STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS ,GJA A8oo f< ) '.2(o R3 \999 -2000 Oo oaoooO O 1776 I RANDOLPH COUNTY BOARD OF EDUCATION CUTHBERT, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor 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 EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ADDIDONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ANALYSIS OF EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 5 BYPROGRAM Page 2 4 6 7 16 18 20 22 24 26 27 29 30 RANDOLPH COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 SECTION ill AUDfIEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL 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 7, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the 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 of the Randolph County Bo.ard of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Randolph 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 perfo11n the audit to obtain reasonable assurance about whether the fmancial statem ents 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 stateinents, 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 ofthe 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 confo1m to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confo1111 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 Randolph County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo11nity 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 7, 2001, on our consideration of the Randolph 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 perfo1med 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 perfo1med for the purpose of forming 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 H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infu1mation 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 pe11nanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- 6-24. Respectfully submitted, RWH:gp 2000ARL-13A ssell W. Hinton State Auditor RANDOLPH COUNTY BOARD OF EDUCATION RANDOLPH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets GOVERNMENTAL FUND SPECIAL GENERAL FUND REVENUE FUND $ 1,103,284.75 $ 381,544.42 876,982.05 200,362.53 1,753.17 4 053.50 $ 1,980,266.80 $ ======58..7...,.7.==13=.6=2= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated Total Fund Equity $ 223,016.39 $ 40,475.71 930,732.30 120,629.72 1 883.34 25,716.76 $ 1,155,632.03 $ _ _:..;18::;:6::i,:,8::,:2:;2:.:_;19:..,. $ 37,271.00 $ 9,573.76 1,753.17 4,053.50 63,767.31 723,596.46 385,511:00 $ 824,634.77 $ _.......:.;40::;:0::i,:,8~9.:.:1-::.,:43::,_ Total Liabilities and Fund Equity $ 1,980,266.80 $ The notes to the general purpose financial statements are an integral part of this statement. -2- 587,713.62 EXHIBIT "A" TYPES CAPITAL PROJECTS FUND TOTALS (Memorandum Only) JUNE 30, 2000 JUNE 30, 1999 $ 201,366.48 $ 1,686,195.65 $ 883,387.44 870,000.00 111,044.78 1,188,389.36 1,134,730.80 1,753.17 4 053.50 2,067.13 1 627.76 $ 312,411.26 $ 2,880,391.68 $ 2,891,813.13 $ 252,779.61 $ 263,492.10 224,256.06 1,051,362.02 1,053,878.20 27,600.10 66,216.18 $ 1,342,454.22 $ 1,597,130.05 $ 37,271.00 $ 33,087.00 9,573.76 3,212.62 $ 85,035.50 200,304.45 1,753.17 4,053.50 85,035.50 200,304.45 2,067.13 1,627.76 295,821.81 27,071.31 63,767.31 1,136,178.77 70,000.00 888,866.76 $ 312,411.26 $ 1,537,937.46$ 1,294,683.08 312,411.26 $ $ - - - - - -------- -- 2,880,391.68 $ - -2- , 8-91--,-8-1--3 . - 1 - 3 -3- RANDOLPH 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 Community Services Operations Capital Outlay Total Expenditures Excess of Revenues pver (under) Expenditures OTHER FINANCING'SOURCES (USES) 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 $ 7,723,094.49 $ 127,456.43 2,094,308.33 617,013.29 $ 10,561,872.54 $ 347,535.35 3, 120,223.90 83,083.84 3,550,843.09 $ 6,216,376.36 $ 1,758,663.28 562,260.53 386,061.39 251,760.55 289,754.01 813,197.54 108,206.73 809,538.00 565,907.98 34,742.89 25,700.41 58,245.73 11,578.73 1,000.00 276,813.15 210,226.25 91,883.04 11,868.01 21,982.93 33,927.36 30,901.62 4,849.08 107,046.67 1,167,167.94 14,034.81 $ 10,134,330.85 $ 3,729,364.14 $ 427,541.69 $ _ _-1_7__8_..._,5_2_1._0__5__ $ $ _____-2..3....._,o_5__4___._o___o__ 23,054.00 $ -23,054.oo $ _ _-=2=3=,0=54..;.;.;;..oo~ $ 404,487.69 $ -155,467.05 420,147.08 554,246.70 -313.96 2,425.74 FUND BALANCE JUNE 30 $ 824,634.77 $ ___4_oo_,s_9_1._4.3.. The notes to the general purpose financial statements are an integral part of this statement. -4- EXHIBIT "B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 8,070,629.84 $ 7,631,579.22 3,247,680.33 2,757,444.10 $ 590,380.51 2,684,688.84 2,622,341.10 2,603.82 702,700.95 592,703.49 $ 592,984.33 $ 14,705,699.96 $ 13,604,067.91 $ 7,975,039.64 $ 7,662,281.26 839,073.68 734,012.43 596,287.64 583,493.17 251,760.55 266,932.50 381,637.05 366,712.83 825,065.55 799,257.16 130,189.66 106,762.23 843,465.36 866,600.47 596,809.60 490,540.54 39,591.97 45,394.84 132,747.08 90,201.26 1,225,413.67 1,051,273.54 25,613.54 46,543.97 $ _ _6;;.;;0c;;,0,_,8=62=.3=7_ 601,862.37 442,494.30 $ 600,862.37 $ 14,464,557.36 $ 13,552,500.50 . $ -7,878.04 $ 241,142.60 $ 51,567.41 $ 23,054.00 $ 11,786.69 -23,054.00 -11,786.69 $ o.oo $ ____o==oo__ $ -7,878.04 $ 241,142.60 $ 51,567.41 320,289.30 1,294,683.08 1,246,808.88 -313.96 2,425.74 -1,606.05 -2,087.16 $ 312,411.26 $ 1,537,937.46 $ 1,294,683.08 -5- RANDOLPH 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 Total Revenues $ 7,509,068.42 $ 16,074.48 2,106,808.43 295,100.57 7,723,094.49 127,456.43 2,094,308.33 617,013.29 $ 9,927,051.90 $ 10,561,872.54 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 Community Services Operations Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures $ 5,969,069.89 $ 6,216,376.36 463,171.14 422,253.00 254,282.70 291,250.16 906,375.00 85,883.00 825,480.00 499,623.02 25,236.00 . 26,777.00 33,717.70 5,000.00 562,260.53 386,061.39 251,760.55 289,754.01 813,197.54 108,206.73 809,538.00 565,907.98 34,742.89 25,700.41 58,245.73 11,578.73 1 000.00 $ 9,808,118.61 $ 10,134,330.85 . $ 118,933.29 $ _ _4.:.:2:.:.7..::,54;..:.1"--'.6;:a.;9::.. OTHER FINANCING SOURCES (USES) Other Sources Other Uses $ 1,000.00 -59,672.00 $ _ _-.=2=.,3,c::.054=....:.;..0""'0'- Total Other Financing Sources (Uses) $ -58,672.00 $ _ _--=23=.,c::.054;;.:.a.O""'O'- Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 60,261.29 $ FUND BALANCE JULY 1, 1999 634,963.06 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food -28,454.72 404,487.69 420,147.08 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 333,766.92 $ 347,535.35 4,068,197.09 3,120,223.90 124,268.20 83,083.84 $ 4,526,232.21 $ 3,550,843.09 $ 2,098,420.35 $ 1,758,663.28 480,990.72 385,690.24 276,813.15 210,226.25 98,681.88 29,643.40 31,071.15 56,694.32 71,692.90 4,849.11 120,699.74 1, 153,352.17 33,270.00 2,952.87 91,883.04 11,868.01 21,982.93 33,927.36 30,901.62 4,849.08 107,046.67 1,167,167.94 14,034.81 $ 4,568,008.85 $ 3,729,364.14 $ -41,776.64 $ -178,521.05 $ 59,912.00 $ 23,054.00 $ 59,912.00 $ 23,054.00 $ 18,135.36 $ -155,467.05 512,499.82 554,246.70 5,119.53 -313.96 2,425.74 FUND BALANCE JUNE 30, 2000 $ 6661769.63 $ ___82_41,6._34_._11_ $ 535.754.71 $ 400.891.43 The notes to the general purpose financial statements are an integral part of this statement. -6- RANDOLPH 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 Randolph 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 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 confonn to generally accepted a c c o u n . t' i n g 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 confo1111 to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. - The general pw:pose 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 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. 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. ' RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 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 major 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 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. Governmental funds are accounted for using the modified accrual basis ofaccounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A substantial number ofpersonnel 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 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 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 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. -8- RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnation 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 1999 tax year (calendar year) on September 28, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The 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 1999 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 18.43 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 $590,380.51 and -9- RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES was recorded in the Capital Projects Fund. The State will tt:1111inate collection of this tax once an additional $1,941,672.66 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, 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 ofnet current assets. 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 confo1mity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool - 10 - RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State ofGeorgia, 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 Inte1111ediate 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 $2,752,994.23. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.-g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging. financial institution, or by its trust department or agent but not in the Board's name.) - 11 - RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category 1 2 3 Total Bank Balance $ 149,732.12 1,409,289.00 1,193,973.11 $ 2,7'i2,994.23 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 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 ofthe 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 ofthat 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: -12- RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 4: RISK MANAGEMENT 1999 2000 Beginning of Year Liability Claims and Changes in Estimates $ 0.00 $ 4,901.00 $ $ 0.00 $ 9,563.20 $ Claims Paid End ofYear Liability 4,901.00 $._ _ __,0:.:.,.0=0 9,563.20 $_ _ _-"'O=.O=O The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' 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 EachAthletic Gate Keeper Each School System Employee Note 5: ON-BEHALF PAYMENTS Amount $ 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 The Board has recognized revenues and expenditures in the amount of $226,454.61 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 $185,855.75 - 13 - RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: ON-BEHALF PAYMENTS Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $8,807.86 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 $31,791.00 Note 6: 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 terrns. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. The Board is a defendant in a legal proceeding pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthis proceeding 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 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 Reti1ernent System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: - 14- RANDOLPH COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 7: RETIREMENT PLANS Fiscal Year 2000 1999 1998 Percentage Contributed 1003/o 100% 100% Required Contribution $ 821,002.06 $ 846,398.23 $ 810,067.42 - - 15 - RANDOLPH 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 $ 395,872.13 $ 22,065.51 1,753.17 4,053.50 Total Assets $ 401,678.80 $ ===2=2=,0=65..,.5=1= 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 Undesignated Total Fund Equity $ 10,361.13 $ 4,286.59 15,740.96 2,037.96 $ 10,361.13 $ 22,065.51 $ 1,753.17 4,053.50 385,511.00 $ _ _ _ _.:::.,0,:.::,00~ $ 391,317.67 $ _ _ _ _.:::.,0-~00~ Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 16 - 401,678.80 22,065.51 $ ----------- $ ------- - - - - -, EXHIBIT "E" , FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 301 2000 JUNE 30, 1999 $ 417,937.64 $ 681,344.92 $ 188,060.25 $ 12,302.28 200,362.53 123,729.10 1,753.17 4,053.50 2,067.13 1,627.76 $ 188,060.25 $ 12,302.28 $ 624,106.84 $ 808,768.91 $ 24,090.94 $ 25,827.99 104,888.76 23,678.80 $ 178,486.49 $ 12,302.28 $ 12,302.28 $ 36,393.22 $ 40,475.71 120,629.72 25,716.76 30,653.62 24,217.07 133,636.18 66,015.34 223,215.41 $ _ _2_54---..;,5_2__2._2_1 $ 9,573.76 $ 9,573.76 $ 3,212.62 1,753.17 4,053.50 2,067.13 1,627.76 0.00 $ _ _ _ _0.a..;.0...0___ 385,511.00 547,339.19 $ 9,573.76 $ 0.00 $ 400,891.43 $ 554,246.70 $ 188,060.25 $ 12,302.28 $ 624,106.84 $ 808,768.91 2 - 17 - RANDOLPH 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 School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations 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 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. -18 - SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 62,174.00 $ 212,229.35 877,676.00 82,575.51 $ 11022,425.51 $ --=2"'-'12=,2=2;;.;;9;.;.;.3:;.;:5;_ $ 176,637.80 21,740.33 $ 18,221.58 1,166,032.12 6,507.24 7,778.89 121.19 24.00 235.10 $ 1,184,253.70 $ _ ___,;2=.1;..;;;3=,0;..;.44..;.:.""'55"- $ -161,828.19 $ -815.20 815.20 $ -161,828.19 $ 0.00 551,034.08 0.00 -313.96 2,425.74 -------. $ 391,317.67 $ - - --- - 0.00 -- - -- -- - EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 23,132.00 $ 2,242,547.90 508.33 $ 2,266, 188.23 $ 50,000.00 $ 347,535.35 $ 3,120,223.90 83,083.84 50,000.00 $ , 3,550,843.09 $ 334,551.26 2,702,595.09 124,362.19 3,161,508.54 $ 1,582,025.48 196,583.75 $ 210,226.25 91,883.04 5,360.77 21,982.93 26,148.47 30,780.43 4,849.08 88,801.09 900.72 14 034.81 $ 2,273,576.82 $ $ -7,388.59 $ $ 58,489.07 58,489.07 $ -8,489.07 $ 1,758,663.28 $ 276,813.15 210,226.25 91,883.04 11,868.01 21,982.93 33,927.36 30,901.62 4,849.08 107,046.67 1,167,167.94 14,034.81 3,729,364.14 $ -178,521.05 $ 1,690,095.23 201,738.93 175,472.60 2,000.00 86,205.17 26,917.65 21,386.51 45,625.35 38,038.29 65,405.30 1,037,115.07 35,193.82 3,425, 193.92 -263,685.38 13,749.73 $ 6,361.14 $ 3,212.62 8,489.07 23,054.00 11,786.69 0.00 $ 0.00 -155,467.05 $ 554,246.70 -251,898.69 809,838.60 -313.96 2,425.74 -1,606.05 -2,087.16 $ 9,573.76 $ -- -- 0.00 400,891.43 554,246.70 - -- ----- - $ - - ------ - ----- $ --- - - --- - - -- - - 19 - RANDOLPH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000 ASSETS Cash and Cash Equivalents Accounts Receivable REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 27,071.31 $ 200,304.45 Total Assets $ 27 071.31 $ ===2=00=1'=30=4=.4=5= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUND EQUITY Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 200,304.45 $ ---=2:.:..7.,a:;,0.:..71.:.;,.3:;.1:..... 0.00 $ 27,071.31 $ ---=2~00::..,;::,;30::.,;4:.:...4:..:::5~ $ 27,071.31 $ 200,304.45 See notes to the general purpose financial statements. - 20- EXHIBIT "G" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 227,375.76 $ 232,696.14 $ _ _1:..,:1..:.1.z.:0..:.44.:.a.:.;78=-- 111 044.78 87,593.16 $ 111 044.78 $ 338,420.54 $ 320,289.30 $ 26,009.28 $ ---=2=-=6=,0=0=9=28=-- $ 85,035.50 $ 85,035.50 $ 295,821.81 200,304.45 0.00 27,071.31 24,467.49 85,035.50 $ 312,411.26 $ _ ___,;3=2=0=,2=89=.3=0~ $ 111 044.78 $ 338,420.54 $ _ ....3_2=0_,2_89;;,;,.3_.0.. - 21 - RANDOLPH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 REVENUES Taxes Other Funds Total Revenues EXPENDITURES Capital Outlay Building and Building Improvements Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) 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 FUND BALANCE JUNE 30 REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 0.00 $ ----..=2..,;:;6,..;;..03;;;.;.=82;;;_ $ 2,603.82 $ _ _ _ _ _ _oa.;..o;;..;o_ $ 0.00 $ _ _ _.1.9.;.L9.;;..7;..;;6""'.5;.;;;5_ $ 2,603.82 $ _____-1...;:;.9..,;:;9..;_76;;;.;..5.;;..;5c... $ 220,281.00 $ _ _.....;;;;;22=0"-",2=8;;..;1""o'.;.;;;o_ $ 2,603.82 $ 24 467.49 200,304.45 0.00 $ 27,071.31 $ -====2=00=,3=0=4.=45= See notes to the general purpose financial statements. -22- EXHIBIT "H" SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 590,380.51 $ 590,380.51 $ 549,944.34 2,603.82 3,656.59 $ 590,380.51 $ 592,984.33 $ _ __,;5;;..;:5=3.:::;,6.;;..00;:;..;..:;.;93:.... $ 580,885.82 $ 600,862.37 $ _ _4....;1_0_"""7,_0_0--'._1_4_ $ 9 494.69 $ -7 878.04 $ _ _1_4_2__""',9.0....0__._79__ $ $ _____-2=2=01=2_a__1_._o_o__ 220,281.00 -220,281.00 $ -220,2a1.oo $ _ _ _ _o=.o=o=- $ -210,786.31 $ 295,821.81 -7,878.04 $ 320,289.30 142,900.79 177,388.51 $ 85,035.50 $ 312,411.26 $ 320,289.30 -23- RANDOLPH 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 Pass-Through From Office of School Readiness Food and Nutrition Program Food Services Summer Food Service Program for Children 10.553 10.555 10.559 NIA $ 215,369.82 (2) NIA 508,677.02 $ 1,004,870.25 (3) NIA 110,679.93 136,434.22 Total Child Nutrition Cluster $ 834,726.77 . $ 1,141,304.47 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 10.550 NIA Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 10.558 NIA 42,949.23 39,942.29 42,949.23 (4) Total U. S. Department of Agriculture $ 917,618.29 $ 1,184,253.70 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool 84.173 84.027 84.173 N/A $ 2,930.68 $ NIA 104,811.80 NIA 25,523.00 3,144.68 (3,5) 104,811.80 (6) 25,523.00 Total Special Education Cluster $ 133,265.48 $ 133,479.48 Other Programs Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project 84.332 NIA Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 84.010 NIA Title II Eisenhower Professional Development 84.281 NIA Title VI Innovative Education Program Strategies 84.298 NIA Class Size Reduction 84.340 NIA Goals 2000 State and Local Education Systemic Improvement Grants 84.276 NIA Technology Literacy Challenge Fund Grants 84.318 NIA Safe and Drug-Free Schools and Communities 84.186 NIA Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 NIA 50,000.00 619,204.00 8,958.15 26,014.00 72,583.17 174,270.19 450,064.70 80,674.76 47,065.86 50,000.00 619,372.28 13,506.89 (3) 26,245.58 (3) 72,583.17 202,367.67 (3) 449,022.31 80,674.76 47,065.86 Total U. S. Department of Education $ 1,662,100.31 $ 1,694,318.00 -24- RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER Health and Human Services, U. S. Department of Direct Head Start Pass-Through From Georgia Department of Human Resources Temporary Assistance for Needy Families Child Care and Development Block Grant Abstinence Education Pass-Through From West Central Georgia Regional Mental Health, Mental Retardation and Substance Abuse Center High Risk Youth Program 93.600 93.558 93.575 93.235 93.959 Total U. S. Department of Health and Human Services Labor, U. S. Department of Pass-Through From Columbus Consolidated Government Job Training Partnership Act 17.250 Defense, U.S. Department of Direct Department of the Army R.O.T.C. Program PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD $ 525,720.00 $ NIA 23,058.73 NIA 12,340.05 NIA 50,710.23 524,185.38 (3) 23,058.73 12,340.05 54,426.97 (3) NIA 17,457.36 17,803.21 (3) $ 629,286.37 $ _ _.:_63:::.1:.,:,8::.:1.:.4::::.34.:. NIA $ 1,871.45 $ _ _ _..;.1:.;;;,8.;.7.;.;1.;.45-=- $ 36,803.91 $ 94,968.35 (3) Total Federal Financial Assistance NIA = Not Available $ 3,247,680.33 $_....,3.-s.01._.2_2_5_.84_ Notes to the Sche-dule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Includes Federal Assistance of $579.47 provided to subrecipients. (6) Includes Federal Assistance of $9,244.11 provided to subrecipients. Major Programs are identified by an asterisk (*) 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 basis of accounting used in the presentation of the general purpose financial statements. See notes to the general purpose financial statements. -25- RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000 SCHEDULE "2" AGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension 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 Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Next Generation Schools Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom Human Resources, Georgia Department of Family Connection Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Education, Georgia Department of Middle School/After School Program Georgia's Reading Challenge Program GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 4,048,220.00 649,119.00 157,430.00 162,628.00 43,400.00 1,069,681.00 256,938.00 80,187.00 115,383.00 165,028.00 72,842.00 14,174.00 28,842.00 -494,491.00 -806,229.00 832,455.00 586,059.00 $ 53,099.00 199,435.00 2,000.00 12,281.05 750.00 185,855.75 5,000.00 7,900.00 4,698.00 42,750.00 28,650.00 7,708.72 8,807.86 7,034.50 31,791.00 $ 62,174.00 10,571.64 51,052.01 4,048,220.00 649,119.00 157,430.00 162,628.00 43,400.00 1,069,681.00 256,938.00 80,187.00 115,383.00 165,028.00 72,842.00 14,174.00 28,842.00 -494,491.00 -806,229.00 832,455.00 586,059.00 62,174.00 53,099.00 199,435.00 2,000.00 12,281.05 750.00 185,855.75 5,000.00 7,900.00 4,698.00 42,750.00 28,650.00 7,768.72 8,807.86 7,034.50 10,571.64 51,052.01 50,000.00 50,000.00 150,605.70 150,605.70 31,791.00 53,667.61 90,000.00 23,132.00 53,667.61 113,132.00 See notes to the general purpose financial statements. $ 7,723,094.49 $ -26- 347,535.35 $ 8,070,629.84 RANDOLPH COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" PROJECT 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 (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS $ 3,300,000.00 $ 3,300,000.00 $ 600,862.37 $ 472,407.34 (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 project. Includes all cost from project inception to completion. (3) The voters of Randolph County approved the imposition of a 1o/o sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project. See notes to the general purpose financial statements. -27- RANDOLPH 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 $ 5,017,397.00 $ ------'-'15;;...;1..!.,;5,;.;_7=2;;.::.o.;;.o $ 5,078,114.90 202,739.75 $ _ _ _16_6...,;;,2_1_3._2_3 $ 5,280,854.65 -82,597.15 $ _ _ _5'-'-,1--'9~8.:.;;,2_5_7._5_0 Amount of Underexpenditure for Total Allotment $ 0.00 $=====0.=0=0 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. - 29 - RANDOLPH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*) Category 111 (*) Category IV (*) Sub-Total - Regular Category VI (Gifted) (*) 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 $ 415,907.00 $ 374,316.30 $ 0.00 1,042,176.00 937,958.40 $ 1,458,083.00 90 $ 1,312,274.70 $ 0.00 422,271.00 90 380,043.90 713,098.00 90 641,788.20 647,343.00 90 582,608.70 456,225.00 90 410,602.50 351,200.00 90 316,080.00 $ 4,048,220.00 - - - - - - $ 3,643,398.00 $ 0.00 $ 636,715.00 $ 573,043.50 $ 0.00 $ 636,715.00 90 $ 573,043.50 $ 0.00 12,404.00 90 11,163.60 $ 649,119.00 $ - - - - - - 584,207.10 $ 0.00 $ 157,430.00 90 $ 141,687.00 $ _ _ _ _..o._.o_o_ $ 4,854,769.00 $ 4,369,292.1 o $ _ _ _ _.;;.o;.;;.o~o $ 130,661.00 90 $ 117,594.90 $ 31,967.00 100 31,967.00 , 0.00 $ 162,628.00 $ 149,561.90 $ _ _ _.....o."".o~o Total Fourteen Weighted and Media Center Programs STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development $ 5,017,397.00 - - - - - $ 4,518,854.00 $ 0.00 $ 14,093.00 29,307.00 $ 14,093.00 $ 29,307.00 0.00 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. See notes to the general purpose financial statements. $ 43,400.00 100 $ 43,400.00 $ _ _ _ _ _o.o..oa (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. - 30 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 374,316.30 $ 368,567.46 $ 10,583.41 $ 379,150.87 937,958.40 913,019.10 26,734.29 939,753.39 $ 1,312,274.70 $ 1,281,586.56 $ 37,317.70 $ 1,318,904.26 $ 0.00 380,043.90 434,738.17 12,655.43 447,393.60 0.00 641,788.20 680,374.92 15,909.01 696,283.93 0.00 582,608.70 723,090.97 33,003.14 756,094.11 0.00 410,602.50 473,743.34 14,996.71 488,740.05 0.00 316,080.00 352,471.42 38,762.81 391,234.23 0.00 $ 3,643,398.00 $ 3,946,005.38 $ 152,644.80 $ 4,098,650.18 $ 573,043.50 $ 316,179.59 $ 287,096.51 35,752.23 4,837.27 $ 6,288.81 838.96 321,016.86 293,385.32 36,591.19 $ 573,043.50 $ 639,028.33 $ 11,965.04 $ 650,993.37 0.00 11,163.60 52,270.96 367.39 52,638.35 0.00 $ 584,207.10 $ 691,299.29 $ 12,332.43 $ --"'-'-7'0"3",6"3-1'~.7=2 $ 141,687.00 $ 232,111.60 $ - - - ~ - - 1,236.00 $ 233,347.60 0.00 $ 4,369,292.10 $ 4,869,416.27 $ 166,213.23 $ 5,035,629.50 $ 117,594.90 $ 208,698.63 $ 208,698.63 0.00 31,967.00 - - - - - - $ _ _ _3_6.._,5_26_._5_2__ 36,526.52 0.00 $ 149,561.90 $ 208,698.63 $ 36,526.52 $ _ _;;;.24.;.;;5;.:;;,2;;;;;2;.;;.5';.;.1.;;..5 $ 4,518,854.00 $ 5,078,114.90 $ - - - - - - - - 202,739.75 $ 5,280,854.65 $ 0.00 $ 14,093.00 29,307.00 =---- $ 43,400.00 $ 25,564.03 $ 25,564.03 17,934.17 17,934.17 $ 43,498.20 $ 43,498.20 s_ _ _ _ _ _ _o_.o...,o 31 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 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 7, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Randolph 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 ofRandolph County Board ofEducation as of and for the year ended June 30, 2000, and have issued our report thereon dated June 7, 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 ofthe United States. - Compliance As part of obtaining reasonable assurance about whether Randolph County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and 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 Randolph County Board ofEducation's internal 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 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-7201-0002. 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 no1n1al course of perfo11ning their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is also considered to be a material weakness. This report is intended solely for the info11nation and use ofmanagement, members ofthe Randolph 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:gp 2000YB-40A 2 '-