AUDIT REPORT OGLETHORPE COUNTY BOARD OF EDUCATION LEXINGTON, GEORGIA YEAR ENDED JUNE 30, 1998 OGLETHQRPECQUNTYBOARPOFEDUCAUON - 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 5 D NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS 7 ADDmONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 16 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 18 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 20 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 21 SCHEDULES 1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 22 2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 23 3 SCHEDULE OF STATE REVENUE 25 4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 26 5 SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS 27 OGLETIiORPE COUNTY BOARD OF EDUCATION - TABLE OF CQNI'ENTS- SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION SCHEDULES ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 6 OVERALL 29 7 BY PROGRAM 30 SECTIONll 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 WTIH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WTIH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WTIH OMB CIRCULAR A-133 SECTIONID 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 AND QUESTIONED COSTS SECTION I FINANCIAL RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 June 24,1999 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Membe~oftheSmteBo~dofEducation and Superintendent and Memb~ ofthe Oglethorpe County Board ofEducation INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SuppLEMENTARY INFORMATION SCHEDULE OF EXPENPIDJRES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general purpose financial smtements of the Oglethorpe County Bo~d of Education, as of and for the ~ ended June 30, 1998, as listed in the table of contents. These general purpose financial smtements are the responsibility of the Oglethorpe County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial smtements based on our audit. We conducted our audit in accordance with generally accepted auditing smn~ds and the smndards applicable to financial audits conmined in Goyernment Auditing Standards. issued by the Comptroller General ofthe United Smtes. Those stan~dsrequire that we plan and perform the audit to obmin reasonable assurance about whether the financial smtements are free of material rnissWement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial smtements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial sWement presenmtion. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Bo~d's financial statements have been prep~edusing certain accounting practices and policies which, in our opinion, v~ in some respects from generally accepted accounting principles. These variances ~e described as follows: * 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 Bo~d which should be included to conform to generally accepted accounting principles. 98ARL-13B * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confonn to generally accepted accounting principles, these accounts should be included in the general purpose fmancial 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 of related 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 confonn 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 on the general purpose financial statements ofthe 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 Oglethorpe County Board ofEducation as ofJune 30, 1998, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditjn~ Standards, we have also issued our report dated June 24, 1999, on our consideration ofthe Oglethorpe County Board ofEducation's intemal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. The year 2000 supplementary infonnation on Schedule "1" is not a required part of the basic financial statements but is supplementary infonnation required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods ofmeasurement and presentation ofthe supplementary infonnation. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Oglethorpe County Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Oglethorpe County Board of Education does business are or will become year 2000 compliant. Our audit was perfonned for the purpose offorming an opinion on the general purpose financial statements of the Oglethorpe County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required byU. S. Office of Management and Budget Circular A-133, Audits ofStates. Local Governments. and Non-Profit Organizations. are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such infonnation 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 infonnation is fairly presented in all material respects in relation to the general purpose financial statements taken as a wh()le. 98ARL-13B 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, ~LJ.~ Russell W. Hinton State Auditor RWH:jb 98ARL-13B OGLEIHORPECQUNTYBOARDQFEPUCATIQN OGLETHORPE COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1998 ASSETS Cash and Cash Equivalents Accounts Receivable Prepaid Items Inventories Food Donated Commodities Purchased Food Amount to be Provided in Future Years For Payment of Capital Lease Agreements GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 1,102,047.46 129,094.95 $ 443,275.19 700.00 16,676.12 6,276.65 Total Assets $ 1,231,842.41 $ 466,227.96 LIABILITIES AND FUND EQUITY LIABiLiTIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retsinages Payable Capital Lease Agreements Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Continuation of Other Programs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 66,318.39 $ 3,710.47 29,305.64 92,281.37 449.92 40,247.94 $ 4,160.39 $ 228,153.34 $ 24,407.76 $ 4,773.34 25,000,00 16,676.12 6,276.65 1,203,274.26 $ 1,227,682.02 $ 185,348.51 238,074,62 Total Liabilities and Fund Equity $ The notes to the general purpose financial statements are an Integral part of this statemenL 2 1,231,842.41 $ 466,227.96 EXHIBIT"A" TYPES CAPITAL PROJECTS FUND $ 433,189.48 71,645.41 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30. 1998 JUNE 30. 1997 $ 1,535,236.94 $ 1,473,740.22 644,015.55 333,543.31 700.00 6,n9.25 $ 227.522.63 16,676.12 6,276.65 227.522.63 12,122.26 4,307.62 219.645.61 $ 504,834.89 $ 227,522.63 $ 2.430.427.89 $ 2,050,138.27 $ 66,318.39 33,016.11 $ 29,836.36 92,281.37 82,359.34 40,697.86 32,368.04 68,809.66 114,946.06 $ 227.522.63 227.522.63 219,645.61 $ 227.522.63 $ 459.636.36 $ 547.965.07 $ 85,026.25 419.808.64 $ 504,834.89 $ 24,407.76 $ 46,058.88 4,n3.34 1,981.35 25,000.00 16,676.12 6,276.65 85,026.25 12,122.26 4,307.62 53,361.87 1.808.431.41 1,384.341.22 $ 1.970.591.53 $ 1.502.173.20 $ 504,834.89 $ 227,522.63 $ 2,430,427.89 $ 2,050,138.27 -3- OGLETHORPE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAl.ANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1998 EXHIBIT"B" ~ State Funds federal Funds Taxes Other Funds Tolal Revenues exPeNDITURES Cunent Instruction Support Services Pupil Services Improvement of InstnK:tional Services Educational Media Services General Administration School Administration Business Administration Maintenance end Qperetion of Plant Student Transportation Services Other Support Servlces Food Services Operation CapitalOuUay DebtServioe Prindpal 1- Total e-n Operating Transfers In Operating Tran&fero OUt Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expendltunts and Other Financing Uses FUNp BALANCE JULY 1 REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30 1998 JUNE 30 1997 110.178.58 110,178.58 1.554,352.93 114.841.50 114,841.50 0.00 18.778.25 0.00 110.178.58 114841.50 $ 225020.08 $ 1.571.129.18 0.00 183.357.22 0.00 $ 0.00 $ 183357.22 -73178.64 12,575.50 $ 17.239.75 29 615.25 $ 85.026.25 $ 12,575.50 183,357.22 17239.75 213.172.47 11847.61 8,634.35 2,064,592.38 2091,226.73 -520 097.55 200,000.00 $ -19,816.77 180 183.23 $ 180,183,23 $ 239825.41 19,816.77 19816.77 -53.381.87 $ 53381.87 219,816.77 $ .19,816.77 200 000.00 $ 178,528.20 178526.20 85.026.25 $ 0.00 211,847.81 292987.28 -341,571.35 634 558.63 FUNp BALANCE JUNE 30 419806.64 $ 0.00 $ 85.026.25 $ 504834.89 $ 292,987.28 _ notao to the general purpooa financial _nts. -21- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE "I" SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION YEAR 2000 DISCLOSURES YEAR ENDED nINE 30 1998 At June 30, 1998, the Oglethorpe County Board of Education had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic eqnipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other eqnipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue. Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. Remediation Stage - When changes are made to systems and equipment. Validationtresting Stage - The process ofensuring that the changes made to systems and equipment will produce a year 2000 compliant system. It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30,1998, the financial accounting system was determined to be at the Awareness Stage. The Board's financial accounting software (GENESIS) and hardware (Wang VS) are owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. fu the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards of education currently utilizing the GENESIS accounting software. See notes to the general purpose financial statements. - 22- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1998 SCHEDULE "2" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER 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) Nutrition Education and Training Program 1998 Contract 10.665 10.553 " 10.555 10.550 10.564 N/A $ N/A N/A NlA NlA Total U. S. Department of Agriculture $ Education, U. S. Department of Pass-Through From Georgia Department of Education Safe and Drug-Free Schools 1998 Grant Elementary and secondary Education Act nUel Grants to Local Educational Agencies 1997 Summer 1998 Grant 1998 Summer TItiell Eisenhower ProfeSsional Development 1997 Grant 1998 Grant nUelll Technology Uleracy Challenge 1998 Grant nUeVi InnovaUve Education Program Strategies 1998 Grant Goals2QQQ State and Local Education Systemic Improvement Grant 1998 Grant IndMduals with Disabilities Education Act Part B - Special Education AowThrough 1998 Grant Preschool 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant 64.186 64.010 64.010 64.010 64.281 84.281 64.318 64,298 82.276 64.027 84.173 84.048 84.243 NlA $ N/A N/A NlA N/A NlA NlA NlA NlA NlA NlA N/A NlA Total U. S. Department of Education $ FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 2,810.61 (4) 62,490.56 276,791.36 41,213.86 5,000.00 388,306.39 $ (2) 617,574.42 (3) 41,213.86 (2) 658,788.28 10,233.00 $ 10,233.00 4,980.23 253,872.00 3,621.15 -1,276.58 17,500.00 178,924.68 9,943.75 195,981.17 4,980.23 253,872.00 3,621.15 704.n 12,726.66 178,924.68 9,943.75 195,981.17 134,356.91 24,534.08 134,356.91 24,534.08 20,246.61 30,000.00 882,897.00 $ 20,246.61 30,000.00 880,105.01 Total Federal Financial Assistance NlA=Not Available -23- $ 1,271,203.39 $ 1,538,893.29 OGLETHORPE CQUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1998 SCHEDULE "2" Notes to the Schedule of Expenditures of Federal Awards (1) The amoun" shown for the Food Distribution Program represen" the Federally assigned value of nonmonetary assistance for donated oommodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program and the Nutrition Education and Training 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) 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 Assistanoe to any Subreclplenl The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Oglethorpe County Board of Education and Is presented on the modified basis of accounting which Is the same basis of accounting used in the presentation of the general purpose financial statemen". See notes to the general purpose financial statamenls. -24- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1998 SCHEDULE "3" AGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Education General and Gareer Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special InstruCtional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other Slate ProQrams Ad Valorem Tax Adjustment A1temative Program At-Risk Summer School Program Environmental Science Program Gifted Technology Health Insurance Mentor Teacher Program Preschool Handicapped Program Remedial Surrvner School Program Teachers' Retirement Lottery Progrsms A1temative School Program InstruCtional Technology Assistive Technology Classroom Technology Georgia State Anancing and Investment Commission Reimbursement on ConstruCtion Projecis Office of Treasury and F'oscal Services Public School Employees Retirement CONTRACTS Human Resouroes, Georgia Department of Family ConneCtion Program OTHER Education, Georgia Department of Reimbursement for Substitute Teacher GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND $ 4,062,108.00 1,114,030.00 87,047.00 171,844.00 55.538.00 1,181.008.00 358,633.00 108,161.00 155,667.00 242,372.40 63,144.00 216,165.00 17,696.00 28,842.00 -782,084.00 439,769.00 1,72123 51,735.00 48,757.00 5,776.70 1,000.00 10,000.00 118,163.86 2,820.00 25,241.85 2,609.63 18,476.81 24,717.00 102.00 46,716.00 4,132.00 6,014.71 53,733.00 $ 110,178.58 25,000.00 TOTAL 4,062,108.00 1,114,030.00 87,047.00 171,844.00 55,538.00 1,181,008.00 358,633.00 108,161.00 155,667.00 242,372.40 83,144.00 216,165.00 17,696.00 28,842.00 -782,084.00 439,769.00 46,716.00 1,721.23 51,735.00 48,757.00 5,776.70 1,000.00 10,000.00 118,183.86 2,820.00 25,241.85 2,609.83 18,476.81 4,132.00 6,014.71 53,733.00 110,178.58 24,717.00 25,000.00 102.00 $ 7,851 ,081.68 $ See notee to the general purpose financial statemenls. -25- 135.595.71 110.178.58 $ 8,096,855.97 OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 1998 SCHEDULE "4" PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COST (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS Remodeling, renovating, expanding and equipping existing classrooms, instructional and support space and grounds at the primary, elementary, middle and high schools, as well as the bus garage, acquiring any necessary real and personal property, purchase of school buses and paying any expenses incident thereto $ 3,100,000.00 $ 3,100,000.00 $ 29,815.25 $ 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 each project. Includes all cost from project inception to completion. (3) The voters of Oglethorpe 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. -26 - OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30 1998 SCHEDULE "5" EXPENDITURES Current Instruction Support Services Educational Media Services Business Administration ALTERNATIVE SCHOOL PROGRAM INSTRUCTIONAL TECHNOLOGY ASSISTIVE CLASSROOM TECHNOLOGY TECHNOLOGY $ 4,132.00 $ 6,014.71 $ 22,195.90 $ 17,075.39 14,461.71 TOTAL 32,342.61 17,075.39 14,461.71 Total Expenditures $ 4,132.00 $ 6,014.71 $ 53,733.00 $ 63,879.71 See notes to the general purpose financial statements. -27 OGLETHORPE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1996 SCHEDULE "6" 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 $ 5,617,404.00 $ 155,620.00 $ 5,939,953.96 373,990.75 $ $ 6,313,944.73 319,035.94 -61,027.30 $ 6,232,917.43 $ 0.00 $ 0.00 See notes to the general purpose financial statements. - 29 - OGLETHORPE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUNp - QUALITY BASIC EDUCATION pROGRAMS YEAR ENDED JUNE 30 1998 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten r) Grades 1 3 (*) Sub-Total- K-3 Grades 4 - 5 (0) Grades 8 - 8 (0) Grades 9 -12 rl High School Laboratories r) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category I rl Categoryllrl Category III r) Category IV rl CategoryVrl Sub--Total- Regular Category VI (Gifted) rl Total Speclel Education Programs REMEDIAL EDUCATION PROGRAM rl Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media center Programs Total Fourteen Weighted and Media center Programs STAFF DEVELOPMENT PROGRAMS Cost of instruction Professional Development Total Staff Development Programs (0) identities Fou_n Weighted Programs. See notes to Ihe general purpose financlalslatements. - 30 - ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL ~ ORIGINAL MID-TERM 457.842.00 1,090,630.00 1.548.472.00 90 527.518.00 90 920.940.00 90 419.158.00 90 330.093.00 90 315.927.00 90 4.062.108.00 412.057.80 981,567.00 1.393,624.80 474.766.20 828.846.00 3n.242.20 297.083.70 284.334.30 3.655.897.20 100.000.00 100.000.00 40,000.00 140.000.00 1.064.464.00 958.017.60 $ 42,375.00 1,064.464.00 90 49.566.00 90 1.114.030.00 87.047.00 90 5.263.185.00 958.017.60 44,609.40 1,002,627.00 78.342.30 4.736,866.50 42.375.00 42.375.00 0.00 182,375.00 140,017.00 90 31,827.00 90 171.844.00 128.015.30 28.644.30 154,659.60 0.00 0.00 5,435,029.00 4.891 ,526.10 $ 182,375.00 16.092.00 39.448.00 16.092.00 39,448.00 55.536.00 100 $ 55.538.00 $ 0.00 0.00 ..;o~.O~O SCHEDULE "7" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT 412,057.80 483,359.87 18,882.20 502,242.07 1,081,587.00 1,235,217.98 67,980.95 1,303,178.93 1,493,624.80 l,718,5n.85 86,843.15 1,805,421.00 0.00 474,766.20 638,120.85 34,098.02 672,218.87 0.00 868,846.00 982,385.89 24,886.48 1,007,272.37 0.00 3n,242.2O 536,101.84 49,506.36 585,608.00 0.00 297,083.70 303,686.74 20,305.50 323,872.24 0.00 284,334.30 319,042.04 51,580.11 370,822.15 0.00 $ 3,795,897.20 4,497,796.01 267,219.82 4,765,014.63 1,000,392.80 $ 29,318.64 199,373.76 806,213.81 58,353.93 14,715.59 176.92 2,362.71 35,197.55 4,488.85 1,113.00 29,495.58 201,736.47 641,411.36 60,842.58 15,828.59 1,000,392.80 1,105,975.73 43,338.83 1,149,314.58 0.00 44,809.40 54,872.78 2,046.91 58,719.89 0.00 1,045,002.00 1,160,648.51 45,385.74 1,206,034.25 78,342.30 83,593.97 6,430.58 90,024.55 0.00 4,919,241.50 5,742,037.49 319,035.94 6,061,073.43 126,015.30 197,916.49 197,918.49 0.00 28,644.30 54,954.81 54,954.81 0.00 $ 154,659.80 197,918.49 54,954.81 252,871.30 5,073,901.10 5,939,953.98 $ 373,990.75 $ 8.313,944.73 0.00 16,092.00 39,446.00 55.538.00 32,491.04 23,474.02 32,491.04 23,474.02 55,985.06 $ 55,985.06 S 0.00 31 . SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS RUSSELL W. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 24,1999 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Oglethorpe 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 Oglethorpe County Board of Education as of and for the year ended June 30, 1998, and have issued our report thereon dated June 24, 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 Auditini Standards. issued by the Comptroller General ofthe United States. Compliance As part ofobtaining reasonable assurance about whether Oglethorpe County Board ofEducation's financial statements are free ofmaterial misstatement, we perfonned tests ofits 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 ofour 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 Audjtini Standards. Internal Control Over Financial Re.portiDl~ In planning and performing our audit, we considered Oglethorpe 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 financial 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 of the internal control over financial reporting that, in our judgement, could adversely affect Oglethorpe County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-709l-98-01. A material weakness is a condition in which the design or operation of one or more ofthe 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 of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended for the information ofmanagement, 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 ofpublic record. Respectfully submitted, ~W.~ Russell W. Hinton State Auditor RWH:jb 98YB-40 RUSSELL W. HINTON STATE AUDlmR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 June 24,1999 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education and Superintendent and Members ofthe Oglethorpe County Board ofEducation REPORT ON COMPLIANCE WITH REOU1REMENTS APPLICABLE TO EACH MNOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WTI1I OMB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Oglethorpe County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Oglethorpe County Board ofEducation's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Oglethorpe County Board of Education's management. Our responsibility is to express an opinion on Oglethorpe County Board of Education'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 OMB Circular A-B3, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-B3 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 Oglethorpe 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 Oglethorpe County Board of Education's compliance with those requirements. 98SA-10 In our opinion, the Oglethorpe 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 Oyer Compliance The management of Oglethorpe 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 Oglethorpe County Board ofEducation's intemal 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-l33. 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 ofpublic record. Respectfully submitted, ~,. C!l W. ~ Russell W. Hinton State Auditor RWH:jb 98SA-1O SECTIONffi AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS OGLETHORPE COUNTy BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARy SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEARENPED JUNE 30 1998 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 7091-93-01 FS-7091-97-01 Further Action Not Warranted Unresolved - See Corrective ActionlResponses CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7091-97-01 Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording ofGeneral Fixed Assets in the financial statements. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 7091-96-02 Previously Reported Corrective Action Implemented SECTION IV FINDINGS AND QUESTIONED COSTS OGLETHORPE COUNTY BOARD OF EDl JCATIQN SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ilJNE 30 1998 SUMMARY OF AUDITOR'S RESULTS 1. Txpe Qf~Qrt Issued Qn the Financial Statements The auditQr's QpiniQn Qn the OglethQrpe CQunty BQard Qf EducatiQn's financial statements was qualified fQr variQUS departures frQm generally accepted accounting principles. 2. ~ortable ConditiQns in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Oglethorpe County Board of Education disclosed a financial statement reportable condition related to the following contrQl category. General Fixed Assets The repQrtable conditiQn described abQve is considered tQ be a material weakness. 3. Noncompliance Material to the Financial Statements The audit Qfthe OglethQrpe County Board ofEducation disclQsed nQ instances ofnQncompliance that were deemed to be material to the financial statements. 4. ~ortable CQnditions in Internal CQntrol Over M!)jQr Programs The audit report fQr the OglethQrpe County Board Qf Education did not disclQse any repQrtable cQnditions in internal control over majQr programs. 5. Type QfR~ort Issued on Compliance fQr M!)jor Programs The auditor's opiniQn Qn the OglethQrpe County BQard of EducatiQn's repQrt Qn compliance with requirements applicable to majQr programs was unqualified. 6. Audit Findings ReQJIired to be R~Qrtedby Section SlOW ofOMB Circular A-133 The OglethQrpe County BQard of Education's audit did nQt disclQse audit findings required to be repQrted by sectiQn .510(a) QfOMB Circular A-133. 7. M!)jor Programs Federal awards audited as majQr programs are as fQllQws: 10.553 FOQd and Nutrition Program - FQod Services - School Breakfast Program 10.555 FQQd and NutritiQn Program - FQod Services - NatiQnal School Lunch Program 8. Type" A" Program DQllar ThreshQld The dQllar threshQld fQr type "A" programs was $300,000.00. 9. Low Risk Auditee The OglethQrpe CQunty BQard of EducatiQn was audited as a lQW risk auditee based on a waiver granted by the U. S. Department QfEducatiQn. -I - OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED TImE 30 1998 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-7091-98-0I The Oglethorpe 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 of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings, and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-