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

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MITCHELL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION!

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

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

)

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES :

AND CHANGES IN FUND BALANCES

Page
2 4 7 8 9 11
24
26
28 32 33

MITCHELL COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

EXHIBITS

COMBINING AND INDNIDUAL FUND STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

34

N

STATEMENT. OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

35

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

36

2 SCHEDULE OF STATE REVENUE

38

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

39

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

41

5

BYPROGRAM

42

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

MITCHELL COUNTY BOARD OF EDUCATION TABLE OF CONTENTS -
SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COST. S'
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

....
\ci
. l;
, .
'T7r;;
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 26, 2001

.Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Mitchell County Board of Education

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

Ladies and Gentlemen:

We have audited the accompanying general purpose financial statements of the Mitchell 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 Mitchell County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the. audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion,

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted .accounting principles. These variances are described as follows:

* The general purpose financial statements of the Board did not contain a Gen~ral 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.

.

'

2000ARL-13

'

* School activity accounts maintained at the individual schools are not inclu~ed in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.

* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review, Conversely, the similar expenditures and related revenues for ~ontractual services completed prior to June 30, 1"999, 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 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 Mitchell County Board of Education as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.

In accordance with Governrnent Auditing Standards, we have also issued our report dated March 26, 200 I, on our consideration of the Mitchell County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Governrnent 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 Mitchell County Board of Education taken as a whole. The accompanying

combining and individual fund statements (Exhibits G through N) and the financial schedules

(Schedules I through 5), which includes the Schedule ofExpenditures ofFederal Awards as required

by U.S. Office ofManagenient 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 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.

'

2000ARL-13

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 Annot,'ated Section 506-24.

Respectfully submitted,

.

I

~. QQ L<J.~-3s

-~ell W. Hinton

,

State Auditor

RWH:jb 2000ARL-13

MITCHELL COUNTY BOARD OF EDUCATION

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

275,664.39 $

. 37,514.95 $

1,824.71

2.424,031.53

485,315.58

1,313,690.10

519,318.99

235,113.19

208,527.95

17,237.40 7,329.18

Total Assets
LIABILITIE AND FUND EQUITY
'.
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Ftl'flds Held for Others Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 3 219 014.91 $

782 510.30 s _...1..,.5.2.,41.04=2_..1,.s..

$

13,806.05 $

64,925.87

247,094.83

1,832.42

$

117,446.94

18,329.81

$

13 806.05 $

313,853.12 $

135 776.75

$

10,098.22

$ 3,205,208.86 $ 3,205,208.86 $

17,237.40 7,329.18 $
433,992.38 468 657.18 $

699,768.13 668,188.55
20,309.33
0.00
1,388,266.01

Total Liabilities and Fund Equity

$ 3 219 014.91 $

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

-2-

782 510.30 $ 115241042.76

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl:r}

JUNE 30, 2000

JUNE 30 1999

$

401.33 $

7,292.52

$

322,697.90 $

347,796.21

119,094.44

10,000.00

4,352,131.65

5,432,113.59

962,960.13

996,130.38

1,470.06

1,470.06

1,294.43

17,237.40 7,329.18

18,798.43 7,532.14

$

120,965.83

. 120,965.83

114,124.14

$

120 965.83 $

17 292.52 $

5,424,034.17 25 956.41

5,424,034.17 25 956.41

6,225,875.86 49629.94

515701956.41 $ 111234,782.73 $ 1311931295.12

$

23,103.90

$

78,731.92

61,516.68

247,094.83

230,271.79

1,832.42

6,633.00

117,446.94

137,814.45

$

2,000.00

18,329.81 2,000.00

17,302.42

$

25,S56.41

25,956.41

49,629.94

5,545,000.00

5,545,000.00

6,340,000.00

$

2 000.00 $

5,570,956.41 $ 6,036,392.33 $ 6,866,272.18

$

120,965.83

$

10,000.00

0.00

$

120,965.83 $

5 292.52 15 292.52

$

10,098.22 $

2,517.25

120,965.83

114,124.14

10,000.00

10,000.00

17,237.40 7,329.18 699,768.13 668,188.55 20,309.33

18,798.43 7,532.14
1,861,080.51 569,065.58 20,309.33

3,644,493.76

3,723,595.56

$ 5,198,390.40 $ 6,327,022.94

$

120 965.83 $

17 292.52 $

5,570,956.41 $ 11,234,782.73 $ 13,193,295.12

-3-

MITCHELL 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

-1 ,..

Total Revenues

EXPENDITURES

'

Current

~V'I. ,/

Instruction

Support Services

Pupil Services

Improvement of lnstructiOnal 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

Enterprise Operations

Community Services Operations

Capital Outiay

Debt Service

Principal

Interest

Paying Agent Fees ,

I.

C

Total ExpenditUres~

Ex~s of Revenues over (under) Expenditures

OTHER FINANCING SOURCES {USES)

Operating Transfers In Operating Transfers Out
C
Total Other Financing Sources (Uses)

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing Uses

~ - "~

r

.

FUND BALANCE J!JLY 1

Adjustments

.. " J~

For Prior Year Contiacts Payable

Food Inventory - Net Change in Period

Donated Commodities

Purchased Food

' . - -- - - "

. 1
GENERAL FUND

SPECIAL REVENUE
FUND

$ 11,078,564.30 $ 13,750.00
4,783,741.28 643 401.93
s 16 519 457.51 $

673,284.61 2,850,096.82
202 888.48
3,726,269.91

$ 10.125,395.20 $
947,017.84 712,898.09 406,794.75 367,507.78 1,127,911.12 186,538.64 1,316,919.52 1,029,687.37
14,542.93 18,283.73
5,184.45 529.96
38,248.00
23,673.53 3,650.96

1.804,77'7.58
113,066.28 202,228.45
18,334.36 32,746.07 15,476.64
10,304.48 11,118.42 13,619.52 222,748.03 1,414,133.48

$ 16,324,783.87 $ 3,858,553.31

$

194 673.64 $

-132,283.40

..

$

$

-151,295.94

43,688.32 -26 266.76

$

-151 295.94 $ '

17 421.56

$

43,377.70 $

3,161,831.16

114,861.84 585,283.01

-4:;, . 1,561.03
-202.96

FUND BALANCE JUNE 30

$ 3,205,208.86 $

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

468 657.18

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

{Memorandum Onl~}

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 11,751,848.91 $ 11,561,453.32

2,863,846.82

2,726,026.71

$

84,200.35 $ 1,140,237.17

6,008,178.80

4,969,720.35

91 846.62

6 545.62

944 682.65

902 844.77

$

176 046.97 $ 1146 782.79 $ 21,568,557.18 $ 20,160,045.15

$ 1,372,110.76 $
$ 1372110.76 $ $ -1,196,063.79 $

$ 11,930,172.78 $ 11,624,270.76

1,060,084.12 915,126.54 425,129.11
400,253.85 1,143,387.76
186,538.64 1,327,224.00 1,040,805.79
28,162.45 241,031.76 1,414,133.48
5,184.45 529.96
1,410,358.76

957,715.42 715,583.43 471,761.24 465,801.51 1,023, 178.17 163,595.45 1,400,970.68 997,619.39 39,181.80 240,957.08 1,333,052.74
2,267.61 10,307.15 302,967.17

795,000.00 344,388.13
552.97

818,673.53 348,039.09
552.97

767,146.92 382,626.08
687.03

1139 941.10 $ 22,695,389.04 $ 20,899,689.63

6841.69 $ -1,126,831.86 $

-739 644.48

$

133,874.38

$

133 874.38

$ -1,062,189.41 $ 2,450,455.42

$

177,562.70 $

-177 562.70

$

0.00 $

50,363.92 -50,363.92
0.00

6,841.69 $ 114,124.14

-1,126,831.86 $ 6,311,693.73

-739,644.48 7,030,514.09

-1,561.03 -202.96

20,052.03
-205.86 977.95

$ 1,388,266.01 $

120 965.83 $ 5,183,097.88 $ 6,311,693.73

-5-

MITCHELL COUNTY BQARQ QF EDUCATION

!

COMBINED STATEMENT QF REVENUES EXPENDITURES AND CHANGES 1N FUND BALANCES

BUDGET ANQ ACTUAL - {NON-GAAP BA$1S)

GENERAL AND SPECIAL REVENUE FLJNQS

YEAR ENDED JUNE 30 2000

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASISl

State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 10,655,025.58 $ 11,078,564.30

13,750.00

4,425,000.00

4,783,741.28

271 845.85

643 401.93

s $ 1513511871.43 16 519 457.51

EXPENDITURE$

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 Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
QTl-tER FINANCING QURCtS (USES}

s s 10,211,176.37 10.125,395.20

989,539.79 710,946.12399,242.09 364,059.09 1,129,221.51 175,344.91 1,454,994.03 1,078,734.68 13,702.48 27,000.00

947,017.84 712,898.09 406,794.75 367,507.76 1,127,911.12 186,538.64 1,316,919.52 1.029,687.37 14,542.93 18,283.73

189,884.00

5,184.45 529.96
36,248.00 27 324.49

s s 10i7431845.os

10 13 2 4 l 8 3 . 8 7

$ -113911973.62 $ 19416ZJ.64

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

$ -47 508.02 $ $ -47 508.02 $
$ -1,439,481.64 $

-151 295.94 -151 295.94
43,377.70

F!J~D BALANQI; J!.!L.Y ] 1999
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

2,588,356.04 130,613.57

3,161,831.16

F!.,!~D ~ALANQI; JUN!; 30 iQQQ

$ 112791487.97 $ 312051208.86

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASISl

$ 677,592.99 $ 673,284.61

3,154,949.98

2,850,096.82

252 047.00

2021888.48

s 4p841589.97 $ 317261269.91

$ 2,020,756.~5 $ 1,804,777.58

127,602.32 277,503.25
18,334.36 36,412.17 11,638.95

113,066.28 202,228.45
18,334.36 32,746.07 15,476.64

1,oa1.po 15,799.17 13,617.oo' 33,916.15 1,592,577.31

10,304.48 11,118.42 13,619.52 222,748.03 1,414,133.48

s 411551388.23 $ 318581553.31
$ -70 798.26 $ -1321283.40

$

47,508.02 $

-199 284.00

$ -151 775'.98 $

43,688.32 -21266.76
17 421.56

$ -222,574.24 $ -114,861.84

610,723.20 -14,525.01

565.283.01

-1,561.03 -202.96

$ 3731623.95 $ 468 657.18

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

-: 1

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30. 2000

..,
OPERATING REVENUES Donations
OPERATING EXPENSES
- Current
Instruction Operating Income (Loss)
NONOPERATING .REVENUES Interest Earned- . Net Income
FUND BALANCE JULY-1
FUND BALANCE JUNE 30

ENDOWMENT FUND
C. M. STRIPLING VOCATIONALEDUCATIONAL
SCHOLARSHIP

TOTALS (Memorandum Onll)

YEAR ENDED ..

JUNE 30, 2000

JUNE 30, 1999

$

1 500.00 $

1 500.00 $

1 500.00

$

2 057.50 $

2 057.50 $

2 612.24

$

-557.50 $

-557.50 $

-1, 112.24

< t\. :

520.81

520:81

545.05

$

-36.69 $

-36.69 $

-567.19

~

15,329.21

15 329.21

15 896.40

--

$

15,292.52 $

15,292.52 $

15 329:21

, ..

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

MITCHELL COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2000

EXHIBIT "E"

ENDOWMENT FUND
C. M. STRIPLING VOCATIONALEDUCATIONAL SCHOLARSHIP

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

Cash Flows from Operating Activities:.

Cash Received from Donations

$

Cash Paid for Scholarships

1,500.00 $ -2 057.50

1,500.00 $ -2 057.50

1,500.00 -2 612.24

Net Cash Provided (Used) by Operating

Activities

$

-557.50 $

-557.50 $

-1, 112.24

Cash Flows from Investing Activities:

Interest Received on. Investments

$

520.81 $

520.81 $

545.05

Net Increase (Decrease) in Cash

$

-36.69 $

-36.69 $

-567.19

Cash and Cash Equivalents - July 1

5,329.21

5,329.21

5 896.40

Cash and Cash Equivalents - June 30

$

5,292.52 $

5,292.52 $ ==~5.,;,3;;;2;;;,;9,;;,21,;,,.

The notes to the general purpose financial statements are an integral part of this statement. -9-

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Mitchell 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 conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity. nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.

The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:

GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:

GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 11 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

_.NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE30,2000

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. ~ :

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of . Education and from the Federal'.government to accomplish specific educational.objectives.

. , CAPITAL PROJECTS FUND. - the fund used to account for financial resources to be used for the ,; acquisition or co11struction 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 TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, oiher government units and/or other funds. These funds include: , .

NONEXPENDABLETRUST FUND.

. __ , ,_.

C. M. Stripling Vocational-Educational Scholarship Fund - the fund ~sed to account for an

endowment of which the corpus is to be invested and preserved intact with the resultant income

to be used to provide scholarship aid to vocational students to attend a vocational school or

college..

'

. ;

AGENCY FUNDS - the.funds 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 and capital lease obligations.

BASIS OF. ACCOUNTING

i ; ' _,,

~

IJ

.The accounting and financial reporting treatment applied to a fund is determined by its measurement

focus. All governmental funds are accounted for using a current financial resources measurement

focus. With this measurement focus, only current assets and current liabilities generally are

included on the balance sheet. Operating statements ofthese_ funds present increases (i.e., revenues

and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current

assets. Their reported fund balance_ is considered a measure of available spendable resources.

,

1 ,





: ; ..,

'_' d,;

"'-

Liabilities-which are expected to be financed from availa~le 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.

. , : - 12 -

MITCHELL COUNfY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
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:
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 p_aid 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 of the 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.

- 13 -

! I

. , MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

!
I

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000

Note I: SUMMARY OF SIGNIFICANTACCOUNTING POLICIES

BUDGET
ti
The Mitchell 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. . !..

a . .. The budget process begins when the Board'sadministration. prepares 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 ofgeneral circulation in .the locality., At the next regular meeting of the

Board after advertisement, the Board receives comments on the tentative budget, makes revisions as

necessary and adopts a final school budget. This final budget is then submitted, in accordance with

provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia

Department of Education. The Board may increase or decrease the budget at any time during the

year. All unexpended budget authority lapses at fiscal year-end.

.

'

,11.

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'fundsin one or'inore solvent banks,.insured

Federal savings and loan associations, or insured State,chartered building and loan associations.

' INVESTMENTS ,,

, ,.I.

f' r

COMPOSITION OF INVESTMENTS

; , r '.

Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of

deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and

money market investments with a maturity at purchase of one year or less are reported at amortized

cost. Both participating interest-earning contracts and money market investments with a maturity at

purchase greater than one year 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:

'I

' I'

(!) Obligations issued by the State of Georgia o~. 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,

- 14 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: S' UMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 ofgrant 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 Mitchell County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 1, 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 Mitchell County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Mitchell County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations SALES TAXES

9.75 mills

Local Option Sales Tax revenue during the fiscal year amounted to $1,586,343.95 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe Board.

- 15 -

i

. MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

. '

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and

debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to

$1,224,317.08 and was recorded in the Capital Projects and Debt Service Funds,,The State will

terminate collection of this tax once an additional $2,847,128.05 has been collected or on June 30,

2002, w. hichever occurs firs,t..

,,_>'

. INVENTORIES

.. ' \ I./

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 atthe time ofpurchase. The inventories reported on the balance sheet

for donated food commodities and for purchased foods are equally offset by reservations of fund

balance which indicates that these amounts do not constitute"available spendable resources" even

though they are a component of net current assets.

PREPAID ITEMS

Payments made to vendors for services that will benefit periods subsequent to June 30, 2000, are

c recorded as prepaid items.

-

, ;

COMPENSATED ABSENCES

.

~

Compensated absences represent obligations of the Board relating to. employees' rights to receive

compensation for future absences based upon service already rendered. This obligation relates only

to. vesting accumulating leave in which payment is probable and can be reasonably estimated. No

liabili~y has be.en recordep in the_individual funds for the current portion of this obligation as this

amount is deemed immaterial to the general purpose financial statements.

Additionally, the dollar value of accumulated compensated absences, at June 30, ,which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.

GENERAL:OBLIGATIQN BONDS:

. ',

. l , ,;

-

;,

'

..,

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-Term Debt Account Group.

. ; ,_ 16 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements of expenditures/expenses initially made from a fund that are properly applicable

to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of

expenditures/expenses 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, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the 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,



- 17 -

MITCHELL COUNfY BOARD' OF EDUCATION

EXHIBIT "F"

NOTESTO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND rnYESTMENTS '..

(4) Bonds, bills, notes, certificates of indebtedness or other oliligations of the counties or

municipalities of the State of Georgia,

'

li

l

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that

. the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopmeni authorities created bythe laws of the

State ,of Georgia. and

1 :;

.,

'

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary

corporation of the United States government; whichare fully guaranteed by the United

States government both as to principal and interest or debt obligations issued by the Federal

Land Bank, tlie Federal Hcime Loan Bank, the Federal Intermediate-Credit Bank, the

Central Bank for Cooperatives, the Farin Credit Banks, the Federal Home Loan Mortgage

Association, and the Federal National Mortgage Association.

,



, I .. , ,

, I , \ . '~.1..

,

, , , , , -....i ,

. ,- J' .: '.

CATEGORIZATION OF DEPOSITS

At June 30, 2000, the bank balances were $2,443,168.35. 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) orcollateralized with



securities h~ld by the Board or by the 'Board's agent in the Board's name.

Category 2 - C~h colliiteralized with securities_ held by the pledging financial institution's

' C 'trust department or agent in th'e Board's name: ' . ' ' . .

j

.,

Category 3 ~ Uncollateralized deposits. (This includes any bank balance that is collateralized

. ' with securities held by the pledging' fimincial. instituticitl; or by its' trust

.

~ ''depa.rtm.ent

or

agent
, ',

but

not

in the 'Bo-ard's

name:)



-

, ,.

' _,

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

. . , ~ ii. ,I 1

, lJ

< 1 i i

Risk Category

Bank Balance

1

$ 200,000.00

2

1,284,254.16

3

; . 958,914.19

Total

, . J,

, r. ', ,

$ 2..443. ,1' 6I8.35

CATEGORIZATION OF INVESTMENTS .At June 30, 2000, the carrying value of the Board'~ total investments was $4,342,13'1.65 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal

-'-is-

MITCHELL COUNrY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund I is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U. S.

Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S.

Government or any of its agencies or instrumentalities, banker's acceptances and repurchase

agreements. The weighted average maturity of Georgia Fund I may not exceed 60 days. The

weighted average maturity for Georgia Fund I on June 30, 2000, was 23 days. The average

investment duration for Fund 6 on June 30, 2000, was .80 year.



Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their F'ederally 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.



- 19 -

'. -MITCHELL COlJNIYBOARD OF EDUCATION

EXHIBIT "F"

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, assets, errors or

omissions and job related illness or injuries to empl~ye~s. However, the ~rrors or'o~issions policy

excludes coverage for sexual harassment and discrimination. ,The Board has neither significantly

reduced coverage for these. risks nor incurred losses (settlements) which exceeded the Board's

insurance coverage in any of the past three years.

.., '



The Board 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, ~hich includes, amo~g other risks, risks for sexual

harassment and discriminati011. The Board has not experienced any losses related. to these risks in

the past three years. .

C

The Board is self,insured with.regard to unemployment compensation claims. The I3oard acco.unts

. for claims within the same fund that the employee's salary and benefits were paid. Claims are

'accountedfor with expenditure and liability being.reported when it is probable that a loss:has

occurred,

and

the

a.mou. nt

of that
.

loss

can

be

reasonably

~-

'

.

estim' ate.d.

.



. ;. Changes in _the unemployment compensation claims liability during the last two fiscal years are as

follows:



~, .





i'
Beginning of Year
Liability

Claims and Changes in Estimates

Claim"s Paid

End'ofYear Liability

1999
2000
! ;

$

: 0.00' $

I 912.00 $

1 912.00 $

0.00

$

0.00 $

4 391.00 $

4 391.00 $

0.00

The

Board

has

p~rchased

surety

bonds

to

provide

additionai'ins..urance

coverage

as

.follows:
'

Position Covered

Amount

Superintendent Assistant Superintendent Controller Each Principal Each Bookkeeper Each Secretary Each Food Service Manager

$

,. r ,- ~ ,' 1 'C

$

$, . $

$

$ $

30,000.00 '5,000.00 .5,000.00 5,000.00 5,000.00 5,000.00 5,000.00

Note 5: GENERAL LONG-TERM DEBT,

?

,.

CAPITAL LEASES The Mitchell County Board of Education has entered into various lease agreements as lessee for copy machines. 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. -20-

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

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:

Pumose

Interest Rates

Amount

General Government - Series 1994 General Government - Series 1997

4.250% - 6.625% $ 3,460,000.00

3.750% - 4.650%

2,085,000.00

$ 5,545,000.00

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

follows:



Balance July I, 1999
Deductions Payments
Balance June 30, 2000

Capital Leases

General Obligation
Bonds

Total

$ 49,629.94 $ 6,340,000.00 $ 6,389,629.94

23,673.53

795,000.00

818,673.53

$ 25,2~6.:1! $ 5.5:15,000.00 $ 5,5:Z0 256 :11

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 2011-2015

$ 19,512.17 $ 1,187,137.50 $ 1,206,649.67

8,130.10 1,235,085.00 1,243,215.10

853,100.00

853,100.00

363,038.75

363,038.75

368,131.25

368,131.25

1,970,200.32 1,970,200.32

1,752,598.47 1,752,598.47

Total Principal and Interest $ 27,642.27 $ :Z :Z22,22).22 $ :Z :Z56,233,56

Deduct: Imputed Interest

1,685.86

Net Present Value of Future Minimum Lease Payments $ 25,256.41

- 21 -

_ -.MITCHELL COUNfY BOARD OF EDUCATION

EXHIBIT "F"

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 $324,756.38 for health insurance and retirement contribiitions paid on the:Bc:,ard's behalf by the following State Agencies.

'GeorgiaDepartment of Education

_ _ __

Paid to the Georgia Department of Community Health

.For Health Insurance of Non-Certified Personnel

In-the amount of $263,946.40

... ,)

Paid to the Teachers Retirement System of Georgia

For Teachers Retirement System (TRS) Employer's Cost

. In the iunount of$16,4rl.98.

'

Office of Treasury and Fiscal Services Paid to the Public School Employees ~etirement System For Public S_chool Employees Retirement (PSERS) Employer's Cost

- In the amount of $44,398.00

, ':" . .

.

'

.

;. ,. . .

Note 7: SIGNIFICANT COMMITMENTS

r: . The following is an aria:Jysis ofsignificant o_utsfanding construction or renovation contracts executed

by

t.he '

Board . .-

as
-.

of June.'

30,
,.

2000:
' "\ - ...

"

. '
l - '.
Project

. '' ..._ .

Unearned .:Executed.
Contracts

1997 Bond Issue Projects

$ 659,753.87

' ); -~ '' .. : '

''--'. .

. ' , ! .. t i

The amounts described in.this note are not reflected in the general purpose financial statements.

Note 8:' CONTINGENT LIABILITIES

. /.r

I.

.'J ., .

;"

' '. '

~

l '



-

'

~ .

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

review by,gi-antor agencies.. _This could result in requests for reimbursement to the grantor agency

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

disallowances, if any, will_be i~ateri_a_l t~ its_ overall financial position.; . _ , , . _.

Note 9: -ACCUMULATED EMPLOYEES' LEAVE

1

The Board's employees earn sick leav~ b~ed upon classification of employees up to a maximum accumulation of 70 days for certified personnel and 35 days for non-certified personnel. Upon retirement, employees with five consecutive years service in the system immediately preceding retirement are eligible for compensation for unused leave up to a maximum of45 days at the current substitute teacher daily rate of pay. See Note 1 - Compensated Absences

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 10: RETIREMENT PLANS

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

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

Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,278,000.77 $ 1,276,586.22 $ l;l 72,253.74
I

- 23 -

MITCHEliL'COUNTY BOARD OF EDUCATION , l COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2000

ASSETS

. Cash' and Cash Equivalents

..,
Investments , .

.. ,

Accounts Rec.eivable , :

Inventories Food Donated Commodities Purchased Food

-" f , I scHOOL
F.OOP
SERVICES
FUND
i," '..

$

, 23,821.60 $

'

LOTTERY PROGRAMS
66,250.56

t i I
' - . t. 17,237.40 ,7 329.18

6,376.91 , ,

fetal Assets

l"'J

$

533,703.76 _$ ===7=2.,;;,6;;;2=7.4..7.,.

LIABILITIES AND,FUN!) 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

$

14,849.24 $. _.' 14,695.06

60,295.56

57,932.41

$

75 144.80 $ ___7.:..:2:.6,,,2=-'7-".4:..:.7_

$

17,237.40

7,329.18

433 992.38 $ _ _ _ _..=0:.:.,.0:..:0c...

$

458 558.96 $ _ _ _ _.,0:.:.,:0=-=0c..

Total Liabilities and Fund Equity
See notes to the general purpose financial statements. - 24 -

$

533,703.76 $ ===7=2e=,6=27=.4=7=

EXHIBIT "G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

90,072.16 $

29,276.00

485,315.58

609,460.60

$

228,736.28

235,113.19

269,871.04

17,237.40 7 329.18

18,798.43 7 532.14

$

228,736.28 $

835,067.51 $ ==9=3=4~,9~3=8.=21=

$

52,557.21 $

52,557.21 $

52,379.90

35,381.57

64,925.87

60,381.68

128,866.86

247,094.83

230,271.79

1,832.42

1 832.42

6,621.83

$

218,638.06 $

366 410.33 $

349,655.20

$

10,098.22 $

10,098.22 $

2,517.25

17,237.40 7,329.18

18,798.43 7,532.14

0.00

433,992.38

556,435.19

$

10,098.22 $

468 657.18 $

585,283.01

$

228,736.28 $

835,067.51 $ ===934~,9~3=8.=21=

- 25 -

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

REVENUES

State Funds Federal Funds Other Funds

Total Revenues

EXPENDITURES

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

Total Expenditures
Excess of Revenues over (under) Expenditures .,,

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

Total Other Financing Sources (Uses)

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

FUND BALANCE JULY 1

.:, ,-,

Food Inventory - Net Change in Period Donated Commodities

'

-

Purchased Food

SCHOOL FOOD
SERVICES . FUND

LOTTERY PROGRAMS

$ .

89,476.00 $

1,025,035.25

.. 202,888.48

"

'

$ '1,317,399.73 $

583,808.61 583,808.61

.' .

$

486,531.01

70,466.08

$ .1,413,575.78

$ 1413575.78 $

$

-96 176.05 $

.' .

15,476.64 9,383.92 1,393.26
557.70 583,808.61
. 0.00

$

-26,266.76

$

.. -26,266.76 .,

$

-122,442.81 $

0.00

582,765.76

0.00

' -1,561.03
-202.96

FUND BALANCE JUNE 30
See notes to the general purpose financial statements. 26

$

458,558.96 $ ====,;;;0,;;,00=

EXHIBIT "H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

673,284.61 $

650,704.33

$ 1,825,061.57

2,850,096.82

2,714,776.71

202,888.48

215,099.00

$ 1,825,061.57 $ 3,726,269.91 $ 3,580,580.04

$ 1,318,246.57 $ 1,804,777.58 $ 1,660,249.09

42,600.20 202,228.45
18,334.36 32,746.07
920.56 9,725.16 13,619.52 222,748.03

113,066.28 202,228.45
18,334.36 32,746.07 15,476.64 10,304.48 11,118.42 13,619.52 222,748.03 1,414,133.48

79,406.89 161,432.81 16,519.25 107,487.42 10,246.68 21,483.39 12,045.09 12,863.04 219,979.81 1,333,052.74

$ 1,861,168.92 $ 3,858,553.31 $ 3,634,766.21

$

-36 107.35 $

-132,283.40 $

-54186.17

$

43,688.32 $

43,688.32 $

50,363.92

26,266.76

$

43,688.32 $

17 421.56 $

50,363.92

$

7,580.97 $

114,861.84 $

3,822.25

2,517.25

585,283.01

588,333.17

1,561.03 202.96

-205.86 977.95

$

10,098.22 $

468,657.18 $ ===58=5=,2=8=3...,01=

27

MITCHELL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30. 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

, ., l

GEORGIA STATE

,'FINANCING AND

BOND

INVESTMENT

PROCEEDS

COMMISSION

$

20,309.33

$ ~. '.854,029.50

$

854,029.50 $ ===2=0:e,3=0=9.=33;;,.

LIABILITIES AND FUND EQUITY.
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

18,484.62,

117,446.94

18,329.81
' '

$. _ _1:..:,5c.:.4,::2::::.61:..:;,3e.,:7_

-$ .: 699,768.13i. r

'.
J_

$
- -
0.00

20,309.33 0.00

$

699 768.13 $

20 309.33

,. $ ' . 854,029.50 $ ===20;;,i,=30=9~.3=3=

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

EXHIBIT "I"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

20,309.33 $

1,696.27

$

459,660.60

1,313,690.10

2,427,839.81

208,527.95

208,527.95

176 036.21

$

668, 188.55 $

1,542,527.38 $

2,605,572.29

$

18,484.62

117,446.94 $

137,814.45

18 329.81

17 302.42

$

- - - ~ ~ - 154261.37 $

155116.87

$

699,768.13 $ 1,861,080.51

$

668,188.55

668,188.55

569,065.58

20,309.33

20,309.33

0.00

0.00

0.00

$

668,188.55 $

1,388,266.01 $

2,450,455.42

$

668,188.55 $

1,542,527.38 $

2,605,572.29

- 29 -

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

BOND PROCEEDS

GEORGIA STATE .. FINANCING AND
INVESTMENT COMMISSION

REVENUES

Taxes Other Funds

$

76,924.00 $

0.00

Total Revenues

$

76 924.00 $

0.00

EXPENDITURES

Capital Outlay Professional and Technical Services Supplies Dues and Fees Land and Land Improvements Building and Building Improvements Equipment

$

35.062.82 $

398.97

1,280.00

1.335.368.97

0.00

Total Expenditures

$ .. ' 1,372,110.76 $

0.00

Excess of Revenues over (under) Expenditures

$ -1,295,186.76 $

0.00

OTHER FINANCING SOURCES {USES)

Operating Transfers In Operating Transfers Out

$

133.874.38

Total Other Financing Sources (Uses)

.$

133,874.38



Excess of Revenues and Other Financing.Sources;

over (under) Expenditures and Other Financing Uses

$ -1.161,312.38 $

0.00

r--'--

FUND BALANCE JULY 1

1.861.080.51

20.309.33

--

i ,"'I.

Adjustments

For Prior Year Contracts Payable

.. l,:'

FUND BALANCE JUNE 30

$

699 768.13 $

20,309.33

See notes to the general purpose financial statements. , 30 -

EXHIBIT "J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

84,200.35 $

84,200.35 $

15,352.25

14,922.62

91,846.62

105,384.58

$

99,122.97 $

176,046.97 $ _ _.:..,12,.,,0.!.!,7-"36"'."'83::...

$

0.00 $

35,062.82 $

26,662.90

398.97

1,280.00

10.00

29,218.00

1,335,368.97

233,525.70

13,550.57

$

0.00 $ 1,372,110.76 $

302,967.17

$

99,122.97 $ -1,196,063.79 $

-182,230.34

$

133,874.38 $.

230,057.77

-230,057.77

$

133 874.38 $

0.00

$

99,122.97 $ -1,062, 189.41 $

-182,230.34

569,065.58

2,450,455.42

2,612,633.73

20,052.03

$

668.188.55 $ 1,388,266.01 $ 2.450,455.42

31

MITCHELL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2000

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTAlS JUNE 30, 2000 JUNE 30, 1999

$

401.33

119,094.44

$

401.33 $

191.76

119.094.44

112,556.38

81.57

$

1 470.06

1 470.06

1 294.43

Total Assets

$ 119495.77 $

1 470.06 $ 120,965.83 $ ==1,;,;1~4~1;;24~,.:,;14;,.

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved U_ndesignated

$ 119.495.77 $ 0.00

1.470.06 $ 0.00

120.965.83 $ 114,124.14

0.00

0.00

Total Fund Equity $ 119,495.77 $

1 470.06 $ 120,965.83 $ ==1,;,,;1~4.,;1=24=,;.14;,,.

See notes to the general purpose financial statements. 32 -

MITCHELL COUNTY BOARD OF EDUCATION

EXHIBIT "L"

COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

YEAR ENDED JUNE 30 2000

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30. 1999

REVENUES
Taxes
Other Funds

'1

$

120.44 $ 1,140,116.73 $ 1,140,237.17 $ 1,103,704.86

6 545.62

6 545.62 I

5 670.36

Total Revenues

$

6,666.06 $ 1140116.73 $ 1 146 782.79' $ 1,109,375.22

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$

0.00 $ 795,000.00 $ 795.000.00 $ 745,000.00

344,388.13

344,388.13

377,013.13

552.97

552.97

6a7.03

Total Expenditures

$

0.00 $ 1139941.10 $ 1139941.10 $ 1,122.700.16

Excess of Revenues over (under) Expenditures $

6,666.06 $

175.63 $

6,841.69 $

-13,324.94

FUND BALANC!; JULY 1

112,829.71

1 294.43

114124.14

127 449.08

FUND BALANCE JUNE 30

$ 119495.77 $

1 470.06 $ 120.965.83 $ -==11..4,.1"2=4=.1=4=

See notes to the general purpose financial statements.

-33-

. MITCHELL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30 2000

EXHIBIT "M"

ASSETS Cash and Cash Equiv~len~ _ Investments

NONEXPENDABLE TRUST FUND
ENDOWMENT FUND
_s;. M.'STRIPLl~G
VOCATIONAL-
EDUCATIONAL SCHOLARSHIP

AGENCY FUND

TOTALS . JUNE 30, 2000 JUNE 30, 1999

5,292.52 $

2,000.00 $

7,292.52 $ '. 5,329.21

10 000.00

10 000:00 , -~10=00~0~.o~o~

Total Assets

$

' LIABILITIES AND FUND EQ!JITY
,'. ~ I,
LIABILITIES

Funds Held for Others

FUND EQUITY

Fund Balances

Reserved

For.Endowment Corpus

$

Unreserved

Undesignated

Total Fund Equity

$

15 292.52 $
'
$

2 000.00 $ 17 292.52 $ 15 329.21

<I
'I.

V :I

2 000.00 $

2 000.00

10,000.00 5 292.52 $ 15 292.52 $

$ 0.00 0.00 $

10,000.00 $ 5,292.52 15 292.52 $

10,000.00 5 329.21 15 329.21

Total Liabilities and Fund Equity $

15 292.52 $

2 000.00 $ 17,292.52 $ ====15=''=32=9=.2..1..

See notes to the general purpose financial statements.

-34-

MITCHELL COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30 2000

EXHIBIT "N"

RETIRED EDUCATORS PARK FUND

BALANCE JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

ASSETS Cash and Cash Equivalents

$

0.00 $

2,000.00 $

0.00 $ ===2..,0,..00=.0=0=

LIABILITIES Funds Held for Others

$

0.00 $

2,000.00 $

o.oo $ ===2..0..0..0.=oo=

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

,.., - MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2000

FUNDING AGENCY PROGRAM/GRANT
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

CFDA NUMBER

PASSTHROUGH
ENTITY
ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

NIA $ NIA
$

268,572.69 701 124.05 $
969,696.74 $

:121
1 358 237.27 (3) 1,358,237.27

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

C.

NIA

55 338.51

. 55 338.51

$ 1 025 035.25 $

1413575.78

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 Part C- Special Education Special Education Capacity Building Improvement
Total Special Education Cluster

84.027 84.173
84.173

NIA $ NIA
NIA
$

239,723.20 $ 19,203.11
2 053.58
260,979.89 $

239,723.20 19,203.11
2 053.58
260,979.89

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies. Class Size Reduction Goats2000 State and Local Education Systemic lmprovemenfGrants Vocational Education - Basic Grants to States ~igh School Program Basic Grant
Total U.S. Department of Education

84.010 84.281 84.298 84.340 84.276
84.048

NIA

1,145,347.31

1,146,530.31 (4)

NIA

34,688.00

25,924.03

NIA

35,688.00

35,688.00

NIA

148,09[00

148,096.00

NIA

77,662.67

77,662.67

NIA

67 649.90

67 649.90

$ 1770111.77 $

1 762 530.80

Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources School Linked Health Services Grant

93.778

NIA $

13 750.00 $

30 944.35 (3)

Labor, U. S. Department of Pass-Through From Southwest Georgia Regional Educational
Service Agency Job Training Partnership Act 99-B-97

17.250

NIA $

18 526.13 $

18 526.13

QIHER FEQEBeib FINANCIAL ASSISTAN~!;

Defense, U. S. Department of
Direct Department of the Air Force R.O.T.C.. Program

$

36 423.67 $

80111.99 (3)

Total Federal Financial Assistance
NIA = Not Available

- 36

$ 218631846.82 $

313051689.05

MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2000
Notes to the Schedule of Exoendityres gf 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.
(4) Includes Federal Assistance of $196,435.00 provided to subrecipients.
Major Programs are identified by an asterisk(..) in front of the CFDA number.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Mitchell 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"

J I

See riotes to the general purpose financial statements.

37

MITCHELL 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

Education, Georgia Department of

Quality Basic Education
General and Career Education Programs $

6,437,784.00

Special Education Programs Remedial Education Program Media Center' Programs Staff Development Programs Indirect Cost

1,374,297.00 289,609,00
271,563.00 76,838.00
1,762,157.00

. Pupil Transportation Regular Bus Replacement
Middle School Incentive Program Special Instructional Assistance In-School Suspension Migrant Education Counselors Grades 4 and 5

. 466,015.00 146,649.00 222,984.00 213,104.00 68,368.00
2,564.00 23,699.00

Technology Specialist Local Five Mill Share

28,842.00 -1,533,712.00

Educational Equalization Formula Food Services Vocational Education

577,414.00 $
22,234.00

Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement

95,988.00 15,176.92
1,500.00 263,946.40
5,000.00 6,480.00 36,429.00 7,571.00 16,411.98

Lottery Programs

Assistive Technology

. Computers in the Classroom

Distant Leaming

' '
$
89,476.00
16,083.99 65,489.00
6,376.91

Hu.man Resources, Georgia Department of School Linked Health Services Grant

13,750.00

Office of School Readiness Pre-Kindergarten Program

495,858.71

Office of Treasury and Fiscal Services Public School Employees Retirement

44,398.00

CONTRACTS Education, Georgia Department of Reading Challenge Program Reading First Program

90,000.00 31 504.00

1r:
TOTAL
6,437,784.00 1,374,297.00
289,609.00 271,563.00
76,838.00 1,762,157.00
466,015.00 146,649.00 222,984.00 213,104.00
68,368.00 2,564.00
23,699.00 28,842.00 -1,533,712.00 577,414.00 89,476.00 22,234.00
95,988.00 15,176.92
1,500.00 263,946.40
5,000.00 6,480.00 36,429.00 7,571.00 16,411.98
16,083.99 65,489.00
6,376.91
13,750.00
495,858.71
44,398.00
90,000.00 31 504.00

$ 11,078,564.30 $

'673,284.61 $ 11,751,848.91

See notes to the general purpose financial statements. - 38 -

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

I' SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

Capital Outlay Projects $

4,134,729.00 $

Existing Debt

2,066,698.00

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

8,848,877.55 $

1,372,110.76 $ 1,492,712.42

2,066,698.00

332 235.63

507 435.23

$

6,201,427.00 $

10,915,575.55 $

1 704 346.39 $ 2,000,147.65

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion.

(3) The voters of Mitchell County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board has incurred interest to provide advance funding for the above projects as follows:

Prior Years $

371,505.01

Current Year

117152.50

Total

$ ====4=88.,.6=5=7..5...,1

See notes to the general purpose financial statements. - 39 -

MITCHELL COUNTY BOARD OF EDUCATION

: SCHEDULE "4"

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
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS . PORTION OF FOURTEEN WEIGHTED i PROGRAMS

$

8,373,253.00 $

262,847.00

$

8,586,662.37

623,924.26 $ __ _,c56,,,S,.e,6,c.:5c,4~.3:::.2

$

9,210,586.63

-114,873.14 $ _ _..:!,9,:,_,0:,c95e.,,,7.,_1:.:,3:::,.4:,c.9

$

o.oo s======o=.o=o

See notes to the general purpose financial statements. 41

- MITCHELL COUNTY BQARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM ,
GENERAL FUND-QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 2QQO

GE~!;RA!,, AND CAREER EDUCATION PROGRAMS
, Kiridergarte;, (*) (
Grades 1 - 3 (*)

'~ sub-Total - K-3

Grades 4 5 (*)
- ~ Grades s-a (*)

,. - , .... ' '

Grades 9 - 12 ("I

High School LaboratorieS'(*)

Vocational Education iiiboratories (*)

Total General and Career Education Programs

SPECIAL EQUCAIIQN PROGRAMS
Regular Programs Category II (*)
,, Category Ill(")
Category IV (")

Sub-Total - Regular Category VI (Gifted)(")

Total Special Education Programs.
REMEQ!Ab f;.IJUCAIIQN PBOGBAM C*l
Total Fourteen Weighted Programs

MEQIA Ci;~Jl;R PROGRAMS
Salaries Operations

Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$

651,423.00

$

586,280.70 $

1,710,100.00

1,539,090.00

.$ 2,361,523.00 90 $ 2,125,370.70 $

707,150.00 90

636,435.00

1,336,151.00 90

1,202,535.90

1,048,977.00 90

944,079.30

363,532.00 90

345,178.80

600,451.00 90

540,405.90

$ 6,437,784.00

$ 5,794,005.60 $

0.00 0.00
.. ;
0.00

$ 1,323,TT4.00

$ 1,191,396.60 $

0.00

$ 1,323,TT4.00 90 $ 1,191,396.60 $

0.00

50,523.00 90

45,470.70

$ 1:374,297.00

$ .1,236,867.30 $

0.00

$

289,609.00 90 $

260,648.10 $

0.00

$ 8,101,s9e.oo

$ 7,291,521.00 $

0.00

$

216,167.00 90 $

194,550.30 $

55 396.00 100

55,396.00

$

211:563.00

$

249,946.30 $

0.00

0.00

Total Fourteen Weighted and Media Center Programs

s 8,373,253.00

$ 7,541,467.30 $

0.00

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

$

24,934.00

51,904.00

$

24,934.00 $

51 904.00

0.00 0.00

$

'76,838.00 100 $

76,838.00 $

0.00

See notes to the general purpose financial statements.

,

- 42 -

SCHEDULE 5

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

586,260.70 $

757,692.S6 $

26,037.66 $

763,730.42

1,539,090.00

1,700,293.03

92,582.23

1,792,675.26

s s 2,125,370.70

2,457,965.59 $

s s 118,620.09

2,576,605.66

0.00

636,435.00

746,063.96

72.432.66

616,496.66

0.00

1,202,535.90

1,247,366.95

96,932.77

1,344,321.72

0.00

944,079.30

1,094,164.34

154,633.40

1,248,817.74

0.00

345,176.60

531,544.57

5,252.92

536,797.49

0.00

540.405.90

582,748.01

76.475.60

659,223.61

0.00

s s s 5,794,005.60

6,659,915.44

s 524,347.46

7,164,262.90

$ 1,191,396.60 $

626,694.76 $ 497,675.60 134,396.06

27,673.66 $ 5,400.00
60.00

6S6,S66.46 503,275.60 134.4S6.06

$ 1,191,396.60 $

1,260,966.64 $

33,333.66 $ 1,294,300.32

0.00

45,470.70

46,9S6.03

5,014.47

51,970.50

0.00

$ 1,236,667.30 $

1,307,922.67 $

38,346.15 $ 1,346,270.62

$

260,646.10 $

s 290,658.06

2 956.71 $ . 293 616.77

0.00

$ 7,291,521.00 $ 6,256.496.17 $

56s,654.32 $- 6,624,150.49

$

194,550.30 $

326,166.20

s

326,166.20

0.00

55,396.00

$

58,269.94

58,269.94

0.00

$

249,946.30 $

326,166.20 $

58,269.94 $

386,436.14

s 7,541,467.30 $

6,586,662.37 $

623,924.26 $ 9,210,586.63 $

0.00

s

24,934.00

51,904.00

s _ _.a.16"'"'638_,,.o,..o

s

46,645.49 $

46,645.49

42,589.29

42,589.29

$

91,234.76 $

s1.234.76 s _ _ _ _ _ _ _o..._oo_

43

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

w. RUSSELL HINTON
STATE AUDITOR
(404) 656-2174

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

March 26, 2001

. Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Mitchell 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 Mitchell County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 26, 2001 '. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial. audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Mitchell 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our 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 Mitchell County Board of Education's internal control o~er financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencie~ in the design or operation of the internal control over financial reporting that, in ourjudgment, could'adversely affect Mitchell County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7011-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members ofthe Mitchell 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-40

State Auditor

w. RUSSELL

HtNTON

STATE AUDITOR

(404) 656-2174

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S. W., Suite 214 Atlanta, Georgia 30334-8400
March 26, 2001

.Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Mitchell County Board of Education

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

Ladies and Gentlemen:

Compliance

We have audited the compliance of Mitchell County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year end~d June 30, 2000. Mitchell County Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal ~rograms is the responsibility ofMitchell County Board ofEducation's management. Our responsibility is to express an opinion on Mitchell County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the

standards applicable to financial audits contained in Government Auditing Standards, issued by the

Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local

Governments, and Non-Profit Organizations. Those standards and 0MB Circular As133 require that

we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the

types of compliance requirements referred to above that could have a direct and material effect on a

major Federal program occurred. An audit includes examining, on a test basis, evidence about the

Mitchell County Board of Education's compliance with those requirements and performing such

other procedures as we considered necessary in the circumstances. We believe that our audit

provides a reasonable basis for our opinion. Our audit does not provide a legal determination on

Mitchell County Board ofEducation's compliance with those requirements.



2000SA-10

In our opinion, the Mitchell County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Mitchell County Board of Education is responsible for 6stablishing 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 Mitchell 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 t.o 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 compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involvingthe internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members of the Mitchell 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 Z000SA-10

State Auditor

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

MITCHELL 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-7011-98-02 FS-7011-99-0 I FS-7011-99-02

Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7011-99-02

The Mitchell County Board ofEducation has developed an inventory database and is in the process of gathering and compiling all ofthe necessary information.

SECTIONN FINDINGS AND QUESTIONED COSTS

MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

I. Type of Report Issued on the Financial Statements The auditor's opinion on the Mitchell County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Mitchell County Board ofEducation disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

The reportable condition described above is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Mitchell 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 Mitchell County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for MajorPrograms

,

The auditor's opinion on the Mitchell County Board of Education's report on compliance

with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51 O(a) of 0MB Circular A-133

The Mitchell County Board of Education's audit did not disclose audit findings required to

be rep.orted by section .510(a) 9fOMB 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 Mitchell County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.

- 1-

MITCHELL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED'COSTS
. YEAR ENDED JUNE 30; 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

GENERAL FIXED ASSETS

+

'.

Failure to Maintain General Fixed Assets AccouiltGroup

Reportable Condition - Material Weakness

Repeated From Prior Year

Finding Control Number: FSs7011-00-0l

C

The Mitchell County Bqard.of Education did.not maintain,a system-wide. General Fixed Assets Account Group within the formal acco1U1ting 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 b~ taken by,:the, Board, to establish ,accounting .controli; and procedures to provide for maintenance of a General Fixed Assets Account Group. The subsidiary records should include an inventory of land, buildings and equipment owned by the Board.and should include but may not be li!Jlited 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.
,- .

,i. III . FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported,

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