Marion County Board of Education, Buena Vista, Georgia, report on audit of the financial statements for the fiscal year year ended June 30, 2000

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MARION COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND 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

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE

2 4
l
6
7
18 20 22 24 26
27 29

MARION COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

3

OVERALL

31

4

BYPROGRAM

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 STANDA.RDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR . PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONEffCOSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL
I I
/.

RussELL W. H1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
May 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 Marion 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. Gentleme.n:
We have audited the accompanying general purpose financial statements of the Marion 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 Marion 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to 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:

2000ARL-13A

* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conform to generally accepted accounting q
principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To 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 Board did not record revenues and expenditures associated with Federal donated
commodities in its general purpose financial statements. To conform to generally accepted accounting principles, these amounts should be recorded in the general purpose financial statements.
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 fairly, in all material respects, the financial position of the Marion County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 31, 2001, on our consideration ofthe Marion County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance w1th Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Marion County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 4), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement and Budget Circular A-133,Audits o/States, Local Governments,
2000ARL-13A

and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe 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 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 permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
~w-~

RWH:jb 2000ARL-13A

State Auditor

MARION COUNTY BOARD OF EDUCATION

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

1,263,919.83 $

464,768.00 $

914,917.45

250,000.00

204,790.37

44,228.39

. 6,802.00

70,488.73

11,661.91 8,175.53

Total Assets

$

1,558, 148.22 $

491 407.44 $ ==1=,1=90:...=19,..6...5. -5

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Funds Held For Others General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For Tri-County High School Building Facilities For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

170,421.08 $

9,394.64

$

179,815.72 $

$

$

15,235.13

1,363,097.37 $ 1,378,332.50 $

39,161.21 119,756.34
158,917.55

8,108.12

11,661.91 8,175.53
$
304,544.33 332.489.89 $

1,042,295.45 54,170.28 93,730.82
0.00
1,190,196.55

Total Liabilities and Fund Equity

$ 1,5581148.22 $

491 407.44 $

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

1I190,196.55

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
AGENCY FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl~}

JUNE 30, 2000

JUNE 30, 1999

$

181,853.44 $

1,790.93

$ 2,827,249.65 $ 2,064,174.25

24,109.49

478,899.86

916,692.45

7,055.72

128,574.84

231,122.31

$

188,909.16 $

11,661.91 8,175.53

10,473.91 7,394.37

$

188,909.16

188,909.16

264,392.89

3,121,090.84

3,121,090.84

3,175,607.11

25,900.42 $

31310,000.00 $ 6,764,561.79 $ 6,669,857.29

$

209,582.29 $

29,693.32

$

25,900.42

129,150.98 25,900.42

118,408.81 23,708.03

$

3,310,000.00

3,310,000.00

3,440,000.00

$

25,900.42 $

3,310,000.00 $ 3,674,633.69 $ 3,611,810.16

$

188,909.16

0.00

$

188,909.16

$

8,108.12 $

15,006.45

188,909.16

264,392.89

15,235.13

15,235.13

(

11,661.91 8,175.53
1,042,295.45 54,170.28 93,730:82

10,473.91 7,394.37 106,030.82 620,523.81 68,370.28

1,667,641.70

1,950,619.47

$ 3,089,928.10 $ 3,058,047.13

$

188,909.16 $

25,900.42 $

3,310,000.00 $ 6,764,561.79 $ 6,669,857.29

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MARION 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
Capital Outlay Debt Service
Principal Interest Escrow Agent
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Payments to Bond Escrow Agent 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

$ 7,078,367.67 $

349,804.25

1,102,008.28

1,393,192.54

321,014.41

144 334.16

$

8,792,574.62 $

1,596,146.69

$

5,520,517.22 $

256,491.50 159,017.08 207,160.52 428,473.62 541,481.30
98,780.32 982,742.30 629,645.79
38,691.00

206,963.85

731,445.45
68,379.06 18,167.05
37,370.77
20,719.11 13,567.10
975.20 718,009.17

$

9,069,964.50 $

1,608,632.91

$

-277,389.88 $

-12,486.22

$

-277,389.88 $

1,655,722.38

-12,486.22 343,006.95
1,188.00 781.16

FUND BALANCE JUNE 30

$

1,378,332.50 $

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

332,489.89

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Onl:tl

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 7,428,171.92 $ 7,235,461.64

1,102,008.28

1,132,818.44

$

412,188.06 $

208,981.88

2,014,362.48

2,071,173.43

9,583.58

6 831.89

481 764.04

497 185.73

$

421 771.64 $

215,813.77 $ 11,026,306.72 $ 10,936,639.24

$ 6,251,962.67 $ 5,841,756.86

$

26,500.00

324,870.56 177,184.13 207,160.52 465,844.39 541,481.30 98,780.32 1,003,461.41 643,212.89
38,691.00 975.20
718,009.17 233,463.85

343,407.39 173,236.57 187,769.08 456,659.15 511,428.12 87,646.27 872,931.48 612,669.59 38,916.00
15,667.64 727,817.83 158,523.93

$

130,000.00

160,157.50

1140.00

130,000.00 160,157.50
1 140.00

120,000.00 183,402.50
612.00

$

26,500.00 $

291,297.50 $ 10,996,394.91 $ 10,332,444.41

$

395,271.64 $

-75A83.73 $

29,911.81 $

604,194.83

$

15,734.69

-93,371.85

2,860,000.00 -2, 766,628.15
7,410.00 -7 410.00

$

15,734.69

$

395,271.64 $

-75,483.73 $

29,911.81 $

619,929.52

794,924.91

264,392.89

3,058,047.13

2,440,596.56

1,188.00 781.16

-695.62 -1,783.33

$ 1,190,196.55 $

188,909.16 $ 3,089,928.10 $ 3,058,047.13

-5-

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

EXHIBIT"C"

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 6,820,897.07 $ 7,078,367.67

1,200,000.00

1,393,192.54

/'

743 450.00

321 014.41

$ 8,764,347.07 $ 8,792,574.62

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

$- 5,863,952.24 $
215,348.06 123,330.10 194,917.6? 432,030.47 600,079.61 92,445.46 1,012,871.01 628,220.49 42,000.00
150,000.00

5,520,517.22
256,491.50 159,017.08 207,160.52 428,473.62 ~1.481.30
98,780.32 982,742.30 629,645.79 . 38,691.00
206,963.85

Total Expenditures

$ 9,355, 195.11 $ 9,069,964.50

Excess of Revenues over (under) Expenditures $

-590,848.04 $

-277,389.88

FUND BALANCE JULY 1, 1999

1,571,630.76

1,655,722.38

Food Inventory Net Change In Period Donated Commodities Purchased Food

SPECIAL REVENUE' FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

381,507.75 $

349,804.25

1,189,087.00

1,102,008.28

183,486.55

144,334.16

$ 1,754,081.30 $ 1,596,146.69

$

734,536.88 $

731,445.45

25,414.00 30,980.00

68,379.06 18,167.05

73,921:00

37,370.77

690.00 9,000.00
200.00 879,400.71

20,719.11 13,567.10
975.20 718,009.17

$ 1,754,142.59 $ 1,608,632.91

$

-61.29 $

-12,486.22

345,401.75

343,006.95

1,188.00 781.16

FUND BALANCE JUNE 30, 2000

$

980,782.72 $ 1,378,332.50

$

345,340.46 $

332,489.89

The notes to the general purpose financial statements are an integral part of this statement.
6

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30, 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Marion 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. Accordi;ngly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general 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 the~e 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.

-7-

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30.2000

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-term principal, interest and paying agent fees.
,
FIDUCIARY FUND TYPE - the fund .used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund im;:ludes:
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP -: A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets; Their reported fund balance is considered a me~ure of available,spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from 'available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

- 8-

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one. hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofJ;:ducation to the Board in the same twelve months.. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar .expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incUTFed, rather th.an when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Marion County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures 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

-9-

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

. JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.

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 tirp.e 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.

'

.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are. reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Sectiori 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation ofthe United States government,

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and .

(8) Obligations of other political subdivisions of the State of Georgia.

,. lQ-

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Marion County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 11, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in. fiscal year 2000. The Marion 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.

Tax millage rates levied for the 1999 tax year (calendar year) for the Marion County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

12.00 mills 1.75 mills

ll.llmills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpos~ Loc~l Option Sales Tax revenue during the fiscal year amounted to $412,188.06 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $1,367,288.13 has been collected or on December 31, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). The Board uses the purchases method to account for inventories of purchased foods whereby expenditures are recorded at the time of

- 11 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO 1HE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

purchase. Both the donated food commodities inventory and the purchased foods inventory reported on the balance sheet are equally offset by reservations of fund balance which indicates that they do . not constitute "available spendable resources" even though they are a component of net current assets. The Federally assigned value of donated commodity items received and consumed has not been reflected as revenues and expenditures in the general purposefinancial statements. To conform to generally accepted accounting principles, these amounts should be re~orded in the general purpose financial statements.

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-Tenn Debt Account Group.



INTERFUND TRANSACTIONS

The Board has the following tYJ)eS 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 conformity with generally accepted acc.ounting 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 ofinsurance, or by collateral. The aggregate ofthe face

- 12 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30. 2000

Note 2: DEPOSITS
value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and ,authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(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 of the 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 ofdevelopment 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 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, 2000, the bank balances were $4,098,080.62. 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 B_oard'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.

- 13 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30,2000

Note 2: DEPOSITS

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

$ 381,853.44.

2

0.00

3

3,716,227.18

Total

$ 4,098,080.62

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss 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 this risk in the past three years.

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

Position Covered

Amount

Board Chairman Superintendent Assistant Superintendent Each Principal Each Lunchroom Manager

$ 12,000.00 $ 12,000.00 $ 12,000.00 $ 2,000.00 $ 1,000.00

- 14 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO 1HE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE3o; 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 1994

4.85% - 6.625%

General Government - Refunding - Series 1998 4.10% - 4.65%

$ 510,000.00 2,800,000.00

$ 3.310.000.00

The changes in General Long-Term Debt duriij.g the fiscal year ended June 30, 2000, were as follows:

General Obligation
Bonds

Balance July 1, 1999

$ 3,440,000.00

Deductions Debt Retired

130,000.00'

Balance June 30, 2000

$ 3.310.000,00

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

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004 2005, 2006 - 2010 2011 - 2014

$ 293,342.50 295,857.50 307,682.50 308,300.00 313,182.50
1,655,237.50 1,425,970.00

Total Principal and Interest

$ 4.599.572.50

- 15 - .

MARION COUNTY BOARD OF EDUCATION .

EXHIBIT "D"

. NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30.2000

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1999, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for a portion of the debt service payments on the .old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 2000,.$2,470;000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS .

The Board has recognized revenues and expenditures in the amount of $145,473.60 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 of Non-Certified Personnel In the amount of $120,259.60

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 $25,214.00

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and

review by grantor agencies. This could result in requests for reimbursement to the grantor agency

for any expenditures which are disallowed under grant terms. The Board believes that such

disallowances, if any, will be immaterial to its overall financial position.



Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS)

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.

- 16 -

MARION COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30, 2000

Note 9: RETIREMENT PLANS

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%

$ 664,129.34 $ 661,414.62 $ 605,142.34

- 17 -

MARION COUNTY BOARD OF EDUC:A.'TION ..60MB1NING BALANCE SHEEfr SPECIAL REVENUE FUND JUNE 30, 2000

ASSETS
. Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities ~- Purchased Food

SCHOOL FOOD
SERVI_CE_S, FUND

LOTTER.Y PROGRAMS

$

349,889.73 $

31,274.21

11,661.91 8,175.53

Total Assets

$

369,727.17 $ ===31=,2=7=4=.2=1

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

8,705.16 $

7,804.25

36,640.24

23,469.96

$

45,345.40 $

31,274.21

$

11,661.91

8,175.53

304,544.33 $

0.00

$

324,381.77 $

0.00

Total Liabilities and Fund Equity
See notes to the general purpose financial statements. .. -18 -

$

369,727.17 $ ======31=,2=7=4=.2=1

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

83,604.06 $

464,768.00 $

411,928.43

6,802.00

6,802.00

59,055.81

11,661.91 8,175.53

10,473.91 7,394.37

$

90,406.06 $

491,407.44 $ ===48=8=,8=5=2=.5=2

$

22,651.80 $

39,161.21 $

27,436.76

59,646.14

119,756.34

118,408.81

$

82,297.94 $

158,917.55 $ _ _ _1_45....,,8_4_5_.5_7

$

8,108.12 $

8,108.12 $

15,006.45

11,661.91 8,175.53

10,473.91 7,394.37

0.00

304,544.33

310,132.22

$

8,108.12 $

332,489.89 $

343,006.95

$

90,406.06 $

491 407.44 $ ===4==88=,8=5==2==.5=2

-19 -

MARION 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 General Administration School Administration .Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenue~ over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net'Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

52,776.00 $

297,028.25

524,070.14

144,334.16

$

721,180.30 $

297,028.25

$

259,605.27

19,071.94

9,482.28

$

718,009.17

14,447.58 2,205.00
975.20

$

718,009.17 $

305,787.27

$

3,171.13 $

-8,759.02

319,241.48

8,759.02

1,188.00 781.16

FUND BALANCE JUNE 30

$

324,381.77 $ ====0==00=

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

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

349,804.25 $

409,973.10

$

577,938.14

1,102,008.28

1,132,818.44

144,334.16

136,408.40

$

577,938.14 $

1,596,146.69 $

1,679,199.94

$

471,840.18 $

731,445.45 $

690,881.69

49,307.12 18,167.05 27,888.49
6,271.53 11,362.10

68,379.06 18,167.05 37,370.77
20,719.11 13,567.10
975.20 718,009.17

91,903.08 49,780.93 66,381.88
1,004.10 23,284.48 13,560.25 15,667.64 727,817.83

$

584,836.47 $

1,608,632.91 $

1,680,281.88

$

-6,898.33 $

-12,486.22 $

-1,081.94

15,006.45

343,006.95

346,567.84

1,188.00 781.16

-695.62 -1,783.33

$

8,108.12 $

332,489.89 $ ====34=3=,0=0==6=.9==5

- 21 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Purposes of Bond Issue For SPLOST Projects. For Tri-County High School Building Facilities . For State Capital Outlay Projects
Unreserved Undesignated
Total Fund Equity

REGULAR

-B'oND
PROCEEDS

$

54,170.28 $

0.00

$

s4,110.2s $ =====o=.o=o

$

54,170.28

o.oo $ _ _ _ _..aa.o=.o~o

$

54,110.2s $=====o=.o=o

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

EXHIBIT "G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

93,730.82 $

767,016.35 $

914,917.45 $

528,385.26

204,790.37

204,790.37

200,000.00

70,488.73

70,488.73

66,539.65

$

93,730.82 $

1,042,295.45 $

1,190,196.55 $ = = =79=4,92=4.9=1

$

106,030.82

$ 1,042,295.45 $

1,042,295.45

620,523.81

54,170.28

68,370.28

$

93,730.82

93,730.82

0.00

0.00

0.00

0.00

$

93,730.82 $

1,042,295.45 $

1,190,196.55 $ = = =79=4,92=4.9=1

- 23-

MARION COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000

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

REGULAR

BOND PROCEEDS

$

0.00 $

0.00

$

0.00 $

0.00

$

14,200.00 $

12,300.00

$

14,200.00 $

12,300.00

$

-14,200.00 $

-12,300.00

$

-93,730.82

$

-93,730.82

$

-14,200.00 $

-106,030.82

68,370.28

106,030.82

$

54,110.28 $ =====o=.o=o

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

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ $ _ _ _ _..;;.0.;_;;.0..c...0

$

0.00 $

412,188.06 $ 9,583.58
421,771.64 $

412,188.06 $ 9,583.58

439,556.14

421,771.64 $ _ _ _4.;_39'-"-,5'-'5-'-6_.1_4

$

o.oo $

$ o.oo $ _ _ _26...,.5. _0_0_.o_o

. 2,999.79 18,498.64

$

0.00 $

0.00 $

26,500.00 $ _...--_2_1...._,4_9_8_.4_3

$

0.00 $

421,771.64 $

395,271.64 $ _ _ _4-'18""'-,0'-"5_77_._1

$

93,730.82

$

93,730.82

$

93,730.82 $

-93,730.82

$

0.00 $

7,410.00 7,410.00

$

93,730.82 $

421,771.64 $

395,271.64 $

425,467.71

0.00

620,523.81

794,924.91

369,457.20

$

93,730.82 $

1,042,295.45 $

1,190,196.55 $ ===7=94=,9=2=4=.9=1

-25 -

MARION COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARYFUND TYPE -AGENCY FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "I"

BALANCE JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

SCHOLARSHIP FUND

ASSETS Cash and Cash Equivalents $ Investments

7,015.58 $ 16,692.45

1,790.93 $ 7 417.04

7,015.58 $

1,790.93 24,109.49

Total Assets

$

23,708.03 $

9,207.97 $

7,015.58 $ ==2=5=,9=0=0=.4=2

LIABILITIES Funds Held For Others

$

23,708.03 $

9,207;97 $.

7,015.58 $ ==2=5=,9=0=0=.4=2

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

MARION COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

,
FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program

10.550 10.558

Total U.S. Department of Agriculture

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

84.027 84.173 84.173

Total Special Education Cluster

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 Ill

Technology Literacy Challenge Fund Grants

84.318

Title VI

Innovative Education Program Strategies

84.298

Class Size Reduction



84.340

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

Pass-Through From Chattahoochee-Flint Regional Educational

Service Agency

Elementary and Secondary Education Act

Title I

Migrant Education

84.011

Total U. S. Department of Education

Labor, U. S. Department of Pass-Through From Middle Flint Area Planning and Development Commission Job Training Partnership Act

17.250

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A $ 134,871.73

NIA

385,206.83 $

$ 520,078.56 $

(2) 718,009.17 (3)
718,009.17

N/A .

(1)

NIA

3,991.58

$ 524,070.14 $

(1)
!2! 718,oog.17

NIA

$

96,821.07. $

N/A

7,640.47

N/A

3,260.00

$ 107,721.54 $

98,560.00 8,029.00 3,260.00
109,849.00

NIA

317,308.00

309,199.88

NIA

16,000.00

16,000.00

NIA

3,456.67

N/A

12,199.00

12,199.00

N/A

40,004.00

40,004.00

N/A

40,091.00

40,091.00

N/A

44,614.60

$ 577,938.14 $

47,765.39 578,564.94

NIA

$

6,271.53

Total Federal Financial Assistance
NIA = Not Available

-27-

$ 1, 102;008.28 $

1,302,845.64

----- ---- --

MARION,COUNTY BOARD-OF EDUCATION SCHEDULE~0F EXPENDITURES OF FEDERAL AWARDS
'YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) Commodities valued in the amount of $41,756.04 were received during the current fiscal year and were not recorded in the Board's financial statements,
(2) Expenditures for the Child and Adult Care Food Program and 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 Marion County Board of Education and is presented on the modified accrual basis of accounting whic~ is the basis of accounting used in the presentation of the general purpose financial statements.

,l.

See notes to the general purpose financial statements.

-28-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

GRANTS

Community Affairs, Georgia Department of

Local Assistance Grant (1)

$

30,000.00

$

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 In-School Suspension Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom

4,121,786.00 663,016.00 36,778.00 165,300.00 45,895.00
1,090,517.00
312,769.00 80,865.00 34,004.00 15,764.00 28,842.00
-483,698.00 614,945.00
$ 66,726.00
45,169.00 2,000.00 7,511.62
120,259.60 5,000.00 810.00
'18,125.00 6,036.45 1,279.00

52,776.00
10,154.21 53,000.00

Office of School Readiness Pre-Kindergarten Program

233,874.04

Office of Treasury and Fiscal Services Public School Employees Retirement

25,214.00

CONTRACT Education, Georgia Department of Reading First Program

23,454.00

TOTAL
30,000.00
4,121,786.00 663,016.00 36,778.00 165,300.00 45,895.00
1,090,517.00
312,769.00 80,865.00 34,004.00 15,764.00 28,842.00
-483,698.00 614,945.00
52,776.00 66,726.00
45,169.00 2,000.00 7,511.62
120,259.60 5,000.00 810.00
18,125.00 6,036.45 1,?79.00
10,154.21 53,000.00
233,874.04
25,214.00
23,454.00

$ 7,078,367.67 $

349,804.25 $

(1) The purpose of the funds is to construct a track at the football field for Marion County Schools.

See notes to the general purpose financial statements. -29-

7,428,171.92

MARION COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GE.NERAL FUND-QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,986,880.00 $

170,817.00

$

5,026,344.41

302,462.10 $

$

5,328,806.51

245,207.26

-33,712.67 $ _ __;5..,_,2;.;..;9~5.:.;;,0..;;;,9..;;.;3.;.;;.84...;..

$

0.00 $=====0.=00=

See notes to the general purpose financial statements. - 31 -

MARION 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 PROGRAM Kindergarten () Grades 1 - 3 () Sub-Total K-3 Grades 4 - 5 (') Grades 6 -. 8 () Grades 9 12 () High School Laboratories (~) Vocational Education Laboratories () Total Genera(and Career Education Programs
seECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Sub-Total - Regular category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM Cl
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

379,575.00

$

341,617.50 $

1,060,105.00

954,094.50 .

$ 1,439,680.00 90 $ 1,295,712.00 $

470,447.00 90

423,402.30

715,934.00 90

644,340.60

906,553.00 90

815,897.70

247,653.00 90

222,887.70

341,519.00 90

307,367.10

$ 4,121,786.00

$ 3,709,607.40 $

0.00 0.00
0.00

$

620,486.00

$

558,437.40 $

0.00

$

620,486.00 90 $

558,437.40 $

42,530.00 90

381277.00

$

663,016.00

$

596,714.40 $

$

36,nB.00 90 $

33,100.20 $

$ 4,821,580.00

$ 4,339,422.00 $

$

130,910.00 90 $

117,819.00 $

34,390.00 100

34,390.00

$

165,300.00

$

152,209.00 $

0.00
0.00 0.00 0.00
0.00 0.00

Total Fourteen Weighted and Media Center Programs

$ 4,986,880.00

$ 4,491,631.00 $

0.00

STAEE DE~EbQPMENJ PROGRAM Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

14,911.00

.$

14,911.00 $

30,984.00

30,984.00

$

45,895.00 100 $

45,895.00 $

0.00. 0.00
0.00

See notes to the general purpose financial statements.

- 32

SCHEDULE 4

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

341,617.50 $

322,866.76 $

/ 14,893.38 $

337,760.14

954,094.50

962,366.04

26,404.33

988,770.37

$ 1,295,712.00 $ 1,285,232.80 $

41,297.71 $ 1,326,530.51 $

0.00

423,402.30

683,310.80

30,697.56

714,008.36

0.00

644,340.60

692,598.15

28,312.16

720,910.31

0.00

815,897.70

882,110.88

33,185.22

915,296.10

0.00

222,887.70

268,052.09

10,973.10

279,025.19

0.00

307,367.10

397,018.14

75,738.54

472,756.68

0.00

$ 3,709,607.40 $ 4,208,322.86 $

220,204.29 $ 4,428,527.15

$

558,437.40

$

36,331.15 $ 94,471.19 412,587.83 41,254.86

2,731.87 $ 7,045.87 9,909.48
852.37

39,063.02 101,517.06 422,497.31 42,107.23

$

558,437.40 $

584,645.03 $

20,539.59 $

605,184.62

0.00

38,277.00

56,669.82

1,226.79

57,896.61

0.00

$

596,714.40 $

641,314.85 $

21.766.38 $

663:081.23

$

33,100.20 $

34,948.87 $

3,236.59 $

38,185.46

0.00

$ 4,339,422.00 $ 4,884,586.58 $

245,207.26 $ 5,129,793.84

$

117,819.00 $

141,757.83

$

141,757.83

0.00

34,390.00

$

57,254.84

571254.84

0.00

$ , 152,209.00 $

141,757.83 $

57,254.84 $

199,012.67

$ 4,491,631.00 $ 5,026,344.41 $

302,462.10 $ 5,328,806.51 $

0.00

$

14,911.00

30,984.00

s-====45=,8_e_s..,.o.o..

$

21,645.00 $

21,645.00

24,250.00

24,250.00

$ 45,895.00 $ 45,ees.oo s-----===-=aa=o;;;;oo..

- 33 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 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 Marion 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 Marion County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated May 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 auditing standards generally accepted in the United States of America and the standards appljcable 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 Marion County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, 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 ofourtests 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 Marion County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 Marion County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6961-00-01 and FS-6961-00-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6961-0002 to be a material weakness.
This report is intended solely for the information and use of management, members of the Marion 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 patJies.
Respectfully submitted,

RWH:jb 2000YB-40A

~w~u}.~
~11 W. Hinton State Auditor

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
May 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 Marion 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 ofMarion County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Marion County Board ofEducation'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 ofMarion County Board ofEducation's management. Our responsibility is to express an opinion on ~arion County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Marion 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 O\" opinion. Our audit does not provide a legal determination on Marion County Board of Education's compliance with those requirements.

2000SA-10A

In our opinion, the Marion 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 Marion 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 Marion 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 ofthe internal control over compliancewould 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 normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Marion 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,
~1 ...Q2L<l.~ ~ell W. Hinton State Auditor
RWH:jb 2000SA-10A

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

MARION 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-6961-98-01 FS-6961-98-02 FS-6961-99-01 FS-6961-99-02 FS-6961-99-03

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

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUNALENTS Inadequate Internal Control Procedures Finding Control Number: FS-6961-99-01.

The Marion County Board ofEducation is aware ofthis inadequacy, but due to the size of the school system and lack of sufficient funds to fully staff the Central Office, no action can be taken at this time. However, accounting procedures will be reviewed and changes, if any are possible, will be made to correct this inadequacy.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $15,235.13 Finding Control Number: FS-6961-99-02

The finding will be resolved by the Georgia Department of Education through a future

increase in the Board's local five mill share portion of the QBE allotments.



GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6961-99-03

The Marion County Board of Education concurs with this recommendation. However, due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

MARION 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 Marion County Board of Education's financial statements was . qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Marion County Board of Education disclosed financial statement reportable conditions related fo the following control categories.

Cash and Cash Equivalents

General Fixed Assets

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness..

3. Noncompliance Material to the Financial Statements The audit of the Marion 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 Marion 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 Marion County Board ofEducation'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 Marion County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

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

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee

The Marion County Board of Education did not qualify as a low risk auditee as defined by

Section .530 ofOMB Circular A-133.



- 1-

~-----------------------------------~~~-- -
MARION COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUIVALENTS Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Fi~ding Control Number: FS-6961-00-0 I

A review of the Board's interna_l control policies and procedures noted deficiencies in providing for

adequate internal controls as noted below:





The cash receipts function was not separated from the deposit function and/or general ledger

posting ofrevenues for the School Food Services Fund.



The Board does not always require documentation of receipt for goods and services before

payments are made.

These conditions were a result ofmanagement's decision to limit the number ofadministrative staff
made responsible for accounting functions and their failure to institute proper internal contrqls over these areas. The Board should review.the accounting procedures in place, design procedures which '. would enhance .segregation of duties .and proper internal controls relative to the above control category and implement those procedures to strengthen the internal control .over the accounting functions.

Management's Response:

The Marion County Board ofEducation has issued the following procedure to alleviate this internal control problem. The school food cashier will reconcile cash receipts, the lunchroom manager will deposit ~ash and the school nutrition bookkeeper in the central office will enter receipts to general ledger. We are in hopes that this will suffice due to the size of our syst_ein and sufficient funds to employ personnel.

The Board will issue instructions that anyone receiving goods or services for the Marion County Board of Education sign off as being received and date purch~e order and/or packing slip.

-

GENERAL FIXED ASSETS

r,

Failure to Maintain General Fixed Assets Account Group

Reportable Condition - Material Weakness

Repeated From Prior Year

Finding Control Number: FS-:6961-00-02

The Marion County Board of Education did not maintain a system-wide General Fixed A~sets Account Group within the formal accounting reGords as required by generally accepted accounting principles. This condition results in the general purpose financial s.ta!ements _o_f the Board being
-2-

. MARION 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-6961-00-02 incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: The Marion County Board ofEducation concurs with this finding. However, due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional personnel, the Board has decided not to pursue the recording of general fixed assets on the financial statement. We are in hopes that the Georgia Department of Education will assist in securing software to accomplish this procedure. ill FEDERAL AWARD FINDINGS AND OUESTIONEDCOSTS No matters were reported.
-3-