Quitman County Board of Education, Georgetown, 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



I
QUITMAN COUNTY BOARD OF EDUCATION
GEORGETOWN, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

Page

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITTONAL FINANCIAL INFORMATION

COMBINING FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

.

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29



QUITMAN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

31

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

32

ANALYSIS OF .LI..1 .1.u EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

33

5

BY PROGRAM

34

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 ACCORDANCE WITH GOVERNMENT AUDfl'ING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 01\.IB CIRCULAR A-133

SECTION ID AUDfl'E'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


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'

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 21, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Quitman 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 Quitman 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 Quitman 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 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 perfu11n the audit to obtain reasonable assurance about whether the financial staternents 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 op1 n1 on.
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

* 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 confonn to generally accepted accounting principles.
* 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 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 Quitman County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo1nrity 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 21, 2001, on our consideration of the Quitman 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 perfo11ned 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 perfo1111ed for the purpose of fo11ning an opinion on the general purpose financial statements of the Quitman County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) 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 infu1n1ation 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 info1n1ation is fairly stated, in all
material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13A

A copy ofthis report has been filed as a pe1manent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
-----Respectfully submitted, .......

RWH:jb 2000ARL-13A

Rus ell W. Hinton State Auditor


COUNfY BOARD OF EDUCATION


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

ASSETS
Cash and Cash Equivalents
Investments
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 Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

286,978.97 $

31,790.40 $

337,918.49

300,000.00

100,099.55

231,707.51

63,643.82

30,021.79

768.07 515.34



Total Assets

$

818,686.48 $

96,717.63 $ ..,......,.4.;,;6.,;;8.;,0.;;;3;.;9=83=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds 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 For SPLOST Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

41,539.73 $

10,754.50

149,038.92

41,597.28

759.25

307.00

$

191,337.90 $ ----'5=2..a,6=58=.;..:78;;...

$

40,305.08

27,266.06

$

768.07

515.34

$

330,439.73

136,979.04

24,197.92 535,579.52

42,775.44

621.06

$

627,348.58 $

44,058.85 $ _ _4.:.:6:.:8i.:,0:.::;39:::.:.:a:83=--

Total Liabilities and Fund Equity

$

818,686.48 $

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

-2-

s_ _ 96,717.63

4_6..;8.,0.3.=9._83.,.

EXHIBIT "A"



DEBT SERVICE
FUND

$

15,169.05

8,886.61

9,034.88

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

671,856.91 $

697,888.34

408,986.16

34,471.90

334,408.00

318,346.43

$

33,090.54

768.07 515.34
33,090.54

529.51 186.14
9,933.70

2,266,909.46 26,800.05

2,266,909.46 26,800.05

2,320,066.30 52,116.15

$

33,090.54 $

2,326,800.05 $

3,743,334.53

$

-----

3,433,538.47
----

$

2,122.50

$

52,294.23

49,837.02

190,636.20

184,667.02

1,066.25

19,824.66

$

26,800.05

26,800.05

52,116.15

2,300,000.00

2,300,000.00

2,330,000.00

$ 2,326,800.05 $ 2,570,796.73 $ 2,638,567.35

$

33,090.54

0.00 $ _ _.=.;33=,0;.::9=0.=54-'-

$

40,305.08 $

44,030.81



2,796.42

33,090.54

9,933.70

27,266.06

20,496.44

768.07 515.34 330,439.73 136,979.04

529.51 186.14 355,000.81 104, 169.80

24,197.92 578,976.02

25,661.92 232,165.57

$ 1,172,537.80 $ _ _7;..a94a..=,9_._7_1_..;.;;12~

$

33,090.54 $

-

~

--------

2,326,800.05 $

3,743.334.53 $

-3-

QUITMAN 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 Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Accrued Interest on Bonds Sold Refunding Bond Issuance Cost 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

$ 1,403,842.38 $
838,150.38 32,654.80

250,425.72 345,219.23
15 709.41

$ 2,274I647.56 $ _ _.::.,.61'--'1.J.3:I:.:;54..:.:.=.36:;_

$ 1, 176,419.34 $
47,586.19 36,010.56 51,608.82 147,491.50 108,698.32 37,210.63 157,148.96 126,694.84
31.68 12,283.64

371,212.27
44,297.78 8,359.28 2,480.78 541.28
16,028.94 13,971.51
573.18 9,476.13 143,917.64

25,316.10 3,048.63

$ 1,929,549.21 $ ---=-61.:..:0;z.:,8:..:c5.:.:8.'"'"'79=-

$

345,098.35 $ _ _ __;4c,::.95:::;.:.::..57:,_

$
$ _ _ _-3...__,3_4_0__._4__2___

3,340.42

$

-3,340.42 $ -----=3.1.:3,4c,.:.0:::;.:.4.:.:2=-

$

341,757.93 $

285,590.65

3,835.99 39,655.10

238.56 329.20

FUND BALANCE JUNE 30

$

627,348.58 $ ___44;,,;,,i,;;,o_5_a._a5_

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 30, 2000

JUNE 30, 1999

$ 1,654,268.10 $ 1,425,014.98

345,219.23

424,605.53

$

27,996.22 $ . 163,813.92

1,029,960.52

881,718.08

4 816.99

125,453.52

178,634.72

194,125.21

$

32,813.21 $

289,267.44 $ 3,208,082.57 $ 2,925,463.80

$ 1,547,631.61 $ 1,488,231.84

$

24,565.05

91,883.97 44,369.84 54,089.60 148,032.78 108,698.32 37,210.63 173,177.90 140,666.35
604.86 21,759.77 143,917.64 24,565.05

123,890.93 57,957.64 45,173.23 149,514.27 103,508.01 34,052.78 145,708.79 121,478.26
21,524.28 146,400.37 59,531.87

$

30,000.00

236,045.00

65.60

55,316.10 239,093.63
65.60

53,916.96 241,902.77
723.28

$

24,565.05 $

266,110.60 $ 2,831,083.65 $ 2,793,515.28

$

8,248.16 $

23,156.84 $

376,998.92 $ _____1_3_.1.,,.;;..94=8=.5=-2

$

8,248.16 $

459,791.67

$
$
23,156.84 $ 9,933.70

$
3,340.42 -3,340.42

6,073.18 -2,855.28

0.00 $ _____3..._,2_1_7__..a.;90a..

376,998.92 $ 794,971.12

135,166.42 661,791.67

238.56 329.20

-1,957.13 -29.84

$

468,039.83 $ 33,090.54 $ 1,172,537.80' $ ___19...4...,9.._1_1._12_

-5-

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

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 1,290,551.00 $ 1,403,842.38

780,988.19

838,150.38 32,654.80

Total Revenues

$ 2,071,539.19 $ 2,274,647.56

EXPENDITURES

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

$ 1,282,693.40 $ 1,176,419.34

56,690.64 34,727.12 52,661.91 140,127.72 102,113.70 36,351.65 66,986.70 135,143.96
12,000.00 155.00

47,586.19 36,010.56 51,608.82 147,491.50 108,698.32 37,210.63 157,148.96 126,694.84
31.68 12,283.64
28,364.73

Total Expenditures

$ 1,919,651.80 $ 1,929,549.21

Excess of Revenues over (under) Expenditures

$ 151,887.39 $ 345,098.35

OTHER FINANCING SOURCES {USES\

Other Sources Other Uses

$ _ ___,a-3a.i.:,34:..:.0=.4..;.:2,_

Total Other Financing Sources (Uses)

S _.......a-3a.i.:,3:..:.40=.4..;.:2,_

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

151,887.39 $

341,757.93

FUND BALANCE JULY 1. 1999

267,471.24

285,590.65

Adjustments

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 235,608.21 $ 250,425.72

356,568.24

345,219.23

24,092.04

15709.41

$ 616,268.49 $ 611,354.36

$ 353,428.26 $ 371,212.27

37,336.27 11,623.62
2,273.97

44,297.78 8,359.28 2,480.78 541.28

3,064.38 21,142.95 13,064.00
700.00 11,702.88 154,741.66

16,028.94 13,971.51
573.18 9,476.13 143,917.64

$ 609,077.99 $ 610,858.79

$

7,190.50 $ _ _ _4=9=5-a:.57._

$

3,340.42

$ _ _.:,3,c=.34.;.:0:.:..4.:.:2=--

$

7,190.50 $

39,986.94

-12,119.54

3,835.99 38,939.45

FUND BALANCE JUNE 30. 2000

$ 419.358.63 $ 627.348.58

$ 35.057.90 $ ___42_7_7_5._44_

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

-7-

QUITMAN 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 Quitman 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 confo11n 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 confo1m 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.

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QUITMAN.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-te11n principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
'
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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 dete111iined 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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly

-9-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share ofthese contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
. BUDGET
The Quitman County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the 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:



- 10 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

Special Revenue
Fund $ 39,655.10
-529.51 -186.14 .

Fund Balance July 1, 1999 (Budget Basis)

$ 38,939.45

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JUNE 30, 2000 (Budget Basis)
CASH AND CASH EQUIVALENTS

3,835.99 $ 42,775.44

C01\1POSITION 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.
INVESTMENTS

C01\1POSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The.Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

(1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

- 11 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Quitman County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 10, 1999 (levy date). Taxes were due on January 10, 2000. 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 Quitman 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 of taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Quitman County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations
SALES TAXES

17.62 mills

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
$172,386.22 and was recorded in the Capital Projects and Debt Service Funds. The State will tt:1n1inate collection ofthis tax once an additional $1,417,588.07 has been collected or on December 31, 2002, whichever occurs first.

- 12 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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-Te1111 Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types 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.
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 confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.

- 13 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS
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 of the face value of such surety bond and the market value of securities 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 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 ofthe State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe 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 of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte1mediate 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 $1,299,280.32. The amounts ofthe total bank balances are
classified into three categories of credit risk:

- 14-

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000




Note 2: DEPOSITS AND INVESTMENTS

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

$ 200,000.00

2

1,099,280.32

3

0.00

Total

CATEGORIZATION OF INVES'IMENTS At June 30, 2000, the fair value of the Board's total investments was $8,986.16 and this entire amount consisted ofU. S. Government Securities which was insured or registered, or securities held by the Board or the Board's agent in the Board's name.

Note 3: NON-MONETARY TRANSACTIONS

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

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.

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.



- 15 -


Q

COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 4: RISK MANAGEMENT

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. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The Board accounts for claims 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 of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

$

0.00 $

0.00 $

0.00 $_ ____,O=.O=O

$

0.00 $

1,464.00 $

1,464.00 $_ _ _..,0.:.,:.0=0

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

Position Covered
Superintendent Principal Bookkeeper
Note 5: OPERATING LEASES

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

Quitman County Board of Education has entered into various leases as lessee for portable classrooms and copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $20,600.00. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2001

$ 8,980.00

- 16 -

0

COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 6: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Quitman County Board of Education has entered into a lease agreement as lessee for the purchase of buses. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1994

6.00% - 6.90%

General Government - Refunding - Series 1998 4.05% - 4.875%

$ 150,000.00 2,150,000.00

$ 2,300,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

Balance July 1, 1999

Capital Leases

General Obligation
Bonds

Total

$ 52,116.15 $2,330,000.00 $ 2,382,116.15

Deductions Debt Retired

25,316.10

. 30,000.00

55,316.10

Balance June 30, 2000

$.=26.800.05 $ 2,300,000.00 $ 2,326,800.05

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

- 17 -


QUITMAN COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2000

EXHIBIT "D"

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016 - 2020

$ 28,367.73 $ 269,635.00 $ 298,002.73

282,925.00

282,925.00

275,412.50

275,412.50

278,005.00

278,005.00

285,297.50

285,297.50

924,665.00

924,665.00

1,064,166.26 1,064,166.26

944,812.52

944,812.52

Total Principal and Interest $ 28,367.73 $ 4.324.918.78 $ 4.353.286.51

Deduct: Imputed Interest

1,567.68

Net Present Value of Future Minimum Lease Payments $ 26.800.05

Note 7: 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, $1,835,000.00 of bonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $43,047.70 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $35,921.70

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 $7,126.00

- 18 -

QUITMAN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 9: CONTINGENT LIABILITIES

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

Note 10: 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 of the 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 einployer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 136,939.22 $ 142,109.95 $ 133,598.45

- 19-

QUITMAN 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

$

46,632.70 $

15,157.69

855.00

7,290.50

768.07 515.34

Total Assets

$

48,771.11 $ ===2=2=,4=4=8..1..9=

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 Inventories Food Donated Commodities Purchased Food Unreserved Un designated
Total Fund Equity

$

926.14 $

4,718.27

3,786.12

17,422.92

307.00

$

4,712.26 $ _ _...;;2=2.r...;,4~48.;;..;,.;;.;19;_

$

768.07

515.34

42,775.44 $ _ _ _ _0.;;..;..;;.;00;_

$

44,058.85 $ _ _ _ _0;::.:.:.;00::...

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
- 20-

$

48 771.11 $ ===2==2-,4~48;;,;=19=

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

61,790.39 $

74,887.65

$

55,498.32

63,643.82

79,685.11

768.07 515.34

529.51 186.14

$

55,498.32 $

126,717.62 $ ===15=5=,2=8=8.=41=



$

29,999.99 $

29,999.99 $

49,490.01

5,110.09

10,754.50

13,871.42

20,388.24

41,597.28

33,128.96

307.00

19,142.92

'

$

55,498.32 $

82,658.77 $ ___11_5.._,6_3_3._31_



$

2,796.42

$

$ _ _ _ _o=.o=oa....

$

0.00 $

768.07. 515.34

529.51 186.14

42,775.44

36,143.03

44,058.85 $ ____3;.;c9,.1.;;,s..;.55=..;..1o"--

$

55,498.32 $

126,717.62 $ ====15...,5=,2=88==41=

- 21 -

QUITMAN 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 Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
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

$

9,548.00 $

225,902.72

119,846.05

15,709.41

$

145,103.46 $ - - -2-2-5,9'0-2.-72-

$

159,844.55

44,297.78

15,973.20 715.04 573.18

$ _ _1_3_8.._,4_7_1._05_

5,039.03

$

138,471.05 $ _ _2=2'-'-6.._,44__2_._78'---

$

6,632.41 $

-540.06

$

6,632.41 $

36,858.68

238.56 329.20

540.06
0.00 0.00

FUND BALANCE JUNE 30
See notes to the general purpose financial statements.
-22-

$

44,058.85 $ = = = = =0.0=0

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

14,975.00 $

250,425.72 $

144,180.12

225,373.18

345,219.23

424,605.53

15,709.41

18,426.41

$

240,348.18 $

611,354.36 $ _ _5.;;..;8_7=,2_12='.;;..0_6_

$

211,367.72 $

371,212.27 $

310,386.56

8,359.28 2,480.78
541.28 55.74 13,256.47
9,476.13 407.56

44,297.78 8,359.28 2,480.78 541.28 16,028.94 13,971.51 573.18 9,476.13
143,917.64

68,918.73 14,581.47
1,819.80 560.47
25,062.84 9,516.78
9,240.64 146.142.84

$

245.944.96 $

610,858.79 $ _ _.:;.;58;;.;;6=2=3.:;.;0;.;.,13"-

'

$

-5,596.78 $

495.57 $

981.93

2,800.36

3,340.42

$

-2,796.42 $

3,835.99 $

981.93

2,796.42

39,655.10

40,660.14

238.56 329;20

-1,957.13 -29.84

$

0.00 $

44,058.85 $ ===3=9=,6=5=5==10.,...

- 23-

QUITMAN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Purposes of Bond Issue For SPLOST Projects
Unreserved Un designated
Total Fund Equity

REGULAR

BOND PROCEEDS

$

621.06 $

230,340.18

100,099.55

$

621.06 $ ==3=3=0=,4=3=9=73=

$

330,439.73

$ _ _ _...;;6=2..;.;1'.;;;...06;;._

0.00



$

621.06 $ ===33=0=,4=39==73....

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999



$

106,957.25 $

337,918.49 $

405,736.66

100,099.55

33,228.04

30,021.79

30,021.79

20,826.97

$

136,979.04 $

468,039.83 $ ==4=5=9..,.7..9...1.....6..7=

$

330,439.73 $

355,000.81

$

136,979.04

136,979.04

104,169.80

0.00

621.06

621.06

$

136,979.04 $

468,039.83 $ ==4=5=9..,.7..9..=1..6..7=



-25 -

QUITMAN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2000



REVENUES

REGULAR

BOND
PROCEEDS

Taxes Other Funds
Total Revenues
EXPENDITURES

$

0.00

- - - - - - $ - - - - -3.9-7

$

0.00 $ - - - - -3.9-7

Capital Outlay Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES (USES)

$

0.00 $ _ _...;;2"-'4-'-",5..;;;.65;;...;.;;..;05;;_

$

___ __ 0.00 $

24_,.5_65.05

$

0.00 $ _ _..;~2"-'4.,_;,5..;;.6.;.;1...;;.08;;;_

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

$

0.00 $

-24,561.08

FUND BALANCE JULY 1

621.06

355,000.81

FUND BALANCE JUNE 30


$

621.06 $ ===33=0=,4=3=9=7=3

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

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

27,996.22 $

27,996.22 $

156,223.11

4,813.02

4,816.99

32,847.99

$

32,809.24 $

32,813.21 $ _ _..;.;18=9=o,:..;..1..;.;1.'"'"1o;;_

$

35,444.22

$

0.00 $ _ _....;2::..:4;.i.:,5;.;:;6.=.:5.'-=-05=-

24,087.65

$

0.00 $

24,565.05 $ _ __:5;.;:;9.i5.:,::.31.:.:..8:::.:7~

$

32,809.24 $

8,248. 16 $ _ _.;.:12:.:9;.i.:,5;.;:;3.=.:9=23=-

$

31,785.83

-31,785.83

$ _ _ _ _,::.:0-:.:.;00=--

$

32,809.24 $

8,248.16 $

129,539.23

104,169.80

459,791.67

330,252.44

$

136,979.04 $

468,039.83 $

459,791.67

-27 -

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

EXHIBIT "I"


ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2000 JUNE 30, 1999

$

669.47 $

14,499.58 $

15,169.05

8,886.61

8,886.61 $

1,243.86

5,227.79

3,807.09

9,034.88

10,812.34

Total Assets

$

14,783.87 $

18,306.67 $

33,090.54 $ =-==1=2..,,0=56=.2=0=

LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undesignated

Total Fund Equity

$

14,783.87 $ 0.00
14,783.87 $

$ ---=2,_,1,.:22:.:.:;:50~

18,306.67 $ 0.00
18,306.67 $

33,090.54 $

9,933.70

0.00

0.00

33,090.54 $ _ _.=a9,.;:;,9,aa;33:.:..7.:..:0=-

Total Liabilities and Fund Equity $

14,783.87 $

18,306.67 $

33,090.54 $ _,.....,;1;,;;;21,,.,0,.;,56=.2=0=

See notes to the general purpose financial statements.

-28-

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

EXHIBIT "J"

'
REVENUES

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 301 1999

Taxes Other Funds
Total Revenues
EXPENDITURES

$

19,423.92 $

144,390.00 $

163,813.92 $

72,226.95

68,465.62

56,987.90

125,453.52

126,321.83

$

87,889.54 $

201,3TT.90 $

289,267.44 $ _ __,;.19:;.:8;.r.;,54'--'-"'8."-78;:;....

Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out

$

10,000.00 $

72,973.77

65.60

$

83,039.37 $

$

4 850.17 $

.


Total Other Financing Sources (Uses)

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $
FUND BALANCE JULY 1

4,850.17 $ 9,933.70

20,000.00 $ 163,071.23 183,071.23 $ 18,306.67 $
18,306.67 $ 0.00

30,000.00 $ 236,045.00
65.60

30,000.00 237,455.00
723.28

266,110.60 $ _ _.::;26==8"'-1,:...:.7=:8:28:::....

23,156.84 $ _ _-6=9=,6=2=9-=50;:;....

$

6,073.18

-2,855.28

$ _ _....;3:;,;,2::.;1:...:.7=.9"'-0

23,156.84 $ 9,933.70

-66,411.60 76,345.30

FUND BALANCE JUNE 30

$

14.783.87 $

18.306.67 $

33.090.54 $ _ _ _9,._93_3_.7_0

See notes to the general purpose financial statements.

-29-

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.555

NIA $ N/A

33,126.27 82,558.80 $

$ 115,685.07 $

(2)
134,310.07 (3)
134,310.07

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture

10.550

N/A

4,160.98

4,160.98

$ 119,846.05 $ _ _.;.1=.;38:.,_,4.;.a7.;.1;.:;.0.::.5

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 Grant
Total Special Education Cluster

84.027 84.173 84.173

N/A $ N/A NIA
$

39,612.79 $ 17,738.06
757.43
58,108.28 $

42,250.29 (3) 17,738.06
757.43
60,745.78

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Goals2000 State and Local Education Systemic Improvement Grants
Total U.S. Department of Education

84.010 84.276

NIA

141.084.78

141,084.78

NIA

26,180.12

29,139.40 (3)

$ 225,373.18 $ _ _.:2::;30::.,.,9:;6:.:9"'.96:.::..

Total Federal Financial Assistance

$ 345,219.23 $ ___36_9.,,_44_1._0.;,.1

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary _ assistance for donated commodities received and/or consumed by the system during the 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.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Quitman 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.

See notes to the general purpose financial statements.

-30



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

SCHEDULE "2"


AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grant

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND


FUND

$

48,750.00

$

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 Sparsity Grant Special Instructional Assistance . In-School Suspension Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant

Food Services Other State Programs
Health Insurance Preschool Handicapped Program Lottery Programs Assistive Technology Computers in the Classroom

642,062.00 123,454.00
63,588.00 30,774.00
6,905.00 233,947.00
84,200.00 24,639.00 120,323.00 29,297.75
4,810.00 4,175.00 28,842.00 -182,069.00 -125,414.00 145,309.00 67,130.00
$
35,921.70 10,071.93

9,548.00
7,290.50 52,409.51

Office of School Readiness Pre-Kindergarten Program

166,202.71

Office of Treasury and Fiscal Services Public School Employees Retirement

7,126.00

CONTRACT Education, Georgia Department of Reading First Program

14,975.00

TOTAL
48,750.00
642,062.00 123,454.00
63,588.00 30,774.00
6,905.00 233,947.00
84,200.00 24,639.00 120,323.00 29,297.75
4,810.00 4,175.00 28,842.00 -182,069.00 -125,414.00 145,309.00 67,130.00 9,548.00
35,921.70 10,071.93
7,290.50 52,409.51
166,202.71
7,126.00
14,975.00

$ 1,403,842.38 $

250,425.72 $ 1,654,268.10

See notes to the general purpose financial statements. -31 -

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAA PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

Removal and excavation of materials from an uncharted drain field located within the building and parking perimeter of the new Quitman County Elementary School construction site $

20,000.00 $

17,468.75

$

17,468.75

Asphalt paving on the new Quitman County Elementary construction site

130,000.00

89,715.00

89,715.00

Repayment of principal and interest on school district's series 1994 bonds maturing February 1, 2004 and thereafter

1,650,000.00

__ __ 1,650,000.00 $

...1.;8.._3__,0._ 71.23

184,155.43

$ 1,800,000.00 $ 1,757,183.75 $

183,071.23 $ =====29..,1.,,.,3..3...,9=.1=8

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Quitman County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.
(4) A portion of the Series 1994 Bonds were retired through the sale of Series 1998 Refunding Bond Issue. The Board will utilize the SPLOST proceeds budgeted for this project, plus any excess SPLOST proceeds to retire the Series 1998 Refunding Bond Issue.

See notes to the general purpose financial statements.

- 32-

QUITMAN 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 (1) (2) Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

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

$

859,878.00 $ _ _ _1_6.,_,9_7_8._00_

$

895,954.63

23, 181.69 $ - - - -16-,99-8.8-4

$

919,136.32

-17, 157.11 $ _ _ _9_0_1.,_,9_7_9._2_1

Amount of Underexpenditure for Total Allotment

$

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

Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines .
.
(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.

See notes to the general purpose financial statements. - 33 -

QUITMAN 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 (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*) Category 111 (*) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM (*l Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

99,503.00

$

295,179.00

$

394,682.00 90 $

124,169.00 90

123,211.00 90

$ _ __;64:....:..=,2,.:;_06::.;;2""'.o;..;..o

$

89,552.70 $

0.00

265,661.10

355,213.80 $

0.00

111,752.10

110,889.90

577,855.ao $ _ _ ____;:o.:..::.o.::..o

$

123,454.00

$

111,108.60 $

0.00

$

123,454.00 90 $

111.1oa.so $ _ _ _ _.;;.o;.;;.o.::..o

$

63,588.00 90 $

57,229.20 $ _ _ ___::0::..:.0;::.0

$

829,104.00

$

746,193.60 $ _ _ ___::0::..:.0;.=..0

25,967.00 90 $

23,370.30 $

0.00

4,807.00 100

4,807.00

$

30,774.00

$

28,177.30 $ _ _ ___::0::..:.0;::_0

Total Fourteen Weighted and Media Center Programs $

859,878.00

$ -- -- .

774,370.90 - - - --- -

$

0.00

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

2,241.00

$

2,241.00 $

0.00

4,664.00

4,664.00

0.00

Total Staff Development Programs
(*) Identifies Fourteen Weighted Programs.
(1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines.

$

6,905.00 100 $

-6-,9-05-.-0-0 $

0.00

(2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines.


See notes to the general purpose financial statements.
- 34 -

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES (1) (2)

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

89,552.70 $

102,400.77 $

1,324.23 $

103,725.00



265,661.10

236,421.50

7,171.94

243,593.44

$

355,213.80 $

338,822.27 $

8,496.17 $

347,318.44 $

111,752.10

123,730.33

2,309.27

126,039.60

110,889.90

136,303.18

2,475.56

138,778.74

$

577,855.80 $

598,855.78 $

13,281.00 $ _ ___;:6;_;.1::.,2,..;.;13;..;:;6.;.7;..:;..8

7,895.36 0.00 0.00

$

111,108.60

$

- - - - - $ ____1.;.30.;.a.;.;66;.;;6.;.;.4.;.0

33.63 $ 2,997.91

33.63 133,664.31

$

111,108.60 $

130,666.40 $

- - - - - 3,031.54 $

133,697.94

0.00

$

57,229.20 $

124,684.19 $

686.30 $ _ _1;;;;2;.;;.5,:.;;.37_0;.;..4;.;;.9

0.00

$

746,193.60 $

854,206.37 $

-------- 16,998.84 $

871,205.21

$

23,370.30 $

41,748.26

$

41,748.26

0.00

4,807.00 - - - - - - - - - - $ _ __.;;;.6,:.;.18,;;;;2;;.;.;.8=5

6,182.85

0.00

$

28,177.30 $

41,748.26 $

___ _ 6,182.85 $

47,.9....3...1. .11

$

TT4,370.90 $

895,954.63 $

23,181.69 $

919, 136.32 $

-----

------

- - - - ------ - ,_

7,895.36

$

2,241.00

4,664.00

$ ====-=6-=,9=0=5.-0-0=

$

6,958.69 $

6,958.69

467.33

467.33

$

7,426.02 7,426.02 0.00 $

$

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

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

- 35


SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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 21, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Quitman 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 Quitman County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 21, 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 Quitman County Board of Education's financial statements are free of material misstatement, we perfu1n1ed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1n1ination 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 Quitman County Board ofEducation's inte111al control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40A

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 ourjudgment, could adversely affect Quitman 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-7181-00-02.
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 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 perfotming 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 info1111ation and use ofmanagement, members ofthe Quitman 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-40A

ell W. Hinton State Auditor




f G



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 21, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Quitman 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 Quitman 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. Quitman County Board ofEducation'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 Quitman County Board of Education's management. Our responsibility is to express an opinion on Quitman County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1111 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance require1nents refei1ed 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 Quitman County Board of Education's compliance with those requirements and perfo1ming 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 Quitman County Board ofEducation's compliance with those requirements.

2000SA-10A

In our opinion, the Quitman County Board ofEducation 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 Quitman 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 perfo1ming our audit, we considered Quitman 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 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.
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 no11nal course ofperfo11ni11g 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 info11nation and use ofmanagement, members ofthe Quitman 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

IADsell W. Hinton State Auditor

,
SECTION ill
AUlJfl'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

QUITMAN 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-7181-97-01 FS-7181-98-01 FS-7181-99-01 FS-7181-99-02

Previously Reported Corrective Action Implemented 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 Finding Control Number: FS-7181-99-01

The underexpenditure in the amount of $19,370.70 will be returned to the Georgia Department ofEducation through an increase in the Board's Local Five Mill Share for the QBE programs. The Quitman County Board ofEducation will spend the required amount for all allocated funds.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7181-99-02

Quitman County Board ofEducation will fully imple:rnent a General Fixed Assets Account Group as required by Governmental Accounting Standards Board Statement Number 34.

SECTION IV FINDINGS AND QUESTIONED COSTS

QUITMAN 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 Quitman 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 Quitman 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 Quitman County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Inte111al Control Over Major Programs

The audit report for the Quitman County Board ofEducation did not disclose any reportable .



conditions in internal control over major programs.



5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Quitman County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Quitman 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 Quitman County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.

- 1-

QUITMAN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $7,895.36 Finding Control Number: FS-7181-00-01
The Quitman County Board of Education reported to the Georgia Department of Education on DE for 0420 underexpenditures ofQuality Basic Education (QBE) funds of$7,895.36 for Grades K- 3 ofthe General and Career Education Programs. This underexpenditure occurred because the Board expended less that the minimum expenditure requirement for this QBE Program. These funds should be returned to the Georgia Office of Treasury and Fiscal Services.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7181-00-02
The Quitman County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fu1111al 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 Assets Account Group.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

-2 -