Audit report, Sumter County Board of Education, Americus, Georgia, year ended June 30, 1997

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AUDIT REPORT SUMTER COUNTY BOARD OF EDUCATION
AMERICUS, GEORGIA YEAR ENDED JUNE 30, 1997
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

SUMTER 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

EXIDBITS

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

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

22

2 SCHEDULE OF STATE REVENUE

24

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

25

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

27

5

BY PROGRAM

28

SUMTER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
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 AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION III 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 I FINANCIAL

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
July 13, 1998

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 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 Sumter County Board of Education, as of and for the year ended June 30, 1997, as listed in the table of contents. These generalpurpose financial statements are the responsibility of the Sumter County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 1997, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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:

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* The general-purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1997, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1997. Also funds received, subsequent to June 30, 1997, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1996, were improperly recorded in the year ended June 30, 1997. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and 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 Sumter County Board of Education as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated July 13, 1998, on our consideration of the Sumter 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 Sumter County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general-purpose financial statements taken as a whole.
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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,

CLV:gp 97ARL-13

Claude L. Vickers State Auditor

SUMTER COUNTY BOARD OF EDUCATION

SUMTER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1997

ASSETS
Cash and Cash Equivalents
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

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,945,006.94 $ 1,094,217.79 $

0.00

223,401.75

430,512.06

46,868.46 41,753.71

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages 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 State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 3,168.408.69 $ 1,613,352.02 $ = = = = = 0.0= 0

$

103,155:69 $

133,767.92

377,703.52

14,869.41

$

103,155.69 $ 526,340.85

$

74.30

46,868.46 41,753.71

$ 3,065,253.00

998,314.70 $

$ 3,065,253.00 $ 1,087,011.17 $

0.00 0.00

Total Liabilities and Fund Equity

$ 3,168,408.69 $ 1,613,352.02 $~=----====o...o..o.=

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

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 1997

JUNE 30, 1996

$

366,774.62

$ 4,405,999.35 $ 4,014,142.49

7,468.05

661,381.86

832,534.17

46,868.46 41,753.71

35,331.18 32,037.36

$

374,242.67

374,242.67

334,797.06

3,015,757.33 159,862.72

3,015,757.33 159,862.72

3,260,202.94 267,190.13

$

374,242.67 $

3,549,862.72 $ 8,705,866.10 $ 8,776,235.33

$

236,923.61 $

302,905.30

377,703.52

367,314.62

14,869.41

3,632.41

135,615.72

54,403.90

$

159,862.72

159,862.72

267,190.13

3,390,000.00

3,390,000.00

3,595,000.00

$

3,549,862.72 $ 4,179,359.26 $ 4,726,062.08

$

374,242.67

0.00

$

374,242.67

$

95,852.76

$

74.30

3,327.73

374,242.67

334,797.06

49,882.55

46,868.46 41,753.71

35,331.18 32,037.36 38,881.51

4,063,567.70

3,460,063.10

$ 4,526,506.84 $ 4,050,173.25

$

374,242.67 $

3,549,862.72 $ 8,705,866.10 $ 8,776,235.33

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SUMTER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1997

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
The notes to the general purpose financial statements are an integral part of this statement.
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GENERAL FUND

SPECIAL REVENUE
FUND

$ 18,429,635.57 $ 89,444.69
6,213,022.08 341,049.99
$ 25,073,152.33 $

1,579,025.41 4,212,550.60
302,390.46
6,093,966.47

$ 15,602,142.54 $
960,586.12 650,433.06 571,147.41 306,309.52 2,118,330.00 331,352.82 1,984,608.85 1,325,334.17
49,607.44 119,499.49
107,791.09 508,577.84
188,240.34 19,923.09

2,763,513.28 179,645.30 275,870.08 136,069.25
63,578.74 62,736.50 17,465.44 75,698.39 2,378,059.88
51,082.32

$ 24,843,883.78 $

$

229,268.55 $

6,003,719.18 90,247.29

$

135,000.02

$

-2,216.64

$

132,783.38 $

2,216.64 2,216.64

$

362,051.93 $

2,703,201.07

92,463.93 973,293.61

11,537.28 9,716.35

$ 3,065,253.00 $ ==1=,0=8==7=,0=1=1.=17=

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30, 1997

JUNE 30, 1996

$

0.00

$ 20,008,660.98 $ 19,834,822.31

4,301,995.29

4,189,332.61

$

392,644.69

6,605,666.77

6,109,250.65

6,390.92

649,831.37

646,469.17

$

0.00 $

399,035.61 $ 31,566,154.41 $ 30,779,874.74

$ 18,365,655.82 $ 17,341,848.89

$

38,881.51

1,140,231.42 926,303.14 571,147.41 442,378.77
2,118,330.00 331,352.82
2,048,187.59 1,388,070.67
67,072.88 195,197.88 2,378,059.88 107,791.09 547,459.35

1,101,792.01 806,850.18 540,594.47 462,637.39
1,900,537.39 302,476.07
1,952,048.15 1,378,468.55
131,088.87 187,270.07 2,269,987.72
93,742.75 899,649.35

$

205,000.00

153,866.25

723.75

444,322.66 173,789.34
723.75

406,646.16 190,070.84
721.66

$

38,881.51 $

359,590.00 $ 31,246,074.47 $ 29,966,430.52

$

-38,881.51 $

39,445.61 $

320,079.94 $

813,444.22

$

135,000.02

2,216.64 $

32,765.00

-2,216.64

-32,765.00

$

135,000.02 $

0.00

$

-38,881.51 $

39,445.61 $

455,079.96 $

813,444.22

38,881.51

334,797.06

4,050,173.25

3,235,888.38

11,537.28 9,716.35

-7,109.86 7,950.51

$

0.00 $

374,242.67 $ 4,526,506.84 $ 4,050,173.25

-5-