Audit report, Randolph County Board of Education, Cuthbert, Georgia, year ended June 30, 1998

AUDIT REPORT RANDOLPH COUN1Y BOARD OF EDUCATION
CUTHBERT, GEORGIA YEAR ENDED JUNE 30, 1998

RANDOLPH 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 EXPENDITIJRES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

3

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NONGAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

5

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

6

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

21

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

22

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

23

3 SCHEDULE OF STATE REVENUE

25

4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

26

5 SCHEDULE OF EXPENDITIJRES

LOTTERY PROGRAMS

27

RANDOLPH COUNTY BOARD OF EDUCATION TABLE OF CONTENTS

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

6

OVERALL

29

7

BY PROGRAM

30

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WIlli GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WI1H REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WI1H OMB CIRCULAR A-133

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

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 4, 1999

Honorable Roy E. Bames, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Randolph County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements ofthe Randolph County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Randolph County Board ofEducation'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 fmancial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose fmancial 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:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

98ARL-14X

School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
The 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 ofthe Randolph County Board ofEducation as ofJune 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
As discussed in Note l.to the general purpose financial statements, during fiscal year 1998, the Board changed its method ofaccounting to include revenues and expenditures associated with Federal donated commodities in its general purpose financial statements. This change is in accordance with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated June 4, 1999, on our consideration ofthe Randolph County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants.
The year 2000 supplementary information on Schedule "I" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe supplementary information. However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that Randolph County Board ofEducation is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Randolph County Board ofEducation does business are or will become year 2000 compliant.
Our audit was perfo~ed for the purpose offorming an opinion on the general purpose financial statements of the Randolph County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through II) and the financial schedules (Schedules 2 through 7), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits a/States, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
98ARL-14X

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-6-24.
Respectfully submitted,
~ ~. t' w. ~~ Russell W. Hinton State Auditor
RWH:gp 98ARL-14X

RANDOLPH COUNTY BOARD OF EDUCAnON

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

RANDOLPH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GO\IERNMENTA!. FUND TYPES
YEAR ENDED JUNE 30 1998

EXHIBIT-a"

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE30 1998 JUNE30 1997

~
Stale Funds Federal Funds Taxes Other Funds
Total Revenues
EXpEN[)JTURES

S 7,180,074.52 S 417,425.68

50,048.20 2,929,098.13

1,599,768.73

S 218,002.49

332.856.n

106178.83 ~

7,597,500.20 2,979,146.33 1,817,771.22
439788.83

9.162.748.17 S 3,452 702.84 S 218755.77 S 12.834,206.58

8.355,252.85 2,220,056.04 1,591,107.76
435195.61
12,601.612.26

Cunant Instruction Support services Pupil services Improvement of Instructional services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportatlon services central Support servlc:es Other Support services Food services Oparation Community Services Oparations
CapltalOuUay

S 5.733,203.56 1.561.337.75

516.430.04 389,139.87 284,046.82 288,704.58 734,920.15
72.990.35 847,181.98 526.407.61
39.763.02 29,803.46 12,899.65
5,736.36 1,290.00

135.689.91 214.215.07
523.43 83,877.28 18,300.47 20,761.94 45,489.43 48,436.83

50,477.55 1,044.769.94
27.984.10 S

73275.27

7.294,541.31 S 7.083.115.25

852,119.95 603,354.94 284.570.05 372.381.86 751,220.62
93.752.29 892,671.41 574,844.44
39.763.02 80,081.01 1.057,689.59 33.702.46 74.565.27

546.313.16 578.276.24 196,114.62 253.518.14 n8.676.14
62,646.14 922,878.90 478.869.96
65,654.97 879.900.21
2,525.44 860,921.53

Total Expendllures Excess of Revenues over (under) ExpendIIures OTHER FINANCING SOURCES /USES!

9,462,319.25 S 3249843.70 S 73.275.27 S 12.785.238.22 S 12.661.608.70

-299,571.08 S 203058.94 S 145480.50 S

48968,36 S

-59.996.44

Oparating Transfers In Oparating Transfers Out
Total Other Financing Sources (Us.s)

S S -37.742,90
S -37742.90

- - - - 12,742.90 S 25,000.00 S
12742.90 S 25000.00 S

37,742.90 S -37.742.90
0.00 S

25,000.00 -25,000.00
0.00

Excess of Revenu.s and Other Ananclng 8ou'c:es over (under) Expandlluras and Other Ananclng Uses S -337,313.98

215,801.84 S 170,480,50 S

48,968.36 S

-59,996.44

FUND BALANCE JULY 1

598,895.75

591,840.30

6.908.01

1,195.444.06

1,253.106.59

Food Inventory - Net Change In Period Donated Commodities Purchased Food

2.546.35 -149.89

2,546.35 -149.89

843,80 1490.31

FUND BALANCE JUNE 30

259561.77 S 809,838.60 S 177 388.51 $ 1.246.808.88 $ 1,195444.06

The notes to the general purpose financial statements are an integral part of this statement. -3-

RANDOLPH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXpENDITURES AND CHANGES IN FUND BAlANCES
BUDGET AND ACTUAL - (NON-GMp BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 1998

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

~

State Funds Federal Funds TlIXN Other Funds

6,868,511.95 $
1,562,865.59 261,945.18

7,180,074.52 50,048.20
1,599,768.73 332,856.72

Total Revenues

$ 8,693,322.72 $ 9,162,746.17

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 Transportalion Services central Support Services Other Support Servioes Food Services Operation Community Services Operations
Capilot Outlay

$ 5,524,605.54 $ 5,733,203.56

457,255.07 343,533.22 204,199.04 270,859.31 713,316.26
68,904.57 842,468.12 475,On.19
38,619.52 29,747.00 8,374.65 10,057.00 20,000.00

516,430.04 389,139.87 264,046.62 288,704.58 734,920.15
n,990.36 847,181.98 526,407.61
39,763.02 29,603.46 12,899.65 5,738.36
1,290.00

Total Expenditures

$ 9,007,011.49 $ 9,462,319.25

Excess of Revenues over (under) Expendttures

$ -313,688.77 $ -299,571.08

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

-43,486.25 $

-37,742.90

Total Other Financing Sources (Uses)

$

-43,468.25 $

-37,742.90

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

-357,157.02 $

-337,313.98

FUND BALANCE JULY 1 1997

956,617.14

596,895.75

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

-11,905.23

FUND BALANCE JUNpO 1998

587,554.89 $ 259,581.77

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 408,311.96 $ 417,425.66

3,366,654.03

2,929,098.13

114,503.00

106,178.83

3,889,466.99 $ 3,452,702.64

$ 2,120,790.78 $ 1,561,337.75

225,454.93 294,726.12
1,524.29 84,864.00 29,006.77 29,003.06 65,888.13 70,175.92

135,669.91 214,215.07
523.43 83,6n.28 16,300.47 20,761.94 45,489.43 46,436.83

17,001.57 971,468.88
46,187.98

50,477.55 1,044,769.94
27,984.10

3,956,112.43 $ 3,249,643.70

$

-66,643.44 $ 203,058.94

$

18,468.25 $

12,742.90

18A68.25 $

12,742.90

$

-48,175.19 $

215,801.84

629,226.15

591,640.30

-8,336.02

2,546.35 -149.89

572,714.94 $ 809,838.60

The notes to the general purpose financial statements are an integral part of this statement. -5-

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Randolph County Board ofEducation (Board) was established under the laws ofthe State ofGeorgia and operates under the guidance ofa school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds 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.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by govermnental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances ofthese accounts are reflected in these fmancial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to govermnental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Govermnental 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 ofeducation.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.

-6-

RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of maj or capital facilities.
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 of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
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 measurabie and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities 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 1997 and ending in early June 1998. Employment contracts for these employment periods typic\lily specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and eliding in August 1998. State grants to fund the State's share of these 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 Randolph 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 of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
-7 -

RANDOLPH COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POUClES
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-eaming contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

- 8-

RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30,1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

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

PROPERTY TAXES

The Randolph County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on August 11, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days afteryear-end are reported as revenue in fiscal year 1998. The Randolph 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 1997 tax year (calendar year) for the Randolph County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

..l.J.M mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $218,002.49 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $3,081,997.51 has been collected or on December 31, 2002, whichever occurs first.

INVENTORIES

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

- 9-

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
For fiscal year 1998, the Board began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the Board. The reporting ofthe revenues and expenditures associated with donated commodities is a change in accounting principles.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been
recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial
to the general purpose fmancial statements.
Additionally, the dollar value ofaccumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation of these financial statements.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total colunms on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these colunms do not present financial position or results of operations in confonnity 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.

- 10-

RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

.

JUNE 30. 1998

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company du1y 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 ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia,
(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, 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
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations ofa subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $2,093,001.31. The amounts of the 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.
- 11 -

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

Note 2: DEPOSITS

Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollatera1ized 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, 1998, as follows:

Risk Category

Bank Balance

I

$ 135,222.97

2

1,471,470.00

3

486.308.34

Total

$209300131

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

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

The Board is self-insured with regard to unemployment compensation claims. 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.

- 12-

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 4: RISK MANAGEMENT

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning o f Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1997

$

1.376.00 $

5,184.00 $

5.793.00 $

767.00

1998

$

767.00 $

651.00 $

1.418.00 $

0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized,on December I, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Superintendent Each Principal High School Bookkeeper Elementary School Bookkeeper Payroll Clerk Finance Director Head Start Director Head Start Bookkeeper Bank Depositor Food Service Bookkeeper Head Start Secretary Each School Food Service Manager Each Athletic Gate Keeper Each School System Employee (Up to 250 Employees)

$ 50,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 1,000.00

NoteS: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$235,678.46 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies.

13 -

RANDOLPH COUNTY BOARD OF EDUCATION

EXlllBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1998

NoteS: ON-BEHALF PAYMENTS
Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$ I96,973.1 0
Paid to the Teachers Retirement System ofGeorgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $8,657.36
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 $30,048.00
Note 6: CONTINGENTLlABaITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.
The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.
Note 7: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees 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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required
- 14-

RANDOLPH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1998

Note 7: RETIREMENT PLANS

employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1998

100%

$ 810,067.42

1997

100%

$ 775,921.35

1996

100%

$ 715,116.53

- 15 -

RANDOLPH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1998

Cash and Cash Equivalents Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilijies FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund EqUity
Total Liabilities and Fund Equijy
See notes to the general purpose financial statements.
- 16-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

585.687.41 $

89,357.28

19.390.37

3.673.18 3.714.92

$ 612.465.88 $ _ _.8...9...3..5..7...2..8..

$

42.987.68 $

64,597.56

25,793.02

24,703.86

55.86

$

68.780.70 $ _ _.;:;89",".3~5:.:.7.::.2:.:.8

$

3.673.18

3.714.92

536.297.08 $

0.00

$ 543.685.18 $

0.00

$

612,465.88 $

89.357.28

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS JUNE 30, 1998 JUNE 30,1997

$ 206,516.42

$ 881,561.11 $ 648,999.34

209,777.76 $

16,214.88

245,383.01

215,894.92

3,673.18 3,714.92

1,126.83 3,864.81

$ 416,294.18 $

16,214.88 $ 1,134,332.22 $ 869,885.90

$

$

51,543.40

95,367.71

3,229.65

$

150,140.76 $

13,226.37 $ 2,988.51
16,214.88 $

13,226.37 $ 162,117.15 145,864.59
3,285.51
324,493.62 $

51,154.81 76,991.57 146,769.95
3,329.27
278,245.60

$ 266,153.42
0.00 $ $ 266,153.42 $

$ 266,153.42 $

6,427.51

0.00 0.00 $

3,673.18 3,714.92
536,297.08
809,838.60 $

1,126.83 3,864.81
580,221.15
591,640.30

$ 416,294.18 $

16,214.88 $ 1,134,332.22 $ 869,885.90

- 17-

RANDOLPH COUNJY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 1998

REVENUES
StateFunds Federal Funds Other Funds
Tetal 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 Community services Operations
Total Expendttures
Excess of Revenues over (under) Expendttures
OTHER FINANCING SOURCES (USES>
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expendttures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodtties Purchased Food

FUND BALANCE JUNE 30

See notes to the general purpose financial statements.

-18-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

57,290.00 $

857,193.90

85,727.18

$ 1.000.211.08 $

310,135.68 310,135.68

$ 250,841.59
23.502.13 102.25

$ 1,044,135.15

14,901.27
12.166.07 7,376.71
608.87 634.79

$ 1.044.135.15 $

$

-43,924.07 $

310.135.68 0.00

$

-43.924.07 $

585,212.79

2,546.35 -149.89

$ 543,665.18 $

0.00 0.00
..:0::;:.0::,0

EXHIBIT"P'

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30, 1997

$ $ 2,071,904.23
351.94
$ 2,072,256.17 $

50,000.00 $ 20,099.71

417,425.68 $ 2,929,098.13
106,178.83

545,169.81 2,171,083.63
90,085.47

70,099.71 $ 3,452,702.64 $ 2,806,338.91

$ 1,288,265.34 $
102,141.12 171,834.43
523.43 83,677.28
553.62 20,761.94 33,321.36 41,060.12 49,868.68
27,964.10
$ 1,819,971.42 $
$ 252,284.75 $

22,230.82 $ 1,561,337.75 $ 1,192,499.85

10,046.66 42,278.39
645.58

135,689.91 214,215.07
523.43 83,677.28 16,300.47 20,761.94 45,489.43 48,436.83 50,477.55 1,044,769.94 27,964.10

197,498.98 237,210.98
1,474.13 39,213.02 16.599.92
2,523.36 54,633.91 34,435.12 47,851.93 870,935.83
2,525.44

75,401.45 $ 3,249,643.70 $ 2,697,402.47

-5,301.74 $ 203,058.94 $ 108,936.44

$

7,441.16 $

$

7,441.16 $

$ 259,725.91 $ 6,427.51

5,301.74 $ 5,301.74 $

12,742.90 $ 12,742.90 $

1,473.72 -5,647.93
-4,374.21

0.00 $ 0.00

215,801.64 $ 591,640.30

104,562.23 484,744.16

2.546.35 -149.89

843.60 1,490.31

$ 266,153.42 $

0.00 $ 809,838.60 $ 591.640.30

-19-

RANDOLPH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUNp JUNE30 1998

EXHIBIT ''G"

~ Cash and Cash Equivalents Accounts Receivable

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 1998

JUNE 30, 1997

$

21,463.22 $

126,078.58 $

147,541.60 $

6,908.01

85,101.91

85,101.91

Total Assets

$

21:463.22 $

211,160.49 $

232,643.71 $

6,908.01

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Contracts Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For SPLOST Projects

Unreserved

Undesignated

$

Total Fund Equity

$

$

2:496.60 $

2,496.60

52,758.60

52,758.60

$

55,255.20 $

55255.20

$ 21,463.22 21,463.22 $

155,925.29 $ 0.00
155,925.29 $

155,925.29 21:463.22 $ 177,388.51 $

6,908.Ql 6908.01

Total Uabilities and Fund Equity

$

21:463.22 $

211,180.49 $

232,643.71 $

6,908.01

See notes to the general purpose financial statements.

-20-

RANDOLPH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDIWRES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30 1998

EXHIBIT"H"

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 1998

JUNE 30, 1997

~
Stale Funds Taxes Other Funds

$

530,513.26

$

218,002,49 $

218,002.49

$

753.28

753.28

2756.40

Total Revenues

753.28 $

218,002.49 $

218755.77 $

533,269.66

EXPENDITURES

CapitalOuUay Professional and Technical Services Supplies Building and Building Improvements

$

11,198.07 $

62,077.20

$ 73,275.27

17,083.47 34.85
843,803.21

Total ExpendRures Excess of Revenues over (under) ExpondRures

$

11,198.07 $

62,077.20

$

-10,444.79 $

155,925.29

73.275.27 $ 145,480.50 $

660,921.53 -327,651.87

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operatin9 Transfers Out
Total Other Financing Sources (Uses)

25,000.00

$

25,000.00

$

25,000.00 $

262,074.37

-237,074.37

$

25,000.00 $

. 25,000.00

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

14,555.21 $

155,925.29

170,480.50 $

-302,651.87

FUND BALANCE JULY 1

6,908.01

0.00

6,908.01

309,559.88

FUND BALANCE JUNE 30

$

21,463.22

155,925.29 $

177,388.51 $

6,908.01

See notes to the general purpose financial statements.

-21-

RANDOLPH COUNTY BOARD OF EDUCATION

SCHEDULE "1"

SCHEDULE OF REOUIRED SupPLEMENTARY INFORMATION

YEAR 2000 DISCLOSURES

YEAR ENDED JUNE 30, 1998

At June 30, 1998, the Randolph County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 issue.
Assessment Stage - The actual process ofidentifying all of its systems and individual components of the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
ValidationfTesting Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage.
The Board's fmancial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating
system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software.

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

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE''Z'

FUNDING AGENCY PBOGRAM!GRANT
Agriculture, U. S. Department of Pass-Through From Georgia Department of Education Food and NU1rition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) Pass-Through From OffIce of SChool Readiness Food and Nutrition Program Summer Food Se,rvice Program 1998 Contract
Total U. S. Department of Agriculture
Education, U. S. Department of Pass-Through From Georgia Department of Education Elementary and Secondary Education Act nlel Grants to Local Educational Agencies 1997 Summer 1998 Grant 1998 Summer Trtlell Eisenhower Professional Development 1997 Grant 1998 Grant TrtleVl Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1997 Grant 1998 Grant Technology Literacy Challenge Fund Grant 1998 Grant Individuals with Disabilities Education Act Part B - Spacial Education Flow Through 1998 Grant Preschool 1998 Grant Safe and Drug-Free Schools 1998 Grant Vocational Education - Basic Grants to ~tates High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant
Total U. S. Department of Education

CFDA ~

PAS5THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 10.555 10.550
. 10.559

N/A

$

240,902.17

(2)

N/A

529,923.57 $

957,766.99 (3)

NlA

48,951.79

48,951.79

N/A

37,416.37

37,416.37

$

857,193.90 $ 1.044.135.15

84.010 84.010 84.010
84.281 84.281
84.298

N/A $

26,133.55 $

26,527.72 (3)

N/A

624,707.74

,624,707.74

N/A

17,000.00

15,238.96

N/A

6,918.75

10,210.81

N/A

8,486.56

6,103.27

N/A

13,483.64

13,483.64

84.276

NlA

84.276

NlA

84.318

NlA

85,000.00 85,S01.34
SOO,OOO.OO

92,532.50 (3) 75,764.98
251,106.64

84.027

N/A

84.173

N/A

84.186

N/A

89,482.78 21,196.36 11,146.00

89,482.78 (4) 21,196.36 11,146.00

84.048 84.243

N/A

46,092.80

46,092.80

N/A

20.000.00

20,267.51 (3)

$ 1,555.149.52 $ 1,303,861.71

-23-

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENPITURES OF FEPERAL AWARDS
YEAR ENDED JUNE 30 1998

SCHEDULE?

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U. S. Department of Direct Head Start 1997 Grant 1998 Grant Pass-Through From Georgia Department of Human Resources Child Care and Development Block Grant Contract No. 427-93-71639 Contract No. 427-93-81580 Pass-Through From West Central Georgia Regional Mental Health, Mental Retardation and Substance Abuse Center High Risk Youth Program Contract No. 427-93-809012
Total U. S. Department of Health and Human Services
Labor, U. S. Department of Pass-Through From Columbus, Georgia Consolidated Govemment Job Training Partnership Act 1997 Summer
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army. R.O.T.C. Program 1998 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.600 93.600
93.575 93.575

$

173,309.97 $

175,108.29

305,825.15

302,797.72

N/A

12,719.36

12,768.47 (3)

N/A

17,802.46

17,802.46

93.959

N/A

4,353.63

4,888.63 (3)

$

514,010.57 $

513365.57

17.250

N/A $

2.744.14 $ _ _...2..,7!.:44""".1:!..4

$

50.048.20 $

89.446.91 (3)

Total Federal Financial Assistance N/A = Not Available

$ 2.979.146.33 $ 2,953.553.48

Notes to the Schedule of ExpendRures 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 1998 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Includes Federal Assistance of $8,960.00 provided to subrecipients.

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

The accompanying schedule of expenditures of Federal Awards includes the Federal grant activity of the Randolph County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the financial statements for the govemmental funds.

See notes to the general purpose financial statements.

-24-

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REI!ENUE YEAR ENDEp JUNE 30 1998

SCHEDULE "3"

AGENCVIFUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grants
Education, Gaorgia Department of QUality Basic Education General and Career Education Programs Special Education Programs Remedial Educalion Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation RegUlar Bus Replacement Middle School Incentive Program Speciallnslructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equelization FUnding Grant Food Services Vocational Education Other State Programs Allannative Program Apprenticeship Program At-Risk summer School Program Health Insurance Mentoring Program Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Remedial summer School Program Teachers' Retiramenl Lottery Programs Alternative School Program InsllUclional Technology Asslstive Technology Classroom Technology
Human Resources, Georgia Department of Family Connection
Office of School Readlne.. Pro-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Middle SchooVAfler School Program
See notes to the general purpose financial statements.

GOVERNMENTAL FUND TYPES

SPECIAl

GENERAL

REVENUE

FUND

FUND

TOTAL

$

20,000.00

$

20,000.00

3,523,795.00 591,102.00 154,527.00 140,533.00 45,097.00
1,019,069.00
253,959.00 72,042.00 122,271.00 333,645.00 83,191.00 10,212.00 28,842.00 -441,596.00 -663,260.00 748,041.00 485,646.00
$ 44,419.00
170,625.00 75,000.00
9,129.61 198,973.10
8,000.00 8,646.00 45,450.00 25,757.00 7,369.34 8,657.36
30,048.00

57.290.00
4,132.00 4,705.00 53,000.00 50.000.00 248,298.68

3,523,795.00 591,102.00 154,527.00 140,533.00 45,097.00
1,019,069.00
253,959.00 72,042.00 122,271.00 333,645.00 83,191.00 10,212.00 28.842.00 -441,596.00 -ll63,280.00 748,041.00 465,646.00 57,290.00 44,419.00
170,825.00 75,000.00
9,129.61 196,973.10
8,000.00 8,648.00 45,450.00 25,757.00 7,369.34 8,657.36
4,132.00
4,705.00 53,000.00
50,000.00
248,296.68
30,048.00

42,702.11

42.702.11

$ 7.180.074.52 $

417:425.68 $ 7.597.500.20

-25-

RANDOLPH COUNTY BOARD OF EDUCATION SCHEPULE OF APPROVEp LOCAL OPTION SALES TAX pROJECTS
YEAR ENDEp JUNE 30 1998

SCHEDULE "4"

Providing funds to pay the cost of constructing certain new facilities; acquiring instructional and administrative technology improvements for existing schools; adding to, renovating, repairing, improving, and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith; and acquiring any necessary property therefor, both real and personal, all at the maximum cost of $3,300,000.00

ORIGINAL ESTIMATED
COST (11

CURRENT ESTIMATED
COST (21

AMOUNT EXPENDED IN CURRENT
YEAR (31

AMOUNT EXPENDED IN PRIOR
YEARS

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The Board's current estimate of total cost for each project. Includes all cost from project inception to completion.
(3) The voters of Randolph County approved the imposition of a 1% sales tax to fund the abova projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projed.

See notes to the general purpose financial statements.

-26-

RANDOLPH COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES lOITERY PROGRAMS
YEAR ENDED JUNE 30 1998

SCHEDULE "5"

EXPENDITURES

AlTERNATIVE SCHOOL PROGRAM

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

PREKINDERGARTEN PROGRAM

TOTAL

Current

Instruction

$

Support 5ervices

Pupll5ervices

Improvement of Instructional Services

Business Admlnisllation

Maintenance and Operalion of Plant

Studan\ Transportalion 5ervices

Other Support 5ervIces

Food Sarvices Operation

4,132.00 $

4,705.00 $

53,000.00 $

189,004.59 250.841.59

23,502.13 102.25
14,901.27 12,168.07
7,376.71 608.87 634.79

23.502.13 102.25
14.901.27 12.168.07
7.376.71 608.87
~

Total Expendlturas

$

4132,00 $

4 705.00 $ _....5.:.ll3,illiOOO~'O::.0 $ _ _ _ _ _2~48~,2=:98~.6~8 310135.68

RECAP: Salaries and Banelils Pre-Klndergarien Program Other Expendllures Allemative School Program Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program

201,5n,49
4,132.00
4,705,00 53,000.00 48.726.19

310,135,68

see notes to the general purpose financial statements.

-27-

RANDOLPH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1998

SCHEDULE "6"

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

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

4,409,957.00 $

134,243.00

$

4,669,810.09

184,801.08 $

$

4,854,611.17

152,295.05

-84,679.89

$

4,769,931.28

Amount of Underexpenditure for Total Allotment

$

0.00 $

0.00

Note: (1) Salary accruals (July and August 1998 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 1997 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. - 29 -

RANDOLPH COUNTY BOARD OF EDUCATION
ANALYSIS OF MINIMUM EXpENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND. QUALITy BASIC EDUCATION PROGRAMS
YEAR ENOED .NNE 30 1998

GENERAL ANp CAREER EpUCATION PROGRAMS
Sub-ToIal- K-3
G1lldos8-8M _9-12M High School ~ M Vce:atianllI education ~M
Tolal GeneroJ ond ear- Educollon Prog......
SPECIAL EDUCATION PROGRAMS Regular Progromo categoryllM categoryJII M category IV (0) category V (OJ Sub-ToIaJ - Regular category VI (Gifted) M ToIaJ Special Educotion PnlgrBlllI
REMEQIAl EDUCATION PROGRAM M
- ToIaJ Fourtllon Weighlod Progromo
MEDIA CENTER PROGRAMS
OpenlIlona ToIaJ Modi. Contor Progromo
Tolal Fourteon we!ghIod ond ModIo Contor Progromo
STAfF DEVELOPMENT PROGRAMS Cootoflnotrucllon
Total Staff Development programs (*) Identifl8S Fourteen Weighted Programs. (1) SoIaJy """",Ills (July.nd AugUllI998llofonod
_ ) ropcrtod os oxponcIturoo In t h o _ Purpose Ananc:ial Statements are not included on this ana/y8illn order to c:ompIy YAth program guidelines.
see notes to the general purpose financial statements.

ALLOTMENTS FROM DEPARTMENT QF EDUCATION

ORIGINAL ..JL

REQUIRED ORIGINAL

MID-TERM

291,258.00 879,778.00 1,171,034.00 90 304,429.00 90 737,588.00 90 593,257.00 90 411.453.00 90 308,053.00 90 3,523,795.00

282,132.20 791,798.40 1,053,930.80 273,988,10 663,812.10 533,831.30 370,307.70 275,447.70 3,171,415,50

0.00 0.00
0.00

588,848.00

512,883.20 $

0.00

589,848.00 90 21,254.00 90
591,102.00 154,527.00 90 4,289,424.00

512,883.20 19,128.80
531.991.80 139,074.30 3,842,481.80

113,089.00 90 27,484.00 90
140,533.00

101,782.10 $ 24,717.80
12&,479.70

4,409,857.00

3.968.981.30

0.00
0.00 0.00 0.00
0.00 0.00
0.00

13,083.00 32,014.00

13,083.00

0.00

32,014.00

0.00

45,097.00 100 $

45,097.00 $

0.00

(2) SoIaJy _ _ (July ond August 1987 Defenod
So_> roportod os oxpondlt1lreo in tho prior
yeor GenoroJ Purpooe Eil1lll1Clol ~ ... _onthloOJ1Olyoisosreqlftdby
~mguldelinea.

- 30 -

SCHEDULE "7"

TOTAl. REQUIREO

ACTUAl. EXPENDITURES

SALARIES (1)(2) OPERATIONS

TOTAL

AMOUNT OF UNOEREXPENDITURE
FOR REQUIREO ALLOTMENT

262,132.20

328,778.74

7,799.25

338,577.119

791,798.40

882,680.08

22,292.20

884,942.26

1,053,930.80

1,191,438.80

30,081.45

1,221,520.25

0.00

273,968.10

319,750.74

9,518.45

329,269.19

0.00

683,812.10

7S1,681.42

19,413.08

771,274.48

0.00

533,931.30

538,1119.83

24,680.08

581,079.91

0.00

370,307.70

483,081.31

15,482.79

498,5&4.10

0.00

275,447.70

368,815.08

39,803.57

428,418.65

0.00

3.171.415.50

3.671,'47.18

139,979.40

3,810,126.58

512,683.20

273,772,68 261,438.09
12.632.31 5.681.03

5,086.19 5,120.98
356.37 387.29

278,858.05 268,557.07
12,968.68 8,048.32

512,683.20

553,522,29

10,930.83

5&4,453.12

0.00

19,128.60

48,330.82

415.55

48,746.17

0.00

531,991.80

801,852.91

11,346.38

813,199.29

139,074.30

204,103.14

1,989.27

206,072.41

0.00

3.842.481.60

4,477,103.23

152,295.05

4,829,398.28

101,782.10

192,708.68

192,706.86

0.00

24,717.60

32,508.03

32,508.03

0.00

126,479.70

192.706.86

32,508.03

225,212.89

3,968,961.30

4.869,810.09

184,801.08

4.854.611.17 S

0.00

13.083.00 32,014.00
45,097.00

23,049.50 22.047.50

23,049.50 22,047.50

45,097.00 $

45,097.00 S

0.00

31 -

SECTIONn COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-217..

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W. Suite 214 Atlanta. Georgia 30334-8400
June 4, 1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Randolph County Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofRandolph County Board ofEducation as ofand for the year ended June 30, 1998, and have issued our report thereon dated June 4, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States.
Compliance
As part of obtaining reasonable assurance about whether Randolph County Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination 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
of our tests disclosed no instances of noncompliance that are required to be reported under Government
Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Randolph County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its
98YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgement, could adversely affect Randolph County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7201-98-02.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing 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 also considered to be a material weakness.
This report is intended for the information ofmanagement, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record.
Respectfully submitted,
~ .~fQ (,o).~ Russell W. Hinton State Auditor
RWH:gp 98YB-40

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 4,1999

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe Randolph County Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB ClRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Randolph County Board of Education with the types of compliance
requirements described in the u.s. Office ofManagement and Budget (OMB) Circular A-I33 Compliance
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Randolph County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Randolph County Board of Education's management. Our responsibility is to express an opinion on Randolph County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Randolph County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Randolph County Board ofEducation's compliance with those requirements.

98SA-lO

In our opinion, the Randolph County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30,1998.
Internal Control Over Compliance
The management of Randolph County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Randolph County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter of public record.
Respectfully submitted,
~. ell t(). ~~ Russell W. Hinton State Auditor
RWH:gp 98SA-IO

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

RANDOLPH COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

7201-93-01 7201-96-01 FS-7201-97-01

Further Action Not Warranted Unresolved - See Correct ActionlResponses Unresolved - See Correct ActionlResponses

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $543.00 Finding Control Number: 7201-96-01

This deficiency will be handled by the Georgia Department of Education through the local fair share.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group . Finding Control Number: FS-7201-97-01

Due to the current staffing and budgetary limitations, the Board has decided not to pursue the recording of general fixed assets on the financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
SUMMARY QF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Randolph County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Randolph County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Randolph County Board ofEducation disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Randolph County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Randolph 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-l33 The Randolph County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-l33.
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 10.559 Food and Nutrition Program - Summer Food Service Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Randolph County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 1998
IT FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS Uncollateralized Deposits Nonmaterial Noncompliance Finding Control Number: FS-7201-98-01
As of June 30, 1998, the Board failed to have its bank balances fully collateralized as required by the Official Code of Georgia Annotated Section 45-8-12 which states, in part, as follows:
"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 depositary has not given bond to the public body as set forth in this code section. The aggregate ofthe face value of such surety bond, and the market value of securities pledged, shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance".
This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement adequate procedures to monitor collateralization of bank balances to ensure compliance at all times with State Laws governing deposits and investments.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7201-98-02
The Randolph 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 of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
No matters were reported.
-2-