STATE OF GEORGIA 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
 
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MADISON COUNTY BOARD OF EDUCATION 
DANIELSVILLE, GEORGIA 
 
REPORT ON AUDIT 
 
OF THE FINANCIAL STATEMENTS 
 
FOR THE FISCAL YEAR ENDED JUNE 30, 2000 
 
 
 
Russell W. Hinton State Auditor 
 
 MADISON 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 
 
ADDIDONAL 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 
18 
20 22 
23 
24 
25 
26 28 
29 
 
 MADISON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
SCHEDULES 
 
ADDITIONAL FINANCIAL INFORMATION 
 
ANALYSIS OF ,.I.Ll 
 
EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
4 
 
OVERALL 
 
5 
 
BYPROGRAM 
 
Page 
31 32 
 
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 ill 
 
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
s 
 
V.LJ"l..l'\.y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I 
FINANCIAL 
 
 w. RUSSELL 
 
HINTON 
 
STATE AUDITOR 
 
(404) 656-2174 
 
o> G 
 
 
,..,.'_<.I:f;: 
 
-.C) 
 
........... J 1 7 b 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WashingtcJn Street. S.W., Suite 214 Atlanta, Georgia 30334-8400 
 
January 31, 2001 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Madison County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general purpose financial statements of the Madison 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 of the Madison County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo1111 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 ofthe 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 confo11n 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 confo11n to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
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 of the Madison County Board of Education as ofJune 30, 2000, and the results ofits 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 January 31, 2001, on our consideration of the Madison County Board of Education'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 perfo1111ed 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 perfo11ned for the purpose of fo11ning an opinion on the general purpose financial statements of the Madison County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, 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 ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 
A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- 
6-24. 
 
RWH:jb 2000ARL-13 
 
Rus ell W. Hinton Sta e Auditor 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
 
 
JUNE 30, 2000 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of: Bond Debt . Capital Lease Agreements 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 
 
977.101.46 $ 391,427.84 $ 
 
66,307.71 
 
2,536,599.55 
 
259,142.60 
 
129,593.80 
 
32,761.58 10,184.98 
 
Total Assets 
 
' 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable 
 
Total Liabilities 
 
FUND EQUITY 
 
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of Other Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated 
 
Total Fund Equity 
 
$ 3,513,701.01 $ 693,517.00 $ ==1=9=5=9=0=1.=5===1 
 
$ 
 
714,620.81 $ 
 
2,402,322.34 
 
468.56 
 
70,757.31 249,695.17 
806.00 
$ 
 
195,388.00 
 
$ 
 
s_ _ 321 1258.48 
 
"""19'""5""',3. c.88"""."'"o_o_ 
 
$ 
 
114,635.09 
 
33,750.00 $ 
 
75,000.00 
 
469.43 
 
32,761.58 10,184.98 
$ 
 
513.51 
 
247,434.78 
 
254,311.96 
 
0.00 
 
$ 
 
396,289.30 $ 372,258.52 $ ----'5'-'1.;;,.3.;.;:,5.,;,_1 
 
Total Liabilities and Fund Equity 
 
$ 3,513,701.01 $ 693,517.00 $ ==-=1=9=5=,9=01=.5=1== 
 
The notes to the general purpose financial statements are an integral part of this statement. 
-2- 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
$ 1,894,753.68 
267,660.26 
 
ACCOUNT GROUP 
GENERAL LONG-TERM 
DEBT 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2000 
 
JUNE 30, 1999 
 
$ 3,329,590.69 $ 7,236,580.09 
 
3,192,996.21 
 
2,713,912.84 
 
$ 2,162,413.94 
 
32,761.58 10,184.98 
2,162,413.94 
 
35,396.52 10,468.35 
1,712,631.53 
 
6,992,586.06 236,046.63 
 
6,992,586.06 236,046.63 
 
8,512,368.47 269,927.76 
 
$ 2, 162,413.94 $ 9,391,046.63 $ 15,956,580.09 $ 20,491,285.56 
 
$ 
 
785,378.12 $ 
 
702,540.11 
 
2,652,017.51 
 
2,688,048.20 
 
1,274.56 
 
7,371.76 
 
535,329.02 
 
$ 
 
236,046.63 
 
195,388.00 236,046.63 
 
182,047.00 269,927.76 
 
9,155,000.00 
 
9,155,000.00 
 
10,225,000.00 
 
$ 9,391,046.63 $ 13,025,104.82 $ 14,610,263.85 
 
$ 2,162,413.94 
0.00 $ 2,162,413.94 
 
$ 
 
114,635.09 
 
$ 
 
22,428.76 
 
108,750.00 
 
2,162,413.94 
 
1,712,631.53 
 
469.43 
 
21,853.87 
 
32,761.58 10,184.98 
513.51 
 
35,396.52 10,468.35 2,540,232.01 
 
501,746.74 
 
1,538,010.67 
 
$ 2,931,475.27 $ 5,881,021.71 
 
$ 2, 162,413.94 $ 9,391,046.63 $ 15,956,580.09 $ 20,491,285.56 
-3- 
 
 MADISON 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 Central Support Services Other Support Services Food Services Operation Community Services Operations 
Capital Outlay Debt Service 
Principal Interest Payi!"lg Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Capital Leases 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 
 
$ 17,688,890.58 $ 
4,352,051.76 546,616.70 
 
333,623.82 2,330,123.97 
649,238.37 
 
$ 22,587,559.04 $ _...,;3::..z.,3::..1:..:2=,9;.:.86=.:...:16:c.. 
 
$ 16,381,844.28 $ 
650,878.93 494,244.56 711,475.84 590,329.02 1,310,787.33 
83,502.59 1,591,724.53 1,075,966.79 
45,073.42 105,795.64 20,680.59 
290,131.28 
50,256.13 73,804.09 
 
1,532,860.12 
37,461.06 75,235.68 
25,473.62 199.80 
3,676.93 33,979.50 49,316.25 1,530,678.90 
8,235.36 
 
$ 23,476,495.02 $ ___3,=2""'97'-'-'-11""'7..;.:.2=2'-- 
 
$ 
 
-888,935.98 $ _ _..,;1c::;5.L::,8.::,;68:.:;.9:.4:.. 
 
$ 
 
16,375.00 
 
$ 
 
-23,955.81 
 
23,955.81 
 
$ 
 
-7,580.81 $ _ __;;2=3=,9-=-55=.8=--1'- 
 
$ 
 
-896,516.79 $ 
 
1,292,806.09 
 
39,824.75 335,352.08 
 
-2,634.94 -283.37 
 
FUND BALANCE JUNE 30 
 
$ 
 
396,289.30 $ _ _3;;.;7_2,_,2;,;.,58=.5=-2-= 
 
The notes to the general purpose financial statements are an integral part of this statement. 
-4- 
 
 EXHIBIT "B" 
 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2000 
 
JUNE 30, 1999 
 
$ 1,295,938.00 
 
$ 19,318,452.40 $ 17,266,760.12 
 
2,330, 123.97 
 
2,142,861.55 
 
$ 1,930,744.97 
 
6,282,796.73 
 
5,651,089.40 
 
57 476.70 
 
25,023.98 
 
1,278,355.75 
 
1,258,040.83 
 
$ 1,353,414.70 $ 1,955,768.95 $ 29,209,728.85 $ 26,318,751.90 
 
$ 
 
51.70 
 
3,893,081.50 
$ 
$ 3,893,133.20 $ 
$ -2,539,718.50 $ 
 
$ 
1,070,000.00 429,119.98 6,866.56 
1,505,986.54 $ 
449 782.41 $ 
 
17,914,704.40 $ 
688,339.99 569,480.24 711,475.84 615,802.64 1,310,987.13 83,554.29 1,591,724.53 1,079,643.72 79,052.92 155,111.89 1,551,359.49 
8,235.36 4,183,212.78 
1,120,256.13 502,924.07 6,866.56 
32,172,731.98 $ 
-2,963,003.13 $ 
 
16,383,232.33 
613,463.43 609,683.69 674,622.91 378,494.03 1,336,971.69 
95,411.17 1,557,332.36 1,158,328.15 
224,418.70 158,516.21 1,521, 189.80 
8,875.59 2,785,648.91 
272,978.14 571,727.28 
5,025.12 
28,355,919.51 
-2,037, 167.61 
 
$ 
 
16,375.00 
 
23,955.81 $ 
 
-23,955.81 
 
6,934.11 -6 934.11 
 
$ 
 
16,375.00 $ _____o._oo_ 
 
$ -2,539,718.50 $ 2,540,232.01 
 
449,782.41 $ 
1,712,631.53 
 
-2,946,628.13 $ 
5,881,021.71 
 
-2,037, 167.61 7,909,638.13 
 
-2,634.94 -283.37 
 
7,914.29 636.90 
 
$ 
 
513.51 $ 2, 162,413.94 $ 2,931,475.27 $ 5,881,021.71 
 
-5- 
 
 MADISON 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 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations 
Capital Outlay Debt Service 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
 
FUND BALANCE JULY 1. 1999 
Adjustments Food Inventory - Net Change in Period 
Donated Commodities Purchased Food 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 16,957,997.55 $ 17,688,890.58 
 
4, 188,000.00 358,357.00 
 
4,352,051.76 546,616.70 
 
$ 21,504,354.55 $ 22,587,559.04 
 
$ 15,670,599.42 $ 16,381,844.28 
 
610,845.86 475,936.85 685,131.03 476,739.42 1,435,889.14 
94,216.36 1,746,727.35 1,062,396.65 
44,313.00 7,568.00 
22,045.68 
 
650,878.93 494,244.56 711,475.84 590,329.02 1,310,787.33 
83,502.59 1,591,724.53 1,075,966.79 
45,073.42 105,795.64 
20,680.59 
 
600,000.00 
 
290,131.28 124,060.22 
 
$ 22,932,408.76 $ 23,476,495.02 
 
$ -1,428,054.21 $ -888,935.98 
 
$ 
 
16,375.00 
 
-23,955.81 
 
$ -1,428,054.21 $ -896,516. 79 
 
2,231,120.62 
 
1,292,806.09 
 
-97,466.03 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 
 
362,719.82 $ 
 
333,623.82 
 
2,263,789.00 
 
2,330,123.97 
 
553,185.05 
 
649,238.37 
 
$ 3,179,693.87. $ 3,312,986.16 
 
$ 1,249,352.36 $ 1,532,860.12 
 
47,572.00 184,389.00 
3,959.00 15,515.91 
 
37,461.06 75,235.68 
25,473.62 199.80 
 
4,416.00 42,500.00 30,888.55 1,586,591.37 12,000.00 
 
3,676.93 33,979.50 49,316.25 1,530,678.90 
8,235.36 
 
$ 3177184.19 $ 3,297,117.22 
 
$ 
 
2,509.68 $ _ __,_1,,.5.::.86:::,:8::;.;.9::..4:.... 
 
$ 
 
23,955.81 
 
$ ----'2,:,3,c9:.,:5c:o5.::.8-"--1 
 
$ 
 
2,509.68 $ 
 
39,824.75 
 
339,974.65 
 
335,352.08 
 
-31,882.40 
 
-2,634.94 -283.37 
 
FUND BALANCE JUNE 30, 2000 
 
$ 
 
705,600.38 $ _.....,396....,,2_8_9.,..30_, 
 
$ 
 
The notes to the general purpose financial statements are an integral part of this statement. -7 - 
 
 MADISON 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 Madison County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall 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 confo11n 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 confo1111 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- 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2000 
 
Note 1: 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-te11n 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 and capital lease obligations. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is dete1n1ined 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-Te11n 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 dete11nined 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 substantial number of personnel of the Board were employed for a one hundred and ninety day 
period beginning in late August of 1999 and ending in early June 2000. Employment contracts for 
these employment periods typically 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 
-9- 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
ruNE 30, 2000 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance  with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these 
financial statements. 
BUDGET 
The Madison 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. 
RECEIVABLES 
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infu11nation 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 Madison County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 15, 1999 (levy date). Taxes were due on February 10, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 
- 10 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2000 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
60 days after year-end are reported as revenue in fiscal year 2000. The Madison County Tax Commissioner bills and collects the property taxes for the Board of Education. 
 
Tax millage rates levied for the 1999 tax year (calendar year) for the Madison County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations School Bonds 
 
11.12 mills 1.19 mills 
 
SALES TAXES 
 
12.31 mills 
 
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 $1,444,040.93 and was recorded in the Debt Service Fund. The State will tenninate collection of this tax once an additional $4,680,156.62 has been collected or on March 31, 2003, 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 ofnet current assets. 
 
GENERAL OBLIGATION BONDS 
 
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. 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-T\;ttn Debt Account Group. 
 
- 11 - 
 
 MADISON 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 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 ofoperations 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 
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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa 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 requirem~nt 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, 
 
- 12 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2000 
 
Note 2: DEPOSITS 
 
(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 ofthe State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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 $4,895,888.72. 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 
 
Bank Balance 
 
1 
 
$2,089,817.81 
 
2 
 
2,436,091.38 
 
3 
 
369,979.53 
 
Total 
 
$ 4,895,888.72 
 
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  
 
- 13 - 
 
 MADISON COUNTY BOARD' OF EDUCATION 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2000 
 
EXHIBIT "D" 
 
Note 4: RISK MANAGEMENT 
 
The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The Board has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to these risks in the past three years. 
 
The B~ard is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
1999 2000 
 
Beginning 
of Year 
Liability 
 
Claims and Changes in Estimates 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
$ 
 
0.00 $ 
 
8,391.00 $ 
 
Claims Paid 
 
End of Year 
Liability 
 
0.00 $_ _----.:0=.0=0 8,391.00 $_ ____;0::.:..;.0::..=.0 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
All Employees 
 
$ 100,000.00 
 
Note 5: GENERAL LONG-TERM DEBT 
 
CAPITAL LEASES The Madison County Board of Education has entered into various lease agreements as lessee for a vehicle and office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. 
 
- 14 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2000 
 
Note 5: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 1997 
 
3.75% - 4.05% $ 4,200,000.00 
 
General Government - Refunding - Series 1993 2.75% - 5.50% 
 
4,955,000.00 
 
$ 9,155,000.00 
 
The changes in General Long-Ter111 Debt during the fiscal year ended June 30, 2000, were as follows: 
 
Balance July 1, 1999 
Additions Capital Leases 
Deductions Payments Debt Retired 
Balance June 30, 2000 
 
Capital Leases 
 
General Obligation 
Bonds 
 
Total 
 
$ 269,927.76 $10,225,000.00 $10,494,927.76 
 
16,375.00 
 
16,375.00 
 
50,256.13 
 
1,070,000.00 
 
50,256.13 1,070,000.00 
 
$ 236,046.63 $ 9,155,000.00 $ 9,391,046.63 
 
At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ending June 30 
2001 2002 2003 2004 2005 2006 - 2010 2011 - 2012 
Total Principal and Interest 
Deduct: Imputed Interest 
Net Present Value of Future Minimum Lease Payments 
 
Capital . Leases 
 
General Obligation 
Bonds 
 
Total Debt 
 
$ 124,060.22 $ 1,595,405.00 $ 1,719,465.22 
 
124,060.24 1,714,565.00 1,838,625.24 
 
98,550.00 1,776,725.00 1,875,275.00 
 
1,661,226.25 1,661,226.25 
 
552,526.25 
 
552,526.25 
 
2,776,986.25 2,776,986.25 
 
1,108,320.00 1,108,320.00 
 
$ 346,670.46 $11,185,753.75 $ 11,532,424.21 
 
110,623.83 
 
$.=236,046.63 
 
- 15 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2000 
 
Note 6: ON-BEHALF PAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of $387,954.59 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $302,991.73 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $19,735.86 
 
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 $65,227.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
. 
The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000. 
 
Pro-iect  
Lottery Project OOG-995-695-050 
 
Unearned Executed Contracts 
$ 64,886.98 
 
The amounts described in this note are not reflected in the general purpose financial statements. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. 
 
The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfu11nance of routine Board operations. The ultimate disposition of these proceedings is not presently dete11ninable, but is not believed to be material to the general purpose financial statements. 
 
- 16 - 
 
 MADISON COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2000 
 
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% 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 
 
Percentage Contributed 
 
Required Contribution 
 
2000 1999 1998 
 
100% 100% 100% 
 
$ 1,708,196.46 $ 1,682,729.72 $ 1,494,558.07 
 
 
 
- 17 - 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND 
JUNE 30, 2000 . 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
 
LOTTERY PROGRAMS 
 
$ 
 
379,302.38 $ 
 
0.00 
 
3,107.69 
 
32,761.58 10 184.98 
 
Total Assets 
 
$ 
 
425,356.63 $ =====0=00= 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Continuation of Other Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
27,861.05 
 
100,237.06 
 
$ _ _.:.;12:.:8:.i.;0, ::.:9:.:8~1. ~1- 
 
$ 
 
32,761.58 
 
10,184.98 
 
254,311.96 $ _ _ _ _o::.:..=.:oo=-- 
 
$ 
 
291,2s8.s2 $ _ _ _ _o::.:..=.:oo=-- 
 
Total Liabilities and Fund Equity See notes to the general purpose financial statements. 
- 18 - 
 
$ 
 
425,356.63 $ ====0==00= 
 
 EXHIBIT "E" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
JUNE 30, 2000 
 
JUNE 30, 1999 
 
$ 
 
75,000.00 $ 
 
454,302.38 $ 
 
370,144.16 
 
$ 
 
256,034.91 
 
259,142.60 
 
179,542.10 
 
32,761.58 10,184.98 
 
35,396.52 10,468.35 
 
$ 
 
256,034.91 $ 
 
75,000.00 $ 
 
756,391.54 $ ==5=9=5==,5=5=1.=13= 
 
 
 
$ 
 
62,874.54 
 
42,896.26 
 
149,458.11 
 
806.00 
 
$ --=25;..;;6.:..;;0,...;..3_4._9__1 
 
$ 
 
62,874.54 
 
70,757.31 $ 
 
49,015.39 
 
249,695.17 
 
203,818.76 
 
806.00 
 
7,364.90 
 
$ 
 
384,133.02 $ _ _.;.;.26;..;0_._1,..c.9.;.;9._0_5~ 
 
$ 
 
$ _ _ _ _.;;;;.;0."'-00;;;_ 
 
$ 
 
0.00 $ 
 
75,000.00 $ 
 
$ 
75,000.00 
 
22,428.76 21,384.44 
 
0.00 75,000.00 $ 
 
32,761.58 10,184.98 
 
35,396.52 10,468.35 
 
254,311.96 
 
245,674.01 
 
372,258.52 $ ___33_5.._,3_5_2._08_ 
 
$ 
 
256,034.91 $ 
 
75,000.00 $ 
 
756,391.54 $ ====59==5=,5=5==1.==13= 
 
- 19 - 
 
 MADISON 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 Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations 
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 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
124,416.00 $ 
 
126,983.82 
 
840,662.48 
 
574,238.37 
 
$ 1,539,316.85 $ _ _..;.;;12=6=9,=8=3=82;;;;... 
 
$ 
 
126,983.82 
 
$ 1,530,678.90 
 
$ 1,530,678.90 $ _ _.:.;:12=6=,9=8=3=82:c.... 
 
$ 
 
8,637.95 $ 
 
0.00 
 
0.00 
 
0.00 
 
$ 
 
8,637.95 $ 
 
0.00 
 
291,538.88 
 
0.00 
 
-2,634.94 -283.37 
 
FUND BALANCE JUNE 30 
See notes to the general purpose financial statements. 
- 20- 
 
$ 297,258.52 $ =====o..o..o= 
 
 EXHIBIT "F" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2000 
 
JUNE 30, 1999 
 
$ 
$ 1,489,461.49 
$ 1,489,461.49 $ 
 
82,224.00 $ 75,000.00 157,224.00 $ 
 
333,623.82 $ 2,330,123.97 
649,238.37 
3,312,986.16 $ 
 
330,910.77 2,142,854.55 
536,813.71 
3,010,579.03 
 
$ 1,324,992.46 $ 
 
37,461.06 73,858.45 
 
25,473.62 199.80 
3,676.93 33,979.50 49,316.25 
 
8,235.36 
 
$ 1,557,193.43 $ 
 
$ 
 
-67,731.94 $ 
 
80,883.84 $ 1,377.23 
82,261.07 $ 74,962.93 $ 
 
1,532,860.12 $ 
37,461.06 75,235.68 
25,473.62 199.80 
3,676.93 33,979.50 49,316.25 1,530,678.90 
8,235.36 
3,297,117.22 $ 
15,868.94 $ 
 
1,225,489.68 
28,240.98 118,895.31 
3,148.57 20,127.18 
100.00 1,123.21 33,038.00 27,794.93 1,499,481.98 8,875.59 
2,966,315.43 
44,263.60 
 
23,918.74 
 
$ 
 
-43,813.20 $ 
 
43,813.20 
 
37.07 
 
23,955.81 
 
6,934.11 
 
75,000.00 $ 0.00 
 
39,824.75 $ 335,352.08 
 
51,197.71 275,603.18 
 
-2,634.94 -283.37 
 
7,914.29 636.90 
 
$ 
 
0.00 $ 
 
75,000.00 $ 
 
372,258.52 $ ===33=5=,3=5=2.=08= 
 
- 21 - 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 
 
EXHIBIT "G" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
 
BOND PROCEEDS 
 
LOTTERY PROJECT 
 
TOTALS JUNE 30, 2000 JUNE 30, 1999 
 
$ 
 
513.51 $ 
 
65,794.20 $ 
 
66,307.71 $ 3,257,608.03 
 
129,593.80 
 
129,593.80 
 
Total Assets 
 
$ 
 
513.51 $ 195,388.00 $ 195,901.51 $ 3,257,608.03 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Contracts Payable Retainages Payable 
 
Total Liabilities 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Purposes of Bond Issue 
 
$ 
 
Unreserved 
 
Undesignated 
 
Total Fund Equity 
 
$ 
 
$ 535,329.02 
 
$ 195,388.00 $ 195,388.00 
 
182,047.00 
 
$ 195,388.00 $ 195,388.00 $ 717,376.02 
 
513.51 
 
$ 
 
513.51 $ 2,540,232.01 
 
0.00 $ - - - -0.0-0 - - - ~0.~ 00 
 
0.00 
 
513.51 $ 
 
0.00 $ ------"5-'-13;;;..;..5.;..1;... $ 2,540,232.01 
 
Total Liabilities and Fund Equity $ 
 
513.51 $ 195,388.00 $ 195,901.51 $ 3,257,608.03 
 
 
 
See notes to the general purpose financial statements. 
 
-22- 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 
 
EXHIBIT "H" 
 
BOND PROCEEDS 
 
LOTTERY PROJECT 
 
TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 
 
REVENUES 
 
State Funds Other Funds 
 
$ 1,295,938.00 $ 1,295,938.00 
 
$ 
 
42,261.95 
 
15,214.75 
 
57 476.70 $ 242,090.09 
 
Total Revenues 
 
$ 
 
42,261.95 $ 1,311,152.75 $ 1,353,414.70 $ 242,090.09 
 
EXPENDITURES 
 
Current Support Services Business Administration 
Capital Outlay Land and Land Improvements Building and Building Improvements 
 
$ 
 
51.70 $ 
 
51.70 
 
$ 703,639.87 
 
3,189,441.63 
 
$ 
 
850.00 
 
3,893,081.50 
 
2,346,337.37 
 
Total Expenditures 
 
$ 703,639.87 $ 3,189,493.33 $ 3,893,133.20 $ 2,347,187.37 
 
Excess of Revenues over (under) Expenditures 
 
$ -661,377.92 $ -1,878,340.58 $ -2,539,718.50 $ -2,105,097.28 
 
OTHER FINANCING SOURCES (USES} 
 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
 
$ 1,878,340.58 $ 1,878,340.58 $ 1,302,444.06 
$ -1,878,340.58 - - - - - -1,878,340.58 -1,302,444.06 
 
$ -1,878,340.58 $ 1,878,340.58 $ 
 
0.00 $ _ _ _ _0"".0""0'- 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -2,539,718.50 $ 
 
0.00 $ -2,539, 718.50 $ -2, 105,097.28 
 
FUND BALANCE JULY 1 
 
2,540,232.01 
 
0.00 
 
2,540,232.01 
 
4,645,329.29 
 
FUND BALANCE JUNE 30 
 
$ 
 
513.51 $ 
 
o.oo $ _ __.5._1_3._51_ $ 215401232.01 
 
See notes to the general purpose financial statements. 
 
-23- 
 
 MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 
 
EXHIBIT "I" 
 
ASSETS Cash and Cash Equivalents Accounts Receivable 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 2000 
 
JUNE 30, 1999 
 
$ 
 
338,994.69 $ 1,555,758.99 $ 1,894,753.68 $ 1,477,028.34 
 
24,236.72 
 
243,423.54 
 
267,660.26 
 
235,603.19 
 
Total Assets 
 
$ 
 
363,231.41 $ 1,799,182.53 $ 2,162,413.94 $ 1,712,631.53 
 
FUND EQUITY 
Fund Balances Reserved For Debt Service Unreserved Undesignated 
 
$ 
 
363,231.41 $ 1,799,182.53 $ 2,162,413.94 $ 1,712,631.53 
 
0.00 
 
0.00 
 
0.00 
 
0.00 
 
Total Fund Equity 
 
$ 
 
363,231.41 $ 1,799,182.53 $ 2,162,413.94 $ 1,712,631.53 
 
See notes to the general purpose financial statements. 
- 24- 
 
 MADISON 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 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 
 
Taxes Other Funds 
Total Revenues 
EXPENDITURES 
 
$ 
 
486,704.04 $ 1,444,040.93 $ 1.930,744.97 $ 1,787,236.02 
 
5,860.20 
 
19,163.78 
 
25,023.98 
 
17 797.31 
 
$ 
 
492,564.24 $ 1,463,204.71 $ 1,955,768.95 $ 1,805,033.33 
 
Current 
 
Support Services 
 
Business Administration 
 
Debt Service 
 
Principal 
 
$ 
 
Interest 
 
Paying Agent Fees 
 
Total Expenditures 
 
$ 
 
Excess of Revenues over (under) Expenditures $ 
 
FUND BALANCE JULY 1 
 
270,000.00 $ 247,992.50 
3,691.56 
521,684.06 $ 
-29, 119.82 $ 
392,351.23 
 
800,000.00 $  181,127.48 
3,175.00 
984,302.48 $ 
478,902.23 $ 
1,320,280.30 
 
$ 
 
1,191.22 
 
1,070,000.00 429,119.98 6,866.56 
 
240,000.00 486,445.42 
5,025.12 
 
1,505,986.54 $ _ __,;7c...;:3c=2L.a,6..:;.6~1-~76c... 
 
449,782.41 $ 1,072,371.57 
 
1,712,631.53 
 
640,259.96 
 
FUND BALANCE JUNE 30 
 
$ 
 
363,231.41 $ 1,799,182.53 $ 2,162,413.94 $ 1,712,631.53 
 
I 
 
See notes to the general purpose financial statements. 
 
- 25- 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2000 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
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 National School Lunch Program 
 
 10.553  10.555 
 
N/A 
 
$ 
 
N/A 
 
204,628.88 545,326.71 $ 
 
(2) 
1,439,972.01 (3) 
 
Total Child Nutrition Cluster 
 
$ 
 
749,955.59 $ 1,439,972.01 
 
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 
 
10.550 
 
N/A 
 
90,706.89 
 
90,706.89 
 
Total U. S. Department of Agriculture 
 
$ 
 
840,662.48 $ 1,530,678.90 
 
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 Capacity Building Improvement Grant 
 
84.027 84.173 84.173 
 
NIA 
 
$ 
 
420,613.79 $ 
 
NIA 
 
55,987.10 
 
NIA 
 
14,920.00 
 
422,829.56 (3) 56,295.66 (3) 14,920.00 
 
Total Special Education Cluster 
 
$ 
 
491,520.89 $ 
 
494,045.22 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Elementary and Secondary Education Act 
 
Title I Grants to Local Educational Agencies 
 
 84.010 
 
Title II 
 
Eisenhower Professional Development 
 
84.281 
 
Title VI 
 
Innovative Education Program Strategies 
 
84.298 
 
Class Size Reduction 
 
84.340 
 
Goals 2000 
 
State and Local Education Systemic Improvement Grants 
 
84.276 
 
Technology Literacy Challenge Fund Grants 
 
84.318 
 
Safe and Drug-Free Schools and Communities 
 
84.186 
 
Vocational Education - Basic Grants to States 
 
High School Program 
 
Basic Grant 
 
84.048 
 
Total U. S. Department of Education 
 
NIA 
 
678,386.73 
 
704,304.51 (3) 
 
NIA 
 
19,666.18 
 
19,684.68 (3) 
 
N/A 
 
27,046.00 
 
27,046.00 
 
N/A 
 
98,762.00 
 
113,523.69 (3) 
 
NIA 
 
110,955.00 
 
110,960.35 (3) 
 
N/A 
 
1,414.77 
 
1,609.38 (3) 
 
NIA 
 
17,714.26 
 
17,714.26 
 
NIA 
 
44,735.06 
 
46,618.48 (3) 
 
$ 1,490,200.89 $ 1,535,506.57 
 
Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Family Connection 
 
93.778 
 
NIA $ 
 
-739.40 $ 
 
21,686.86 (3) 
 
Total Federal Financial Assistance 
N/A = Not Available 
 
$ 2,330, 123.97 $ 3,087,872.33 
 
-26- 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2000 
Notes to the Schedule of Expenditures of Federal Awards 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained 
separately and are included in the 2000 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. 
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 Madison County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. 
 
SCHEDULE "1" 
 
 
 
See notes to the general purpose financial statements. 
 
-27- 
 
 MADISON 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 Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom Exceptional Growth-Capital OuUay 
Georgia Department of Community Affairs Local Assistance Grant 
Office of Treasury and Fiscal Services Public School Employees Retirement 
CONTRACTS Education, Georgia Department of Reading First Program Grades K-3 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 9,823,667.00 
2,677,654.00 248,946.00 429,696.00 122,792.00 
2,701,184.00 
668,285.00 203,125.00 301,079.00 
67,355.00 110,914.00 43,401.00 
57,685.00 -1,883,915.00 -2, 133,535.00 2,276, 193.00 1,383,876.00 
$ 2,172.00 
71,825.00 1,847.48 
14,907.97 750.00 
302,991.73 7,614.00 
62,882.00 4,658.04 19,735.86 17,127.50 
 
$ 9,823,667.00 
2,677,654.00 248,946.00 429,696.00 122,792.00 
2,701,184.00 
 
124,416.00 
 
668,285.00 203,125.00 301,079.00 
67,355.00 110,914.00 43,401.00 57,685.00 -1,883,915.00 -2, 133,535.00 2,276,193.00 1,383,876.00 124,416.00 
2,172.00 
 
71,825.00 1,847.48 
14,907.97 750.00 
302,991.73 7,614.00 
62,882.00 4,658.04 19,735.86 17,127.50 
 
24,927.82 102,056.00 
$ 
 
1,295,938.00 
 
24,927.82 102,056.00 1,295,938.00 
 
18,750.00 
 
18,750.00 
 
65,227.00 
 
65,227.00 
 
82,224.00 
 
82,224.00 
 
$ 17,688,890.58 $ 
 
333,623.82 $ 1,295,938.00 $ 19,318,452.40 
 
See notes to the general purpose financial statements. 
 
-28- 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 2000 
 
SCHEDULE "3" 
 
PROJECT 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS 
 
Retiring a portion of the previously incurred 
 
1993 general obligation debt of the school 
 
district of not more than $1,625,000.00 
 
$ 1,625,000.00 $ 
 
1,625,000.00 $ 
 
0.00 $ 
 
0.00 
 
Addition to and the renovation, repair, improvement and equipping of existing school buildings and other buildings and facilities useful or desirable in connection therewith, including, but not limited to, the addition of new classrooms and technology infrastructure, the acquisition, construction and equipping of school buildings and other buildings or facilities useful or desirable in connection therewith; a new elementary school; and the acquisition of real and personal property in connection with these projects. The spending limit on these projects is $6,000,000.00. 
 
6,000,000.00 
 
6,000,000.00 
 
4,077,383.98 
 
2,842,424.29 
 
$ 7,625,000.00 $ 
 
7,625,000.00 $ 4,077,383.98 $ 2,842,424.29 
 
(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. 
(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. 
(3) The voters of Madison County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. 
 
 
 
See notes to the general purpose financial statements. 
 
 29- 
 
 MADISON 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 (1) (2) . Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
1OOo/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
13,290,877.00 $ _ ____;_40:....:0;.,.;7,...;;6.;;.3.;..;;;.0~0 
 
$ 
 
14,646,282.17 
 
715,659.39 $ _ ___;;;_54.:....;4;.,.6;,:...::3.;;.6;.:;;.56~ 
 
$ 
 
15,361,941.56 
 
-265,583.69 $ _ _1.;.;5;.,_;0,:..:9;.:;.6.3.:;,.:;;.57.;..;.;;.87"- 
 
Amount of Underexpenditure for Total Allotment 
 
$ 
 
0.00 $ =======0-~00;,. 
 
Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
See notes to the general purpose financial statements. - 31 - 
 
 MADISON 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 c) 
Grades 9 - 12 () 
High School Laboratories c) Vocational Education Laboratories ci 
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS 
Regular Programs Category I () Category II () Category Ill () Category IV () 
Category V <) 
Sub-Total - Regular 
Category VI (Gifted) cJ 
Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM 11 
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS 
Salaries Operations 
Total Media Center Programs 
Total Fourteen Weighted and Media Center Programs 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF 
 
REQUIRED 
 
ORIGINAL 
 
% 
 
ORIGINAL 
 
MID-TERM 
 
$ 1,057,724.00 
 
$ 
 
951,951.60 $ 
 
0.00 
 
2,876,746.00 
 
2,589,071.40 
 
$ 3,934,470.00 90 $ 3,541,023.00 $ 
 
0.00 
 
1,295,541.00 90 
 
1,165,986.90 
 
2,026,088.00 90 
 
1,823,479.20 
 
1,412,989.00 90 
 
1,271,690.10 
 
428,153.00 90 
 
385,337.70 
 
726,426.00 90 
 
653,783.40 
 
$ 9,823,667.00 
 
____ $ 8,841,300.30 $ 
 
_0; ;._0;0~ 
 
$ 2,325,285.00 
 
$ 2,092,756.50 $ 
 
110,914.00 
 
$ 2,325,285.00 90 $ 2,092,756.50 $ 
 
110,914.00 
 
352,369.00 90 
 
317,132.10 
 
s 2,677,654.00 
 
s 2,409,BBB.so $ _ _1;..;1.;;.o:..:.,9.;..14..;.;.;;.oo:. 
 
$ 
 
248,946.00 90 $ 
 
224,051.40 $ _ _ _ _0;;;..;.;..00:. 
 
$ 12,750,267.00 
 
$ 11,475,240.30 $ _ _1;..;1.;;.,0:..:.,9.;..14.;..;..0.;..0:. 
 
$ 
 
343,368.00 90 $ 
 
309,031.20 $ 
 
0.00 
 
86,328.00 100 
 
86,328.00 
 
$ 
 
429,696.00 
 
$ 
 
395,359.20 $ - - - - -0.0-0 
 
$ 13,179,963.00 
 
$ 11,870,599.50 $ ====11=0=,91=4=.0=0 
 
$ 
 
39,829.00 
 
$ 
 
39,829.00 $ 
 
0.00 
 
82,963.00 
 
82,963.00 
 
0.00 
 
Total Staff Development Programs 
() Identifies Fourteen Weighted Programs. 
(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. 
See notes to the general purpose financial statements. 
 
$ 
 
122,792.00 100 $ 
 
122,792.00 $ -======0=.0=0 
 
(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
- 32 - 
 
 SCHEDULE "5" 
 
EDUCATION TOTAL 
REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES (1)(2) 
 
OPERATIONS 
 
TOTAL 
 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
951,951.60 $ 
 
1,160,338.32 $ 
 
2,589,071.40 
 
3,104,825.22 
 
$ 3,541,023.00 $ 
 
4,265,163.54 $ 
 
1,165,986.90 
 
1,635,264.61 
 
1,823,479.20 
 
2,071,220.84 
 
1,271,690.10 
 
1,699,465.10 
 
385,337.70 
 
560,515.38 
 
653,783.40 
 
646,929.96 
 
$ 8,841,300.30 $ 10,878,559.43 $ 
 
13,299.38 $ 1,173,637.70 
 
102,981.87 
 
3,207,807.09 
 
116,281.25 $ 4,381,444.79 $ 
 
106,528.11 
 
1,741,792.72 
 
99,074.58 
 
2,170,295.42 
 
91,788.02 
 
1,791,253.12 
 
11,255.71 
 
571,771.09 
 
61,785.63 
 
708,715.59 
 
486,713.30 $ 11,365,272.73 
 
0.00 0.00 0.00 0.00 0.00 0.00 
 
$ 2,203,670.50 $ 
 
$ 2,203,670.50 $ 
 
317,132.10 
 
$ 2,520,802.60 $ 
 
$ 
 
224,051.40 $ 
 
$ 11,586,154.30 $ 
 
297,537.64 $ 
481,249.09 1,733,253.55 
22,017.44 10,597.15 
2,544,654.87 $ 
349,808.45 
2,894,463.32 $ 
349,002.56 $ 
- 14,122,025.31 $ 
 
7,663.26 $ 
6,864.59 30,182.97 
2,134.48 382.16 
 
305,200.90 488,113.68 1,763,436.52 
24,151.92 10,979.31 
 
47,227.46 $ 2,591,882.33 
 
7,590.78 
 
357,399.23 
 
54,818.24 $ 2,949,281.56 
 
-------- 3,105.02 $ 
 
352,107.58 
 
544,636.56 $ 14,666,661.87 
 
$ 
 
309,031.20 $ 
 
524,256.86 
 
$ 
 
524,256.86 
 
86,328.00 - - - - - - $ _ _ _11_1~.0_2_2_.8_3 
 
171,022.83 
 
$ 
 
395,359.20 $ 
 
524,256.86 $ 
 
171,022.83 $ _ _6c..;9;.;;5'-",2::..C7.;;.9.;.6;;.~9 
 
0.00 0.00 
0.00 
0.00 0.00 
 
$ 11,981,513.50 $ 14,646,282.17 $ 
 
s 115,659.39 15,361,941.56 s_ _ _ _ _ _ _o...o..o... 
 
$ 
 
39,829.00 
 
82,963.00 
 
$ ........1.2..2....1..9...2..0..0= 
 
$ 
 
101,230.21 $ 
 
101,230.21 
 
21,750.73 
 
21,750.73 
 
$ 
 
122,980.94 $ 
 
122.s80_94 s_....,_ _ _....,,...0...0..0.. 
 
 33  
 
 SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 
 
 
 w. USSELL 
 
HINTON 
 
STATE AUDITOR 
 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washingtt1n Street. S.W.. Suite 214 Atlanta. Georgia 3()334-84()0 
January 31, 2001 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Madison County Board of Education 
 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
Ladies and Gentlemen: 
 
We have audited the financial statements of Madison County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated January 31, 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 of obtaining reasonable assurance about whether Madison County Board of Education's financial statements are free of material misstatement, we perfo1n1ed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1111ination 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
 
Internal Control Over Financial Reporting 
. 
In planning and performing our audit, we considered Madison County Board ofEducation'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 
 
2000YB-40 
 
 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Madison County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6951-00-01. 
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 nu11nal course of perfo1ming their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. 
This report is intended solely for the infu11nation and use ofmanagement, members ofthe Madison 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, 
 
M ~0, L..J. 
Ru sell W. Hinton State Auditor 
RWH:jb 2000YB-40 
 
 
 W. USSELL 
 
HINTON 
 
STATE AUDITOR 
 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-84()0 
January 31, 2001 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Madison 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 of Madison County Board of Education with the types of 
compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year 
ended June 30, 2000. Madison County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Madison County Board of Education's management. Our responsibility is to express an opinion on Madison 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 perfo1n1 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance 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 Madison 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 determination on Madison County Board of Education's compliance with those requirements. 
2000SA-10 
 
 In our opinion, the Madison 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, 2000. 
Internal Control Over Compliance 
The management of Madison 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 perfo1111ing our audit, we considered Madison 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 dete11nine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level 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 no11nal course ofperfo1111ing 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 info1n1ation and use ofmanagement, members ofthe Madison 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. 
. -R-.e...spectfully submitted, 
 
RWH:jb 2000SA-10 
 
Rus ell W. Hinton State Auditor 
 
 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 
 MADISON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-6951-98-01 FS-6951-98-02 FS-6951-99-01 
 
Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $469.43 Finding Control Number: FS-6951-98-01 
 
Due to changes in personnel, the employee responsible for the oversight of QBE compliance was unfamiliar with the regulations and requirements. 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6951-99-01 
 
Due to lack of staff, we are unable at this time to maintain General Fixed Assets but foresee this being corrected, with the implementation of GASB 34. 
 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
FA-6951-99-01 F A-6951-99-02 
 
Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented 
 
I 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR 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 Madison County Board ofEducation'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 Madison County Board ofEducation disclosed a financial statement reportable condition related to the following control category. 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness. 
3. Noncompliance Material to the Financial Statements The audit of the Madison County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Madison County Board ofEducation 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 Madison 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 .510(a) ofOMB Circular A-133 The Madison County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB 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 Madison County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education. 
- 1- 
 
 MADISON 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-6951-00-01 The Madison County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, 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. Management's Response: We concur with this recommendation. Due to current staffing limitations and budgetary conditions prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the reco1ding of general fixed assets on the financial statement until GASB34 goes into effect. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
-2-