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AUDIT REPORT MURRAY COUNTY BOARD OF EDUCATION
CHATSWORTH, GEORGIA YEAR ENDED JUNE 30, 1998

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

MURRAY 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

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

11

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

24

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

28

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

MURRAY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

EXlllBITS

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

M

COMBINING BALANCE SHEET

30

N

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

31

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

32

2 SCHEDULE OF STATE REVENUE

34

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

36

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

37

6

BY PROGRAM

38

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-B3

SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

MURRAY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 18, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Murray 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 auditedthe accompanying general purpose fmancial statements of the Murray County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Murray 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 fmancial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As described in the notes to the general purpose fmancial 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 General Fixed Assets

~ccount Group to account for property and equipment owned by the Board which should be

X<included to conform to generally accepted accounting principles. .

.

98ARL-13A

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. 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.
* Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000
Issues, requires disclosure of certain matters regarding the year 2000 issue in order for financial statements to be prepared in conformity with generally accepted accounting principles. Such required disclosures include:
o Any significant amount of resources committed to make computer systems and other electronic
equipment year 2000 compliant;
o A general description ofthe year 2000 issue, including a description ofthe stages ofwork in process
or completed as of the end of the reporting period to make computer systems and other electronic equipment critical to conducting operations year 2000 compliant.
o The additional stages of work necessary for making the computer systems and other electronic
equipment year 2000 compliant.
Murray County Board of Education has omitted such disclosures. We do not provide assurance that Murray County Board of Education is or will be year 2000 ready, that Murray County Board of Education's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Murray County Board of Education does business will be year 2000 ready.
The aggregate effects on the general purpose fmancial 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 Murray County Board of Education as of June 30, 1998, 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 Government Auditing Standards, we have also issued our report dated March 18, 1999, on our consideration ofthe Murray County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
98ARL-13A

Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Murray County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through N) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits o/States, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional 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 ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~v4pr: ;:t;.,~
Claude L. Vickers State Auditor
CLV:gp 98ARL-13A

MURRAY COUNTY BOARD OF EDUCATION

MURRAY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES ANp ACCOUNT GROUP JUNE 30.1998

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

243,269.93 $

928,085.28 $ 7,117,796.58

314,457.74

88,198.00

213,786.40

85,744.37 19,130.25

Total Assets

$

557,727.67 $ 1,121,157.90 $

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others General Obligation Bonds Payable
Total LIabilities
FUND EgUITY
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

$

46,327.21

223,169.61

31,175.10

$

279,n5.67 322,293.27

$

300,671.92 $ _ _~60=2"",06=8.:.::.;.9.4.

$

85,744.37

19,130.25

$ 5,836,283.95

27,288.04

784,144.05

$

557,727.67

715,611.36

81,798.00

$

557,727.67 $

820,485.98 $ 6,729,514.04

Total LIabilities and Fund Equity

.. $

557:727.67 $ 1,121,157.90 $ 7,331,582.98

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum OrilY) JUNE 30, 1998 JUNE 30,1997

$

893,624.17 $

45,277.67

$ 9,228,053.63 $ 11,779,228.67

397,497.62

1,193.20

1,015,132.96

474,944.70

$

1,291,121.79

9.783.878.21

85,744.37 19,130.25
1,291,121.79

52,552.08 20,629.95
145,702.04

9,783,878.21

11.484,297.96

$ 1,291.121.79 $

46.470.87 $ 11,075,000.00 $ 21.423:061.21 $ 23,957,355.40

$

46,327.21 $

36,704.52

223,169.61

204,926.99

31,175.10

37,002.39

279,775.67

322,293.27

234,838.49

$

6,196.97

6,196.97

4,916.36

$ 11,075,000.00

11,075,000.00

11,630,000.00

$

6,196.97 $ 11,075,000.00 $ 11 ,983,937.83 $ 12,148,388.75

$ 1,291,121.79 $

22,000.00

0.00 $ 1,291,121.79 $

18,273.90 40,273.90

$ $ 1,291,121.79
22,000.00

6,331.12 51,227.30 22,000.00

85,744.37 19,130.25 5,836,283.95 27,288.04 784,144.05

52,552.08 20,629.95 8,596,715.44
985,999.08

1,373,410.93

2,073,511.68

$ 9.439,123.38 $ 11 ,808,966.65

$ 1,291.121.79 $

46,470.87 $

11,075,000.00 $ 21.423,061.21 $ 23,957,355.40

-3-

MURRAY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1998

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Premium on Bonds Sold Payments to Bond Escrow Agent Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
The notes to the general purpose financial statements are an integral part of this statement
-4 -

GENERAL FUND

SPECIAL REVENUE
FUND

$ 21,221,017.67 $ 18,035.04
6,347,895.43 282,695.54
$ 27,869,643.68 $

803,692.99 2,151,389.72
1,046,239.21
4,001,321.92

$ 19,424,755.69 $
1,039,610.82 643,050.03 847,424.24 406,851.84
1,778,760.66 188,581.59
2,212,770,14 1,264,613.47
330,630,74
159,538.13

1,727,161.13
98,262.85 134,299.16
56,394.27
1,570.35 29,405.89
177.00 2,140,114.73
366.13

$ 28,296,587.35 $

$

-426,943.67 $

4,187,751.51 -186,429.59

$

$

-369,336.67

$

-369,336.67 $

$

-796,280.34 $

1,354,008.01

369,336.67
369,336.67
182,907.08 605,856.40
33,222.20 -1,499.70

$

557,727.67 $

820,485.98

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1998

JUNE 30,1997

$ 3,882,132.85

$ 25,906,843.51 $ 22,566,650.63

2,169,424.76

2,037,054.17

$ 2,170,762,88

8,518,658.31

6,955,745.38

414,817.20

27,363.64

1,77U15.59

1,512,704.54

$ 4,296,950.05 $ 2.198,126.52 $ 38,366,042.17 $ 33,072.154.72

$

2,882.69

7,229,065.84 $
$ 7,231,948.53 $ $ -2,934,998.48 $

$ 21,151,916.82 $ 19,080,947.46

1,137,873.67 777,349.19 847,424.24 463,246.11
1,778,760.66 191,464.28
2,214,340.49 1,294,019.36
330,630.74 177.00
2,140,114.73 366.13
7,388,603.97

1,432,438.67 555,601.74 758,787.57 387,797.81
1,472,150.28 309,050.81
1,946,433.00 1,302,965.74
304,544.17 1,612.11
2,087,498.12 316.83
4,862,338.60

555,000.00 496,145.81
1,560.96

555,000.00 496,145.81
1,560.96

160,000.00 209,010.00
1,561.92

1,052,706.77 $ 40,768,994.16 $ 34,873,054.83

U45,419.75 $ -2,402,951.99 $ -1,800,900.11

$

51,118.06

$

369,336.67

-369,336.67

11,630,000.00 52,946.00
-3,573,641.00 16,000.00 -16.000.00

$

0.00 $ 8,160,423.06

$ -2,934,998.48 $ 9,664,512.52

1,145,419.75 $ 145,702.04

-2,402,951.99 $ 11,770,078.97

6,359,522.95 5,385,492.32

33,222.20 -1,499.70

26,748.22 -1,684.52

$ 6:729,514.04 $ 1,291,121.79 $ 9,398,849.48 $ 11:770,078.97

-5-

THIS PAGE LEFT BLANK

MURRAY 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 3D, 1998

EXHIBIT"C"

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

MURRAY COUNTY BOARD OF EDUCATION :STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND
YEAR ENDED JUNE 30, 1998

EXHIBIT "D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES None Recorded
NONOPERATING REVENUES Interest Earned Total Income
FUND BALANCE JULY 1

ENDOWMENT FUND
FRED L.AND MINNIE B, DUNN
TRUST FUND

TOTALS (Memorandum Only)
YEAR ENDED
JUNE 30,1998 JUNE 30,1997

$

0.00 $

0,00 $

0.00

$

0,00 $

0.00 $

0,00

$

1,386,22 $

1,386,22 $

987,83

$

1,386,22 $

1,386,22 $

987.83

38,887,68

38,887,68

37,899,85

FUND BALANCE JUNE 30

$

40,273,90 $

40,273.90 $ =====3.8.,_88.7....6....8..

The notes to the general purpose financial statements are an integral part of this statement. -8-

MURRAY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1998

EXHIBIT"E"

Cash Flows from Investing Activities: Interest Received on Investments.
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
FRED L.AND MINNIE B. DUNN
TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

$

1,386.22 $

1,386.22 $

1,389.02

37,694.48

37,694.48

36,305,46

Cash and Cash Equivalents - June 30

$

39,080.70 $

39,080.70 $ ========37""",6=9=4.4..=8

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

THIS PAGE LEFT BLANK

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Murray County Board ofEducation (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 fmancial 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 ofthese accounts are reflected in these fmancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a 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.
SPECIAL REVENUE FUND - the fund Used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
- 11 -

MORRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND 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, other government units and/or other funds. These funds include:
NONEXPENDABLE TRUST FUND Fred L. and Minnie B. Dunn Trust Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used as designated by the . Board.
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.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., expenditures and other fmancing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which ar~ 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.
All nonexpendable trust funds are accounted for on a flow ofeconomic 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 of results of operations.
- 12-

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (Le., when they become both measurable and available). "Measmable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual' are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above defInitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, ~998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than whfm 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 of accounting in recognizing assets and liabilities.
BUDGET
The Murray County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the function level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
- 13 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a fmal school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose fmancial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Murray County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 20, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Murray County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board.

The tax millage rate levied for the 1997 tax year (calendar year) for the Murray County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

13.5 mills

SALES TAXES

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 collected by the State and remitted to the BQard during the

- 14-

MURRAY COUNTY BOARD OF EDUCATION

EXIllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
fiscal year amounted to $2,143,401.49 and was recorded in the Debt Service Fund. The State will tenninate collection of this tax once an additional $11,456,598.51 has been collected or on June 30, 2002 whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose fmancial 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 OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types ofinterfundtransactions:

- 15 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements ofexpenditures/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
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 of money 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 ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 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 ofanyone of or any combination ofthe following:
(l) 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 ofindebtedness or other direct obligations ofthe United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia,
(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,

- 16-

MURRAY COUNTY BOARD OF EDUCATION

EXIllBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

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 and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $10,696,232.68. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, i 998, as follows:

Risk Category

Bank Balance

1

$ 1,091,928.30

2

7,759,034.08

3

1,845,270.30

Total

$10,696.232,68

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 .. Inventories

- 17 -

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board has designated an independent contractor to operate a risk management program for Workers' Compensation. Claims paid by the contractor are reimbursed by the Board's General Fund. Each fund budgets for estimated claims based on known claims and prior experience. Reimbursement to the General Fund is made from each fund based on actual claims paid. During the year under review, the Board's General Fund incurred expenditures of $129,324.36 for claims and related expenses incurred by the contractor. Additional insurance coverage is provided through a policy with Midwest Employers Casualty Company to provide coverage for potential losses sustained by the Board in excess of$225,000.00 loss per occurrence, up to the statutory limit. Also should losses within the retained limit of $225,000.00 aggregate to more than $700,200.00, the policy with Midwest Employers Casualty Company will pay the next $1,000,000.00.

Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

1997 1998

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $ 209.514.24 $

$

0.00 $ 129.324.36 $

Claims Paid

End ofYear Liability

209,514.24 $

0.00

129;324.36 $

0.00

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 of that loss can be reasonably estimated.

Changes in the unemployment compensation claims li~bility during the last two fiscal years are as follows:

1997 1998

Beginning ofYear Liability

Claims and Changes in Estimates

$

0.00 $

3,120.00 $

$

0.00 $

208.00 $

Claims Paid

End ofYear Liability

3,120.00 $

0.00

208.00 $

0.00

- 18-

MURRAY COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 4: RISK MANAGEMENT

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

Position Covered
Superintendent Each Principal Finance Director R.O.T.C. Director

Amount
$ 25,000.00 $ 15,000.00 $ 25,000.00 $ 25,000.00

Note 5: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose General Government - Refunding - Series 1997

Interest Rates 4.00% - 5.00%

Amount $11.075,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Balance July 1,1997
Deductions Payments
Balance June 30, 1998'

General Obligation
Bonds $11,630,000,00
555,000.00 $11.075.000.00

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
1999 2000 2001 2002 2003
Total Principal and Interest

General Obligation
Bonds
$ 2,893,050.00 2,768,412.50 2,732,625.00 2,758,375.00 1.281.250.00
$12.433.712.50

- 19-

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1998

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1997, the Board defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1998, $3,205,000.00 ofbonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $585,797.05 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$512,130.05

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $73,667.00

Note 8: SIGNIFICANT COMMITMENTS

Governmental Accounting Standards Board Technical Bulletin 98-1 requires certain disclosures in the Notes to the General Purpose Financial Statements concerning an entity's computer related year 2000 readiness. These disclosures, which are necessary to comply with generally accepted accounting principles, have not been made by the Board.

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as ofJune 30, 1998, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

GSFIC 97/96S-705-034 GSFIC 97/96S-705-036

$ 2,407,890.26 $ 1,169,439.28

288,614.39

181,116.70

$ 2.696.504.65 $ 1.350.555.98

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

- 20-

MURRAY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 9: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. 'This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 10: ACCUMULATED EMPLOYEES' LEAVE

The Board's professional personnel earn one and one-quarter days of sick leave each month with a maximum accumulation of 60 days. Personnel who retire through the Teachers Retirement System or Public School Employees Retirement System are granted $10.00 per day for accumulated sick leave to a maximum of $750.00. See Note 1 - Compensated Absences

Note 11: 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 fmancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1998 1997 1996

100% 100% 100%

$ 2,263,147.76 $ 2,020,383.35 $ 1,849,026.82

- 21 -

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1998

EXHIBIT"G"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1998 JUNE 30, 1997

$ 816,851.14 $ 64,480.78 $ 46,753,36 $ 928,085,28 $ 692,998,04

12,598,00

75,600,00

88,198.00

118,310.23

85,744,37 19,130.25

85,744.37 19,130,25

52,552,08 20,629.95

$ 934,323.76 $ 64,480.78 $ 122,353.36 $ 1,121,157.90 $ 884,490.30

Total Liabilities and Fund Equity

$ 934,323.76 $ 64,480.78 $ 122,353,36 $ 1,121,157.90 $ 884,490,30

See notes to the general purpose financial statements.

- 22-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 3D. 1998

EXHIBIT"H"

See notes to the general purpose financial statements.

-23-

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1998

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

81,798.00 $ 5,836,283.95 $

1,131,310.59

213,786.40

Total Assets

$

81,798.00 $ 5,836,283.95 $======10!:::,34=5=,=09=6..9..=9

LIABILITIES AND FUND EQUITY
LIABILITIES
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 Equ, ity

$

279,n5.67

322,293.27

$ _ _..;:6;.:;02;:.r".;:;,;06;.;:;8,;.;:;.94.;.

$

$ _ _...;;8~1,.-,;79;;.;;.8=.0.-0

$

81,798.00 $

5,836,283.95

$

743,028.05

0.00

0.00

5,836,283.95 $ _ _"""7"""43",,,,,0=2=8-..0.-5

$

81,798.00 $ 5,836,283.95 $======10!:::,34=5=,O=96==.9=9

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

EXHIBIT "I"

LOTTERY PROJECT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 1998 JUNE 30, 1997

$

41,116.00 $

27,288.04 $ 7,117,796.58 $ 9,891,044.84

213,786.40

8,306.17

$

41,116.00 $

27,288.04 $ 7,331,582.98 $ 9,899,351.01

$

279,n5.67

322,293.27 $ _........:2=34;..:J,=83=8.:..:,.4=.,9

$

602,068.94 $_........:2=34;..:J,=83=8.:..:,.4.;;..9

$ 5,836,283.95 $ 8,596,715.44

$

27,288.04

27,288.04

$

41,116.00

784,144.05

985,999.08

0.00

0.00

81,798.00

81,798.00

$

41,116.00 $

27,288.04 $ 6,729,514.04 $ 9,664,512.52

$

41,116.00 $

27,288.04 $ 7,331,582.98 $ 9,899,351.01

- 25-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 1998

FUND BALANCE JUNE 30

$

81.798,00 $ 5,836,283,95 $ .............7..4..3."",0.2=.8,;,;;0-.5

See notes to the general purpose financial statements,

-26 -

EXHIBIT"J"

LOTTERY PROJECT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30,1998

JUNE 30,1997

$

659,688.83

_____ $

$

659,688.83 $

$ .;:;;.0=:0.-0

3.882,132.85 $ 414.817.20

""'O.~OO_ $ . 4,296.950.05 $

1.825,087.14 158.269.55
1.983.356.69

$ 1,091,456.28 $
$ 1,091,456.28 $ $ -431,767.45 $

$

2.882.69 $

142,190.65

n.257.53 175,585.05

62,894.00 6,982,632.00
183,539.84

4,314,055.99

252.842.58 $ 7.231,948.53 $ 4,456.246.64

-252,842.58 $ -2,934,998.48 $ -2,472,889.95

$

454,313.45 $

$

454,313.45 $

280,130.62 $ 280,130.62 $

$
3,172.366.00 -3,172,366.00

11.630,000.00 52,946.00
-2.973.641.00 184.197.47 -168,197.47

0.00 $ 8,725,305.00

$

22.546.00 $

27,288.04 $ -2,934.998.48 $ 6,252,415.05

18,570.00

0.00

9,664,512.52

3,412,097.47

$

41.116.00 $

27,288.04 $ 6,729,514.04 $ 9,664,512.52

- 27-

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 1998

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 1998

JUNE 30, 1997

$

123,654.50 $

769,969.67 $

893,624.17 $

121,435.61

3,098.01

394,399.61

397.497.62

24,266.43

Total Assets
.. FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$

126,752.51 $ 1,164,369.28 $ 1,291,121.79 $ ====1..4.=5=,7,;:;02_.0..4.i=:

$

126,752.51 $ 1,164,369.28 $ 1,291,121.79 $

145,702.04

0.00

0.00

0.00

Total Fund Equity

$

126,752.51 $ 1,164,369.28 $ 1,291,121.79 $ =-==1==4:.=5'!oOo7.0.2.='0;;,o4...

See notes to the general purpose financial statements.

- 28-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1998

EXHIBIT"L"

FUND BALANCE JUNE 30

$ 126.752,51 $ 1.164.369,28 $ 1.291,121,79 $. 145:702,04

See notes to the general purpose financial statements.

- 29-

ASSETS Cash and Cash Equivalents AC(X)unts Receivable .
Total Assets

MURRAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1998

EXHIBIT "M"

NONEXPENDABLE TRUST FUND FREDL.AND
MINNIE B. DUNN TRUST FUND

AGENCY FUNDS

TOTALS

JUNE 30.1998

JUNE 30.1997

$

39,080.70 $

6,196.97 $

45,2n.67 $

42,610.84

1.193.20

1.193.20

1.193.20

$

6J96,97 $

46.470,87 $

4..3.8.04"';,;;;0.4..

Total Liabilities and Fund Equity

$

40.273,90 $

6.196,97 $

46:470,87 $

4~3~.8;;;;:04_,;;;:;04_

See notes to the general purpose financial statements,

- 30-

MURRAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30,1998

EXHIBIT"N"

COUNSELORS' WORKSHOP ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JULY 1,1997

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 1998

$

243.75 $

548.00 $

669,83 $

1;,;;2.1,.9m2

$

243.75 $

548,00 $

669,83 $

1;,;;;2.1.;;0;92;;;.

STAFF DEVELOPMENT FUND
ASSETS Cash and Cash Equivalents

$

3,469,00 $

5,128,00 $

4,136.11 $ =_====",4,!oo:46;;,;;0=,8==9

LIABILITIES Funds Held for Others

$

3,469,00 $

5,128,00 $

4,136,11 $......=--=4..,.4,;,;;6=0,;,;;.8.9

SOCIAL WORKERS' FUND
ASSETS Cash and Cash Equivalents

$

1,203,61 $

1,425.00 $

1,014.45 $======1"",,6=1.4....1..6=

LIABILITIES Funds Held for Others

$

1,203,61 $

1,425,00 $

1,014.45 $ ...._ ....1. .,6..1..4...1..6...

TOTALS - AGENCY FUNDS
ASSETS Cash and Cash Equivalents

$

4,916.36 $

7,101.00 $

5,820.39 $ _ _.....6. .,1.9.6.=9.7..

. LIABILITIES Funds Held for Others

$

4,916,36 $

7,101,00 $

5,820,39 $ =_=-6i.!::,1=9.6..9.7. .=

See notes to the general purpose financial statements.

- 31 -

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U, S. Department of Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) Pass-Through From Office of Schoof Readiness Food and Nutrition Program Child and Adult Care Food Program 1998 Contract

10.665
10.553
10.555
10,550
10.558

NlA $

18,035.04

(5)

NlA

247,708,96

(2)

N/A

n9,989.64 $

1,980,247.99 (3)

N/A

150,515.73

150,515.73

N/A

2,103,38

(2)

Total U, S. Department of Agriculture

$ 1,198,352,75 $ 2,130,763,72

Education, U, S, Department of Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants To Local Educational Agencies 1998 Grant Title II Eisenhower Professional Development 1997 Grant 1998 Grant Title VI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1997 Grant 1998 Grant Individuals with Disabilities Education Act Part - B Special Education Flow Through 1998 Grant Preschool 1998 Grant Safe and Drug-Free Schools 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant

84.010
84,281 84.281
84.298

NlA $ 428,876.48 $

NlA

NlA

19,808,00

NlA

44,245,00

428,876.48
1,305.33 19,808.00
44,245.00

24.276

NlA

24.276

NlA

61,500.00

5,025,79 61,500.00

84.027

NlA

84.173

NlA

84.186

N/A

234,873.26 23,638.71 31,576.45

234,873.26 23,638.71 31,576,45

84.048

NlA

84,243

NlA

58,479.00

(4)

29,000.00

(4)

Total U. S, Department of Education

$ 931,996,90 $

850,849,02

-32-

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Labor, U. S. Department of Pass-Through From North Georgia Private IndUStry Council , Job Training Partnership Act Contract No. 01-96-20-013
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

17.250

NlA $

10,526.06 $

10,526.06

$

28,549.05

(4)

Total Federal Financial Assistance

$ 2,169,424.76 $ 2,992,138,80

N/A = Not Available

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 fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1998 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds, Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source, (5) Funds earned on this program do not require reporting of expenditures.

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 Murray County Board of Education and is presented on the modified accrual ~asis of accounting which is the same basis of accounting used in the presentation of the financial statements for the govemmental funds.

See notes to the general purpose financial statements.

- 33-

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1998

SCHEDULE "2-

AGENCYIFUNDING

GRANTS Community Affairs, Georgia Department of Local Assistance Grant

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

Limited English Speaking

Middle School Incentive Program

Special Instructional Assistance

In-School Suspension

Mid-term Adjustment

Migrant Mid-term Adjustment

Counselors Grades 4 and 5

Technology Training

Local Fair Share

Educational Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

Ad Valorem Tax Adjustment

Apprenticeship Program

At-Risk Summer School Program

Environmental Science Program

Health Insurance

Mentor Teacher Program

Preschool Handicapped Program

Remedial Summer School Program

Severely Emotionally Disturbed

Lottery Programs

Exceptional Growth-Capital Outlay

Instructional Technology

Asslstive Technology

Classroom Technology

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

Office of School Readiness Pre-Kindergarten Program

Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

2,500,00

$

2,500,00

12,210,055,00 2,095,709,00
647,640.00 521,665,00 162,922,00 3,376,733,00
582,543,00 186,838,00 12,531,00 460,211,00 802,477.00 120,809,00
35,668,00 2,217.00
48,213,00 28,842.00 -2,262,735,00 1,221,684,00
$ 73,585.00
135,981.00 .50,000.00 22,447,00
500.00 512,130.05
9,024,00 69,635,00
6,296.12 11,230,50

149,726,00
$ 9,301,00 165,927.00

659,688.83

12,210,055.00 2,095,709.00 647,640.00 521,665,00 162,922.00 3,376,733,00
582,543.00 186,838.00 12,531.00 460,211.00 802,477.00 120,809.00 35,668.00
2,217.00 48,213,00 28,842,00 -2,262,735.00 1,221,684.00 149,726.00 73,585,00
135,981.00 50,000.00 22,447.00
500,00 512,130.05
9,024.00 69,635.00
6,296,12 11,230,50
659,688.83
9,301.00 165,927.00

73,667.00

478,738,99

3,222,444.02

3,222,444,02 478,738.99 73,667.00

Seehotes to the general purpose financial statements.

$ 21,221,017,67 $

803,692,99 $ 3,882,132.85 $ 25,906,843.51

- 34-

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 1998

SCHEDULE "3"

$

13,600,000.00 $

19,232,849.00 $

6,647,906.77 $

3,:;;;82;;,;1.,5..3.3_.0-..7

(1) The Board's original cost estimate as specified in the resolution calling for imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion.
(3) The voters of Murray County approved the imposition of a 1% sales tax to fund the above projects.
Amounts expended for these projects may include sales tax proceeds, state. local property taxes and/or other funds over the life of the project.

See notes to the general purpose financial statements.

- 35-

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1998

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional services General Administration Food Services Operation

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PRE-KINDERGARTEN PROGRAM

TOTAL

$

9.301.00 $

165.927.00 $

404.209.21 $
58.086.14 2.718.73 4.373.90 9.351.01

579.437.21
58.086,14 2.718.73 4.373.90 9.351.01

Total Expenditures

$

9.301.00 $

165.927,00 $

478.738.99 $ _......6.5..-3.9.6.6--..9.9.

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program

$

333.550.25

9.301.00 165.927.00 145.188.74

$

653,966.99

see notes to the general purpose financial statements.

-36-

MURRAY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1998

SCHEDULE "5"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$ 15,487,683,00 $

447,384.00

$ 17,168,209.73 947,685.83 $
$ 18,115,895.56

806,989.22

-304,791.96 $ 17,811,103.60

$

0.00 $=====0=:.0=0

See notes to the general purpose financial statements. - 37 -

MURRAY COUNTY BOARD OF EDUCATION ANALYSISOF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAl FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1998

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 I (*) Category II (*) CategOlY III (*) 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
Total Fourteen Weighted and Media center Programs

ALLOTMENTS FROM DEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ 1,451,849.00 3,644,747,00
$ 5,096,596.00 1,438,393.00 2,743,592.00 1,651,793.00 531,321.00 748,360.00
$ 12,210,055.00

$ 1,306,664.10

3,280,272.30 $

90 $ 4,586,936.40 $

90

1,294,553.70

90

2,469,232,80

90

1,486,613.70

90

478,188.90

90

673,524,00

$ 10,989,049.50 $

7,257.00 7,257.00
7,257.00

$ 1,889,803.00

$ 1,700,822.70 $

0.00

$ 1,889,803,00

205,906.00

$ 2,095,709.00

$

647,640.00

$ 14,953,404.00

90 $ 1,700,822.70 $

90

185,315.40

$ 1,886,138.10 $

90 $

582,876.00 $

$ 13,458,063.60 $

0.00
0.00 0.00 7,257.00

$

423,383.00 90 $

381,044.70 $

98,282.00 90

88,453.80

$

521,665.00

$

469,498.50 $

5,357.00 5,357.00

$ 15,475,069.00

$ 13,927,562.10 $

. 12,614.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements.

$

47,270.00

115,652.00

.S

47,270.00 '$

115,652.00

$

162,922.00 100 $

162,922.00 $

0.00 . .0..0.0.;0"

- 38 -

SCHEDULE "6"

TOTAL. REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF , UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,306,664.10 $ 1,685,582.71 $

39,264.32 $ 1,724,847.03

3,287,529.30

3,958,983.86

198,757.12

4,157,740.98

$ 4,594,193.40 $ 5,644,566.57 $

238,021.44 $ 5,882,588.01 $

0.00

1,294,553.70

1,934,576.44

86,896.62

2,021,473.06

0.00

2,469,232.80

2,931,519.30

164,914.71

3,096,434.01

0.00

1,486,613.70

1,674,622.84

59,248.68

1,733,871.52

0.00

478,188.90

724,653.40

20,696.73

745,350.13

0.00

673,524.00

686,598.70

146,319.21

832,917.91

0.00

$ 10,996,306.50 $ 13,596,537.25 $

716,097.39 $ 14,312,634.64

$ 1,700,822.70 $

132,264.44 $ 617,989.08 1,117,808.54 232,505.08

44,134.92 $ 11,366.86 18,993.55 2,847.20

176,399.36 629,355.94 1,136,802.09 235,352.28

$ 1,700,822.70 $ 2,100,567.14 $

n,342.53 $ 2,1n,909.67

0.00

185,315.40

187,737.63

4,582.22

192,319.85

0.00

$ 1,886,138.10 $ 2,288,304.n $

81,924.75 $ 2,370,229.52

$

582,876.00 $

592,250.36 $

8,967.08 $

601,217.44

0.00

$ 13,465,320.60 $ 16,4n,092.38 $

806,989.22 $ 17,284,081.60

$

386,401.70 $

691,117.35

$

691,117.35

0.00

88,453.80

$

140,696.61

140,696.61

0.00

$

474,855.50 $

691,117.35 $

140,696.61 $

831,813.96

$ 13,940,176.10 $ 17,168,209.73 $

947,685.83 $ 18,115,895.56 $

0.00

$

47,270.00

115,652.00

$ _ ....1;,:62;;;;,.9.2. .2..0...0...

$

101,423.01 $

101,423.01

75,740.56

75,740.56

$

1n,163.57 .$

1n,163.57 $

00..0.

- 39 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 18, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members of the Murray County Board ofEducation

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 ofMurray County Board of Education as of and for the year ended

June 30, 1998, and have issued our report thereon dated March 18, 1999. 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 Murray County Board of Education's financial statements are free ofmaterial misstatement, we perfonned 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 detennination 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 of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.

Internal Control Over Financial Reporting

In planning and performing our audit, we considered Murray County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over fmancial reporting and its

98YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgement, could adversely affect Murray 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-7051-98-0 I.
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 ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~..,4!o.,:r:~
Claude L. Vickers State Auditor
CLV:gp 98YB-40

CLAUDE L. VICKERS
STATE AUDlroR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 18, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Murray County Board of-Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CQNTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Murray County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Murray 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, con~acts and grants applicable to each of its major Federal programs is the responsibility of Murray County Board of Education's management. Our responsibility is to express an opinion on Murray County Board ofEducation's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A-133,Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Murray 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 Murray County Board of Education's compliance with those requirements.

98SA-1O

In our opinion, the Murray 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, 1998.
Internal Control Over Compliance
The management of Murray County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Murray County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
a~.;r:~uJ
Claude L. Vickers State Auditor
CLV:gp 98SA-1O

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

MURRAY COUNTY BOARD OF EDUCATION . AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

7051-93-03 FS-7051-97-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7051-97-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the fmancial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

MURRAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998

I SUMMARY OF AUDITOR'S RESULTS

I. Type ofReport Issued on the Financial Statements The auditor's opinion on the Murray 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 Murray 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 Murray County Board of Education disclosed no instances of noncompliance that were deemed to be material to the fmancial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Murray County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Murray 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 .510Ca) ofOMB Circular A-133 The Murray County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

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

9. Low Risk Auditee

.

The Murray County Board of Education was audited as a low risk auditee based on a waiver granted

by the U. S. Department of Education.

-I -

MrurnRAYCOUNTYBOARDOFEDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
IT . 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-7051-98-01 The Murray County Board ofEducation did not maintain a system-wide General Fixed Assets Account Grotip within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
-2-