""'n Aioo o fZ \ ,2 2\o 1,,qg--99 AUDIT REPORT TATINALL COUNTY BOARD OF EDUCATION REIDSVILLE, GEORGIA YEARENDEDJUNE30, 1999 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 TATTNALL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 7 ADDIDONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 20 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 21 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 DEBT SERVICE FUND I COMBINING BALANCE SHEET 24 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 25 FIDUCIARY FUND TYPES K COMBINING BALANCE SHEET 26 L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 27 TATTNALL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION! FINANCIAL ADDIDONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF EXPENDTIURES OF FEDERAL AWARDS 28 2 SCHEDULE OF STATE REVENUE 30 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 31 4 SCHEDULE OF EXPENDTIURES LOITERY PROGRAMS 32 ANALYSIS OF MINIMUM EXPENDTIURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 5 OVERALL 33 6 BYPROGRAM 34 SECTIONil COMPLIANCE AND INTERNAL CONI'ROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONI'ROL 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 CONI'ROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTIONill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I 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 February 24, 2000 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education and Superintendent and Members ofthe Tattnall County Board ofEducation 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 Tattnall 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 ofthe Tattnall County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 99ARL-13 * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. *- The 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 ofthese 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 of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Tattnall County Board of Education as of iune 30, 1999, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 24, 2000, on our consideration ofthe Tattnall 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 Tattnall County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) 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 of the general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 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. Respectfully submitted, RWH:jb 99ARL-13 ~44 .fll t.iJ - ~ ~ell W. Hinton State Auditor TATTNALL COUNTY BOARD OF EDUCATION TAIINALb QOUNTY BQARD QF EDUQATIQN CQMBINED B8be,NCE S!:IEET ALL FUND TYPl;;S AND AQQQUNT GRQUP JUNE 30. 1999 ASSETS Cash and Cash Equivalents lnvesbnents lnvesbnents Held by Trustee 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 Long Term Debt Total Assets GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 328,348.64 $ 474,639.93 $ 5,472,902.49 424,891.92 3,330.00 582,147.82 37,621.96 10,248.69 $ 756,570.56 $ 1,104,658.40$ 5,472,902.49 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Compensation Plan Capital Lease Agreements General Obligation Bonds Payable Long Term Debt Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement F,unds For Debt Service For Continuation of Federal Programs For Continuation of Lottery Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of SPLOST Projects Unreserved Undesignated Total Fund Equity $ 2,483.77 $ 65,656.11 225,569.86 10,971.64 $ 36,579.60 21,284.68 $ 2483.77 $ 302,197.61 $ 57,864.28 $ 24,213,01 $ 376.58 753,710.21 $ 754,086.79 $ 37,621.96 10,248.69 $ 730,377.13 802,460.79 $ 5,411,574.18 3464.03 5,415,038.21 Total Liabilities and Fund Equity The notes to the general purpose financial statements are an integral part of this statemenl -2- $ 756,570.~6 $ 1,104,658.40 $ 5,472,902.49 EXHIBIT"A" DEBT SERVICE FUND FIDUCIARY FUND TYPES EXPENDABLE TRUST FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onl~ JUNE 301 1999 JUNE 301 1998 $ 671,645.98 $ 6,947,537.04 $ 7,715,554.38 $ 513,225.22 513,225.22 30,764.49 ~ 446,010.56 309,512.18 1,316,551.92 582,735.47 3,330.00 3,330.00 37,621.96 10,248.69 34,375.97 10,690.86 $ 981,158.16 981,158.16 483,711.93 2,752,173.01 151,356.19 4,466,668.83 2,752,173.01 151,356.19 4,466,668.83 2,748,783.88 180,851.96 5,397,504.19 $ 9811158.16 $ 5131225.22 $ 813511356.19 $ 1711791871.02 $ 1716341313.69 $ 68,139.88 $ 60,893.67 225,569.86 225,615.48 10,971.64 17,410.21 36,579.60 21,284.68 446,010.56 $ 151,356.19 151,356.19 180,851.96 3,060,000.00 3,060,000.00 3,015,000.00 5,140,000.00 5,140,000.00 5,615,000.00 $ 8,351,356.19 $ 8,713,901.85 $ 9,560,781.88 $ 981,158.16 0.00 $ 513,225.22 $ 981,158.16 $ 513,225.22 $ 25,459.50 $ 981,158.16 483,711.93 114,658.96 24,213.01 376.58 376.58 37,621.96 10,248.69 5,411,574.18 34,375.97 10,690.86 5,588,240.15 2,000,776.59 1,816,017.86 $ 8,465,969.17 $ 8,073,531.81 $ 9811158.16 $ 5131225.22 $ 813511356.19 $ 1711791871.02 $ 1716341313.69 -3- TATTNALL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND 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 Capital Outlay Debt Service Principal Interest Paying Agent Fees ~ Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES} Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds Par Value Discount on Bonds Sold Payments to Bond Escrow Agent Proceeds from Loan Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 (Restated - See Note 1) Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND GOVERNMENTAL FUND SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 13,340,058.75 $ 5,644.86 2,432,901.34 174,803.71 $ 15,953,408.66 $ 815,926.31 2,866,558.10 334,102.67 $ 4,016,587.08 $ 399,514.02 399,514.02 $ 10,431,912.18 $ 943,136.31 481,819.91 325,438.30 416,499.24 1,098,225.18 84,095.51 1,368,681.15 940,313.98 38,464.08 90,232.68 29,495.n 10,464.23 1,683,338.73 307,927.32 305,746.53 80,788.54 824.20 847.91 11,n6.08 16,212.12 2,735.06 1,442,821.24 92,538.61 $ 689,448.32 $ 16,258,778.52 $ $ -305,369.86 $ 4,011,556.34 $ 5,030.74 $ 689,448.32 -289,934.30 $ -305,369.86 $ 1,059,456.65 5,030.74 $ 794,626.23 -289,934.30 5,704,972.51 3,245.99 -442.17 FUND BALANCE JUNE 30 $ 754,086.79 $ The notes to the general purpose financial statements are an integral part of this statement. -4- 802,460.79 $ 5,415,038.21 EXHIBIT"B" TYPES DEBT SERVICE FUND TOTAL FIDUCIARY FUND TYPES EXPENDABLE TRUST FUND TOTALS (Memorandum Only:} YEAR ENDED JUNE 30, 1999 JUNE 30, 1998 $ 14,155,985.06 2,872,202.96 $ 1,551,355.09 3,984,256.43 53,210.38 961,630.78 $ $ 1,604,565.47 $ 21,974,075.23 $ $ 36,450.17 36,450.17 $ 14,155,985.06 $ 2,872,202.96 3,984,256.43 998,080.95 22,010,525.40 $ 13,378,846.64 2,509,959.89 2,591,927.79 488,404.24 18,969,138.56 $ 12,115,250.91 $ 1,251,063.63 787,566.44 325,438.30 497,287.78 1,099,049.38 84,095.51 1,369,529.06 1,018,090.06 54,676.20 2,735.06 1,442,821.24 872,219.61 $ 720,000.00 404,138.56 1,586.00 749,495.77 414,602.79 1,586.00 $ 1,125,724.56 $ 22,085,507.74 $ $ 478,840.91 $ -111,432.51 $ 0.00 $ 0.00 $ 36,450.17 $ 12,115,250.91 $ 1,251,063.63 787,566.44 325,438.30 497,287.78 1,099,049.38 84,095.51 1,369,529.06 1,018,090.06 54,676.20 2,735.06 1,442,821.24 872,219.61 749,495.77 414,602.79 1,586.00 22,085,507.74 $ -74,982.34 $ 11,215,609.98 1,110,333.13 583,393.38 319,214.17 371,524.03 979,456.63 71,152.41 1,261,491.19 844,191.55 52,820.48 2,632.89 1,489,705.06 163,692.07 187,204.83 230,980.96 2,842.15 18,886,244.91 82,893.65 $ 12,389.44 $ 12,389.44 -72,224.73 -72,224.73 2,960,000.00 -16,325.15 -2,865,234.24 2,960,000.00 -16,325.15 -2,865,234.24 $ 18,605.32 $ 18,605.32 $ 497,446.23 $ -92,827.19 $ 483,711.93 8,042,767.32 3,245.99 -442.17 $ 12,389.44 -72,224.73 2,960,000.00 -16,325.15 -2,865,234.24 $ $ 18,605.32 $ 5,615,000.00 5,615,000.00 36,450.17 $ 476,775.05 -56,377.02 $ 8,519,542.37 5,697,893.65 2,360,534.90 3,245.99 -442.17 13,959.46 1,143.80 $ 981,158.16 $ 7,952i743.95 $ 513,225.22 $ 8,465,969.17 $ 8,073,531.81 -5- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "C" COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 1999 GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds $ 12,824,520.00 $ 13,340,058.75 10,000.00 5,644.86 2,321,416.00 2,432,901.34 150,000.00 174,803.71 Total Revenues $ 15,305,936.00 $ 15,953,408.66 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 Capital Outlay Debt Service $ 9,980,929.00 $ 10,431,912.18 1,110,181.00 385,277.00 333,709.00 341,817.00 1,063,843.00 92,214.00 1,310,180.00 865,600.00 39,624.00 3,000.00 943,136.31 481,819.91 325,438.30 416,499.24 1,098,225.18 84,095.51 1,368,681.15 940,313.98 38,464.08 60,000.00 90,232.68 39,960.00 Total Expenditures $ 15,586,374.00 $ 16,258,778.52 Excess of Revenues over (under) Expenditures $ -280,438.00 $ -305,369.86 FUND BALANCE JULY 1, 1998 1,078,820.55 1,059,456.65 Adjustments 101.00 FUND BALANCE JUNE 30, 1999 $ 798,483.55 $ 754,086.79 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 846,944.10 $ 815,926.31 2,526,766.00 2,866,558.10 417,185.90 334,102.67 $ 3,790,896.00 $ 4,016,587.08 $ 1,679,270.10 $ 1,683,338.73 173,800.00 29,016.00 307,927.32 305,746.53 75,773.00 1,650.00 80,788.54 824.20 88,000.00 21,376.00 1,463,222.90 847.91 77,776.08 16,212.12 2,735.06 1,442,821.24 92,538.61 $ 3,532,108.00 $ 4,011,556.34 $ 258,788;00 $ 5,030.74 626,554.27 749,559.40 $ 885,342.27 $ 754,590.14 The notes to the general purpose financial statements are an integral part of this statement. -6- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Tattnall 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 account 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 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 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- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 1: SUMMARY OF SIGNlFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for :financial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. FIDUCIARY FUND TYPES - the funds 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. These funds include: EXPENDABLE TRUST FUNDS 4-H Club Trust Fund - the fund used to account for proceeds from the sale of 4-H property and used to provide for the assistance of Tattnall County children enrolled at the College ofAgriculture of the University of Georgia. Deferred Compensation Plan - the fund used to account for financial resources to be used for the employees ofthe Board. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding promissory notes 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 and expendable trust 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 presentfacreases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: - 8- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe 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 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 of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two ofthe 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. RESTATEMENT OF PRIOR YEAR FUND BALANCE In prior years, the Board's deferred compensation plan, created in accordance with Internal Revenue Code Section 457, was reported as an agency fund. This agency fund had a fund balance of$446,010.56 at June 30, 1998. For fiscal year 1999, the Board converted this plan to an expendable trust fund in accordance with changes in Federal law. The fund balance at July 1, 1998 has been restated as appropriate. BUDGET The Tattnall 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. -9- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The budget process begins when the Board's ad.ministration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper 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. The Statement ofRevenues, 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: Special Revenue Fund FUND BALANCE JULY 1, 1998 $ 794,626.23 Adjustments Inventories - July 1, 1998 Food Donated Commodities Purchased Foods -34,375.97 -10,690,86 Fund Balance July 1, 1998 (Budget Basis) $ 749,559.40 Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 5,030.74 FUND BALANCE JUNE 30, 1999 (Budget Basis) $ 754.590.14 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized :financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. -10- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS fuvestments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. fu 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: (I) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government fuvestment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose :financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Tattnall County Board ofCommissioners fixed the property tax levy for the 1998 tax year (calendar year) on November 9, 1998 (levy date). Taxes were due on February 28, 1999. The lien date for property taxes -11 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Tattnall County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the Board. Tax millage rates levied for the 1998 tax year (calendar year) for the Tattnall County Board ofEducation were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 11.38 mills 1.82 mills 13.20 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,147,792.91 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $6,084,711.28 has been collected or on March 31, 2003, whichever occurs first. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparatio~ 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. -12- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 ofinterfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 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 conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Jnterfund eliminations have not been made in the aggregation ofthis 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 ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face 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 discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of any one 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, -13- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 2: DEPOSITS AND INVESTMENTS (3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe 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 pmpose, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates ofindebtedness, 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 $8,581,200.81'. The amounts of the total bank balances are classified into three categories ofcredit risk: I Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging :financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging :financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 1999, as follows: Risk Category Bank Balance 1 $ 781,140.83 2 3,725,421.61 3 4,074,638.37 Total $ 8.581.200.81 - 14- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS n,JNE 30, 1999 Note 2: DEPOSITS AND INVESTMENTS CATEGORIZATION OF INVESTMENTS At June 30, 1999, the fair value ofthe Board's total investments was $480,721.42 and this entire amount is categorized as Unclassified - Deferred Compensation Plan pooled investments. 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 ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. 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 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. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 1998 1999 Beginning ofYear Liability Claims and Changes in Estimates $ 0.00 $ 4,299.00 $ $ 0.00 $ 1,666.00 $ Claims Paid End ofYear Liability 4 999.00 $ 0.00 1,666.00 $ 0.00 The Board has purchased surety bonds to provide additional insurance coverage as follows: - 15 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 4: RISK MANAGEMENT Position Covered Amount Superintendent All Employees $ 50,000.00 $ 150,000.00 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Tattnall County Board ofEducation has entered into various lease agreements as lessee for purchase of equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. PROMISSORY NOTES Promissory Notes currently outstanding are as follows: Purpose Interest Rate Amount General Government - Series 1998 4.50% $ 5.140.000.00 ADVANCE REFUNDING During fiscal year 1999, the Tattnall County Board ofEducation issued $2,960,000.00 in General Obligation Refunding Bonds to advance refund $2,670,000.00 ofoutstanding bonds. The bond issue of$2,960,000.00 less discount of $16,325.15 less underwriters and bond issue cost of$72,224.73 provided net proceeds of $2,871,450.12. The total net proceeds less excess funds of$6,215.88 were deposited in an irrevocable trust with an escrow agent to provide for future debt service payments on portions of the 1990 Bond issue. As a result, portions ofthe 1990 Series Bonds are considered defeased, and the liabilityfor these portions has been removed from the General Long-Term Debt Account Group. The Tattnall County Board of Education refunded the aforementioned bonds to reduce its total Debt Service payments over 11 years beginning subsequent to fiscal year 1999 by $346,222.32 and to obtain an economic gain (difference between the present values of total debt service payments and the old and new debt) of$274,557.39. GENERAL OBLIGATION DEBT General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government- Series 1990 General Government- Refunding- Series 1999 6.55% - 9.00% 3.10%-4.00% $ 180,000.00 2,880,000.00 $ 3.060.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1999, were as follows: - 16- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 5: GENERAL LONG-TERM DEBT Balance July 1, 1998 Additions G. 0. Bonds Deductions Bonds Defeased Debt Retired Balance June 30, 1999 Capital Leass:s Promissory Notes General Obligation Bonds Total $ 180,851.96 $ 5,615,000.00 $ 3,015,000.00 $ 8,810,851.96 2,960,000.00 2,960,000.00 29,492.27 475,000.00 2,670,000.00 245,000.00 2,670,000.00 749 495.77 $ 151,356.19 $ 5,140,000.00 $ 3,060,000.00 $ 8,351,356.19 . At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 2000 2001 2002 2003 2004 2005 - 2009 2010-2014 Total Principal and Interest Deduct: Imputed Interest Net Present Value ofFuture Minimum Lease Payments Capital Leases Promissory Notes General Obligation Bonds Total Debt $ 39,960.00 $ 1,126,300.00 $ 350,905.00 $ 1,517,165.00 39,960.00 1,381,025.00 342,325.00 1,763,310.00 39,960.00 1,482,475.00 344,335.00 1,866,770.00 39,960.00 1,786,950.00 345,760.00 2,172,670.00 13,320.00 346,580.00 359,900.00 1,743,415.00 1,743,415.00 348,400.00 348,400.00 . $ 173,160.00 $ 5,776,750.00 $ 3,821,720.00 $ 9,771,630.00 2U03.81 $ 151,356.19 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of$247,837.18 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of $201,980.18 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$45,857.00 - 17 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1999. Project Unearned Executed Contracts Reidsville Middle School Renovations Glennville Middle School Renovations $ 1,972,665.47 2,003,979.41 $ 3.976.644.88 The amounts described in this note are not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements. Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees 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 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1999 Note 9: 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% $ 1,343,128.38 1998 100% $1,207,444.78 1997 100% $ 1,100,238.76 -19- TATTNALL COUNJY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1999 EXHIBIT "E" ASSETS cash and cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 824,327.56 $ 100,490.14 FEDERAL OTHER TOTALS PROGRAMS PROGRAM JUNE 30, 1999 JUNE 3011998 $ 3,307.28 $ 928,124.98 $ 900,321.14 6,174.69 $ 575,973.13 582,147.82 136,312.49 37,621.96 10,248.69 37,621.96 10,248.69 34,375.97 10,690.86 $ 872,198.21 $ 106,664.83 $ 575,973.13 $ 3,307.28 $ 1,558,143.45 $ 1,081,700.46 LIABILITIES AND FUND EQUITY LIABILITIES cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable $ 453,485.05 $ 28,394.88 $ 15,114.08 22,147.15 65,555.55 67,285.68 92,728.63 52.06 . 71612.30 $ Total Liabilities $ 93,950.43 $ 821451.82 $ 575,973.13 $ FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Continuation of Lottery Programs $ For Inventories Food Donated Commodities $ 37,621.96 Purchased Food 10,248.69 Unreserved Undesignated 13013n.13 Total Fund Equity $ n8,247.78 $ 24,213.01 0.00 $ 241213.01 $ 0.00 $ 0.00 $ $ 3,307.28 3,307.28 $ $ 0.00 0.00 $ 453,485.05 65,656.11 $ 225,569.86 10,971.64 51,317.52 225,615.48 10,141.23 755,682.66 $ 287,074.23 $ 114,.658.96 24,213.01 37,621.96 10,248.69 34,375.97 10,690.86 73013n.13 802,460.79 $ 634,900.44 794,626.23 Total Liabilities and Fund Equity $ 872,198.21 $ 106,664.83 $ 575,973.13 $ 3,307.28 $ 1,558.143.45 $ 1,081,700.46 See notes to the general purpose financial statements. -20- TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1999 EXHIBIT"P REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 Food Inventory Net Change in Period Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY FEDERAL PROGRAMS PROGRAMS OTHER PROGRAM TOTALS YEAR ENDED JUNE 301 1999 JUNE 301 1998 $ 103,824.00 $ 640,485.59 $ 1,099,059.68 $ 1,767,498.42 333,345.29 757.38 71,616.72 $ 815,926.31 $ 966,806.71 2,866,558.10 2,409,239.66 334,102.67 296,195.86 $ 1,536,228.97 $ 640,485.59 $ 1,768,255.80 $ 71,616.72 $ 4,016,587.08 $ 3,672,242.23 $ 483,167.24 $ 1,132,549.84 $ 67,621.65 $ 1,683,338.73 $ 1,644,515.56 $1,440,752.28 108,895.98 209.36 24,000.00 199,031.34 301,751.46 80,788.54 824.20 638.55 53,776.08 16,212.12 2,735.06 2,068.96 92,538.61 3,995.07 307,927.32 305,746.53 80,788.54 824.20 847.91 77,776.08 16,212.12 2,735.06 1,442,821.24 92,538.61 205,539.52 38,440.87 36,179.04 360.00 1,022.19 84,497.79 16,843.71 1,132.89 1,489,705.06 $1,440,752.28 $ 616,272.58 $ 1,882,914.76 $ 71,616.72 $ 4,011,556.34 $ 3,518,236.63 $ 95,476.69 $ 24,213.01 $ -114,658.96 $ 0.00 $ 5,030.74 $ 154,005.60 679,967.27 0.00 114,658.96 0.00 794,626.23 625,517.37 3,245.99 -442.17 3,245.99 -442.17 13,959.46 1,143.80 EUND BALANCE JUNE 30 $ 778,247.78 $ 24,213.01 $ 0.00 $ 0.00 $ 802,460.79 $ 794,626.23 See notes to the general purpose financial statements. -21 TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1999 EXHIBITG ASSETS Cash and Cash Equivalents REGULAR LOAN PROCEEDS FUND TOTALS JUNE 30, 1999 JUNE 30, 1998 $ 3,464.03 $ 5,469,438.46 $ 5,472,902.49 $ 5,704,972.51 ~ LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of SPLOST Projects Unreserved Undesignated $ Total Fund Equity $ $ 36,579.60 $ 36,579.60 21,284.68 21,284.68 $ 57,864.28 $ 57,864.28 $ 3,464.03 3,464.03 $ 5,411,574.18 $ 0.00 5,411,574.18 $ 5,411,574.18. $ 3,464.03 5,415,038.21 $ 5,588,240.15 116,732.36 5,704,972.51 Total Liabilities and Fund Equity $ 3,464.03 $ 5,469,438.46 $ 5,472,902.49 $ 5,704,972.51 See notes to the general purpose financial statements. -22- TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 1999 EXHIBIT"H" REVENUES Other Funds $ EXPENDITURES Capital Outlay Building and Building Improvements $ Excess of Revenues over (under) Expenditures $ OTHER FINANCING SOURCES Proceeds From Loan Excess of Revenues and Other Financing Sources over (under) Expenditures $ FUND BALANCE JULY 1 REGULAR LOAN PROCEEDS FUND TOTALS YEAR ENDED JUNE 301 1999 JUNE 30, 1998 4,383.17 $ 395, 130.85 $ 399,514.02 $ 41,646.35 117,651.50 $ -113,268.33 $ 571,796.82 $ -176,665.97 $ 689,448.32 $ -289,934.30 $ 95,351.36 -53,705.01 5,615,000.00 :113,268.33 $ 116,732.36 -176,665.97 $ 5,588,240.15 -289,934.30 $ 5,704,972.51 5,561,294.99 143,677.52 FUND BALANCE JUNE 30 $ 3,464.03 $ 5,411,574.18 $ 5,415,038.21 $ 5,704,972.51 See notes to the general purpose financial statements. -23- TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 1999 EXHIBIT"!" ASSETS Cash and Cash Equivalents Accounts Receivable PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 1999 JUNE 30, 1998 $ 295,188.31 $ 376,457.67 $ 671,645.98 $ 252,319.18 12,638.68 296,873.50 309,512.18 231,392.75 Total Assets $ 307,826.99 $ 673,331.17 $ 981,158.16 $ ==4=8=3=,7=11=.93= FUND EQUITY Fund Balances Reserved For Debt Service $ Unreserved Undesignated Total Fund Equity $ 307,826.99 $ 0.00 673,331.17 $ 0.00 981,158.16 $ 0.00 483,711.93 0.00 307,826.99 $ 673,331.17 $ 981,158.16 $ _ _4_8_3_.1_11_.9_3..... See notes to the general purpose financial statements. -24- TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30, 1999 EXHIBIT"J" 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 {USES} Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds Par Value Discount on Bonds Sold Payments to Bond Escrow Agent Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 301 1999 JUNE 30, 1998 $ 403,562.18 $ 1,147,792.91 $ 1,551,355.09 $ 576,203.76 18,185.20 35,025.18 53,210.38 17,195.95 $ 421,747.38 $ 1,182,818.09 $ 1,604,565.47 $ 593,399.71 $ 245,000.00 $ 475,000.00 $ 720,000.00 $ 155,000.00 152,155.83 251,982.73 404,138.56 218,680.00 1,586.00 1,586.00 2,842.15 $ 398,741.83 $ 726,982.73 $ 1,125,724.56 $ 376,522.15 $ 23,005.55 $ 455,835.36 $ 478,840.91 $ 216,877.56 $ 12,389.44 -72,224.73 2,960,000.00 -16,325.15 -2,865,234.24 $ 18,605.32 $ 12,389.44 -72,224.73 2,960,000.00 -16,325.15 -2,865,234.24 $ 18,605.32 $ 41,610.87 $ 455,835.36 $ 497,446.23 $ 216,877.56 266,216.12 217,495.81 483,711.93 266,834.37 FUND BALANCE JUNE 30 $ 3071826.99 $ 6731331.17 $ 9811158.16 $ 483,711.93 See notes to the general purpose financial statements. -25- TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 1999 EXHIBIT "K" ASSETS Cash and Cash Equivalents Investments Investments Held by Trustee Total Assets 4-HCLUB TRUST FUND DEFERRED COMPENSATION PLAN TOTALS JUNE 30.1999 JUNE 30. 1998 $ 29,016.53 $ 32,503.80 $ 480,721.42 $ 513,225.22 443,770.45 $ 32.503.80 $ 480.721.42 $ s ___ 513.225.22 41_2_.1_8_6._98_ LIABILITIES AND FUND EQUITY LIABILITIES Deferred Compensation Plan FUND EQUITY Fund Balances Unreserved Undesignated $ Total Liabilities and Fund Equity $ $ 443,770.45 32,503.80 $ 480,721.42 $ _ _5__1_3_...,2_2_5_._2_2__ 29,016.53 32,503.80 $ 480,721.42 $ 513.225.22 s ___4.1..2...1..8...,6..,.9,..8 See notes to the general purpose financial statemen1s. -26- TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPES - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 1999 EXHIBIT"L" REVENUES 4-H CLUB TRUST FUND DEFERRED COMPENSATION PLAN TOTALS YEAR ENDED JUNE 30, 1999 JUNE 301 1998 Other Funds $ 1,739.31 $ 34,710.86 $ 36,450.17 $ 1,747.96 EXPENDITURES None Noted $ 0.00 $ 0.00 $ 0.00 $ 0.00 Excess of Revenues over (under) Expenditures $ 1,739.31 $ 34,710.86 $ 36,450.17 $ 1,747.96 FUND BALANCE JULY 1 (Restated - See Note 1) 30,764.49 446,010.56 476,775.05 29,016.53 FUND BALANCE JUNE 30 $ 32,503.80 $ 480,721.42 $ 513,225.22 $ ===3.,..0,=764=.4==9 See notes to the general purpose financial statements. -27- TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 1999 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant Total Child Nutrition Cluster Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1999 Contract Total U.S. Department of Agriculture Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1999 Grant Preschool 1999 Grant Total Special Education Cluster Other Programs Direct Impact Aid 1993 Grant 1999 Grant Pass-Through From First District Regional Educational Service Agency d/bla Live Oak Migrant Education Agency Elementary and Secondary Education Act TiUe 1 Migrant Education 1998Summer 1999 Regular 1999 Summer Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1999 Grant Title II Eisenhower Professional Development 1999 Grant Title VI Innovative Education Program Strategies 1999 Grant CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10.553 10.555 NIA $ 289,582.24 NIA 694,355.37 $ $ 983,937.61 $ (2) 1,352,640.53 (3) 1,352,640.53 10.550 10.558 NIA 88,111.75 88,111.75 NIA 27,010.32 (2} $ 1,099,059.68 $ 1,440,752.28 84.027 84.173 NIA $ 162,180.00 $ NIA 28,981.04 $ 191,161.04 $ 162,180.00 28,981.04 191,161.04 84.041 84.041 4,095.38 (4) 1,549.48 (4) 84.011 NIA 84.011 NIA 84.011 NIA 38,964.41 64,510.80 25,968.60 38,964.41 64,510.80 25,968.60 84.010 NIA 84.281 NIA 84.298 NIA -28- 779,371.30 19,076.00 22,846.00 779,371.30 19,076.00 22,846.00 TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 1999 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Education, U.S. Department of Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Goals 2000 State and Local Education Systemic Improvement Grant 1999 Grant Technology Literacy Challenge Fund Grant 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant Tech-Prep Education 1999 Grant Total U. S. Department of Education Health and Human Services, U.S. Department of Pass-Through From Georgia Children and Youth Coordinating Council Abstinence Education Morals and Self-Esteem 1999 Grant Labor, U.S. Department of Direct School-to-Work Opportunities Act of 1994 Urban/Rural Opportunities Grant 1998 Grant CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.276 84.318 84.048 84.243 N/A $ 17,060.14 $ N/A -6,849.00 17,060.14 107,809.96 N/A 70,831.00 N/A 5,000.00 $ 1,233,585.15 $ 70,831.00 5,000.00 1,342,599.25 93.235 * 84.278A $ 4,980.43 $ 4,980.43 $ 534,577.70 $ 535,335.08 (3) Total Federal Financial Assistance $ 2,872,202.96 $ N/A = Not Available Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value ofnonmonetary 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) Funds earned on this program do not require reporting of expenditures. 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 Tattnall County Board of Education and is presented on the modified accrual basis of accounting which is the same basis of accounting used in the presentation of the general purpose financial statements. 3,323,667.04 See notes to the general purpose financial statements. -29- TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999 SCHEDULEza AGENCY/FUNDING GRANTS Community Affairs, Georgia Department of Local Assistance 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 Limited English Speaking Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Record Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom Office of School Readiness Pre-Kindergarten Program Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Education, Georgia Department of Reading First Program See notes to the general purpose financial statements. GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 33,500.00. $ 33,500.00 7,521,050.00 1,280,185.00 112,451.00 314,048.00 84,669.00 1,992,084.00 476,908.00 133,506.00 27,444.00 449,662.00 75,TT5.00 51,694.00 57,283.00 31,945.00 28,842.00 -988,178.00 1,087,932.00 $ 56,511.00 128,155.00 55,000.00 13,082.49 201,980.18 .5,000.00 3,240.00 49,534.00 4,627.58 2,434.50 3,837.00 45,857.00 103,824.00 6,174.69 64,641.00 569,669.90 7,521,050.00 1,280, 185.00 112,451.00 314,048.00 84,669.00 1,992,084.00 476,908.00 133,506.00 27,444.00 449,662.00 75,775.00 51,694.00 57,283.00 31,945.00 28,842.00 -988, 178.00 1,087,932.00 103,824.00 56,511.00 128,155.00 55,000.00 13,082.49 201,980.18 5,000.00 3,240.00 49,534.00 4,627.58 2,434.50 3,837.00 6,174.69 64,641.00 569,669.90 45,857.00 71,616.72 71,616.72 $ 13,340,058.75 $ 815,926.31 $ 14,155,985.06 -30- TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 1999 SCHEDULE 3 PROJECT ORIGINAL ESTIMATED COST(1) CURRENT ESTIMATED COST(2) I) To renovate the fonner Glennville High School for use as a middle grades (6,7 ,8) school; (ii) to renovate the fonner Reidsville High School for use as a middle grades (6,7,8) school; (iii) to enlarge and renovate Collins Elementary School; and (iv) to purchase personal property to be used in the above described renovated and expanded facilities $ 7,450,000.00 $ 5,9881334.50 $ AMOUNT EXPENDED IN CURRENT YEAR(3) 571;796.82 $ AMOUNT EXPENDED IN PRIOR YEARS 58,000.00 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the project. Includes ail costs from project inception to completion. (3) The voters of Tattnall County approved the imposition of a 1% sales tax to fund the above project and retire associated debt Amounts expended for this project may include sales tax proceeds, state, local property taxes and other funds over the life of the project. See notes to the general purpose financial statements. -31 - TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1999 SCHEDULE 4 EXPENDITURES Current Instruction Support Services Pupil Services Maintenance and Operation of Plant Student Transportation Services ASSISTIVE TECHNOLOGY COMPUTERS INTHE CLASSROOM PRE-KINDERGARTEN PROGRAM $ 6,174.69 $ 40,427.99 $ 436,564.56 $ 108,895.98 209.36 24,000.00 TOTAL 483,167.24 108,895.98 209.36 24,000.00 Total Expenditures $ 6,174.69 $ 40,427.99 $ 569,669.90 $ --6=16..,.,2...,7.2.=.58- RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Computers in the Classroom Pre-Kindergarten Program $ 509,681.38 6,174.69 40,427.99 59,988.52 $ -===-==6...,1..,6,=27...,2,...5=8 See notes to the general purpose financial statements. -32- TATTNALL 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 Expenditures per Audit Amount of Underexpenditure for Total Allotment FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 9,279,428.00 $ 292,848.00 $ 9,144,316.29 404,794.31 $ _ ___,;;..34.;.;;_2,_0__3_4_.5__3_ $ _ _..;.9.:.;.,5-'-'49a.:.,1.;..;1.;.0;.;.6.;a.,.O $ 0.00 $ = = = = =0.=00 See notes to the general purpose financial statements. - 33 - TATTNALL COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30.1999 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total K-3 Grades 4 - 5 (*) Grades 6 8 (*) Grades 9 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category II (*) category 111 (*) Category IV (*) Sub-Total - Regular Category VI (Gifted) {*) Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*l Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Fourteen Weighted and Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL ~ ORIGINAL MID-TERM $ 795,657.00 $ 716,091.30 $ 0.00 2,221,271.00 1,999,143.90 $ 3,016,928.00 90 $ 2,715,235.20 $ 0.00 952,335.00 90 857,101.50 1,588,038.00 90 1,429,234.20 736,808.00 90 663,127.20 606,526.00 90 545,873.40 620,415.00 90 558,373.50 $ 7,521,050.00 $ 6,768,945.00 $ 0.00 $ 1,142,157.00 $ 1,027,941.30 $ 51,694.00 $ 1,142,157.00 90 $ 1,027,941.30 $ 138,028.00 90 124,225.20 $ 1,280,185.00 $ 1,152,166.50 $ $ 112,451.00 90 $ 101,205.90 $ $ 8,913,686.00 $ 8,022,317.40 $ 51,694.00 51,694.00 0.00 51,694.00 $ 251,296.00 90 $ 226,166.40 $ 0.00 62,752.00 100 62,752.00 $ 314,048.00 $ 288,918.40 $ 0.00 $ 9,227,734.00 $ 8,311,235.80 $ 51,694.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs {*) Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. $ 26,715.00 $ 26,715.00 $ 0.00 57,954.00 57,954.00 0.00 $ 84,669.00 100 $ 84,669.00 $ =====0.0=0 34 SCHEDULE "6" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 716,091.30 $ 854,274.48 $ 11,573.48 $ 865,847.96 1,999, 143.90 1,987,627.26 48,195.92 2,035,823.18 $ 2,715,235.20 $ 2,841,901.74 $ 59,769.40 $ 2,901,671.14 $ 0.00 857,101.50 1,094,413.14 22,500.37 1,116,913.51 0.00 1,429,234.20 1,804,587.55 42,728.66 1,847,316.21 0.00 663,127.20 725,235.55 71,481.53 796,717.08 0.00 545,873.40 551,145.37 10,679.08 561,824.45 0.00 558,373.50 456,754.85 104,071.47 560,826.32 0.00 $ 6,768,945.00 $ 7,474,038.20 $ 311,230.51 $ 7,785,268.71 $ 1,079,635.30 $ 140,019.47 960,387.10 $ 42,630.54 $ 26,141.07 140,019.47 986,528.17 42,630.54 $ 1,079,635.30 $ 1,143,037.11 $ 26,141.07 $ 1,169,178.18 0.00 124,225.20 155,621.19 4,145.49 159,766.68 0.00 $ 1,203,860.50 $ 1,298,658.30 $ 30,286.56 $ 1,328,944.86 $ 101,205.90 $ 121,132.36 $ 517.46 $ 121,649.82 0.00 $ 8,074,011.40 $ 8,893,828.86 $ 342,034.53 $ 9,235,863.39 $ 226,166.40 $ 250,487.43 $ 250,487.43 0.00 62,752.00 - - - - - - $ ____62_.,7_5_9...7...8..... 62,759.78 0.00 $ 288,918.40 $ 250,487.43 $ 62,759.78 $ _____3_13_._,2_4_7._2_1 $ 8,362,929.80 $ 9,144,316.29 $ 404,794.31 $ 9,549,110.60 $ 0.00 ======== $ 26,715.00 57,954.00 $===84==,6=6=9=.o=o $ 26,879.39 $ 26,879.39 60,074.49 60,074.49 $ 86,953.88 $ 86,953.88 s=======o=.o=o - 35 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 February 24, 2000 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Tattnall County Board ofEducation 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 of Tattnall County Board ofEducation as of and for the year ended June 30, 1999, and have issued our report thereon dated February 24, 2000. 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 Tattnall 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 of financial 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. Internal Control Over Financial Reporting In planning and performing our audit, we considered Tattnall County Board ofEducation'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 a certain matter involving the internal control over financial reporting and its 99YB-40 operation that we consider to be areportable 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 ourjudgement, could adversely affect Tattnall County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7321-99-01. A material weakness is a condition in which the design or operation ofone 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 ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended solely for the information and use ofmanagement, members ofthe Tattnall 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, ~LO.~ RWH:jb 99YB-40 State Auditor w. RUSSELL HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 February 24, 2000 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation and Superintendent and Members ofthe Tattnall County Board ofEducation 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 Tattnall 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. Tattnall 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 Tattnall County Board of Education's.management. Our responsibility is to express an opinion on Tattnall 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 Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Pro.fit 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 Tattnall 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 Tattnall County Board ofEducation's compliance with those requirements. 99SA-10 In our opinion, the Tattnall 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 Tattnall County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Tattnall County Board ofEducation's internal control over compliance with requirements that could have a direct ancf material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133. Our consideration 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 of one 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 in the normal course of performing their assigned functions. wenoted 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 ofmanagement, members of the Tattnall 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, r 4A Jll u) Russell W. Hinton State Auditor RWH:jb 99SA-10 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS TATTNALL 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 FS-7321-97-01 FS-7321-98-01 FS-7321-98-02 FS-7321-98-03 Further Action Not Warranted Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $376.58 Finding Control Number: FS-7321-98-01 The underexpenditure of Quality Basic Education (QBE) funds of $376.58 for the General and Career Education Program - High School Laboratories will be returned to the Georgia Department of Education through an increase in the Board's local fair share for the QBE programs in a subsequent fiscal period. EMPLOYEE COMPENSATION Salary Underpayments/Overpayments Amount: $1,162.51 Finding Control Number: FS-7321-98-02 The Tattnall County Board ofEducation has been unable to recover any monies overpaid to three employees. All of these employees stopped working for the Board before the end of the 98 fiscal year and before the overpayments were found. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7321-98-03 Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. SECTION IV FINDINGS AND QUESTIONED COSTS TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999 I SUMMARY OF AUDITOR'S RESULTS 1. T)!l)e of Report Issued on the Financial Statements The auditor's opinion on the Tattnall County Board of Education'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 Tattnall 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 Tattnall County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Tattnall County Board ofEducation did not disclose any reportable conditions in internal control over major programs. 5. T)!pe of Report Issued on Compliance for Major Programs The auditor's opinion on the Tattnall 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) ofOMB Circular A-133 The Tattnall County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program-Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.278A School -To - Work Opportunities Act of 1994- Urban/Rural Opportunities Grant 8. T)!l)e "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 9. Low Risk Auditee The Tattnall County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. - 1- TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999 Il FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeat From Prior Year Finding Control Number: FS-73~1-99-01 The Tattnall 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 of a 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 ofall additions and deletions to the General Fixed Assets Account Group. Management's Response: We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff the Board has decided not to pursue the recording of general fixed assets on the :financial statements. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-