Audit report, Oconee County Board of Education, Watkinsville, Georgia, year ended June 30, 1999

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AUDIT REPORT OCONEECOUNTYBOARDOFEDUCATION
WATKINSVILLE, GEORGIA YEAR ENDED JUNE 30, 1999

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

OCONEE COUNTY BOARD OF EDUCATION
- TABLE OF CONfENTS -

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

6

D NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDffiONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18 19 20 . 21 22 23

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

OCONEE COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

4 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

28

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

29

6

BYPROGRAM

30

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 O:MB CIRCULAR A-133

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

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

SECTION! FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 22, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Oconee County Board ofEducation
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 Oconee County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Oconee County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, 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 ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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:

99ARL-13

* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting 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, 1999, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, 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, 1998, were improperly recorded in the year ended June 30, 1999. 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 ofthese variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, ifany, on the Special Revenue Fund, as might have
be been determined to necessacy had we been able to satisfy ourselves as to the accuracy of the food service
inventories as discussed in the third paragraph, and 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 Oconee County Board ofEducation as ofJune 30, 1999, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditin.1' Standards. we have also issued our report dated May 22, 2000, on
our consideration ofthe Oconee County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants.
Our audit was performed for the purpose offorming an opinion on the general purpose financial statements of the Oconee County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) 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 ofStates, Local Governments, and Non-Pro.fit Organizations, are presented for purposes ofadditional
analysis and are not a required part of the 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessacy had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

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 of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~--< ~-~ ~11 W. Hinton State Auditor
RWH:gp 99ARL-13

OCONEE COUNTY BOARD OF EDUCATION

OCONEE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1999

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Due from Other Funds
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

$ 2,384,015.21 $ 161,346.36 $ 1,215,502.05

1,005, 152.00

500,000.00

249,135.40

50,211.74

435,991.45

28,596.30 20,936.15

Total Assets

$ 3,638,302.61 $ 261.090.55 $ 2.151.493.50

LIABILITIES AND F!,!ND EQ!,!ITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Contracts Payable Due to Other Funds Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Deficit Undesignated
Total Fund Equity

$

23,120.39

97,028.99

$ 120,149.38

$

2,501.70

28,596.30 20,936.15
$

1,878,215.81

$ 316381302.61 $ 31638,302.61 $

881907.02 140,941.17 $

27312TT.69 21151 A93.5o

Total Liabilities and Fund Equity

$ 3.638,302.61 $

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

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261.090.55 $ 2.151 ,493.50

EXHIBIT"A9

DEBT SERVICE
FUND

$

12,952.30

350,000.00

43,361.20

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

{Memorandum Only}

JUNE 301 1999

JUNE 301 1998

$ 3,773,815.92 $ 1,639,596.02

1,855, 152.00

2,529,902.40

778,699.79

855,452.10

43,236.06

$

406,313.50

28,596.30 20,936.15
406,313.50

30,816.40 12,973.84
336,269.42

19,598,686.50 31,328.92

19,598,686,50 31,328.92

20,463,730.58 238,183.09

$

4061313.50 $ 2010361328.92 $ 2614931529.08 $ 2611501159.91

$

24,411.75

$

23,120.39

20,298.89

97,028.99

90,443.73

50,000.00

43,236.06

$

31,328.92

31,328.92

238,183.09

20,005,000.00

20,005,000.00

20,800,000.00

$ 20,036,328.92 $ 20,156.478.30 $ 21,266,573.52

$

406,313.50

0.00

$

406,313.50

$

2,501.70 $

16,839.57

406,313.50

336,269.42

28,596.30 20,936.15
1,878,215.81

30,816.40 12,973.84 42,805.38 1,029,715.21

4,000.487.32

-6,430.72 3.420.597.29

$ 6,337,050.78 $ 4,883.586.39

$

406:313.50 $ 2010361328.92 $ 26A931529.o8 $ 26,1501159.91

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OCONEE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30.1999

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrudion Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCIN~ 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

GENERAL FUND

SPECIAL REVENUE.
FUND

$ 18,057,160.78 $ 63.73
8,449,765.79 273,262.58
$ 26,780,252.88 $

207,428.36 1,249,754.04
670,511.16
2,127,693.56

$ 17,272,199.40 $
1,086,296.74 693,889.37 655,648.14 469,144.51
2,022,599.69 99,906.38
2,230,259.22 1,062, 175.36
17,512.50
126,252.69 111,868.10
206,854.17 13,378.00

640,148.43
29,383.10 81,538.98
526.32 18,758.13
171.53
1,332.98
117,712.61 1,157,121.61

$ 26,067,984.27 $

$

712.268.61 $

2,046,693.69 80,999.87

$

-4001n4.34

$ -400,n4.34

$

311,494.27 $

3,326,808.34

80,999.87 54,199.09
-2,220.10 7,962.31

FUND BALANCE JUNE 30

$ 316381302.61 $

140,941.17

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

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 1999

JUNE 30, 1998

$ 18,264,589.14 $ 16,602,632.05

1,249,817.77

1,047,138.17

$ 2,117,157.02 $ 1,834,193.66

12,401,116.47

10,131,714.12

50,953.17

30,753.80

11025,480.71

929,449.62

$ 2,168,110.19 $ 11864,947.46 $ 32,941,004.09 $ 28z710,933.96

$ 17,912,347.83 $ 15,710,789.89

$ 1,583,700.57

1,115,679.84 775,428.35 656,174.46 487,902.64
2,022,771.22 99,906.38
2,230,259.22 1,063,508.34
17,512.50 117,712.61 1,283,374.30 1,695,568.67

966,693.67 713,651.59 604,350.63 450,342.45 1,776,706.16
97,498.50 2,139,313.09 1,065,292.75
16,380.00 118,115.65 1,252,721.66 2,020,501.42

$

795,000.00

993,573.75

6.329.63

1,001,854.17 1,006,951.75
61329.63

872,814.76 1,062,978.13
5,804.77

$ 115831100.51 $ 1.194,903.38 $ 311493.281.91 $ 281873.955.12

$

584.409.62 $

70,044.08 $ 11447z722.18 $ -1631021.16

$

400,774.34

$

400z774.34

$

985,183.96 $

1,166,309.54

$

400,774.34 $

-400,774.34

$

0.00 $

8,602.95 -81602.95
0.00

70,044.08 $ 336,269.42

1,447,722.18 $ 4,883,586.39

-163,021.16 5,036,746.29

-2,220.10 7,962.31

3,863.69 51997.57

$ 21151,493.50 $

4061313.50 $ 6,337,050.78 $ 4,883,586.39

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OCONEE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 1999

EXHIBITc

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures and Other Financing Uses
FUND BALANQ~ JULY l, 1!!~
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30. 1999

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 17,257,132.00 $ 18,057,160.78

63.73

8,308,665.00 8,449,765.79

165,000.00

273,262.58

$ 25,730,797.00 $ 26,780,252.88

s 11,204,9n.oo $ 17,272,199.40

1,113,510.00
822,222.00
681,1n.oo 410,738.00
1,913,598.00 102,911.00
2,230,810.00
1,308,000.00 16,712.00

1,086,296.74 693,889.37 655,648.14 469,144.51
2,022,599.69 99,906.38
2,230,259.22
1,062,175.36 17,512.50

119,973.00 385,000.00

126,252.69 111,868.10 220,232.17

$ 26,309,628.00 $ 26,067,984.27

$ -578,831.00 $ 712,268.61

-400,n4.34

$ -578,831.00 $ 311,494.27

3,055,443.86

3,326,808.34

$ 2,476,612.86 $ 3,638,302.61

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 195,978.00 $ 207,428.36 810,261.00 1,249,754.04

600,189.00

670,511.16

$ 1,606,428.00 $ 2,127,693.56

$ 294,869.00 $ 640,148.43

26,998.00 29,765.00 5,367.00 23,062.00
2,392.00

29,383.10 81,538.98
526.32
18,758.13
171.53

1,332.98

113,786.00
1,110,189.00

117,712.61 1,157,121.61

$ 1,606,428.00 $ 2,046,693.69

$

0.00 $ 80,999.87

$

0.00 $

54,215.28

80,999.87
54,199.09

-2,220.10 7,962.31

$ 54,215.28 $ 140,941.17

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

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Oconee 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 financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances ofthese 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 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 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.
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 ofEducation and from the Federal government to accomplish specific educational objectives.
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OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is dete~ed 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 (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be :financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" 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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. 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, 1999, compensation under these employment
-8-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Oconee 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 ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper 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 final 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 ofdeposits in authorized financial 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.
INVESTMENTS
C0MPOSITT0N OF INVESTMENTS
Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to
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OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from 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 Oconee County Board ofCommissioners fixed the property tax levy for the 1998 tax year (calendar year) on September 1, 1998 (levy date). Taxes were due on November 15, 1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Oconee County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board.
Tax millage rates levied for the 1998 tax year (calendar year) for the Oconee County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value):
- 10-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

School Operations School Bonds

14.15 mills -2..4Qmills

16.55 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 revenue during the fiscal year amounted to $2,467,157.02 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $10,256,716.62 has been collected or on December 31, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). 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.

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 of interfund transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

-11-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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 bee;:n secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe 'amount ofdeposit insurance. 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 ofany one ofor any combination ofthe 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 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,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

-12-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $5,715,087.33. The amounts of the total bank balances are classified into three categories ofcredit 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.
Ca~egory 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, 1999, as follows:

Risk Category
1
2 3

Bank Balance
$ 562,985.41 5,152,101.92
0,00

Total

$ 5.715.087.33

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the fair value of the Board's total investments was $1,005,152.00 and this entire amount consisted ofU. S. Government Securities which was insured or registered, or securities held by the Board or the Board's agent in the Board's name.

Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

- 13 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

mNE 30, 1999

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 of the past three years.

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

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Oconee County Board of Education has not incurred any liabilities for unemployment compensation during the past two fiscal years.

The Board participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered

Amount

Superintendent All Other Employees

$ 100,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Oconee County Board ofEducation has entered into various lease agreements as lessee for school buses and 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.

-14-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1995 General Government- Refunding- Series 1993-A General Government-Refunding- Series 1993-B

4.25%- 5.25% 3.00% - 5.00% 3.00%-4.10%

$ 9,385,000.00 9,145,000.00 1,475,000.00

$20.005.000.00

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 1999, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1998

$ 238,183.09 $20,800,000.00 $21,038,183.09

Deductions Debt Retired Payments

206,854.17

795,000.00

795,000.00 206,854.17

Balance June 30, 1999

$ 31,328,92 $20.005.000.00 $20,036,328.92

At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2000 2001 2002 2003 2004 2005 -2009 2010-2014
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value ofFuture Minimum Lease Payments

Capital Leases

General Obligation
Bonds

Total Debt

$ 25,382.06 $ 1,344,783.75 $ 1,370,165.81 10,100.52 1,840,117.50 1,850,218.02 1,852,975.00 1,852,975.00 1,872,850.00 1,872,850.00 1,894,662.50 1,894,662.50 9,783,752.50 9,783,752.50
10.081,510.00 10,081,510.00

$ 35,482.58 $28.670,651.25 $2817061133.83

4,153.66

$ 31,328.92

- 15 -

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 6: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of$412,168.50 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.
Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$315,794.40
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$15,982.10
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 $80,392.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the 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 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees 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 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:
-16-

OCONEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 8: RETIREMENT PLANS
Fiscal Year
1999 1998 1997

Percentage Contributed
100% 100% 100%

Required Contribution
$2,038,657.21 $1,775,159.30 $ 1,602,326.41

-17 -

OCONEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1999

EXHIBIT"E"

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL

TOTALS

PROGRAMS JUNE 30, 1999 JUNE 30, 1998

$ 148,313.18 $

0.00 $ 13,033.18 $ 161,346.36

6,407.90

43,803.84

50,211.74 $ 188,799.28

28,596.30 20,936.15

28,596.30 20,936.15

30,816.40 12,973.84

Total Assets .

----- $ 204,253.53 $

0.00 $ 56,837.02 $ 261,090.55 $ 232,589.52

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Due to Other Funds
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation o~ Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Deficit Undesignated
Total Fund Equity

$ $ 13,274.89
52,539.17
$ 65,814.06 $
$ 28,596.30
20,936.15
88,907.02 $ $ 138,439.47 $

0.00 $

9,845.50 $
44,489.82

0.00 $ 54,335.32 $

$ 23,120.39 97,028.99
120,149.38 $

24,411.75
20,298.89 90,443.73
43,236.06
178,390.43

$ 2,501.70 $

2,501.70 $ 16,839.57

28,596.30 20,936.15

0.00 0.00 $

0.00 2,501.70 $

88,907.02 140,941.17 $

30,816.40
12,973.84
-6,430.72 0.00
54,199.09

Total Liabilities and Fund Equity

s s___ s s 204,253.53

o_.o_o_ $ 56,831.02

2a1,oeo.ss

232,sse.s2

See notes to the general purpose financial statements.

-18-

OCONEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1999

EXHIBIT "F"

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

REVENUES

State Funds. Federal Funds Other Funds

$ 103,654.00 $ 103,774.36

$ 207,428.36 $ 240,428.00

478,294.19

$ 771,459.85 1,249,754.04 1,047,020.87

670,511.16

670,511.16

601,100.75

Total Revenues

$ 1,252,459.35 $ 103,774.36 $ 771,459.85 $ 2,127,693.56 $ 1,888,549.62

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educa1'onal Media Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 103,248.04 $ 536,900.39 $ 640,148.43 $ 547,865.72

$ 111571121.61

526.32

29,383.10 81,538.98
18,758.13 171.53
1,332.98 117,712.61

29,383.10 81,538.98
526.32 18,758.13
171.53 1,332.98 117,712.61 1,1571121.61

7,194.81 33,658.03
7,137.70 18,735.12
1,854.00 118,115.65 111581224.47

$ 1,157,121.61 $ 103,774.36 $ 785z797.72 $ 2,046,693.69 $ 11892,785.50

$ 95,337.74 $

0.00 $ -14,337.87 $ 80,999.87 $ -4,235.88

OTHER FINANCING SO!.!RCES

Operating Transfers In

8,602.95

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

95,337.74 $

0.00 $ -14,337.87 $ 80,999.87 $

4,367.07

FUND BALANCE JULY 1

37,359.52

0.00

16,839.57

54,199.09

39,970.76

Food Inventory - Net Change in Period Donated Commodities Purchased Food

-2,220.10 7,962.31

-2,220.10 7,962.31

3,863.69 5,997.57

F!.!ND BALANCE J!.!NE 30

$ 138,439.47 $

0.00 $ 2,501.70 $ 140,941.17 $ 54,199.09

See notes to the general purpose financial statements.

-19-

OCONEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 1999

EXHIBIT"G"

ASSETS Cash and cash Equivalents Investments Accounts Receivable

REGULAR

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 1999 JUNE 30, 1998

$ 213,2n.s9 $

0.00 $ 942,224.36 $ 1,215,502.05 $ 820,943.42

500,000.00

500,000.00

435,991.45

435,991.45

395,366.12

Total Assets

$ 21312n.s9 $ _ _ _o_.o_o_ $ 1.878121s.81 $ 2.1s1,493.so $ 1.215.309.54

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$_--=so=,o=o=o.=ooa...

$
$ 2132n.s9 s___o__.o__o__

$ 42,805.38

1,878,215.81 $ 1,878,215.81

1,029,715.21

0.00

2132n.s9

93,788.95

$ 27312n.s9 $ _ _ _o__.o__o__ $ 118781215.81 $ 21151,493.50 $ 1,166,309.54

Total Liabilities and Fund Equity

s s $ 213:;.n.se $ _ _ _0_._00_ 1 878.215.81 $ 2 151 493.50

1 215 309.54

1

11

11

See notes to the general purpose financial statements.

-20-

OCONEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"H"

REGULAR

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

REVENUES

Taxes Other Funds

$ 3,827.34 $

$ 2,117,157.02 $ 2,117,157.02 $ 1,026,126.36

391.58

46,734.25

50,953.17

52,452.14

Total Revenues

$ 3,827.34 $

391.58 $ 2,163,891.27 $ 2,168,110.19 $ 1,078,578.50

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$ 200,n4.34 $ 4,939.89 $

24,338.60

38,257.07

1,315,390.67 $ 1,521,104.90 $ 10,002.25

62,595.67

1,649,285.08

321,932.46

Total Expenditures

$ 225,112.94 $ 43,196.96 $ 1,315,390.67 $ 1,583,700.57 $ 1,981,219.79

Excess of Revenues over (under) Expenditures

$ -221~85.60 $ -42,805.38 $ 848,500.60 $ 584,409.62 $ -902,641.29

QTHER FINANCIN!;a SQURQES (USES}
Operating Transfers In Operating Transfers Out

$ 400,n4.34 $

o.oo $

0.00 $ 400,n4.34 $

93,788.95 -93,788.95

Total Other Financing Sources (Uses) $ 400,n4.34 $

0.00 $

0.00 $ 400,n4.34 $

0.00

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

$ 179,488.74 $ -42,805.38 $

848,500.60 $ 985,183.96 $ -902,641.29

FUND BALANCE JULY 1

93,788.95

42,805.38

1,029,715.21

1,166,309.54

2,068,950.83

FUND BALANQE JUN!; ~O

$ 21312n.69 $

0.00 $ 118781215.81 $ 211511493.50 $ 1I1661309.54

See notes to the general purpose financial statements.

-21-

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Debt Service
Unreserved Undesignated
Total Fund Equity

OCONEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 1999

EXHIBIT"!"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$

12,952.30 $

0.00 $

12,952.30 $

63,260.40

350,000.00

350,000.00

225,000.00

43,361.20

43,361.20

48,009.02

$

406,313.50 $

0.00 $

406,313.50 $ ===3=3.6.,.=2=69....4...2.....

$

406,313.50

$

406,313.50 $

336,269.42

0.00 $ ______0.=00,.__

0.00

0.00

$

406,313.50 $

0.00 $

406,313.50 $ _ _3_3__6.=-26=9....4.==2=

See notes to the general purpose financial statements.

-22-

OCONEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 1999

EXHIBIT"J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE J!JLY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 1999

JUNE 30, 1998

$ 1,484,193.66 $ 30,753.80
$ 1,514,947.46 $

350,000.00 $ 350,000.00 $

1,834,193.66 $ 30,753.80
1,864,947.46 $

1,630,089.18 31,050.18
1,661,139.36

$

685,000.00 $

753,573.75

6,329.63

$ 1,444,903.38 $

$

70,044.08 $

336,269.42

110,000.00 $ 240,000.00
350,000.00 $ 0.00 $ 0.00

795,000.00 $ 993,573.75
6,329.63
1,794,903.38 $
70,044.08 $
336,269.42

675,000.00 1,037,728.75
5,804.TT
1,718,533.52
-57,394.16
393,663.58

FUND BALANCE JUNE 30

$

406,313.50 $

0.00 $

s_ _ 4oe.313.5o

3_3_e_.2_s_9..,.42_

See notes to the general purpose financial statements.

-23-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant
Total Child Nutrition Cluster

10.553 10.555

N/A $ N/A
$

73,107.60 321,615.29 $ 394,722.89 $

(2) 1,073,550.31 (3) 1,073,550.31

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

NIA

Pass-Through From Office of Treasury and Fiscal Services

National Forest Reserve Funds

10.665

NIA

83,571.30 35.73

83,571.30 (4)

Total U. S. Department of Agriculture

$

478,329.92 $ 1,157,121.61

Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs 1998 Grant 1999 Grant

94.004 94.004

NIA NIA $

$ 8,746.96

7,041.25 8,746.96

Total Corporation for National and Community Service

$

8,746.96 $

15,788.21

Education, U. S. Department of

Special Education Cluster

Pass-Through From Georgia Department of Education

Individuals with Disabilities Education Act.



Part B - Special Education

capacity Building Improvement Grant

1999 Grant

Flow Through

1999 Grant

Preschool~

1999 Grant

Total Special Education Cluster

84.173
84.027 84.173

NIA $
NIA NIA
$

13,333.00 $
240,407.84 21,693.28 275,434.12 $

13,333.00
240,407.84 21,693.28 275,434.12

Other Programs Pass-Through From Georgia Department of Education Advance Placement Test Fee Payment Program
1999 Grant Elementary and Secondary Education Act.
Tille I Grants to Local Educational Agencies 1999 Grant
Tille II Eisenhower Professional Development
1998 Grant 1999 Grant

84.330

NIA

84.010

N/A

84.281

NIA

84.281

NIA

28.00 216,162.00
18,500.00

28.00
216,162.00 9,798.32 18,500.00

-24-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Education, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title Ill Technology Literacy Challenge Fund Grants 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant Goals2000 State and Local Education Systemic Improvement Grants 1999 Grant Safe and Drug-Free Schools 1999 Grant
Vocational Education - Basic Grants to States
High School Program Basic Grant 1999 Grant
Tech-Prep Education 1999 Grant
Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1998 Summer Grant 1999 Summer Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.318 84.298

N/A $ NIA

70,627.00 $ 20,307.00

68,125.30 20,307.00

84.276

NIA

84.186

NIA

75,000.00 23,465.44

75,000.00 23,465.44

84.048

NIA

84.243

NIA

24,TT1.00 30,000.00

24,n1.oo 30,000.00

84.011 84.011

4,751.57 31694.76

4,751.57 31694.76

$

762i740.89 $

noI031.s1

Total Federal Financial Assistance

$ 1,249,817.n $

NIA= Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Disbibution 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 1999 National School Lunch Program.
(3) Expenditures for this program include State, and or Other Funds (4) Funds earned on this program do not require reporting of expenditures.
r> Major Programs are Identified by an asterisk in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipienl

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Oconee County Board of Education and is presented on the modified acaual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

1,942,947.33

See notes to the general purpose financial statements.

-25-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Education Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Program.s Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Record Teachers' Retirement Tuition for the Multi-Handicapped Lottery Programs Assistive Technology Computers in the Classroom
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Leadership Development Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 11,141,923.00 1,809,998.00 232,975.00 466,540.00 122,697.00 2,911,750.00
562,253.00 141,801.00 56,431.00 421,708.00 201,288.00 138,074.00 712,452.00
511.00 46,461.00 57,685.00 -2,445, 110.00 870,684.00
$
2,080.00
69,200.00 35,000.00
9,350.02 315,794.40
8,262.00 45,964.00
3,504.76 3,603.00 15,982.10 11,022.50

$ 11,141,923.00 1,809,998.00 232,975.00 466,540.00 122,697.00 2,911,750.00

103,654.00

562,253.00 141,801.00 56,431.00 421,708.00 201,288.00 138,074.00 712,452.00
511.00 46,461.00 57,685.00 -2,445, 110.00 870,684.00 103,654.00
2,080.00

69,200.00 35,000.00
9,350.02 315,794.40
8,262.00 45,964.00
3,504.76 3,603.00 15,982.10 11,022.50

7,797.36 95,977.00

7,797.36 95,977.00

80,392.00

80,392.00

6,885.00

6,885.00

$ 18,057,160.78 $

207,428.36 $ 18,264,589.14

See notes to the general purpose financial statements.

-26-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 1999

SCHEDULE "3"

PROJECT
For the retirement of a portion of the School District's previously issued Series 1993A general obligation bond debtforthe years 1999, 2000, 2001, 2002 and 2003, in the amount of $1,000,000.00, representing a portion of the principal and interest due thereon during such years
For the payment of the costs of acquiring real property as a site for a new high school and creating a project fund in which to escrow moneys to be used to pay a portion of the costs of acquiring, constructing and equipping a new high school in the School District and to the extent there are sufficient funds available, to provide for the costs of adding to, modifying, renovating, repairing, improving and equipping existing educational buildings and facilities

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 1,000,000.00 $ 1,000,000.00 $ 350,000.00 $

0.00

1217501000.00 12,750,000.00

1,3151390.67

0.00

$ 13,750,000.00 $ 13,750,000.00 $ 1,665,390.67 $

0.00

(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 Oconee County approved the imposition of a 1% sales taxto 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 projects.

See notes to the general purpose financial statements.

-27-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1999

SCHEDULE "4"

EXPENDITURES
Current Instruction Support Services Improvement of Instructional Services

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

TOTAL

$

7,797.36 $

95,450.68 $

103,248.04

526.32

526.32

Total Expenditures

$

7,797.36 $

95,977.00 $ ===1=0=3,=77=4=.3=6

See notes to the general purpose financial statements.

-28-

OCONEE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

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 OPERATIOt-JS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

14,363,888.00 $

409,978.00

$

15,813,500.15

829,542.56 $ _ _.....;7...;.1=2.;;;.;06=2=.1~4

$

16,643,042.71

-179,376.52 $ _ __:1~6.i..;,4.::.;63~,6;;.;:6;,.;::.6~.1~9

$

o.oo $ =======o=.o=o

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

OCONEE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1999

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 r) category Ill (*) category IV (*)
category v r>
Sub-Total - Regular
r) Category VI (Gifted)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM Cl Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ 1,057,050.00

$

951,345.00

3,023,498.00

2,721,148.20 $

$ 4,080,548.00 90 $ 3,672,493.20 $

1,384,236.00 90

1,245,812.40

2,524,495.00 90

2,272,045.50

1,500,941.00 90

1,350,846.90

954,954.00 90

859,458.60

696,749.00 90

627,074.10

$ 111141,923.00

$ 10,027z730.70 $

500,000.00 500,000.00 106,226.00 106,226.00
712,452.00

$ 1,265,390.00

$ 1,138,851.00 $

0.00

$ 1,265,390.00 90 $ 1,138,851.00 $

544,608.00 90

490,147.20

$ 1,809,998.00

$ 1,628,998.20 $

$

232,975.00 90 $

209,6TT.50 $

$ 131184,896.00

$ 111866,406.40 $

0.00
0.00 0.00 7121452.00

$

373,368.00 90 $

336,031.20 $

0.00

93,172.00 100

93,172.00

$

466,540.00

$

429,203.20 $

0.00

$ 13,651,436.00

$ 12,295,609.60 $

712,452.00

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

$

38,729.00

$

38,729.00 $

0.00

83,968.00

83,968.00

0.00

$

122,697.00 100 $

s_ _ _ _ _ 122.ss1.oo

o..o...o..

- 30 -

SCHEDULE 5

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNTOF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

951,345.00 $ 1,199,885.48 $

41,854.31 $ 1,241,739.79

3,221,148.20

3,670,603.35

126,990.57

3,797,593.92

$ 4,172,493.20 $ 4,870,488.83 $

168,844.88 $ 5,039,333.71 $

0.00

1,352,038.40

1,825,937.36

75,317.62

1,901,254.98

0.00

2,378,271.50

2,852,505.n

109,318.05

2,961,823.82

0.00

1,350,846.90

1,673,032.54

106,494.06

1,TT9,526.60

0.00

859,458.60

1,142,001.51

124,924.74

1,266,926.25

0.00

627,074.10

sn,419.29

751102.95

652,522.24

0.00

$ 10,740,182.70 $ 12,941,385.30 $

660,002.30 .$ 13,601.387.60

$ 1,138,851.00 $

421.14 $ 242,427.15 1,158,426.20 13,996.60
17,TT4.73

3,037.42 $ 17,303.76 18,513.74 2,470.23

3,458.56 259,730.91 1,176,939.94
16,466.83 17,TT4.73

$ 1,138,851.00 $ 1,433,045.82 $

41,325.15 $ 1,474,370.97

0.00

490,147.20

607,865.42

8,044.94

615,910.36

0.00

$ 1,628,998.20 $ 2,040,911.24 $

49,370.09 $ 2,090,281.33

$

209,6TT.50 $

302,767.51 $

2,689.75 $

3051457.26

0.00

$ 12,578,858.40 $ 1512851064.05 $

712.062.14 $ 151997.126.19

$

336,031.20 $

528,436.10

$

'528,436.10

0.00

93,172.00

$

117,480.42

117,480.42

0.00

$

429,203.20 $

528,436.10 $

1171480.42 $

6451916.52

$ 13,008,061.60 $ 15,813,500.15 $

829,542.56 $ 16,643,042.71 $

0.00

$

38,729.00

83,968.00

s _ _,1..,226,_9,..1.,..oo_

$

83,560.47 $

83,560.47

42,618.32

42,618.32

$

126,178.79 $

126,178.79 s_______o_.oo_

- 31

SECTION II COMPLIANCE AND INTERNAL CON1ROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254'Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 22, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Oconee 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 of Oconee County Board ofEducation as of and for the year ended June 30, 1999, and have issued our report thereon dated May 22, 2000. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Oconee County Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination 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.

99YB-40

Internal Control Over Financial R~orting
fu planning and performing our audit, we considered Oconee County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Oconee 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-7081-99-01.
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 ofperforming their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe Oconee 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:gp 99YB-40

sell W. Hinton State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 22, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Oconee County Board of Education
REPORT ON COMPLIANCE WITH REQIDREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVERCOMPLIANCEJNACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Oconee 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 of its major Federal programs for the year ended June 30, 1999. Oconee County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Oconee County Board of Education's management. Our responsibility is to express an opinion on Oconee 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 of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Oconee 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 Oconee County Board of Education's compliance with those requirements.

99SA-10

In our opinion, the Oconee 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, 1999.
Internal Control Over Compliance
The management of Oconee 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 Oconee County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over 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 repprt is intended solely for the information and use ofmanagement, members ofthe Oconee 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:gp 99SA-10

State Auditor

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

OCONEE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7081-97-01 FS-7081-98-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7081-98-01

The Board of Education acknowledges this finding and intends to make progress in this area as personnel and financial resources permit. Inventories are maintained and increased each year and the school district intends to ultimately resolve this finding.

SECTIONIV FINDINGS AND QUESTIONED COSTS

OCONEE COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999
I SUMMARY OF AUDITOR'S RESULTS
1. Tn,e ofRe.port Issued on the Financial Statements The auditor's opinion on the Oconee County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Re.portable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Oconee 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 Oconee 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 Mruor Programs
The audit report for the Oconee County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Tn,e ofRe.port Issued on Compliance for Mmor ProlIDlffis
The auditor's opinion on the Oconee 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 ,SlO(a) ofOMB Circular A-133
The Oconee County Board ofEducation's ~udit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. MruorPrograms 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. Tn,e "A" Program Dollar Threshold
The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee
The Oconee County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department ofEducation.
- 1-

OCONEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7081-99-01 The Oconee County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group 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 Boutd 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.
m FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-2-