, in all material respects, the financial position of the McIntosh County Board ofEducation as ofJune 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note l to the general purpose financial statements, during fiscal year 1999, the Board completed a comprehensive inventory ofits general fixed assets for inclusion in the general purpose financial statements. This change is in accordance with generally accepted accounting principles.
In accordance with Government Audjtini Standards, we have also issued our report dated May 26, 2000, on
our consideration ofthe McIntosh County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the McIntosh County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required byU. S. Office of Management and Budget Circular A-133, Audits ofStates, 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 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 presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-14

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,

RWH:jb 99ARL-14

~toni.\.~~
State Auditor

MCINTOSH cmJNTV BOARD OF EPJTCATION

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
Inventories Food Donated Commodities Purchased Food
General Fixed Assets Land Buildings Equipment

MCINTOSH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1999

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 1,250,725.57 $

56,630.52

1,000,000.00

135,387.54

174,993.63

18,849.52 6,968.72

Total Assets

$ 2 355113.11 s_..,.:2a;;s;:.1i;;44;;::2:.;;:;39:;.

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable
Total Liabilities
FUNDEOUITY
Investment In General Fixed Assets Fund Balances
Reserved For Bus Replacement Funds For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects
Unreserved Undesignated
Total Fund Equity

$

119,133.04 $

36,455.78

98 039.38

$

119133.04 $

134 495.16

$

8,121.21

$

18,849.52

6,968.72

2258 858.86
s 2266 980.07 $

97128.99 122 947.23

Total Liabilities and Fund Equity

$ 2386113.11 $

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

257 442.39

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

ACCOUNT GROUP GENERAL FIXED ASSETS

TOTALS

(Memorandum Onl~l

JUNE 30 1999

JUNE 30 1998

$

98,046.12

$ 1,405,402.21 $ 2,033,984.05

1,000,000.00

222,784.18

533,165.35

270,132.29

2,410.00

18,849.52 6,968.72

15,885.18 8,793.29

$

400,801.13

400,801.13

400,801.13

6,623,645.80

6,623,645.80

6,515,180.36

2 512 555.71

2 512 555.71

2 304 250.34

$

320 830.30 $

91537 002.64 $ 12 501 388.44 $ 1115511436.64

$

155,588.82 $

98039.38

78,839.82 88409.91

$

253628.20 $

167 049.53

$

9,537,002.64 $ 9,537,002.64 $ 9,220,231.83

8,121.21

571.10 289.07

$

320,830.30

18,849.52 6,968.72 320,830.30

15,885.18 8,793.29

0.00

0.00

2 355 987.85

2138 636.64

$

320 830.30 s

9 537 002.64 $ 12 247 760.24 $ 11384 387.11

$

320 830.30 $

9 537 002.64 $ 12 501,388.44 $ 11 551 436.64

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MCINIDSH COUNTY BOA BP QF EPI ICATION COMBINED STATEMENT QF REVENUES FXPENPITLIBFS ANP CHANGES IN FIJND BALANCES
ALL GOVERNMENTAi FUND TVPES VEAR fNQEP JUNE 30 1999

EXHIBIT"B"

~
State Funds Federal Funds Taxes other Funds
Total Revenues
EXPENPITllBFS
Current Instruction Suppart S8fVices Pupil Services IR1)rovement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transpartation Services Central Support Services Other Suppart Services Food Services Operation
Cepital Outlay
Total Expondi1ures
Excess of Revenues over (under) Expenditures
QI~i;B El~NSi Q!I~ l!~E.}
Operating Transfers In Operating Transfers Out
Total Other Financing Souroos (Usoo)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
El INP BAI ANCF Jl&Y 1
Food Inventory Not Chango In Period Donated Commoditios Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Onlrl
YEAR ENDED JUNE30 199!l JUNE30 1998

6,978,812.86 $
2,748,595.22 134 541.05
9860049.13 $

389,491.81 1,224,524.63
107 487.82
1 721 504.26 $

320,790.07 40.23

7,366,304.67 S 1,224,524.63 3,069,485.29
242 069.10

6,652,061:23 1,176,837.89 2,719,187.24
282 209.61

320 830.30 $ 11 902 383.69 $ 10 830 295.97

s 5,920,558.41

646,617.39

366,630.49 437,609.04 206,736.58 258,388.73 543,859.86 55,547.65 917,036.28 467,488.84
1,770.31 83,922.85
375260.91

75,274.69 118,677.83
7,720.14 60,473.85
1,855.09
77,530.27 732,246.33
1 745.78 $

9 634 779.77 $ 1 722 141.37 $

225 269.36 $

-637.11 $

6,567,175.80 $ 6,042,186.38

441,906.18

356,99&.94

556,286.87

379,845.24

214,456.72

274,880.96

318,862.58

274,259.89

543,859.68

574,929.75

55,547.65

201,633.19

917,036.28

952,008.66

469,323.93

447,229.32

1,770.31

2,131.25

161,453.12

145,836.31

732.246.33

764,850.06

0.00

376 9!l6.69

295 379.66

0.00 $ 11 358921.14 $ 10 711 969.61

320 630.30 S

545462.55 $

118 326.36

-8137.10 -8 137.10 $

8,137.10 8137.10

8,137.10 $ -8137.10
0.00 S

25,407.11 -25 407.11
0.00

217,132.26 S 2,049,847.81

7,49!l.99 $ 114,307.47

320,830.30 S

545,462.55 S

118,326.36

0.00

2,184,155.28

2,049,116.24

2,964.34 -1 824.57

2,964.34 -1 824.57

-4,278.58 991.26

FUND BAI ANCF JUNE 3Q

2 286 980.07 $

122 947.23 $

320 830.30 $ 2 710 757.60 $ 2 164 155.28

Tho notes to tho gone,al purpooo financial statomonts are an Integral part ol 1hls statemon1.

MCINTOSH COUNTY BOARD OF EDUCATION COMBINED STATFMENT OF REVENIIES EXPENDITURES AND CHANGES IN FUND BALANCES
BIIDGET AND ACTUAL (NON-GAAF BASIS) GENERAL AND SPECIAL REVENIIE FUNDS
YEAR ENDED JUNE 30 1999

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENI/ES

State Funds Federal Funds Taxes Other Funds

6,795,932.00 $ 6,976,812.86

2,559,053.00 67,228.50

2,748,695.22 134 541.05

Total Revenues

9,422,213.50 $ 9,860,049.13

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 SbJdent Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outiay

$ 6,643,989.50 $ 5,920,558.41

374,988.00 423,774.00 204,888.00 258,934.00 553,319.00 156,371.00 932,564.00 482,685.00
2,300.00 78,311.00

366,630.49 437,609.04 206,736.58 258,388.73 543,859.68
55,547.65 917,036.28 467,468.84
1,770.31 83,922.85

373 000.00

375250.91

Total Expenditures

$ 10 485123.50 $ 9634 779.77

Excess of Revenues over (under) Expenditures

$ -1 062 910.00 $ 225~9.36

OTHER FINANCING SO!!BCES (USES}

Other Sources Other Uses

$

-8137.10

Total Other Financing Sources (Uses)

$

-8137.10

Excess of Revenues and OU,er Financing Sources over (under) Expenditures and Other Financing Uses $ -1,062,910.00 $

217,132.26

FUND BA!.A!::jCE JULY l lSS
Adjusbnents Food Inventory Net Change In Period
Donated Commodities Purchased Food

1,885,907.90 --419.70

2,049,847.81

aa Fl/ND BALANC(a JUNE lSQQ

822 578.20 $ 2 266980.07

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 342,596.00 $ 389,491.81

1,316,875.00

1,224,524.63

197625.00

107,487.82

1,857 096.00 $ 1 721 504.26

$ 721,572.00 $ 646,617.39

66,041.00 156,671.00 18,325.00 74,844.00

75,274.69 118,677.83
7,720.14 60,473.85

1,377.00

1,855.09

91,857.00 753,725.00
1746.00

77,530.27 732,246.33
1745.78

$ 1 886158.00 $ 1 722,141.37

$

-29062.00 $

-837.11

$

8,137.10

$

8137.10

$

-29,062.00 $

7,499.99

110,359.15

114,307.47

-196.60

2,964.34 -1,824.57

$

81,100.55 $ 122,947.23

The notes 10 the general purpose financial statemants are an Integral part of this statement -5-

MCINTOSH cm JNIY BOARD OF EDJ /CATION

EXHIBIT "D"

NOTES TO THE GENERAi PJJRPOSE FINANQAL STATEMENTS
nJNB 30 1222

Note l SJJMMARY OF SIGNIFTCANT ACCQTJNTING PQT,JCIES
REPORTING ENTITY
The McIntosh 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. 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 grotip 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.
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 ofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds 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 educatioual activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

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MCINTOSH COJJNJY BOARD OF EQT JCATTQN

EXHIBIT "D"

NOTES TO THE QENER AL PT JRPOSE FINANCIAL STATEMENTS

JTJNE3Q 1222

Note I ST JMMARY OF SIGNTFICANT ACCOT JNTTNG POJJCIES
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP - A financial reporting device used to account for all general fixed assets acquired or constructed for use by the Board.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough 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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year

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MCINTOSH COJJNIY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERA! PJIBPOSE FINANCIAL STATEMENTS
nJNE 30 1222

Note J SJ JMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ended June 30, 1999. 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 McIntosh 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 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
COMPOSffiON OF DEPOSITS Cash and cash equivalents consist ofdeposits 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
COMPOSffiON 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 of one 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 and equity investments 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:

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MCINTOSH crn JNTV BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENER AI PURPOSE F!NANCIAI STATEMENTS

TTJNE 30 1222

Note I: SUMMARY OF STGNTFTCANT ACCOUNTING POLICIES
(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 ofthe United States government,
(S) 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 ofother political subdivisions ofthe State ofGeorgia.
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 McIntosh County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 13, 1998 (levy date). Taxes were due on December 31, 1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The McIntosh County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.
The tax millage rate levied for the 1998 tax year (calendar year) for the McIntosh County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):
School Operations

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MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES IO THE GENERAL PJ JRPOSE FINANCIAL STATEMENTS

TTJNE 30 1222

Note t SUMMARY OF SIGNIFICANT ACCOUNTING POIJCIES
SALES TAXES
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $320,790.07 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $7,679,209.93 has been collected or on March 31, 2004, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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 FIXED ASSETS
During fiscal year 1999, the Board completed a comprehensive inventory of its general fixed assets. General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time ofpurchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Estimated historical cost is determined utilizing standard costing or normal costing. Standard costing is a known average installed cost for a like unit at the estimated acquisition date. The unit's age is estimated based on observed condition, manufacturer's name, model, serial number, age of the facility and other factors. Normal costing is estimated based on a present cost ofreproduction new indexed by a reciprocal factor of the price increase from the estimated date acquired to the appraisal date. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful Jives of the assets is not capitalized. Infrastructure assets are not capitalized by the Board.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements.
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cm MCINTOSH JNIY BOARD OF EDJ JCATION

EXHIBIT "D"

NOTES TO THE GENER AI PTJRPOSE FINANCIAL STATEMENTS

TIJNE3Q 1222

Note 1 SUMMARY Of SIGNTFICANT ACCOUNTING POLICIES
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Tenn Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
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 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
Note 2 DEPOSITS
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 ofinsurance, or by collateral. The aggregate of the face value ofsuch surety bond and the market value ofsecurities pledged shall be equal to not less than I IO percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-1 l(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one ofor 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,

- 11 -

MCINTOSH CQUNIY BO ARP OF EDUCATION

EXHIBIT "D"

NOTES IQ THE GENERAL PJJRPOSE FINANCIAL STATEMENTS

JUNE 30 l222 '

Note 2 DEPOSITS

(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 of the 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 ofthe 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 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, 1999, the bank balances were $3,134,411.86. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
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, 1999, as follows:

Rjsk Category

Bank Ba]ance

1 2 3
Total

$ 203,824.70 2,930,587.16
000
s 3 134 411 86

- 12-

MCTNTOSH cm JNJY BOARD OF EDT JCATION

EXHIBIT "D"

NOTES IQ THE GENERAL PJJRPQSE FTNANCJAJ STATEMENTS

nTNE 30 1222

Note 3 NON-MONETARY TRANSACTTQNS

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 GENERAL FIXED ASSETS

The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year:

Balance July I, 1998 Retroactive Restatement ofPrior
Year Balances Balance July I, 1998
Restated Additions Deletions Balance June 30, 1999
Note 5 RTSK MANAGEMENT

I.and
0.00

Buildinu

fquiweot

0.00 $

0.00

Total
0.00

400 801 J3 651518036 7 304 250 34 2 220 231 83

$ 400,801.13 $ 6,515,180.36 $ 2,304,250.34 $ 9,220,231.83

108,465.44

230,800.37

339,265.81

22 495 oo

7H2500

4~~21 u s ~ ~jJ ~~ Q $ i ~Ii ~~~-21 2~~ZQQi ~

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and natural disaster. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board 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 Joss 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:

-13 -

MCJNTOSH CmJNIY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PJ JRPOSE FINANCIAL STATEMENTS

DJNE 30 1999

Note 5 RISK MANAQEMENT

Beginning ofYear I iabjjjty

Claims and Changes in
Estimates

Claims Pajd

EndofYear I jabjjjty

1998

$

!H!Q $

moo $

moo $

000

1999

$

000 $

l 34Z 21 $

I 34121 $

!!.!.!!!

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 ofworkers' 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

Aml2llllt

Superintendent Each Principal

$ 100,000.00 $ 25,000.00

Note 6 ON-BEHAi F PAYMENTS

The Board has recognized revenues and expenditures in the amount of$157,489.42 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$131,447.42

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$26,042.00

Note 7 CONTINGENT I IABU ITIES

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.

- 14-

MCINTOSH COJ JNTY BOARD OF EDT JCATION

EXHIBIT "D"

NOTES TO THE GENERAi PURPOSE FINANCIAL STATEMENTS

TTJNE3o 1999

Note 8: ACCJJMJIT ATED EMPT OVERS' I EAVE

The Board's twelve month employees which have been employed for twelve full calendar months or more earn vacation leave at the rate of two weeks per year. After five years of consecutive service twelve month employees earn vacation leave at the rate of three weeks per year. Employees with over fifteen years of consecutive service earn vacation leave at the rate of four weeks per year. A maximum of one week of vacation leave can be carried forward to another year provided it is used within the first quarter of the new year. Upon retirement or termination of employment, unused accumulated vacation leave will be paid to the
employee at their current rate ofpay. See Note 1 - Compensated Absences

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.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage
Contributed

Required
Contribution

1999 1998 1997

100% 100% 100%

$ 748,510.53 $ 663,599.89 $ 604,253.19

- 15 -

ASSETS
Cash and Gash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

MQl!i[QSH QQLJNTY l!Qt.RQ QF !;Dl!QATIQN QOMBININ!, BAL ,!\NQI; iiiHEET SPECIAb Rl;llENL,!E FLJNQ JUNE 30 1999

EXHIBIT"E"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1999 JUNE 30 1998

$ 117,768.37 $

42,397.79

$ 160,166.16 $ 180,382.65

12,026.93

$ 162,966.70

174,993.63

87,477.27

18,849.52 6968.72

18,849.52 6 968.72

15,885.18 8 793.29

Total Assets

155,613.54 $

42,397.79 $ 162 966.70 $ 360,978.03 $ 292,538.39

~lll!!lblTIE:ii ,!\t:IQ El,!NQ EQU!lY

LIABILITIES

Gash Overdraft

Accounts Payable

$

Salaries Payable

Total Liabilities

$

fUNQ EQlllTY

Fund Balances

Reserved

For Inventories

Food

Donated Commodities

$

Purchased Food

Unreserved

Undeslgnated

Total Fund Equity

$

5,791.86 $ 26 874.45 32666.31 $
18,849.52 6,968.72 97128.99 $ 122 947.23 $

$ 8,460.83 33936.96
42397.79 $

103,535.64 $ 22,203.09 37 227.97
162966.70 $

103,535.64 $ 36,455.78 98 039.38
238030.80 $

37,880.35 51,940.66 88409.91
178~30.92

0.00 $ 0.00 $

$
0.00 0.00 $

18,849.52 $ 6,968.72
97128.99
122947.23 $

15,885.18 8,793.29
89629.00
114 307.47

Total Liabilities and Fund Equity

$ 155,613.54 $

42,397.79 $ 162~.70 $ 360,978.03 $ 292 538.39

See notes 1D lhe general purpose financial statemenls.

-16-

MCINTOSH COUNTY BOARD OF EDUCATION QOMelNIN~ lFAIEMENT QF R!;YENUES !;XPENDITlJE!,ES AND QHAN~ES IN FUND BALANCES
SPEQl,!,I REVl;NUE EUND XEiAB ENDED JUNE 30 1999

EXHIBIT"P

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

REVENUES

State Funds Federal Funds Other Funds

$

59,834.02 $ 329,657.79

$ 389,491.81 $ 385,026.33

572,424.48

$ 652,100.15 1,224,524.63 1,176,837.89

107,487.82

107,487.82

131 823.92

Total Revenues

$ 739 746.32 $ 329,657.79 $ 652 100.15 $ 1,721,504.26 $ 1 693,688.14

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services Food Services Operation
Capital Outiay

$ 290,417.14 $ 356,20025 $ 646,617.39 $ 674,399.06

$ 732,246.33

33,119.35 1,479.10
35324 2,543.99 1 745.78

42,155.34 117,198.73
7,720.14 60,473.85
1,501.85 74,986.28

75,274.69 118,677.83
7,720.14 60,473.85
1,855.09 77,53027 732,246.33
1745.78

30,408.36 56,089.56 81,027.23 53,980.36
1,974.08 75,684.86 764,650.06
7673.00

Total Expenditures

$ 732 246.33 $ 329658.60 $ 660236.44 $ 1 722141.37 $ 1745886.57

Excess of Revenues over (under) Expendlturas $

7,499.99 $

-0.81 $

-8,136.29 $

~7.11 $ -52,198.43

OTHER FINANQIN~ SOURQES

Operating Transfers In

0.81

8136.29

8137.10

516.02

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

7,499.99 $

0.00 $

0.00 $

7,499.99 $ -51,682.41

FUNQ BALANQE JULY l

114,307.47

0.00

0.00

114,307.47

169,277.20

Food Inventory Net Change In Period Donated Commodities Purchased Food

2,964.34 -1 824.57

2,964.34 -1 824.57

-4,278.58 991.26

EPNP BA!,ANQE JUNE 30

$ 1~947.23 $

0.00 $

0.00 $ 122 947.23 $ 114,307.47

See notes to the general purpose financial statements.

-17

MCINTOSH COUNTY BOARD OF EDUCATION
CHED!l~li; QF EI\F>ENDITURES OF FEDERAL AWARDl,
YEAR ENDED JUNE 30 1999

SCHEDULE "1"

FUNDING AGENCY PBOGRAM/GRANT

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass--Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant

10.553 10.555

NIA $ 143,883.78

NIA

376,144.00

(2) 679 849.63 (3)

Total Child Nutrition Cluster

520,027.78

679,849.63

Other Programs Pass--Through From Georgia Department of Education Food Distribution Program (1) Fresh Produce Program (1)
s. Total U. Department of Agriculture
s. Education, U. Department of
Special Education Cluster Pass--Through From Georgia Department of Education Individuals with Disabilities Education Act Part B Special Education Flow Through 1999 Grant Preschool 1999 Grant

10.550 10.550

NIA

29,530.98

NIA

22,865.72

s $ 572,424.48

29,530.98 22865.72
732246.33

84.027 84.173

NIA $ NIA

s 88,985.00
18974.89

96,856.73 (3) 18,974.89

Total Special Education Cluster

$ 107,959.89 $

115,831.62

Other Programs PassThrough From Georgia Department of Education Elementary and Secondary Education Act Title I
Grants to Local Educational Agencies
1999 Grant Tltie II
Eisenhower Professional Development 1999Grant
TltieVI Innovative Education Program Strategies 1999 Grant
Goals 2000 State and Local Education Systemic Improvement Grants 1999Grant
Vocational Education Basic Grants to States
High School Program Basic Grant 1999 Grant
TechPrep Education 1999 Grant
Total U. S. Department of Education

84.010 84.281 84.298 84.276
84.048 84.243

NIA

376,749.74

376,749.74

NIA

11,232.50

11,233.09 (3)

NIA

13,149.00

13,149.86 (3)

NIA

94,628.02

94,628.02

NIA

18,381.00

NIA

30,000.00

s 652100.15 $

18,632.94 (3) 30,011.17 (3) 660236.44

Total Federal Financial Assistance
NIA = Not Available

18

$ 1224524.63 $ 1392482.n

MCINTOSH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3Q 1999

SCHEDULE "1"

Ngtes to the Sphedule gf J;xpendihres nf Federal Awards
(1) The amounts shown for the Food Distribution Program and the Fresh Produce Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year,
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included in the 1999 National School Lunch Program.
(3) Expenditures for this program Include State, and/or Other Funds. Expenditures are not maintained by fund source.
r> Major Programs are identified by an asterisk in front of the CFDA number.
The Board did not provide Federal Assistan.ce to any Subrecipienl
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the McIntosh County Board of Education and Is presented on the modified acaual basis of accounting which is the same basis of accounting used In the presentation of the general purpose financial statements.

See notes to the general purpose financial statements.

-19-

MCINTOSH COUNTY BOARD OF EQIJCATION SCHEDULE OF STATE REVENUE VEAR ENQEQ II JNE 30 1999

SCHEDULE "Z'

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Local Assistance Grant

$

25,000.00

$

25,000.00

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-tern, Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Olher State Programs Apprenticeship Program At-Risk Summer School Program Heallh Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Program Student Record Year 2000 Project Funding Lottery Programs Assistive Technology Computers In lhe Classroom

3,782,103.00 572,664.00 278,765.00 165,844.00 46,914.00
1,079,623.00
262,528.00 77,330.00 96,739.00
137,223.00 150,641.00 42,093.00 161,354.00
15,371.00 28,842.00 -783,279.00 421,617.00
$
2,000.00 11,367.06 131,447.42 5,000.00 25,407.00 4,152.54
1,352.25 2,266.00

59,834.02
4,721.26 35,838.00

3,782,103.00 572,664.00 278,765.00 165,844.00 46,914.00
1,079,623.00
262,528.00 77,330.00 96,739.00
137,223.00 150,641.00 42,093.00 161,354.00 15,371.00 28,842.00 -783,279.00 421,617.00 59,834.02
2,000.00 11,367.06 131,447.42 5,000.00 25,407.00 4,152.54
1,352.25 2,266.00
4,721.26 35,838.00

Office of School Readiness Pre-Kindergarten Program

289,098.53

289,098.53

Office of Treasury and Fiscal Services Public School Employees Retirement

26,042.00

26,042.00

CONTRACTS Education, Georgia Department of Continuation of Department's Elementary School Foreign Languages Model Program In Todd Grant Elementary School Implementation of Aller - School Programs for Students In Grades 4-8 Georgia's Reading Challenge Implementation of Reading First Program for Students In Grades K-3

115,296.59
62,400.00 28710.00

115,296.59
62,400.00 28 710.00

See notes to lhe general purpose financial statements.

-20-

6 976 812.86 $

389 491.81 $ 7 366 304.67

MCINTOSH COUNlY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED IUNE 30 1999

SCHEDULE 3

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Student Transportation Services Other Support Services Facility Acquisition and Construction

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

TOTAL

4,721.26 $

35,838.00 $

249,857.88 $
33,119.35 1,479.10 353.24 2,543.99 1 745.78

290,417.14
33,119.35 1,479.10 353.24 2,543.99 1 745.78

Total Expenditures

$

4 721.26 $

35,838.00 $

289,099.34 $ 329,658.60

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

$ 259,927.62
4,721.26 35,838.00 29.171.72

$ 329,658.60

See notes to the general purpose financial statements.

-21-

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

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,960,730.00 $

179,035.00

$

4,838,717.38

356,134.25 $

$

5,194,851.63

309,438.76

-30,498.73

$

5,164,352.90

$

0.00 $

0.00

See notes to the general purpose financial statements. - 23 -

MCINTOSH COl/NJY BOARD OF EDUCATION
ANAi YSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS
YEAR fNQEP !UN~ 30 1999

GENERAL AND QAREER EDUCAIION PRO!,BA!,!S Kindergarten ()
Grades 1 3 r)
Sub-Total K-3 Grades 4 5 () Grades 6 8 (") Grades 9 - 12 () High School Laboratories () Vocational Education Laboratories ()
Total General and carae, Education Programs !iiPEC!.",I EQUCA]]ON eBOGRAM!ii
Regular Programs
r) category I r> catsgo!y II r) C318go!y ill
category IV {") Sub-Total Regular
C318go!y VI (Gill8d) {") Total Special Education Programs
REM!;Qli!al EIJUrarJQN ~BaM Cl
Total Fourteen Welgrted Pn,grams MEDIA CENTFB PROGRAMS
Salaries Operalicns
Total Media Centsr Programs
Total Fourteen Weigh1Eld and Madia Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL _jL

ORIGINAL

MID-TERM

426,973.00

$

1,154131.00

1,581,104.00 90

459,071.00 90

826,606.00 90

372,080.00 90

218,557.00 90

324685.00 90

3 782103.00

384,275.70 103!!,717.90 1,422,993.60
413,163.90 743,945.40 334,872.00 196,701.30 292216.50 3403892.70 $

0.00
0.00 56.509.00
2,845.00 46,000.00
105354.00

$

554,710.00

$

499,239.00 $

58,000.00

554,710.00 90

499,239.00

17954.00 90

16158.80

$

572684.00

515397.60

278765.00 90 $

250888.50 $

$ 4633 532.00

4170178.60 $

58,000.00
58000.00 0.00
161354.00

131,053.00 90 $

117,947.70

0.00

34 791.00 100

34 791.00

$

185844.00

$

152738.70 $

0.00

$ 4,799,378.00

$ 4,322,917.50 $

1614.00

STflF C!~QfMEfil: eBSlSzB~Y
Cost of Instruction Professional Dewlopmenl
Total S1aff Development Programs
r) Identifies Fourteen Weighted Programs.
See notes 1D the general pu,pooe financial .-men1s.

$

14,600.00

$

14,800.00 $

0.00

32114.00

32,114.00

0.00

$

s 46,914.00 100

46914.00 $

0.00

- 24

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

384,275.70

408,413.37

6,541.94 $

415,055.31

1038717.90

1110721.89

37,553.89

1,148,275.78

$ 1,422,993.60

1,519,135.26 $

44,195.83

1,563,331.09

0.00

469,Sn.90

572,158.66

23,557.71

595,716.37

0.00

743,945.40

829,227.21

61,576.74

890,803.95

0.00

337,717.00

343,965.03

58,969.31

402,934.34

0.00

242,701.30

238,507.25

10,087.23

248,594.48

0.00

292~16.50

274007.11

69 060.31

343 067.42

0.00

$ 3509~46.70 $ 3mooo.52

267447.13 $ 4044447.65

555,239.00
s

s
128,128.96
427,660.47
TT522.31

600.00 $ 2,109.05 32,573.34
2~1.01

600.00 130,238.01 460,233.81 79853.32

$

555,239.00 $

633,311.74 $

37,613.40 $

670,925.14

0.00

16158.60

16097.52

588.79

16686.31

0.00

571397.60 $

549409.26 $

38~02.19 $

687,!!11.45

250,888.50 $

262660.36 $

3789."4 $

266"49.80

0.00

$ 4331532.80 $ 4,689,070.14 $

309438.76 $ 4 998.508.90

117,947.70 $

149,547.24

149,547.24

0.00

34 791.00

$

46695.49

46,695.49

0.00

$

152738.70 $

149547.24 $

46895.49

196342.73

$ 4,484,271.50 $ 4 838 717.38 $

356,134.25 $ 5194,851.63 $

0.00

14,800.00 32114.00
s_ _46=9.,14_.oo_

"4,505.15 2531."4

"4,505.15 2531."4

47036.59 $

47,036.59 s_ _ _ _ _ _o_.oo_

25

SECTIONil 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
May26,2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the McIntosh County Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAI CONTROL QVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT ATmITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofMcIntosh County Board ofEducation as ofand for the year ended June 30, 1999, and have issued our report thereon dated May 26, 2000. 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 Audjtjng Standards issued
by the Comptroller General ofthe United States.
Cornp)jance
As part of obtaining reasonable assurance about whether McIntosh County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results
of our tests disclosed no instances of noncompliance that are required to be reported under Government Audjting Standards.
Internal Control Oyer Fjnancja) Reporting
In planning and performing our audit, we considered McIntosh County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose
99YB-10

all matters in the internal control over financial reporting 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 the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.

This report is intended solely for the information and use ofmanagement, members of the McIntosh County Board of Education, 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:jb 99YB-10

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State Auditor

w. RUSSELL HINTON
STATE AUDITOR
{404) 556-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May26,2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe McIntosh County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of McIntosh County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. McIntosh County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of McIntosh County Board of Education's management. Our responsibility is to express an opinion on McIntosh 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 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the McIntosh County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on McIntosh County Board ofEducation's compliance with those requirements.

99SA-10

In our opinion, the McIntosh County Board of Education 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, 1999.
Internal Control Oyer Compjjance
The management of McIntosh County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered McIntosh County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members of the McIntosh 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,
~~'!L_l<'.I.~
State Auditor
RWH:jb 99SA-10

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

MCINTOSH COJTNTY BOARD Of EDUCATION AIJDITEE'S RESPONSE
SJ JMMARY SCHEDJ JLE QF PRIOR VEAR FINDINGS ANJ2 OJ JESTIONED COSTS VEAR ENDED JJJNE 30 I 999

PRIDR VEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6981-96-01 FS-6981-97-01 FS-6981-98-01

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

MCINTOSH COUNTY BOARD OF EDJJCATIQN SCHErnrr E OF FINDTNGS ANQ rnrnsTTQNED COSTS
YEAR ENDED JJJNE 30 1222
SUMMARY OF AUDITOR'S RESrn:rs
1. Type of Report Issued on the financial Statements
The auditor's opinion on the McIntosh County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Renortah]e Conditions in Internal Control Disc)osed by the Audjt of the financial Statements
The audit report for the McIntosh County Board of Education did not disclose any reportable conditions related to the financial statements.
3. Noncomp]jance MaterjaJ to the financial Statements
The audit of the McIntosh County Board of Education disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Oyer Major Programs
The audit report for the McIntosh 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 McIntosh County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audjt findings Required tobe Reported by Section SJOla} ofOMB CjrcuJ;rr A-)33
The McIntosh 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
8. Type "A" Program Donar Threshold
The dollar threshold for type "A" programs was $300,000.00.
9. Low Rjsk Audjtee
The McIntosh County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
n FINANCIAi STATEMENT FINDINGS AND ill!ESTIQNED COSTS
No matters were reported.
m FEDERAL AWARD FINDINGS AND ill!ESTIQNED COSTS
No matters were reported.