G,A. A-Total K-3 Grades 4 5 (") Grades6-8 (") 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 (i SUl>-Total Regular Category V (Gifted) (1 Total Special Education Programs REMEDIAL EDUCATION PROGRAM C') Total Thirteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Thirteen Weighted and Media Center Programs STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development (*) Identifies Thirteen Weighted Programs. ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL _.!_ ORIGINAL MID-TERM $ 1,042,130.00 $ 937,917.00 $ 2,379,981.00 2,141,982.90 $ 3,422,111.00 90 $ 3,079,899.90 $ 1,201,580.00 90 1,081,422.00 2,292,872.00 90 2,063,584.80 1,148,550.00 90 1,033,695.00 1,099,355.00 90 989,419.50 552,618.00 90 497,356.20 $ 9,717,086.00 $ 8,745,377.40 $ 0.00 0.00 0.00 $ 1,247,444.00 $ 1,122,699.60 $ 0.00 $ 1,247,444.00 90 $ 1,122,699.60 $ 0.00 84,504.00 90 76,053.60 $ 1,331,948.00 $ 1,198,753.20 $ 0.00 $ 467,826.00 90 $ 421,043.40 $ 0.00 $ 11,516,860.00 $ 10,365,174.00 $ 0.00 $ 324,557.00 90 $ 292,101.30 $ 0.00 92,389.00 90 83,150.10 $ 416,946.00 $ 375,251.40 $ 0.00 $ 11,933,806.00 $ 10,740,425.40 $ 0.00 $ 32,395.00 $ 32,395.00 $ 0.00 105,159.00 105,159.00 $ 137,554.00 100 $ 137,554.00 $ 0.00 See notes to the general purpose financial statements. - 34 - SCHEDULE "10" TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 937,917.00 $ 1,138,358.47 $ 35,833.10 $ 1,174,191.57 2,141,982.90 2,248,958.87 40,086.16 2,289,045.03 $ 3,079,899.90 $ 3,387,317.34 $ 75,919.26 $ 3,463,236.60 $ 0.00 1,081,422.00 1,112,884.10 29,122.66 1,142,006.76 0.00 2,063,584.80 2,225,467.99 59,371.67 2,284,839.66 0.00 1,033,695.00 1,334,360.29 199,032.33 1,533,392.62 0.00 989,419.50 947,262.75 46,790.97 994,053.72 0.00 497,356.20 619,987.10 78,369.28 698,356.38 0.00 $ 8,745,3TT.40 $ 9,627,279.57 $ 488,606.17 $ 10,115,885.74 $ 1,122,699.60 $ 4,835.44 380,781.51 $ 632,899.97 114,876.30 $ 3,023.13 4,654.15 27,356.27 4,835.44 383,804.64 637,554.12 142,232.57 $ 1,122,699.60 $ 1,133,393.22 $ 35,033.55 $ 1.168,426.n 0.00 76,053.60 76,545.39 1,512.66 78,058.05 0.00 $ 1,198,753.20 $ 1,209,938.61 $ 36,546.21 $ 1,246,484.82 $ 421,043.40 $ 684,059.96 $ 2,767.83 $ 686,827.79 0.00 $ 10,365,174.00 $ 11,521,278.14 $ 527,920.21 $ 12,049,198.35 $ 292,101.30 $ 376,596.33 $ 376,596.33 0.00 83,150.10 $ 88,358.52 88,358.52 0.00 $ 375,251.40 $ 376,596.33 $ 88,358.52 $ 464,954.85 $ 10,740,425.40 $ 11,897,874.47 $ 616,278.73 $ 12,514,153.20 $ 0.00 $ 32,395.00 105,159.00 s _ _1_3.1.._s54_.oo_ $ 118,859.43 $ 118,859.43 37,583.99 37,583.99 $ 156,443.42 $ 156,443.42 s_ _ _ _ _ _o_.oo_ - 35 - SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF COMPENSATION AND TRAVEL OF BOARD MEMBERS YEAR ENDED JUNE 30, 1995 SCHEDULE "11" BOARD MEMBER ADDRESS Mr. Steve Reeves, Chairman (*) 649 Brady Road Americus, Georgia 31709 Mr. Jerry Anthony Route 2, Highway 19 South Americus, Georgia 31709 Mr. Wayne Arrington (*) P. 0. Box 1288 Americus, Georgia 31709 Mr. J. C. Buchanan(*) 266 Buchanan Road Plains, Georgia 31780 Mr. Russ Childers (*) P. 0. Box 1547 Americus, Georgia 31709 Ms. Irene Edge (*) P. 0. Box52 Plains, Georgia 31780 Ms. Edith Ann Green (*) 311 Harvey Lane Americus, Georgia 31709 Mr. Gary Houston (*) Route 1, Box 137-8 Cobb, Georgia 31735 Ms. Lorena Sabbs (*) P. 0. Box 1185 Americus, Georgia 31709 Dr. William Tietjen Route 2, Box 192 Plains, Georgia 31780 Ms. Carolyn Whitehead (*) Route 1, Box 17 Leslie, Georgia 31764 COMPENSATION TRAVEL $ 2,400.00 $ 297.28 1,200.00 1,200.00 1,272.22 2,400.00 1,200.00 802.88 2,400.00 1,200.00 1,036.80 2,400.00 300.08 1,200.00 821.26 1,200.00 342.24 2,400.00 816.55 (*) Denotes Board Members Serving as of June 30, 1995 See notes to the general purpose financial statements. - 36 - $ 19,200.00 $ ====5=,6=89=.31= SECTION II COMPLIANCE CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 3, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Sumter County Board of Education COMPLIANCE REPORT BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. 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 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 general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance with laws, regulations, contracts, and grants applicable to Sumter County Board of Education is the responsibility of the Board's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Board's compliance with certain provisions oflaws, regulations, contracts, and grants. However, the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. 95CRL-20 Material instances of noncompliance consist of failures to follow requirements or violations of prohibitions, contained in laws, regulations, contracts, or grants, that cause us to conclude that the aggregation of the misstatements resulting from those failures or violations is material to the general purpose financial statements. The results of our tests of compliance disclosed a material instance of noncompliance, which is described in the Schedule ofFindings and Improper or Questioned Costs. As also described in the Schedule of Findings and Improper or Questioned Costs, the material instance of noncompliance noted above has been corrected in the financial statements. We considered this material instance ofnoncompliance in forming our opinion on whether the fiscal year 1995 general purpose financial statements are presented fairly, in all material respects; in conformity with generally accepted accounting principles, and this report does not affect our report dated July 3, 1996 on those general purpose financial statements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal grantor agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~;.~_; Claude L. Vickers State Auditor CLV:jy 95CRL-20 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 3, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Sumter County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH THE GENERAL REQUIREMENTS APPLICABLE TO FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. 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. We have applied procedures to test the Sumter County Board ofEducation's compliance with the following requirements applicable to each of its Federal financial assistance programs, which are listed in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995: (1) Political Activity (5) Allowable Costs/Cost Principles (2) Civil Rights (6) Drug-Free Workplace Act (3) Cash Management (7) Audit Follow-Up/Resolution (4) Federal Financial Reports (8) Administrative Requirements Our procedures were limited to the applicable procedures described in the Office of Management and Budget's "Compliance Supplement for Single Audits of State and Local Governments" and other additional procedures as deemed necessary. Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Sumter County Board of Education's compliance with the requirements listed in the preceding paragraph. Accordingly, we do not express such an opinion. 95CRL-40 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph of this report. With respect to items not tested, nothing came to our attention that caused us to believe that Sumter County Board ofEducation had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. -This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, CLV:jy 95CRL-40 ~~,;r:~ Claude L. Vickers State Auditor CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 3, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Sumter County Board ofEducation SINGLE AUDIT OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. 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. We have also audited the Sumter County Board of Education's compliance with the requirements governing: (1) Types of Services Allowed or Unallowed (5) Applicable Special Tests and Provisions (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (6) Other Requirement Claims for Advances and Reimbursements (4) Reporting These requirements are applicable to the major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance, for the year ended June 30, 1995. The management of the Sumter County Board of Education is responsible for the Board's compliance with those requirements. Our responsibility is to express an opinion on compliance with those requirements based on our audit. 95CRL-90 Except as discussed in the following paragraph, we conducted our audit of compliance in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether material noncompliance with the requirements referred to above occurred. An audit includes examining, on a test basis, evidence about the Board's compliance with those requirements. We believe-that our audit provides a reasonable basis for our opinion. We did not observe the talcing of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. However, this matter has no affect on the Board's compliance with the requirements listed in the second paragraph of this report. The results ofour audit procedures disclosed an immaterial instance of noncompliance with the requirements referred to above which is described in the Schedule of Findings and Improper or Questioned Costs. We considered this instance of noncompliance in forming our opinion on compliance, which is expressed in the following paragraph. In our opinion, the Sumter County Board of Education complied, in all material respects, with the requirements as disclosed in the second paragraph that are applicable to its major Federal financial assistance programs for the year ended June 30, 1995. This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ??~~,,,) Claude L. Vickers State Auditor CLV:jy 95CRL-90 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 3, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Sumter County Board ofEducation SINGLE AUDIT REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS APPLICABLE TO NONMAJOR FEDERAL FINANCIAL ASSISTANCE PROGRAM TRANSACTIONS Ladies and Gentlemen: We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. 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. In connection with our audit ofthefiscal year 1995 general purpose financial statements of the Sumter County Board of Education and with our consideration of the Board's control structure used to administer Federal financial assistance programs, as required by Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments", we selected certain transactions applicable to certain nonmajor Federal financial assistance programs for the year ended June 30, 1995. As required by 0MB Circular A-128, we have performed auditing procedures on the selected transactions to test compliance with the requirements governing: ( 1) Types of Services Allowed or Unallowed (2) Eligibility Our procedures were substantially less in scope than an audit, the objective of which is the expression of an opinion on the Sumter County Board of Education's compliance with these requirements. Accordingly, we do not express such an opinion. 95CRL-120 With respect to the items tested, the results of those procedures disclosed no material instances of noncompliance with the requirements listed in the second paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Sumter County Board ofEducation had not complied, in all material respects, with those requirements. This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies.. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully ~ubmitted, CLV:jy 95CRL-120 Claude L. Vickers State Auditor SECTION III INTERNAL CONTROL CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 3, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Sumter County Board ofEducation REPORT ON INTERNAL CONTROL STRUCTURE IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. 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 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 general purpose financial statements are free of material misstatement. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. The management ofthe Sumter County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation ofgeneral purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not 95ICL-4 be detected. Also, projection of any evaluation of the structure to future periods is subject to risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and performing our audit ofthe general purpose financial statements of the Sumter County Board ofEducation for the year ended June 30, 1995, we obtained an understanding of the internal control structure. With respect to the internal .control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedure for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Accounting Controls (Overall) (3) General Ledger (2) Cash and Cash Equivalents (4) General Fixed Assets A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose 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 structure would not necessarily disclose all matters in the internal control structure that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings and Improper or Questioned Costs, the following control categories include reportable conditions that are also considered to be material weaknesses: (1) Accounting Controls (Overall) (3) General Fixed Assets (2) General Ledger These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Sumter County Board of Education's financial statements and this report does not affect our report thereon dated July 3, 1996. 95ICL-4 This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~.. , ; r . ~ Claude L. Vickers State Auditor CLV:jy 95ICL-4 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 3, 1996 Honorable Zell Miller, Governor Members of the General Assembly Members ofthe State Board ofEducation and Superintendent and Members of the Sumter County Board ofEducation SINGLE AUDIT REPORT ON THE INTERNAL CONTROL STRUCTURE USED IN ADMINISTERING FEDERAL FINANCIAL ASSISTANCE PROGRAMS Ladies and Gentlemen: We have audited the general purpose financial statements of the Sumter County Board of Education as of and for the year ended June 30, 1995, and have issued our report thereon dated July 3, 1996. 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. We have also audited the Sumter County Board of Education's compliance with requirements applicable to major Federal financial assistance programs and have issued our opinion thereon dated July 3, 1996. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards; Government Auditing Standards, issued by the Comptroller General of the United States; and the provisions of Office of Management and Budget (0MB) Circular A-128, "Audits of State and Local Governments". Those standards and 0MB Circular A-128 require that we plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement and about whether the Sumter County Board of Education complied with laws and regulations, noncompliance with which would be material to a major Federal financial assistance program. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1995, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. In planning and performing our audit for the year ended June 30, 1995, we considered the Board's internal control structure in order to determine our auditing procedures for the purpose of expressing our opinions on the Board's general purpose financial statements and on its compliance with requirements applicable to major 95ICL-8 Federal financial assistance programs and to report on the internal control structure in accordance with 0MB Circular A-128. This report addresses our consideration of internal control structure policies and procedures relevant to compliance with requirements applicable to Federal financial assistance programs. We have addressed internal control structure policies and procedures relevant to our audit of the general purpose financial statements in a separate report dated July 3, 1996. The management ofthe Sumter County Board ofEducation is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that, assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles, and that Federal financial assistance programs are managed in compliance with applicable laws and regulations. Because of inherent limitations in any internal control structure, errors, irregularities, or instances of noncompliance may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures used in administering Federal financial assistance programs in the following control categories: GENERAL REQUIREMENTS SPECIFIC REQUIREMENTS (1) Political Activity (2) Civil Rights (3) Cash Management (4) Federal Financial Reports (I) Types of Services Allowed or Unallowed (2) Eligibility (3) Matching, Level of Effort, and/or Earmarking (5) Allowable Costs/Cost Principles (4) Reporting (6) Drug-Free Workplace Act (7) Audit Follow-Up/Resolution (8) Administrative Requirements (5) Applicable Special Tests and Provisions (6) Other Requirement Claims for Advances and Reimbursements For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and determined whether they have been placed in operation, and we assessed control risk. 95ICL-8 During the year ended June 30, 1995, the Sumter County Board of Education expended 76% of its total Federal financial assistance under major Federal financial assistance programs. We performed tests of controls, as required by Oivffi Circular A-128, to evaluate the effectiveness of the design and operation of internal control structure policies and procedures that we considered relevant to preventing or detecting material noncompliance with general requirements and specific requirements as described above that are applicable to each of the Board's major Federal financial assistance programs, which are identified in the Schedule of Federal Financial Assistance. Our procedures were less in scope than would be necessary to render an opinion on these internal control structure policies and procedures. Accordingly, we do not express such an opinion. We noted certain matters involving the internal control structure and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control structure that, in our judgment, could adversely affect the Board's ability to administer Federal financial assistance programs in accordance with applicable laws and regulations. As described in the Schedule ofFindings and Improper or Questioned Costs, reportable conditions were noted in the following control categories: (1) Administrative Requirements (2) Applicable Special Tests and Provisions A material weakness is a reportable condition in which the design or operation of one or more of the internal control structure elements does not reduce to a relatively low level the risk that noncompliance with laws and regulations that would be material to a Federal financial assistance program 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 structure policies and procedures used in administering Federal financial assistance would not necessarily disclose all matters in the internal control structure that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses as defined above. However, as described in the Schedule of Findings arid Improper or Questioned Costs, the following control category includes reportable conditions that are also considered to be material weaknesses: Administrative Requirements These conditions were considered in determining the nature, timing, and extent of the procedures to be performed in our audit of the Sumter County Board of Education's compliance with requirements applicable to its major Federal financial assistance programs for the year ended June 30, 1995, and this report does not affect our report thereon dated July 3, 1996. 95ICL-8 This report is intended for the information of management, the Federal cognizant audit agency and other Federal granter agencies and should not be used for any other purpose. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, /4-~~ Claude L. Vickers State Auditor CLV:jy 95ICL-8 SECTION IV FINDINGS AND IMPROPER OR QUESTIONED COSTS SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 FINDINGS TRANSFERRED FROM CITY OF AMERICUS BOARD OF EDUCATION AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $30,317.80 Audit Control Number 7601-93-04 The audit report for the year ended June 30, 1993, reported that the City of Americus Board ofEducation had an underexpenditure of Quality Basic Education (QBE) funds of $30,317.80 for the Staff Development Professional Development Stipends Program. For the year under review, no adjustment was made to the Sumter County Board ofEducation's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $30,317.80 should be returned to the Georgia Department ofEducation through an increase in the Sumter County Board of Education's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $38,763.00 Audit Control Number 7601-94-01 The audit report for the year ended June 30, 1994, reported that the City of Americus Board of Education had an underexpenditure of Quality Basic Education (QBE) funds of $38,763.00 for the Staff Development Professional Development Stipends Program. For the year under review, no adjustment was made to the Sumter County Board ofEducation's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of $38,763.00 should be returned to the Georgia Department ofEducation through an increase in the Sumter County Board ofEducation's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Reimbursement Requisitions not Supported by Accounting Records Federal Financial Assistance Amount: $588.13 Audit Control Number 7601-94-03 The audit report for the year ended June 30, 1994, reported that the City of Americus Board of Education received $588.13 from the Georgia Department ofEducation for the National School Lunch Program (CFDA 10.555), as reimbursements of meals served at the Eastview Center in excess of maximum allowable reimbursements which could have been claimed by the Board. The $588.13 questioned cost should be refunded to the Georgia Department ofEducation. Additionally, the Georgia Department of Education should review this matter to determine if additional amounts should be refunded. - 1- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 FINDINGS TRANSFERRED FROM CITY OF AMERICUS BOARD OF EDUCATION AUDIT FOLLOW-UP/RESOLUTION Failure to Maintain Schoolwide Project Expenditure Documentation Federal Financial Assistance Finding Resolved Audit Control Number 7601-94-04 The audit report for the year ended June 30, 1994, stated that the City of Americus Board ofEducation could not provide documentation sufficient to determine iffunds expended per pupil in a Schoolwide project equaled or exceeded the amount of funds expended per pupil served in the Board's other schools for the Elementary and Secondary Education Act - Chapter 1 (CFDA 84.010) program as required by 34 CFR 200.36(c)(l)(I). The Georgia Department of Education has reviewed this matter and in a letter dated December 4, 1995, determined that a reclaim of funds is not appropriate. PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Improper Expenditure Financial Statements Amount: $12,693.79 Audit Control Number 7291-93-01 The audit report for the year ended June 30, 1989, reported improper expenditures of $20,039.95 by the Board for miscellaneous expenditures of the Sumter County High School activity account. At June 30, 1994, reimbursements had been received which reduced the balance to $13,693.79. In the year under review, reimbursement of $1,000.00 was secured and deposited to the Board's General Fund. Appropriate action should be taken by the Board to secure reimbursement ofthe remaining balance of $12,693. 79 for deposit to the Board's General Fund. AUDIT FOLLOW-UP/RESOLUTION Inadequate Inventory Records Federal Financial Assistance Finding Resolved Audit Control Number 7291-93-08 The audit report for the year ended June 30, 1994, stated that the Board's property management records for the Elementary and Secondary Educational Act - Chapter 1 program (CFDA 84.010) were incomplete and failed to meet property standards as set forth in Chapter 8 of the Georgia Financial Accounting Handbook for Local School Systems (GFAH). During the year under review, the Board installed a property management system which meets Federal property management standards as set forth in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA), which superseded Chapter 8 of the Georgia Financial Accounting Handbook for Local Systems. -2- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $10,171.53 Audit Control Number 7291-94-01 The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$10,171.53 for the StaffDevelopment - Professional Development Stipends Program. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department ofEducation to refund this underexpenditure as required. The underexpenditure of $10,171.53 should be returned to the Georgia Department ofEducation through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Failure to Meet Expenditure Requirements Financial Statements Amount: $948.02 Audit Control Number 7291-94-02 The audit report for the year ended June 30, 1994, reported that the Board had an underexpenditure of Quality Basic Education (QBE) funds of$948.02 for the operations portion of the Special Education Programs. For the year under review, no adjustment was made to the Board's local fair share by the Georgia Department of Education to refund this underexpenditure as required. The underexpenditure of$948.02 should be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. AUDIT FOLLOW-UP/RESOLUTION Failure to Refund Unexpended Balance Financial Statements Finding Resolved Audit Control Number 7291-94-03 The audit report for the year ended June 30, 1994, reported the Board failed to refund the unexpended balance of $22,396.39 for the Lottery Programs - Pre-Kindergarten Program at June 30, 1994. This unexpended balance had not been resolved at June 30, 1995. However, a refund of $22,396.39 was made by the Board in the subsequent fiscal period and this amount is included in Accounts Payable as shown in the Combined Balance Sheet, Exhibit "A" ofthis report. -3- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR AUDIT FOLLOW-UP/RESOLUTION Time and Attendance Records Not Utilized Federal Financial Assistance Amount: $28,377.13 Audit Control Number 7291-94-04 The audit report for the year ended June 30, 1994, reported that a review of the director's salary charged to the Elementary and Secondary Education Act - Chapter 1 Program (CFDA 84.0 I0) revealed that expenditures were not supported by time and attendance records as required by Chapter 41 ofthe Financial Management for Georgia Local Units ofAdministration. In the year under review, procedures were implemented to ensure time and attendance records were maintained as required. The Georgia Department of Education should review this matter to determine ifa reclaim offunds is appropriate. PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements AO:MINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Separation ofDuties Reportable Condition -Material Weakness Audit Control Number 7291-93-03 The audit report for the year ended June 30, 1994, stated that the Board did not provide for adequate separation of employee duties in the performance ofaccounting functions and related procedures for all funds. In the year under review, the Board made some improvements regarding separation of employee duties, but still did not achieve an adequate degree of internal control. This deficiency was a result of management's decision to limit the number of administrative staff made responsible for accounting functions. Appropriate internal controls should be established by the Board to provide for adequate separation of employee duties in the performance of accounting functions and related procedures for all funds. Note: All federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule "I " of this report, are affected by this finding. -4- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR/CURRENT YEAR GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Financial Statements Reportable Condition - Material Weakness Audit Control Number 7291-93-05 The audit report for the year ended June 30, 1994, noted that the management of the Sumter County Board ofEducation had chosen not to maintain a system wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. In the year under review, the B~ard did not establish a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiaiy 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. ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 7291-93-06 The audit report for the year ended June 30, 1994, disclosed weaknesses in internal controls and accounting procedures. For the year under review, the records as presented for audit had the following deficiencies: (I) Cash and Cash Equivalents (a) Bank reconciliations were not reviewed by an administrative officer independent of cash operations. (b) Excessive hand drawn checks were issued for both operating and payroll accounts and were not posted to the accounting system in a timely manner. (c) Numerous vendor and payroll checks were issued out of sequence. (d) Outstanding checks from previous fiscal years were not followed-up on a timely basis. (2) General Ledger (a) Numerous journal entries made to the accounting records were not approved by supervisory personnel. These deficiencies were the result ofmanagement's failure to implement procedures which provide an adequate degree of internal control over the assets of the Board. Appropriate action should be taken to strengthen the internal accounting controls and appropriate procedures should be implemented to correct these deficiencies. - 5- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 PRIOR YEAR/CURRENT YEAR ACCOUNTING CONTROLS (OVERALL) - Financial Statements ADMINISTRATIVE REQUIREMENTS - Federal Financial Assistance Inadequate Accounting Procedures Reportable Condition - Material Weakness Audit Control Number 7291-93-06 Note: All Federal financial assistance programs listed in the Schedule ofFederal Financial Assistance, Schedule ",11' ofthis report, are affected by this finding. CURRENT YEAR CASH AND CASH EQUIVALENTS Uncollateralized Deposits Financial Statements Reportable Condition Nonmaterial Noncompliance Audit Control Number 7291-95-01 As of June 30, 1995, the Sumter County Board of Education failed to have its bank balances fully collateralized as provided for by the Official Code ofGeorgia Annotated Section 45-8-12 which states, in part, as follows: "The collecting officer or officer holding public funds may not have on deposit at any one time in any depository for a time longer than ten days a sum of money belonging to the public body when such depository has not given a bond to the public body as set forth in this Code section... The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance." This noncompliance occurred because of management's failure to adequately monitor the collateralization of balances at individual banks. The Board should implement adequate procedures to monitor the collateralization of bank balances to ensure compliance at all times with State Laws governing deposits and investments. -6- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 CURRENT YEAR GENERAL LEDGER Failure to Record Program Activity Financial Statements Reportable Condition - Material Weakness Audit Control Number 7291-95-02 During the year under review, the Board failed to record the financial activity ofthe local After School Time Enrichment Program within the Board's accounting records. A correcting audit adjustment was necessary to record the activity ofthis program into the Board's financial statements. This condition occurred because of management's failure to ensure that all financial activity was included in the Board's accounting records. The Board should implement procedures to ensure that the financial activity ofthe local After School Time Enrichment Program is recorded in the formal accounting records. GENERAL LEDGER Failure to Transfer Local Matching Funds Financial Statements Material Noncompliance Audit Control Number 7291-95-03 The Board failed to transfer local matching funds from the General Fund to the Capital Projects Fund as required for the approved State Capital Outlay Project for the 1995 fiscal year. Both the instructions in Chapter 41 ofthe Financial Management for Georgia Local Units of Administration and the agreement signed by the Board to receive funding through Georgia State Financing and Investment Commission require that the Board transfer local matching funds by year end and designate those funds by project name and number. A correcting audit adjustment was necessary to transfer $57,235.00 from the General Fund to GSFIC Project No. 96-729-063 as required. APPLICABLE SPECIAL TESTS AND PROVISIONS Failure to Invite Private Schools to Participate Federal Financial Assistance Major Program Reportable Condition Nonmaterial Noncompliance Audit Control Number 7291-95-04 For the year under review, the Board could not provide documentation supporting contact with all private schools in the area inviting them to participate in the Elementary and Secondary Education Act - Chapter 1 Education ofDeprived Children Program (CFDA 84.010) as required by 34 CFR 200.34 which states, in part, as follows: -7- SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND IMPROPER OR QUESTIONED COSTS YEAR ENDED JUNE 30, 1995 CURRENT YEAR APPLICABLE SPECIAL TESTS AND PROVISIONS Failure to Invite Private Schools to Participate Federal Financial Assistance Major Program Reportable Condition Nonrnaterial Noncompliance Audit Control Number 7291-95-04 "An LEA may receive funds under this part only ifit implements programs, activities, and procedures for the involvement ofparents ofparticipating, public and private school children. This involvement must include, but is not limited to, parent input into the planning, design, and implementation ofthe Chapter I LEA Program." This deficiency was the result ofthe Board's failure to maintain adequate records to document contact with all private schools in the area. Appropriate internal controls should be established by the Board to ensure that private school involvement provisions provided for in the approved application are followed. Additionally, the Georgia Department of Education should. review this matter to determine if a reclaim of funds is appropriate. Note: The Sumter County Board ofEducation was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report. - 8-