AUDIT REPORT SCHLEY COUNTY BOARD OF EDUCATION ELLAVILLE, GEORGIA YEAR ENDED JUNE 30, 1999 SCHLEY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS -OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS '6 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 7 ADDIDONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 19 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 20 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 21 DEBT SERVICE FUND COMBINING BALANCE SHEET 22 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 24 2 SCHEDULE OF STATE REVENUE 26 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 27 SCHLEY cm JNTY BOARD OF EDUCATION - TAB) E OF CONTENTS - SECTION! FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES 4 SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS 28 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 5 OVERALL 29 6 BYPROGRAM 30 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AlIDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION! FINANCIAL RLSSELL w. HINT(" STATE AUDITOR 140416562174 :'.)--I- \\'ac.,hrnf!lnn Strl'CI. S \\".. Su!lc 21-4 Atlanta. Georgia ::Hn34-X4f)(l June 2, 2000 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Schley 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 Schley County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Schley County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Board's financial 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. 99ARL-13 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Schley County Board of Education as of June 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditin~ Standards, we have also issued our report dated June 2, 2000, on our consideration of the Schley County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Schley County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules I through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, RWH:gp 99ARL-13 State Auditor SCHLEY COTJNTV BOARD OF EDTJrATION SCHLEY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 1999 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements GENERAL FUND 113,321.02 319,454.82 GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND 50.192.03 3,387.00 3,659,98227 53,932.68 875.80 626.98 Total Assets 432 775.84 $ 105 627.49 $ 3 663 369.27 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Capital Lease Agreements General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Deficit Undesignated Total Fund Equity 53,225.75 220,523.62 13,435.30 $ 47,979.04 3,731.62 9,020.00 273 749.37 $ 65146.16 $ _ __;9e.0:::2""0.""00e... $ 44,808.55 28,055.84 86 162.08 $ 159 026.47 875.80 626.98 38 978.55 40481.33 3,549,193.27 105,156.00 0.00 3 654 349.27 Total Liabilities and Fund Equity 432 775.84 $ 105 627.49 $ 3 663 369.27 The notes to the general purpose financial statements are an integral part of this statement. -2 - EXHIBIT"A" DEBT SERVICE FUND 238,896,73 44,780.94 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onlr} JUNE 30, 1999 JUNE 30, 1998 405,796.78 $ 272,580.24 3,659,982.27 418,168.44 398,435.43 $ 283,677.67 875.80 626.98 283,677.67 2,909.05 743.55 170,639.57 5,101,322.33 631 362.80 5,101,322.33 631 362.80 1,609,360.43 701 876.76 $ 283 677.67 $ 6 016 362.80 $ 10 501 813.07 $ 3 156 545.03 $ 631,362.80 5 385 000.00 75,681.05 268,502.66 3,731,82 631,362.80 5,385,000,00 $ 6 016 362.80 $ 6,364,278.33 216,355.18 266,193.30 16,412.60 701,876.76 1 780 000.00 2,980,837,84 $ 283,677.67 0,00 $ 283 677.67 44,808.55 283,677.67 28,055.84 875.80 626.98 3,549,193.27 105,156.00 125 140.63 4 137 534.74 39,647.00 4,967.92 30,095.45 2,909,05 743.55 170,639.57 -121,782.73 48 487.38 175 707.19 $ 283 677.67 $ 6 016 362.80 $ 10 501 813,07 $ 3 156 545.03 - 3- SCHLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1999 GENERAL FUND SPECIAL REVENUE FUND 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 OuUay Debt Service Principal Interest Payment to Bond Escrow Agent Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES /USES\ Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds Par Value Premiums on Bonds Sold Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food 2,327,348.57 746,796.62 30 365,84 s 3104 511,03 $ 199,210.60 408,242.96 56 981,70 664 435.26 $ 1,761,203.97 $ 61,880.99 41,340.55 72,607.83 190,517,44 140,186.93 68,713.41 231,085.25 196,391.45 15,371.00 1,577.00 109,20 70,513.96 41,585.48 331,781.44 3,523.80 26,118.86 30,364.72 3,447.88 4,370.00 6,242.60 430,77 265,491.76 7,500.00 $ 2 893 084,46 $ '$ 211426.57 $ 679 271,83 -14 836,57 $ -359,82 $ -359,82 $ 211,066.75 $ -52,040,28 359.82 359,82 -14,476,75 57,107.90 -2,033,25 -116,57 FUND BALANCE JUNE 30 The notes to the general purpose financial statements are an integral part of this statement. -4- 159 026.47 $ 40 481.33 EXHIBIT "B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Onl:t) YEAR ENDED JUNE 30 1999 JUNE 30 1998 $ 61 441.41 61441.41 $ 284,291.50 5 072.76 289,364.26 2,526,559.17 $ 408,242.96 1,031,088.12 153 861.71 4119 751.96 2,219,050.67 462,203.76 1,022,647.45 90 203.17 3 794 105.05 $ 108,568.49 55,633.00 $ $ 164201.49 $ $ -102 760.08 $ s 86,455.00 177,741.89 716.01 264 912.90 $ 24 451.36 $ 2,092,985.41 65,404.79 67,459.41 72,607,83 220,882.16 140,186.93 180,729.78 235,455.25 202,634.05 15,371.00 2,007.77 265,600.96 63,133.00 70,513.96 128,040.48 177,741.89 716.01 4 001 470.68 118281.28 2,021,344.32 82,210.27 37,007.30 11,532.47 236,279.62 109,862.77 38,635.69 195,655.56 191,679.79 14,352.00 16,968.93 260,364.45 571.92 49,060.00 126,418.97 137,907.97 682.58 3,530 534,61 263 570.44 $ $ 3,780,000.00 54,181.40 -77072.05 $ 3 757 109.35 $ $ 3,654,349.27 $ 0.00 11,514.69 $ 77,072.05 88 586.74 11,514.69 3,780,000.00 54,181.40 77,431,87 $ -77 431.87 3 845 696.09 $ 113,038.10 $ 170,639.57 3,963,977.37 $ 175,707.19 -2,033.25 -116.57 191.07 -191.07 0.00 263,570.44 -86,033,92 -1,718.06 -111.27 $ 3 654 349.27 $ 283 677.67 $ 4 137 534.74 $ 175 707.19 -5- SCHLEY 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 1999 EXHIBIT "C" REVENUES GENERAL FUND ACTUAL (BUDGET BUDGET BASIS! State Funds Federal Funds Taxes Other Funds $ 2,195,900.00 747,859.00 14,175.00 2,327,348.57 746,796.62 30,365.84 Total Revenues $ 2,957,934.00 $ 3,104,511.03 EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Ad ministration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Debt Service Total Expenditures $ 1,654,570.00 $ 1,761,203.97 64,171.41 42,990.00 72,644.00 228,886.59 127,048.00 244,549.00 193,640.00 194,701.00 15,000.00 61,880.99 41,340.55 72,607.83 190,517.44 140,186.93 68,713.41 231,085.25 196,391.45 15,371.00 1,577.00 109.20 112.099.44 $ 2,838,200.00 $ 2,893,084.46 Excess of Revenues over (under} Expenditures $ 119,734.00 $ 211.426.57' OTHER FINANCING SOURCES (USES) Other Sources Other Uses $ -359.82 Total Other Financing Sources (Uses) $ -359.82 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 119,734.00 $ 211,066.75 FUND BALANCE JULY 1 1998 -47,712.96 -52,040.28 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food -791.31 FUND BALANCE JUNE 30 1999 $ 71,229.73 $ 159,026.47 The notes to the general purpose financial statements are an integral part of this statement. -6- SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 59,387.63 $ 199,210.60 444,741.00 408,242.96 66,300.00 56,981.70 $ 570,428.63 $ 664,435.26 $ 306,792.66 $ 331,781.44 3,523.80 20,365.00 3,523.80 26,118.86 33,804.94 30,364.72 3,447.88 4,370.00 6,242.60 3,447.88 4,370.00 6,242.60 1,200.00 304,941.49 7,500.00 430.77 265,491.76 7,500.00 $ 692,188.37 $ 679 271.83 $ -121 759.74 $ -14,836.57 $ 359.82 $ 359.82 $ -121,759.74 $ -14,476.75 53,675.29 57,107.90 2,168.43 -2,033.25 -116.57 $ -65 916.02 $ 40,481.33 SCHLEY COUNTY BOARD OF EDUCATJON EXHIBIT "D" NOTES TO THE GENERAL Pl JRPOSE FINANCIAL STATEMENTS JUNE 30 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Schley 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 of all 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 of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by 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 conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to 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 of a Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives. - 7- SCHLEY COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental 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 ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of 1998 and ending in early June 1999. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. -8- SCHLEY cm JNTY BOARD OF ED1 )CATJON EXHIBIT "D" NOTES TO THE GENERAL Pl JRPOSE FINANCIAi STATEMENTS TUNE 30 1999 Note I: SUMMARY OF SIGNIFICANT ACCOl JNTING POLICIES BUDGET The Schley 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 aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this 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, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws 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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofretum 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, -9- SCHLEY COi JNTY BOARD OF EDUC ATJON EXHIBIT "D" NOTES TO THE GENERAL Pl JRPOSE FINAN Cl Al. STATEMENTS JUNE 30 1999 Note I: Sl TMMARY OF SIGNIFICANT ACCOUNTING POLICIES (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Schley County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 14, 1998 (levy date). Taxes were due on December 30, 1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Schley County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. The tax millage rate levied for the 1998 tax year (calendar year) for the Schley County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 14.48 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $283,530.78 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $1,117,557.46 has been collected or on June 30, 2002, whichever occurs first. - 10- SCHLEY Cot JNTY BOARD OF EDUCATIOJ\: EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1999 Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the goverrunent. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The Board has the following types ofinterfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in 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 of money which has not been secured by - 11 - SCHLEY COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1999 Note 2: DEPOSITS AND INVESTMENTS surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one of or any combination of the following: (I) 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 ofindebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $562,800.67. 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. - 12 - SCHLEY C01 JNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL Pl JRPOSF FINANCIAL STATEMENTS JUNE 30 1999 Note 2: DEPOSITS AND INVESTMENTS 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, 1999, as follows: Risk Category Bank Balance I $ 103,387.00 2 459,413.67 3 0.00 Total $ 562 800.67 CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value of the Board's total investments was $3,659,982.27 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the 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. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. 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 determines participant's shares sold and redeemed based on $ 1.00 per 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 of Georgia'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-term 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. Fund 6 maintains a duration of approximately one year. - 13 - SCHLEY CQl JNTY BOARD OF EDUCATJON EXHIBIT "D" NOTES TO THE GENERAL Pl [RPOSE FINANCIAL STA TEMENTS .HJNE 30 1999 Note 2: DEPOSITS AND INVESTMENTS The weighted average maturity for Georgia Fund l on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years. Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees and natural disaster. The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991 to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00. The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Superintendent All Other Employees Amill!n1 $ 8,000.00 $ 50,000.00 Note 5: GENRRAT I .ONG-TERM DEBT CAPITAL LEASES The Schley County Board of Education has entered into a lease agreement as Jessee for buildings and equipment. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception. - 14- SCHLEY COU"JTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS Tl[NE 30 1999 Note 5: GENERAL LONG-TERM DEBT ADVANCE REFUNDING During fiscal year 1999, the Schley County Board of Education used $177,741.89 in Special Local Option Sales Tax funds to advance refund $175,000.00 of outstanding bonds. The proceeds were deposited in an irrevocable trust with an escrow agent to provide for current and future debt service payments on portions of the 1993 issue. As a result, portions of the 1993 Series Bonds are considered defeased, and the liability for these portions has been removed from the General Long-Term Debt Account Group. GENERAL OBLIGATION DEBT OUTSTA'IDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1993 General Government - Series 1999 3.00% - 5.50% 4.30% - 5.00% $ 1,605,000.00 3 780 000.00 $ 5.385.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows: Capital Leases General Obligation Bonds Tot;,J) Balance July 1, I 998 $ 701,876.76 $ 1,780,000.00 $ 2,481,876.76 Additions G.O. Bonds 3,780,000.00 3,780,000.00 Deductions Bonds Defeased Payments 70 513.96 175,000.00 175,000.00 70 513.96 Balance June 30, 1999 $ 631 362.80 $ 5 385 000.00 $6,016,362.80 At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows: - 15 - SCHLEY COUNTY BOARD OF EDUCATJON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30 1999 Note 5: GENERAL LONG-TERM DEBT Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 - 2009 2010- 2014 2015 - 2019 2020 - 2024 Total Principal and Interest Deduct: Imputed Interest Net Present Value ofFuture Minimum Lease Payments Note 6: ON-BEHALF PAYMENTS Capital Leases General Obligation Bonds Total Debt $ 112,099.44 112,099.44 112,099.44 112,099.44 112,099.44 224,198.88 $ 263,132.50 298,132.50 341,645.00 343,125.00 349,257.50 2,267,262.50 2,331,103.75 1,505,941.25 I 540.172 50 $ 375,231.94 410,231.94 453,744.44 455,224.44 461,356.94 2,491,461.38 2,331,103.75 1,505,941.25 1540172.50 $ 784,696.08 $ 9,239 772.50 $10,024 468.58 153 333.28 $ 631 362.80 The Board has recognized revenues and expenditures in the amount of$63,089.57 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amountof$52,899.57 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$10,190.00 Note 7: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. - 16 - SCHLEY COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 8: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 1999 1998 1997 100% 100% 100% $ 225,405.61 $ 196,249.20 $ 180,945.38 - 17 - SCHLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 1999 EXHIBIT "E" ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES ~ LOTTERY PROGRAMS s $ 31,907.84 23,384.90 FEDERAL TOTALS PROGRAMS JUNE 30, 1999 JUNE 30, 1998 $ 55,292.74 $ 115,509.27 24,088.51 29,844.17 53,932.68 70,676.90 875.80 ~ 875.80 626.98 2,909.05 743.55 $ 57,499.13 $ 23,384.90 $ 29,844.17 $ 110,728.20 $ 189,838.77 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 5,348.24 $ 11,669.56 ---- $ 17,017.80 $ $ 3,573.52 16,124.56 3,686.82 23,384.90 5,100.71 $ 4,513.54 20,184.92 45.00 29,844.17 $ 5,100.71 13,435.30 $ 47,979.04 3,731,82 70,246.87 $ 72,826.59 43,491,68 16,412,60 132,730.87 $ 875.80 626.98 38,978,55 $ $ 40,481.33 $ 0,00 $ 0.00 $ $ 4,967,92 $ 0.00 0,00 $ 875.80 626.98 38,978.55 40,481.33 $ 2,909,05 743,55 48,487.38 57,107.90 Total Liabilities and Fund Equity $ ~ $ 23,384.90 $ 29,844.17 $ 110,728.20 $ 189,838.77 See notes to the general purpose financial statements. -18- SCHLEY COUNTY BOARD OF EDUCATION COM~INING STATEMENT OF REVENUES EXPENDITURES AND CHANGE IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30 1999 EXHIBIT "F" SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998 REVENUES State Funds Federal Funds Other Funds Total Revenues 15,204.00 $ 160,561.60 $ 23,445.00 191,297.23 216,945.73 56,981.70 s $ 263,482.93 $ 160,561.60 240,390.73 199,210.60 408,242.96 56,981.70 664,435.26 $ 211,725.51 461,892.85 50,129.49 723,747.85 EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay $ 265,491.76 7,500.00 137,819.38 $ 193,962.06 3,523.80 5,157.94 3,447.88 4,370.00 6,242.60 26,118.86 25,206.78 430.77 331,781.44 $ 3,523.80 26,118.86 30,364.72 3,447.88 4,370.00 6,242.60 430.77 265,491.76 7,500.00 333,636.44 11,749.26 21,702.35 20,890.55 3,447.84 15,618.93 260,253.95 45,126.00 Total Expenditures $ 272,991.76 $ 160,561.60 $ 245,718.47 679,271.83 $ 712,425.32 Excess of Revenues over (under) Expenditures -9,508.83 $ 0.00 -5,327.74 $ -14,836.57 $ 11,322.53 OTHER FINANCING SOljRCES Operating Transfers In 359.82 359.82 191.07 Excess of Revenues and Other Financing Sources over (under) Expenditures $ -9,508.83 $ 0.00 $ -4,967.92 -14,476.75 $ 11,513.60 FUND BALANCE JULY 1 52,139.98 0.00 4,967.92 57,107.90 47,423.63 Food Inventory - Net Change in Period Donated Commodities Purchased Food -2,033.25 -116.57 -2,033.25 -116.57 -1,718.06 -111.27 FUND BALANCE JUNE ~O $ 40,481.33 $ 0.00 $ 0.00 $ 40,481.33 $ 57,107.90 See notes to the general purpose financial statements. -19- SCHLEY COUNTY BOARD OF EDUCATION COMBINING Bt,LANCE SHEET CAPITAL PROJECTS FUND JUNE 30 1999 EXHIBIT "G" ASSETS Cash and Cash Equivalents Investments Total Assets BOND PROCEEDS 3,659,982.27 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION TOTALS JUNE 30 1999 JUNE 30 1998 114,176.00 $ 114,176.00 0.00 3 659 982.27 3,659,982.27 $ s 114176.00 $ 3 774 158.27 0.00 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 110,789.00 $ $ 110 789.00 $ $ 9 020,00 9 020.00 $ 110,789.00 9 020.00 119 809.00 $ 3,549,193.27 $ 0.00 $ 3,549,193.27 $ $ 105,156.00 0.00 105156.00 $ 3,549,193.27 105,156.00 0.00 $ 3,654,349.27 $ 0.00 0.00 Total Liabilities and Fund Equity $ 3,659,982.27 $ 114 176.00 $ 3 774158.27 $ 0.00 See notes to the general purpose financial statements. -20- SCHLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 1999 EXHIBIT"H" REVENUES BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION TOTALS YEAR ENDED JUNE 30 1999 JUNE 30, 1998 Other Funds EXPENDITURES 61 441.41 $ 0.00 $ 61,441.41 $ _ _ _ _~0-~00~ Current Support Services Business Administration Capital Outlay Building and Building Improvements Total Expenditures Excess of Revenues over (under) Expenditures 108,568.49 108,568.49 $ 55 633.00 . 55 633.00 $ 108 568.49 $ 55 633.00 $ 164 201.49 $ -47127.08 $ s -55 633.00 -102 760.08 0.00 0.00 0.00 OTHER FINANCING SOURCES (USES\ Proceeds from General Obligation Bonds Par Value Premiums on Bonds Sold Operating Transfers In Operating Transfers Out $ 3,780,000.00 54,181.40 $ -237 861.05 $ 160,789.00 3,780,000.00 54,181.40 160,789.00 -237 861.05 Total Other Financing Sources (Uses) 3,596,320.35 $ 160 789.00 $ 3 757109.35 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 3,549, 193.27 $ 105,156.00 3,654,349.27 0.00 FUND BALANCE JULY 1 0.00 0.00 0.00 0.00 FUND BALANCE JUNE 30 $ 3,549,193.27 105 156.00 $ 3 654 349.27 $ 0.00 See notes to the general purpose financial statements. -21- SCHLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 1999 EXHIBIT"!" Cash and Cash Equivalents Accounts Receivable PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30 1999 JUNE 30, 1998 93,704.21 $ 145,192.52 $ 238,896.73 $ 110,732.27 44 780.94 44 780.94 59 996.37 Total Assets 93,704.21 $ 189,973.46 $ 283,677.67 $ _ _.;.11;.;o1=2=8"'.64"'- LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUND EQUITY Fund Balances Reserved For Debt Service $ Unreserved Undesignated Total Fund Equity $ $ _ _ _~8~9~,0_7_ 93,704.21 $ 0.00 93 704.21 $ 189,973.46 $ 0,00 189 973.46 $ 283,677.67 $ 170,639.57 0.00 0.00 283 677.67 $ _ _1~7~0~6~39~.5~7_ Total Liabilities and Fund Equity $ 93,704.21 $ 189,973.46 $ s_ _ 283,677.67 1. .1.o._,.1_28.,.6.4. . . See notes to the general purpose financial statements. -22- SCHLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES D!;BT SERVIC!; FUND YEAR ENDED JUNE 30 1999 EXHIBIT"J" REVENUES Taxes Other Funds Tota! Revenues EXPENDITURES Debt Service Principal Interest Payment to Bond Escrow Agent Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Accrued Interest on Bonds Sold Operating Transfers In Total Other Financing Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30 1999 JUNE 30 1998 760.72 5 072.76 5 833.48 283,530.78 $ 283 530.78 $ 284,291.50 5 072.76 s 289 364.26 259,859.06 2 042.40 261 901.46 $ 60,000.00 86,455.00 86,455.00 92,227.50 177,741.89 177,741.89 $ 716.01 716.01 682.58 716.01 $ 264 196.89 $ 264 912.90 $ 152 910.08 5117.47 19 333.89 $ 24 451.36 $ 108 991.38 11,514.69 77 072.05 88 586.74 93,704.21 0.00 $ 11,514.69 77 072.05 $ 88 586.74 19,333.89 170 639.57 113,038.10 $ 170639.57 108.991.38 61 648.19 FUND BALANCE JUN!; 30 $ 93 704.21 $ 189 973.46 $ 283 677.67 $ 170 639.57 See notes to the general purpose financial statements. -23- SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1999 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 1999 Grant National School Lunch Program 1999 Grant Total Child Nutrition Cluster Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Total U. S. Department of Agriculture Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1999 Grant Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1988 Grant 1999 Grant Title II Eisenhower Professional Development 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant Goals2000 State and Local Education Systemic Improvement Grants 1999 Grant Total U. S. Department of Education CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 10.555 N/A NIA $ 52,865.16 131,712.78 $ 184,577.94 $ (2) 266 272.47 (3) 266,272.47 10.550 NIA $ 6,719.29 191,297.23 $ 6,719.29 272,991.76 84.027 NIA $ 40,429.99 $ 40,431.35 (3) 84.010 N/A 84.010 NIA 84.281 NIA 84.298 NIA 137,977.18 18,500.00 4,800.00 4,967.92 137,977.18 18,500.00 5,029.09 (3) 84,276 NIA $ 15 238.56 216,945.73 $ 38,812,93 (3) 245,718.47 Total Federal Financial Assistance NIA =Not Available -24- $ 408,242.96 $ 518 710.23 SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1999 Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distnbution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dunng the current fiscal year. (2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1999 National School Lunch Program. (3) Expenditures for this program indude State, and/or Other Funds. Expenditures are not maintained by fund source. Major Programs are identified by an asterisk () in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipient. The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Schley County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements. SCHEDULE "1" See notes to the general purpose financial statements. -25- SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1999 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 Sparsity Grant Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Currenl Year) Educational Equalization Funding Grant Food Services Other State Program Health Insurance Lottery Programs Assistive Technology Computers in the Classroom Human Resources, Georgia Department of Family Connection Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACT Education, Georgia Department of Reading First Program GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 1,207,732.00 183,462.00 29,105.00 55,746.00 14,128.00 358,627.00 160,948.00 40,199.00 48,119.00 151,946.00 6,665.00 28,842.00 -236,758 .00 -230,109.00 272,764.00 147,843.00 $ 52,899.57 $ 15,204.00 3,679.35 10,632.00 1,207,732.00 183,462.00 29,105.00 55,746.00 14,128.00 358,627.00 160,948.00 40,199.00 48,119.00 151,946.00 6,665.00 28,842.00 -236,758.00 -230,109.00 272,764.00 147,843.00 15,204.00 52,899.57 3,679.35 10,632.00 25,000.00 25,000.00 146,250.25 146,250.25 10,190.00 10,190.00 23,445.00 23,445.00 $ 2,327,348.57 $ 199,210.60 $ 2,526,559.17 See notes to the general purpose financial statements. -26- PROJECT Existing Debt SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 1999 SCHEDULE "3" ORIGINAL ESTIMATED COST(1) $ 1,650,000.00 $ CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS 1,650,000.00 $ 264,196.89 $ ====7=8"",2=72==19= (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion. (3) The voters of Schley County approved the imposition of a 1% sales tax to fund the above project. See notes to the general purpose financial statements. -27- SCHLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30 1999 SCHEDULE "4" EXPENDITURES Current l nstruction Support Services Pupil Services General Administration Business Admin'1stration Maintenance and Operation of Plant Student Transportation Services ASSISTIVE TECHNOLOGY COMPUTERS INTHE CLASSROOM PRE-KINDERGARTEN PROGRAM TOTAL 3,679.35 $ 10,632.00 $ 123,508.03 $ 137,819.38 3,523.80 5,157.94 3,447.88 4,370.00 6,242.60 3,523.80 5,157.94 3,447.88 4,370.00 6,242.60 Total Expenditures $ 3,679.35 $ 10,632.00 $ _ _ _ _1~4;;;6,:.:;25;:;0;;a.2~5 $ 160,561.60 RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program $ 137,686.09 3,679.35 10,632.00 8,564.16 $ 160,561.60 See notes to the general purpose financial statements. -28- SCHLEY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1999 SCHEDULE "5" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries (1) (2) Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 1,607,991.00 $ 35,579.00 $ 1,582,206.70 49,046.50 $ $ 1,631,253.20 37,602.82 -11,636.09 $ 1,619,617.11 Amount of Underexpenditure for Total Allotment $ 0.00 $ 0.00 Note: (1) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. (2) Salary accruals (July and August 1998 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. See notes to the general purpose financial statements. - 29 - SCHLEY COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND-QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1999 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten ("') Grades 1 -3 I') Sub-Total - K-3 Grades4-5 I') Grades 6 - B (') Total General and Career Education Programs SPECIAL EDUCATIQN PROGRAMS Regular Programs Category 111 (') Sub-Total Regular Category VI (Gifted)(') Total Special Education Programs REMEDIAL EDUCATION PROGRAM ('I TotaJ Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL _12.__ ORIGINAL MID-TERM 178,827.00 160,944.30 503,644.00 453,279.60 $ 682,471.00 90 $ 614,223.90 $ 198,907.00 90 179,016.30 326,354.00 90 293,718.60 $ 1,207,732.00 $ 1,086,958.80 91,168.00 91,168.00 40,778.00 131,846.00 179,789.00 $ 161,810.10 $ 0.00 $ 179,789.00 90 $ 161,810.10 $ 3,673.00 90 3,305.70 183,462.00 $ 165,115.80 $ 29,105.00 90 $ 26,194.50 $ $ 1,420,299.00 1,278,269.10 $ 0.00 0.00 0.00 131,946.00 45,423.00 90 $ 10,323.00 100 40,880.70 $ 10,323.00 $ 55,746.00 51,203.70 $ 0.00 0.00 Total Fourteen Weighted and Media Center Programs $ 1,476,045.00 $ 1,329,472.80 $ 131,946.00 STAFF DEVELOPM~NT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs r) Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. See notes to the general purpose financial statements. $ 4,459.00 $ 4,459.00 9,669.00 9,669.00 14,128.00 100 $ 14,128.00 $ (2) Salary acauals (July and August 1998 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. - 30 - 0.00 0.00 0.00 SCHEDULE "6" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES (1 )(2) OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT 160,944.30 178,685.79 7,005.06 185,690.85 544,447.60 523.527 61 13,714.40 537,242.01 705,391.90 702,213.40 20,719.46 722,932.86 0.00 219,794.30 286,943.70 8,014.39 294,958.09 0.00 293,718.60 290,814.05 7,602.89 298,416.94 0.00 1,218,904.80 s 1,279,971.15 36,336.74 1,316,307.89 $ 161,810.10 $ 161,810.10 3,305.70 $ 165,115.80 $ 26,194.50 $ 1,410,215.10 $ 193,942.23 $ 193,942.23 $ 3,050.97 196,993.20 $ 49,303.94 $ 1,526,268.29 1,216.08 1,216.08 1,216.08 50.00 $ 37,602.82 $ 195,158.31 195,158.31 3,050.97 198,209.28 49,353.94 1,563,871.11 0.00 254.73 0.00 $ 40,880.70 55,938.41 55,938.41 0.00 10,323.00 $ 11.443,68 11,443.68 0.00 51,203.70 $ 55,938.41 $ 11,443.68 67,382.09 1,461,418.80 $ 1,582,206.70 $ 49,046.50 $ 1,631,253.20 $ 254.73 4,459.00 9,669.00 3,557.49 $ 10,689.51 3,557.49 10,689.51 14,247.00 $ 14,247.00 $,==-===..;;0-a;:O;;;.O 31 - SECTION II COMPLV\NCE AND INTERNAL CONTROL REPORTS 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 of the internal control over financial reporting that, in our judgement, could adversely affect Schley County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7231-99-03. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing 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 information and use of management, members of the Schley County Board of Education, 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. ectfully submitted, ~-~ RWII:gp 99YB-40 State Auditor RUSSELL \\'. H11'\'T()i', STATE AUDITOR (404) 656-2174 ~l~';:'~-~ J~!::'Ji ~-:~"' DEPARTMEJ\T OF AUDITS AND ACCOUNTS ~5-l \\\1._,h111~1011 Sir"t'l'L S \\'.. ~ullc 214 AtLmla. Gcor~i~l -10~3-l-:qoo June 2, 2000 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Schley County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Schley County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. Schley 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 Schley County Board of Education's management. Our responsibility is to express an opinion on Schley County Board of Education's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Schley County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Schley County Board of Education's compliance with those requirements. 99SA-I0 In our opinion, the Schley County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1999. Internal Control Over Compliance The management of Schley County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Schley 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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration of the 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 of one cir more of the 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of management, members of the Schley County Board of Education, 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, ~mnw.