: '\'.r;;,~;,:~i?t;,t:}~:,>Jrt~:\t)~~}\'.::\:):f::{}: i~:. .. . '~, ' ; ',;' (.) .' ',-, ,: :, ":> . .t ~ ."'., OGLETIIORPE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B. COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ADDmONAL 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 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULEOFSTATEREVENUE . 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 5 BYPROGRAM Page 2 4 7 8 18 20 22 24 26 28 29 31 32 .l I .. 1,1_ . I ;r I . , f .... OGLETHORPE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION Ill 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 1 .... _Y-1 -J ,' SECTION I FINANCIAL RussELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Sireet, S.W., Suite 214 Atlanta. Georgia 30334-8400 June 14, 2001 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education and Superintendent and Members of the Oglethorpe County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general purpose financial statements ofthe Oglethorpe County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Oglethorpe County Board of Education's management. Our responsibility is to express an op/nion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and 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 opm10n. 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: 2000ARL-13A ;i l J. ' . ., ;, ,, .LI, * 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, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Oglethorpe County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 14, 2001, on our consideration of the Oglethorpe County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Oglethorpe County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, 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 information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 2000ARL-13A ' 1 ' ' ., t;.\J ~-.-,-.,n ! . ,.: '.{_ir: '.'l r ;I, ., /. ,.1 J . , r , , . f' .., . i' i, ' oit are .as follows: . . - . GOVERN~NTAL F.IJND 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. 1 ; l -8- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30,2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP- A financial reporting device used toaccount for capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a- current financial resources measurenient focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized wheii-the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this -9- OGLETHORPE COUNTY BOARD OF .EDUCATION EXHIBIT "D" .NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS jJUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES .' , r,... ! -- - --~-- - employment period.specify that compensation.be paid1in twelve equal monthly payments beginning in.September 1999 and ending in August 2000,'.' Statefgrants to'.fund the State's shareofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the'same twelve months. As ofJune 30, 2000, compensation under these employmentcontracts had been earned; but two of the twelve monthly payments, due for July and August 2000, had not been made.. ;payments for these two months weremade and.recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August-2000 was receivecfand recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available .and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Oglethorpe County Board of Education's budget is a complete finartciai'plan for the Board's fiscal year and is based'upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget 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 budgetis advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. -10- OGLETIIORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (I) 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 ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. - 11 - OGLE1HORPE COUNTY BOARD OF EDUCATION EXHIBIT"D" NOTES TO 1HE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30,2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PROPERTY TAXES The Oglethorpe County Board of Commissioners fixed the property tax levy for the 1999'tax'year (calendar year) on October 11, 1999 (levy date), Taxes were due on Decembc:r 30, 1999. The lien date for property taxes was January I', 1999. Taxes collected within the current' fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Oglethorpe County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes.collected as a fee for tax collection and remits the.balance oftaxes collected-to the Board.: . ,._;\.. .The tax millage rate levied for the 1999 tax year (calendar year) for the Oglethorpe County Board of Education was as.follows (a mill equals $1 per thousand dollars of assessed value):. ; , School Operations SALES TAXES ~mills Special Purpose Local Option S~es Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $555,882.86 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $1,907,481.31 has been c.ollected or on March 31, 2003, whichever occurs first, INVENTORIES FOOD ~NTORIES . . ,, . J:" ., Inventories of donated food commodities used in the preparation of meals are. reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined-Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. 'The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. PREPAID ITEMS ., Payments made to vendors for services that will benefit periods subsequent to June 30, 2000, are recorded as prepaid items. - . -: INTERFUND TRANSACTIONS The Board has the following types ofinterfund transactions: - 12 - OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30,2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in-the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe dailypool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one ofor any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills; notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, -13 - I. ' ; -, OGLETIIORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" :._ NOTES TO TIIE GENERAL PURPOSEFINANCIAL STATEMENTS _'.. JUNE 30, 2000 Note 2: DEPOSITS - - , , , ,r . _, _. ' ,,,_. (6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe "": , State of.Georgi.a, and '. r , , .. . . :. : , ; , . (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 Federarintermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Associa_tion, and the Federal National MortgageAssociation. ' ,. '' . . ' J ' ,, ,- ' I , (. ,.._ .., CATEGORIZATION OF DEPOSITS . - 1: ,..,. ;.. At Jun~ 30, 2000, the bank balances were $3,247,717.70. Theamolints ofthe total bank balances are classified into three categories of credit risk: . ' Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's . . . !: :, ,:' trust-department or agent in the Board's name. , .. , , : .. Category 3 .- .Uncollateralized deposits_. ,('This includes any bank balance that is collateralized . - . with securities held by ,the pledging financial..institution, or by its trust ., , , , . ~:, _,departmentoragentbutnoUntheBoard'sname.). ,.Jhe Board's deposits are_ classified by,risk category at June 30, 2000,,as follows: . . . ::~ ,,:!",. ' c...... . , : -~ Risk Category . J . ... 1 2 3 ., ' Bank Balance : ". . . ; $ 200,000.00 3,047,717.70 o.oo -Total , ., $ 3;247.7) 7 70 Note 3: NON-MONETARY TRANSACTIONS ' . The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories . , . Note 4: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; ~rs or omissions; job related illness or injuries. to. employees; natural disaster and unemployment compensation. 1 . - 14.- OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30,2000 Note 4: RISK MANAGEMENT The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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 of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 1999 2000 Beginning ofYear Liability Claims and Changes in Estimates Claims Paid End of Year Liability $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ I 800.00 $ 1,800.00 $ 0.00 The Board has purchased surety bonds to provide additional insurance coverage as follows: . Position Covered Amount Superintendent All Employees $ 1.00,000.00 $ 100,000.00 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Oglethorpe County Board ofEducation has entered into various lease agreements as lessee for buses and office equipment. 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 ofthe date oftheir inception. The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: - 15 - - , ., ' .I _OGLETHORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30,2000 Note 5: GENERAL LONG-TERM DEBT ' . 2L Balance July I, 1999 , Deductions Payments . .r :, ' . ' i ' :-' ~, Capiial '.,f, Leases $ 145,923.78 - .. 96;945.20 Balance June 30, 2000 $ 48,278.58' , ;1: At Jun; 30, 2000, payments due by fiscal year which includes priricipaland interest fo~ these items areasfollows: , .. -- ',.: ' ' ' . Fiscal Year Ended June 30 '.: . :.1 \ ., . Capital. Leases' 2001 ''. . : I.. $ 51,745.87 ... Deduct:..lmputed lriterest 2.767.29 Total Principal and lriterest $ 48,978.58 Note 6: ON-BEHALF PAYMENTS ';. V,. The -Board has recognized revenues and expenditures in the amount of $197,273.45 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department ofEducation . ' Paid to the Georgia Department of Community Health For Health lrisurance of Non-Certified Personnel 1ri the amount of$131,192.29 Paid to the TeachersRetirement System of Georgia . , - For Teachers Retirement System (TRSJ Emploxer's Cost . 1ri the amount of$34,838.16 . J Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System . \ ' ! ., ' 'For Public School Employees Retirement (PSERS) Employer's Cost 1ri the amount of$31,243.00 - 16 - OGLETIIORPE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TifE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE30,2000 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% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS'at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2000 1999 1998 100% 100% 100% $ 906,282.55 $ 899,198.59 $ 796,821.44 - 17 - \ OGLETHORPE COUNTY BOARD OF EDUCATION ; COMBINING BALANCE SHEET'.. SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents . Accounts Receivable Inventories Food Donated Commodities Purchased F. o-p~d SCHOOL FOOD. SERVICES FUND LOTTERY. PROGRAMS 235,494.12 " $ 17,725.15 , . 11;j37.62 _ '. ' 4,872.71 Total Assets I , .,...,. .... ' .. ' LIABILITIES AND FUND EQUITY ~ I . ,, p .... LIABILITIES. .,. Cash Overdraft' Accounts Payable Salaries Payable ' , Expired Grant Balances Payable Total Liabilities FUND EQUITY, Fund Balances Reserved 1 For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated . Total Fund Equity 251;504.45 $'====17==72=5=.1=5=1 Ci.-, 11. ' c, $ 53,709.68 $ --~17~72~5~.1~5- $ 11,137.62 4,872.71 181 784.44 $ ----~=0.0~0 $ 197 794.77 $ - - - - ~ =0.0~0 Total Liabilities and Fund Equity See notes to the general purpose financial statements. -,18. $ 251,504.45 $ ===1=7=7=2=5...,15= EXHIBIT "E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30,2000 JUNE 30, 1999 $ 235,494.12 $ 236,916.20 $ 203,768.96 $ 15,579.65 237,073.76 178,977.00 11,137.62 4 872.71 12,641.87 4 354.75 $ 203,768.96 $ 15 579.65 $ 488,578.21 $ ==4=3=2=,8=89==82= $ 98,323.63 $ 15,705.93 61,889.66 17 527.53 $ 193 446.75 $ 15,579.65 $ 15,579.65 $ - 131,628.43 $ 25,212.58 106,092.69 17 527.53 280,461.23 $ 45,639.18 20,019.46 101,782.48 58,962.52 226,403.64 $ 10,322.21 0.00 $ $ 10,322.21 $ $ 0.00 0.00 $ 10,322.21 $ 11,137.62 4,872.71 181 784.44 208,116.98 $ 3,175.14 12,641.87 4,354.75 186 314.42 206,486.18 $ 203.768.96 $ 15 579.65 $ 488,578.21 $ ==4=3;;;;2.;;,8;;;89;;.;;.B:;;2.,, -19 . OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2000 REVENUES ,; ' ~ ..~ . State Funds Federal Funds Other Funds ' '1 C. Total Revenues . ' EXPENDITURES .' , ,. . ' Current ! , Instruction Support Services Pupil Services . Improvement of Instructional Services Educational Media Services General Administration Student Transportation Services Other Support Services , . - Food Services Operati,on',. ' - f' Total Expenditu. .res' '. I ' - ' '. ,' ,' - Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and O.t.h. e',r..Financing Source.s - r over (under) Expenditures FUND BALANCE JULY 1 , . ,. Food Inventory - Net Ch' ange in Period Donated Commodities -- Purchased Food FUND BALANCE JUNE 30 SCHOOL _ FOOD SERVICES FUND- .LOTTERY - PROGRAMS $' . 52,216.00 $ 404,868.62 200,503.95 $ 657 588.57 $ 73,942.15 73,942.15 ... " $ 72,165.67 1,776.48 - $ ' \ .._', 662,118.55 ) $ 662,118.55 $-- $ -4,529.98 $~ 73 942.15 0.00' ' $ -4,529.98 $ 203,311.04 - ;:'--- -1,504.25 ., ,. 517.96 '- $ 197 794.77 $ 0.00 0.00 0.00 See notes to the general purpose financial statements. - 20 - EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ $ 744,118.76 $ 744 118.76 $ 50,000.00 $ 50,000.00 $ 176,158.15 $ 1,148,987.38 200,503.95 1,525,649.48 $ 95,603.48 1,097,198.76 191 300.15 1,384,102.39 $ 499,848.50 40,373.35 $ 86,786.12 94,729.35 1,522.56 11,199.64 . 2,512.17 $ 736 971.69 $ $ 7,147.07 $ $ 50,000.00 50,000.00 $ 0.00 $ 572,014.17 $ 90,373.35 88,562.60 94,729.35 1,522.56 11,199.64 2,512.17 662,118.55 1,523,032.39 $ 2,617.09 $ 564,775.34 89,133.92 62,844.44 42,165.06 938.18 19,565.56 8,353.74 634 767.15 1,422,543.39 -38,441.00 $ 7,147.07 $ 3,175.14 12 808.71 0.00 $ 0.00 2,617.09 $ 206,486.18 -25,632.29 . 238,074.62 -1,504.25 517.96 -4,034.25 -1 921.90 $ 10,322.21 $ 0.00 $ 208,116.98 $ ==,;;;20;;;;6;,_,4;;;8;;;,6.;,18;;. - 21 - OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE30.2000 ASSETS ' Cash and Cash Equivalents - Accounts Receivable ,, ,, . , .:..:.:' , ... Total Assets ' ,, 0 ... ,.; REGULAR GEORGIA STATE FINANCING AND. 'INVESTMENT COMMISSION $ 641,857.64 $ 33,707.00 - $ 641 857.64 $-" : j 't 33 707.00 FUND EQUITY Fund Balances Reserved ,. For SPLOST Projects For State Capital qutlay_Projects Unreserved 2/. < Undesignated Total Fund Equity .. ' .. $ ____ .., ,. $ , .' ( $ :c,, .33,707.00 l. , 641 857.64 . r. 0.00 641 857.64. $ 33 707.00 I- See notes to the general purpose financial statements. -22- . EXHIBIT "G" SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 494,555.65 $ . 100,763.04 LOTTERY PROJECT TOTALS JUNE30, 2000 JUNE 30, 1999 14,244.00 $ 1,184,364.29 $ 745,865.39 100 763.04 92 108.15 $ 595,318.69 $ 14 244.00 $ 1,285,127.33 $ =~8=3=7.;,9=73=.54;;;;., $ 595,318.69 $ 0.00 $ 14,244.00 0.00 595,318.69 $ 47,951.00 641,857.64 268,164.90 33,707.00 536,101.64 $ 595,318.69 $ 14 244.00 $ 1,285,127.33 $ ==8=3=79=73=.54== -23 - , . OGLETHORPE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2000 REVENUES Taxes EXPENDITURES Capital Outlay Salaries Employee Benefits Land and Land Improvements Building and Building Improvements Equipment Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USESl 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 . REGULAR GEORGIA STATE FINANCING AND INVESTMENT .. COMMISSION $ -"-'----"--'-'"-'0.~00:.... $'_'"__..;__0;:::-.::;00::... $ 0.00 $ 0.00 $ o.oo s _____o"".~oo=- $ o.oo $ _ _ _ _;:::0::::00:.... $ 120,000.00 -14 244.00 $ _ _1:.::0c=c5>..:.,7::::56~.0:.:0:.... $ 105,756_.00 536,101.64 $ _ _-=3"'3'-'-7"'-07,_,,::;00::... FUND BALANCE JUNE 30 $ 641 857.64 $ ==~3;;;3i,:,,7,;;;,07;,;,;;;00::,. See notes to the general purpose financial statements. -.24- EXHIBIT"H" SPECIAL PURPOSE LOCAL OPTION SALES TAX LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 555,882.86 $ 0.00 $ 555,882.86 $ _ _5:::2c.:1.,_,,7_,,94:::,-.::;33e.... $ $ 104,994.91 34,198.30 54,368.00 33,500.01 1 667.85 $ 228,729.07 $ $ 327,153.79 $ 0.00 $ 0.00 $ 0.00 $ $ 104,994.91 34,198.30 54,368.00 33,500.01 1 667.85 228,729.07 $ 327,153.79 $ 12,750.12 2,356.54 78,180.31 181,920.71 63,448.00 338,655.68 183,138.65 $ $ $ 327,153.79 $ 268,164.90 14,244.00 $ 14 244.00 $ 134,244.00 $ -14 244.00 120,000.00 $ 150,000.00 150,000.00 14,244.00 $ 0.00 447,153.79 $ 837,973.54 333,138.65 504,834.89 $ 595,318.69 $ 14 244.00 $ 1,285,127.33 $ ===8=3=7'!;;9=73;;;;.54;,,;,. -25- , OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of Child Nutrition Cluster ~ - . Pass-Through From Georgia Depa-rtment of Education Food and Nutrition Program Food Services School Breakfast Program : National School Lunch Program . \ Total Child NutritiOri C1USter Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program {1). "'J, Pass-Through From Office of Treasury and Fiscial Services National Forest Reserve Funds' Total U. S. Depaitmerii of Agriculture ' .,1,, Education, U. S. Oepartmenfof .':. 1 Special Education Cluster Pa~Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education FlowThrough - - Preschool ., Capacity Improvement Grant Total Special Educatio~ Cluster Other Programs Pass-Through From Georgia Departmenfof Education Elementary and 5econdary Education Act Title I Grants to Local Educat10ria1 Agencies Title II Eisenhower Professional Development Totlelll . Technology Literacy Challenge Fund Grants TotleVI Innovative Education Program Strategies Class Size Reduction Title X ',: _. Charter Schoos Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant Total U.S. Department of Education '' Labor, U.S. Department of Pass-Through From Georgia Department of Technical and Adult Education Employment Services and Job Training Pilots Demonstration and Research CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD \' EXPENDITURES . IN PERIOD 10.553 10.555 NIA $ 85,087.96 N_IA 283 477.71 . $ $ 368,565.67 $ (2) 625,815.60 (3) 625,815.60 10.550 10.665 NIA I I,_ NIA 36,302.95 36,302.95 2,686.34 (4) $ 407,554.96 $ _.__-~66~2~,~11~8~.5~5 84:021_84,173 84.173 - - .. .. -- . NIA $ 183,356.76. $ 183,356.76 NIA .... 30,199.60 '.; , 30,199.60, NIA- 6,900.00 6900.00 ' 'r $ 220,456.36 $:c 220,456.36 ; 84.010 84.281 ... ,.. NIA . NIA ; 286,693.19 .. - . 1{429.33 84.318 _ .NIA. 125,000.00 84.298 NIA 84.340 NIA . C ; ; . 84.282 84.186 . NIA NIA 8,7.10.99 54,193.58 5,000.00 9,489.00 , 286,693.19 17,604.47 114,6TT.79 8,710.99 54,193.58 . 5,000.00 9,489.00 84.048 NIA 20146.31 20146.31 $ 744118.76 $ _ _-'7~36=9~7~'-~6~9 17.249 NIA $ 22190.76 $ _ __,22=1'-"90~.""76" Total Federal Financial Assistance N/A = Not Available . 26- $ 111731864.48 S _-'1,4.;2.;1.:,2,a8a;1,a.OO_, OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds earned on this program do not require reporting of expenditures. Major PfOQrams are identified by an asterisk (*) in front of the CFOA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Oglethorpe County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the ge':l9ral purpose financial statements. See notes to the general purpose financial statements. OGLETHORPE COUNTY BOARD OF EDUCATION -- SCHEDULE OF STATE REVENUE . . YEAR ENDED JUNE 30. 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES,_ GENERAL FUND SPECIAL' REVENUE "I. .FUND .. ,.: ,:, ., TOTAL 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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Family Connection Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom Distant Leaming 1,,:' 1 ,I '~'J 4,680,146.00 . 1,;. 1,384,807.00 - 113;974.00 202,389.00 . 57,051.00 1,293,889.00 ',. ., . ' ___$ 1 4,680, 146.00 1,384,807.00 '.' . ' :,.. "113,974.00 '' '202,389.00 57,051.00 1,293,889.00 359,831.00 116,878.00 178,475.00 124,860.00 70,281.00 96,077,00 19,131.00 28,842.00 -852,645.00 668,611.00 $ 3,662.00 52,216.00 359,831.00 116,878.00 178,475,00 124,860,00 70,281.00 96,077.00 19,131.00 28,842.00 -852,645.00 668,611.00 52,216.00 3,662.00 35,000.00 6,531.84 131,192.29 5,000.00 6,642.00 28,024.00 2,377.15 17,041.00 34,838.16 50,000.00 35,000.00 6,531.84 50,000.00 131,192.29 5,000.00 6,642.00 28,.024.oo 2,377.15 17,041.00 34,838.16 14,766.15 53,000.00 6,176.00 14,766.15 53,000.00 6,176.00 Office of Treasury and Fiscal Services Public School Employees Retirement 31,243.00 31 243.00 $ 8,844,148.44 $ 116,158.15 s _ _9_,0_2_0_.3.,06_.5_9'- See notes to the general purpose financial statements. -28- OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2000 SCHEDULE 3 PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS Remolding, renovating, expanding and equipping existing dassrooms, 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, purdlase of school buses and paying any expenses incident thereto $ 3,100,000.00 $ 3,100,000.00 $ 228,729.07 $ 368.470.93 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local 9ption Sales Tax. (2) The Board's rurrent estimate of total cost for the projects. lndudes 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 indude 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. -29- t' r: ,.... . ' : OGLETHORPE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 SCHEDULE "4" 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 $ 6,477,393.00 $ 196,083.00 $ 6,876,967.28 384,526.42 $ $ 7,261,493.70 325,653.88 -118 370.80 $ 7,143,122.90 $ 0.00 $ = = = = =0.= 00 See notes to the general purpose financial statements. - 31 OGLETHORPE COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS .. : YEAR ENDED JUNE 30 2000 ' GENERALAND CAREER EDUCATION PROGRAMS !. Kindergarten(*) l - . . , ,J ' ~ ... ' Grades 1 - 3 () --- - - :~ Sub-Total - K-3 - Grades 4 - 5 () Grades 6 B ('.) Grades 9 - 12 () HiQh School Labo~~orie~ (*) ._~ Vocational Education Laboratories (*) Total General and career Education Programs SPf;CIAL EDUCA!ION PROGRAM ._ Regular Programs Category II () Category Ill () Category IV () Category V () Sub--Totat - Regular Category VI (Gifted) r) Total Special Education Programs REMEDIAL EDUCATION PROGRAM (I Total Fourteen Weighted Programs MEDIA Cf;NTER eROGRAM~ Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL ~ ORIGINAL MID-TERM $ 481,239.00 $ 433,115.10 1,374,213.00 1,236,791.70 $ 32.000.00 $ 1,855,452.00 90 $ 1,669,906.80 $ 32,000.00 570,446.00 ' go 513,401.40 ' 32,000.00 1,070,908.00 90 465,594.00 90 320,806.00 90 963,817.20 419,034.60 288,725.40 Jj1\,r ~?,077.00 J 396,940.00 90 357,246.00 $ 4,680, 146.00 'I ' $ 1,292,977..00 $ 4,212,131.40 $ :;; C.: ll, . i'.! $ 1,163,679.30 $ 1.., ~;. 96,077.00 :. 0.00 -' .~.-~' $ 1,292,977.00 91,830.00 90 9~-0' $ . . ' 1,163,679.30 $ - ,-.. j 82,647.00 0.00 $ 1,384,807.00 $ 1,246,326.30 $ 0.00 $ 113,974.00 90 $ 102,576.60 $ 0.00 $ 6,178,927.00 $ 5,561,034.30 $ 96,077.00 $ 163,094.00 90 $ 146,784.60 $ 39,295.00 100 39,295.00 0.00 $ 202,389.00 $ 186,079.60 $ 0.00 Total Fourteen Weighted and Media Center Programs $ 6,381,316.00 $ 5,747,113.90 $ 96,077.00 STAFF Q!al(f;b9P!,ll;!:,!I eRO!,RAMS Cost of Instruction Professional Development Total Staff Development Programs r) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. $ 18,494.00 38 557.00 $ 18,494.00 $ 38 557.00 $ 571051.00 100 $ 57,051.00 $ 0.00 0.00 0.00 .. 1:'1{ .-,32 - \ _; . .. , SCHEDULE 5 EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 433,115.10 $ 570,999.38 $ 17,816.28 $ 588,815.66 1,268,791.70 1,394,180.26 54,461.92 1,448,642.18 $ 1,701,906.80 $ 1,965,179.64 $ 72,278.20 $ 2,037,457.84 $ 0.00 545,401.40 733,270.04 32,861.46 766,131.50 0.00 963,817.20 1,109,841.36 27,131.87 1,136,973.23 0.00 451,111.60 661,290.80 48,106.28 709,397.08 0.00 288,725.40 285,576.37 12,413.03 297,989.40 0.00 357,246.00 378,070.43 48,142.27 426,212.70 0.00 $ 4,308,208.40 $ 5,133,228.64 $ 240,933.11 $ 5,374,161.75 $ 1,163,679.30 $ 215,670.19 $ 922,895.46 70,553.44 27,971.79 2,411.74 $ 73,294.79 4,369.55 345.98 218,081.93 996,190.25 74,922.99 28,317.77 $ 1,163,679.30 $ 1,237,090.88 $ 80,422.06 $ 1,317,512.94 0.00 82,647.00 91,688.08 2 773.71 94441.79 0.00 $ 1,246,326.30 $ 1,328,758.96 $ 83,195.77 $ 1411 954.73 $ 102,576.60 $ 153,092.42 $ 1,525.00 $ 154 617.42 0.00 $ 5,657,111.30 $ 6,615,080.02 $ 325,653.88 $ 6,940,733.90 $ 146,784.60 $ 261,887.26 $ 261,887.26 0.00 39,295.00 $ 58,872.54 58,872.54 0.00 $ 186,079.60 $ 261,887.26 $ 58,872.54 $ 320,759.80 $ 5,843,190.90 $ 6,876,967.28 $ 384,526.42 $ 71261,493.70 $ 0.00 s 18,494.00" 38,557.00 s==.;;57;;,,;;;05;;,1;;;.oo. $ 37,599.60 $ 37,599.60 23,938.27 23,938.27 $ 61,537.87 $ =_. s1,sa1.87 s ____ o;;;.o;;;,o 33. _.., J ; r t ' : I SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS J. w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 14, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly . Members of the State Board ofEducation and Superintendent and Members of the Oglethorpe County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements ofOglethorpe County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated June 14, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Oglethorpe County Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and ma~erial effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Oglethorpe County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 2000YB-40A :.1 . j : i :, r '/i ,, , r :1 ,.( 'I ' ' ,.f, 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 ofthe internal control over financial reporting that, in our judgment, 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-7091-0001. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended solely for the information and use of management, members of the Oglethorpe County Board of Education, 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, ~ QQ_~-~ ~ssell W. Hinton State Auditor RWH:jb 2000YB-40A j [. 1 I .,. ., . ' .,. -, , . .Jf ' ' . . J' ... RussELL W. H1NTON STATE AUDITOR (404) 656-2174 :( , \; ;Tr~ DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 June 14, 2001 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education and Superintendent and Members ofthe Oglethorpe County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Oglethorpe County Board of Education with the types of. compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Oglethorpe County Board of Education's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Oglethorpe County Board of Education's management. Our responsibility is to express an opinion on Oglethorpe County Board ofEducation's compliance based on our audit. We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, 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 ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Oglethorpe County Board ofEducation'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 CountyBoard ofEducation's compliance with those requirements. ' 2000SA-I0A ' l' I ~I J " '' I "I ;: ! ' . ' ,. :,- C r, ., ., .L '../ ,r , . J:: ,, 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, 2000. Internal Control Over 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 of Education'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 of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of management, members .of the Oglethorpe County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, RWH:jb 2000SA-10A State Auditor .! I J . , ' I . ,, ., , J '., ' 1 ,.. . ' . .;,; ., . , r .. ,_j ' ' , . I I ,[ .. , . J ' ,\,, ' 1. \.,, . ., I. , ' SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS I OGLETHORPE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-7091-98-0 I FS-7091-99-0 I 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-7091-99-01 Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional staff the Board has decided not to pursue the recording of general fixed assets on the financial statements. .., .J .'' , ' L SECTIONN FINDINGS AND QUESTIONED COSTS OGLETHORPE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Oglethorpe County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Oglethorpe County Board of Education 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 Oglethorpe County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs -pie audit report for the Oglethorpe County Board of Education did not disclose any reportable conditions in internal control over major programs. 5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Oglethorpe County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .51O(a) of 0MB Circular A-133 The Oglethorpe County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 7. Major Programs Federal awards audited as major programs are as follows: . 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 9. Low Risk Auditee The Oglethorpe County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. - 1- : .OGLETHORPE COUNTY BOARD OF EDUC.ATION -~-SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2000 , , . ,_, - , , rn r II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Grou'p Reportable Condition - Material Weakness Repeated From Prior Year . -Finding Control Number:. FS-7091-00-01 :, ,,., J a The Oglethorpe Coririty Board of Educado~ "did not maintain system-wide Ge~eral 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' ~f 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 ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost; estimated replacement cost, location and description. Detailed records should be maintained of all additions arid deletions to the General Fixed Assets Account Group. I ' ( .m FEDERAL AwARD FINDINGS AND QUESTIONED COSTS . No matters were reported. .... '.'; J ,I . ., . '