Audit report, Thomas County Board of Education, Thomasville, Georgia, year ended June 30, 1999

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AUDIT REPORT THOMASCOUNTYBOARDOFEDUCATION
THOMASVILLE, GEORGIA YEAR ENDED JUNE 30, 1999
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

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

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

STATEMENTOFCASHFLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

7

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

9

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 EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF EXPENDITURES

LOTTERY PROGRAMS

29

TIIOMAS COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

31

5

BYPROGRAM

32

SECTION II
COMPLIANCE AND INTERNAL CONIROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONIROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLLi\NCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONIROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 7, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board ofEducation
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 pwpose :financial statements of the Thomas County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general pwpose :financial statements are the responsibility ofthe Thomas County Board ofEducation's management. Our responsibility is to express an opinion on these general pwpose :financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable
to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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.
As described in the notes to the general pwpose :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 pwpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

99ARL-13

* School activity accounts maintained at the individual schools are not included in the general pwpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1999, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department ofEducation for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were improperly recorded in the year ended June 30, 1999. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements 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 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 Thomas County Board of Education as of June 30, 1999, 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 February 7, 2000, 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.
Our audit was performed for the purpose offorming 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 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 ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes ofadditional analysis and are not a required part ofthe general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~w.4:k Russell W. Hinton State Auditor .
RWH:jb 99ARL-13

THOMASCOUNTYBOARDOFEDUCATION

THOMAS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 1999

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
Total Assets

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 2,092,711.36 $

218,418.46 $

173,780.05

660,636.69

11,667.89

386,978.22

1,364,459.55

28,886.80

82,483.34

55,945.37 41,124.79

$ 3,222,809.61 $ 1,679,948.17 $ ___2_1_4_,3_34_.7_4_

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 State Programs For Endowment Corpus For Inventories Consumable Supplies Food Donated Commodities Purchased Food For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated

Total Fund Equity

$

638,475.61 $ 1TT,901.TT

492,084.19

22,457.52

$

638.475.61 $ 692.443.48

$

302.75

$

82,483.34

440,085.73 21061 z764.93
$ 2.584.334.00 $

55,945.37 41,124.79
$
890.131.78
987.504.69 $

49,290.00
165.044.74 214.334.74

Total Liabilities and Fund Equity

$ 3,222,809.61 $ 1,679,948.17 $

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

-2-

214,334.74

EXHIBIT"A"

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

$

35.88

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Onl~

JUNE 3011999

JUNE 3011998

$ 2,484,945.75 $ 3,765,551.71

50,000.00

722,304.58

688,882.38

1,780,324.57

1,463,797.51

82,483.34
55,945.37 41,124.79

86,995.09
51,843.46 67,964.94

$

164.445.25

1641445.25

1 n1151.11

$

50,035.88 $

164,445.25 $ 5,331,573.65 $ 6,302,192.86

$

816,3TT.38 $ 1,362,645.60

492,084.19

484,864.27

22,457.52

3,032.24

16,545.60

1,875.16

$

1641445.25

1641445.25

1TT1157.TT

$

1641445.25 $ 11495.364.34 $ 210461120.64

$

50,000.00

35.88

$

501035.88

$

302.75

50,000.00 $

50,000.00

82,483.34

86,995.09

55,945.37 41,124.79 49,290.00

51,843.46 67,964.94 14,972.35

440,085.73 3 111619 n .33

404,392.30 3.579.904.08

$ 3,836,209.31 $ 4.256.072.22

$

50,035.88 $

164,445.25 $ 5,331,573.65 $ 6,302,192.86

-3-

THQMAS QQ!.!NTY t1QAB!J QF EQ!.!t;AIIQN
QQMBINEI:! ST8TEMEtfi QE B!;YEN!,!ES, EXP!;;NDIT!,!RES 8Nt! QHANGES IN E!.!ND B8!,,8NQES
8!.L GQVERNM!;;NT&, E!.!Nt! MES IDR ENQED J!,!NE 30, 1999

EXHIBIT"B"

BEVEN!,!ES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDIT!,!RES
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 FINANQIN~ SQ!.!RQES (!.!SES}
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 BALANQE J!,!LY 1

GENERAL FUND

SPECIAL REVENUE
FUND

CAPITAL PROJECTS
FUND

TOTALS (Memorandum On~
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 20,341,070.80 $
3,683,202.61 505,159.66

3,268,306.92 $ 3,157,243.64
510.711.59

$ 24,529,433.07 $ 6,936,262.15 $

288,868.00 $ 23,898,245.72 $ 23,025,214.54

3, 157,243.64

2,910,885.76

3,683,202.61

3,381,404.49

669.05

1,016,540.30

1,011,798.23

289,537.05 $ 31.755,232.27 $ 30,329,303.02

$ 16,616,755.59 $ 3,519,163.39

1,351,404.97 534,559.54 462,867.41 359,966.82
1,504,292.74 217,554.02
1,833,749.60 1,433,869.48
281,313.28 21,222.60

556,096.15 339,838.92
15,312.13 245,572.45 182,743.71
99,473.78 4,962.87
81,020.66 2,097,362.85
$

$ 24,617,556.05 $ 7,141,546.91 $

$ -88,122.98 $ -205,284.76 $

$ 20,135,918.98 $ 19,197,187.76

415,999.01

1,907,501.12 874,398.46 478,179.54 605,539.27
1,687,036.45 217,554.02
1,933,223.38 1,438,832.35
281,313.28 102,243.26 2,097,362.85 415,999.01

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
277,828.23 69,085.43 1,851,771.49 398,455.22

415,999.01 $ 32,175,101.97 $ 30,905,250.70

-126,461.96 $ -419,869.70 $ -575,947.68

$ 160,000.00 $ -78.731.23

$

81,268.77 $

78,731.23 $
78.731.23 $

$ 238,731.23 $

-160,000.00

-238.731.23

-160,000.00 $

0.00 $

132,580.29 -132,580.29
0.00

$

-6,854.21 $ -126,553.53 $

2,591, 188.21

1,114,058.22

-286,461.96 $ -419,869.70 $ -575,947.68

500,796.70

4,206,043.13

4.781,990.81

F!.!N!J BALANQE JUNE 30

$ 2.584.334.00 $ 987.504.69 $ 214.334.74 $ 3.7861173.43 $ 41206.043.13

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 - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30.1999

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

REVENUES

State Funds Federal Funds Taxes OtherFunds

$ 20,181,613.74 $ 20,341,070.80

3,584,500.00 191,007.00

3,683,202.61 505,159.66

Total Revenues

$ 23,957,120.74 $ 24,529,433.07

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

$ 16,564,500.00 $ 16,616,755.59

1,155,161.00 521,500.00 465,500.00 359,700.00
1,498,500.00 215,750.00
1,941,000.00 1,479,500.00
201,550.00 26,000.00

1,351,404.97 534,559.54 462,867.41 359,966.82
1,504,292.74 217,554.02
1,833,749.60 1,433,869.48
281,313.28 21,222.60

Total Expenditures

$ 24,428,661.00 $ 24,617,556.05

Excess of Revenues over (under) Expenditures

$ -471,540.26 $ -88,122.98

OTHER FINANCING SOURCES {USES)

Other Sources Other Uses

$ 160,000.00 -78,731.23

Total Other Financing Sources (Uses)

$

81,268.77

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

-471,540.26 $

-6,854.21

FUND BALANCE JULY 1, 1998

2,009,401.93

2,591, 188.21

Adjustments

-21,147.44

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS}

$ 3,440,090.00 $ 3,268,306.92

2,839,701.00

3,157,243.64

660,000.00

510,711.59

$ 6,939,791.00 $ 6,936,262.15

$ 3,374,633.00 $ 3,519,163.39

786,140.00 275,312.00
207,125.00 151,0f.,8.00

556,096.15 339,838.92
15,312.13 245,572.45 182,743.71

74,162.00 1,500.00

99,473.78 4,962.87

84,851.00 2,027,000.00

81,020.66 2,097,362.85

$ 6,981,791.00 $ 7,141,546.91

$ -42,000.00 $ -205,284. 76

$

78,731.23

$

78,731.23

$ -42,000.00 $ -126,553.53

1, 126,306.30

1, 114,058.22

-0.90

FUND BALANCE JUNE 30, 1999

$ 1,516,714.23 $ 2,584,334.00

$ 1,084,305.40 $ 987,504.69

The notes to the general purpose financial statements are an integral part of this statement. -5-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

YEAR ENDED JUNE 30, 1999

OPERATING REVENUES Donations
OPERATING EXPENSES Current Support Services General Administration Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND BOBBY
SINGLETARY FAMILY
SCHOLARSHIP FUND

TOTALS (Memorandum Only}
YEAR ENDED
JUNE 30, 1999 JUNE 30, 1998

$

0.00 $

0.00 $

12,500.00

$

2,787.00 $

2,787.00 $

1,000.00

$

-2,787.00 $

-2,787.00 $

11,500.00

2,793.79

2,793.79

196.13

$

6.79 $

6.79 $

11,696.13

50,029.09

50,029.09

38,332.96

$

50,035.88 $

50,035.88 $===5=0,0=29=.0=9

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, 1999

EXHIBIT "E"

Cash Flows from Operating Activities: Cash Paid for Scholarships Donation Received
Net Cash Provided (Used) by Operating Activities
Cash Flows from Investing Activities: Interest Received on Investments Purchase of Investments (Net)
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
SCHOLARS.HIP FUND

TOTALS {Memorandum Onl~}
YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$

-2,787.00 $

-2,787.00 $

-1,000.00

12,500.00

$

-2,787.00 $

-2,787.00 $

11,500.00

$

2,793.79 $

2,793.79 $

196.13

29.00

29.00

-50,029.00

$

2,822.79 $

2,822.79 $

-49,832.87

$

35.79 $

35.79 $

-38,332.87

$

0.09 $

0.09 $

38,332.96

$

35.88 $

35.88 $

0.09

======

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. 1999

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 ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose :financial statements.
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.
-9-

THOMAS COUNTY BOARD OF EDUCATION

EXIDBIT "F"

NOTES IO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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 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. This fund includes:
NONEXPENDABLETRUSTFUND Bobby Singletary Family Scholarship Fund - the fund used to account for an endowment ofwhich 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 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 (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.
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 ofthese 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.
-10-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1999, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion ofthe compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
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 of this 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 final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

- 11 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn 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 ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions ofthe State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when
-12-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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 amounts 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 1998 tax year (calendar year) on September 28, 1998 (levy date). Taxes were due on December 20, 1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Thomas 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.

The tax millage rate levied for the 1998 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

8.80 mills

INVENTORIES

SUPPLIES INVENTORIES Inventories of consumable 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 ofnet current assets.

- 13 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

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 ofinterfund 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 ofoperations 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 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 of the 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. OCGA Section 45-8-11(b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination ofthe following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
- 14-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 2: DEPOSITS AND INVESTMENTS

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

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

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

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

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

Georgia, and



(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS
At June 30, 1999, the bank balances were $4,327,288.23. The amounts of the 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.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

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

Risk Category

Bank Balance

1

$ 300,000.00

2

3,927,249.45

3

100,038.78

Total

$ 4.327.288.23

- 15 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 2: DEPOSITS AND INVESTMENTS
CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $672,304.58 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 ofTreasury 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 of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net ofmanagement 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 guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist offunds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund land 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. Govemr.aent or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity ofGeorgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years.
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.
-16-

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ruNE 30. 1999

Note 4: RISK MANAGEMENT

The Board has obtained commercial insurance for risk ofloss associated with torts 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 ofgeneral liability, motor vehicle liability, or property 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 of the system. The Board pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.

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 of that loss can be reasonably estimated.

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

Beginning ofYear
Liability

Claims and Changes in
Estimates

Claims Paid

EndofYear Liability

1998

$

~.112,QQ $

Q,QQ $

s.112.00 $

Q,00

1999

$

Q,QQ $

2,S64,SQ $

2,S6:1,SQ $

O,QQ

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

- 17 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 5: GENERAL LONG-TERM DEBT

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

Balance July 1, 1998
Deductions Annual Leave Earned and Utilized (Net)
Balance June 30, 1999
Note 6: ON-BEHALF PAYMENTS

Compensated Absences
$ 177,157.77
12,712.52 $ 164.445 .25

The Board has recognized revenues and expenditures in the amount of$473,450.73 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$376,709.06

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $26,540.67

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$70,201.00

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

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant 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.

- 18 -

THOMAS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 8: ACCUMULATED EMPLOYEES' LEAVE

Twelve month employees earn ten days ofvacation 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 ofemployment, employees have the option ofearly release or payment for accumulated vacation time at their current rate of pay. See Note 1 -Compensated Absences

Nme9: RETIREMENTPLANS

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 Georgie:!, issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$2,181,622.12 $ 1,984,140.15 $ 1,853,202.61

- 19-

THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 1999

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of State 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

$ 977,852.25 $

13,920.69

4,647.57

128,125.74

55,945.37 41,124.79

$ 1,079,569.98 $====1=4=2=,0-=4=6=.4=3--

$

13,393.86 $

36,902.21

78,974.18

104,841.47

$

92,368.04 $ 141,743.68

$

$

55,945.37

41,124.79

890,131.78

$ 987,201.94 $

302.75
0.00 302.75

$ 1,079,569.98 $===14=2,0=46=.43=

EXHIBIT"G"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS
JUNE 30, 1999 JUNE 30, 1998

$ 991,772.94 $ 1,095,779.35

$ 1,049,216.43 $ 182,469.81

1,364,459.55

1,024,282.12

55,945.37 41,124.79

51,843.46 67,964.94

$ 1,049,216.43 $ 182,469.81 $ 2,453,302.65 $ 2,239,869.87

$ 597,538.35 $ 120,952.02 308,268.54 22,457.52
$ 1,049,216.43 $

175,816.13 $ 6,653.68

773,354.48 $ 177,901.77 492,084.19 22,457.52

404,750.57 233,164.57 484,864.27
3,032.24

182,469.81 $ 1,465,797.96 $ 1,125,811.65

$

302.75

55,945.37 $ 41,124.79

51,843.46 67,964.94

$

o.oo $ ____0_._00_

890,131.78

994,249.82

$

0.00 $

0.00 $ 987,504.69 $ 1,114,058.22

$ 1,049,216.43 $ ,182,469.81 $ 2,453,302.65 $ 2,239,869.87

-21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media 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

$ 144,742.00 $ 1,315,552.98 510,211.59
$ 1,970,506.57 $

996,190.48 996,190.48

$ 785,268.84 174,102.15 347.68
68,609.82 35,123.16
$ 2,097,362.85
$ 2,097,362.85 $ 1,063,451.65 $ -126,856.28 $ -67,261.17

67,563.92

$ -126,856.28 $ 1, 114,058.22

302.75 0.00

$ 987,201.94 $

302.75

======

See notes to the general purpose financial statements.
-22-

EXHIBIT"H"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1999 JUNE 30, 1998

$ 1,642,590.00 $ 1,841,690.66 500.00
$ 3,484,780.66 $

484,784.44 $

3,268,306.92 $ 3,157,243.64
510,711.59

3,236,136.03 2,910,885.76
531,134.96

484,784.44 $ 6,936,262.15 $ 6,678,156.75

$ 2,249,110.11 $
381,994.00 339,491.24
15,312.13 245,572.45 114,133.89
64,350.62 4,962.87 81,020.66
$ 3,495,947.97 $
$ -11,167.31 $

484,784.44 $ 3,519,163.39 $ 3,396,696.35

556,096.15 339,838.92
15,312.13 245,572.45 182,743.71
99,473.78 4,962.87 81,020.66 2,097,362.85

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

484,784.44 $ 7,141,546.91 , $ 6,834,618.33

0.00 $ -205,284.76 $ -156,461.58

11,167.31

$

0.00 $

0.00

78,731.23

132,580.29

0.00 $ -126,553.53 $ -23,881.29

0.00

1,114,058.22

1,137,939.51

$

0.00 $

0.00 $ 987,504.69 $ 1,114,058.22

-23-

THOMAS COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 1999

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

REGULAR

LOTTERY PROJECT

TOTALS JUNE 30, 1999 JUNE 30, 1998

$

153,376.85 $

20,403.20 $

173,780.05 $

508,218.62

11,667.89

11,667.89

10,998.84

28,886.80

281886.80

$

165,044.74 $

49,290.00 $

s_ _ 214,334.74

5_1_9_.2_11_.4_6_

LIABILITIES AND FUND EQUITY

LIABILITIES

Contracts Payable Retainages Payable

Total Liabilities

FUND EQUITY

Fund Balances

Reserved

For State Capital Outlay Projects

Unreserved

Undesignated

$

Total Fund Equity

$

$ 1651044.74 1651044.74 $

$

16,545.60

11875.16

$

18,420.76

49,290.00 $ 0.00
491290.00 $

49,290.00 $ 165,044.74 2141334.74 $

14,972.35 4851824.35 500,796.70

Total Liabilities and Fund Equity

$

165.044.74 $

49.290.00 $

s_ _ 214.334.74

5_1_9_.2_11_.4_6_

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, 1999

REVENUES

State Funds

Other Funds

$

Total Revenues

$

EXPENDITURES

Capital OuUay

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
$ 669.05 669.05 $
0.00 $ 669.05 $
$ -321.448.66 -321.448.66 $ -320,779.61 $ 485.824.35

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 301 1999

JUNE 30, 1998

288,868.00 $ 288.868.00 $

288,868.00 $ 669.05
289,537.05 $

178,183.10 687.43
178.870.53

415,999.01 $ -127,131.01 $

415.999.01 $ -126.461.96 $

304.514.44 -125.643.91

161,448.66 $ 161,448.66 $

161,448.66 $ -321.448.66
-1601000.00 $

88,427.88 -88,427.88
0.00

34,317.65 $ 14,972.35

-286,461.96 $ 500,796.70

-125,643.91 626,440.61

FUND BALANCE JUNE 30

$

165,044.74 $

49,290.00 $

s_ _ _ 214.334.74

5,..oo...,.7_96,..._10_

See notes to the general purpose financial statements.

-25-

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U.S. Department of Agriculture
Education, U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through 1999 Grant Preschool 1999 Grant Severely Emotionally Disturbed 1999Grant
Total Special Education Cluster
Other Programs Pass-Through From Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act nue 1 Migrant Education 1999Summer 1999Grant Pass-Through From Georgia Department of Education Elementary and Secondary Education Act nue 1 Grants to Local Educational Agencies 1999 Grant nue 11 Eisenhower Professional Development 1999 Grant TIUeVI Innovative Education Program Strategies 1999 Grant Goals 2000 State and Local Education Systematic Improvement Grant 1999Grant Technology Literacy Challenge Grant 1999Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.553 * 10.555

NIA

$

260,942.70

(2)

NIA

938,538.21 $

1,981,290.78 (3)

$ 1,199,480.91 $

1,981,290.78

10.550

NIA

116,072.07

116,072.07

$ 1,315,552.98 $

2,097,362.85

84.027 84.173 84.027

NIA

$

243,933.29 $

243,993.43 (3)

NIA

49,553.00

50,180.65 (3)

NIA

225,118.46

. 225,795.84 (3)

$

518,604.75 $

519,969.92

84.011

NIA

84.011

NIA

* 84.010

NIA

84.281

NIA

84.298

NIA

84.276

NIA

84.318

NIA

84.048

NIA

-26-

32,174.91 24,447.45

32,174.91 24,447.45

879,105.52 24,590.95 30,221.88
126,937.02 8,827.08
34,306.51

879,701.08 (3) 24,590.95 30,221.88
127,215.22 (3) 8,827.08
34,4TT.37 (3)

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Grady County Board of Education Goals 2000 Technology Literacy Challenge Program 1999 Regular Pass-Through From Southwest Georgia Regional Educational Service Agency Safe and Drug-Free Schools 1999Grant
Total U. S. Department of Education
Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Family Connection Grant
OTHER FEDERAL ASSISTANCE
Defense, U.S. Department of Direct Department of the Air Force R.O.T.C. Program 1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.318 84.186 93.TTS

NIA

$

83,281.01 $

83,281.01

NIA

39,549.47

42,673.09 (3)

$ 1,802,046.55 $ ____1=,8.0.7.'-L,5__7__9__.~9.6...

NIA

$

12,500.00 $

25,000.00 (3)

$

27144.11 $

33,278.01 (3)

Total Federal Financial Assistance

s _ _ $ 3,157,243.64

3_.oo=3..,.22=-o._s2..,

NIA = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value 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 1999 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 Subrecipient

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 general purpose financial statements.

See notes to the general purpose financial statements.

-27-

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1999

SCHEDULE "2"

~

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Limited English Speaking Middle School Incentive Program Special Instructional Assistance In-School Suspension Migrant Education Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Governor's Emergency Funds (1) Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Severely Emotionally Disturbed Student Record Project Teachers' Retirement Lottery Programs Exceptional Growth-Capital Outlay Assistive Technology Computers in the Classroom
Human Resources, Georgia Department of Family Connection Grant 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

$ 10,809,549.00 3,221,040.00 444,317.00 481,940.00 144,539.00 3,074,903.00
678,883.00 191,750.00
37,234.00 428,676.00 197,020.00
85,406.00 3,836.00
43,787.00 28,842.00 -1,834, 144.00 1,618,119.00
$
121,045.00 16,485.71 476.91 2,000.00
376,709.06 4,597.95 5,400.00 2,430.00
50,512.00 5,016.25
3,959.25 26,540.67

$
144,742.00
1,630,090.00 $ 288,868.00
2,082.20 104,721.00

10,809,549.00 3,221,040.00 444,317.00 481,940.00 144,539.00 3,074,903.00
678,883.00 191,750.00 37,234;00 428,676.00 197,020.00 85,406.00
3,836.00 43,787.00 28,842.00 -1,834, 144.00 1,618,119.00 144,742.00
121,045.00 16,485.71 476.91 2,000.00
376,709.06 4,597.95 5,400.00 2,430.00 50,512.00 5,016.25
1,630,090.00 3,959.25
26,540.67
288,868.00 2,082.20
104,721.00

12,500.00 484,784.44

12,500.00 484,784.44

889,387.28

889,387.28

70,201.00

70,201.00

$ 20,3411070.80 $ 3,2681306.92 $ 288,868.00 $ 23,898,245.72

(1) The purpose of the funds are School of Excellence - Cross Creek. See notes to the general purpose financial statements.

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30. 1999

SCHEDULE "3"

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services School Administration Maintenance and Operation of Plant

ASSISTIVE TECHNOLOGY

COMPUTERS INTHE
CLASSROOM

PRE-KINDERGARTEN PROGRAM

$

2,082.20 $

79,078.79 $

704,107.85 $

251340.36

174,102.15 347.68
68,609.82 9z782.80

TOTAL
785,268.84
174,102.15 347.68
68,609.82 351123.16

Total Expenditures

$

2,082.20 $

104,419.15 $ --==9=5=61595==0=.3==0 $ 1,063,451.65

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

$

929,957.75

2,082.20 104,419.15
26,992.55

s ...,_,__,.1._os_3.,.4..s..,1.6..,..5

See notes to the general purpose financial statements.

-29-

THOMAS COUNTY BOARD OF EDUCATION

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

.

YEAR ENDED JUNE 30, 1999

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

14,956,846.00 $

455,465.00

$

14,723,093.24

795,485.54 $ _ __;6;,;;8,;:;,,l8,..:.;19::.::0=.2:..:..1

$ _ _1.;.5"""',5-'-18;.:.,5;.;7.;.8a.;..7.8....

$

0.00 $=======0==00==

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. 1999

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 3 r) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 8 r) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories r) Total General and career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs category I (*) category II (*) Category Ill r) Sub-Total - Regular category VI (Gifted) r) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM Cl
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs
Total Fourteen Weighted and Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$ 1,243,857.00

$ 1,119,471.30 $

0.00

2,875,040.00

2,587,536.00

$ 4,118,897.00 90 $ 3,707,007.30 $

0.00

1,307,178.00 90

1, 176,460.20

2,563,133.00 90

2,306,819.70

1,500,711.00 90

1,350,639.90

693,357.00 90

624,021.30

626,273.00 90

563,645.70

$ 10,809,549.00

$ 9,728,594.10 $

0.00

$ 2,951,562.00

$ 2,656,405.80 $

0.00

$ 2,951,562.00 90 $ 2,656,405.80 $

0.00

269,478.00 90

242,530.20

$ 3,221,040.00

$ 2,898,936.00 $

0.00

$

444,317.00 90 $

399,885.30 $

0.00

$ 14,474,906.00

$ 13,027,415.40 $

0.00

$

380,280.00 90 $

342,252.00 $

0.00

101,660.00 100

101,660.00

$

481,940.00

$

443,912.00 $

0.00

$ 14,956,846.00

$ 13,471,327.40 $

0.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs
r> Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

45,526.00

$

45,526.00 $

0.00

99,013.00

99,013.00

0.00

$ 144,539.00 100 $ 144,539.00 $ ==========0=.=0-0=

- 32

SCHEDULE"5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,119,471.30 $ 1,179,291.03 $

29,850.79 $ 1,209,141.82

2,587,536.00

2,776, 199.26

109,352.03

2,885,551.29

$ 3,707,007.30 $ 3,955,490.29 $

139,202.82 $ 4,094,693.11 $

0.00

1, 176,460.20

1,534,013.02

58,042.94

1,592,055.96

0.00

2,306,819.70

2,569,597.17

133,523.08

2,703, 120.25

0.00

1,350,639.90

1,565,032.89

126,570.06

1,691,602.95

0.00

624,021.30

860,079.38

30,752.88

890,832.26

0.00

563,645.70

647,120.83

59,155.58

706,276.41

0.00

$ 9,728,594.10 $ 11,131,333.58 $

547,247.36 $ 11,678,580.94

$ 2,656,405.80 $

206,606.06 $ 753,786.14 1,634,654.37

4,904.91 $ 20,382.46 106,888.69

211,510.97 774,168.60 1,741,543.06

$ 2,656,405.80 $ 2,595,046.57 $

132,176.06 $ 2,727,222.63

0.00

242,530.20

244,148.91

7,810.08

251,958.99

0.00

$ 2,898,936.00 $ 2,839,195.48 $

139,986.14 $ 2,979,181.62

$

399,885.30 $

405,147.44 $

956.71 $

406,104.15

0.00

$ 13,027,415.40 $ 14,375,676.50 $

688,190.21 $ 15,063,866.71

$

342,252.00 $

347,416.74

$

347,416.74

0.00

101,660.00 - - - - - $

107,295.33

107,295.33

0.00

$

443,912.00 $

347,416.74 $

107,295.33 $

454,712.07

$ 13,471,327.40 $ 14,723,093.24 $ s 795,485.54 15,518,578.78 s===-=======o=.o=o

$

45,526.00

99,013.00

$

144,539.00

$

129,624.91 $

129,624.91

39,591.86

39,591.86

$

169,216.77 $

169,216.77 $ ==-=-====0.0=0

- 33 -

SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 7, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Thomas County Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofThomas County Board ofEducation as of and for the year ended June 30, 1999, and have issued our report thereon dated February 7, 2000. This report was qualified for various departures from generally.accepted accounting principles, as identified in the auditor's report on the general pUipose financial statements. We conducted our audit in accordance with generally accepted auditing
standards and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether 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 of our 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
fu planning and performing our audit, we considered Thomas County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the pUipose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its
99YB-40

operation that we consider to be 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 :financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7361-99-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the :financial statements being audited may occur and not be detected within a timely period by employees in the 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 solely for the information and use ofmanagement, members ofthe Thomas County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 99YB-40

Russell W. Hinton State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
February 7, 2000

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation
and Superintendent and Members ofthe Thomas County Board ofEducation
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Thomas County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. 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 0MB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the 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 requirements.

99SA-10

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 ofits major Federal programs for the year ended June 30, 1999.
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 0MB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees 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 of management, members of the Thomas 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,
?A,.M,00_ ~.4~ Russell W. Hinton State Auditor
RWH:jb 99SA-10

SECTIONill 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, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7361-97-01 FS-7361-98-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7361-98-01
\
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.

SECTIONN FINDINGS AND QUESTIONED COSTS

THOMAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 1999
I SUMMARY OF AUDITOR'S RESULTS
1. Tx_pe ofRe.port Issued on the Financial Statements The auditor's opinion on the Thomas County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Re.portable 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 ho instances ofnoncompliance that were deemed to be material to the financial statements.
4. Re.portable 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. Tx_pe of Re.port 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 ,5 l0(a) of 0MB Circular A-133
The Thomas County Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. MajorPrograms Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act- Title I- Grants to Local Educational Agencies
8. Tx_pe "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 QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial Noncompliance Finding Control Number: FS-7361-99-01
The Thomas County Board ofEducation failed to transfer all of the required local matching funds from the Regular Capital Projects Fund to the Lottery Capital Projects Fund as required for the approval State Capital Outlay Project for the 1999 fiscal year. Both instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Board to receive the funding through Georgia Department of Education (GDOE) require that the Board transfer local matching funds by year end and designate those funds by project name and number. This deficiency occurred due to management disregarding the requirements of FMGLUA and the contractual agreement with GDOE. A correcting audit adjustment was necessary to transfer $49,290.00 from the Regular Capital Projects Fund to Lottery Project No. 00G/99S-736-056 as required.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Wealmess Repeated From Prior Year Finding Control Number: FS-7361-99-02
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 an inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-2-