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AUDIT REPORT THOMAS COUNTY BOARD OF EDUCATION 
THOMASVILLE, GEORGIA YEAR ENDED JUNE 30, 1998 
l 
'-~----------------- 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET 
ATLANTA, GEORGIA 30334-8400 
 
 THOMAS 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 
 
EXlllBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
2 
 
B 
 
. COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
4 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D 
 
STATEMENT OF REVENUES, EXPENSES AND 
 
CHANGES IN FUND BALANCES 
 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 
 
6 
 
E 
 
STATEMENT OF CASH FLOWS 
 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 
 
7 
 
F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
8 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
20 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
22 
 
CAPITAL PROJECTS FUND 
 
I 
 
COMBINING BALANCE SHEET 
 
24 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
25 
 
SCHEDULES 
 
1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
26 
 
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
27 
 
3 SCHEDULE OF STATE REVENUE 
 
29 
 
 THOMAS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
4 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
30 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
5 
 
OVERALL 
 
31 
 
6 
 
BY PROGRAM 
 
32 
 
SECTION II 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMEI? IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 
 
.SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400 
April 1, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe Thomas 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 Thomas County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Thomas County Board ofEducation'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 ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also ~cludes 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. 
 
98ARL-13B 
 
 * 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, 1998, a portion of salaries 
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, 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, 1997, were improperly recorded in the year ended June 30, 1998. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements ofthese variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects on the general purpose fmancial 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 ofthe Thomas County Board of Education as ofJune 30, 1998, and the results of its operations and the cash flows of its nonexpendable trust fund 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 April 1, 1999, on our consideration ofthe Thomas County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. 
The year 2000 supplementary information on' Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of jnquiries of management regarding the methods of measurement and presentation ofthe supplementary information. However we did not audit the,information and do not express an opinion on it. In addition, we do not provide assurance that Thomas County Board ofEducation is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Thomas County Board of Education does business are or will become year 2000 compliant. 
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Thomas County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through J) and the financial schedules (Schedules 2 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 presen~ed 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 farrly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
98ARL-13B 
 
 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 ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
RWH:gp 98ARL-13B 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
 THOMAS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1998 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Consumable Supplies Food Donated Commodities Purchased Food 
Amount to be Provided in Future Years For Payment of Compensated Absences 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
$ 2,566,304,22 $ 
 
691,028.78 $ 
 
508,218,62 
 
627,854,54 
 
10,998,84 
 
439,515,39 
 
1,024,282.12 
 
86,995,09 
 
51,843.46 67,964.94 
 
Total Assets 
 
$ 3,720,669.24 $ 1,835,119,30 $ 
 
51.9.,2.1.,;,;7..,46;;" 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Compensated Absences 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Continuation of Federal Programs For Endowment Corpus For Inventories Consumable Supplies Food Donated Commodities Purchased Food For State Capital Outlay Projeds Unreserved Designated for Self-Insurance Undesignated 
Total Fund EqUity 
 
$ 1,129,481.03 $ 
 
233,164.57 484,864.27 
3,032.24 $ 
 
$ 1,129,481.03 $ 721,061.08 $ 
 
16,545.60 1,875.16 
1:.::8:,,;;.4:::2.=.0.~76:::... 
 
$ 
 
86,995.09 
 
$ 
 
51,843,46 
 
67,964.94 
 
$. 
 
404,392.30 2,099,800.82 
 
994,249.82 
 
$ 2,591,188.21 $ 1,114,058.22 $ 
 
14,972.35 
485,824.35 500,796.70 
 
Total Liabilities and Fund Equity 
 
$ 3,720,669.24 $ 1,835,119.30 $ 
 
The notes to the general purpose financial statements are an integral part of this statement. -2- 
 
519,217.46 
 
 EXHIBIT "A" 
 
FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND 
 
ACCOUNt GROUP GENERAL 
LONGTERM DEBT 
 
TOTALS (Memorandum Only) JUNE 30, 1998 JUNE 30, 1997 
 
$ 
 
0.09 
 
$ 3,765,551.71 $ 4,898,708.89 
 
50,029.00 
 
688,882.38 
 
604,484.72 
 
1,463,797.51 
 
922,978.95 
 
86,995.09 
51,843.46 67,964.94 
 
93,357.67 
52,524.04 45,990.42 
 
$ 
 
177,157.77 
 
177,157.77 
 
162.033.57 
 
$ 
 
._50::o,,0;0;20;;9..0._.9 $ 
 
177,157.77 $ 613021192.86 $ 6,780,078.26 
 
$ 1,362,645.60 $ 1,202,748.66 
 
484,864.27 
 
453,644.87 
 
3,032.24 
 
24,645.31 
 
16,545.60 
 
79,662.39 
 
1,875.16 
 
37,019.69 
 
$ 
 
177,157.77 
 
177,157.77 
 
162,033.57 
 
$ 
 
177,157.77 $ 2,046,120.64 $ 1,959,754.49 
 
$ 
 
50,000.00 
 
29.09 
 
$ 
 
50,029.09 
 
$ 
 
15,364.44 
 
$ 
 
50,000.00 
 
37,500.00 
 
86,995.09 
 
93,357.67 
 
51,843.46 67,964.94 14,972.35 
 
52,524.04 45,990.42 52,875.81 
 
404,392.30 3,579,904.08 
 
400,990.17 4,121,721.22 
 
$ 4,256,072.22 $ 4,820,323.77 
 
$ 
 
50,029.09 $ 
 
177,157.77 $ 6,302,192.86 $ 6,780,078.26 
 
3 
 
 THOMAS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 1998 
 
EXHIBIT"B" 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
CAPITAL PROJECTS 
FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30,1998 JUNE 30,1997 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
 
$ 19,610,895,41 $ 3,236,136.03 $ 
 
2,910,885.76 
 
3,381,404,49 
 
479,975.84 
 
531,134,96 
 
178,183,10 $ 687,43 
 
23,025,214.54 $ 2,910,885,76 3,381,404.49 1,011,798,23 
 
21,737,053,43 2,844,082.84 3,587,278.17 954,518,86 
 
$ 23,472,275,74 $ 6,678,156,75 $ 178,870.53 $ 30,329,303.02 $ 29,122,933.30 
 
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 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
 
$ 15,800,491.41 $ 3,396,696.35 
 
$ 19,197,187.76 $ 17,483,152,12 
 
1,286,703,17 513,379,04 462,784.20 310,872,29 
1,424,493,68 209,536,90 
2,071,460.82 1,394,205.71 
2n,828.23 14,362.48 
 
644,767,34 299,936.52 
203,897.03 174,785.49 
106,888.21 7,212.17 
54,722;95 1,851,n1.49 
93.940.78 $ 304,514.44 
 
1,931,470,51 813,315,56 462,784.20 514,769.32 
1,599,279,17 209,536,90 
2,178,349,03 1,401,417.88 
2n,828.23 69,085.4;3 
1,851,n1.49 398,455.22 
 
1,645,519.63 926,419.37 424,042.21 724,970.40 
1,456,311.62 187,285.69 
1,804,255.76 1,302,655.16 
178,688,32 50,716.76 
1,819,806.59 400,782.51 
 
$ 23,766,117.93 $ 6,834,618,33 $ 304,?14,44 $ 30,905,250,70 $ 28,404,606,14 
 
$ -293,842,19 $ -156,461,58 $ -125,643.91 $ -575,947.68 $ 718,327.16 
 
Operating Transfers In Operating Transfers Out 
 
$ 132,580.29 $ -132,580.29 
 
$ 132,580.29 $ 350,6n.52 
 
-132,580.29 
 
-350,6n.52 
 
Total Other Financing Sources (Uses) 
 
$ -132,580.29 $ 132,580,29 
 
$ 
 
0,00 $ 
 
0,00 
 
.Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses .$ -426,422,48 $ -23,881.29 $ -125,643.91 $ 
 
-575,947.68 $ 
 
718,327.16 
 
FUND BALANCE JULY 1 
 
3,017,610.69 1,137,939.51 626,440,61 
 
4,7.81,990.81 
 
4,063,663.65 
 
FUND BALANCE JUNE 30 
 
$ 2,591,188.21 $ 1,114,058,22 $ 500,796.70 $ 4,206,043.13 $ 4,781,990.81 
 
The notes to the general purpose financial statements are an integral part of this statement. -4- 
 
 THOMAS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - lNON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1998 
 
EXHIBIT"C" 
 
The notes to the general purpose financial statements are an integral part of this statement. -5- 
 
 THOMAS COUNTY BOARD OF EDUCATION : STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 1998 
 
EXHIBIT "0" 
 
OPERATING REVENUES Donations 
OPERATING EXPENSES Current Support Services General Administration Operating Income 
NONOPERATING REVENUES Interest Earned Net Income 
FUND BALANCE JULY 1 Initial Contribution by Benefactor 
 
ENDOWMENT FUND BOBBY 
SINGLETARY FAMILY 
SCHOLARSHIP FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED JUNE 30, 1998 JUNE 30, 1997 
 
$ 
 
12,500,00 $ 
 
12,500,00 $ 
 
0,00 
 
$ 
 
1,000,00 $ 
 
1,000,00 $ 
 
0,00 
 
$ 
 
11,500,00 $ 
 
11,500.00 $ 
 
0.00 
 
196,13 
 
196,13 
 
832,96 
 
$ 
 
11,696.13 $ 
 
11,696.13 $ 
 
832,96 
 
38,332.96 
 
38,332.96 
 
0.00 
 
37,500.00 
 
FUND BALANCE JUNE 30 
 
$ 
 
50,029,09 $ 
 
50,029.09 $ ====38=,3=3=2=.9=6 
 
The notes to the general purpose financial statements are an integral part of this statement. -6- 
 
 THOMAS COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 
YEAR ENDED JUNE 30, 1998 
 
EXHIBIT"E" 
 
Cash Flows from Operating Activities: Cash Paid for Scholarships Donation Received 
Net Cash Provided (Used) by Operating . Activities 
Cash Flows from Noncapital Financing Activities: Initial Contribution by Benefactor 
Cash Flows from Investing Activities: Interest Received on Investments Purchase of Investments 
Net Cash Provided (Used) by Investment Activities 
Net Increase (Decrease) in Cash 
Cash and Cash Equivalents - July 1 
Cash and Cash Equivalents - June 30 
 
ENDOWMENT FUND BOBBY 
SINGLETARY FAMILY 
SCHOLARSHIP FUND 
 
TOTALS (Memorandum Only) 
YEAR ENDED 
JUNE 3D, 1998 JUNE 30, 1997 
 
$ 
 
-1,000.00 $ 
 
-1,000.00 
 
12,500.00 
 
12,500.00 $ 
 
---"-O.;.;;;,O~O 
 
$ 
 
11,500.00 $ 
 
11,500.00 $ 
 
. .;;,:0.:.:.00;:;,. 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
37,500.00 
 
$ 
 
196,13 $ 
 
196.13 $ 
 
-50,029.00 
 
-50,029.00 
 
832.96 
 
$ 
 
-49,832.87 $ 
 
-49,832.87 $ 
 
832.96 
 
$ 
 
-38,332.87 $ 
 
-38,332.87 $ 
 
38,332.96 
 
38.332,96 
 
38,332.96 
 
0.00 
 
$ 
 
0.09 $ 
 
0.09 $ ==3...8...,.3.=3=2.=96= 
 
The notes to the general purpose financial statements are an integral part of this statement. -7- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Thomas 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 of purchase. 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 ofthese 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 usedto 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. 
-8- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
: NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT 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. 
 
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes: 
 
NONEXPENDABLE TRUST FUND Bobby Singletary Family Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to defray college educational expenses. 
 
ACCOUNT GROUP 
 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for material accrued compensated absences. 
 
BASIS OF ACCOUNTING 
 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., 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. 
 
. 
 
. 
 
All nonexpendable trust funds are accounted for on a flow ofeconomic resources measurement focus. With 
 
this measurement focus, all assets and liabilities associated with the operation of these funds are included on 
 
the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in 
 
net total assets. 
 
Governmental funds are accounted for using the modified accrual 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 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, intergovernmental grants and investment income. 
 
- 9- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXillBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
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 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998; 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, 1998, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. 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. 
 
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by 
 
nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and 
 
expenses are recorded at the time liabilities are incurred. 
 
. 
 
BUDGET 
 
The Thomas 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 ofthe 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 ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a fmal 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 de~rease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
- 10- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 3D. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial 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. 
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 ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(l) 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 ofthe United States government, 
(5) Prime banker's acceptances, 
. (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obligations of other political subdivisions of the State of Georgia.. 
RECEIVABLES 
Receivables consist of grant re~bursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when 
- 11 - 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose 
 
financial statements do not include any amoun~ which would necessitate the need for an allowance for 
 
uncollectible receivables. 
 
. 
 
. PROPERTY TAXES 
 
The Thomas County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on September 25, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Thomas County Tax Commissioner bills and collects the property taxes for the Board ofEducation, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. 
 
The tax millage rate levied for the 1997 tax year (calendar year) for the Thomas County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
.8....8Q mills 
 
INVENTORIES 
 
SUPPLIES INVENTORIES Inventories ofconsumable supplies are reported on the Combined Balance Sheet at average cost. The Board uses the consumption method to account for the inventories. The consumable supplies inventories are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. The inventories reported on the balance sheet are equally offset by a reservation of fund balance which indicates that they do not constitute "available spendable resources" even though they are a component of net current assets. 
 
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). The Board uses the consumption method to account for both inventories. Donated food commodities .are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the-inventory items are used. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
- 12- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXlllBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
COMPENSATED ABSENCES 
 
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion ofthis obligation as this amount is deemed immaterial to the general purpose financial statements. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following types of interfund transactions: 
 
Reimbursements ofexpenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/ expenses in the fund that is reimbursed. 
 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
 
MEMORANDUM ONLY - TOTAL COLUMNS 
 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that 
 
they are presented only to facilitate financial analysis. Data in these columns do not present financial position, 
 
results of operations or cash flows 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 ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe 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 of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating fwlds placed in demand deposit checking accounts. 
 
Acceptable security for deposits consists of anyone of or any combination of the following: 
 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within 
 
the State of Georgia, 
 
.' 
 
- 13- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXIllBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 . 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities ofthe State of Georgia, 
 
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and 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, 1998, the bank balances were $5,228,261.28. The amounts "of the total b8nk 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 narpe. 
 
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, 1998, as follows: 
 
Risk Category 
 
Bank Balance 
 
I 
 
$ 337,529.00 
 
2 
 
4,890,732.28 
 
3 
 
0.00 
 
Total 
 
$ 5.228.261.28 
 
- 14- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
CATEGORIZATION OF INVESTMENTS At June 30, 1998, the carrying value of the Board's total investments,was $638,853.38 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury'and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: 
 
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not regiStered with the SEC as an investment company. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are 'reported at cost which approximates fair value. The pool does not issue any legally binding ~antees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds ofthe State of Georgia's General Fund. 
 
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury 
 
obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its 
 
agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average 
 
maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. 
 
The weighted average maturity for Georgia Fund 1 on June 30, 1998 was 29 days. The average investment 
 
duration for Fund 6 on June 30, 1998 was .96 years. 
 
' 
 
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 NQte 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. 
 
- 15 - 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 4: RISK MANAGEMENT 
 
The Board has obtained commercial insurance for risk of loss associated with torts, 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 ofthe past three years. 
 
The Board participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994 to develop and administer a plan to reduce risk ofloss on account ofproperty damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. 
 
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. A premium is charged when 
 
needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total 
 
payroll in order to cover estimated claims budgeted by management based on known claims and prior 
 
experience. The Board accounts for claims 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: 
 
Beginning ofYear Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End ofYear Liability 
 
1997 1998 I 
 
$ 
 
0.00 $ 
 
5,112.00 $ 
 
0.00 $ 
 
5,112.00 
 
$ 
 
5,112.00 $ 
 
0.00 $ 
 
5,112:00 $ 
 
0.00 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent . All Other Employees (per Loss) 
 
$ 100,000.00 $ 10,000.00 
 
Note 5: GENERAL LONG-TERM DEBT 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows: 
 
- 16- 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Compensated Absences 
 
Balance July 1, 1997 
 
$ 162,033.57 
 
Additions 
 
15,124.20 
 
BalanceoJune 30, 1998 
 
$ 177.157.77 
 
Note 6: ON-BEHALF PAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of$482,217.91 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. 
 
Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel 
In the amount of $398,870.52 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost 
In the amount of $22,765.39 
 
Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost 
In the amount of $60,582.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
The following is an analysis of significant outstanding construction or renovation contracts- executed by the Board as of June 30, 1998, together with funding available: . 
 
Project 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
99G/98S-736-067 
 
$ 378.004.31 $ 288.868.00 
 
The amounts described in this note are not reflected in the general purpose financial statements. 
 
- 17 - 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
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: ACCUMULATED EMPLOYEES' LEAVE 
Twelve month employees earn ten days of vacation annually, provided they have been employed at least nine months of the previous fiscal year, with a maximum accumulation of thirty days. Upon retirement or termination of employment, employees have the option of early release or payment for accumulated vacation time at their current rate of pay. See Note 1- Compensated Absences 
Note 10: 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 
a stand alone financial audit report and copy can be obtained from the Georgia Department of Audits and 
Accounts. 
IRS 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 Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
- 18 - 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES to THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 10: RETIREMENT PLANS 
Fiscal Year 
1998 1997 1996 
 
Percentage Contributed 
100% 100% 100% 
 
Required Contribution 
$ 1,984,140.15 $ 1,853,202.61 $ 1,732,341.03 
 
- 19- 
 
 THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1998 
 
ASSETS 
Cash and Cash Equivalents 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 1,070,138,10 $ 
 
25,641,25 
 
11,522.00 
 
143.712,90 
 
51,843,46 67.964,94 
 
Total Assets 
 
$ 1.201,468.50 $ _....1..6.-.9.3..5...4...,.1...5... 
 
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 Inventories Food Donated Commodities Purchased Food Unreserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
 
$ 
 
8.498,80 $ 
 
56,924.35 
 
78.911.48 
 
112,429,80 
 
$ 
 
87.410,28 $ 
 
169,354.15 
 
$ 
 
51.843,46 
 
67,964.94 
 
994.249,82 $ 
 
0,00 
 
$ 1,114.058.22 $ 
 
0,00 
 
$ 1,201,468.50 $ ...........,;1.6.9."'=1,~.3..5..4...1.==5 
 
See notes to the general purpose financial statements. 
 
- 20- 
 
 EXHIBIT"G" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
JUNE 30, 1998 JUNE 30, 1997 
 
$ 1,095,779.35 $ 1,468,359.62 
 
$ 
 
745,641.50 $ 
 
123,405.72 
 
1,024,282.12 
 
429,027.83 
 
51,843.46 67,964.94 
 
52,524.04 45,990.42 
 
$ 
 
745,641.50 $ 
 
123,405.72 $ 2,239,869.87 $ 1,995,901.91 
 
$ 
 
15,364.44 
 
$ 
 
51,843.46 
 
67,964.94 
 
52,524.04 45,990.42 
 
$ 
 
0.00 $ 
 
0.00 
 
994,249.82 
 
1,024,060.61 
 
$ 
 
0.00 $ 
 
0.00 $ 1,114,058.22 $ 1,137,939.51 
 
$ 
 
745,641.50 $ 
 
123,405.72 $ 2,239,869.87 $ 1,995,901.91 
 
- 21 - 
 
 THOMAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND 
YEAR ENDED JUNE 30.1998 
 
~. 
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 Other Support Services Food Services Operation 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Operating Transfers In 
.Excess of Revenues and Other Financing Sources over (under) Expenditures 
FUND BALANCE JULY 1 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 136,684,00 $ 1,092,426.40 1,315,163.59 511,767.85 
$ 1,963,615.44 $ 1,092,426.40 
 
$ 904,694.68 
180,508.82 4,999.99 
62,484.95 43,119.80 
 
$ 1,851,n1.49 93,940.78 
 
$ 1,945,712.27 $ 1,195,808.24 
 
$ 
 
,17,903.17 $ -103,381.84 
 
103,381.84 
 
$ 
 
17,903.17 $ 
 
0.00 
 
1,096,155.05 
 
0,00 
 
$ 1,114,058.22 $ 
 
0..,0..0.. 
 
See notes to the general purpose financial statements, 
 
- 22- 
 
 EXHIBIT"H" 
 
FEDERAL 
PROGRAMS 
 
OTHER 
PROGRAMS 
 
TOTALS YEAR ENDED JUNE 30,1998 JUNE 30, 1997 
 
$ 1.574.141.75 $ 1,595.722.17 19,367.11 
$ 3.189,231.03 $ 
 
432,883.88 $ 
 
3,236,136.03 $ 2,910,885.76 
531,134.96 
 
3,090,165.97 2.817,511.43 
512,453.15 
 
432,883.88 $ 6,678,156.75 $ 6.420,130.55 
 
$ 2.059.117.79 $ 
464,258.52 294.936.53 203,897.03 112,300.54 63.768.41 
7.212.17 54.722.95 
 
$ 3,260.213.94 $ 
 
$ 
 
-70.982.91 $ 
 
432.883.88 $ 3,396,696.35 $ 3.007.239.40 
 
644.767.34 299,936.52 203,897.03 174.785.49 106,888.21 
7,212.17 54,722.95 1.851.771.49 93,940.78 
 
605.226.84 463,284.74 307,469.44 
58.019.97 77,784.11 
794.25 50.716.76 1,819,806.59 
1,822.42 
 
432,883.88 $ 6.834,618.33 $ 6,392.164.52 
 
0.00 $ -156.461.58 $ 
 
27,966.03 
 
29,198.45 
 
$ 
 
-41,784.46 $ 
 
41,784.46 
 
132,580.29 
 
15.946.63 
 
0.00 $ 0.00 
 
-23,881.29 $ 1.137,939.51 
 
43.912.66 1.094.026.85 
 
$ 
 
0.00 $ 
 
0...0..0... $ 1,114.058.22 $ 1,137,939.51 
 
- 23- 
 
 ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
Total Assets 
 
THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30.1998 
 
EXHIBIT "I" 
 
REGULAR 
 
LOTTERY PROJECT 
 
TOTALS 
 
JUNE 30.1998 
 
JUNE 30,1997 
 
$ 
 
474,825.51 $ 
 
33.393.11 $ 
 
508,218.62 $ 
 
561,475.07 
 
10,998.84 
 
, 
 
10.998.84 
 
12,089.73 205.456.11 
 
$ 
 
485.824.35 $ 
 
33,393.11 $ 
 
519,217.46 $ _ _7..7..9...!o=:02;,;0;;,;;.9.1.. 
 
Total Liabilities and Fund Equity 
 
$ 
 
485,824.35 $ 
 
33.393.11 $ 
 
519,217.46 $ _ _77;";,,oo,9.r,;;;i0i2i0ii;;,;.9.1. 
 
See notes to the general purpose financial statements. 
 
- 24- 
 
 THOMAS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30,1998 
 
EXHIBIT"J" 
 
REVENUES 
State Funds Other Funds 
Total Revenues 
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 
 
REGULAR 
 
LOTIERY PROJECT 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30,1998 
 
JUNE 30,1997 
 
$ 
 
178,183.10 $ 
 
178,183,10 $ 
 
351,835.90 
 
$ 
 
687,43 
 
687.43 
 
630,37 
 
$ 
 
687,43 $ 
 
178,183,10 $ 
 
178,870.53 $ 
 
352.466.27 
 
$ 
 
0,00 $ 
 
304,514,44 $ 
 
304,514,44 $ 
 
398,960,09 
 
$ 
 
687.43 $ 
 
-126,331,34 $ 
 
-125,643.91 $ 
 
-46.493,82 
 
$ 
 
$ 
 
-88,427,88 
 
$ 
 
-88,427.88 $ 
 
88,427,88 $ 88.427,88 $ 
 
88,427,88 $ -88.427,88 
0,00 $ 
 
334,730,89 334,730,89 
 
$ 
 
-87,740.45 $ 
 
-37,903,46 $ 
 
-125,643.91 $ 
 
288,237.07 
 
573,564,80 
 
52,875,81 
 
626,440,61 
 
338,203.54 
 
FUND BALANCE JUNE 30 
 
$ 
 
485,824.35 $ 
 
14,972.35 $ 
 
500,796,70 $=====6=2:16,.4..4..0..,.6..1.. 
 
See notes to the general purpose financial statements. 
 
-25 - 
 
 THOMAS COUNTY BOARD OF EDUCATION 
 
SCHEDULE "1" 
 
SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
YEAR 2000 DISCLOSURES 
 
YEAR ENDED JUNE 30, 1998 
 
At June 30, 1998, the Thomas County Board of Education had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result of shortcoInings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 .compliant systems. 
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue. 
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. 
Remediation Stage - When changes are made to systems and equipment. 
Validation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. 
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As of June 30, 1~98, the financial accounting system waS determined to be at the Awareness Stage. 
The Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department of Education). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as of December 9, 1998. The Georgia Department of Education has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards of education currently utilizing the GENESIS accounting software. 
 
See notes to the general purpose financial statements. - 26- 
 
 THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U, S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) 
 
* 10.553 
* 10.555 * 10,550 
 
N/A $ 278,715.19 
 
(2) 
 
N/A 
 
927,613.83 $ 1,836,877.70 (3) 
 
N/A 
 
108,834.57 
 
108,834.57 
 
Total U, S. Department of Agriculture 
 
$ 1,315,163.59 $ 1,945,712.27 
 
Education, U. S. Department of Pass-Through From Berrien County Board of Education d/b/a Southern Pines Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education 1997 Summer 1998 Regular PaSS-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies 1998 Grant Title" Eisenhower Professional Development 1998 Grant Title VI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grants 1997 Grant 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1998 Grant Preschool 1998 Grant Severely Emotionally Disturbed 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Pass-Through From Southwest Georgia Regional Educational Service Agency Safe and Drug-Free Schools 1998 Grant 
Total U. S. Department of Education 
 
84,011 84.011 
84.010 84.281 84.298 
84.276 84.276 
84.027 84.173 84.027 
84.048 
84.186 
 
NlA $ 54,526.06 $ 
 
NlA 
 
31,134.73 
 
54,526,06 31,134.73 
 
NlA 
 
873,431.96 
 
873,431.96 
 
NlA 
 
24,031.12 
 
25,525.22 (3) 
 
NlA 
 
31,711.07 
 
31,711,07 
 
NlA 
 
15,364.44 
 
NlA 
 
4,812.00 
 
5,213,36 (3) 
 
NlA 
 
308,870.50 
 
308,870,50 
 
NlA 
 
50,637.00 
 
50,637.00 
 
N/A 
 
108,172,17 
 
108,172.17 
 
NlA 
 
50,847.60 
 
59,994.01 (3) 
 
N/A 
 
27,261.75 
 
29,499.51 (3) 
 
$ 1,565,435.96 $ 1,594,080.03 
 
-27 - 
 
 THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EX~ENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 1998 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAM/GRANT 
OTHER FEDERAL ASSISTANCE 
Defense, U. S. Department of Direct Department of the Air Force R.O.T.C. Program 1998 Grant 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
$ 30,286.21 $ 
 
74,862.81 (3) 
 
Total Federal Financial Assistance 
= N/A Not Available 
 
$ 2,910,885.76 $ ==3=,6=1:::4,=65=5...1..=1 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system dUring the current fiscal year. 
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 1998 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
The Board did not provide Federal Assistance to any Subrecipienl 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity 'of the Thomas 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 financial statements for the Govemmental Funds. 
 
See notes to the general purpose financial statements. 
 
- 28- 
 
 THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1998 
 
SCHEDULE "3" 
 
AGENCYIFUNDING 
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 Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program PSATExams Remedial Summer School Program severely Emotionally Disturbed Student Records Teachers' Retirement Tuition for the Multi-Handicapped Young Farmer Lottery Programs Alternative School Program Exceptional Growth-Capital OuUay Instructional Technology Assistive Technology Classroom Technology 
Human Resources, Georgia Department of Special Education Services 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 10,246,948.00 2,m,475.00 396,455.00 440,477.00 144,626.00 2,939,016.00 
654,827.00 192,278.00 56,114.00 410,477.00 181,480.00 81,498.00 310,342.00 41,577.00 28,842.00 -1,430,934.00 1,390,291.00 
$ 
121,045.00 18,011.86 2,000.00 
398,870.52 5,000.00 4,500.00 2,256.00 
50,672.00 242.21 
5,249.43 
8,493.00 22,765.39 21,000.00 28,419.00 
 
136,684.00 
1,574,141.75 
4,13~.00 
$ 2,934.90 140,778.00 
 
$ 10,246,948.00 2,777,475.00 396,455.00 440,477.00 144,626.00 2,939,016.00 
 
654,827.00 192,278.00 56,114.00 410,477.00 181,480.00 81,498.00 310,342.00 41,577.00 
2~,842.00 
-1,430,934.00 1,390,291.00 
136,684.00 
 
121,045.00 18,011.86 2,000.00 
398,870.52 5,000.00 4,500.00 2,256.00 
50,672.00 242.21 
5,249.43 1,574,141.75 
8,493.00 22,765.39 21,000.00 28,419.00 
 
178,183.10 
 
4,132.00 178,183.10 
 
2,934.90 140,778.00 
 
432,883.88 
 
432,883.88 
 
944,581.50 
 
944,581.50 
 
60,582.00 
 
60,582.00 
 
See notes to the general purpose financial statements. 
 
$ 19,610,895.41 $ 3,236,136.03 $ 
 
178,183.10 $ 23,025,214.54 
 
- 29- 
 
 THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "4" 
 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional services School Administration Maintenance and Operation of Plant 
 
ALTERNATIVE SCHOOL PROGRAM 
 
INSTRUCTIONAL TECHNOLOGY 
 
ASSISTIVE 
 
CLASSROOM 
 
TECHNOLOGY TECHNOLOGY 
 
PRE-KINDERGARTEN PROGRAM 
 
TOTAL 
 
$ 
 
8,907.73 $ 
 
2,934,90. $ 137,505,54 $ 
 
4,61 
 
22,703,83 
 
755,346,51 $ 904,694,68 
 
180,508,82 4,999,99 
62,484,95 20,411,36 
 
180,508,82 4,999,99 
62,484,95 43,119.80 
 
Total Expenditures 
 
$ 
 
8,912.34 $ 
 
2,934.90 $ 160,209.37 $ 
 
1,023,751.63 $ 1,195,808,24 
 
RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures A1temative School Program Instructional Technology Assistive Technology Classroom Technology Pre-Kindergarten Program 
 
$ 979,608.21 
8,912.34 
2,934.90 160,209.37 44,143.42 
 
$ 1,195,808,24 
 
See notes to the general purpose financial statements. 
 
- 30- 
 
 THOMAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1998 
 
SCHEDULE "5" 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
14,171,697.00 $ _ _....;3;.::;84....:.l,=85::..:1..:.;:.0~0 
 
$ 
 
13,507,248.17 
 
1,219,761.78 $ _---.,;1~,1:.::;0..:..l1,.:.:72:.:5;.:.::.5;=.5 
 
$ 
 
14,727,009.95 
 
-14,046.14 $ _ _1:..:4.1.:.,7..:.:12:::J,,9;;.;6;.::;3;.:.:::.8~1 
 
$ 
 
0.00 $=====0:=.0:=0 
 
See notes to the general purpose financial statements. - 31 - 
 
 THOMAS COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM 
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1998 
 
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 I (*) Category II (*) Ca,tegory III (*) Category IV (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM r> 
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS 
Salaries Operations 
Total Media Center Programs 
Total Fourteen Weighted and Media Center Programs 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL ~ 
 
ORIGINAL 
 
MID-TERM 
 
$ 1,155,641.00 2,725,043.00 
$ 3,880,684.00 1,240,035.00 2,431,058.00 1,276,497.00 849,645.00 569,029.00 
$ 10,246,948.00 
 
$ 
90 $ 90 90 90 90 90 
$ 
 
1,040,076.90 $ 2,452,538.70 3,492,615.60 $ 1,116,031.50 2,187,952.20 1,148,847.30 
764,680.50 512,126.10 9,222,253.20 $ 
 
155,171.00 155,171.00 155,171.00 310,342.00 
 
$ 2,610,831.00 
 
$ 2,349,747.90 $ 
 
0.00 
 
$ 2,610,831.00 
 
166,644.00 
 
$ 2,777,475.00 
 
$ 
 
396,455.00 
 
$ 13,420,878.00 
 
90 $ 2,349,747.90 $ 
 
90 
 
149,979.60 
 
$ 2,499,727.50 $ 
 
90 $ 
 
356,809.50 $ 
 
$ 12,078,790.20 $ 
 
0.00 
0.00 0.00 310,342.00 
 
$ 
 
357,091.00 90 $ 
 
321,381.90 $ 
 
0.00 
 
83,386.00 90 
 
75,047.40 
 
$ 
 
440,477.00 
 
$ 
 
396,429.30 $ 
 
0.00 
 
$ 13,861,355.00 
 
$ 12,475,219.50 $ . 310,342.00 
 
STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs (") Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. 
 
$ 
 
41,905.00 
 
.$ 
 
41,905.00 $ 
 
0.00 
 
102,721.00 
 
102,721.00 
 
0.00 
 
$ 
 
144.626.00 100 $ 
 
144,626.00 $=====O;,;.;'O~O 
 
- 32 - 
 
 SCHEDULE "6" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 1,195,247.90 $ 1,152,260.48 $ 
 
20,584.99 $ 1,172,845.47 
 
2,452,538.70 
 
2,610,085.30 
 
160,899.14 
 
2,770,984.44 
 
$ 3,647,786.60 $ 3,762,345.78 $ 
 
181,484.13 $ 3,943,829.91 $ 
 
0.00 
 
1,116,031.50 
 
1,353,672.82 
 
124,064.61 
 
1,477,737.43 
 
0.00 
 
2,187,952.20 
 
2,345,293.69 
 
270,424.61 
 
2,615,718.30 
 
0.00 
 
1,304,018.30 
 
1,420,060.88 
 
225,793.30 
 
1,645,854.18 
 
0.00 
 
764,680.50 
 
721,849.09 
 
67,391.80 
 
789,240.89 
 
0.00 
 
512,126.10 
 
602,049.48 
 
64,829.79 
 
666,879.27 
 
0.00 
 
$ 9,532,595.20 $ 10,205,271.74 $ 
 
933,988.24 $ 11,139,259.98 
 
$ 2,349,747.90 $ 
 
193,078.87 $ 715,161.07 1,515,742.14 
 
2,706.82 $ 49,152.41 111,544.28 
291.77 
 
195,785.69 764,313.48 1,627,286.42 
291.77 
 
$ 2,349,747.90 $ 2,423,982.08 $ 
 
163,695.28 $ 2,587,677.36 
 
0.00 
 
149,979.60 
 
157,826.88 
 
3,418.02 
 
161,244.90 
 
0.00 
 
$ 2,499,727.50 $ '2,581,808.96 $ 
 
167,113.30 $ 2,748,922.26 
 
$ 
 
356,809.50 $ 
 
383,680.56 $ 
 
624.01 $ 
 
384,304.57 
 
0.00 
 
$ 12,389,132.20 $ 13,170,761.26 $ 1,101,725.55 $ 14,272,486.81 
 
$ 
 
321,381.90 $ 
 
336,486.91 
 
$ 
 
336,486.91 
 
0.00 
 
75,047.40 
 
$_--:1~18::.:.,O:=.:3:.=6=.2:::.3 
 
118,036.23 
 
0.00 
 
$ 
 
396,429.30 $ 
 
336,486.91 $ 
 
118,036.23 $ 
 
454,523.14 
 
$ 12,785,561.50 $ 13,507,248.17 $ 1,219,761.78 $ 14,727.009.95 $ ......=====0;;,;;.0;;;.0 
 
$ 
 
41,905.00 
 
102,721.00 
 
$ =====1:;;,44::=,6;;;;2=6=:.0;;;.0 
 
$ 
 
120.226.08 $ 
 
120,226.08 
 
57.581.45 
 
57.581.45 
 
$ 
 
177,807.53 $ 
 
177,807.53 $======0=:.0;;;.0 
 
- 33 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
April 1, 1999 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Thomas 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 ofThomas County Board ofEducation as of and for the year ended June 30, 1998, and have issued our report thereon dated April 1, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose fmancial 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 Thomas 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 Thomas County Board of Education's internal control over fmancial 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 
98YB-40 
 
 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 of the internal control over financial reporting that, in ourjudgement, could adversely affect Thomas County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the fmancial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7361-98-01. 
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 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 for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record. 
Respectfully submitted, 
2.....tl ~.~ Russell W. Hinton State Auditor 
RWH:gp. 98YB-40 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
April 1, 1999 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education 
and Superintendent and Members of the Thomas County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM ANDINTERNALCONTROLOVERCOMPLIANCEINACCORDANCEWITHOMBCIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Thomas County Board of Education with the types of compliance 
requirements described in the u.s. Office ofManagement and Budget (OME) Circular A-I33 Compliance 
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Thomas County Board ofEducation'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 Thomas County Board of Education's management. Our responsibility is to express an opinion on Thomas 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 OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-l33 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 Thomas 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 Thomas County Board ofEducation's compliance with those 
r~quirements. 
 
98SA-1O 
 
 In our opinion, the Thomas 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, 1998. 
 
Internal Control Over Compliance 
 
The management of Thomas 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 Thomas 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 OMB 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. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
 
This report is intended for the information of management, the Federal cognizant agency, Federal awarding 
 
agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which 
 
is a matter of public record. 
 
. 
 
Respectfully submitted, 
~ . .I&W.~~ Russell W. Hinton State Auditor 
 
RWH:gp 98SA-I0 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 THOMAS COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
7361-93-03 FS-7361-97-01 
 
Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7361-97-01 
 
Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1998 
 
I SUMMARY OF AUDITOR'S RESULTS 
 
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Thomas 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 Thomas 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 ofthe Thomas 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 Thomas County Board ofEducation did not disclose 'any reportable conditions 
 
in internal control over major programs. 
 
. 
 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Thomas 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 .5IOCa) ofOMB Circular A-133 The Thomas County Board ofEducation's audit did not disclose audit findings required to be reported by section .5lO(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 
10.550 Food and Nutrition Program - Food Distribution Program 
 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
 
9. Low Risk Auditee The Thomas County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. 
 
- 1- 
 
 THOMAS COUNtY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1998 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7361-98-01 
 
The Thomas County Board of Education 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 of the Board being incomplete and not in 
 
accordance with generally accepted accounting principles. Appropriate action should be taken by the Board 
 
to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account 
 
Group. These subsidiary records should include inventory of land, buildings and equipment owned by the 
 
board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement 
 
cost, location and description. Detailed records should be maintained of all additions and deletions to the 
 
General Fixed Assets Account Group. 
 
. 
 
Management's Response: 
 
We concur with this recommendation. 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 at this time. 
 
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
No matters were reported. 
 
-2-