STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS G,A A8oo RI 2(o Rs- Oo 00 00 00 0 1776 I RICHMOND COUNTY BOARD OF EDUCATION AUGUSTA, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor RICHMOND COUNfY BOARD OF EDUCATION -TABLE OF CONTENTS- Page SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDmONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 24 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 26 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 28 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 30 DEBT SERVICE FUND I COMBINING BALANCE SHEET 32 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 33 RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION EXHIBITS COMBINING STATEMENTS FIDUCIARY FUND TYPES K COMBINING BALANCE SHEET 34 L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 36 M COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FU1'lTIS 38 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 39 2 SCHEDULE OF STATE REVENUE 41 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 43 ANALYSIS OF ,,, EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 45 5 BYPROGRAM 46 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPOR1' ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDI'l'ING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133 RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION ill AUDI'I'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS s Y .i.... SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RussELL W. H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta. Georgia 30334-8400 February 22, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond 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 Richmond County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Richmond County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, 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. Those standards require that we plan and perfo11n 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. We did not observe the taking ofthe consumable supplies inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 2000ARL-13 As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To confu1111 to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. . * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo11n to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material. In our opinion, except for the effects ofsuch adjustments, ifany, on the General Fund, as might have been dete1111ined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies inventory as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters refe11cii to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Richmond County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in confu11nity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 22, 2001, on our consideration ofthe Richmond County Board ofEducation'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 perfu1111ed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was perfo11ned for the purpose of fo11ning an opinion on the general purpose financial statements of the Richmond County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through M) and the financial schedules (Schedules 1 through 5), 2000ARL-13 which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such info11nation has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the General Fund, as might have been deterrnined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies inventory as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such inforrnation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. 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 506-24. Respectfully submitted, - RWH:gp 2000ARL-13 Rus ell W. Hinton State Auditor RICHMOND COUNTY BOARD OF EDUCATION RICHMOND COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Consumable Supplies Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Compensated Absences GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 3,214,240.21 $ 3,801,072.56 $ 1,565,115.05 16,608,018.82 42,297,217.07 2,441,968.76 4,125,608.87 5,864,002.62 3,478,245.98 39,071.37 142,661.14 127,054.25 Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Funds Held for Others Capital Lease Agreements Compensated Absences General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Arbitrage Rebate Tax For Continuation of Federal Programs For Debt Service For Encumbrances For Inventories Consumable Supplies Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 2517421473.77 $ 81235,468.19 $ 49,726,334.74 $ 4,165,368.28 $ 613,568.93 $ 3,183.52 2,259,970.51 71,106.22 38,050.39 3,226,378.47 1,864,318.79 $ 4,236,474.50 $ 2,911,589.83 $ 5,093,880.78 $ 920,175.00 $ 149.24 $ 423,955.72 119,059.87 3,478,245.98 39,071.37 142,661.14 127,054.25 10,561,573.52 27,388,291.64 5,679,511.40 17,603,797.57 4,895,882.49 82,902.40 $ 21,505,999.27 $ 5,323,878.36 $ 44,632,453.96 Total Liabilities and Fund Equity $ 2517421473.77 $ The notes to the general purpose financial statements are an integral part of this statement. 812351468.19 $ 4917261334.74 -2- EXHIBIT "A" DEBT SERVICE FUND FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onl:t:l JUNE 30, 2000 JUNE 30, 1999 $ 6,584,098.02 $ 2,836.61 97,617.84 $ 15,262,143.68 $ 19,044,831.16 58,908,072.50 71,392,402.45 176,943.81 12,608,524.06 10,749,576.48 $ 6,763,878.44 3,517,317.35 142,661.14 127,054.25 6,763,878.44 3,260,766.22 111,585.16 117,746.88 23,097,374.05 69,006,121.56 17,471,348.79 1,006,836.56 69,006,121.56 17,471,348.79 1,006,836.56 74,942,625.95 19,357,818.31 856,767.56 $ 6,763,878.44 $ 97617.84 $ 94,248,185.35 $ 184.813.958.33 $ 222.931.494.22 $ 4,782,120.73 $ 4,462,911.02 2,259,970.51 1,899,149.57 109,156.61 74,950.34 3,226,378.47 3,421,520.53 1,864,318.79 2,651,768.70 $ 34,534.43 34,534.43 55,996.37 $ 17,471,348.79 17,471,348.79 19,357,818.31 1,006,836.56 1,006,836.56 856,767.56 75,TT0,000.00 75,770,000.00 98,040,000.00 $ 34,534.43 $ 94,248,185.35 $ 106,524,664.89 $ 130,820,882.40 $ 6,763,878.44 0.00 $ _ _...;6=3=,0.8...3__._4__1__ $ 61763,878.44 $ _ _..,6a.:::3.i.:::,Oc:c83::.:.4.;.1:.. $ 6.763.878.44 $ 97 617.84 $ $ 920,175.00 149.24 6,763,878.44 $ 23,097,374.05 543,015.59 2,444,066.23 3,517,317.35 3,246,601.41 142,661.14 127,054.25 10,561,573.52 27,388,291.64 5,679,511.40 111,585.16 117,746.88 35,612,227.61 11,525,477.63 22,645,665.87 15,955,532.85 $ 78,289,293.44 $ 92,110,611.82 - 3- RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS 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 Debt Service Principal Interest Escrow Agent Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Premium on Bonds Sold Proceeds of Refunding Bonds Par Value Payments to Bond Escrow Agent Capital Leases 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 Consumable Supplies Inventory Net Change in Period Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND GOVERNMENTAL FUND SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 127,294,353.10 $ 1,032,634.26 60,217,713.38 3,718,120.82 9,158,548.29 $ 22,731,774.33 3,433,178.66 4,113,378.49 27,066,461.23 2,617,298.56 $ 192,262,821.56 $ 35,323,501.28 $ 33,797,138.28 $ 119,210,057.49 $ 14,458,253.80 7,114,869.28 4,925,958.99 5,212,913.43 2,031,514.21 13,934,668.03 1,270,083.75 20,764,769.40 7,592,437.24 2,263,834.93 134,751.28 8,483.92 226,885.91 293,203.23 3,485,973.33 1,441,259.29 809,473.54 329,097.96 60,787.65 542,177.96 22,730.03 318,314.00 13,036,644.58 264,619.33 $ 36,635,569.65 2,089,503.15 734,661.34 13,462.37 2,592.78 $ 187,808,595.58 $ 34,785,386.62 $ 36,635,569.65 $ 4,454,225.98 $ 538,114.66 $ -2,838,431.37 $ 11,496.00 $ 267,600.00 $ -334,541.53 -146 413.24 $ -323,045.53 $ 121,186.76 $ 213,354.77 213,354.77 $ 4,131,180.45 $ 17,071,847.72 302,971.10 659,301.42 $ -2,625,076.60 4,624,193.59 47,257,530.56 31,075.98 9,307.37 FUND BALANCE JUNE 30 $ 21 15051999.27 $ The notes to the general purpose financial statements are an integral part of this statement. -4- 513231878.36 $ 4416321453.96 EXHIBIT "B" TYPES DEBT SERVICE FUND TOTAL FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 140,566,279.88 $ 140,566,279.88 $ 127,589,805.51 23,764,408.59 23,764,408.59 21,991,830.45 $ 9,931,412.75 97,215,587.36 97,215,587.36 92,050,517.63 337,917.09 1o,106,515.13 $ ______3..._4_1__7__._5___1___ 1o,109,932.64 12,036,906.91 $ 10,269,329.84 $ 271,652,790.96 $ 3 417.51 $ 271,656,208.47 $ 253,669,060.50 $ 133,668,311.29 $ 10,600,842.61 6,367,218.28 6,022,386.97 2,360,612.17 13,995,455.68 1,270,083.75 21,306,947.36 7,615,167.27 2,263,834.93 453,065.28 13,045,128.50 491,505.24 36,928,772.88 $ 22,270,000.00 4,323,938.75 24,372,965.52 5,061,192.87 8,886.70 8,886.70 $ 26,602,825.45 $ 285,832,377.30 $ $ -16,333,495.61 $ -14,179,586.34 $ 0.00 $ 133,668,311.29 $ 129,002,988.49 10,600,842.61 6,367,218.28 6,022,386.97 2,360,612.17 13,995,455.68 1,270,083.75 21,306,947.36 7,615,167.27 2,263,834.93 453,065.28 13,045, 128.50 491,505.24 36,928,772.88 10,097,391.57 6,111,051.40 5,013,324.64 2,049,518.32 13,544,463.58 1,304,175.67 18,660,053.41 6,784,789.99 3,861,140.27 596,375.55 12,792,717.57 515,836.71 48,945,115.79 24,372,965.52 5,061,192.87 8,886.70 15,072,814.52 4,377,431.79 12,980,225.52 18,283.07 0.00 $ 285,832,377.30 $ 291,727,697.86 3 417.51 $ -14, 176,168.83 $ -38,058,637.36 $ 11,496.00 480,954.77 -480 954.77 $ _ _"""'1..1......4..=96=.o""o'-- $ -16,333,495.61 $ -14,168,090.34 $ 23,097,374.05 92,050,945.92 302,971.10 31,075.98 9,307.37 $ 313,777.14 -993,944.30 1,394,640.80 90,115,000.00 -90,515,696.50 $ 11,496.00 2,047,092.49 480,954.77 507,278.34 -480,954.77 -507,278.34 $ 11 496.00 $ 2,360,869.63 3,417.51 $ -14,164,672.83 $ -35,697,767.73 59,665.90 92,110,611.82 126,818,693.32 302,971.10 990,891.23 31,075.98 9,307.37 -14,554.39 13,349.39 $ 6,763,878.44 $ 78,226,210.03 $ 63,083.41 $ 78,289,293.44 $ 92,110,611.82 -5- RICHMOND 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 $ 123,993,953.25 $ 127,294,353.10 1,522,291.00 1,032,634.26 57,589,230.00 60,217,713.38 6,601,681.47 3,718,120.82 $ 189,707,155.72 $ 192,262,821.56 EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Capital Outlay Debt Service $ 121,167,823.11 $ 119,210,057.49 7,485,969.00 5,370,454.25 5,442,213.00 2,092,199.49 14,348,325.00 1,381,916.13 18,306,664.00 7,136,012.00 2,439,685.74 22,575.00 12,250.00 387,291.00 933,897.00 3, 179,881.00 7,114,869.28 4,925,958.99 5,212,913.43 2,031,514.21 13,934,668.03 1,270,083.75 20,764,769.40 7,592,437.24 2,263,834.93 134,751.28 8,483.92 226,885.91 293,203.23 2,824, 164.49 Total Expenditures Excess of Revenues over (under) Expenditures $ 189,707,155.72 $ 187,808,595.58 $ 0.00 $ 4,454,225.98 OTHER FINANCING SOURCES (USES\ Other Sources Other Uses Total Other Financing Sources (Uses) $ 11,496.00 -334,541.53 $ _ _.::,32::.,3:;,.:,04:..=5:.,::5,,_3 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ FUND BALANCE JULY 1. 1999 0.00 $ 4,131,180.45 0.00 15,213,298.96 FUND BALANCE JUNE 30. 2000 s_____o._oo_ s 19,344,479.41 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 9,510,339.00 $ 9,158,548.29 25,g57,543.68 22,731,774.33 4,374,924.00 3,433,178.66 $ 39,842,806.68 $ 35,323,501.28 $ 15,029,270.82 $ 14,458,253.80 3,696,495.08 1,809,026.00 810,544.00 333,578.41 60,956.00 3,485,973.33 1,441,259.29 809,473.54 329,097.96 60,787.65 584,764.16 50,995.00 542,177.96 22,730.03 329,665.00 16,449,520.00 687,992.21 318,314.00 13,036,644.58 264,619.33 16,055.15 $ 39,842,806.68 $ 34,785,386.62 $ 0.00 $ __5::;.:38='-1-'..:..14=.6=6'-- $ 267,600.00 -146,413.24 $ _ __:.:12=-'1"-1' :.::,8,:::6,"'76,._ $ 0.00 $ 659,301.42 0.00 4,394,861.55 s ____o_._oo_ s 5,0541162.97 The notes to the general purpose financial statements are an integral part of this statement. -7- RICHMOND 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 Richmond County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11n to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although ''school activity accounts'' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confo1m to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. -8- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-terrn principal, interest and paying agent fees. FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to needy students ofDavidson Fine Arts Magnet School. Gail Hendricks Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. Nora Coxwell Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. Robetta McKenzie Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, accrued compensated absences and capital lease. obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurernent focus. All governmental and expendable trust 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 -9- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Tt;ttn Debt Account Group. Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations. Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting 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 dete1mined and ''available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities. - 10 - RICHMOND COUN1Y BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BUDGET The Richmond County Board of Education'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 fund type level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B'' of this report: General Fund Special Revenue Fund FUND BALANCE JULY 1, 1999 $17,071,847.72 $4,624,193.59 Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods Supplies -1,858,548.76 -111,585.16 -117,746.88 Fund Balance July 1, 1999 (Budget Basis) $15,213,298.96 $4,394,861.55 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 4,131,180.45 659,301.42 FUND BALANCE JUNE 30, 2000 (Budget Basis) $19.344.479.41 $5,054,162.97 - 11 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments 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 ofGeorgia, Office of Treasury and Fiscal Services, (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 info1n1ation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables - 12 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Augusta - Richmond County Board ofCommission Council fixed the property tax levy for the 1999 tax year (calendar year) on July 20, 1999 (levy date). Taxes were due on November 30, 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 Augusta Richmond 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. In addition, the Clerk of the Superior Court of Richmond County collects recording taxes for the Board ofEducation, withholds 6% oftaxes collected as a fee for tax collection and remits the balance to the Board. Tax millage rates levied for the 1999 tax year (calendar year) for the Richmond County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 18.71 mills 1.86 mills 20.57 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $31,068,882.27 and was recorded in the Capital Projects and Debt Service Funds. The State will te1minate collection ofthis tax once an additional $62,529,381.69 has been collected or on June 30, 2002, whichever occurs first. INVENTORIES CONSUMABLE SUPPLIES Inventories of athletic, custodial and instructional supplies are recorded as expenditures under the consumption method and are valued at cost (weighted average). These inventories are recorded as assets at the time ofpurchase. Inventories ofmaintenance and transportation supplies are recorded as expenditures at the time of purchase and are valued on the Combined Balance Sheet at cost (weighted average). Inventories oftextbooks are recorded as expenditures at the time of purchase and are valued on the Combined Balance Sheet at cost (first-in, first-out). Inventories reported on the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component ofnet current assets. - 13 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources'' even though they are a component of net current assets. 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 of this obligation as this amount is deemed immaterial to the general purpose financial statements. GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group. RESERVED FUND BALANCES For Encumbrances - This reserve constitutes the unperfo11ned portion ofpurchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year because the commitments will be honored during the subsequent year. 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. - 14 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and - 15 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS AND INVESTMENTS (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 Intc1n1ediate 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 $38,774,905.73. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category 1 2 3 Total Bank Balance $ 6,600,353.05 21,174,552.68 11.000.000.00 $38.774,905.73 CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below: Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. - 16 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS AND INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $41,408,072.50. The investments are classified as to risk categories as follows: Type of Investment U.S. Government Common Stock Total Local Government Investment Pools Total Investments Risk Categories _ _..,_]__ 2 3 Carrying Amount Fair Value $ 1,078,612.54 $ $ 324,646.75 0.00 $ 1,078,6 I2.54 $ 1,078,6I2.54 324,646.75 324,646.75 $ 324,646.75 $ 1,018,612.54 $==~01,el.o~o $ 1,403,259.29 $ 1,403,259.29 40,004,813.21 40,004,813.21 $4 J,408,072.50 $4 J,408,072.50 The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-tc1n1 instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. - 17 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 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 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 ofloss associated with torts, assets, errors or omissions and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. The Board has established a limited risk management program for workers' compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit. Changes in the workers' compensation claims liability during the last two fiscal years are as follows: Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability 1999 2000 $ 0.00 $ 140,840.57 $ 140,840.57 $._ ______:0=.0"-"-0 $ 0.00 $ 322,385.23 $ 322,385.23 $._ ______:O=.O"""'O ' The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 1999 2000 Beginning of Year Liability Claims and Changes in Estimates $ 6,641.00 $ 18,950.00 $ $ 18,950.00 $ 24,742.77 $ Claims Paid End ofYear Liability 6,641.00 $ 18,950.00 35,643.77 $._----'8""".o~4.:.:::9~.o=o - 18 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 4: RISK MANAGEMENT The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Superintendent Administrative Assistant Each Principal Business Manager Each Bookkeeper Each Lunchroom Manager Athletic Business Manager Amount $ 50,000.00 $ 10,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 3,000.00 $ 1,000.00 Note 5: GENERAL LONG-TERM DEBT ARBITRAGE REBATE TAX The Federal Tax Refo11n Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury ofInvestment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years. The estimated liability of $920,175.00 at June 30, 2000, is based on tax exempt debt subject to the Tax Refo11n Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through September 1, 2003, at which time payment ofthe final calculated liability for the five-year period is required to be remitted. CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles, office equipment, computer equipment, equipment upgrades at various schools, lighting systems, a career exploration lab and the acquisition and construction of school facilities. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates General Government - Refunding - Series 1998 General Government - Refunding - Series 1993 General Government - Refunding - Series 1991 3.80% - 4.25% 2.50% - 4.70% 4.50% - 6.30% Amount $58,710,000.00 12,400,000.00 4,660,000.00 $75,770,000.00 - 19 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LONG-TERM DEBT The changes in General Long-Terrn Debt during the fiscal year ended June 30, 2000, were as follows: Balance July I, 1999 Additions Capital Leases Annual Leave Earned and Utilized (Net) Extention of Existing Lease Deductions Debt Retired Balance June 30, 2000 Capital Leases Compensated Absences General Obligation Bonds Total $19,357,818.31 $ 856,767.56 $98,040,000.00 $ I 18,254,585.87 11,496.00 205,000.00 150,069.00 11,496.00 150,069.00 205,000.00 2. I 02.965.52 22.270.000.00 24.372.965.52 $ I :Z,4:Z l ,348.72 $ 1,006,836.56 $75,7:ZQ,QQO,QO $ 94,248,185.35 At June 30, 2000, payments due by fiscal year which includes principal and interest for these iterns are as follows: Fiscal Year Ended June 30 2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015 2016 - 2020 2021 - 2025 Capital Leases General Obligation Bonds Total Debt $ 2,529,637.66 2,296,472.50 1,814,000.09 1,670,650.40 1,673,642.90 6,511,398.94 4,040,332.50 4,041,638.75 4,039,307.50 $31,409,680.00 31,420,397.50 8,571,217.50 2,998,460.00 3,015,256.25 5,155,852.50 $ 33,939,317.66 33,716,870.00 10,385,217.59 4,669,110.40 4,688,899.15 11,667,251.44 4,040,332.50 4,041,638.75 4,039,307.50 Total Principal and Interest Deduct: Imputed Interest $28,617,081.24 $82.570.863. 75 $111.187.944.99 11,145,732.45 Net Present Value of Future Minimum Lease Payments $17.471.348.79 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $3,102,313.88 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 $2,373,955.80 -20- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 6: ON-BEHALF PAYMENTS Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $203,253.08 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 $525,105.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: Project CP-2035 CP-2036 CP-2011 01/00S-721-038 99-721-088 00/99S-721-106 B-97-013-426 B-98-025-425 B-97-003-412 B-97-017-424 B-98-035-411 B-98-029-418 B-97-006-408 B-98-030-419 B-97-001-427 B-99-041-420 B-97-012-415 B-98-025-425 B-97-002-406 B-98-025-425 B-97-020-416 B-99-036-417 B-99-039-425 B-99-040-425 B-98-032-423 Unearned Executed Contracts Funding Available From State $ 117,712.50 119,032.60 132,046.00 5,332,497.58 2,579,051.91 5,318,843.64 11,441.27 65,916.75 1,870.60 745,032.47 5,043,289.42 1,132.13 5,824.14 147,491.47 16,561.94 1,055,033.86 7,702.00 291.67 12,215.59 2,479.53 4,148.46 728,505.20 57,755.73 316.62 51,391.35 $3,193,603.00 299,400.30 1,708,294.21 $21.557.584.43 $ 5 ~ 97.51 - 21 - RICHMOND COUNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 7: SIGNIFICANT COMMITMENTS The amounts described in this note are not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 9: ACCUMULATED EMPLOYEES' LEAVE Administrative and other clerical personnel earn two days ofvacation each month with a maximum accumulation of twenty-four days less required vacation days to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-four days per year depending upon the employee's length of service with a maximum accumulation of22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 - Compensated Absences The Board also has an attendance incentive program that provides for payments at 20% of the employee's daily rate ofpay based on unused sick days. No liability has been recorded for the June 30, 2000, attendance incentive liability as this amount is deemed immaterial to the general purpose financial statements. Note 10: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department 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 ernployer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: -22- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 10: RETIREMENT PLANS Fiscal Year 2000 1999 1998 Percentage Contributed 100% 100% 100% Required Contribution $14,016,137.79 $14,315,192.29 $13,417,601.86 - 23 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Consumable Supplies Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS FEDERAL PROGRAMS $ 5,408,799.22 $ 363,781.80 200,969.46 227,245.03 $ 3,656,676.60 142,661.14 127,054.25 $ 5,879,484.07 $ 591,026.83 $ 3,656,676.60 ----- --- ---- -- - 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 Encumbrances For Inventories Consumable Supplies Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 2,253,269.08 $ 146,910.01 $ -139,828.14 326,830.78 770,394.71 451,198.69 1,038,377.11 38,050.39 $ 917,304.72 $ 591,026.83 $ 3,656,527.36 $ 149.24 $ 142,661.14 127,054.25 4,692,463.96 $ _ _ _ _0;::.:.:.;00::... 0.00 $ 4,962,179.35 $ ___ 0.00 $ 149.24 __,;...;..;;.;;~ Total Liabilities and Fund Equity $ - - 5,879,484.07 ----- -- - - . $ See notes to the general purpose financial statements. -24- 591,026.83 $ 3,656,676.60 EXHIBIT "E" OTHER PROGRAMS ATHLETIC FUND TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 320,768.51 $ 6,093,349.53 $ 5,599,838.81 $ 40,717.78 4,125,608.87 2,942,444.85 39,071.37 39,071.37 142,661.14 127,054.25 34,664.47 111,585.16 117,746.88 $ 40 717.78 $ 359,839.88 $ 10,527,745.16 $ 8,806,280.17 $ 39,007.89 $ _ _.;::;3.a:.,9,c;;.00;;.;7..;.;.8;;.;;;9_ $ 2,292,276.97 $ 1,599,786.22 613,568.93 611,073.28 2,259,970.51 1,899,149.57 38,050.39 72,077.51 $ 5,203,866.80 $ 4,182,086.58 $ $ ------'-'1'-'-70.;;..;9;;..;.;.8;;...9_ $ 1,709.89 $ $ 119,059.87 39,071.37 201,708.64 359,839.88 $ 149.24 119,059.87 $ 39,071.37 142,661.14 127,054.25 4,895,882.49 5,323,878.36 $ 158,399.00 34,664.47 111,585.16 117,746.88 4,201,798.08 4,624,193.59 $ 40 717.78 $ 359,839.88 $ 1015211145.16 $ 8 18061280.11 -25- RICHMOND 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 Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases 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 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS FEDERAL PROGRAMS $ 990,912.00 $ 10,169,248.04 2,909,905.42 $ 14,070,065.46 $ 5,025,198.14 $ 3,142,438.15 12,562,526.29 5,025,198.14 $ 15,704,964.44 $ 3,692,381.37 $ 10,666,929.50 $ 7,155.89 51,411.60 13,035,808.61 264,619.33 470,794.33 20,079.33 809,343.59 3,836.09 28,763.43 2,644,367.53 1,421,179.96 129.95 318,105.98 60,787.65 235,379.48 22,730.03 318,314.00 835.97 13,462.37 2,592.78 $ 13,358,995.43 $ 5,025,198.14 $ 15,704,815.20 $ 111,010.03 $ _ _ _ _o:.:..:.:ooa... $ 149.24 $ _ _-..;.14.;.;6:.i.,4.;.1;.;:;3;.;.;.2;;.;4'-, $ _ _-1.;..4;.;;;6.i.;4..;.13:.:.2;;;;.4;.. $ 564,656.79 $ 4,357,139.21 31,075.98 9,307.37 0.00 $ 0.00 149.24 0.00 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. $ 4,962,179.35 $ -26- ------- 0.00 $ 149.24 EXHIBIT "F" OTHER PROGRAMS ATHLETIC FUND TOTALS YEAR ENDED JUNE 301 2000 JUNE 301 1999 $ 9, 158,548.29 $ 7,602,529.58 22,731,774.33 20,823,295.69 $ 107,590.98 $ 415,682.26 3,433,178.66 3,277,643.19 $ 107,590.98 $ 415,682.26 $ 35,323,501.28 $ 31,703,468.46 $ 98,942.93 $ 14,458,253.80 $ 12,009,815.90 5,509.44 $ 365,302.03 1,428.72 225,194.73 3,485,973.33 1,441,259.29 809,473.54 329,097.96 60,787.65 542,177.96 22,730.03 318,314.00 13,036,644.58 264,619.33 3,399,183.82 1,580,026.05 8,972.20 205,142.56 75,385.52 372,937.62 44,947.05 544,295.64 12,792,717.57 252,812.36 13,462.37 2,592.78 $ 105,881.09 $ 590,496.76 $ 34,785,386.62 $ 31,286,236.29 $ 1,709.89 $ -174 814.50 $ 538,114.66 $ 417,232.17 267,600.00 $ $ 267,600.00 -146,413.24 57,596.00 337,623.62 -168,306.00 $ 267,600.00 $ 121,186.76 $ ----'2=2=6.,_,9,.a.;13:;;.;..6=2~ $ 1,709.89 $ 92,785.50 $ 659,301.42 $ 644,145.79 0.00 267,054.38 4,624,193.59 3,981,252.80 31,075.98 9,307.37 -14,554.39 13,349.39 $ 1 709.89 $ 359,839.88 $ 5,323,878.36 $ 4,624,193.59 -27- RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Un designated Total Fund Equity Total Liabilities and Fund Equity REGULAR BOND PROCEEDS $ 81,652.40 $ 1,388,643.39 12,805,373.50 1,250.00 $ 82,902.40 $ 14,194,016.89 $ 3,183.52 1,557,839.23 1,051,245.62 $ _ _:2::.z.;6,::.:1-=2z:,2.=.:68:.:.;.3::.,:7_ $ 920,175.00 10,561,573.52 100,000.00 $ 82,902.40 0.00 $ 82,902.40 $ 11,581,748.52 $ 82,902.40 $ 14,194,016.89 See notes to the general purpose financial statements. - 28- EXHIBIT "G" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 94,819.26 $ 1,565,115.05 $ 11,739,448.24 $ 7,166,210.84 22,325,632.73 42,297,217.07 53,312,556.06 921,571.43 4,941,181.19 5,864,002.62 1,250.00 $ 8,087,782.27 $ 27,361,633.18 $ 49,726,334.74 $ 65,053,254.30 $ 1,601,126.60 $ 807,144.27 $ 2,408,270.87 $ $ 67,412.64 5,928.90 73,341.54 $ $ 3,183.52 3,226,378.47 1,864,318.79 11,673,477.14 48,957.37 3,421,520.53 2,651,768.70 5,093,880.78 $ 17,795,723.74 $ 920,175.00 10,561,573.52 $ 35,612,227.61 $ 27,288,291.64 27,388,291.64 $ 5,679,511.40 5,679,511.40 11,525,477.63 0.00 0.00 82,902.40 119,825.32 $ 5,679,511.40 $ 27,288,291.64 $ 44,632,453.96 $ 47,257,530.56 $ 8,087,782.27 $ 27,361,633.18 $ 49,726,334.74 $ 65,053,254.30 - 29- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Total Expenditures 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 Residual Equity Transfer FUND BALANCE JUNE 30 REGULAR BOND PROCEEDS $ 0.00 - - - - - - $ ---'-'1,..;;;..97.;...4.;..L,4-'"-'2"-7-'-7. ;..;;5~ $ 0.00 $ __1~,9:;.;.7.,;.4'-'",4=27;..;.7.:..;;5~ $ 111,323.14 $ 114,567.90 23,884,342.55 64,990.78 2,281,025.25 $ 179,558.68 $ 26,276,690.94 $ -179,558.68 $ -24,302,263.19 $ 142,635.76 $ 271,784.10 $ 142,635.76 $ 271,784.10 $ -36,922.92 $ -24,030,479.09 119,825.32 35,612,227.61 $ 82,902.40 $ 11,581,748.52 See notes to the general purpose financial statements. - 30- EXHIBIT "H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 4, 113,378.49 $ 4,113,378.49 $ 2,500.00 $ 27,066,461.23 27,066,461.23 642,870.81 2,617,298.56 5,590,548.69 $ 4,113,378.49 $ 27,709,332.04 $ 33,797,138.28 $ 5,593,048.69 $ 692,321.71 9,267,023.01 $ $ 219,975.31 803,644.85 $ 33,485,908.77 2,346,016.03 116,266.31 47,781,830.36 779,441.38 $ 9,959,344.72 $ 219,975.31 $ 36,635,569.65 $ 48,677,538.05 $ -5,845,966.23 $ 27,489,356.73 $ -2,838,431.37 $ -43,084,489.36 $ $ ----'-2=0:...;.1.t.,;;J0.;;;.;65=.0=9;_ $ -201,065.09 $ 414,419.86 $ 11,727,726.55 -201,065.09 -11,558,071.83 213,354.77 $ _ _.;..;16;;.;;;9.i.;;,6=54-',.;..;..:72:;_ $ -5,845,966.23 $ 27,288,291.64 $ -2,625,076.60 $ -42,914,834.64 11,525,477.63 0.00 47,257,530.56 90,210,317.31 -37,952.11 $ 5,679,511.40 $ 27,288,291.64 $ 44,632,453.96 $ 47,257,530.56 - 31 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000 EXHIBIT "I" ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 6,584,098.02 $ 0.00 $ 6,584,098.02 $ 3,579,651.60 2,836.61 2,836.61 14,641,532.74 176,943.81 176,943.81 4,876,189.71 $ 6,763,878.44 $ _ _ _ _o_.o_o_ $ 6,763,878.44 $ 23,097,374.05 FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undesignated Total Fund Equity $ 6,763,878.44 $ 6,763,878.44 $ 23,097,374.05 0.00 $ _ _ _ _,a.:0..:.;00::... 0.00 0.00 $ 6,763,878.44 $ _ _ _......o_.o_o_ $ 6,763,878.44 $ 23,097,374.05 See notes to the general purpose financial statements. -32- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30, 2000 EXHIBIT J" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 REVENUES Taxes Other Funds $ 5,928,991.71 $ 4,002,421.04 $ 9,931,412.75 $ 35,727,173.39 337,917.09 337,917.09 1,089,217.68 Total Revenues $ 6,266,908.80 $ 4,002,421.04 $ 10,269,329.84 $ 36,816,391.07 EXPENDITURES Debt Service Principal Interest Escrow Agent Paying Agent Fees $ 2,060,000.00 $ 1,216,348.75 8,886.70 20,210,000.00 $ 3,107,590.00 22,270,000.00 $ 4,323,938.75 8,886.70 13,155,000.00 3,415,700.48 12,980,225.52 14,283.07 Total Expenditures $ 3,285,235.45 $ 23,317,590.00 $ 26,602,825.45 $ 29,565,209.07 Excess of Revenues over (under) Expenditures $ 2,981,673.35 $ -19,315.168.96 $ -16,333,495.61 $ 7,251,182.00 OTHER FINANCING SOURCES IUSESl Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Premium on Bonds Sold Proceeds of Refunding Bonds Par Value Payments to Bond Esaow Agent $ 313,777.14 -993,944.30 1,394,640.80 90,115,000.00 -90,515,696.50 Total Other Financing Sources (Uses) $ 313 777.14 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 2,981,673.35 $ -19,315,168.96 $ -16,333,495.61 $ 7,564,959.14 FUND BALANCE JULY 1 3,782,205.09 19,315,168.96 23,097,374.05 15,532,414.91 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 33- RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000 ASSETS Cash and Cash Equivalents DAVIDSON TRUST FUND EXPENDABLE TRUST FUNDS GAIL NORA HENDRICKS SCHOLARSHIP COXWELL SCHOLARSHIP FUND FUND $ ---- - 35,554.43 - ---------- $ 100.00 $ 26,601.46 LIABILITIES AND FUND EQUITY LIABILITIES Funds Held for Others FUND EQUITY Fund Balances Unreserved Undesignated $ 35,554.43 $ 100.00 $ ___2;a.6a.,6"-0'--1_.4.;..;6;_ Total Liabilities and Fund Equity $ 35,554.43 $ 100.00 $ -- --- ---- --- --- 26,601.46 See notes to the general purpose financial statements. - 34- EXHIBIT "K" ROSETTA MCKENZIE SCHOLARSHIP FUND AGENCY FUNDS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 827.52 34,534.43 $ --- - - - - - -------- $ 97 617.84 $ 115,662.27 $ 34,534.43 $ 34,534.43 $ 55,996.37 $ _ _ __::8=2"--'7=52=- 0.00 63,083.41 59,665.90 $ 827.52 $ - - 34,534.43 $ ------- - 97,617.84 115,662.27 $ ----- - - -- -- - - - - - 35- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2000 REVENUES Other Funds EXPENDITURES None Recorded Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 DAVIDSON TRUST FUND GAIL HENDRICKS SCHOLARSHIP FUND NORA COXWELL SCHOLARSHIP FUND $ 1 814.63 $ $ 0.00 $ $ 1,814.63 $ 33,739.80 100.00 $ - - -1-45-7.5-3 0.00 $ - - - - -0.0-0 100.00 $ 1,457.53 0.00 25,143.93 FUND BALANCE JUNE 30 $ 35,554.43 $ 100.00 $=====2=6,..,.6=01=.4=6= See notes to the general purpose financial statements. - 36 - EXHIBIT "L" ROSETTA MCKENZIE SCHOLARSHIP FUND .TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 45.35 $ 3 417.51 $ _ _--=2'-"',9c;:;.5;:;.,;5."'-84~ $ 0.00 $ 0.00 $ _ _ _ _0.;;.;".;;..00~ $ 45.35 $ 3,417.51 $ 2,955.84 782.17 59,665.90 56,710.06 $ 827.52 $ 63,083.41 $ 59,665.90- ------~~--- - - 37 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000 EXHIBIT "M" COHEN, COLONEL CLARENCE H., R.O.T.C. AWARD FUND ASSETS Cash and Cash Equivalents BALANCE JULY 1, 1999 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2000 $ 753.47 $ 43.07 $ -=---- 0.00 $ 796.54 LIABILITIES Funds Held for Others $ 753.47 $ 43.07 $ 0.00 $ _ _ _7_9_6._54_ PERFORMANCE BONDS ASSETS Cash and Cash Equivalents $ 55,242.90 $ 46,569.22 $ 68,074.23 $ __3_3_,7_3_7._89_ LIABILITIES Funds Held for Others $ 55,242.90 $ 46,569.22 $ 68,074.23 $ __3_3..,,7,_3..,7._89_ TOTALS-AGENCY FUNDS ASSETS Cash and Cash Equivalents $ 55,996.37 $ 46,612.29 $ 68,074.23 $ __34....,,5_34_._43_ LIABILITIES Funds Held for Others $ 55,996.37 $ 46,612.29 $ 68,074.23 $ __34_,5_34_._43_ See notes to the general purpose financial statements. - 38- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Summer Food Service Program for Children Total Child Nutrition Cluster CFDA NUMBER PASS THROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 10.555 10.559 NIA $ 1,917,704.59 (2) NIA 7,188,913.15 $ 13,358,995.43 (3) NIA 386,074.00 386,074.00 $ 9,492,691.74 $ 13,745,069.43 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Nutrition Education and Training Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 10.564 10.550 10.558 Total U. S. Department of Agriculture Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Grant Flow Through Georgia Leaming Resources System Preschool Severely Emotionally Disturbed 84.173 84.027 84.027 84.173 84.027 Total Special Education Cluster Other Programs Direct Impact Aid 84.041 Pass-Through From Georgia Department of Education Comprehensive School Refonn Demonstration Project 84.332 Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 84.010 Title II Eisenhower Professional Development 84.281 Title Ill Technology Literacy Challenge Fund Grants 84.318 Title VI Innovative Education Program Strategies Class Size Reduction 84.298 84.340 Georgia Leaming Resources System Individuals with Disabilities Education Act Special Education PartD Personnel Development and Parent Training 84.029 Safe and Drug-Free Schools and Communities 84.186 Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 84.196 Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 Total U.S. Department of Education 39- NIA 2,607.20 2,607.20 NIA 617,323.19 617,323.19 NIA 56,625.91 (2) $ 10,169,248.04 $ 14,364,999.82 NIA $ 39,421.89 $ 39,421.89 NIA 1,421,889.74 1,421,889.74 NIA 136,604.15 235,827.15 (3) NIA 130,489.00 130,489.00 NIA 176,508.99 2,346,957.58 (3) $ 1,904,913.77 $ 4,174,585.36 715,546.31 (5) NIA 129,285.23 129,135.99 NIA 7,792,968.74 7,792,968.74 NIA 151,431.78 151,431.78 NIA 105,256.37 105,256.37 NIA 346,350.59 346,350.59 NIA 1,038,998.05 1,038,998.05 NIA 814.87 NIA 487,727.37 NIA 10,525.72 814.87 487,727.37 10,525.72 NIA 328,513.04 1,201,279.60 (3) $ 13,012,331.84 $ 15,439,074.44 RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Justice, U. S. Department of Pass-Through From Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention Labor. U. S. Department of Pass-Through From Richmond/Burke Job Training Authority Job Training Partnership Act 08-98-20-11-245 08-00-20-11-245 Total U. S. Department of Labor OTHER FEDERAL ASSISTANCE Defense, U. S. Department of Direct Defense Activity for Non-Traditional Support Troops to Teachers Department of the Air Force R.O.T.C. Program Department of the Army R.O.T.C. Program Department of the Marines R.O.T.C. Program Department of the Navy R.O.T.C. Program National Science Center Total U. S. Department of Defense CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 16.548 NIA $ 29,542.31 $ ______29...,.54~2=.3-'-1 17.250 17.250 NIA $ 227,518.25 $ N/A 8,080.20 227,518.25 8,080.20 $ 235,598.45 $ _____2_35_..._,5""'9-"-8'-'-.4--5 $ -11,272.99 (4) 38,415.81 (4) 148,929.56 (4) 51,085.41 (4) 89,930.16 (4) 600.00 $ - - - -60-0.0-0 $ 317,687.95 $ _ _ _ _6""'0---0."'"00-- Total Federal Financial Assistance $ 23,764,408.59 $ 30,069,815.02 N/A = Not Available Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the Child and Adult Care Food Program and 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) Funds earned on this program do not require reporting of expenditures. Major Programs are identified by an asterisk (*) in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Richmond 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. -40- RICHMOND 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 Limited English-Speaking Students Program Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors ' Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Georgia Leaming Resources System Health Insurance Innovative Programs Mentor Teachers PayforPertormance Preschool Handicapped Program Remedial Summer School Severely Emotionally Disturbed Teachers' Retirement Year 2000 Project Funding Lottery Programs Applied Technology Labs Assistive Tecnnology Computers in the Classroom Georgia Department of Community Affairs Local Assistance Grants Georgia Public Safety Training Center Law Enforcement Training Center Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 81,464,158.00 9,899,955.00 2,514,450.00 3,408,161.00 907,581.00 19,896,975.00 2,414,894.00 566,214.00 177,152.00 2,675,535.00 2,128,981.00 640,054.00 352,532.00 548,005.00 -16,614,884.00 9,514,589.00 $ 990,912.00 872,766.56 772,838.00 162,657.17 2,954.64 2,373,955.80 4,086.31 29,322.00 493,418.98 521,172.00 52,727.48 203,253.08 311,404.47 99,223.00 2,170,448.59 400,000.00 77,310.38 809,343.59 98,591.81 266,697.00 $ 81,464,158.00 9,899,955.00 2,514,450.00 3,408,161.00 907,581.00 19,896,975.00 2,414,894.00 566,214.00 177,152.00 2,675,535.00 2,128,981.00 640,054.00 352,532.00 548,005.00 -16,614,884.00 9,514,589.00 990,912.00 872,766.56 772,838.00 162,657.17 2,954.64 99,223.00 2,373,955.80 4,086.31 29,322.00 493,418.98 521,172.00 52,727.48 2,170,448.59 203,253.08 311,404.47 400,000.00 77,310.38 809,343.59 98,591.81 266,697.00 $ 4, 113,378.49 3,738,544.17 525,105.00 4,113,378.49 3,738,544.17 525,105.00 -41 RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 SCHEDULE "2" AGENCY/FUNDING CONTRACTS Education. Georgia Department of After school programs - Grades 4-8 Reading First Program - Grades K-3 1999 Georgia Teacher of the Year Award Office of Planning and Budget Georgia Council for the Arts Georgia Challenge Program OTHER Education, Georgia Department of Special Education Administrator's Conference GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 260,946.07 659,449.01 23,211.00 $ 260,946.07 659,449.01 23,211.00 37,711.28 37,711.28 500.00 500.00 $ 127,294,353.10 $9,158,548.29 $4,113,378.49 $ 140,566,279.88 See notes to the general purpose financial statements. -42- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE 3 PROJECT The general obligation debt of the district will first be retired from the proceeds of the special use tax. This will include a large portion of the bond issue of $115,000.000.00 entitled "Richmond County General Obligation School Bond Series 1996" and certain other previously outstanding general obligation bonds at an estimated cost of $124,750,000.00. The principal and interest on these bonds come due on May 1st and November 1st of each year. May 1, 1998, will be the first time the principal will come due to be retired, in part, by the sales tax. Once the application of the above funds to retirement of debt, the school board will construct, as provided in the election, a middle school, and/or an elementary school, which expenditures shall include acquiring, constructing and equipping these school buildings. In addition, to the construction of the middle and/or elementary school, the balance of the special sales tax, if any, shall be utilized to renovate, repair, improve and equip existing school buildings and other buildings and facilities. ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS $ 124,755,000.00 $ 124,755,000.00 $ 23,317,590.00 $ 37,866,676.78 25,245,000.00 25,245,000.00 509,481.14 $ 150,000,000.00 $ 150,000,000.00 $ 23,827,071.14 $ 37,866,676.78 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Richmond County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. See notes to the general purpose financial statements. -43- RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries . Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit Amount of Underexpenditure for Total Allotment FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 97,286,724.00 $ _ _2;::.i,.:;_84.:.;7.i.;9,;;.;;3"-'-4;.0.:..::....0 $ 106,942,975.75 4,455,882.51 $ _ _3;:::.i,.:.,;70::.:7..i.;3,:;_;,7"-'-1=2.::....6 $ 111,398,858.26 -1,696,398.47 $ 109,702,459.79 $ 0.00 $ =====O.=O=O See notes to the general purpose financial statements. - 45 - RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category Ill (*) 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 $ 8,503,870.00 $ 7,653,483.00 $ 0.00 23,508,796.00 21, 157,916.40 $ 32,012,666.00 90 $ 28,811,399.40 $ 0.00 10,523,266.00 90 9,470,939.40 17,223,142.00 90 15,500,827.80 11,166,726.00 90 10,050,053.40 6,899,868.00 90 6,209,881.20 3,638,490.00 90 3,274,641.00 $ 81,464,158.00 $ 73,317,742.20 $ _ _ ____;;.O;.;;..O.c...O $ 9,367,426.00 $ 8,430,683.40 $ 0.00 $ 9,367,426.00 90 $ 8,430,683.40 $ 0.00 532,529.00 90 479,276.10 $ 9,899,955.00 $ 8,909,959.50 $ - - - -0.-00 $ 2,514,450.00 90 $ 2,263,005.00 $ _ _ ____;;.O;.;;..O.c...0 $ 93,878,563.00 - - - - - - $ 84,490,706.70 $ 0.00 $ 2,722,659.00 90 $ 2,450,393.10 $ 0.00 685,502.00 100 685,502.00 $ 3,408,161.00 $ 3,135,895.10 $ _ _ ____;;.0;.;;..0.c...O Total Fourteen Weighted and Media Center Programs $ 97,286,724.00 --------- $ 87,626,601.80 $ 0.00 -- - ---- -- ----- -- - - - - - - - - -- STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development $ 294,932.00 $ 294,932.00 $ 0.00 612,649.00 612,649.00 0.00 Total Staff Development Programs (*) Identifies Fourteen Weighted Programs. $ 907,581.00 100 $ -- 9--0--7-,-5-8-1-.0--0 $ 0.00 See notes to the general purpose financial statements. 46 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 7,653,483.00 $ 8,361,596.75 $ 140,657.92 $ 8,502,254.67 21,157,916.40 22,768,628.28 700,318.05 23,468,946.33 $ 28,811,399.40 $ 31,130,225.03 $ 840,975.97 $ 31,971,201.00 $ 0.00 9,470,939.40 11,019,604.63 470,966.72 11,490,571.35 0.00 15,500,827.80 18,027,112.22 684,524.51 18,711,636.73 0.00 10,050,053.40 13,609,309.71 1,064,083.85 14,673,393.56 0.00 6,209,881.20 9, 121,496.23 34,802.83 9,156,299.06 0.00 3,274,641.00 4,441,853.97 410,888.89 4,852,742.86 0.00 $ 73,317,742.20 $ 87,349,601.79 $ 3,506,242.77 $ 90,855,844.56 $ 8,430,683.40 $ 1,158,353.21 $ 37,214.11 $ 1,195,567.32 3,393,646.11 24,329.09 3,417,975.20 5,946,958.04 57,265.55 6,004,223.59 ' 837,167.86 47,130.62 884,298.48 $ 8,430,683.40 $ 11,336,125.22 $ 165,939.37 $ 11,502,064.59 0.00 479,276.10 476,476.66 12,331.25 488,807.91 0.00 $ 8,909,959.50 $ 11,812,601.88 $ 178,270.62 $ 11,990,872.50 $ 2,263,005.00 $ 3,424,723.86 $ 22,857.87 $ 3,447,581.73 0.00 $ 84,490,706.70 $ 102,586,927.53 $ 3,707,371.26 $ 106,294,298.79 $ 2,450,393.10 $ 4,356,048.22 $ 4,356,048.22 0.00 685,502.00 - - - - - - $ 748,511.25 748,511.25 0.00 $ 3,135,895.10 $ 4,356,048.22 $ 748,511.25 $ 5,104,559.47 - - - - - - -... $ - -87- ,6-2-6-, 601 -- . 80 $ 106,942,975.75 $ 4,455,882.51 $ 111,398,858.26 $ 0.00 $ 294,932.00 612,649.00 $ 907,581.00 ------- - --- $ 522,069.69 $ 522,069.69 470,205.48 470,205.48 $ 992,275.17 $ ---- --- - -- 992,275.17 $ ---------- 0.00 --- 47 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS w. RUSSELi, HINTON STATE AUDITOR (404) 656-2174 f G "~. "'. . . . .'......-.... -~ 177b DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-84()0 February 22, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond 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 ofRichmond County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated February 22, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We did not observe the talcing ofthe consumable supplies inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance As part of obtaining reasonable assurance about whether Richmond County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete1111ination 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. 2000YB-40 Internal Control Over Financial Reporting In planning and perfo11ning our audit, we considered Richmond County Board of Education'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 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 Richmond 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-7211-00- 01. 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 no1mal course of perfo11ning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended solely for the infc,11nation and use ofmanagement, members ofthe Richmond 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-40 Ru sell W. Hinton State Auditor 0 f ...G, "'C: 1-: \0 - w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 February 22, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Richmond County Board of Education with the types of compliance requirements described in the US. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Richmond County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Richmond County Board of Education's management. Our responsibility is to express an opinion on Richmond County Board of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1m 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 Richmond County Board of Education's compliance with those requirements and perfo11ning 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 dete1n1ination on Richmond County Board of Education's compliance with those requirements. 2000SA-10 In our opinion, the Richmond County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Internal Control Over Compliance The management of Richmond 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 perfo11ning our audit, we considered Richmond County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to dete1n1ine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperfo11ning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the info1mation and use ofmanagement, me1nbers ofthe Richmond 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 2000SA-10 LO. Russell W. Hinton State Auditor SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS RICHMOND COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-7211-98-02 FS-7211-99-01 FS-7211-99-02 No Further Action Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7211-99-02 The Richmond County Board ofEducation does not maintain a syste1n-wide General Fixed Assets Account Group. The Board of Education does maintain a fixed asset property listing for all State and Federal Programs, a property inventory of all the schools' equipment as well as a schedule of all buildings required for insurance purposes. Due to budgeting limitations, it is not economically feasible to increase the administrative staffto expand our scope. SECTION IV FINDINGS AND QUESTIONED COSTS RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Richmond County Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Richmond County Board of Education disclosed a financial statement reportable condition related to the following control category. General Fixed Assets The reportable condition described above is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the Richmond County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Richmond 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 Richmond County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Richmond County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. 7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Flow Through 84.027 Individuals with Disabilities Education Act - Part B -. Georgia Leaming Resources System 84.027 Individuals with Disabilities Education Act - Part B - Severely Emotionally Disturbed 84.173 Individuals with Disabilities Education Act - Part B - Preschool 84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction - 1- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 8. Type "A'' Program Dollar Threshold The dollar threshold for type "A'' programs was $783,867.41. 9. Low Risk Auditee The Richmond County Board of Education was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7211-00-01 The Richmond County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal 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 the 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. Management's Response: The Richmond County Board of Education does not maintain a system-wide General Fixed Assets Account Group. The Board ofEducation does maintain a fixed asset property listing for all State and Federal Programs, a property inventory of all the school's equipment as well as a schedule of all buildings required for insurance purposes. We are currently working on our FY 2002 budget and are proposing a budget to hire an outside fi11n to come in and take an inventory of our general fixed assets. We plan to present a schedule of general fixed assets for FY 2002. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-