TA1TNALL 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 FUNDS 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 20 F. COMBINING STATEMENT.OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 22 CAPITAL PROJECTS FUND COMBINING BALANCE SHEET 24 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 26 DEBT SERVICE FUND I . COMBINING BALANCE SHEET 28 J . COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 29 FIDUCIARY FUND TYPES COMBINING BALANCE SHEET 30 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 31 I , ... .J " 1 I . .1 , I .., J.. ' I"/ '1 ; I TA1TNALL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION! FINANCIAL ADDillONAL FINANCIAL INFORMATION SCHEDULES I SCHEDULE OF EXPENDITTJRES OF FEDERAL AWARDS 32 2 , SCHEDULE OF STATE REVENUE 34 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 35 ANALYSIS OF MINIMUM EXPENDITTJRE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 37 5 BYPROGRAM 38 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 ' SECTION ill AUDITEE'S RESP~NSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS I r,..-, t ;, i' '' _, " SECTION I FINANCIAL - --- ----- - - - - - RussEu. \\.1 H1NTON STATE AUDITOR (404) 656-2174 ~ DEPARTMENT OF AUDITS AND ACCOUNTS 254 V..'ashington Street. S.W.. Suilc 214 Atlanta. Georgia 30334-X400 March 21, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Tattnall 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 Tattnall 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 of the Tattnall County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we. plan and perform the audit to obtain reasonable assurance about whether the financial statemerits are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 2000ARL-13 ; ' '' . ,. ,.. ,. .. . ' I .. ,. ' 1 L l ' I .I . -' J . l ., , } 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. * 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, 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 determined, but are believed to be material. In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe 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 June 30, 2000, 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 March 21, 2001, on our consideration of the Tattnall County Board of Education's internal control over financial reporting anci our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 2000ARL-13 , . ,l, :.!., ( .L . , ' I : < ' ' 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 5), which includes the Schedule of.Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, 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 informaiion has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect of adjustments, ifany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent 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 State Auditor L '' . ' j ' -- - --- '-._ L TATTNALL COUNTY BOARD OF EDUCATION TATTNALL COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2000 ASSETS - Cash and Cash Equivalents Investments Accounts Receivable Prepaid Items Inventories Food Donated Commodities Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Long Term Debt GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 180,857.82 $ 973,525.39 $ 1,813,354.12 282,279.43_ 245,765.20 28,338.19 12,448.78 Total Assets $ 463 137.25 $ 1,2so,on.ss $ 1813354.12 LIABILITIES AND FUND EQUITY ' LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Re~ainages Payable Capital Lease Agreements General Obligation Bonds Payable Long Tenn Debt Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Debt Service For Continuation or 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 For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity $ 3,545.12 $ 79,732.16 $ 30,000.00 257,938.42 16,695.31 228,212.54 180,986.13 $ 3545.12 $ 354,365.89 $ 439 198.67 $ 2,160.19 $ 376.58 28,338.19 12,448.78 $ 858,951.77 511,086.00 459 215.55 862 764.51 4117.68 $ 459,592.13 $ 905 711.67 $ 1 374 155.45 Total Liabilities and Fund Equity $ 463 137.25 $ The notes to the general purpose financial statements are an integral part of this statement. 112601077.56 $ -2- 118131354.12 EXHIBIT"A" DEBT SERVICE FUND FIDUCIARY FUND TYPES EXPENDABLE TRUST FUNDS ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS {Memorandum Onl~) JUNE 30 2000 JUNE 30 1999 $ 838,775.56 $ 3,806,512.89 $ 6,947,537.04 $ 543,562.33 543,562.33 513,225.22 331,448.42 859,493.05 1,316,551.92 3,330.00 $ 1,170,223.98 28,338.19 12,448.78 1,170,223.98 37,621.96 10,248.69 981,158.16 2,454,845.62 119,963.86 3 449 930.40 2,454,845.62 119,963.86 3 449 930.40 2,752,173.01 151,356.19 4,466,668.83 $ 1 170 223.98 $ 543 562.33 $ 7 194 963.86 $ 12 445 319.10 $ 17179 871.02 $ 113,277.28 $ 68,139.88 257,938.42 225,569.86 16,695.31 10,971.64 228,212.54 36,579.60 180,986.13 21,284.68 $ 119,963.86 119,963.86 151,356.19 2,830,000.00 2,830,000.00 3,060,000.00 4,245,000.00 4,245,000.00 5 140 000.00 $ 7194 963.86 $ 7,992,073.54 $ 8 713 901.85 $ 1,170,223.98 0.00 $ $ 1 170 223.98 $ 543 562.33 543 562.33 $ 1,170,223.98 $ 2,160.19 376.58 981,158.16 24,213.01 376.58 28,338.19 12,448.78 858,951.77 511,086.00 37,621.96 10,248.69 5,411,574.18 1,869,660.07 2,000,776.59 $ 4,453,245.56 $ 8 465 969.17 $ 1 170 223.98 $ 543 562.33 $ 7 194 963.86 $ 12 445 319.10 $ 17 179 871.02 3 - TATTNALL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 2000 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current ; r 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 Experiditures Excess of Revenues o~er (under) Expenditures 1.: ' 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) E?(penditures and Other Fin~~cing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND GOVERNMENTAL FUND SPECIAL CARITAL REVENUE PROJECTS FUND FUND >. $ 13,636,949.97 $ 183.76 2,711,283.72 128 219.65 $ 16 476 637.10 $ 807,489.69 2,692,002.75 336,223.38 $ ---'1"'86=15"'9"'.5"'-3 3,835,715.82 $ ___1~8"'6~1"'5'"9."'53"- $ 11,125,976.32 $ 1,043,535.49 407,018.76 ... 351,201.40 375,333.66 1,042,320.91 115,141.82 1,268, 136.57. 897,185.52 32,172.34 73,148.97 31,392.33 8,567.67 1,712,163.16 325,048.18 133,551.01 -100,774.21 1,278.89 12,237.42 16,893.09 23,196.85 2,089.69 1,376,062.76 22,086.00 $ 4,227,042.29 $ 16 771131.76 $ $ -294 494.66 $ 3,725,381.26 $ 110334.56 $ 4,227,042.29 -4 040 882.76 $ -294,494.66 $ 754,086.79 110,334.56 $ 802,460.79 -4,040,882.76 5,415,038.21 - -9,283.TT 2,200.09 FUND BALANCE JUNE 30 $ 459,592.13 $ 905 711.67. $ _..,.;1.,3~7;.4.,.1,:;55~.;;,45~ The notes to the general purpose financial statements are an integral part of this statement. -- 4 - EXHIBIT"B" TYPES DEBT SERVICE FUND TOTAL FIDUCIARY FUND TYPES . EXPENDABLE TRUST FUNDS TOTALS {Memorandum Onl~} YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 14,444,439.66 2,692,186.51 $ 1,609,235.80 4,320,519.52 58 477.28 709 079.84 $ $ 1 667 713.08 $ 22.166,225.53 $ $ 30 337.11 30 337.11 $ 14,444,439.66 $ 2,692,186.51 4,320,519.52 739 416.95 22,196,562.64 $ 14,155,985.06 2,872,202.96 3,984,256.43 998,080.95 22,010,525.40 $ 12,838,139.48 $ 1,368,583.67 540,569.77 351,201.40 476,107.87 1,043,599.80 115,141.82 1,280,373.99 914,078.61 55,369.19 2,089.69 1,376,062.76 4,322,277.26 $ 1,125,000.00 352,897.26 750.00 1,156,392.33 361,464.93 750.00 $ 1478647.26 $ 26,202,202.57 $ $ 189,065.82 $ -4 035 977.04 $ 0.00 $ 0.00 $ 30337.11 $ 12,838,139.48 $ 1,368,583.67 540,569.77 351,201.40 476,107.87 1,043,599.80 115,141.82 1,280,373.99 914,078.61 55,369.19 2,089.69 1,376,062.76 4,322,277.26 1,156,392.33 361,464.93 750.00 26,202,202.57 $ -4,005,639.93 $ 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 $ 12,389.44 -72,224.73 2,960,000.00 -16,325.15 -2,865,234.24 $ 18,605.32 $ 189,065.82 $ -4,035,977.04 $ 30,337.11 $ -4,005,639.93 $ -56,377.02 981,158.16 7,952,743.95 513,225.22 8,465,969.17 8,519,542.37 -9,283.77 2,200.09 -9,283.77 2 200.09 3,245.99 -442.17 $ 1.170,223.98 $ 3,909,683.23 $ 543,562.33 $ 4,453,245.56 $ 8,465,969.17 -5- r. r-'; ;. .. r ; ' TATTNALL 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 EXHIBIT"C" REVENUES GENERAL FUND ACTUAL BUDGET (BUDGET BASIS) State Funds Federal Funds Taxes Other Funds Total Revenues $ 13,369,222.00 $ 13,636,949.97 472,600.00 183.76 2,523,432.00 2,711,283.72 120 000.00 128,219.65 $ 16,485,254.00 $ 16 476 637.10 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 $ 11,075,050.00 $ 11,125,976.32 1,116,256.00 425,260.00 376,505.00 391,818.00 1,152,848.00 105,4TT.OO 1,309,342.00 892,486.00 40,647.00 1,043,535.49 407,018.76 351,201.40 375,333.66 1,042,320.91 115,141.82 1,268,136.57 897,185.52 32,172.34 166,376.00 73,148.97 39,960.00 T0tal Expenditures $ 17,052,065.00 $ 16,771,131.76 Excess of Revenues over (under) Expenditures $ -566,811.00 $ -294.494.66 FUND BALAN~E~ULY 1 199& 781,552.14 754,086.79 Food Inventory - Net Change in Period Donated commodities Purchased Food SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 856,449.00 $ 807.489.69 2,678,215.00 2,692,002.75 352,500.00 336,223.38 $ 3,887,164.00 $ 3,835,715.82 $ 1,819,332.00 $ 1,712,163.16 201,928.00 137,491.00 325,048.18 133,551.01 92,004.00 100,774.21 1,278.89 23,800.00 1,418,718.00 12,237.42 16,893.09 23,196.85 2,089.69 1,376,062.76 22,086.00 $ 3,693,273.00 $ 3,725,381.26 $ 193,891.00 $ 110,334.56 794,623.01 802,460.79 -9,283.TT 2,200.09 FUND BALANC!; JYNE 30 2QQQ $ 214 741.14 $ 4591592.13 $ 988 514.01 $ 905 711.67 The notes to the general purpose financial statements are an integral part of this statement. -7- TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .. REPORTING ENTITY The Tattnall 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 bon!ls. Its budgei:is not subject to approval by any other entity. Accordingiy, the Board is a primary government and consists of all the organizations that compose its legal entity. .. . . . . ' 01 FUND ACCOUNTING ' ' J ,: : -~., '~ : , The Board uses funds and an account group 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. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are .. . not-recorded resourc' es. in the funds because . ~ .. they ' do not. directly affect exp,endab_.le available ,financial . . ,. 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 conform to a generally accepted accounting principles, General Fixed Assets Account Group should be .maintained for reporting the cost of assets acquired by governmental fund types. ' Although "school activity accounts" are main!ained at the individual schools, neither the_ assets, liabilities atld'funcl equity, nor the revenues, expenaitures and changes in fund balancesof 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 state,meqts... 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 govemmental 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. . ' -8- . .,. : _, , - TATINALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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 of4-H property and used to provide for the assistance of Tattnall County children enrolled at the College of Agriculture of the University of Georgia. Deferred Compensation Plan - the fund used to account for financial resources to be used for the employees of the 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 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. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. -9- . ,TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIEs . Governmental and expendable trust funds are accounted for using the modified accruai basis of accounting 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 determined and "available" means collectible witliin the current period or soon enough thereafter to be used to pay liabilities of are the current period. Those revenues considered susceptible to accrual property taxes, local option sales taxes, intergovernmental grants and investment income. . . . ' ~ , : . 'jr ' Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final twci 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'Jime 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 of the twelve morithly 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, 2000. Also, the State's portion of the 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 acc'epted accounting principles require that revenues,.be recorded when available and measurable'and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET a The Tattnall County Board of Education's budget is 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 overexperiditure 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 . - 10 - TAlTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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 irisured 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 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. 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, (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. - 11 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TOTHE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ., RECEIVABLES 1 . V J: J, : - Receivables consist of grant reimbursements due on Federal, State orothergrants 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 of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 12, 1999 (levy date). Taxes were due on February 28, 2000. The lien date for property taxes was January I, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Tattnall County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. Tax millage .rates levied for the 1999 tax year (calendar yea.if for the Tattnall Couhty'Bciard of Education were as follows (a mill equals $1 per-thousand dollars of assessed value): '. School Operations . .School Bonds I,,,' 12.00 mills 1.72 mills I . ll.12 mills SALES TAXES ' . I 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 $1,206,124.61 and was recorded in the Debt Service Fund:. The State will terminate collection of this tax once an additional $4,878,586.67 has been collected or on March 3I, 2003, whichever occurs first. INVENTORIES .FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase, The inventories reported cin the balance sheet - 12 - TATfNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. 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 of the government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The Board has the following type 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. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum O~ly" 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. 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 of the 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 of operating funds placed in demand deposit checking accounts. - 13 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS AND INVESTMENTS . : , ' ,, Acceptable secuxjty for deposits consists of any one,ofor any combination of the following: i '., ; , ll' " (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 .L ,,_ States or of the State of Georgia, .. ,, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe,St!!te 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, r , ,~ I. :1 (6) Industrial revenue bonds and bonds of development authorities created by the laws of the . , State of Georgia, and . -' ' . ., ' ,. . , r. . (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage J, ,, , . r _ Ass_ociation, and the Federal National_MortgageAssociation,, , ,, , , -r- .... CATEGORIZATION OF DEPO~ITS At June 30, 2000, the bank balances were $5,207,146.14. 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 department or agent in the Board's name. , - ., C:ategory_ 3 0 Uncol)at1eralized 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 B_oard's name.) ' ' ., The B~ard's deposits are classified by risk category at June 30, 2000, as follows: ' 2, - 14- TATTNALL 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 $ 545,900.50 2 2,205,416.83 3 2,455,828.81 Total $5,207,146.14 CATEGORIZATION OF INVESTMENTS At June 30, 2000, the fair value of the Board's total investments was $509,558.35 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 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, assets, errors or omissions and job related illness or injuries to employees. 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. 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 of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: - 15 - , :TATTNALL COUNTY BOARD.OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAI.'.;PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 4: RISK MANAGEMENT Beginning of Year Liability Claims and Changes in Estimates Claims Paid End of Year Liability. 1999 $ 0.00 $ 3,372.00 $ 1 666.00 $ 1 706.00 2000 $ 1 706.00 $ 5 519.24 $ 4 024.24 $ 3 201.00 The Board has purchased surety bonds to provide additional i~surance coverage as follows: Position Covered ,t' . ) .. ' Amount Superiritendent All Employees 't - ,.) . $ 50,000.00 $ 150,000.00 Note 5: GENERAL LONG-TERM DEBT .. , ' (, ~ . '' , . I ., - CAPITAL LEASES The Tattnall County Board of Education has entered into various lease agreeinents 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. .' ,.:, 1, GENERAL OBLIGATION DEBT - PROMISSORY NOTES . , . As authorized in a county wide referendum held on November 4, 1997, the Board has entered into a lending agreement with a commercial lending institution. The debt l!JiOCiated with this agreement is as follows: . , -- _" ,. "l. I < I :. . . , . Pumose Interest Rate , Amount General Government 4.50% ' . GENERAL OBLIGATION DEBT - BONDS General Obligation Bonds currently outstmding are as follows: - $ 4.245.000,00 Pumose i . 'l r(. General Government - Refundin_g- Series 1999 Interest Rates 3.10% - 4.00% - .. Amount $ 2.830.000,00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: - 16 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LONG-TERM DEBT Balance July I, 1999 Deductions Debt Retired Balance June 30, 2000 Capital Leases Promissory Notes General Obligation Bonds Total $ 151,356.19 $ 5,140,000.00 $ 3,060,000.00 $ 8,351,356.19 31 392.33 895 000.00 230 000.00 1.156 392.33 $ 112 26386 $ 4 245 QQQ QQ $ 2 8:lQQQQQQ $ 7 124 26386 At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Ye:ar Ended June 30 2001 2002 2003 2004 2005 2006 -2010 Total Principal and Interest Deduct: Imputed Interest Net Present Value of Future. Minimum Lease Payments Capital Leases Promissory Notes General Obligation Bonds Total Debt $ 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 13,320.00 346,580.00 359,900.00 351,775.00 351,775.00 1740040.00 1 740 040.00 $ 133,200.00 $ 4 650 45Q 00 $ :l47Q 8I SQQ S 8 254 465 00 13236.14 $ 112 2638~ Note 6: ON-BEHALF PAYMENTS . The Board has recognized revenues and expenditures in the amount of $235,953.00 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 of Non-Certified Personnel In the amount of$192,103.00 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$43,850.00 - 17 - TATfNALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, to_gethej'with_funding available: Project ,OILW/00S-732-007 , Reidsville Middle School Renovations . . Glennville Middle Schoo' l Renovations Unearned Executed Contracts Funding Available From.State $ 866,748.95;: . $. 340,'159.00 208,233.91 436,694.68 .. , $ 1,511,677.54 $ 34Q,152.00 The amounts descnbed in this note are not reflected in the general purpose financial statements. Note 8:. CONTINGENT LIABILITIES , , Arriounts receivedor 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 0 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. j .: ' The Board is a defendant in various legal proceedings pertaining to 'matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the g~neral purpose financial statements. Note 9: RETIREMENT PLANS , .TEACHERS RETIREMENT SYSTEM OF _GEORGIA (TRS) r 4.-rr~ . ,! ,. ~ .~'-"l._; :''. TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical1personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS),JcVhich 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. . , , . ~ , , .. e. TRS CONTRIBUTIQNS I,IBQUIRED"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 employer contributions for the current fiscal year and the preceding two fiscal years are as follows: ; - 18 - TATINALL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FiNANCIAL STATEMENTS JUNE 30. 2000 Note 9: RETIREMENT PLANS Fiscal Year 2000 1999 1998 Percentage Contributed 100% 100% 100% Required Contribution $ 1,335,392.40 $1,343,128.38 $1,207,444.78 - 19 C . TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE30. 2000 ASSETS ,' l cash and.Cash Equivalents .J Ac.counts Recei_vable Inventories Food Donated Commodities Purchased Food Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable .Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Continuation of Lottery Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 20 - SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 951,901.42 $ 88,304.17 6,141.20 -, 28,338.19 12,448.78 $ 998,829.59 $ ====88:!'=304==.1=7 $ 28,151.51 $ 17,774.75 67,126.60 69,069.53 1 459.89 $ 95,278.11 $ 88 304.17 $ 28,338.19 12,448.78 862,764.51 $ $ 903,551.48 $ 0.00 0.00 $ 998,829.59 $ ====88:!'=30:;,;4~.1=7 EXHIBIT "E" FEDERAL PROGRAMS OTHER PROGRAM TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 1,040,205.59 $ 928,124.98 $ 239,624.00 245,765.20 582,147.82 28,338.19 12 448.78 37,621.96 10,248.69 $ 239,624.00 $====0,...0==0 $ 1,326,757.76 $ 1,558,143.45 $ 66,680.20 33,805.90 121,742.29 15,235.42 $ 237,463.81 $ 66,680.20 $ 453,485.05 79,732.16 65,656.11 257,938.42 225,569.86 16,695.31 10 971.64 $ 421,046.09 $ 755,682.66 $ 2,160.19 0.00 $ $ 2,160.19 $ $ 2,160.19 $ 24,213.01 0.00 0.00 $ 28,338.19 12,448.78 862,764.51 905 711.67 $ 37,621.96 10,248.69 730,377.13 802,460.79 $ 239,624.oo $ ======o=.o=o $ 1,326,757.76 $ 1,558,143.45 - 21 - TATTNALL 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 " 1., . Total Revenues. EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Studen_t 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 FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES FUND . .LOTTERY PROGRAMS $ 104,930.00 $ 1,064,756.71 336,223.38 $ 1,50~:910.09 $ 681,589.69 681,589.69 $ 587,522.59 87,291.36 13,606.72 7,582.03 8,000.00 $ 1,373,522;71 $ 1,373,522.71 $ $ 132,387.38 $ 778,247.78 1,800.00 705,802.70 -24,213.01 24,213.01 -9,283.77 2,200.09 $ 903,551.48 $ ====0==00;,, See notes to the general purpose financial statements. , . - 22 - EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAM TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ $ 1,627,246.04 20,970.00 $ $ 1.627.246.04 $ --="20-.'9-70".0=0 $ 807,489.69 $ 2,692,002.75 336,223.38 3.835,715.82 $ 815,926.31 2,866,558.10 334,102.67 4.016.587.08 $ 1,107,457.88 $ 237,756.82 129,763.70 87,167.49 1,278.89 4,655.39 8,893.09 23,196.85 2,089.69 2,540.05 20,286.00 $ 1,625,085.85 $ $ 2,160.19 $ 0.00 17,182.69 $ 3,787.31 20,970.00 $ 0.00 $ 0.00 1,712,163.16 $ 325,048.18 133,551.01 100,774.21 1,278.89 12,237.42 16,893.09 23,196.85 2,089.69 1,376,062.76 22,086.00 3,725,381.26 $ 110,334.56 $ 802,460.79 1,683,338.73 307,927.32 305,746.53 80,788.54 824.20 847.91 77,776.08 16,212.12 2,735.06 1,442,821.24 92,538.61 4,011,556.34 5,030.74 794,626.23 -9,283.77 2,200.09 3,245.99 -442.17 $ 2 160.19 $ 0.00 $ 905 711.67 $ ====8=0=2,~46=0;,;,.7;..,9 - 23 - :. TATTNALL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000 ASSETS Cash and Cash Equivalents r LIABILITIES'AND FUND EQUITY LIABILITIES Accounts Payable Contracts Payable Retainages Payable , I, L .. Total Liabilities ' FUND EQUITY Fund Balances - Reserved I For Purposes of SPLOST Projects For State Capital OuUay Projects Unreserved Undesignated ' . ' Total Fund Equity I Total Liabilities and Fund Equity REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 4117.68$ 511,086.00 ? ' ., : ,. ').--~- $ 511,086.00 $ 4117.68 0.00 --- $ 4117.68 $ 511,086.00 r .', "'; p;, $ 4117.68 $ 511,086.00 See notes to the general purpose financial statements. . -24- EXHIBIT"G" LOAN PROCEEDS FUND TOTALS JUNE30, 2000 JUNE 30, 1999 $ 1,298,150.44 $ 1,813,354.12 $ 5,472,902.49 $ 30,000.00 $ 30,000.00 228,212.54 228,212.54 $ 180 986.13 180,986.13 36,579.60 21,284.68 $ 439 198.67 $ 439 198.67 $ _ _ _5~7~,8~64~.2-'-8 $ 858,951.77 $ 858,951.77 $ 5,411,574.18 511,086.00 0.00 4 117.68 3 464.03 $ 858 951.77 $ 1 374 155.45 $ _---"'5'-'-4-"15'-",0c-=3cc8=.2-'-1 $ 1,298,150.44 $ 1,813,354.12 $ 5,472,902.49 - 25 - TATTNALL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 REVENUES Other Funds EXPENDITURES Capital Outlay Building and Building Improvements 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 -. FUND BALANCE JUNE 30 REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 653.65 $ --'-------"0-"'.0"'-0 $ o.oo $ _ ____;3,,,5"',9""8'-"o-"'.o"'-o $ 653.65. $ - - - =-=35=,98=0.0-0 $ 547,066.00 $ (, $ 653.65 $ __ 3.464.03 . , - . - $ 4 117.68 $ 547,066.00 511,086.00 0.00 511,086.00 See notes to the general purpose financial statements. . .. - 26 - EXHIBIT"H" LOAN PROCEEDS FUND TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 185,505.88 $ 186,159.53 $ _ _--=3=99~,5~1~4~.0=2 $ 4 191,062.29 $ 4,227,042.29 $ _ ___:6"'89~,4-'-4'-=8-'=.3~2 $ -4,005,556.41 $ -4,040,882.76 $ _~--=2=89~,9=3~4~.3~0 $ 547,066.00 $ -547,066.00 -547,066.00 $ -547,066.00 $ 0.00 $ -4,552,622.41 $ -4,040,882.76 $ 5411,574.18 5,415,038.21 -289,934.30 5,704,972.51 $ 858,951.77 $ 1,374 155.45 $ ==5=,4=1=5,=0=38=.2=1= 27 TATTNALL COUNlY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2000 EXHIBIT "I" ASSETS Cash and Cash Equivalents Accounts Receivable PROPERTY TAXES .l:OR --- BOND DEBT J ' SPECIAL PURPOSE LOCAL OPTION - -- - - TOTALS SALES TAX JUNE 30, 2000 JUNE 30, 1999 $ 345,900.50 $ 492,875.06 $ 838,775.56 $ 671,645.98 29 253.88 . ' ,:. . 302 194.54 331 448.42 309 512.18 Total Assets $ \ FUND EQUITY Fund Balances Reserved For Debt Service $ Unreserved Undesignated Total Fund Equity $ 375 154.38 $ 795,069.60 $ 1.170,223.98 $ ,.,- ~ - '1.:' . . -- 981 158.16 375,154.38 $ 0.00 375 154.38 $ ~-. u... , t ' 795,069.60 $ 0.00, 1,170,223.98 $ o:oo. 981,158.16 0.00 . - -.. - 795,069.60 $ ' ' 0 1,170,223.98 $ ' .~.: (' ' '- 981,158.16 ' . I See notes to the general purpose financial statements. - '.-28- TATTNALL COUNTY BOARD OF EDUCATION. CQMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30 2000 EXHIBIT" J" .PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30 1999 REVENUES Taxes Other Funds $ 403,111.19 $ 1,206,124.61 $ 1,609,235.60 $ 1,551,355.09 15 871.20 42 606.06 56 477.26 53 210.36 Total Revenues $ 418 982.39 $ 1 246 730.69 $ 1 667 713.08 $ 1 604 565.47 EXPENDITURES Debt Service Principal Interest Paying Agent Fees $ 230,000.00 $ 695,000.00 $ 1,125,000.00 $ 720,000.00 120,905.00 231,992.26 352,897.26 404,138.56 750.00 750.00 1 586.00 Total Expenditures Excess of Revenues over (under) Expenditures $ 351 655.00 $ 1.126,992.26 $ 1 478 647.26 $ 1 125 724.56 $ 67 327.39 $ 121 738.43 $ 169 065.62 $ 478 840.91 OTfj!;R FINANCING ~Q!.!BCES (b!S~S) Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds Par Value Discount on Bonds Sold Payments to Bond Escrow Agent $ 12,389.44 -72,224.73 2,960,000.00 -16,325.15 -2 865 234.24 Total Other Financing Sources (Uses) $ 18 605.32 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 67,327.39 $ 121,738.43 $ 189,065.82 $ 497,446.23 FUND BALANCE JULY 1 307,626.99 673 331.17 981158.16 483 711.93 FUND BALANCE JUNE 30 $ 375 154.36 $ 795 069.60 $ 111701223.98 $ 981158.16 See notes to the general purpose financial statements. -29- , TATTNALL COUNTY BOARD OF EDUCATION_ COMBINING BALANCE SHEET . ' FIDUCIARY FUND TYPES JUNE 30. 2000 EXHIBIT"K" ASSETS Investments 4-H CLUB TRUST FUND DEFERRED COMPENSATION PLAN TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 34 003,98 $,, 509,558.35 $ 543,562.33 $ ===s.1..3.,2=2=s=.2=2 FUND EQUITY Fund Balances Unreserved Undesignated $ 34,003.98 $ 509,558.35 $ 543,562.33 s ===5=1=3~.2=2=5=.2=2 t .l ; ...,1 See notes to the general purpose financial statements. - 30 - TATTNALL COUNTY BOARD OF EDUCATION EXHIBIT "L" COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2000 4-H CLUB TRUST FUND DEFERRED COMPENSATION PLAN TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 REVENUES Other Funds $ 1 500.18 $ 28 836.93 $ 30337.11 $ 36450.17 EXPENDITURES None Noted $ 0.00 $ 0.00 S 0.00 $ 0.00 Excess of Revenues over (under) Expenditures $ 1,500.18 $ 28,836.93 $ 30.337.11 $ 36,450.17 FUND BALANQE JULY 1 32 503.80 480 721.42 513 225.22 476775.05 FUND BALANCE JUNE 30 $ 34 003.98 $ 509,558.35 $ 543,562.33 $ =='5"'1=3"',2"'25...2..2.. See notes to the general purpose financial statements. - 31 n TATTNALL COUNTY BOARD OF EDUCATION SCHEDULE "1" SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2000 . FUNDING AGENCY PROGRAM/GRANT Agriculture. U. S. Department of Child Nutrition Cluster Pass-Through From_ Georgia Department of Education r . Food and Nutrition"Progl'am Food Services School Breakfast Program National School Lunch Program Pass-ThrouQh From Office of School.Readiness Food and Nutrition, Program .. Food Services . Summer Food Service Program for Children ~ ' Total Child Nutrition Cluster Other Programs Pass-Through From Georgia Department of E~~cation 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 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 Preschool Special Education Capacity Building Improvement Grant CFDA NUMBER 10.553 10.555 10.559 10.550 10.558 84.027 84.173 84.173 PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD NIA $ 296,543.69 (2) NIA 658,484.82 $ 1,301,877.08 (3) , \ .b ,;. NIA 19,204.32 (2) $ 974,232.83 $ 1,301,877.08 NIA 71,645.63 71,645.63 NIA 18,878.25 2 $ 1,064 756.71 $ 1,373,522.71 NIA $ 183,420.14 $ NIA 21,239.14 NIA 7,751.59 183,420.14 21,239.14 7 751.59 Total Special Education Cluster $ 212,410.87 $ 212,410.87 Other Programs Direct Impact Aid Pass-Through From First District Regional Educatiol'."al Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Tille I Migrant Education Pass-Through From Georgia pepartment of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Tille Ill Technology Literacy Challenge Fund Grant Title VI Innovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States High ~chool Program Basic Grant 84.041 183.76 (4) 84.011 NIA 171,777.82 171,777.82 84.010 NIA' 675,640.06 675,640.06 84.281 NIA 19,075.00 16,914.81 84.318 NIA 125,000.00 125,000.00 84.298 NIA 84.340 NIA 24,718.00 98,509.94 24,718.00 98,509.94 84.048 NIA 45,298.00 45 298.00 Total U. S. Department of Education ., $ 1,372,613.45 $ 1,370,269.50 - 32 - TATTNALL COUNTY.BOARD OF EDUCATION SCHEDULE QF EXPENDITURES OF FEDE-RAL AWARDS YEAR ENDED JUNE 3Q 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT labor, U. S. Department of Direct School-to-Work Opportunities Act of 1994 Urban/Rural. Opportunities Grant CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.278A $ 254,816.35 $ --~25,._4o,,8,._1~6~.3~5 Total Federal Financial Assistance $ 2,692,186.51 $ NIA= Not Available ot Notes to the Schedule of Expenditures Federal Awards 2,998,608.56 (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, Summer Food Service Program for Children and the School Breakfast Program were not maintained separately and are included in the 2000 National School lunch Program. (3) Expenditures for this program include State. and/or Other Funds. Expenditures are not iTiaintained 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 Subrecipienl. The accompanying Schedule of expenditures of Federal a.wards includes the Federal grant activity of the Tattnall County Board of Education and is presented on the modified accrual basis of accounting ~ich is the same basis of accounting used in the presentation of the general purpose financial statements. See notes to the general purpose financial statements. 33- TATTNALL"cOUNTYilOARD OF EDUCATION .. SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2000 SCHEDULE ""2" 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 , ri' .Regular Bus Replacement Limited English-Speaking Students Program Middle School Incentive Program Special Instructional Assistance In-School Suspension Migrant Education Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization FOrmula- ' Food Services - Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School 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 CONTRACT Education, Georgia Department of Reading First Program GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL 26.250.00 $ - ' 26.250.00 7.666,632.00 1,389,826.00 184,535.00 - 321.386.00 86.586.00 2,023.743.00 480,588.00 - 129,470.00 48.819.00 "27.599.00 .. , 354.603.00 69.420.00 23.080.00 34.028.00 28,842.00 -1,024.199.oo 1,233,391.00. $ 51,895.00 108.932.00 55.000.00 14.005.04 192.103.00 2.754.00 55.414.00 4.560.93 3.837.00 43.850.00 104,930.00 . 13,904.37 74,474.00 7,666,632.00 .1,389.826.00 184.535.00 321.386.00 86.586.00 2.023,743.00 480,588.00 . 129,470.00 48.819.00 27.599.00 354,603.00 69,420.00 23,080.00 34,028.00 28.842.00 '.1.024.199.00 1,233.391.00 104.930.00 51.895.00 108.932.00 55.000.00 14.005.04 192,103.00 2,754.00 55.414.00 4,560.93 3,837.00 13.904.37 74.474.00 593,211.32 593.211.32 43.850.00 20.970.00 20.970.00 $ 13,636,949.97 $ See notes to the general purpose financial statements. . - 34 - 807,489.69 $ 14.444.439.66 . ' TATTNALL 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 COST (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS i) To renovate the former Glennville High School for use as a middle grades 6 - 8 school; (ii) to renovate the former Reidsville High School for use as a middle grades 6 - 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 $ 6. 127,849.85 $ 4,459,034.55 $ 881,779.55 (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 cun:-ent estimate of total cost for the project. Includes all costs from project inception to completion. (3) The voters of TattnaU 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. - 35 - TATTNALL 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 100% TEST FOR OPERATIONS . PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 9,562,379.00 $ 296,490.00 $ 9,828,805.89 466,782.86 $ $ 10,295.588.75 " -18,316.79 $ 10,277,271.96 393,425.84 $ o.oo $ =======o=.o=o See notes to the general purpose financial statements. - 37 - TATTNALL COUNTY BOARD QF EDUCATION . ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS ' YEAR ENDED JUNE 30 2000 . l ~' GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (") .- .:. ,., .~rad~s 1 - 3 (') . , ' ) ," I _Sub-Total - K-3'. Grades 4 - 5 (") Grades 6 - 8 c) Grades 9 - 12 (") L - , High School Laborato~,es {") ,, Vocational Education Laboratories c> Total General and Career Education Programs SPECIAL EDUCAJ]ON PROGRAMS Regular Programs Category II r) Category Ill(') C Category IV {") - ,r "". ; Sub-Total - Regular Category VI (Gifted),(') Total Special Education Programs REMEDIAL EDUCATION PROGRAM t) Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL __.!!._ ORIGINAL MID-TERM $ 843,875.00 $ 759,487.50 $ 0.00 2,128,281.00 1,915,452.90 $ 2,972, 156.00 90 $ 2,674,940.40 $ 0.00 1,014,9~6.00 90 913,487.40 1,649,749.00 90 755,550.00 - 9'0 1,484,774.10 679,995.00 626,329.00 90 563,696.10 647,862.00 90 583,075.80 $ 7,666,632.00 s 6,899,968.80 $ 0.00 " s 1,211,482.00 s s 1,144,333.80 0.00 ' s $ 1,271,482.00 90 1,144,333.80 $ 0.00 118,344.00 90 106,509.60 s 1,389,826.00 s s 1,250,843.40 0.00 s 184,535.00 90 $ 166,081.50 s 0.00 s 9,240,993.00 $ 8,316,893.70 $ 0.00 s s 258,389.00 90 232,550.10 $ 0.00 62,997.00 100 62,997.00 s 321,386.00 s s 295,647.10 0.00 Total Fourteen Weighted and Media Center Programs $ 9,562,379.00 s 8,612,440.80 $ 0.00 STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff D~velopment Programs {") Identifies Fourteen Weighted Programs. s 28,110.00 s s 28,110.00 0.00 58,476.00 58,476.00 0.00 s 86,586.00 100 $ 86,586.00 $ 0.00 See notes to the general purpose financial statements. - 38 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 759.487.50 $ 763.781.50 $ 10,039.99 $ 773,821.49 1,915,452.90 2,261,340.80 47,777.63 2,309,118.43 $ 2,674,940.40 $ 3,025,122.30 $ s 57,817.62 $ 3,082,939.92 0.00 913,487.40 1,117,760.02 40,360.97 1,158,120.99 0.00 1,484,774.10 1,868,256.77 54,506.64 1,922,763.41 0.00 679,995.00 782,221.44 93,444.92 875,666.36 0.00 563,696.10 678,083.35 13,921.49 692,004.64 0.00 563,075.60 466,663.15 96,641.15 563,304.30 0.00 $ 6,699.966.60 $ 7.956, 107.03 $ 356.692.79 $ 6,314,799.62 $ 1,144,333.60 s 62,665.66 1,066,947.76 s 118,420.61 $ 23,666.16 62,665.66 1,112,613.94 116.420.61 s s $ 1,144,333.60 1,270,034.03 s 23,666.16 1,293,900.21 0.00 106,509.60 166,653.67 2,611.55 169,265.42 0.00 $ 1,250,643.40 $ 1 436,667.90 s s 26,477.73 1,463, 165.63 $ 166,061.50 $ 167,665.19 s 10,255.32 $ 177 920.51 0.00 $ 6,316,693.70 $ 9,562,460.12 $ s 393,425.64 9,955,665.96 $ 232,550.10 $ 62,997.00 266,345.77 s $ 73,357.02 266,345.77 73,357.02 0.00 0.00 s 295,547.1C s 266,345.77 s 73,357.02 $ 339,702.79 s s $ 6,612,440.60 9,628,805.69 s s 466,782.86 10,295,566.75 0.00 s 28,110.00 58,476.00 s ===6=6"',5=6=6=.o=o s 26,506.96 S 26,506.96 60,617.63 60,617.63 $ 89,124.81 $ 69,124.61 s==-==-==o=.o=o 39 .c :; ,. SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS w.. RUSSELL HINTON STATE AUDITOR (404)656-2174 ... '"> (!j, :,.;tr 2:,,.!' DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Strccl. S.W.. Suilc 214 Atlania, Georgia 30334-8400 March 21, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation and Superintendent and Members of the Tattnall 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 of Tattnall County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 21, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance As part of obtaining reasonable assurance about whether Tattnall County Board of Education's financial statements are free of material misstatement, we performed te_sts of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 2000YB-40 . _,..-. . . I! . ..: .;, I '/t, ' . ) :,..- ' " i . ' . T Internal Control Over Financial Reporting In planning and performing our audit, we considered Tattnall County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted 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 our judgment, 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-7321-00-01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal controi 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 of management, members of the Tattnall County Board of Education, 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-40 .1 L 'r' . ' .'.!. I. 'I . . , J ,. r I. 1, RussELI. W. HtNTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 \Vashington Stn.::ct. S. W.. Suite 214 Atbnta. Georgia 30334-8400 March 21, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Tattnall 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 ofTattnall County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. 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 ofTattnall County Board ofEducation's management. Our responsibility is to express an opinion on Tattnall 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 perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance 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 ofEducation'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 of Education's compliance with those requirements. 2000SA-I0 ) ( ., '' \ ,_, I ., .,i I. " , . In our opinion, the Tattnail County Board of Education complied, in all material respects, with the requirements referred to above that are applicable fo each of its major Federal programs for the year ended June 30, 2000. 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 and 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 ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements oflaws, 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. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use 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, RWH:jb 2000SA-10 State Auditor r. '' ! 1,;. 1: - ' SECTION ill 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, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-7321-98-01 FS-7321-98-02 FS-7321-98-03 FS-7321-99-01 Unresolved - See Corrective Action/Responses Partially Resolved - See Corrective Action/Responses Further Action Not Warranted 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 five mill 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 prior to the end of fiscal year 98, which was before the overpayments were discovered. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7321-99-0 I Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. ,,: , 7 .. J.. - --- r:,;_\(,,. ;/ '', '.) ' .,... " /: ., \' f. '