Toombs County Board of Education, Lyons, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2000

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

GA



A8oo

. RI


2.'o

16

\99q-.2.ooo

00 OooooO O
1776

I
TOOMBS COUNTY BOARD OF EDUCATION
LYONS, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

TOOMBS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES .

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

3

OVERALL

4

BYPROGRAM

Page
2
4 7
8
16 18
20
21
22 24
25
26

TOOMBS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITII GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII 0MB CIRCULARA-133
SECTION ill
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS ,.u-u. Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RussELI, W. H1NTON
STATE AUDITOR
(404) 656-2174

or....~~

'

~','If::.-

,

-

'
:

', Cl
:-
:>

- '

l;,,;, .
-



I 77b

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.\v'., Suite 214 Atlanta, Get>rgia 30334-8400

January 22, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Toombs County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Toombs County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Toombs County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfotm the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2000ARL-13

* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to confo1111 to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To confotm to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To confo11n to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been dete11nined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Toombs County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conforn1ity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated January 22, 2001, on our consideration of the Toombs County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit perfutrned in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was perfo11ned for the purpose of fo11ning an opinion on the general purpose financial statements of the Toombs County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 4), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such info1111ation 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 info1111ation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.
2000ARL-13

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

. RWH:jb 2000ARL-13

Ru ell W. Hinton State Auditor

TOOMBS COUNTY BOARD OF EDUCATION

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

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

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

879,666.81 $

297,679.28

270,244.09

487,877.07

24,218.97 19,512.83

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of SPLOST Projects Unreserved Un designated
Total Fund Equity

============ $

1,149,910.90 $

829,288.15

$

61,246.45 $

76,574.91

5,633.63

257,192.43

42.61

$

66,880.08 $ _ _3;.;3.;.3.:.;;,8.;.0.;.;9.~95~

$

2,326.83

$

24,218.97

19,512.83

1,080,703.99

451,746.40

$

1,083,030.82 $ _ ___,;4;.;;.9=5,....;.;47;...;:8=.2=-0

Total Liabilities and Fund Equity

$ 1,149,910.90 $ =====8=2=9=,=2=8=8=.1=5=

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

-2-


EXHIBIT "A"

TYPES CAPITAL
PROJECTS FUND

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30, 1999

$

818,395.49 $

1,995,741.58 $

1,492,697.37

283,738.09

1,041,859.25

520,734.99

24,218.97 19,512.83

30,377.29 12,081.96

$

1,102,133.58 $

3,081,332.63 $

2,055,891.61

$

1,592.48 $

139,413.84 $

80,804.24

262,826.06

223,589.21

42.61

6,938.68

$

1,592.48 $

402,282.51 $ _ _.=,3.:..11:.z.;3, ::.::3:.:2:..:..1.=..3


$

$
2,326.83

60,782.54 2,326.83

$

402,133.58

24,218.97 19,512.83 402,133.58

30,377.29 12,081.96

698,407.52

2,230,857.91

1,638,990.86

$

1,100,541.10 $

2,679,050.12 $

1,744,559.48

$

1,102,133.58 $

3,081,332.63 $ 2,055,891.61

-3-

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

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

GENERAL FUND

SPECIAL REVENUE
FUND

$ 11,049,145.11 $
2,613,663.78 255,331.35
$ 13,918,140.24 $

884,973.63 2,102,665.34
276,026.22
3,263,665.19

$ 9,126,467.20 $ 1,670,990.59

502,645.44 260,875.18 326,878.41 224,611.74 828,629.50 167,200.03 788,652.68 781,590.08
2,012.09 14,254.53
916.53 34,173.43

172,546.93 147,894.48 23,041.63
9,633.26
18,505.72 37,728.28
17,205.93 1,158,374.78

$ 13,058,906.84 $

$

859,233.40 $ _ _ _7...._7_4_3_.5_9

$
$ -1,041,250.44

11,950.44

$ -1,041,250.44 $ _ ____.;.11.;.i.9;;.;:5;.;:;0.;.;.4'-'-4

$

-182,017.04 $

1,265,047.86

19,694.03 474,511.62

-6, 158.32 7 430.87

FUND BALANCE JUNE 30

$ 1,083,030.82 $

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

495,478.20

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 11,934,118.74 $ 11,084,946.47

2,102,665.34

2,012,127.03

$

402,133.58

3,015,797.36

2,486,026.30

531,357.57

398,704.14

$

402,133.58 $ 17,583,939.01 $ 15,981,803.94

$ 10,797,457.79 $ 9,877,999.76

$ _____33__5_=,8~9=2._4_8"-

675,192.37 408,769.66 349,920.04 234,245.00 828,629.50 167,200.03 807,158.40 819,318.36
2,012.09 31,460.46 1,159,291.31 370,065.91

612,761.64 538,376.24 332,573.24 202,820.78 747,389.16 156,571.10 820,634.28 769,663.76
4,159.78 25,763.47 1,109,594.78 588,704.62

$

335,892.48 $ 16,650,720.92 $ 15,787,012.61

$

66,241.10 $

933,218.09 $ _ _..1..9.-'-4""'-7, '-"9_1_=3.a..3

$

1,029,300.00 $

1,041,250.44 $

-1,041,250.44

92,318.85 -92,318.85

$

1,029,300.00 $

o.oo $ _______o._o__o___

$

1,095,541.10 $

933,218.09 $

194,791.33

5,000.00

1,744,559.48

1,546,114.90

-6, 158.32 7 430.87

6,897.00 -3,243.75

$

1,100,541.10 $

2,679,050.12 $

1,744,559.48

- - -------- - - --- - - --

------

------- --

-5-

TOOMBS 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. 2000

EXHIBIT "C"

REVENUES

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES

$ 10,498,152.00 $ 11,049,145.11

50,000.00

2,557,000.00

2,613,663.78

42,733.00

255,331.35

$ 13,147,885.00 $ 13,918,140.24

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

$ 9,301,481.83 $ 9,126,467.20

463,816.42 228,993.72 322,661.93 269,476.21 827,243.12 164,661.26 810,255.45 811,041.94 68,952.36 11,038.28
17112.00

502,645.44 260,875.18 326,878.41 224,611.74 828,629.50 167,200.03 788,652.68 781,590.08
2,012.09 14,254.53
916.53 34 173.43

Total Expenditures Excess of Revenues over (under) Expenditures

$ 13,296,734.52 $ 13,058,906.84


$ -148,849.52 $

859,233.40

OTHER FINANCING SOURCES (USES\

Other Sources Other Uses

$ -150,000.00 $ -1,041,250.44

Total Other Financing Sources (Uses)

$ -150,000.00 $ -1,041,250.44

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

-298,849.52 $

-182,017.04

FUND BALANCE JULY 1, 1999

1,268,214.00

1,265,047.86

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

8,009.03

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

912,365.21 $

884,973.63

2,091,342.27

2,102,665.34

314,240.00

276,026.22

$ 3,317,947.48 $ 3,263,665.19

$ 1,626,435.18 $ 1,670,990.59

187,814.55 177,900.00 22,930.00 10,584.00

172,546.93 147,894.48 23,041.63
9,633.26

21,691.07 28,621.97
18,088.71 1,228,181.27

18,505.72 37,728.28
17,205.93 1,158,374.78

$ 3,322,246.75 $ 3,255,921.60

$

-4,299.27 $ _ _ _7:.,.7!.,;:4:.,::3,.,.5"-9

$

11,950.44

$ _ _.:.,1.:.,.19::c,5::.,:0"".44c;:_

$

-4,299.27 $

19,694.03

475,393.09

474,511.62

484.28

-6, 158.32 7 430.87

FUND BALANCE JUNE 30. 2000

$

9TT1373.51 $ 110831030.82

$

s___ 471 1578.10

4_95_.1,4_1_8;,;;.2_0

The notes to the general purpose financial statements are an integral part of this statement.
. 7.

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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

-8-

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

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.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is dete11nined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). ''Measurable'' means the amount of the transaction can be determined and ''available'' means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

-9-

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BUDGET
The Toombs County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infu11nation available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The Toombs County Board.of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 7, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Toombs 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.

- 10 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations

15.0 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $402,133.58 and was recorded in the Capital Projects Fund. The State will te1minate collection of this tax once an additional $7,475,866.42 has been collected or on March 31, 2005, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another
fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to

indicate that they are presented only to facilitate financial analysis. Data in these columns do not

present financial position or results ofoperations in confo1mity 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.

.

- 11 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

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

Acceptable security for deposits consists of any one of or any combination of the following:

( 1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

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

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United

States or of the State 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 of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

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

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte11nediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $2,894,995.71. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 12 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS

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, 2000, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

2,300,602.50

3

494,393.21

Total

$ 2,894,995.71

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for 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:

- 13 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

1999
2000

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

1,156.00 $

$

0.00 $

0.00 $

Claims Paid

End of Year Liability

1,156.00 $_ _ _~0-'-'.0--"'0 0.00 $_ _ _~0-'-'.0--"'0

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

Position Covered
'
Superintendent Each Principal Each School Secretary Each School Food Service Cashier School Food Service Secretary School Food Service Director Driver's Education Teacher Each Bookkeeper

Amount
$ 30,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 2,500.00 $ 10,000.00

Note 5: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $218,059.69 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of $178,046.69
'
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$40,013.00

Note 6: 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 tt::1n1s. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

- 14 -

TOOMBS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 6: CONTINGENT LIABILITIES

The Board is a defendant in a legal proceeding pertaining to matters incidental to the perforrnance of routine Board operations. The ultimate disposition ofthis proceeding is not presently dete11ninable, but is not believed to be material to the general purpose financial statements.

Note 7: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department ofAudits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% of. their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is l l .29o/o and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year
2000 1999 1998

Percentage Contributed
100% 100% 100%

Required Contribution
$ 1,043,969.62 $ 1,033,970.85 $ 937,128.20

- 15 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

497,690.22 $

94,675.67

7,873.61

14,030.38

24,218.97 19,512.83

Total Assets

$

549,295.63 $ ===1=08='=70=6=.0=5

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Un designated
Total Fund Equity

$

4,380.63 $

28,974.20

49,436.80

79,731.85

$

53,817.43 $ -----'1-0-8-,7-0-6".0-5-

$

24,218.97

19,512.83

451,746.40 $ -----=0.:.::.0;.;;...0

$

495,478.20 $ _ _ _ _....;;;o..;.;;.o~o

Total Liabilities and Fund Equity See notes to the general purpose financial statements.
- 16 -

$

549,295.63 $ ====1=08....,===70=6=.0===5

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

592,365.89 $

556,414.18

$

449,358.41 $

16,614.67

487,877.07

323,577.19

24,218.97 19,512.83

30,377.29 12,081.96

$

449,358.41 $

16,614.67 $

1,123,974.76 $ ===9=22..,.4=5=0=.6=2

$

278,267.12 $

43,024.90

128,023.78

42.61

$

449,358.41 $

16,419.49 $ 195.18
16,614.67 $

294,686.61 $ 76,574.91
257,192.43 42.61

154,689.73 67,685.90 218,624.69 6,938.68

628,496.56 $ _ _..;.4.:.47:..z.,9:.:3:;.=:9.:.:.o""""o

$

24,218.97 $

30,377.29

19,512.83

12,081.96

$

o.oo $ _ _ _ _.;;;.o.;.;;;.o~o

451,746.40

432,052.37

$

0.00 $

0.00 $

495,478.20 $ _ _...;.4.;_74.;.,.,5;;.;1..;.1=6=-2

$

449,358.41 $

16,614.67 $

1,123,974.76 $ ===9=22..,.4=5=0=.6=2

- 17 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

80,368.00 $

804,605.63

823,237.85

272,757.41

$

1,176,363.26 $ _ _ _8_04....._,6_0_5_.6_3

$

654,256.16

114,787.02 3,611.32

$

1, 156,669.23

17,975.04 14,705.69
9,515.29 1,705.55

$

1,156,669.23 $ _ _ _8_16__._,5_5_6_.0_7

$

19,694.03 $ _ _ _-..;_11:.,.;,9:.;:5=0'-'-.44..;..

$

11,950.44

$ _ ___;..11.:.z.,.;:;.:95:.;:0c.:...4..;..;...4

$

19,694.03 $

0.00

474,511.62

0.00

-6,158.32 7,430.87

FUND BALANCE JUNE 30 See notes to the general purpose financial statements.
- 18 -

$

495,478.20 $ =====O=.O==O

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$

1,243,644.57 $

$

1,243,644.57 $

$
35,782.92 3,268.81
39,051.73 $

884,973.63 $ 2,102,665.34
276,026.22
3,263,665.19 $

824,428.72 2,012,127.03
266,668.95
3,103,224.70

$

1,001,171.69 $

40,035.92 144,283.16 23,041.63
9,633.26 530.68
17,257.59 7,690.64

$

1,243,644.57 $

$

0.00 $

15,562.74 $ 17,723.99
5,765.00
39,051.73 $ 0.00 $

1,670,990.59 $

1,366,700.03

172,546.93 147,894.48 23,041.63
9,633.26 18,505.72 37,728.28 17,205.93 1,158,374.78

153,055.07 284,409.25
21,026.87 9,112.95
33,348.01 39,667.19 15,266.12 1,109,594.78 14,610.00

3,255,921.60 $

3,046,790.27

7 743.59 $ _ _ _5:.:6:.i.,4.:..::3:..:.4~.4=-3

$

11,950.44

- - - - - - $ _ _ _ _-1:...,1.:..;.4~7

$

11,950.44 $ -------'-1_1_--'.4-'-7

$

0.00 $

0.00 $

19,694.03 $

56,422.96

0.00

0.00

474,511.62

414,435.41

-6, 158.32 7 430.87

6,897.00 -3,243.75

$

0.00 $

0.00 $

495,478.20 $ ===47=4;,i,;,5;;.;1=1=6=2

- 19 -

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

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

SPECIAL . PURPOSE LOCAL OPTION
SALES TAX

TOTALS
JUNE 30, 2000 JUNE 30, 1999

$ 700,000.00 $

118,395.49 $

818,395.49 $

5,000.00

283,738.09

283,738.09

Total Assets

$ 700,000.00 $

402,133.58 $ 1,102, 133_58 $ ===5=-'=oo=o=.o=o

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
FUND EQUITY
Fund Balances Reserved For Purposes of SPLOST Projects Unreserved Undesignated
Total Fund Equity

$ 1,592.48
$
$ 698,407.52 $ 698,407.52 $

$ _ _ _1~,5_9_2_.4_8

402,133.58 $ 0.00
402,133.58 $

402,133.58 698,407.52 $ _ __;5=,o::.::oa.::.o=.o=-o 1,1oo,541.1 o $ _ _ _5==ooc..ao....o..-'--o

Total Liabilities and Fund Equity

$ 700,000.00 $

402,133.58 $ 11102,133.58 $ ==-===5..,,,.,.oo=o=.o=o

See notes to the general purpose financial statements.

-20-

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

EXHIBIT "H"

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX


TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999

REVENUES
Taxes Other Funds
Total Revenues

$
$ ---""'0.'-"'00:::...

$

0.00 $

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 328,392.48 $ 7,500.00
$ 335,892.48 $
$ -335,892.48 $

OTHER FINANCING SOURCES Operating Transfers In

1,029,300.00

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 693,407.52 $

FUND BALANCE JULY 1

5,000.00

402, 133.58 $ 402,133.58 - - - - - $ _ _...:5:.,.;3:..:5:.::;6:...:.4.=...8
402,133.58 $ 402,133.58 $ _ _..,:5:.i;,3:..:5:.::;6:...:.4.=..8

0.00 $
0.00 $ 402, 133.58 $

328,392.48 $ 7,500.00
335,892.48 $
66,241.10 $

5,000.00 382,118.86
387,118.86
-381, 762.38

1,029,300.00

92,307.38

402,133.58 $ 1,095,541.10 $

0.00

5,000.00

-289,455.00 294,455.00

FUND BALANCE JUNE 30

$ 698,407.52 $

402,133.58 $ 1,100,541.10 $=======5=10..o...,o.==o=o



See notes to the general purpose financial statements.

- 21 -

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

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 National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Special Education Capacity Building Improvement Grant
Total Special Education Cluster
Other Programs Pass-Through From First District Regional Educational Service Agency d/bla Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Delinquent Project Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Title VII Immigrant Education Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

* 10.553 * 10.555

NIA $ NIA
$

10.550 10.558

NIA
NIA $

84.027 84.173
84.173

NIA $ NIA
NIA
$

84.011

NIA

84.010 84.010 84.281 84.298 84.340 84.162
84.048

NIA NIA NIA NIA NIA NIA
NIA $

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

177,391.97 568,418.00 $
745,809.97 $

(2)
1,087,391.15 (3)
1,087,391.15

69,278.08

69,278.08

8,149.80

(2)

823,237.85 $ _ __,_1,1..:.156=,6::.:6;.::;9::,23::..

205,889.14 $ 22,386.04
6,196.98
234,472.16 $

205,889.14 22,386.04
6,196.98
234,472.16

120,544.85

120,544.85

675,593.37 35,783.03
5,741.00
23,078.16 90,552.00
20,837.00

675,593.37 35,783.03
5,741.00
23,078.16 90,552.00
20,837.00

37,043.00

37,043.00

1,243,644.57 $ _._:,1..::,2:..:;43:::,,,::..64:::;;4:.:.::.5:.:..7

- 22-

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Pass-Through From Office of the Governor Children and Youth Coordinating Council OJJDP Formula Grant 98J-09-9804-0026

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.540

N/A $

35,782.92 $

39,051.73 (3)

Total Federal Financial Assistance

$

2,102,665.34 $ _...,.2._4_39,.,3_6_5._5-=3

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures 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 Toombs 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.

- 23-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Migrant Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Five Mill Share Educational Equalization Funding Grant Food Services Other State Programs At-Risk Summer School Program Extended Year - Agriculture Health Insurance Pay for Performance Program Preschool Handicapped Program Remedial Summer School Program Young Farmer Program Lottery Programs Assistive Technology Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
Revenue, Georgia Department of Homeowner's Tax Relief

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 5,444,134.00
1,500,667.00 357,792.00 245,467.00 72,242.00
1,569,041.00

$ 5,444,134.00
1,500,667.00 357,792.00 245,467.00 72,242.00
1,569,041.00

433,604.00 109,341.00 211,607.00 105,531.00 65,578.00 191,928.00 42,056.00 24,126.00 28,842.00 -847,789.00 1,006,715.00
$

80,368.00

433,604.00 109,341.00 211,607.00 105,531.00 65,578.00 191,928.00 42,056.00 24,126.00 28,842.00 -847,789.00 1,006,715.00 80,368.00

3,035.38 1,000.00 178,046.69 96,000.00 43,831.00 2,082.83 57,813.00

3,035.38 1,000.00 178,046.69 96,000.00 43,831.00 2,082.83 57,813.00

15,742.97 59,366.58

15,742.97 59,366.58

729,496.08

729,496.08

40,013.00

40,013.00

66,441.21 _ _ _ _ _

66,441.21

$ --- 1-1-,0-- 4-9,145--.-11-- $ 884,973.63 $ 11,934,118.74
See notes to the general purpose financial statements.
- 24-

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

SCHEDULE "3"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

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

$

7,709,788.00 $ _ _ _28;..4..:.;,3;.;.3..;.0'..;;..00,;_

$

7,964,077.97

539,653.70 $ _ _ _4_8-',9,.:..;,3;..;;.3..;;.;8';....19,;_

$

8,503,731.67

-71,425.59 $ _ _...;;8'-'-,4.;..;;3=2=,3.;;;.06.;;;.;.;.;;;.08;;..

$

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

See notes to the general purpose financial statements. - 25 -


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

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

628,364.00

$

565,527.60

1,537,528.00

1,383,775.20 $ _ _.:_16::.1:..,_7,:..:2:::8.:..:.0.::;0

$ 2, 165,892.00 90 $ 1,949,302.80 $

161,728.00

720,689.00 90

648,620.10

1,259,296.00 90

1,133,366.40

710,958.00 90

639,862.20

339,219.00 90

305,297.10

248,080.00 90

223,272.00

$ 5,444,134.00

$ 4,899,720.60 $ _ _1:..::6.:.,1,.:.,72:::8;:.:.0:.:..0

$ 1,426,039.00

$ 1,283,435.10 $

0.00

$ 1,426,039.00 90 $ 1,283,435.10 $

0.00

74,628.00 90

67,165.20

$ 1,500,667.00

s_ _ _ _ $ 1,350,600.30

..;;o.;.;;.o.c..o

$

357,792.00 90 $

s_ _ _ _ 322,012.so

..;;o.;.;;.o.c..o

$ 7,302,593.00

s_ _ $ 6,572,333.10

.;..;16'"'1""1, -=20::.s:..:.o.c...o

$

195,249.00 90 $

175,724.10 $

0.00

50,218.00 100

50,218.00

$

245,467.00

$

s_ _ _ _ 225,942.10

.::;o:::o::.o

Total Fourteen Weighted and Media Center Programs

$ 7,548,060.00

s___ $ 6,798,275.80

16_1_1, .2.s._o.o.

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

72,242.00

$

72,242.00 $

0.00

0.00

0.00

0.00

$

72,242.00 100 $

s_ _ _ 12,242.00

....;;:o~.o.o

See notes to the general purpose financial statements.

26

SCHEDULE 4

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

565,527.60 $

655,357.78 $

22,823.39 $

678,181.17

1,545,503.20

1,539,975.68

109,167.45

1,649,143.13

$ 2,111,030.80 $ 2,195,333.46 $

131,990.84 $ 2,327,324.30 $

0.00

648,620.10

831,836.59

61,031.11

892,867.70

0.00

1,133,366.40

1,276,769.72

91,789.70

1,368,559.42

0.00

639,862.20

926,800.81

86,318.65

1,013,119.46

0.00

305,297.10

404,989.59

23,110.16

428,099.75

0.00

223,272.00

285,729.47

69,083.18

354,812.65

0.00

$ 5,061,448.60 $ 5,921,459.64 $

463,323.64 $ 6,384,783.28

$ 1,283,435.10
$

27,317.19 $ 279,455.01 1,024,262.02 28,278.31
11,983.27

696.92 $ 3,923.53 8,367.12 3,296.79
380.92

28,014.11 283,378.54 1,032,629.14
31,575.10 12,364.19

$ 1,283,435.10 $ 1,371,295.80 $

16,665.28 $ 1,387,961.08

0.00

67,165.20

83,489.70

4,090.23

87,579.93

0.00

$ 1,350,600.30 $ 1,454,785.50 $

20,755.51 $ 1,475,541.01

$

322,012.80 $

321,255.75 $

5,259.04 $ _ __,3:::26.:;i.=..51:..;4;.7:..=-9

0.00

$ 6,734,061.70 $ 7,697,500.89 $

489,338.19 $ 8,186,839.08

$

175,724.10 $

266,577.08

$

266,5n.o8

0.00

50,218.00 - - - - - - $ _ _.::,50::.:,3::;,;1.::.5:::.5.;.1

50,315.51

0.00

$

225,942.10 $

266,577.08 $

50,315.51 $ _ ___:3;,.:.;16::..:,,8;;.;:9:::2.:::59=-

$ 6,960,003.80 $ 7,964,077.97 $

-----------= 539,653.70 $ 8,503,731.67 $

0.00

$

72,242.00

0.00

- - - - - $

72,242.00

$

72,518.97 $

72,518.97

0.00

0.00

$

72,518.97 $

12,518.97 s _ _ _ _ _ _ _o_.o_o

27

SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS


o f....Y

~..

. .,..,,

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-840()
January 22, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Toombs County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Toombs County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated January 22, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Toombs County Board of Education's financial statements are free of material misstatement, we perfo11ned tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the dete11nination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instane;es ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and perfo11ning our audit, we considered Toombs County Board ofEducation's internal control over financial reporting in order to dete1111ine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2000YB-40

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Toombs 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-7381-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the infu1mation and use ofmanagement, members of the Toombs County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb
2000YB-40

Ru sell W. Hinton State Auditor

W. RussELL

H1NTON

STATE AUDITOR

(404) 656-2174

of G

..

.1~-:.-
<f-'

.. .,

\:0,'-.

\ ' .

. .. .rt} ....r.,.... 177b

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingtcin Street, S.W.. Suite214 Atlanta, Gecirgia 30334-8400

January 22, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Toombs County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Toombs 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 ofits major Federal programs for tl1e year ended June 30, 2000. Toombs County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofToombs County Board ofEducation's management. Our responsibility is to express an opinion on Toombs County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo11n the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Toombs County Board of Education's compliance with those requirements and perfonning 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 dete1mination on Toombs County Board of Education's compliance with those requirements.
2000SA-40

In our opinion, the Toombs 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, 2000.
Internal Control Over Compliance
The management of Toombs 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 perfonning our audit, we considered Toombs 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.
We noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Toombs County Board of Education's ability to administer a m' ajor Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-7381-00-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of perfurrning their assigned functions. Our consideration of the internal control over compliance 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, we believe the reportable condition described above is not a material weakness.
This report is intended solely for the inforrnation and use of management, members of the Toombs County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:jb 2000SA-40

Rus ell W. Hinton State Auditor

SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

PRIOR YEAR FINANCIAL STATEME~T'f FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7381-98-01 FS-7381-98-02 FS-7381-99-01

Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Minimum Expenditure Requirements Amount: $2,326.83 Finding Control Number: FS-7381-98-01

These funds will be returned to the Georgia Departtnent of Education through an increase in the Board's local five mill share for QBE programs in a subsequent period.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7381-99-01

The Toombs County Board of Education does not have adequate staff available to create subsidiary records reflecting a General Fixed Asset Account Group. Records are not available to dete11ni11e when all land, buildings and equipment owned by the Board of Education were obtained and their acquisition cost. The Board chooses to accept this material weakness until staff availability and finances allow an undertaking of this magnitude or until the time comes where we are required to maintain General Fixed Assets.

SECTION IV FINDINGS AND QUESTIONED COSTS

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Toombs County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Toombs County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Toombs County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Toombs County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement.
Equipment and Real Property Management
The reportable condition described above is not considered to be a material weakness.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Toombs County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Toombs County Board of Education's audit disclosed an audit finding required to be reported by section .51 O(a) of0MB Circular A-133. This audit finding is included in section IV of this report.
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
8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00.
- 1-

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Toombs County Board ofEducation did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133.
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-7381-00-01
The Toombs County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fo11nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory 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.
Management's Response:
We concur with this recommendation. Due to current staffing limitations and budgeting considerations prohibiting the hiring ofadditional administrative staffthe Board has decided not to pursue the recording of general fixed assets on the financial statements.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Reportable Condition Nonmaterial Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-7381-00-01
Property management records maintained by the Board for the Child Nutrition Cluster (CFDA 10.553 and 10.555) were incomplete and failed to meet property management standards set forth in chapter 41, ofthe Financial Management for Georgia Local Units ofAdministration (FMGLUA), or as outlined in 7 CFR 3015.169. The equipment records as presented for audit failed to include
-2-

TOOMBS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
ID FEDERAL AWARD FINDINGS AND QUESTIONED COSTS EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Reportable Condition Nonmaterial Noncompliance U.S. Department of Agriculture Through Georgia Department of Education Finding Control Number: FA-7381-00-01 condition of equipment and ultimate disposition including the date and manner of disposal. The annual physical inventory count was not reconciled to the property records maintained at the Central Office to ensure the accuracy ofequipment records. These conditions occurred because management failed to maintain complete property management records and to ensure that physical inventory counts were properly perfo1n1ed and reconciled to property management records. An inventory system should be implemented that provides for complete inventory records and identification ofall equipment as outlined in Chapter 41, of the FMGLUA. An annual physical count should be perforrned and reconciled to the equipment records to ensure the accuracy of inventory records. Management's Response: We concur with this recommendation. An inventory system will be implemented to ensure that records are retained in accordance with Chapter 41, ofthe Financial Management for Georgia Local Units of Administration.
-3-