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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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

MILLER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE ANALYSIS OF .lll,.u,.1.v.1. EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

3

OVERALL

4

BY PROGRAM

Page
2
4
5
7
18
20 22
24 25 26

MILLER COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

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

SECTION ill

AUDfI'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

s

n.n.Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTIONN

FINDINGS AND QUESTIONED COSTS

--



SCHEDULE OF FINDINGS AND QUESTIONED COSTS




SECTION I FINANCIAL

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

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wasl1ingtc)11 Street. S.W.. Suite214 Atlanta. Gec,rgia 3()334-84()()
May 21, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

and

..

Superintendent and Members of the Miller County Board of Education

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

Ladies and Gentlemen:

We have audited the accompanying general purpose financial statements ofthe Miller County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Miller County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

We conducted our audit in accordance with 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 perfonn 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 op1 n1 on.

As described in the notes to the general purpose financial stateinents, 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 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 confu1m to generally accepted accounting principles.
* 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 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 confo1n1 to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dett:11nined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Miller County Board ofEducation as of June 30, 2000, and the results of its operations for the year then ended, in confo1mity 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 21, 2001, on our consideration ofthe Miller County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfo1med 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 perfu1med for the purpose of fo1ming an opinion on the general purpose financial statements ofthe Miller County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 4), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and
Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are
presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such info1n1ation 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 info1mation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13A

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 50-
6-24.
Respectfully submitted,

w.
ell W. Hinton
Sta e Auditor
RWH:jb 2000ARL-13A





MILLER COUNTY BOARD OF EDUCATION











MILLER 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 Capital Lease Agreements

Total Assets

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 1,465,057.62 $

37,334.06

363,284.20

131,382.51

101,591.03

5,574.43 5,674.87

$ 1,959,724.33 $ =-15=0=1'.1.4..,..3_9=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances 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 Debt Service For Inventories Food Donated Commodities Purchased Food Unreserved Designated for Equipment Purchases Designated for Local Capital Outlay Undesignated
Total Fund Equity

$

12,857.77 $

31,698.86

1,748.65

85,826.08

2,445.50

7,550.20

$

17,051.92 $ _--=.:12::::5a,.::,0:..:..7;::.:5._,_14.:..

$

13,849.95

5,574.43 5,674.87

$

846,617.70

1,096,054.71

0.00

$ 1,942,672.41 $ ----=2::,;::;5.i..::,0=99=.2::.::5'-

Total Liabilities and Fund Equity

$ 1,959,724.33 $ .........1...s_o_1..1..4.=.3==9=

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

EXHIBIT "A"

TYPES DEBT
SERVICE FUND

$

149,219.13

3,255.18



ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$ 1,651,610.81 $

912,986.38

363,284.20

1,029,875.45

236,228.72

283,396.54

$

152,474.31

5,574.43 5,674.87
152,474.31

7,303.77 7,550.27
136,566.55

587,525.69 102,737.49

587,525.69 102,737.49

643,433.45 153,682.05

$

152,474.31 $

842,737.49 $ 3,105,110.52 $ 3,174,794.46

$

77,087.20

$

44,556.63

34,932.74

87,574.73

79,496.23

9,995.70

100.00

$

102,737.49

740,000.00

102,737.49 740,000.00 -

153,682.05 780,000.00

$

842,737.49 $

984,864.55 $ 1,125,298.22





$

152,474.31

$

23,792.00

$

13,849.95

7,509.44

152,474.31

136,566.55

0.00 $ _ _1.:..:5=2.i..;4.;_74""-.3.C...1,_

5,574.43 5,674.87

7,303.77 7,550.27

846,617.70 1,096,054.71

270,000.00 504,191.00 .:1,092,583.21

$ 2,120,245.97 $ 2,049,496.24

$

152,474.31 $

842,737.49 $ 3,105,110.52 $ 3,174,794.46

-3-

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

EXHIBIT "B"

GENERAL FUND

SPECIAL REVENUE
FUND

DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30 2000 JUNE 30, 1999
1

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 5,653,019.03 $
1,730,319.10 135,019.51

297,229.34 912,673.05
$
107 934.43

$ 7,518,357.64 $ 1,317,836.82 $

$ 5,950,248.37 $ 5,683,875.74

912,673.05

1,010,979.70

108,671.34

1,838,990.44

1,747,692.80

5,068.25

248,022.19

191 319.68

113,739.59 $ 8,949,934.05 $ 8,633,867.92

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 4,844,427.47 $ 671,541.28

265,590.08 245,411.65 165,590.72 163,415.30 480,825.23
65,678.93 474,538.38 469,071.88
57,666.54
177,550.95

59,808.24 5,410.98
53,877.48 17,328.58
513,251.73

40,988.76 7,521.26

216.91 $ 28.49

$ 7,458,277.15 $ 1,321,463.69 $

$ 60,080.49 $

-3,626.87 $

$ 5,515,968.75 $ 5,413,981.72

325,398.32 250,822.63 165,590.72 217,292.78 498,153.81
65,678.93 474,538.38 469,071.88
57,666.54 513,251.73 177,550.95

329,374.41 247,265.39 165,968.03 212,381.62 448,778.66
64,956.98 426,914.87 521,107.92
57,442.64 537,267.96
36,912.91

40,000.00 56,760.00
1 071.83

81,205.67 64,309.75
1 071.83

59,710.19 62,329.18
2 414.08

97,831.83 $ 8,877,572.67 $ 8,586,806.56

15,907.76 $ 72,361.38 $ -'--4;:,.:7....,0:.:::6..:.:1::::36::....

OTHER FINANCING SOURCES IUSESl
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)

$ $ _ ___,-6:.;;44=2-.:.:18::....

1,993.09 6,442.18

$

-6 442.18 $ _ __::8:.;;,4:::::3:::::5-:,:27'--

$

1,993.09 $ 130,892.00

6,442.18

12,209.23

-6 442.18

-12,209.23

$

1 993.09 $ 130,892.00

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

53,638.31 $

FUND BALANCE JULY 1

1,889,034.10

4,808.40 $ 15,907.76 $ 74,354.47 $ 177,953.36

23,895.59

136,566.55

2,049,496.24

1,868,296.78

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-1,729.34 -1 875.40

-1,729.34 -1 875.40

2,709.56 536.54

FUND BALANCE JUNE 30

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

MILLER 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"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}

$ 5,426,485.00 $ 5,653,019.03

1,900.00

1,564,841.00

1,730,319.10

58,043.00

135,019.51

$ 7,051,269.00 $ 7,518,357.64

-

$ 5,056, 132.00 $ 4,844,427.47

275,600.00 225,852.00 162,200.00 160,100.00 363,300.00
70,800.00 509,280.00 502,400.00
66,793.00

265,590.08 245,411.65 165,590.72 163,415.30 480,825.23 65,678.93 474,538.38 "469,071.88
57,666.54

116,000.00

177,550.95 48,510.02

$ 7,508,457.00 $ 7,458,277.15

$ -4571188.00 $ _.....::;60::.,;,0..,,8c::.:0..:..:49::...

Other Sources Other Uses
Total Other Financing Sources (Uses)

$ _ _-6=--:.44..:.:2:.;..1:;.;:8'-$ _ _-6=44:::,2,:,:..1~8:...

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -457, 188.00 S

53,638.31

FUND BALANCE JULY 1, 1999

1,797,268.15

1,889,034.10

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


FUND BALANCE JUNE 30. 2000

s s 113401080.15

119421672.41

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 233,307.52 $ 297,229.34

748,860.00

912,673.05

112,300.00

107 934.43

$ 1,094,467.52 $ 1,317,836.82

$ 443,202.00 $ 671,541.28

53,500.00 250.00

59,808.24 5,410.98

59,743.00

53,877.48 17,328.58

200.00

531,540.00

513,251.73

245.40

$ 1,088,435.00 $ 1,321,463.69

$

6,032.52 $ ---=3.1.:,6=26::,:;.8"-'7-

$

8,435.27



$ --~8.;;:4:,,:35,:::;.2::..:7~

$

6,032.52 $

4,808.40

22,288.26

23,895.59

-299.85

-1,729.34 -1 875.40

$

s 281020.93 _....,:2_5,._.o,_99:;;..2;;;;5_,

The notes to the general purpose financial statements are an integral part of this statement. -5-

MILLER 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 Miller County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.

FUND ACCOUNTING

The Board uses funds and an account group to report on its financial position and the results 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 confo1111 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 confotm 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.

-7-

MILLER 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 that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.
DEBT SERVICE FUND- the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is dete11nined 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-Term 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). ''Measuraqle'' 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, 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 empl<?yed for a one hundred and ninety day
period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this

-8-

MILLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

BUDGET

The Miller County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level 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 o( 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.

-9-

MILLER COUN1Y BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services;
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info1mation 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.

- 10 -

MILLER COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Miller County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 28, 1999 (levy date). Taxes were due on December 28, 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 Miller 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 Miller County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

15.78 mills .97 mills

16.75 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.

GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

- 11 -

MILLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 confo11nity 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 ofinsurance, or by collateral. The aggregate ofthe face

_value of such surety bond and the market value of securities pledged shall be equal to not less than

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe

securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

b~l~ce. 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 chec.lcing

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 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,

- 12 -

MILLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS

(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 Interrnediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS
At June 30, 2000, the bank balances were $2,701,907.72. 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

$ 200,000.00

2

o.oo

3

2,501,907.72

Total

$2,701,907.72

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

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; natural disaster and unemployment compensation.

- 13 -

MILLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

,
Note 4: RISK MANAGEMENT
The Board has obtained commercial insurance for risk ofloss associated with torts and assets. 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. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not experienced any unemployment claims during the past two fiscal years.

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

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

Position Covered
Superintendent Each Principal Lunchroom Supervisor Each Lunchroom Manager

Amount
$ 10,000.00 $ 3,000.00 $ 5,000.00 $ 5,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Miller County Board ofEducation has entered into various lease agreements as lessee for copy machines and buses. 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 -

MILLER 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 1991

5.20% - 7.50%

$ 740,000.00


The changes in General Long-Tern1 Debt during the fiscal year ended June 30, 2000, were as follows:

Capital Leases

General Obligation
Bonds

,
Total

Balance July 1, 1999

$ 153,682.05 $ 780,000.00 $ 933,682.05

Additions

1,993.09

1,993.09

Deductions Debt Retired Trade-Ins

41,205.67 11,731.98

40,000.00

81,205.67 11,731.98

Balance June 30, 2000

$ 102,737.49 $ 740,000.00 $ 842,737.49


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

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004 2005 2006 - 2010 2011

$ 38,082.86 $ 99,080.00 $ 137,162.86

38,082.86

101,020.00

139,102.86

37,970.55

102,570.00

140,540.55

98,720.00

98,720.00

99,815.00

99,815.00

505,495.00

505,495.00

102,125.00

102,125.00

Total Principal and Interest $ 114,136.27 $ 1,108,825.00 $1.222.961.27

Deduct: Imputed Interest

11,398.78

Net Present Value of Future



Minimum Lease Payments $ 102,737.49

- 15 -

MILLER 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 $109,468.72 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $85,899.72
Office of Treasury and Fiscal Se;:tvices Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $23,569.00
Note 7: 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 granter 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.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfo11nance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 8: 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 l l .29o/o and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:
- 16 -


' MILLER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 8: RETIREMENT PLANS
Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 550,640.15 $ 563,087.57 $ 501,312.34



- 17 -

MILLER 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

Total Assets

SCHOOL FOOD .
SERVICES FUND

LOTTERY PROGRAMS

$

36,308.94 $

30,917.04

932.50

5,574.43 5,674.87

$

48,490.74 $ ===3=0=,9=1=7=04=

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 Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

7,816.32 $

7,207.20



29,425.12

23,709.84

$

37,241 .44 $ _ _...,;3;;.,;;0;,i,;9:,;.,;.1..:..;7:.,;.04-'-

$

5,574.43

5,674.87

o.oo $ _____;o;,;.;.o;.;o'--

$

11,249_30 $ ----=o,.;;;,.oo;;_

Total Liabilities and Fund Equity

. $

48,490.74 $ ======3=0=,=9=17=.=0=4=

See notes to the general purpose financial statements. - 18 -


EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

67,225.98 $

62,244.74

$

100,658.53

101,591.03

187,968.90

5,574.43 5,674.87

7,303.77 7,550.27

$

100,658.53 $

180,066.31 $ ==2=6=5=,0=67==68=

$

29,891.92 $

29,891.92 $

139,331.94

16,675.34

31,698.86

22,243.92

32,691.12

85,826.08

79,496.23

7,550.20

7,550.20

100.00

$

86,808.58 $

154,967.06 $ _ _2_4_1.__,1_72_.0_9_



,

.

$

13,849.95 $

13,849..95 $

7,509.44

5,574.43 5,674.87

7,303.77 7,550.27

, ,

0.00

0.00

1,532.11

$

13,849.95 $

25,099.25 $ _ _..;;;2_,3J."-,8.;;;.95;;.;;.5~9---

$

100,658.53 $

180,066.31 $ ==2=6=5=,0=67=.6=8==

- 19 -

MILLER 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 Food Services Operation
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Capital Leases Operating Transfers In
Total Other Financing Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
-20 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 40,498.00 $ 256,731.34
357,943.14 107,934.43
$ 506,375.57 $ 256,731.34

$ 208,531.10 42,728.06

$ 511,568.97

4,378.78 1,682.76

216.91 28.49

$ 511,814.37 $ 257,320.70

$

-5,438.80 $

-589.36

$

1,993.09

1,913.60 $ _ __;5;..;;;.8""--9.-"-36'-

$

3,906.69 $ _ _---'-5_8__9__._36_

$

-1,532.11 $

0.00

16,386.15

0.00

-1,729.34 -1,875.40

$

11,249.30 $ ======0.=00=-

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

$
$ 554,729.91
$ 554,729.91 $

297,229.34 $ 912,673.05 107,934.43
1,317,836.82 $

249,385.44 1,010,979.70
96,845.29
1,357,210.43

$ 463,010.18 $
17,080.18 5,410.98 53,877.48 12,949.80



$ 552,328.62 $

$

2,401.29 $

671,541.28 $
59,808.24 5,410.98
53,877.48 17,328.58 513,251.73
216.91 28.49
1,321,463.69 $
-3,626.87 $

699,279.37 48,366.70 45,405.35 56,335.22 15,109.51 537,267.96
1,401,764.11 -44,553.68

$

1,993.09



$ _ ___,;;3;.,.;;,9;..;;;.3.;;.;;9.=22~

6,442.18 $ ____12..._,2_0__9_.=23a....

$

3,939.22 $

8;435.27 $ _ _..:.:12=,2=0=9-=23::;_,.

$

6,340.51 $

7,509.44

4,808.40 $ 23,895.59

-32,344.45 52,993.94

-1,729.34 -1,875.40

2,709.56 536.54

$ 13,849.95 $

25,099.25 $ ===23=,8=9=5=59....

- 21 -

MILLER 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

Total Child Nutrition Cluster



10.553 10.555

N/A $
NIA
$

106,842.02 227,027.59 $
333,869.61 $

(2)
487 740.84 (3)
487,740.84

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

10.550

N/A
$

24,073.53

24,073.53

357 943.14 $ ---=-5.,_11:..i.:8:...:1...:.4-:.::::3.:....7

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
Total Special Education Cluster

84.02784.173 84.173

N/A $ N/A N/A
$

92,481.00 $ 21,862.80
2,920.00
117,263.80 $

94,243.56 (3) 21,862.80
2,920.00
119,026.36

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

Title VI

-

Innovative Education Program Strategies

Class Size Reduction

84.281
84.298 84.340

Goals 2000
State and Local Education Systemic Improvement Grants

84.276

Vocational Education - Basic Grants to States

High School Program Basic Grant

84.048

Total U. S. Department of Education

NIA N/A
N/A
N/A N/A
NIA
$

299,581.32 4,210.63
9,447.52 37,470.00 '50,000.00

299,639.64 (3)
11,720.07 (3)

9,447.52 39,522.08 (3)
36,150.05

19,515.00

19,581.26 (3)

537,488.27 $ _ _.:;53::.:5::.i.:,0:.::8;:;6-:.::::98::.

Labor, U. S. Department of Pass-Through From Southwest Georgia Regional Educational
Service Agency Job Training Partnership Act


17.250

NIA $

17 241.64 $ _ _____:.;17"-"2=-4;.;.1.:.::.64--'-

Total Federal Financial Assistance
N/A = Not Available

$

912.673.05 $ _ ....1.1..0.6..,4.,.1_4_2._99..,

-22-

MILLER 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 Miller 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.

23



MILLER COUNTY BOARD OF EDUCATION

SCHEDULE "2"

SCHEDULE OF STATE REVENUE

YEAR ENDED JUNE 30, 2000



AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

GRANTS Education, Georgia Department of Quality Basic Education
General and Career Education Programs $
Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation
Regular Bus Replacement Sparsity Grant Middle School Incentive Program
Special Instructional Assistance
In-School Suspension Counselors Grades 4 and 5 Technology Training Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Program
Year 2000 Project Funding
Lottery Programs Assistive Technology Computers in the Classroom

2,913,852.00 662,669.00 211,399.20 124,905.00 33,498.00 801,592.00
256,780.00 72,393.00 110,254.00 109,896.00 56,171.00 36,727.00 12,340.00 28,842.00
-509,810.00 378,829.00
$
72,598.00
109,896.89 4,879.67
85,899.72 17,665.19
2,294.21 7,294.15

$
40,498.00 9,723.82
53,000.00

Office of School Readiness Pre-Kindergarten Program

194,007.52

Office of the Governor Georgia Challenge Grant

7,500.00

Office of Treasury and Fiscal Services Public School Employees Retirement

23,569.00

CONTRACT Education, Georgia Department of Reading Challenge Grant

21.085.00

TOTAL
2,913,852.00 662,669.00 211,399.20 124,905.00 33,498.00 801,592.00
256,780.00 72,393.00
110,254.00 109,896.00
56,171.00 36,727.00 12,340.00 28,842.00 -509,810.00 378,829.00 40,498.00 72,598.00
109,896.89 4,879.67
85,899.72 17,665.19
2,294.21 7,294.15
9,723.82 sa:000.00
194,007.52
7,500.00
23,569.00
21,085.00

$ 5,653,019.03 $

297,229.34 $ ==5=,9=5=0=,2=48....3..7. =

See notes to the general purpose financial statements
-24-



MILLER COUNTY BOARD OF EDUCATION

SCHEDULE "3"



ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS

YEAR ENDED JUNE 30, 2000

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

1OOo/o TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

3,913,o11 .oo $ _ _ _1.;_;1;.;:;o.i.3:~, 18;:;.:.::;,;oo=-

$

4,156,467.48

177,633.36 $ _ _ _15;.._3..,_,4;.._1.;;..3..c..67_

$

4,334,100.84

-38,277.12 $ _ _ _4;..:,;2,;.;9;.;:;5.c.8;:,=2=3c.;..72;;.

Amount of Underexpenditure for Total Allotment

$


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

See notes to the general purpose financial statements.
- 25 -

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

GENERAL AND CAREER EDUCATION PROGRAMS

Kindergarten (*)

Grades 1 3 (*)

Sub-Total K-3

Grades 4 5 (*)

Grades 6 8 (*)

Grades 9 12 (*)



High School Laboratories (*)

Vocational Education Laboratories (*)

Total General and Career Education Programs

SPECIAL EDUCATION PROGRAMS

Regular Programs Category II (*) Category 111(*) Category IV (*)

Sub-Total Regular

Category VI (Gifted) (*)

Total Special Education Programs

REMEDIAL EDUCATION PROGRAM(*}

Total Fourteen Weighted Programs

MEDIA CENTER PROGRAMS

Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

286,210.00

$

257,589.00 $

0.00

725,057.00

652,551.30

$ 1,011,267.00 90 $

910,140.30 $

0.00

367,569.00 90

330,812.10

658,830.00 90

592,947.00

490,633.00 90

441,569.70

149,675.00 90

134,707.50

235,878.00 90

212,290.20

$ 2,913,852.00

s_ _ _ _ $ 2,622,466.so

.::.o;.:o.::..o

$

650,163.00

$

585,146.70 $

0.00

$

650,163.00 90 $

585,146.70 $

0.00

12,506.00 90

11,255.40

$

662,669.00

$

s_ _ _ _ 596,402.10

.:;.o;.:.o.::..o

$

211,645.00 90 $

s_ _ _ _ 190,480.50

.:;.o;.:.o.::..o

$ 3,788,166.00

s_ _ _ $ 3,409,349.40

_..::.0:.::..00=-



$

100,910.00 90 $

23,995.00 100

$ _ _,:.:12:..;4~,9;.:0.:;.5;.:0.::.0

$

90,819.00 $

0.00

23,995.00

114,814.00 $ _ _ _ _.:;.0.:.::.0.::..0

Total Fourteen Weighted and Media Center Programs $ 3,913,071.00

$ 3,524,163.40 $

0.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.



$

10,867.00

$

10,867.00 $

0.00

22,631.00

22,631.00

0.00

$

33,498.00 100 $

s 33,498.oo =====o=.o=o

See notes to the general purpose financial statements.

26

SCHEDULE "4"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

257,589.00 $

254,137.53 $

8,969.77 $

263,107.30

652,551.30

719,516.30

15,570.24

735,086.54

$

910,140.30 $

973,653.83 $

24,540.01 $

998,193.84 $

0.00

330,812.10

394,440.44

16,245.84

410,686.28

0.00

592,947.00

708,665.30

31,735.98

740,401.28

0.00

441,569.70

650,950.90

41,755.68

692,706.58

0.00

134,707.50

146,361.86

5,727.03

152,088.89

0.00

212,290.20

299,941.23

17,504.23

317,445.46

0.00

$ 2,622,466.80 $ 3,174,013.56 $

137',508.77 $ 3,311,522.33

$

585,146.70

$

$

585,146.70 $

11,255.40

$

596,402.10 $

$

190,480.50 $

$ 3,409,349.40 $

266,075.53 $ 199,979.13 163,274.20
629,328.86 $
25,201.68
654,530.54 $
188,960.95 $
4,017,505.05 $

4,629.30 $ 5,440.80 3,816.05

270,704.83 205,419.93 167,090.25

13,886.15 $

643,215.01

288.64

25,490.32

14,174.79 $ _........:6:.:6c::8.!.:7.,:=.05=::=.33=-

1,730.11 $ _ _1;.:9c::0.!.:,6:=.9.:.:1:=.06=-

153,413.67 $ 4,170,918.72

$

90,819.00 $

138,962.43

$

138,962.43

23,995.00 - - - - - - $ ___2_4-"',2'-"'1-'--9..;.69_

24,219.69

$

114,814.00 $

138,962.43 $

24,219.69 $ _ _1;.:6c::3::._1:,:=.8=:2.:..:.12:..

$ 3,524,163.40 $

4,156,467.48 $

177,633.36 $ 4,334,100.84 $

0.00 0.00 0.00
0.00 0.00
0.00

$

10,867.00

22,631.00

$

33,498.00

$

18,709.38 $

18,709.38

19,429.65

19,429.65

$

-38-,1-39.03 $

38,139.03 $ -

0.00
------

- 27



SECTION II C01\1PLIANCE AND INTERNAL CONTROL REPORTS




-






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W. RussELL

H1NTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingtcin Street, S.W., Suite 214 Atlanta. Georgia 30334-8400
May 21, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Miller 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 ofMiller County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated May 21, 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 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 Miller County Board of Education's financial statements are free of material misstatement, we perfo1n1ed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the 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 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 Miller 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 Miller 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-7001-00-0 I and FS-7001-00-02.
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 nu1111al course of performing 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 all of the reportable conditions noted above, were considered to be material weaknesses.
This report is intended solely for the information and use of management, members of the Miller County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

-
RWH:jb 2000YB-40A

LO
R 11 W. Hinton Sta Auditor




RussELi. W. HtNTON
STA' ; ~'DITOR
(404) b:,6-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
May 21, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Miller County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofMiller 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. Miller County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofMiller County Board ofEducation's management. Our responsibility is to express an opinion on Miller 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 A-
133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and
0MB Circular A-133 require that we plan and perfo11n 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 Miller County Board of Education's compliance with those requirements and perfo1ming 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 dete1mination on Miller County Board of Education's compliance with those requirements.
2000SA-30A

In our opinion, the Miller 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 Miller 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 perfu11ning our audit, we considered Miller 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 dete1mine 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 .

We noted a certain matter involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Miller County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7001-00-01.
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 of risk that noncompliance with the applicable requirements oflaws, 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 nu11nal course of performing their assigned functions. Our consideration of the internal control over compliance 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, we do not believe the reportable condition described above is a material weakness.
This report is intended solely for the infotmation and use of management, members of the Miller 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;;,,::espectfully submitted,

w.
sell W. Hinton State Auditor
RWH:jb 2000SA-30A

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

MILLER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
~!!:!:!!~ Y 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-7001-98-01 FS-7001-98-02 FS-7001-99-01 FS-7001-99-02

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

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUNALENTS Inadequate Separation of Duties Finding Control Number: FS-7001-99-01

Due to budgetary constraints the Board is unable to hire the additional staffrequired to clear this finding. The Board feels that it has provided for the most appropriate assignments of duties with the number of personnel available to perfo11n the accounting functions with staff limitations. This finding cannot be totally resolved.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7001-99-02

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

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,





MILLER 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 Miller 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 Miller County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents

General Fixed Assets

All ofthe reportable conditions described above are considered to be material weaknesses.

3. Noncompliance Material to the Financial Statements The audit ofthe Miller County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Maier Programs < The audit report for the Miller County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement.

Cash Management

The reportable condition described above is not cons_idered to be a material weakness.

5. Type of Report Issued on Compliance for Major Programs

The auditor's opinion on the Miller 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 Miller County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) ofOMB Circular A-133. This audit finding is included in section IV of this report.

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

.

-

84.01 O 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.

- 1-

MILLER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Miller County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUIVALENTS Inadequate Separation of Duties Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7001-00-01
An examination of the internal accounting control procedures revealed that the Board did not maintain adequate separation ofduties in the perfo11nance ofthe following accounting functions and related procedures:
The check preparation function was not separated from the recording ofdisbursements on the general ledger. In addition, the reconciliation of the operating/payroll and debt service accounts were not perfu1n1ed by someone independent ofthe payroll/general ledger function. No supervisory review of the bank reconciliations was perfo1med.

Separation ofduties involving key accounting functions is the basis for achieving an adequate system ofinternal control. These deficiencies were a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions. Management should periodically review this decision to dete11nine ifemployee duties can be reassigned to achieve a higher degree of internal control with the existing staff.
Management's Response:
Due to budgetary constraints the Board is unable to hire the additional staff required to clear this finding. The Board feels that it has provided for the most appropriate assignments ofduties with the number of personnel available to perfom1 the accounting functions with staff limitations. This finding cannot be totally resolved.
-2-

Mll..LER 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-7001-00-02
The Miller 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. The 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:
Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements.
111 FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U.S. Department ofEducation Through Georgia Department of Education Finding Control Number: FA-7001-00-01
A review ofcash management procedures for the Elementary and Secondary Act - Title I - Grants to
Local Educational Agencies (CFDA 84.010) disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. During fiscal year 2000, the program had excessive ending monthly cash balances in five months. The excessive cash balances are a result of management's failure to accurately forecast the cash need ofthis program. Procedures should be implemented to minimize the time elapsing between the transfer offunds from the Georgia Department of Education and disbursement of such funds by the Board.
-3-

MILLER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CASH MANAGEMENT Excessive Cash Balances Title I - Grants to Local Educational Agencies (CFDA 84.010) Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7001-00-01 Management's Response: We had ordered computers and requisitioned the money before actually receiving the invoices for payment. We will no longer be requisitioning the money until the invoice is received.

-4-