Taliaferro County Board of Education, Crawfordville, Georgia, year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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TALIAFERRO COUNTY BOARD OF EDUCATION
CRAWFORDVILLE, GEORGIA REPORT ON AUDIT

OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO 'IHE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

COMBINING AND INDNIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILI'I'IES

AGENCY FUND

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2
4 6 7
18
20
22
23
24 25
27
28

TALIAFERRO COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

SCHEDULES

ADDIDONAL FINANCIAL INFORMATION

ANALYSIS OF .... ~.,... EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
29
30

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITII GOVERNMENT AUDI'IlNG STANDARDS
REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII 0MB CIRCULARA-133

SECTION ill
AUDfl'EB'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL


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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
March 14, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Taliaferro 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 Taliaferro County
Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents.
These general purpose financial statements are the responsibility ofthe Taliaferro County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfo11n the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements ofthe 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 confotm to generally accepted accounting principles.
2000ARL-13

* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To 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 dete11nined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Taliaferro County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in confo11nity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated March 14, 2001, on our consideration of the Taliaferro 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. That report is an integral part of an audit perfo1111ed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was perfo1n1ed for the purpose of fo11ning an opinion on the general purpose financial statements of the Taliaferro County Board of Education taken as a whole. The accompanying
n combining and individual fund statements (Exhibits E through and the financial schedules
(Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal 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 ofthe general purpose financial statements. Such info11nation has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such inf011nation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

A copy ofthis report has been filed as a pe11nanent record in the office ofthe State Auditor and made
available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:jb
2000ARL-13

kJ.
Rus ell W. Hinton
State Auditor

TALIAFERRO COUNTI:y BOARD OF EDUCATION
'

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2000

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

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

371,057.84 $

33,328.45

32,603.97

126,962.16

20,908.38


1,207.77 1,152.24

Total Assets

$

530,623.97 $ ==5=6=,5=9=6.=84=

LIABILITIES AND FUND FQUITY
LIABILITIES
Accounts Payable Salaries Payable Deferred Revenue Funds Held for Others
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Inventories Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

17,303.73 $

4,775.18

19,988.41

8,000.00

$

17,303.73 $ _ _.;:;3:;,J2,c.:.76.=.;3:.:;.5:.:9c..

$

3,753.00

$

1,207.77

1,152.24

509,567.24

21,473.24

$

513,320.24 $ _ _.;2=3=,8=3=3-=25=-

Total Liabilities and Fund Equity

$

530,623.97 $ ===56='=59=6=.8=4=

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

EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

FIDUCIARY FUND TYPE AGENCY FUND

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

199,402.00 $

6,493.99 $

610,282.28 $

651,484.19

32,603.97

30,814.07

14,965.15

162,835.69

91,968.01

1,207.77 1,152.24

416.68 1,239.42

$

214,367.15 $

6,493.99 $

808,081.95 $ ==7=7=5-,9=22==37=

$

$ _ _....;;;6_._,4;.;;;.9=3.;;.,.99;;..

$

6,493.99 $

22,078.91 $ 19,988.41 8,000.00 6,493.99

27,025.12 22,928.36
4,554.89

56,561.31 $ _ _..;5;..;.4.i.;,5.;.08.;;.;..;;..37;._

$

14,965.15

199,402.00

0.00

$ --=21.;...4;.,3;..;;6..;..7";..1.5....

$

214,367.15 $

$

3,753.00 $

26,903.00

1,207.77 1,152.24 14,965.15 199,402.00

416.68 1,239.42 70,975.53

531,040.48

621,879.37

$

751,520.64 $ _ _1.;.:2;.;1..,.4...;;.14-'-'_=oo;;...

6,493.99 $ - - -80-8,-08-1- .95 $ ==7=7=5-,9=22==37=

-3-

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$

800,444.93 $

94,110.06

352,028.31

684,051.65

34,390.25

5,459.34

$ 1,518,886.83 $ _ _4_5_1.._,5_97_.7_1_

$

880,678.77 $

243,259.66

5,847.34 40,102.18 39,224.97 102,890.37 78,336.59 65,402.77 85,718.23 196,208.41
1,750.00

4,626.00 43,271.74 38,128.08 16,623.50
8,526.18
1,025.16 100,884.02

$ 1,496, 159.63 $ _ 456,344.34

$

22,727.20 $ ___-4_7_46_._63_

$ _ _-1_3_1._,9_69_.4_6_ $ _ _-1.;.;;;3;.;.1=9.;;;.;69;;;.;.4.;.;;6'-

$

-109,242.26 $

622,562.50

-4,746.63 27,875.97
791.09 -87.18

FUND BALANCE JUNE 30

$

513,320.24 $ ===2==3=,8==33==.2=5==

The notes to the general purpose financial statements are an integral part of this statement. -4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

894,554.99 $

818,018.67

352,028.31

310,667.80

$

109,485.54

793,537.19

709,685.21

1 771.56

41,621.15

29,688.47

$

111,257.10 $ 2,081,741.64 $ 1,868,060.15

$

$ _ _....;9;.;;;9..;,8=3..;.;4."'-94.;...

$

99,834.94 $

$

11,422.16 $

1,123,938.43 $

972,920.54

10,473.34 83,373.92 77,353.05 119,513.87 86,862.77 65,402.77 85,718.23 196,208.41
2,775.16 100,884.02 99,834.94

14,914.17 63,985.14 42,531.92 101,426.22 44,067.01 56,071.40 151,620.62 179,257.77
3,250.00 99,569.73
2,151.00

2,052,338.91 $ 1,731,765.52

29,402.73 $ _ _1..a..36""",2"""'9_4."-"-63~

$

131,969.46. $

131,969.46

-131,969.46

$

131,969.46 $ _ _ _ _o=.o=o;...

$

143,391.62 $

29,402.73 $

136,294.63

70,975.53

721,414.00

584,531.60

791.09 -87.18

218.42 369.35

$

214,367.15 $

751,520.64 $ ======7=2==1=,4=1==4=.0=0==

-5-

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2000

.
EXHIBITc

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 752,657.00 $ 800,444.93

610,536.00 10,100.00

684,051.65 34,390.25

$ 1,373,293.00 $ 1,518,886.83

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 Other Support Services Food Services Operation

$ 837,555.00 $ 880,678.77

2,994.00 38,872.00 44,506.00 105,808.00 116,312.00 59,069.00 105,748.00 181,844.00
2,000.00

5,847.34 40,102.18 39,224.97 102,890.37 78,336.59 65,402.77 85,718.23 196,208.41
1,750.00

Total Expenditures

$ 1,494,708.00 $ 114961159.63

Excess of Revenues over (under) Expenditures $ -121,415.00 $

22,727.20

OTHER FINANCING USES Other Uses

-131,969.46

Excess of Revenues over (under) Expenditures

and Other Financing Uses

$

-121,415.00 $

-109,242.26

FUND BALANCE JULY 1, 1999

590,901.36

622,562.50

FUND BALANCE JUNE 30. 2000

$ 469,486.36 $ 513.320.24

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 126,802.00 $

94,110.06

316,839.00

352,028.31

5,500.00

5,459.34

$ 449,141.00 $ 451,597.71

$ 235,062.00 $ 243,259.66

12,800.00 50,050.00 32,591.00 11,538.00
2,737.00

4,626.00 43,271.74 38,128.08 16,623.50
8,526.18

3,000.00 100,875.00

1,025.16 100,884.02

$ 448,653.00 $ 456,344.34

$

488.00 $

-4,746.63

$

488.00 $

-4,746.63

25,160.85

26,219.87

$

25.648.85 $ _ _2_1_,4..,7,_3...,24_

The notes to the general purpose financial statements are an integral part of this statement.
-6-

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Taliaferro County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists ofall the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To confo11n to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.

-7-

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Agency funds are purely custodial in nature and do not involve measure1nent ofresults ofoperations.
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 of the transaction can be dete11nined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30,

-8-

TALIAFERRO COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Taliaferro 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 prepared 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's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit ''B'' of this report:

-9-

TALIAFERRO COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 27,875.97

Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods

-416.68 -1,239.42

Fund Balance July 1, 1999 (Budget Basis)

$ 26,219.87

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses

-4,746.63

FUND BALANCE JUNE 30, 2000 (Budget Basis)

$ 21,473.24

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

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

(2) Obligations issued by the United States government,

- 10 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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

(5) Prime banker's acceptances,

(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from info11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Taliaferro County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on January 20, 2000 (levy date). Taxes were due on March 20, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Taliaferro County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5o/o of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

The tax millage rate levied for the 1999 tax year (calendar year) for the Taliaferro County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

16.39 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $109,485.54 and was recorded in the Capital Projects Fund. The State will te11ninate collection of this tax once an additional $520,387.93 has been collected or on June 30, 2008, whichever occurs first.

- 11 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenclitures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in confo11nity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS
Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on
deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than
110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,
waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
- 12 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State ofGeorgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal lntettnediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $697,591.49. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust deparhnent or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)
The Board's deposits are classified by risk category at June 30, 2000, as follows:

- 13 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D''

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 106,707.51

2

590,883.98

3

0.00

Total

$ 697,591.49

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $32,603.97 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

I
The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of_capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 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 ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-te1m instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.

- 14 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts and assets. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not incurred any liabilities for unemployment compensation during the past two fiscal years.

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Superintendent Principal Bookkeeper Office Clerk Secretary

$ 70,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00

- 15 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $29,922.01 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $24,989.01

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $4,933.00

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

01 /OOS-731-006

$ 138,000.00 $ 1,794,618.00

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

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant tc1n1s. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and

- 16 -

TALIAFERRO COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 8: RETIREMENT PLANS

survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and e.rnployer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000
1999 1998

100% 100% 100%

$ 88,164.91
$ 85,302.02
$ 76,187.73

- 17 -

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND
JUNE 30, 2000

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

27,470.66 $

4,797.95

1,065.46

3,202.05

1,207.77 1,152.24

$

30,896.13 $ =====8=,o=o=o=oo=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$

689.80

6,373.08

_ _ _ _ _ _ $ _ _ _8"""'.;.oo'""'o;...o;..o_

$

___ __ 7,062.88 $

8_.,_0_00.00

$

1,207.77

1,152.24

21,473.24 $ - - - - -0.0-0

$

23,833.25 $ - - - - -0.0-0

Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
- 18 -

30,896.13 $ ========8=,0=0=0=.=0=0=


EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

1,059.84 $

0.00 $

33,328.45 $

32,125.27

16,640.87

20,908.38

27,767.02



1,207.77 1,152.24

416.68 1,239.42

$

17,700.71 $

0.00 $

56,596.84 $ ===6=1..,.5.=4=8.=39=

$

4,085.38

13,615.33

$ _ _ _1..;.7...7_,_0_0._7_1



$

5,000.00

$

4,775.18

5,744.06

19,988.41

22,928.36

8,000.00

$

___ __ 32,763.59 $

33.,.6_7_2.42

$

1,207.77 $

416.68

1,152.24

1,239.42

$

o.oo $ _ _ _ _.;..o...;...oo_

21,473.24

26,219.87

$

0.00 $

0.00 $

___ __ 23,833.25 $

27.,.8_7_5.97

$

17,700.71 $

0.00 $

56,596.84 $ ===6=1=,5=48==39=

- 19 -

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues 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 PROGRAMS

$

6,528.00 $

59,404.05

84,150.05

5,459.34

$

96, 137.39 $ _ __,;5:;.;:9;.i..,4:..:0...:.;4:.::.0=-5

$

48,225.04

9,882.01 1,297.00

$ ___1-"-o.o..,.8-"-84'---.o'"'"2"--

$

100,884.02 $ _ _ _5;.;9;.i.,4.;.;0..;.4;.;;.0.;;..5

$

-4,746.63 $

0.00

27,875.97

0.00

791.09 -87.18

$

23,833.25 $ =====0.=00=

See notes to the general purpose financial statements.
- 20 -

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

13,794.00 $

267,878.26

$

281,672.26 $

14,384.01 $ 14,384.01 $

94,110.06 $ 352,028.31
5,459.34

42,839.06 310,667.80
5,338.38

451,597.71 $ - - -35~ 8,845-.2-4

$

180,650.61 $

4,626.00 43,271.74 38,128.08
6,741.49 7,229.18

1,025.16

$

281,672.26 $

$

0.00 $

0.00

14,384.01 $
14,384.01 $ 0.00 $ 0.00

243,259.66 $

201,318.49

4,626.00 43,271.74 38,128.08 16,623.50
8,526.18
1,025.16 100,884.02

24,361.00 4,529.00 10,784.75 2,400.00 11,568.10 1,500.00
99,569.73

456,344.34 $ _ _3.;...;5;..;;.6.:.;;,0..;;..3..;..;1.~07'--

-4,746.63 $

2,814.17

27,875.97

24,474.03

791.09 -87.18

218.42 369.35

$

0.00 $

0.00 $

23,833.25 $ ===2=7=,8=75==97....

- 21 -

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 2000

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS
JUNE 30, 2000 JUNE 30, 1999

$

199,402.00

$ 199,402.00 $

56,523.58

- - - - - - $ _ _.:..14:.,.:,9=6=5..a.;15:;_

14,965.15

14,451.95

$

199,402.00 $

14,965.15 $ 214,367.15 $ _ _1_0.,9_7_5...,53_

FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects $ Unreserved Undesignated

$
199,402.00
0.00

14,965.15 $ 0.00

14,965.15 $ 199,402.00
0.00

70,975.53 0.00

Total Fund Equity

$

199,402.00 $

14,965.15 $ 214,367.15 $ _ _1_0_,9..,75_._53.,.



See notes to the general purpose financial statements.

- 22-

TALIAFERRO COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2000

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

REVENUES
Taxes Other Funds
Total Revenues

$ $ _ _ _ _o~.::;.;oo:;...

$

0.00 $

109,485.54 $ 1 771.56
111,257.10 $

109,485.54 $ 1 771.56

99,913.48

111,257.10 $ _ __;9,<.::9:.,.:,9:....:,1.:.:3c.:.;48:::..

EXPENDITURES

Current Student Transportation Services
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures

$

47,000.00

$

63,263.80

$

63,263.80

601.50 $

34,764.82

35,366.32

1,204.82

1,204.82

2,151.00

$

63,865.30 $

35,969.64 $

99,834.94 $ _ _4..:.:9"-1,:.::5~1-c::.OO:::.

Excess of Revenues over (under) Expenditures

$

-63,865.30 $

75,287.46 $

11,422.16 $ _ __,;50=,7~6:::;2,c::;48:::..

OTHER FINANCING SOURCES (USES)

Operating Transfers In Operating Transfers Out

$

263,267.30

______ $

$
-131,297.84

263,267.30 -131,297.84

Total Other Financing Sources (Uses)

$

263,267.30 $ -131,297.84 $ _---"-13:a.,;1~,96=9.'-"46=-

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $
FUND BALANCE JULY 1

199,402.00 $ 0.00

-56,010.38 $ 70,975.53

143,391.62 $ 70,975.53

50,762.48 20,213.05

FUND BALANCE JUNE 30

$

199,402.00 $

14,965.15 $ 214,367.15 $ _ _1_0,.,9..,75_.,5..3..,.

See notes to the general purpose financial statements.

-23-

TALIAFERRO COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2000

EXHIBIT "I"

BALANCE JULY 1, 1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

STUDENT ACTIVITY FUND

ASSETS
Cash and Cash Equivalents $

4 554.89 $

9,251.52 $

========== 7,312.42 $

6,493.99

LIABILITIES
Funds Held for Others

$

4,554.89 $

9,251.52 $

7,312.42 $ ==-====6.,.4..9..3. ==99=

See notes to the general purpose financial statements.
-24-

TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

10.553 10.555

NIA $ 28,520.05

NIA

46,667.33 $

(2)
95,829.74 (3)

Total Child Nutrition Cluster

$ 75,187.38 $

95,829.74

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

10.550

NIA

10.558

NIA

5,054.28 3,908.39

5,054.28 (2)

Total U. S. Department of Agriculture

$ 84,150.05 $ _ _1:..::0.::.,0,:;884=-.:..:=.0:::.2

Education, U. S. Department of Special Education Cluster Pass-Through From Greene County Board of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement

84.027 84.173 84.173

NIA $ NIA NIA

8,910.00 $ 4,016.00
300.00

8,910.00 4,016.00
300.00

Total Special Education Cluster

$ 13,226.00 $

13,226.00

Other Programs

Pass-Through From Georgia Department of Education

Comprehensive School Reform Demonstration Project Elementary and Secondary Education Act

84.332

NIA

Title I Grants to Local Educational Agencies

84.010

NIA

Title II

Eisenhower Professional Development Title VI

84.281

NIA

Innovative Education Program Strategies Class Size Reduction Goals2000

84.298

NIA

84.340

NIA

State and Local Education Systemic Improvement Grants 84.276

NIA

Safe and Drug-Free Schools and Communities

84.186

NIA

65,000.00
107,891.87 16,000.00 3,191.00 11,961.39 50,000.00 608.00

65,000.00
107,891.87 16,000.00 3,191.00 11,961.39 50,000.00 608.00

Total U.S. Department of Education

$ 267,878.26 $ _ ___,2:::::6:!..a7,:.:.87:...:8:.:::.2:.:.6

Total Federal Financial Assistance
NIA = Not Available

$ 352,028.31 $ _ _3_6,..8,.,.76_2_.2_8

-25-

TALIAFERRO COUNlY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE 1

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures on this program/project were not maintained on a program/project basis.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Taliaferro 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.

26-

TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Sparsity Grant Special Instructional Assistance In-School Suspension Mid-tenn Adjustment Counselors Technology Specialist Local Five Mill Share Educational Equalization Fonnula Food Services Other State Programs Alternative Program At-Risk Summer School Program Health Insurance Lottery Programs Assistive Technology Computers in the Classroom
Greene County Board of Education Preschool Handicapped Program
Human Resources, Georgia Department of Second Step Violence Prevention Program
Office of Treasury and Fiscal Services
Public School Employees Retirement
CONTRACT Education, Georgia Department of Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

326,883.00

47,687.00

5,906.00

15,528.00

3,792.00

158,817.00

92,335.00 28,068.00 146,314.00 28,101.00 24,048.00
1,138.00 2,994.00 28,842.00 -163,882.00 20,355.00
$

1,695.00 1,901.92 24,989.01

$
6,528.00 6,404.05 53,000.00

13,140.00

1,244.01

4,933.00

13,794.00

TOTAL
326,883.00 47,687.00 5,906.00 15,528.00 3,792.00
158,817.00
92,335.00 28,068.00 146,314.00 28,101.00 24,048.00
1,138.00 2,994.00 28,842.00 -163,882.00 20,355.00 6,528.00
1,695.00 1,901.92 24,989.01
6,404.05 53,000.00
13,140.00
1,244.01
4,933.00
13,794.00

$

800,444.93 $

------==== 94,110.06 $

894,554.99

See notes to the general purpose financial statements. -27-

TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

Purchase of a new 60-passenger school bus to transport children to and from school $

47,000.00 $.

48,156.00

$

48,156.00

Construction of a covered walkway from Building 2010 to Building 2030

56,250.00

28,140.00 $

27,080.00

1,060.00

General renovation of classrooms 1-9 in Building 2020

146,750.00

9,980.64

8,889.64

1,091.00

Acquiring, constructing, installing, furnishing and equipping a new school for grades K-12 in Taliaferro County, including any school buildings and athletics facilities, and payment of expenses incident thereto

500,000.00

2,658,899.36

63,865.30

$

750,000.00 $ 2,745, 176.00 $

99,834.94 $ _ _ _5.o.,_.30_,1..o...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 the projects. Includes all cost from project inception to completion.

(3) The voters of Taliaferro 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 projects.

See notes to the general purpose financial statements.

-28-

TALIAFERRO COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment)

Expenditures on Combined Program Basis Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100o/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

397t 716 00 $ _ _ _..,;9-<,.;16;..;_7-"-'8.;.,;_00.:;_

$

529,592.60

35 t 102.29 $ _ ____,:2;;.,;;;5-<,.7;I_;.3""-'8.;...;_43.:;_

$

564,694.89

-22,813.80 $ _ _ _5;_4;..;.1.:.;,8..;.8.;.,;1.;..;.09.:;..

$

o.oo $ =====o=.o=o


See notes to the general purpose financial statements. - 29 -

TALIAFERRO COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30. 2000

GENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten (*)
Grades 1 - 3 (*)
Sub-Total K-3
Grades 4 - 5 (*)
Grades 6 - 8 (*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS
Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*l
Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

56,506.00

$

140,086.00

$

196,592.00 90 $

89,446.00 90

40,845.00 90

- - - - - $

326,883.00

$

50,855.40 $

0.00

126,077.40

176,932.80 $

0.00

80,501.40

36,760.50

294,194.70 $ _ _ _.._;;o.;.;;.o..;;..o

$

47,687.00

$

42,918.30 $

1,712.00

$

47,687.00 90 $

$ _ _ _s _,9_06_.oo_ 90 $

$

380,476.00

$

42,918.30 $ _ _"""""'1.;..11_2.;.;;.o.;;.o 5,315.40 $ _ _ ___;:o.;.;;.o..;;..o
342,428.40 $ _ _ _17;.;1.;;;;2;.;;.0.;;.0

$

12,792.00 90 $

11,512.80 $

0.00

2,736.00 100

2,736.00

$

15,528.00

$

14,248.ao $ _ _ ___;:o;;.;:.oc.=..o

s_ Total Fourteen Weighted and Media Center Programs

_,,3.96,_,,...004......,.00.

$

356,sn.20 $

- -- ---- - -- -

1,712.00
-----------

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

1,233.00

$

1,233.00 $

0.00

2,559.00

2,559.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

3,792.00 100 $

3,792.00 0.00 $ - ---- -- - - - - - - - - -

See notes to the general purpose financial statements.

- 30

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

50,855.40 $

64,195.28 $

2,093.95 $

66,289.23

126,077.40

191,842.87

5,123.78

196,966.65

$

176,932.80 $

256,038.15 $

7,217.73 $

263,255.88 $

0.00

80,501.40

113,639.33

4,874.46

118,513.79

0.00

36,760.50

63,607.17

2,490.74

66,097.91

0.00

$

294,194.70 $

433,284.65 $

14,582.93 $

447,867.58

-----'"-"-~

$

44,630.30

$

$
29,243.04 21,418.93

6,910.00 $ 3,355.84
799.00

6,910.00 32,598.88 21,418.93
799.00

$

44,630.30 $

50,661.97 $

11,064.84 $ -----"61-,-72-6=.8~1

0.00

$

5,315.40 $

16,668.04 $

90.66 $ _ _..;1..;a,6,"-758=.7..;;;.0

0.00

$

344,140.40 $

500,614.66 $

25,738.43 $ _ _5'""26"'"'""353.;...;.;.0"-'-9

$

11,512.80 $

28,977.94

$

28,977.94

0.00

_ _....;;;.2,"""13"""s"""'.o-"-o _ _ _ _ _ _ $ _ _-""-9,"'"36-'--'3""'.86"-'-

9,363.86

0.00

$

14,248.80 $

28,977.94 $

------- 9,363.86 $

38,341.80

$

358,389.20 $

-- --- - - - - - -

529,592.60 $

35,102.29 $

564,694.89 $ _ _ _ _ _ _ _o_.o_o

$

1,233.00

2,559.00

=----- $

3,792.00

$

3,866.02 $ _ _ _3_._,866_.02_

$

3,866.02 $

--------- 3,866.02 $

0.00

31

SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS


RussELL W. H1NTON
STATE AUDITOR
(404) 656,2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta. Georgia 30334-8400
March 14, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Taliaferro 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 ofTaliaferro County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 14, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. 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.
Compliance
As part of obtaining reasonable assurance about whether Taliaferro County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions of lav.s, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the deterrnination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed an instance ofnoncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7311-00-01.
Internal Control Over Financial Reporting
In planning and perfo11ning our audit, we considered Taliaferro County Board ofEducation's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-60

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Taliaferro County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7311-00-
02.
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 no11nal course of perfo11ning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However the reportable condition described above is considered to be a material weakness.
This report is intended solely for the info1111ation and use ofmanagement, members ofthe Taliafe110 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
2000YB-60

ell W. Hinton State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wasl1ingtc1n Street. S W,, St1itc 214 Atlanta, C,c(>rgia 3()334-84()()
March 14, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Taliaferro County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Taliaferro 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 its major Federal program for the year ended June 30, 2000. Taliaferro County Board of Education's major Federal program is identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Taliaferro County Board ofEducation's management. Our responsibility is to express an opinion on Taliaferro County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1111 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 Taliaferro County Board of Education's compliance with those requirements and perfo11ning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete11nination on Taliaferro County Board of Education's compliance with those requirements.
2000SA-10

In our opinion, the Taliaferro County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Taliaferro 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 perforrning our audit, we considered Taliaferro County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to deter1nine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the no11nal course ofperfo11ning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the info11nation and use ofmanagement, members ofthe Taliaferro 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 2000SA-10

oo ,u , w.
ssell.W. Hinton State Auditor

SECTION ill AUDI'I'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

TALIAFERRO COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

7311-93-01 7311-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7311-99-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staffthe Board has decided not to pursue the recording ofgeneral fixed assets on the financial statements.


SECTION IV FINDINGS AND QUESTIONED COSTS

TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Taliaferro County Board ofEducation's financial statements was qualified 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 Taliaferro County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Taliaferro County Board of Education disclosed one instance of noncomplianc.e deemed material to the financial statements. This noncompliance involved the Board's failure to transfer required funds from the General Fund to the Capital Projects Fund. Appropriate audit adjustments have been made to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Taliaferro County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Taliaferro County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Taliaferro County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Maior Programs Federal awards audited as major programs are as follows: 84.10 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type ''A'' Program Dollar Threshold
The dollar threshold for type ''A'' programs was $300,000.00.
9. Low Risk Auditee The Taliaferro County Board of Education was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.
- 1-

TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED ITJNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Transfer Local Matching Funds Material Noncompliance Finding Control Number: FS-7311-00-01
The Taliaferro County Board ofEducation received approval for State capital outlay project funding, through Georgia State Financing and Investment Commission. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Taliaferro County Board of Education to receive this funding require that the Taliaferro County Board of Education transfer required local matching funds to the Capital Projects Fund by June 30, 2000, and designate those funds by project name and number. This transfer was not made by the Taliaferro County Board ofEducation at June 30, 2000. This condition occurred because management claimed not to be aware ofthe provisions ofFMGLUA. A correcting audit adjustment was necessary to transfer $131,969.46 from the General Fund to GSFIC Project No. 01/00S-731-006 as required.
Management's Response:

A correcting Journal Entry was made on March 20, 2001 to transfer these funds.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7311-00-02
The Taliaferro County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional staff the Board has decided not to pursue the recording of general fixed assets on the financial statements.
-2-

TALIAFERRO COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.




-3-