Audit report, Sumter County Board of Education, Americus, Georgia, year ended June 30, 1999

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AUDIT REPORT SUMTER COUNTY BOARD OF EDUCATION
AMERICUS, GEORGIA YEAR ENDED JUNE 30, 1999

.l

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

RECEIVED
JUL 1 9 200.0
llCD'/\ocI u,rm- ents

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 EXPENDmJRES 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, EXPENDmJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDmJRES 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

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDmJRES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDmJRES

AND CHANGES IN FUND BALANCES

25

DEBT SERVICE FUND

0

I

COMBINING BALANCE SHEET

26

0

J

COMBINING STATEMENT OF REVENUES, EXPENDmJRES

~

AND CHANGES IN FUND BALANCES

l

27

:::J"

5

SCHEDULES

1 SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

4 SCHEDULE OF EXPENDmJRES

LOTTERY PROGRAMS

32

SUMTER COUNTY BOARD OF EDUCATION - TABLE OF CONrENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDmJRE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

33

6

BYPROGRAM

34

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

SECTIONm 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
\

w. RUSSELL HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254_ Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 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 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, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Sumter County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General ofthe United States. Those standards require that we plan and -
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, 1999, 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:

99ARL-13

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, 1999, a portion of salaries and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department ofEducation 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, 1998, were improperly recorded in the year ended June 30, 1999. 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 ofthese variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects ofsuch adjustments, ifany, 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 ofEducation as ofJune 30, 1999, and the results ofits 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 May 2, 2000, on
our consideration ofthe Sumter County Board ofEducation's internal control over financial reporting and our tests ofits 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 through J) and the financial schedules (Schedules 1 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 ofthe 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.
99ARL-13

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.
___spectfully submitted,
i.6.4~

RWH:jb 99ARL-13

State Auditor

SUMTER COUNTY BOARD OF EDUCATION

S!.!M!l;B ~OUtfi):'.1:!QARD QE sQ!.!~6!10t:f
COMBINsD BALAN~s Sl:!Efil
&b Fb!~Q MES AND ACCQ!.!lil ~BQ!.!e
J!,!Ns 30, 1999

ASSETS
cash and cash Equivalents
Investments
Accounts Receivable
Prepaid Items
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
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 4,469,620.16 $ 1,149,659.12

345,046.14 $

.7,528.56

416,339.05

360,040.97

4,495,500.00

1,488,097.75

63,011.40 33,826.76

s

4,885,959.21 $ 11ss1 1584.39 $

51991 1126.31

blMlblTll;S ~D f!.!t:fQ s.Q!.!IIX
bl@ILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable. Retalnages Payable Cspital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND sO!.!IIX
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Prepaid Items For Purpose of Bond Issue For SPLOST Projecls For State capital Outlay Projecl8 Unreserved Undeslgnated
Total Fund Equity

$

ns,967.38

$

s 258,861.13

255,745.37

3,765.70

400,594.28

3,320.74

801,084.78

726,897.03

s

s 258.861.13

s 659.660.39

2.310-714.89

$

3,076.29

63,011.40 33,826.76
s

1,488,097.75 1,698,485.57
493,828.10

s 4.&27.098.08

1.192.009.55

s 4.627.098.08 $ 1291.924.00 $

0.00 3.680.411.42

Total Liabilities and Fund Equity

s

The nol8s to the general purpose financial statements are an Integral part of this statement.

-2-

4,885,959.21 $ 11951 1584.39 $

s,991 112&.31

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On!)'.}

JUNE 301 1999

JUNE 301 1998

$

111,594.87

$ 5,730,874.15 $ 7,610,954.62

1,494,371.41

1,846,946.11

6,957,813.70

597,679.14

5,869,559.16

1,244,071.07

1,488,097.75

s

2,203,645.42

63,011.40 33,826.76
2,203,645.42

38,869.12 32,124.53
2,003,000.93

9,066,354.58 46,174.12

9,066,354.58 46,174.12

11,471,999.07 98,304.03

$

212031645.42 $

s s 1113161174.12

2613481489.45

2914571137 .07

s

ns,967.38

s 518,372.20

805,169.63

400,594.28

385,758.84

3,320.74

235.26

801,084.78

187,989.06

726,697.03

58,676.70

$

46,174.12

46,174.12

98,304.03

11~0,000.00

11~1000.00

1314751000.00

$

s 1113161174.12 $ 14,545,410.53

1510111133.52

s 2,203,645.42
0.00 $ 2,203,645.42

$

262.88

$

3,076.29

2,203,645.42

2,003,000.93

83,011.40 33,826.76 1,488,097.75 1,698,485.57 493,828.10

38,869.12 32,124.53
5,246,516.07
2,621,080.00

5,819,107.63

4.504.150.02

$ 11,803,078.92 $ 14,446,003.55

$

2i2931645.42 $

s 11-3151114.12

2613481489.45 $ 2914571137.07

-3-

SUMTER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1999

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)
ACCl'\led Interest on Bonds Sold Premium on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers 0ut
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

GENERAL FUND

.SPECIAL REVENUE
FUND

$ 20,922,353.56 $ 74,732.16
7,347,197.49 4421973.56
$ 2817871256.77 $

1,428,960.52 4,512,630.21
3621295,55
613031886.28

$ 17,998,812.00 $
1,128,106.33 906,525.83 633,325.44 328,925.71
2,195,542.78 225,325.54
2,329,797.59 1,463,863.27
10,727.38 120,043.04
136,380.98 1,954.00
52,129.91 5,732.05

2,587,406.09
431,077.34 290,644.19
131,840.54
36,475.37 58,705.92
78,204.49 2,574,264.43
47,561.81

$ 2715371191.85 $ 612361180.18

$ 1.2501064.92 $

67t706.10

$ 1,250,064.92 $

67,706.10

3,377,033.16

1,198,373.39

24,142.28 1i702.23

FUND BALANCE JUNE 30
The notes to the general purpose financial statements are an Integral part of this statement -4-

$ 4,621,098.08 $ 11291 1924.oo
...

EXHIBITa

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS {Memorandum Onl:tl
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 4,495,500.00

$ 26,846,814.08 $ 21,001,882.30

4,587,362.37

4,241,540.35

486,253.36 $ 3,081,595.19

10,915,046.04

9,220,247.96

157,845.90

80,153.84

1,043,268.85

1,283,898.46

$ 5,139,599.26 $ 3,161,749.03 $ 43,392,491.34 $ 35,747,569.07

$ 9,326,783.91 $
$ 9,326.783.91 $ $ -4,187,184.65 $

$ 20,586,218.09 $

1,559,183.67 1,197,170.02
633,325.44 460,766.25 2,195,542.78 225,325.54 2,366,272.96 1,522,569.19
10,727.38 198,247.53 2,574,264.43 183,942.79 9,328,737.91

2,205,000.00 755,365.00 739.54

2,257,129.91 761,097.05 739.54

2,961,104.54 $ 46,061,260.48 $

200,644.49 $ -2,668,769.14 $

18,099,095.35
2,578,383.93 1,005,815.96
589,964.05 461,425.45 2,041,362.26 495,055.35 2,140,543.96 1,423,865.59
54,932.37 186,644.14 2,479,331.56 141,242.70 2,228,406.41
1,222, 138.70 521,634.23 738.96
35,670,580.97
76,988.10

$

17,849.38

2,287.75

-9,840,000.00 136,615.28 -136,615.28

$ 9,860,137.13

$ -4,187,184.65 $ 7,867,596.07

200,644.49 $ -2,668,769.14 $

2,003,000.93

14,446,003.55

9,937,125.23 4,526,506.84

24,142.28 1.702.23

-7,999.34 -9,629.18

$ 3,680.411.42 $ 2,203,645.42 $ 11.803.078.92 $ 14.446.003.55 -5-

SYM!ER QQ!.!NTY BQARg QE ED!.!CAIIQH QQMBlt::ll;!2 STATl;Ml;t::l! QE REVEN!JES, ~el;t::l!21I!.!Rl;S ANl2 QHAl':J~l;S 11':J E!.!Hl2 BALAHQl;S
BYDGfil: AHl2 ACT!.!Ab - (t:JQH~MP BASIS) GENl;B&, 8!'::112 se1;Ql8b BEVl;NUI; E!.lt:1125
YEAR ENDl;D JUt:JI; 30, 1999

EXHIBIT c-

BEYJ;NYl;S
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
Total Expenditures
Excess of Revenues over (under) Expenditures
FUNQ BAbANQI; JUbY 1, 199~
Adjustments Food Inventory - Net Change In Period
Donated Commodities Purchased Food

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASISl

$ 22,241,862.00 $ 20,922,353.56

38,084.00

74,732.16

6,512,500.00

7,347,197.49

124,872.00

442,973.56

$ 28,917,318.00 $ 2a,1a1,2ss.n

$ 17,863,111.00 $ 17,998,812.00

1,345,308.00 749,873.00 646,942.00
323,876.00 2, 193,335.00
260,350.00 2,2TT,921.00 1,496,309.00
72,212.00 125,418.00

1,128,106.33 906,525.83 633,325.44 328,925.71
2, 195,542.78 225,325.54
2,329,797.59 '1,463,863.27
10,727.38 120,043.04

136,380.98 1,954.00
57,861.96

$ 27,3541655.00 $ 27,537,191.85

$ 1,562,683.00 $ 1,250,064.92

3,216,819.45

3,3TT,033.16

. 720.00

SPECIAL.REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASISl

$ . 1,092,122.89 $ 1,428,960.52

3,879,723.00

4,512,630.21

537,952.00

362,295.55

$ 5,509,797.89 $ 6,303,886.28

$ 2,073,416.89 $ 2,587,406.09

155,670.00 23a,ns.oo

431,0TT.34 290,644.19

147,498.00

131,840.54

29,915.00
91,715.00 2,683, 195.00
94,438.00

36,475.37 58,705.92
78,204.49 2,574,264.43
47,561.81

$ 5,514,623.89 $ 6,236,180.18

$

-4,826.00 $

67,706.10

1,303,381.50

1, 198,373.39

-70,867.39

24,142.28 1,702.23

E!.IHl2 BAAt:JQI; JUN!; 30, 1999

$ 4,780,202.45 $ 4,627,098.08

$ 1,227,688.11 $ 1,291,924.00

The notes to the general purpose financial statements are an Integral part of this statemenl -6-

. .

-.

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, i999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Sumter County Board ofEducation (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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid :financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a :financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.

General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To 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 ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the ~unt group presented in this report are as follows:

GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:

GENERAL FUND - the fund used to account for all financial resources ofthe Board ~xcept 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 ofspecific 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-

SUMTER COUNTY BOARD OF EDUCATION.

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIBS

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 outstrnding 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 ofavailable 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 I.orig-Term Debt Account GrQup; .



Governmental funds are accounted for using the modified accrual basis ofaccounting under which:

Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). . "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within
the current period or soon enough thereafter to be used to p~y liabilities ofthe currentperiod. Thoserevenues considered susceptible to accrual. are property taxes, local option sales taxes, intergovernmental grants and investment income.

Expenditures are generally recognized when the related fund liability is incurred.

A departure from the above definitions. is the accounting treatment,afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department .
of Education for the State's share of these contracts. During fiscal year 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period 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 ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1999, compensation under these employment
. -8-

SUMTER COUNTY BoAR,D OF EI>UCATION

EXHIBIT "D"

NOTES TO. THE GENERALJUPNUER3P0O,SiE99F9INANCIAL; STATEMENTS

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Sumter County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prep~ by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board'~ administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe 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 ofEducation. 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
COMPOSITTON 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 associatjons.
INVESTMENTS
COMPOSITTON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note t: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

invest its funds. In selecting among options for investment or among institutional bids for deposits, the
highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may
be invested in the following: _

(1) Obligation~ issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime b~er's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal_Services,

(7) Repurchase agreements, and

(8) Obligations ofother political subdivisions ofthe State of Georgia.

RECEIVABLES

Receivables consist ofgrant reimbmsements due on Federal, State or oth~ grants for expenditures made but

not reimbmsed 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 whichwould necessitate the need for an allowance for

uncollectible receivables.



PROPERTY TAXES

The Sumter County Board ofCommissioners fixed the property tax levy for the 1998 tax year (calendar year)

on November 12, 1998 (levy date). Taxes were due on January 25, 1999. 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 Sumter County Tax Commissioner bills and collects the property

taxes for the Board ofEducation~

-

The tax millage rate leviedfor the 1998 tax year (calendar year) for the Sumter County Board ofEducation
was as follows (a mill equals Sl per thousanddollars of assessed value):

School Operations

J.Mmills

-10-

'
SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL -PURPQSE..FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTlNG POLICIES
SALES TAXES
Special Purpose Local Option Sales Tax (SPLOST) is to be used for capital outlay for educational purposes and debt service. SPLOST revenue during the fiscal year amounted to $3,562,301.18 and was recorded in the Capital Projects and Debt Service Funds. The voters of Sumter County have pledged a portion of the proceeds of the SPLOST to retire the City of Americus General Obligation School Bonds series 1990 and 1995. The State will terminate collection of this tax once an additional $18,325,590.41 has been collected or on June 30, 2002, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first~in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time 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.
PREPAID ITEMS
Payments made to vendors for services that will benefit periods subsequent to June 30, 1999, are recorded as prepaid items. The prepaid items reported on the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component ofnet current assets.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
.The Board has the following types of interfund transactions:

- 11 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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 th~se 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 m.ade in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia 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 . surety bond, by guarantee ofinsurance, or by.collateral. The aggregate oftheface value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. OCGA Section 45-8-11(b) provides an officer
holding public funds may, in his discretio~ waive the requirement for security in the case ofoperating funds
placed in demand deposit checking accounts.

Acceptable security for deposits consists ofany one ofor any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the. State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of

the State ofGeorgia,



(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities of the State of Georgia,

(5) Bonds ofany public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and

SUMTER cOlJNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness,or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal 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 $7,877,852.30. The amounts of the total bank balances are classified into three categories of;~redit 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.
Category2- Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes anybank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent btit ilot in the B&ard's name.)

The Board's deposits are classifi~ by risk category at June 30, 1999, as follows:

Risk Categozy
1
2 3

Bank Balance
$ 300,000.00 7,577,852.30
0.00

Total
CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

S 7,877,852.30

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool.

-13 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

. JUNE 30. 1999

Note 2: DEPOSITS AND INVESTMENTS

At June 30, 1999; the carrying value of the Board's total investments was $1,501,899.97. The investments are classified as to. risk categories as follows:

IYP!i of lnyestnrent
U. S. Government
Local Government Investment Pools
'
Total Investments

Ri~k ~~&21:i!il

$ z.siz.ss $

Q,QQ $

Q.QQ $

Carrying
Amount
7,527.55 $

Fair
YaJuli
7,527.55

l .~2~.JZ2,~2 l .~2~.JZ2,~2 $ I,SQ1,822,2Z $ 1.s21.s22.2z

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State ofGeorgia, Office ofTreasury and Fiscal Services for the 1=,ocal 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 ofthe 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 ofcapital, 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 redeeme.d 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 offunds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any ofits agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration ofapproximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years.

-14-

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSRFINANCIAL STATEMENTS

JUNE 30. 1999

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. However, the errors or omissions policy excludes coverage for sexual harassment and discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses .(settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

The Board has elected to self~insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable ihat a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning ofYear
Liability

Claims and Changes in
Estimates

Claims
Paid

EndofYear
Liability

1998 1999

$

Q,QQ $

S,~1.QQ $

S,Q~l.QQ $

Q,QQ

$

Q,QQ $

2,3~.QQ $

2,3Q~.QQ $

Q,QQ

The Board participates in the Georgia Schooi Boards Association Workers' Compensation Fund, a public . entity risk pool organized on July 1, 1992 to develop, implement, and administer a program of workers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the . Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

The Board has purchased a surety bond to provide additional insurance coverage as follows:

- 15 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 4: RISK MANAGEMENT

Position Covered

Amount

All Employees (Per Occurrence)

$ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES

The Sumter County Board of Education has entered into various lease agreements as lessee for office

equipment and a computer system. These lease agreements qualify as capital leases for accounting purposes

and, therefoi-e, have been recorded at the present value of the future minimum lease payments as of the date

of their inception.

-





GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding, which includes debt issued by theCity ofAmericus prior to the consolidation ofthe City ofAmericus School System with the Sumter County Board of Education, are as follows:

Pw:pose

Interest Rates

Amount

General Government - City ofAmericus General Obligation School Bonds .'. Series 1990
General Government - City of Americus General Obligation School Bonds.-Refunding- Series J995
General Government - Refunding - Series 1993 General Government- Series 1997

6.15%-7.05%
3.75%-5.2% 2.70%- 5.15% 3.90% - 4.55%

$ .. 235,000.00
670,000.00 2,965,000.00
7,400.000,00

$ 11.270.000,00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1999,were as follows:

Balance July l, 1998

City of Americus

General

Capital

General Obligation Obligation

Leases

School Bonds

Bonds

TotaJ

$ 98,304.03 $ 1,170,000.00 $ 12,305,000.00 $13,573,304.03

Deductions Debt Retired

52,129,91

265.ooo,oo 1,940.000,00 2.257.129,91

Balance June 30, 1999

$ ~6.J~-12 $

905.000,gQ S 1~,365.000,0Q S 11,316,J~.l~

as At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are

follows:

'

-16-

~

-

. ..: . .

SUMTER COUNTY BOARD OF EDUCATION

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
Total Principal a;d Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital
Leases

City of Americus General Obligation
School Bonds

General Obligation
Bonds

Total
Debt

$ 36,734.46 $ 7,155.96 4,770.64

483,190.00 $ 2,530,152.50 $ 3,050,076.96

485,060.00 2,617,505.00 3,I09,720.96

481,945.00 2,687,227.50 3,173,943.14

76,542.50 1,735,073.75 l,811,616.25

348,970.00

348,970.00

1,735,235.00 . 1,735,235.00

348,755.00

348,755.00

$ 48,661.06 $ 1,526,737.50 $ 12,002,918.7J $ 13.578.317,31

2,486.94

S 46,174.12

Note 6: PRIOR YEAR PEFEASEMENT OF DEBT

In fiscal year 1994, the Board defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust .account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 1999, $2,685,000.00 ofbonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$499,990.71 for health insurance and retirement contributions paid on the Board's behalfby the following StateAgencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$373,503.02

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$35,339.69

Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$91,148.00

- 17 -

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999, together with funding available:

PrQject

Unearned Executed
Contracts

Funding. Available
From State

97/96S-729-042 97/96S-729-043 Cherokee Elem~tary-School Addition/Renovation

$ 3,305,731.37 26,652.72 $ 821,370.00
789,740.72

$ 4.122.124,81 $ 821.370,00

The amounts described in this note are not reflected in the general pwpose financial statements.

'

.

' '

'

Note 9: CONTINGENT LIABILITIES

are Amounts received or receivable principally from tlie Federal government 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.



The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of -routine Board operations: The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to :_the general purpose financial statements.

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT .SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical pei-sonnel 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 ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS

-18-

.

. ~

~~

SUMTER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FJNANCIAL STATEMENTS

JUNE 30. 1999

.Note 10: RETIREMENT PLANS

Board ofTrustees 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

100%

$2,257,112.41

1998

100%

$2,131,836.17

1997

100%

$1,992,762.40

-19-

SUMTER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30. 1999

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

Total Assets

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 Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated
Total Fund Equity

Total Liabilities and Fund Equity

See notes to the general purpose financial statements.

-20-

scHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 971,192.85 $ 215,578.44

345,046.14

28,132.88

63,011.40 33,826.76
------- $ 1,441,210.03 $ 215,578.44

$

40,889.73 $ 102,684.61

111,472.59

112,893.83

$ 152,362.32 $ 215,578.44

$

63,011.40

33,826.76

1,192,009.55 $

0.00

$ 1,288,847.71 $

0.00

------ $ 1,441,210.03 $ 215,578.44

EXHIBIT"E"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS JUNE 30, 1999 JUNE 30, 1998

$ 1,186,771.29 $ 1,124,198.26

345,046.14

309,030.00

$ 326,908.09 $

5,000.00

360,040.97

392,408.65

63,011.40 33,826.76

38,869.12 32,124.53

$ 326,908.09 $ , 5,000.00 $ 1,988,696.56 $ 1,896,630.56

$

35,188.46 $

112,171.03

176,227.86

3,320.74

$ 326,908.09 $

1,923.71 $ 1,923.71 $

37,112.17 $ 255,745.37 400,594.28
3,320.74
696,n2.56 $

. 43,882.86 268,382.66 385,758.84
232.81
698,257.17

$

$

3,076.29 $

3,076.29

262.88

63,011.40 33,826.76

38,869.12 32,124.53

$

0.00

0.00

1,192,009.55

1,127,116.86

$

0.00 $

3,076.29 $ 1,291,924.00 $ 1,198,373.39

$ 326,908.09 $

5,000.00 $ 1,988,696.56 $ 1,896,630.56 .

-21 -

SUMTER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 1999

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
Debt Service Principal
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PRO.GRAMS

$

n 184,954.00 $ 1,1 ,405.04

2,111,715.07

362,295.55

$ 2,658,964.62 $ 1, 1TT,405.04

$

$

19,807.50

2,574,264.43

974,168.91
92,910.61 64,704.65
13,580.87 32,040.00

$ 2,594,071.93 $ f,177,405.04

$

64,892.69 $

0.00

$

64,892.69 $

0.00

1,198,110.51

0.00

24,142.28 1,702.23

- - - - - $ 1,288,847.71 $

0.00

See notes to the general purpose financial statements.

-22-

EXHIBIT "F

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$

34,101.48 $

2,400,915.14

$ 2,435,016.62 $

32,500.00 $

1,428,960.52 $ 4,512,630.21
362,295.55

1,414,6TT.05 4,159,475.68
347,481.56

32,500.00 $ 6,303,886.28 $ 5,921,634.29

$ 1,613,237.18
338,166.73 205,939.54 $ 131,840.54
3,087.00 26,665.92 78,204.49
38,138.10

$ 2,435,279.50 $

$

-262.88 $

$ 2,587,406.09 $ 1,299,6TT.22

20,000.00 9,423.71

431,0TT.34 290,644.19 131,840.54
36,475.37 58,705.92 . 78,204.49 2,574,264.43 47,561.81

1,380,710.65 321,235.58 138,283.03 19,329.69 36,350.15 74,787.97
2,479,331.56 36,059.26

8,917.56

29,423.71 $ 6,236,180.18 $ 5,794,682.67

3,076.29 $

67,706.10 $ 126,951.62

2,039.12

$

-262.88 $

3,076.29 $

67,706.10 $ 128,990.74

262.88

0.00

1,198,373.39

1,087,011.17

24,142.28 1,702.23

-7,999.34 -9,629.18

$

0.00 $

3,076.29 $ 1,291,924.00 $ 1,198,373.39

-23-

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items
Total Assets

SUMTER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE ao, 1999

EXHIBIT"G"

BOND PROCEEDS
$ 2,002,249.66

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 301 1999 JUNE 30, 1998

s $ 486,300.75 $ 2,488,550.41

2,TT9,306.11

1.21

7,527.35

7,528.56

5,321,963.93

$ 4,495,500.00

4,495,500.00

52,058.54

1,488,097.75

1,488,097.75

.$ 2,002,250.87 $ 5,983,597.75 $ 493,828.10 $ 8,479,676.72 $ 8,153,328.58

blABlbl!IES AND FUNQ EQ!.!IIX

blABlblIIES
Cash overdraft Accounts Payable Contracts Payable Retainages Payable
Total Uabilltles . .

$ 3,267,51'7.79

$

3,129.70

636.00

22~.738.10

576,346.68

75,897.50

650,999.53

s $ 303?65.30

4.495,500.00

$ 3,267,517.79 3,765.70' $
801,084.78 726.897.03
$ 4.7991265.30 $

39,066.75 187,989.06 58.676.70
285?32.51

FUNDEQUIJY
Fund Balances Reserved For Prepaid Items For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved . Undesignated
Total Fund Equity

$ $. 1,698,485.57

1,488,097.75 $

0.00
s s 1,698.485.57

0.00
s 1,488,097.75

$ 493,828.10

1,488,097.75 1,698,485.57 $
493,828.10

5,246,516.07 2,621,080.00

0.00

0.00

0.00

493,828.10 $ 3.680.411.42 $ 7.867,596.07

s Total Liabilitles and Fund Equity $ 2,002,250.87 $ 5,983,597.75

493,828.10 $ 8,479,676.72 $ 8, 153,328.58

See notes to thegeneral purpose financial statements.

-24-

,,.--- --_._.
~- .~ :
. SUMI!iB ~Q!.!!ft! fi!OABQ QE liQ!.!~IQN
~QM!i!ININ!a SIAI!iMEt:lI QE ~EN!.!~. E~ENDII!.!B&S eit:!P ~l::l~~ES IN E!Jt:U:! BALAN~i;S ~~II& ~BQJE~IS fiUNQ
YEAB ENPEQ JUNE 30, 1999

------
EXHIBIT"H"

BEYENUES
State Funds Taxes Other Funds
Total Revenues
l;;~PENDITUR!;S

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 301 1998

$ 4,495,500.00

$ 4,495,500.00 $ 473,n1.05

$ 486,253.38

486,253.38

$ 143,282.38

6,988.80

7574.74

157,845.90

s $ 143,282.38 $ 4,502,488.80 $ 493,828.10 $ 5,139,599.26

4731n1.05

Current Support Services Business Administration
Capital Outlay Supplies Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures

s

1,394.45

$

s 925,337.22

8,400,052.24

s s s 926,731.67

8,400,052.24

s s -783,449.31

-3,897,563.44 $

s 250,415.18

s 0.00

1,394.45

9,325,389.46

13,895.00 2,184,152.55

s s 0.00

9,326,783.91

2,448,462.73

493,828.10 $ -4,187,184.65 $ -1,974,691 .68

Qil::IEB El~N~(N!:z SQUBCES (USES}
Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out

$ 2,764,581.19 $ -2,764,581.19

$

2,287.75

$ 2,764,581.19 -2,764,581.19

9,840,000.00 4,274,150.58 -4,274,150.56

Total Other Financing Sources (Uses)

$ -2,764,581.19 $ 2,764,581.19

$

0.00 $ 9,842,287.75

Excess of Revenues and Other Ananclng Sources over (under) Expenditures and Other Financing Uses $ -3,548,030.50 $ -1, 132,982.25 $ 493,828.10 $ -4,187,184.65 $ 7,867,596.07

FUND BALANCE JULY 1

5,248,516.07

2,621,080.00

0.00

7,867,596.07

0.00

FUND BAbANCE JUNE 30

$ 116981485.57 $ 1.488.097.75 $ 4931828.10 $ 316801411.42 $ 718671598.07

See notes to the general purpose financial statements.

-25-

SUMTER COUNTY BOARD OF EDUCATION . COMBINING BALANCE SHEET
DEBT SERVICE FUND JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments . Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 1999

JUNE 30, 1998

$

111,594.87

$

111,594.87 $

106,646.68

$ 1,494,371.41

1,494,371.41

1,326,819.77

2,112.64

595,566.50

597,679.14

569,534.48

Total Assets

$

113,707.51 $ . 2,089,937.91 $ 2,203,645.42 $ 2,003,000.93

FUND EQUITY

Fund Balances Reserved For Debt Service Unreserved Undesignated

$

113,707.51 $ 2,089,937.91 $ 2,203,645.42 $ 2,003,000.93

0.00

0.00

0.00

0.00

Total Fund Equity $ - 113,707.51 $ 2,089,937.91 $ 2,203,645.42 $ 2,003,000.93

See notes to the general purpose financial statements.
-26-

SUMTER COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SEBYiCE FUND
VEAR ENDED JUNE 30, 1999

EXHIBIT.r

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest 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 3011999

JUNE 3011998

$

5,547.37 $ 3,076,047.82 $ 3,081,595.19 $ 3,131,529.76

21031.64

781122.20

801153.64

221379.42

$

71579.01 $ 311541170.02 $ 31161-749.03 $ 311531909.18

$ 2,205,000.00 $ 2,205,000.00 $ 1,165,000.00

755,365.00

755,365.00

511,837.50

$

739.54

739.54

738.96

$

739.54 $ 219601365.00 $ 21961I104.54 $ 116n1576.46

$

61839.47 $

1931805.02 $

2001644.49 $ 114761332.72

$

17,649.38

134.576.16

$

152.425.54

$

6,839.47 $

193,805.02 $

200,644.49 $ 1,628,758.26

106.868.04

118961132.89

2.003.000.93

374.242.67

FUt::!D BALAt::!CE JUNE 30

$

113i707.51 $ 210891937.91 $ 21203,645.42 $ 210031000.93

See notes to the general purpose financial statements.

-27-

SUMTER 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 Ed~cation

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) Pass-Through From Office of School Readiness Food. and Nutrition Program Child and Adult Care Food Program 1999 Contrad

Total U. S. Department of Agrtailture

Education,U.S.Departmentof Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Ad Part B - Special Education Flow Through 1999 Grant Capacity Building Improvement Grant 1999Grant

Total Special Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Ad Title I Comprehensive School Reform Demonstration Program 1999 Grant Grants to Local Educational Agencies 1999 Grant Title II Eisenhower Professional Development 1998 Grant 1999 Grant Title Ill Technology Literacy Challenge Fund Grants 1999 Grant Title VJ Innovative Education Program Strategies 1999Grant Goals2000 State and Local Education Systemic Improvement Grants 1998 Grant 1999 Grant Safe and Drug-Free Schools 1999Grant

CFDA NUMBER

PASS-
THROUGH ENTITY ID NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES INPERiOD

10.553 10.555

NIA $

533,584.49

(2)

NIA

11376.516.87 $ 2.401-712.21 (3)

$ 1,910,101.36 $ 2,407,712.27

10.550

N/A

186;359.66

186,359.66

10.558

NIA

15.254.05

121

$ 2.111 -715.07 $ 215941011 .93

84.027 84.173

NIA $

246,338.18 $

NIA

13.861.42

$. 260,199.60 $

246,338.18 13.861.42
260,199.60

84.332

NIA

84.010

NIA

84.281

NIA

84.281

NIA

84.318

NIA

84.298

NIA

84.276

NIA

84.276

NIA

84.186

NIA

-28-

9,918.94 1,422,751.44
9,797.00 34,464.33
119,000.00
44,007.54

9,918.94 1,422,751.44
10,059.88 34,464.33
119,000.00
44,007.54

80,108.22 111,203.88
145,254.00

80,108.22 111,203.88
145,254.00

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Georgia Department of Education
Vocational Education - ~asic Grants to States
High School Program Basic Grant 1999 Grant
Tech-Prep Education 1999 Grant
Pass-Through From Chattahoochee Flint Regional Educational Service Agency Elementary and Secondary Education Act Tille I Migrant Education 1998Summer 1999 Regular 1999Summer
Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Georgia Child Care Council After School Time Enrichment Program 427-93-81596 .
OTHER FEDERAL ASSISTANCE
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program Troops for Teachers Incentive Grant
Total U.S. Department of Defense

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.048 84.243

NIA $ N/A

90,647.00 $ 8,000.00

90,647.00 8,000.00

84.011 84.011 84.011

NIA

37,669.12

37,669.12

NIA

23,079.13

23,079.13

NIA

TT8.32

TT8.32

s 2.396.878.52 $ 2.397.141.40

93.575

NIA $

4 036.62 s___4....o...3._s__.6__2_ 1

$

55,827.16 $

148,672.64 (3)

18.905.00

i4l

$

74.732.16 $

148.672.64

Total Federal Financial Assistance

s 41587,362.37 $

NIA= Not Available

Notes to the Schedule Qf Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are Included In the 1999 National School Lunch Program.
(3) Expenditures for this program Include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

Major Programs are Identified by an asterisk (*) In front of the CFDA number.

The Board did not provide Federal Assistance to any Subreclplenl

The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Sumter County Board of Education and Is presented on the modified accrual basis of accounting which Is the basis of accounting used In the presentation of .the general purpose financial statements.

See notes to the general purpose financial statements.

511431922.59

-29-

S!.!MiliB !:.QI.IND'. BQABQ QE El2!.!!:.AIIQN
S!:.l::ll;Q!.!1.1; QE SIAili B~l;N!.!E
YEAB l;NDl;D J!.!NE 3Q 1999

SCHEDULE "'Z'

AGl;Nt;Y/E!.!NP!NG
GRANTS Communities In Schools of Georgia, Inc. Communities In Schools Replication Program
Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Sp-.181 Instructional Assistance In-School Suspension Migrant Education Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Full!llng Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Pay for Performance Program Remedial Summer School Program Student Records . Teachers' Retirement Lottery Programs Assistlve Technology Computers In the Classroom
Georgia State Anancing and ln118Btment CommiBBion Reimbursement on Construction Project&
Office of the Govemor Georgia Council for the Al1B Georgia Challenge Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal SarvlceB Public School Employees Retirement
CONTRACTS Education, Georgia Department of Middle School -ASTEP Enrichment Program Plains High School Project Reading Challenge Grant Reading Arst Grant
OTHER Community Affairs, Georgia Department of Georgia School AQ8 Cere Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

12,500.00

$

12,500.00

$ 12,362,934.00 1,537,668.00 748,518.00 528,341.00 144,191.00 3,310,834.00
723,654.00 214,364.00
6,362.00 425,810.00 400,975.00 173,825.00
14,065.00 49,828.00 57,685.00 -2,373,536.00 1,413,493.00 .
57,121.00
140,070.00 35,000.00 36,759.16
. 373,503.02 5,000.00 6,400.00 16,686.00
148,000.00 11,342.93 4,280.25 35,339.89

184,954.00
7,429.02 112,720.00

12,362,934.00 1,537,668.00 748,518.00 528,341.00 144,191.00 3,310,834.00
723,654.00 214,364.00
6,362.00 425,810.00 400,975.00 173,825.00
14,065.00 49,828.00 57,685.00 -2,373,536.00 1,413,493.00 184,954.00 57,121.00
140,070.00 35,000.00 36,759.16
373,503.02 5,000.00 6,400.00 16,686.00
148,000.00 11,342.93 4,280.25 35,339.69
7,429.02 112,720.00

$ 4,495,500.00

4,495,500.00

91,148.00

20,000.00 1,057,256.02

20,000.00 1,057,256.02
91,148.00

67,299.51 124,800.00 30,595.00

24,768.57

24,768.57 67,299.51 124,800.00 30,595.00

9,332.91

9,332.91

See notes to the general purpose financial statements.

$ 20,922,353.56 $ 1,428,960.52 $ 4,495,500.00 $ 26,846,814.08 -30-

SUMTER COUNTY .BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAXES PROJECTS
YEAR ENDED jLJNE 30, 1999

SCHEDULE "3"

PROJECTS

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

The repayment of the principal and interest

on the City of Americus General Obligation

School Bonds, Series 1990, and Series 1995,

coming due February 1, 1998 through and

including August 1, 2002, and the repayment

of the principal and interest on the Sumter

County School District General Obligation

Bonds, Series 1993, coming due June 1, 1998

through and including December 1, 2002, the

maximum amount of deb! o be retired not to

exceed $4,150,000.00

$

4, 150,000.00 $

4,150,000.00 $

829,670.00 $

676,518.75

The acquisition, construction and equipping of capital outlay Projects consisting of a new primary school and the acquisition of future school land sites and additions, improvements, renovations, modifications and equipping of all existing schools, including the acquisition of all necessary property, both real and personal, necessary therefor (the "Projects") the maximum costs of such Projects not to exceed $20,850,000.00

2018501000;00

2018501000.00

91326z783.91

211981047.55

$ 25.000,000.00 $

25.000.000.00 $ 10.156.453.91 s _ ....2.1_s1_4_.5__66_.3_o

(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 each project. Includes all cost from project Inception to completion.
(3) The voters of Sumter County approved the Imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may Include sales tax proceeds, state, local property taxes
and/or other funds over the life of the project.
(4) In addition to the expenditures shown above, the Board Incurred Interest expense in the current year to provide advance funding for
the above projects In the amount $400,695.00.

See notes to the general purpose financial statem~nts.

31

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1999

EXPENDITURES
Current I nstructlon Support Services Pupil Services Improvement of Instructional Services Maintenance and Operation of Plant Student Transportation Services

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

$

7,429.02 $ 112,720.00 $

854,019.89 $
92;910.61 64,704.65 13,580.87 32,040.00

TOTAL
974,168.91
92,910.61 64,704.65 13,580.87 32,040.00

Total Expenditures

$

7,429.02 $ 112,720.00 $

1,057,256.02 $

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program

$

956,279.58

7,429.02 112,720.00 100,976.44

s ___1..,1n_.,4_,0-5._04_

See notes to the general purpose financial statements.

-32-.

SUMTER 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 Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

1511771461.00 $

4761699.00

$

15,572,166.02

981 1140.52 $ _ __,:B;.;..70:.i.19;:;..;:0;.:;:2,;;;;;.2~6

$

16,553,306.54 .

-941073.09 s_----"1=6'""'A=59'"I"2=3..;;.3"'"'"45~

$

o.oo s-==========-==o=.o=o

See notes to the general purpose financial statements. . - 33 -

SUMTER COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND CUAUJY BASIC EDUCATION PROGRAMS
VEAR ENDED JUNE 30. 1999

. GENERAL AND CAR!;ER EDUCATION PROGRAMS Kindergarten (*)
Grades 1 3 r)
Sub-Total K-3 Grades 4 - 5 (*)
Grades 6 8 r)
Grades 9 12 (*)
i tigh School Laboratories r) r) Vocational Education Laboratories
Total General and career Education Programs SP~IAl,EDUCAIIQNPROGRAMS
Regular Programs Category I (*)
Category II r) Category Ill r) .. Category IV r)
Sub-Total Regular
Category VI (Gifted) r)
Total Special Education Programs
R!;MEDI~ EDUCAIIQN PROGRAM Cl
Total Fourteen Welghtad Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs
Total Fourteen Welghlad and Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ...!.... ORIGINAL

MID-TERM

$ 1297,858.00

$ 1,168,072.20 $

0.00

31637, 145.00

31273,430.50

$ 4,935,003.00 90 $ 4,441,502.70 $

0.00

1,486,786.00 90

1,338,107A0

2,564,454.00 90

2,308,008.60

1,4TT,429.00 90

1,329,686.10

1,053,988.00 90

948,589.20

8451274.00 90

1soi746.so

$ 1213621934.00

$ 1111261640.60 $

0.00

$ 1,374,6TT.OO

$' 12.37,209.30 $

0.00

$ 1,374,6TT.OO 90 $ 12.37,209.30 $

0.00

1621991.00 90

1461691.90

$ 115371668.00

$ 113831901.20 $

0.00

$

7481518.00 90 $

6731666.20 $

0.00

$ 1416491120.00

$ 131184~.oo $

0.00

s

418,914.00 90 $

3TT,022.60 $

0.00

1091427.00 . 100

1091427.00

$

5281341.00

$

4861449.60 $

0.00

$ 15,1TT,461.00

$ 13,670,657.60 $

0.00

SIAfF QIDl&LQPMErfi PROGRAMS Cost of Instruction Professlooal Development
Total Staff Development Programs
r> Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

45,519.00

$

45,519.00 $

0.00

981672.00

981672.00

0.00

$

144,191.00 100 $

144,191.00 $

0.00

34.

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,168,072.20 $

1,135,458.98 $

31,385.87 $ 1,166,844.85

3,273,430.50

3,509z736.82

911380.41

316011117.23

$ 4,441,502.70 $ 4,645,195.80 $

122,766.28 $ 4,767,962.08 $

0.00

1,338,107.40

1,307,650.10

95,543.23

1,403, 193.33

0.00

2,308,008.60

2,865,874.93

114,260.62

2,980,135.55

0.00

1,329,686.10

2,002,851.17

360,684.21

2,363,535.38

0.00

948,589.20

974,141.24

94,550.09

1,068,691.33

0.00

1 .

760z746.60

TT51483.41

801371.05

8551854.46

0.00

$ 1111261640.60 $ 1215711196.65 $

8681175.48 $ 13A391312.13

$ 1,237,209.30 $

8,690.42 791,081.54 626,598.42 1481194.82

$

8,690.42

791,081.54

626,598.42

1481194.62

$ 1,237,209.30 $ 1,574,565.00

$ 1,574,565.00

0.00

1461691.90

1921079.33 $

2.726.78

1941806.11

0.00

$ 113831901.20 $

1.7661644.33 $

2z726.78 $ 1.7691371.11

$

6731666.20 $

7221149.21

$

7221149.21

0.00

$ 1311841208.00 $ 1510591990.19 $

8701902.26 $ 1519301892.45

$

3TT,022.60 $

512,175.83

s

512,175.83

0.00

1091427.00

$

110~.26

110~.26

0.00

$

4861449.60 $

5121175.83 $

110~.26 $

6221414.09

$ 131670,657.60 $ 1515721166.02 $

981,140.52 $ 1615531306.54 $

0.00

$

45,519.00

981672.00

s_ _144_.181..o..o. 1111 11111111

$

145,404.92 $

145,404.92

51850.00

51850.00

$

151.254.92 $

151.254.92 s_______o_.oo_

- 35 -

SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS

RussELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 2, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Sumter County Board of Education

REPORT. ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS

Ladies and Gentlemen:

We have audited the financial statements ofSumter County Board of Education as ofand for the year ended June 30, 1~99, and have issued our report thereon dated May 2, 2000. This report was qualified for a scope limitation and for various deparires from generally accepted accounting principles, as identified in the auditor's report on the general pwpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable
to financial audits contained in Government Auditin& Standards, issued by the Comptroller General of the
United States.

We did not observe the taking of either the Federal donated commodities inventory or the purchased foods

inventory at June 30, 1999, nor could we satisfy ourselves as to the accuracy of the amounts stated as

inventories through alternative procedures.

.,

Compliance .

A.s part of obtaining reasonable assurance about whether Sumter County Board of Education's financial

statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of

laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on

the determination offinancial statement amounts. However, providing an opinion on compliance with.those

provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results

of our tests disclosed no instances of noncompliance that are required to be reported under Government

Auditing Standards.



99YB-40

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Sumter County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the :financial statements and not to provide assurance on the internal control over :financial reporting..However, we noted certain matters involving the internal control over :financial reporting and its operation that we consider to be reportable conditions. 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 Sumter County Board ofEducation's ability to record, process, summarize and report :financial data consistent with assertions of management in the :financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-7291-99-01, FS-7291-99-02 and FS-7291-99-03.
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 ofperforming 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, ofthe reportable conditions d_escribed above, we consider item FS-7291-99-03 to be a material weakness.
This report is intended solely for the information and use of management, members of the Sumter County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 99YB-40

~W-~
sell W. Hinton
State Auditor

w. RUSSELL H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
May 2, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education
and Superintendent and Members ofthe Sumter County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Sumter 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. Sumter County Board of Education's major Federal programs are.identified in the accompanying Schedule of Findings 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 Sumter County Board of Education's management. Our responsibility is to express an opinion on Sumter County Board ofEducation'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 Auditin2 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 Sumter 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 Sumter County Board of Education's compliance with those requirements.

99SA-10

In our opinion, the Sumter 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 Sumter 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 perfonning our audit, we considered Sumter County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detennine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.

Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk 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 inthe 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 Sumter County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,

RWH:jb 99SA-I0

sell W. Hinton . State Auditor

SECTION ID. AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
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SUMTER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

7291-93-01 FS-7291-97.:02 FS-7291-98-01

Partially Resolved - See Corrective Action/Responses No Further Action Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Expenditure Amount: $8,693.79 Finding Control Number: 7291-93-01

Reimbursement amounts were made by the Sumter County Comprehensive High School and will be reflected in the FY 99 audit. Additional reimbursement is being secured from the high school as funds become available. This balance will be reduced over time.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7291~98-0l

The Board has addressed this item, however, due to monetary constraints does not plan to implement a General Fixed Assets system at this time. It may be considered in the future.

SECTIONIV FINDINGS AND QUESTIONED COSTS

SUMTER COUNTY BOARD OF EDUCATION SCHEDULE. OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999

I SUMMARY OF AUDITOR'S RESULTS

1. 1)'.pe of Report Issued on the Financial Statements
The auditor's opinion on the Sumter County Board ofEducation's financial statements was qualified
for a scope limitation and for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements
The audit report for the Sumter County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Expenditures/Liabilities/Disbursements General Fixed Assets

General Ledger

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements
The audit of the Sumter County Board of Education disclosed no instances of noncompliance that
were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs
The audit report for the Sumter County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. TuPe of Report Issued on Compliance for Major Programs

.

The auditor's opinion on the Sumter County Board of Education's report on compliance with

requirements applicable to major programs was unqualified.

6. Audit Findimis Required to be Reported by Section ,510(B,) ofOMB Circular A-133
The Sumter County Board ofEducation's audit did not disclose audit findings required to be reported
by section .510(a) ofOMB Circular A-133.

7. MajorPrograms
Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food ~d Nutrition Program - Food Services - National School Lunch Program

8. TuPe "A" PmlWPU Dollar Threshold
The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee
The Sumter County Board ofEducation was audited as a low risk auditee based on a waiver granted
by the U.S. Department of Education.

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SUMTER COUNTY BOARI)- OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999

.

.

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

EXPENDITURES/LIABILITIES/DISBURSEMENTS Improper Disbursement ofFunds Reportable Condition Finding Control Number: FS-7291-99-01

The Sumter County Board of Education disbursed $2,621,080.00 on July -19, 1998, to M. B. Kahn Construction Company, Inc. in advance ofactual expenditures incurred for the Sumter County Middle School Addition Project. At June 30, 1999, the balance of unearned funds held by M. B. Kahn Construction Company, Inc. totaled $1,488,097.75.

The practice of advancing unearned funds to third parties places board funds in an uncollateralized position
and exposes the Board to risk of loss should performance not be rendered by M;. B. Kahn Construction

Company, Inc. In addition, the Board lost interest revenues which would have accrued iffunds were properly

invested.

,

This condition occurred because management failed to ensure proceeds in the Bond Construction Fund were
used in accordance _with sound business practices. The Board should secure a refund of all unearned funds on deposit with M. B. Kahn Construction Company, Inc. for deposit in the Board's Bond Construction Fund.

' Management's Response:

The reason that payment was advanced was because we changed the contractual relationship with Kahn Construction Management Company from an agency relationship to at risk contract. This change gavethe district significant advantages including a guaranteed max price thereby eliminating the district's financial risk in bidding the project. The district also received 100% ofthe savings throughout the project.

Secondly, Kahn held the contracts with the contractors, thereby'providing a layer of protection against litigation and claims, again minimizing the school district's risk. The district had performance and payment bonds in the amount of $2,051,751. The balance of $557,604 was secured by funds held by the district that were owed to Kahn in construction management fees or other projects.

In lieu of any potential unearned interest the district received substantial contractual benefits. Which is further evidenced that the project was brought in $506,696 or 19.4% under budget. Further the district has closed the project and Kahn has issued a check to the district in the amount of $506,696.
In lieu of the financial assurances the district had in place, the district could have utilized ~ advanced payment bond which is a standard surety industry instrument. However, this option would have resulted in additional costs to the district.

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SUMTER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
Il FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Include lnves~ent Accounts in Accounting Records Reportable Condition . Finding Control Number: FS-99-7291-02
The Board failed to record the :financial activity of an investment account within the Board's accounting records, which included the receipt of Special Local Option Sales Tax revenue, earnings on investments and the disbursement ofprincipal and interest on bond debt. Audit procedures were performed on this account and the financial statements were adjusted to include these transactions.
This condition occurred because ofmanagement's failure to incorporate this account and its related financial transactions in the Board's accounting records. Corrective action should be taken by the Board to ensure that all ofthe Board's financial accounts and activities are included in the formal accounting records.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7291-99-03
The Sumter County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe 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 ofa General Fixed Assets Account Group: These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
. No matters were reported.
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