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

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- STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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PUTNAM COUNTY BOARD OF EDUCATION
EATONTON, GEORGIA

REPORT ON AUDIT

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OF THE FINANCIAL STATEMENTS

FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor


PUTNAM 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

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE 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 SCHEDULE OF STATE REVENUE

ANALYSIS OF LU. Y.1.u EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

3

OVERALL

4

BYPROGRAM

Page

2
4 6 7
18
20 22
23
24
26 27
28

PUTNAM COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II C01\1PLIANCE AND INTERNAL CONTROL REPORTS REPORT ON C01\1PLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDI'I'ING STANDARDS REPORT ON C01\1PLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER C01\1PLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
SECTION ill AUDI'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I FINANCIAL

RussE1,1, W. HtNTC>N
STATE AUDITOR I404 I 6562174

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wasl1ingl<>n S1ree1. S.W.. Suilc 214 Atlanta. Get>rgia 3()334-84()()
April 3, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Putnam County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Putnam County
Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents.
These general purpose financial statements are the responsibility of the Putnam County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perforrn the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial staten1ents have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to conforrn to generally accepted accounting principles.
2000ARL-13

* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confo11n 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 confo11n 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 det1::1n1ined, 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 Putnam County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo1mity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated April 3, 2001, on our consideration ofthe Putnam County Board ofEducation's inte1nal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit perfo1n1ed 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 perfo11ned for the purpose of fo1n1ing an opinion on the general purpose financial statements of the Putnam County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 4), 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 info11nation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial stateinents and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such info11nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

A copy ofthis report has been filed as a petmanent record in the office ofthe State Auditor and made
available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.

RWH:jb 2000ARL-13

Respectfully submitted,

~-
ell W. Hinton State Auditor




PUTNAM COUNTY BOARD OF EDUCATION

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,678,353.76 $ 358,737.35 $ 4,458,003.64

197,052.58

153,921.52

21,385.03 13,183.84

Total Assets

$ 1,875,406.34 $ 547,227.74 $ 4,458,003.64

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant Balances Payable General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories
Food
Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated
Total Fund Equity

$

9,368.91 $

27,517.59

115,340.24

356.11

22,536.73

$

9,725.02 $ _......;.;16;;.;;5.._,3=9_4_..;;;.;56'-



$

14,088.88 $

135.90

1,851,592.44 $ 1,865,681.32 $

21,385.03 13,183.84
$
347,128.41
381,833.18 $

4,458,003.64 0.00
4,458,003.64

Total Liabilities and Fund Equity

$ 1,875,406.34 $ 541,221.14 $ __4_.,4_5_8_,o_o3_._64_

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

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

34,290.79

$ 6,529,385.54 $ 1,862,239.59

13,411.44

364,385.54

632,255.85

21,385.03 13,183.84

$

47,702.23

47,702.23

14,042,297.77

14,042,297.77

19,572.44 11,400.76 327,604.77
9,582,395.23

$

47,702.23 $

14,090,000.00 $ 21,018,339.95 $ 12,435,468.64

$

36,886.50 $

101,294.66

115,340.24

124,222.66

46,733.22

22,892.84

20,028.00

$

14,090,000.00

14,090,000.00

9,910,000.00

$

14,090,000.00 $ 14,265,119.58 $ 10,202,278.54

$

47,702.23

0.00 $ _ _ _4'""-7""7'-,..a.02=---2_3_

$

3,467.57

$

47,702.23

327,604.77

14,224.78

14,862.72

21,385.03 13,183.84 4,458,003.64

19,572.44 11,400.76

2,198,720.85

1,856,281.84

$ 6,753,220.37 $ 2,233,190.10

$

47,702.23 $

14,090,000.00 $ 21,018,339.95 $ 12,435,468.64

-3-

PUTNAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

REVENUES

State Funds

Federal Funds

Taxes

,

Other Funds

Total Revenues

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest
Paying Agent Fees

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES {USES)

Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Discount on Bonds Sold Operating Transfers In Operating Transfers Out

Total Other Financing Sources (Uses)

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

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 8, 114,216.53 $ 26,555.58
6,287,475.30 155,252.90
$ 14,583,500.31 $

198,501.76 2,420,423.93
254,188.38
2,873,114.07

$ 9,608,751.88 $ 1,118,061.44

483,217.58

137,271.45

362,224.89

309,564.76

1, 168,503.37



168,349.75

925,514.05

1,026,399.42

7,899.57

5,821.42

116,502.42

158,465.19 24,517.23
279,591.40
550.00 62,360.24 100,536.69 11,874.36 988,704.18 53,599.59

$ 14,320,020.56 $ 2,798,260.32

$

263,479.75 $ _ _..:,.74;,:.,:::,:85:::::3.:.:..75=..



$

263,479.75 $

1,602,201.57

74,853.75 303,383.76
1,812.59 1,783.08

FUND BALANCE JUNE 30

$ 1,865,681.32 $ ____3_8.1.,8._3_,3_,.18;;;..

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2000

JUNE 30, 1999

$
$ ___4;.::;0.:.7.;.76:.:.7'-4'-

$

40 776.74 $

$
487,485.92 468,480.56
955,966.48 $

8,312,718.29 $ 2,446,979.51 6,774,961.22
918,698.58
18,453,357.60 $

8,206,483.07 2,297,956.23 6,329,711.51
853,215.02
17,687,365.83

$ 10,726,813.32 $ 10,211,252.82

$

37,773.10

641,682.77 161,788.68 362,224.89 589,156.16 1,168,503.37 206,672.85 987,874.29 1,126,936.11 19,773.93 994,525.60 170,102.01

632,878.33 160,935.36 358,465.74 477,558.34 1,021,778.48 165,441.87 965,965.80 1,104,798.60 19,863.32 1,109,251.97 335,418.91

$

320,000.00

927,720.00

3,599.02

320,000.00 927,720.00
3,599.02

285,000.00 971,169.58
4,349.96

$

37,773.10 $ 1,251,319.02 $ 18,407,373.00 $ 17,824,129.08

$

3,003.64 $

-295,352.54 $

45,984.60 $ -136,763.25

$
$ 4,500,000.00 -45,000.00
$ 4,455,000.00 $
$ 4,458,003.64 $ 0.00

15,450.00 $ 15,450.00 $

15,450.00

4,500,000.00 -45,000.00
$

19,905.72 -19,905.72

4,470,450.00 $ ---~0-~00::,..

-279,902.54 $ 327,604.77

4,516,434.60 $ 2,233,190.10

-136,763.25 2,366,800.24

1,812.59 1,783.08

2,638.30 514.81

$ 4,458,003.64 $

47,702.23 $ 6,753,220.37 $ 2,233,190.10
-5-

PUTNAM COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL CNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2000

EXHIBIT c

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 7,789,504.00 $ 8,114,216.53

26,555.58

6,195,697.00

6,287,475.30

80,000.00

155,252.90

Total Revenues

$ 14,065,201.00 $ 14,583,500.31

EXPENDITURES

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

$ 9,349,436.00 $ 9,608,751.88

494,251.00 162,211.00 366,262.00 319,459.00 1, 117,956.00 192,137.00 1,017,450.00 942,091.00
8,948.00 300,000.00

483,217.58 137,271.45 362,224.89 309,564.76 1,168,503.37 168,349.75 925,514.05 1,026,399.42
7,899.57 5,821.42 116,502.42

Total Expenditures

S 14,270,201.00 $ 14,320,020.56

Excess of Revenues over (under) Expenditures $ -205,000.00 $ 263,479,75

OTHER FINANCING SOURCES

Other Sources

55,000.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-150,000.00 $

263,479.75

FUND BALANCE JULY 1. 1999

1,200,000.00

1,602,201.57

FUND BALANCE JUNE 30. 2000

$

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

82,000.00 $

198,501.76

2,247,353.00

2,420,423.93

240,633.00

254,188.38

$ 2,569,986.00 $ 2,873,114.07

s

948,215.00 $ 1,118,061.44

153,796.00 7,084.00

158,465.19 24,517.23

219,872.00

279,591.40

600.00 65,235.00 79,385.00 19,454.00 1,076,345.00

550.00 62,360.24 100,536.69 11,874.36 988,704.18 53,599.59

$ 2,569,986.00 $ 2,798,260.32

s

0,00 $

74,853.75

$

0.00 $

74,853.75

332,428.00

272,410,56

$

332,428.00 $ _ _3_4_7,_,2_,64..,.3_1_

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

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Putnam County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A
fund is a separate accounting entity with a self-balancing set of accounts. An account group is a
financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confottn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although ''school activity accounts'' are maintained at the individual schools, neither the assets,
liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confuttn to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-



PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 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.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-te1n1 principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is dete11nined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
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-Te11n 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 dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a

-8-

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Putnam County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper 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.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B'' of this report:

-9-

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 303,383.76

Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods

-19,572.44 -11,400.76

Fund Balance July 1, 1999 (Budget Basis)

$ 272,410.56

Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses


74,853.75

FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 347,264.31

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.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general pth'l)OSe financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Putnam County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 4, 1999 (levy date). Taxes were due on December 4, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Putnam County Tax Commissioner bills and collects the property taxes for the Board ofEducation and remits the taxes collected to the Board.

- 10 -

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tax millage rates levied for the 1999 tax year (calendar year) for the Putnam County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

10.91 mills .78 mills

11.69 mills

SALES TAXES



Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $269.07 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $12,499,730.93 has been collected or on June 30, 2005, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The Board has the following type of interfund transactions:

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.

- 11 -

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in confo1111ity 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 titne 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.
If a 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 1lOpercent ofthe daily pool
balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,
waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business
within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(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 of the State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

- 12 -

PUTNAM COUNfY BOARD OF EDUCATION

EXHIBIT "D"


NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $7,253,303.79. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

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

Risk Category

Bank Balance

1

$ 380,290.79

2

266,257.72

3

6,606,755.28

Total

$ 7,253,303.79

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; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

- 13 -

PU1NAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. 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 is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years.

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

Position Covered

Amount

Superintendent All Other Employees

$ 10,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT
.
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1994 General Government - Refunding - Series 1998 General Government - Series 2000

4.90% - 6.90% 3.70% - 4.50%
5.15%

$ 1,710,000.00 7,880,000.00 4,500,000.00

$ 14,090,000.00
The changes in General Long-Te1n1 Debt during the fiscal year ended June 30, 2000, were as
follows:

- 14 -

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 1999

$ 9,910,000.00

Additions G. 0. Bonds

Deductions Debt Retired

4,500,000.00 320,000.00

Balance June 30, 2000

$14,090,000.00

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004 2005 2006 - 2010 2011 - 2014

$ 1,459,155.00 2,538,735.00 2,509,512.50 2,622,300.00 2,734,545.00 4,829,470.00 4,332,025.00

Total Principal and Interest

$21,025,742.50

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1998, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 2000, $6,800,000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $285,725.77 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

- 15 -

PU1NAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 7: ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $226,462.89

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $13,767.88

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $45,495.00

Note 8: 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 te11ns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the perfo1111ance of routine Board operations. The ultimate disposition of these proceedings is not presently dete11ninable, but is not believed to be material to the general purpose financial statements.

Note 9: 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 ofGeorgia (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 ofAudits 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:

- 16 -

PUTNAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 9: RETIREMENT PLANS
Fiscal Year 2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,159,175.37 $1,151,151.31 $ 1,043,752.13

- 17 -

PUTNAM 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 Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

354,378.09 $

2,485.90

399.27

21,385.03 13,183.84

Total Assets

$

389,346.23 $ ======2==,4=8=5.=9.0....

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable



Total Liabilities

FUND EQUITY

Fund Balances Reserved For Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated

Total Fund Equity

$

3,034.70

4,614.25

- - - - - - $ _ __;2::,:,:.:.35::.:0:.:..0::.:0:;_

$

7,648.95 $ _ ____;;2=,3=5=0=00.;;_

$

135.90

$

21,385.03

13,183.84

347,128.41

0.00

$

381,697.28 $ _ _ _ _1:.:3=5-:.:.90.:::...

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
- 18 -

$

389,346.23 $ =====2..!.,4=8=5.=9=0

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

1,873.36 $

358,737.35 $

300,532.78

153,522.25

153,921.52

345,093.38

21,385.03 13,183.84

19,572.44 11,400.76

$

155,395.61 $

547,227.74 $ ==6=7=6=,5=9=9=36=

$

186,601.90

$

24,482.89 $

27,517.59

42,363.04

110,725.99

115,340.24

124,222.66

20,186.73

22,536.73

20,028.00

$

155,395.61 $

165,394.56 $ _ _3.:;;.;7~3=,2;.;.1=5.;;..60"-



$

3,467.57

$

135.90

$ -----"-0.=0.;::_0

$

0.00 $

21,385.03 13,183.84

19,572.44 11,400.76

347,128.41

268,942.99

381,833.18 $ --=30;;.;;3...,;,3~8=3..;...76;;_

$

155,395.61 $

547,227.74 $ ===67.,.6..,.5..,,.9=9=36=

- 19 -

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

REVENUES

State Funds Federal Funds Other Funds

Total Revenues

EXPENDITURES

Current

Instruction



Support Services

Pupil Services

Improvement of Instructional Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plant

Student Transportation Services

Other Support Services

Food Services Operation

Capital Outlay



Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES

Operating Transfers In

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

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

76,360.00 $

122,141.76

723,018.38

253,334.32

$ 1,052,712.70 $ _ _.;.:12=2:.,.1,;_:4..;,.1;.;.,7~6

$

119,629.86

$

974,527.28

2,376.00

$

974,527.28 $ _ _.:,:12=2:.r.:,0:.:;0.=.;5-~86=-

$

78,185.42 $

135.90

$

78,185.42 $

299,916.19

1,812.59 1,783.08

135.90 0.00

FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
- 20-

$

381,697.28 $ ====1=3=5=90=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

198,501.76 $

220,732.07

$ 1,697,405.55

2,420,423.93

2,289,493.11

854.06

254,188.38 '

.259,961.35

$ 1,698,259.61 $ 2,873,114.07 $ 2,770,186.53



$

998,431.58 $ 1,118,061.44 $

984,274.70

158,465.19 24,517.23 279,591.40
550.00 62,360.24 100,536.69 11,874.36 14,176.90 51,223.59

158,465.19 24,517.23
279,591.40
550.00 62,360.24 100,536.69 11,874.36 988,704.18 53,599.59

218,269.26 11,254.39
219,324.91 3,021.88
96,560.92 103,529.86
12,629.58 1,101,553.14
54,982.85

$ 1,701,727.18 $ 2,798,260.32 $ 2,805,401.49

$

-3,467.57 $

74,853.75 $

-35,214.96

3,834.19

$

-3,467.57 $

74,853.75 $

-31,380.77

3,467.57

303,383.76

331,611.42

1,812.59 1,783.08

2,638.30 514.81

$

0.00 $

381,833.18 $ ==3=0=3=,3=83==76=

- 21 -

PUTNAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

18,840.79 $

15,450.00 $

34,290.79 $

301,971.91

13,142.37

269.07

13 411.44

25,632.86

Total Assets

$

31,983.16 $

15 719.07 $

47,702.23 $

327,604.77

-----

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undesignated

31,983.16 $
0.00

15,719.07 $
0.00

47,702.23 $
0.00

327,604.77 0.00

Total Fund Equity $

31,983.16 $

15,719.07 $

47,702.23

$ --

-

3

2- -7-, 6-

0- -4-. 7

7 -



See notes to the general purpose financial statements.
-22-

PUTNAM COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "H"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$ 487,216.85 $ 468,480.56

269.07 $

487,485.92 $ 468,480.56

617,137.64 477 774.24

Total Revenues

$ 955,697.41 $

269.07 $

955,966.48 $ 1,094,911.88

EXPENDITURES

Debt Service

Principal



Interest

Paying Agent Fees

$ 320,000.00 $ 927,720.00 3,599.02

0.00 $

320,000.00 $ 927,720.00
3,599.02

285,000.00 971,169.58
4,349.96

Total Expenditures Excess of Revenues over (under) Expenditures

$ 1,251 1319.02 $ _ _ _ _o=.o::;.;:o;_ $

$ -295,621.61 $

269.07 $

1,251 1319.02 $ -295,352.54 $

1,260,519.54 -165,607.66

OTHER FINANCING SOURCES

Accrued Interest on Bonds Sold

15,450.00

15,450.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

-295,621.61 $

15,719.07 $ -279,902.54 $ -165,607 .66

FUND BALANCE JULY 1

327,604.77

0.00

327,604.77

493,212.43

FUND BALANCE JUNE 30

$

31.983.16 $

15.719.07 $

47.702.23 $ ___32_7,.,6_04_._77_



See notes to the general purpose financial statements.

- 23-

PUTNAM 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 Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster

CFDA NUMBER
10.553 10.555

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds

10.550 10.665

Total U.S. Department of Agriculture

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement
Total Special Education Cluster

84.027 84.173 84.173

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies
Goals 2000
State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States
High School Program Basic Grant
Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education

84.010
84.281 84.298 84.276 84.186
84.048
84.011

Total U. S. Department of Education

Health and Human Services, U. S. Department of Direct Head Start Program

93.600

PASSTHROUGH
ENTITY ID
NUMBER

NIA

$

NIA

$

NIA NIA
$

NIA $ NIA NIA
$
NIA
NIA
NIA NIA
NIA NIA
NIA
$
$

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

152,754.47 523,717.18 $
676,471.65 $

(2)
927,980.55 (3)
927,980.55

46,546.73

46,546.73

26,555.58

(4)

749,573.96 $ _ _.::,97'-4"",5:.:2:.:..,7:.;2;:_8

243,951.34 $ 11,659.60 6,897.10
262,508.04 $

243,951.34 11,659.60 6,897.10
262,508.04

525,002.93 11,032.22 17,935.23
9,252.12
31,421.01

525,002.93 11,032.22 17,935.23 3,467.57 9,252.12
31,421.01

9,885.01

9,885.01

867,036.56 $ _ _.,::B.:..;70:;i;,50~4;..:.1.::_3

830,368.99 $

831,223.05 (3)

Total Federal Financial Assistance
NIA = Not Available

-24-

$ 2,446,979.51 $ ___2,,;:.67;,,;6.,2_54;;:.;.;46;;;.

PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000
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 in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Funds earned on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk ci in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Putnam County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

SCHEDULE "1"




See notes to the general purpose financial statements.

-25-

PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality Basic Education

General and Career Education Programs $ 5,822,320.00

Special Education Programs

1,571,171.00

Remedial Education Program

215,803.00

Media Center Programs

250,019.00

Staff Development Programs

70,099.00

Indirect Cost

1,590,248.00

Pupil Transportation

Regular

318,597.00

Bus Replacement

86,842.00

Limited English Speaking

25,895.00

Middle School Incentive Program

211,643.00

Special Instructional Assistance

69,733.00

In-School Suspension

70,452.00

Migrant Education

2,051.00

Counselors Grades 4 and 5

23,522.00

Technology Specialist Local Five Mill Share

28,842.00 -2,637,348.00

Food Services Vocational Education

$
6,247.00

Other State Programs

Alternative Program

48,025.00

At-Risk Summer School Program

17,342.79

Environmental Science Program Health Insurance

750.00 226,462.89

Mentor Teacher Program

-12,312.00

Preschool Handicapped Program

37,037.97

Teachers' Retirement

13,767.88

Year 2000 Project Funding

11,511.00

Lottery Programs

Assistive Technology

Computers in the Classroom

$ 5,822,320.00 1,571,171.00 215,803.00 250,019.00 70,099.00 1,590,248.00

76,360.00

318,597.00 86,842.00 25,895.00 211,643.00 69,733.00 70,452.00 2,051.00 23,522.00 28,842.00 -2,637,348.00 76,360.00 6,247.00

48,025.00 17,342.79
750.00 226,462.89 -12,312.00
37,037.97 13,767.88 11,511.00

7,497.00 50,468.76

7,497.00 50,468.76

Office of School Readiness Pre-Kindergarten Program

64,176.00

64,176.00

Office of Treasury and Fiscal Services Public School Employees Retirement

45,495.00

45,495.00

$ 8,114,216.53 $

198,501.76 $ 8,312,718.29

See notes to the general purpose financial statements. -26-

PUTNAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

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

1OOo/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

7,859,313.00 $ _ __;2::..::3:...;4.,_6;:,'-=2=3.;;.00;;:..

$

8,556,938.82

486,389.21 $ _ _ _4.:.:3:;.;:5;i.:3,;.;::;6_;4;.:;.9.;:.5

$

9,043,328.03

-60,763.59 $ _ _.,;;.8,=9=82=,5:...;6;...;.4;..;..4_;4

$

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

See notes to the general purpose financial statements. - 27 -

PUTNAM COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total K-3 Grades 4 - 5 (*) Grades 6 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) Sub-Total Regular Category VI (Gifted) (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM l*l
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

571,843.00

$

514,658.70 $

0.00

1,640,011.00

1,476,009.90

$ 2,211,854.00 90 $ 1,990,668.60 $

0.00

701,354.00 90

631,218.60

1,278,921.00 90

1, 151,028.90

818,999.00 90

737,099.10

311,103.00 90

279,992.70

500,089.00 90

450,080.10

$ 5,822,320.00

s_ _ _ _ $ 5,240,088.oo

.=,o;.:;.o~o

$ 1,491,128.00

$ 1,342,015.20 $

0.00

$ 1,491,128.00 90 $ 1,342,015.20 $

0.00

80,043.00 90

72,038.70

s 1,511,111.00

s s_ _ _ 1,414,053.90

__;o:..;.;.o=o

s

s 21s,803.oo 90

s_ _ _ 194,222.10

__;o:..;.;.o=o

s 1,609,294.oo

s s_ _ _ 6,848,364.60

__;o:..;.;.o=o

$

200,974.00 90 $

180,876.60 $

0.00

49,045.00 100

49,045.00

$

250,019.00

$

229,921.60 $ _ _ _--=0.:.:.0"'-0

Total Fourteen Weighted and Media Center Programs $ 7,859,313.00

s_ _ _ $ 1,018,2as.20

__,o;.;;.o=o

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

22,731.00

$

22,731.00 $

0.00

47,368.00

47,368.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

70,099.00 100 $

70,099.00 $

0.00

------- -----

--

See notes to the general purpose financial statements.

28

SCHEDULE "4"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

514,658.70 $

612,896.76 $

21,692.40 $

634,589.16

1,476,009.90

1,416,776.24

60,281.01

1,477,057.25

$ 1,990,668.60 $

2,029,673.00 $

81,973.41 $ 2, 111,646.41 $

0.00

631,218.60

902,226.80

33,431.51

935,658.31

0.00

1,151,028.90

1,469,221.09

94,808.56

1,564,029.65

0.00



737,099.10

1,052,193.28

72,418.47

1,124,611.75

0.00

279,992.70

391,452.36

10,553.99

402,006.35

0.00

450,080.10

480,127.64

105,487.81

585,615.45

0.00

$ 5,240,088.00 $ 6,324,894.17 $

398,673.75 $ 6,723,567.92

$ 1,342,015.20
$


$ 1,342,015.20 $

72,038.70

$ 1,414,053.90 $

$

194,222.70 $

$ 6,848,364.60 $

122,335.90 $ 457,401.25 1,020,705.31
1,600,442.46 $
124,902.57
1,725,345.03 $
246,941.29 $
8,297,180.49 $

728.00 $ 9,449.43 25,592.44

123,063.90 466,850.68 1,046,297.75

35,769.87 $ 1,636,212.33

921.33

125,823.90

36,691.20 $ 1,762,036.23

0.00 $ _ __;;;2;...;.46;;..:.,9;;.4'""'1"".2"'-9

435,364.95 $ 8,732,545.44

0.00 0.00
0.00

$

180,876.60 $

259,758.33

s

259,758.33

0.00

49,045.00 - - - - - - $ _ _ _5_1,0_2_4_.2_6

51,024.26

0.00

$

229,921.60 $

259,758.33 $

-------- 51,024.26 $

310,782.59

$ 7,078,286.20 $

--

--~---

8,556,938.82 $

- - - - - - - - 486,389.21 $ 9,043,328.03 $

0.00

$

22,731.00

47,368.00

$

70,099.00

$

70,253.14 $

70,253.14

$

70,253.14 $

10,253.14 s_ _ _ _ _ _ _o_.00

111111

29

SECTION IT COMPLIANCE AND INTERNAL CONfROL REPORTS

RussELI. W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wast1ingtl>11 Street. S.\V.. Suite 214 Atlanta. Gel>rgia 3()334-84()()
April3,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Putnam County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Putnam County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated April 3, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.

Compliance
As part of obtaining reasonable assurance about whether Putnam County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detetmination offinancial 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and perfo11ning our audit, we considered Putnam County Board ofEducation's internal control over financial reporting in order to dete1n1ine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control
2000YB-40

over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Putnam County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7171-00-04.
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 no1111al course of perfo11ning their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the info11nation and use of management, members of the Putnam County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,


RWH:jb 2000YB-40

- l,u ~
R ssell W. Hinton State Auditor



RussE1.1. W. H1NT<>N
STATE AUDITOR
I404l 656-217 4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wasl1i11gt(i11 Street. S.W.. Suite 214 Atlanta. Get>rgia 3()334-84()()
April 3, 2001

Honorable Roy E. Barnes, Governor

Members of the General Assembly

Members of the State Board of Education

and



Superintendent and Members of the

Putnam 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 ofPutnam County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Putnam County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofPutnam County Board ofEducation's management. Our responsibility is to express an opinion on Putnam County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n 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 Putnam County Board ofEducation's compliance with those requireinents 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 dete11nination on Putnam County Board of Education's compliance with those requirements.

2000SA-40

In our opinion, the Putnam County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Putnam 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 perfu1n1ing our audit, we considered Putnam County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to dete11nine 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.
We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Putnam County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-7171-00-01 and FA-7171-00-02.
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 of risk that noncompliance with the applicable requirements oflaws, 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 no11nal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the inter11al control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe none of the reportable conditions described above is a material weakness.
This report is intended solely for the information and use of management, members ofthe Putnam 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.
.---R-.e.spectfully submitted,

RWH:jb 2000SA-40

sell W. Hinton State Auditor

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

PUTNAM 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-7171-97-01 FS-7171-98-01 FS-7171-98-03 FS-7171-99-01 FS-71 71-99-02

Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $14,088.88 Finding Control Number: FS-7171-98-01

Additional info1mation was provided to the Georgia Department ofEducation concerning the distribution of salaries and benefits to the various QBE programs. Based on this info11nation, the Department decided that $14,088.88 should be refunded; $12,555.44 for the High School Laboratories Program and $1,533.44 for the StaffDevelopment Program. This amount will be added to the Local Five Mill Share in a subsequent fiscal year.

GENERAL LEDGER



Outstanding Loan

Finding Control Number: FS-7171-99-01

The loan has now been paid off, but it was paid after December 31, 1999.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7171-99-02

This finding cannot be resolved at this time due to the difficulty ofdete1n1ining the costs of the old fixed assets and infrastructure already in place.

SECTIONN FINDINGS AND QUESTIONED COSTS


PUTNAM 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 Putnam County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Putnam County Board ofEducation disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Putnam 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 Maior Programs The audit report for the Putnam County Board ofEducation disclosed reportable conditions in internal control over major programs for the following compliance requirement.
Allowable Costs/Cost Principles
None ofthe reportable conditions described above are considered to be material weaknesses.
5. Type of Report Issued on Compliance for Maior Programs The auditor's opinion on the Putnam County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Putnam County Board of Education's audit disclosed audit findings required to be reported by section .510(a) of 0MB Circular A-133. These audit findings are included in section IV of this report.
7. Maior Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act-Title 1 - Grants to Local Educational Agencies 93.600 Head Start Program
8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00.
- 1-

PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Putnam County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Nonmaterial Noncompliance Finding Control Number: FS-7171-00-01
As of June 30, 2000, the Putnam County Board of Education bank balances were not fully collateralized as provided for in the Official Code ofGeorgia Annotated Section 45-8-12, that states in part:
''The collecting officer or officer holding public funds may not have on deposit at any time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given bond to the public body as set forth in this code section. The aggregate ofthe face value ofsuch 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 of the amount of deposit insurance''.
This noncompliance occurred because management neglected to monitor bank balance collateral. To ensure compliance with state law, the Board should implement procedures to monitor the collateralization of bank balances at all times.
EXPENDITURES/LIABILITIES/DISBURSEMENTS Unearned Lottery Funds Nonmaterial Noncompliance Amount: $135.90 Finding Control Number: FS-7171-00-02
The Putnam County Board ofEducation received $7,497.00 in Assistive Technology Lottery Funds and expended $7,361.10 during the year, leaving an unearned balance at June 30, 2000 of$135.90. This balance was the result of the Board's failure to expend funds by year end. Accordingly, the Board should refund unearned lottery funds in the amount of$135.90 to the Georgia Department of Education.
-2-

PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-7171-00-03
On December 31, 1999, the General Fund had an unpaid loan outstanding in the amount of $37,064.19. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia provides, in part, as follows:
''The governing authority of any county, municipality or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses...Such loans shall be payable on or before December 31 of the calendar in which such loan is made ... "
This condition occurred because the Board did not have adequate cash available to retire the loan on December 31, 1999 as required. Repayment of loans should be made in confo11nity with constitutional limitations.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7171-00-04
The Putnam County Board of Education 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 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 and deletions to the General Fixed Asset Account Group.
-3-

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

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures Reportable Condition Nonrnaterial Noncompliance U.S. Department of Education Through Georgia Department of Education Amount: $2,097.02 Finding Control Number: FA-7171-00-.01

The Putnam County Board of Education expended $2,097.02 from Elementary and Secondary Education Act - Title I Program (CFDA 84.010) for admission passes to Carowinds and Ghost Town in the Sky amusement parks. These expenditures were not for educational purposes and were not in accordance with Office of Management and Budget Circular A-87 attachment B item number 18 which states in part:

''Costs ofentertainment, including amusement, diversion, and social activities, and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities) are unallowable.''

These expenditures occurred because the Board misinterpreted the regulations governing Title I expenditures. The Georgia Department of Education should review this matter to dete11nine if a refund is appropriate.

ALLOWABLE COSTS/COST PRINCIPLES

Unallowable Expenditures

Reportable Condition

Nonrnaterial Noncompliance



U.S. Department ofHealth and Human Services

Amount: $5,169.00

Finding Control Number: FA-7171-00-02

The Putnam County Board ofEducation expended $5,169.00 from Head Start program (CFDANo. 93.600) for a lawn tractor and weed trimmer. These expenditures were not for educational purposes and were not in accordance with 45 CFR (Code of Federal Regulations) Chapter XIII, Section 1304.60(b)(l)(i) which states:

''Head Start equipment must be supportive ofthe specific educational objectives ofthe local program.''

-4-

PUTNAM COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS ALLOWABLE COSTS/COST PRINCIPLES Unallowable Expenditures Reportable Condition U. S. Department of Health and Human Services Amount: $5,169.00 Finding Control Number: FA-7171-00-02 These expenditures occurred because the Board misinterpreted the regulations governing Head Start expenditures. The U.S. Department of Health and Human Services should review this matter to dete11nine if a refund is appropriate.
-5-