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AUDIT REPORT TREUTLEN COUNTY BOARD OF EDUCATION 
SOPERTON, GEORGIA YEAR ENDED JUNE 30, 1998 
 
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WASHINGTON STREET 
ATLANTA, GEORGIA 30334-8400 
 
 TREUTLEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXlllBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
3 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
4 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
5 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
16 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
17 
 
SCHEDULES 
 
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
18 
 
2 SCHEDULE OF STATE REVENUE 
 
20 
 
3 SCHEDULE OF EXPENDITURES 
 
LOTIERY PROGRAMS 
 
21 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
4 
 
OVERALL 
 
23 
 
5 
 
BY PROGRAM 
 
24 
 
 TREUTLEN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTIONll 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 WI1H GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WI1H REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WI1H OMB CIRCULAR A-I33 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 CLAUDE L. VICKERS 
STATE AUDllOR 
(404) 656-2174 
 
DEPARrMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
March 1, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe Treutlen County Board ofEducation 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general purpose fmancial statements of the Treutlen County Board of Education, as of and for the year ended June 30,. 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Treutlen County Board of Education's management. Our responsibility is to express an opinion on these general purpose fmancial statements based on our audit. 
Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the fmancial 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. 
Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000 Issues, requires disclosure of cet;tain matters regarding the year 2000 issue. Treutlen County Board of Education has included such disclosures in the significant commitments section ofthe Notes to the Financial Statements. Because ofthe unprecedented nature ofthe year 2000 issue, its effects and the success of related remediation efforts will not be fully determinable until year 2000 and thereafter. Accordingly, insufficient audit evidence exists to support Treutlen County Board ofEducation's disclosures with respect to the year 2000 issue made in the Notes to the Financial Statements. Further, we do not provide assurance that Treutlen County Board 
 
98ARL-13A 
 
 ofEducation is or will be year 2000 ready, that Treutlen County Board ofEducation's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Treutlen County Board of Education does business will be year 2000 ready. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
* The general purpose fmancial statements of the Board did not contain a General Fixed Assets 
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general purpose 
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries 
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general purpose financial statements ofthese variances or omissions have not been determined, but are believed to be material. ' 
In our opinion, except for the effects of such adjustments, if any, as might have been determined to be necessary had we been able to examine sufficient evidence regarding year 2000 disclosures as discussed in the third paragraph and except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose fmancial statements referred to above present fairly, in all material respects, the financial position of the Treutlen County Board of Education as of June 30, 1998, and the results ofits operations for the year then ended, in conformity with generally accepted accounting principles. 
In accordance with Government Auditing Standards, we have also issued our report dated March 1, 1999, on our consideration ofthe Treutlen 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. 
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Treutlen County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) 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-B3, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of 
98ARL-BA 
 
 additional 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 of such adjustments, if any, as might have been determined to be necessary had we been able to examine sufficient evidence regarding year 2000 disclosures as discussed in the third paragraph and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
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, 
~~~,.) 
Claude L. Vickers State Auditor 
CLV:jb 98ARL-13A 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
 TREUTlEN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET All FUND TYPES JUNE 30. 1998 
 
EXHIBIT "A" 
 
The notes to the general purpose financial statements are an integral part of this statement -2- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 3D, 1998 
 
EXHIBIT "B" 
 
The notes to the general purpose financial statements are an integral part of this statement. -3- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET ANP ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 1998 
 
EXHIBIT"C" 
 
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 Other Support Services Food Services Operation 
Capital Outlay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JULY 1.1997 
Adjustments 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 4,666,646.00 $ 4,866,141,60 
 
643,500.00 45,390.00 
 
640,696.95 56,414,28 
 
$ 5,355,536.00 $ 5,563,252.83 
 
$ 3,492,044.49 $ 3,684,430.59 
 
162,096.00 178,670.00 131,389.00 243,296.00 410,652.51 43,915,00 372,447.00 347,544.00 45,523.54 
80,000.00 
 
135,233.60 173,915.84 121,451.39 213,551.66 428,699.56 
54,326.58 447,532,42 346,683.46 
46,195.06 
30,089.82 
 
$ 5,507,5n.54 $ 5,682,109.98 
 
$ -152,041.54 $ -118,857.15 
 
152,822.29 
 
160,865.94 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 263,849.00 $ 302,698.98 
 
818,003.00 
 
953,633.53 
 
120,100.00 
 
132,700,33 
 
$ 1,201,952.00 $ 1,389,032.84 
 
$ 605,295.16 $ 665,157.66 
 
9,400.00 37,055,54 
 
28,452.26 84,934,02 
 
36,242,00 
 
36,058.67 
 
723.00 693,488.68 
 
11,193,20 12,727.67 2,125.98 6,202.82 539,923.52 
 
$ 1,382,204.38 $ 1,386,n5,80 
 
$ -180,252.38 $ 
 
2,257.04 
 
269,390.87 
 
247,643.23 
 
-18,282,04 
 
FUND BALANCE JUNE 30, 1998 
 
$ 
 
780.75 $ 
 
42,008.79 
 
$ 
 
70,856.45 $ 249,900.27 
 
The notes to the general purpose financial statements are an integral part of this statement -4- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
. REPORTING ENTITY 
The Treutlen County Board ofEducation (Board) was established under the laws ofthe 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 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 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 that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal gqvernment to accomplish specific educational objectives. 
 
-5- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 3D. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is detennined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (Le., revenues and other financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (Le., 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. 
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 Dep8rtment of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period begfuning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August. 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion ofthe compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30, 1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded'in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
RESTATEMENT OF PRIOR YEAR FUND BALANCE 
In prior years, the Board's deferred compensation plan, created in accordance with Internal Revenue Code Section 457, was reported as an agency fund. This agency fund had a fund balance of$273,96128 at June 30, 
-6- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
1997. For fiscal year 1998, the Board converted this plan to a trust in accordance with Federal law enacted on August 20, 1996. Since the Board does not have fiduciary accountability for the Section 457 plan, the assets of this plan will no longer be reported within the Board's financial statements. 
 
BUDGET 
 
The Treutlen County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. 
 
The Statement ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: 
 
FUND BALANCE JULY 1, 1997 
Adjustments Inventories - July 1, 1997 Food Donated Commodities Purchased Foods 
Fund Balance July 1, 1997 (Budget Basis) 
Excess ofRevenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JUNE 30, 1998 (Budget Basis) 
 
Special Revenue 
Fund $ 265,925.27 
-11,123.85 -7,158.19 
$ 247,643.23 
2,257.04 $ 249.900.27 
 
-7- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT liD" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 3D. 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized fmancial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered buildirig and loan associations. 
INVESTMENTS 
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase 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 and equity investments 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 institutioIla1 bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(l) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
(4) Obligations of any corporation of the United States government, 
(5) Prime banker's acceptances, 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obligations of other political subdivisions of the State of Georgia. 
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 
-8- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Treutlen County Board ofCommissioners fixed the property tax levy for the 1997 tax year (calendar year) on September 30, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Treutlen 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 1997 tax year (calendar year) for the Treutlen County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
l2.J.B. mills 
 
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 of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following type of interfund transactions: 
 
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
 
MEMORANDUM ONLY - TOTAL COLUMNS 
 
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position 
 
-9- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30,1998 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
or results of operations in confonmty 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications. 
 
DEFICIT FUND BALANCE 
 
The fund reporting a deficit fund balance position at June 30, 1998, is as follows: 
 
Fund Type/Fund Name 
 
Deficit Balance 
 
Governmental Fund Type General Fund 
 
$ 23,618.75 
 
In the subsequent period, the Board has budgeted .67 mill of additional local taxes for the purpose of deficit 
 
reduction. 
 
. 
 
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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value ofsecurities pledged shall be equal to notless than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
 
Acceptable security for deposits consists ofanyone ofor any combination ofthe 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 ofindebtedness or other direct obligations ofthe United States or of the State of Georgia, 
 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, 
 
- 10- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 2: DEPOSITS 
 
(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 of development authorities created by the laws of the State of Georgia, and 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $648,264.78. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1998, as follows: 
 
Risk Category 
 
Bank Balance 
 
1 
 
$ 100,000.00 
 
2 
 
548,264.78 
 
3 
 
0.00 
 
Total 
 
$ 648,264:78 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
 
- 11 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXlllBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
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; natmal disaster and unemployment compensation. 
 
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy exCludes coverage for sexual harassment and discrimination. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years. 
 
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to these risks in the past three years. 
 
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
1997 1998 
 
Beginning 
ofYear Liability 
 
Claims and Changes in Estimates 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
$ 
 
0.00 $ 
 
2,240.00 $ 
 
Claims Paid 
 
End ofYear Liability 
 
0.00 $ 
 
0.00 
 
2,240.00 $ 
 
0.00 
 
The Board has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent Food Service Director Each Principal 
 
$ 50,000.00 $ 15,000.00 $ 15,000.00 
 
Note 5: OPERATING LEASES 
 
Treutlen County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 1998, amounted to $26,700.87. Future minimum lease payments for these leases are as follows: 
 
- 12 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 5: OPERATING LEASES 
 
Year Ending 
 
Amount 
 
1999 2000 2001 
 
$ 25,692.00 23,890.80 11,044.80 
 
Total 
 
$ 60,627,60 
 
Note 6: ON-BEHALF PAYMENTS 
 
The Board has recognized revenues and expenditures in the amount of$109,852.78 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. 
 
Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$91,920.78 
 
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$17,932.00 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
At June 30, 1998, the Board had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result of shortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is of primary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. 
 
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000 Issue. 
 
Assessment Stage - The actual process of identifYing all of its systems and individual components of the systems to check for compliance. 
 
Remediation Stage - When changes are made to systems and equipment. 
 
.Validationffesting Stage - The process of ensuring that the changes made to systems and equipment 
 
will produce a year 2000 compliant system. 
 
. 
 
- 13- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 7: SIGNIFICANT COMMITMENTS 
 
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. 
 
The Board's financial accounting software (GENESIS) and hardware (Wang VS) is owned by the State (Georgia Department of Education). As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department ofEducation has remediated the Wang VS operating system and the updated system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department ofEducation has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards of education currently utilizing the GENESIS accounting software. 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall fmancial position. 
 
Note 9: RETmEMENTPLANS 
 
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 defmed benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE 
 
. 
 
Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross 
 
earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS 
 
Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required 
 
employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding 
 
two fiscal years are as follows: 
 
- 14- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 1998 
 
Note 9: RETIREMENT PLANS 
Fiscal Year 
1998 1997 1996 
 
Percentage Contributed 
100% 100% 100% 
 
Required Contribution 
$ 459,893.96 $ 441,978.32 $ 422,291.84 
 
- 15 - 
 
 See notes to the general purpose financial statements. 
 
-16 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
. SPECIAL REVENUE FUND 
YEAR ENDED JUNE 30. 1998 
 
EXHIBIT "F" 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30,1997 
 
REVENUES 
 
State Funds Federal Funds Other Funds 
 
$ 
 
39,826.00 $ 262,872.98 
 
$ 
 
302,698.98 $ 
 
300,291.77 
 
387,921.58 
 
$ 
 
565,711,95 
 
953,633.53 
 
793,030.83 
 
132,700.33 
 
132,700.33 
 
135,838,96 
 
Total Revenues 
 
$ 
 
560,447,91 $ 
 
262,872.98 $ 
 
565,711.95 $ 1,389,032.84 $ 1,229,161.56 
 
EXPENDITURES 
 
Current 
 
Instruction 
 
$ 
 
218,162,79 $ 
 
446,994.87 $ 
 
665,157.66 $ 
 
508,147,73 
 
Support Services 
 
Pupil services 
 
13,367.26 
 
15,085,00 
 
28,452.26 
 
39,671.04 
 
Improvement of Instructional Services 
 
2,484,54 
 
82,449.48 
 
84,934,02 
 
31,744,64 
 
General Administration 
 
2,487,00 
 
33,571.67 
 
36,058,67 
 
33,711.87 
 
Business Administration 
 
10,470,20 
 
723.00 
 
11,193.20 
 
10,670.45 
 
Maintenance and Operation of Plant 
 
12,727.67 
 
12,727.67 
 
14,239.80 
 
Student Transportation Services 
 
2,125.98 
 
2,125.98 
 
2,559.29 
 
Other Support Services 
 
52.34 
 
6,150:48 
 
6,202.82 
 
158.25 
 
Food Services Operation 
 
$ 538,928,32 
 
995.20 
 
539,923.52 
 
571,833.77 
 
Total Expenditures 
 
$ 
 
538,928.32 $ 
 
262,872.98 $ 
 
584,974,50 $ . 1,386,775.80 $ 1,212,736.84 
 
Excess of Revenues over (under) Expenditures $ 
 
21,519.59 $ 
 
0.00 $ 
 
-19,262.55 $ 
 
2,257.04 $ 
 
16,424.72 
 
FUND BALANCE JULY 1 
 
243,123.24 
 
0.00 
 
22,802.03 
 
265,925,27 
 
250,323.48 
 
Food Inventory - Net Change in Period Donated Commodities Purchased Food 
 
3,036.77 -1,882.40 
 
3,036.77 -1,882.40 
 
857.76 -1,680.69 
 
FUND BALANCE JUNE 30 
 
$ 
 
265.797.20 $ 
 
0.00 $ 
 
3,539.48 $ 
 
269,336.68 $ 
 
265.925.27 
 
see notes to the general purpose financial statements. 
 
-17- 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 1998 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agriculture, U, S. Department of Pass-Through from Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) Pass-Through from Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1998 Contrad 
 
,. 10.553 
* 10.555 10.550 
10.558 
 
N/A 
 
$ 
 
N/A N/A 
 
87,196.50 
262,004.55 $ 35,730.63 
 
(2) 
503,197.69 (3) 35,730.63 
 
N/A 
 
2,989.90 
 
(2) 
 
Total U, S. Department of Agriculture 
 
$ 
 
387,921.58 $ 
 
538,928.32 
 
Cooperation on National and Community Service Pass-Through from Georgia Department of Education Georgia Serve America Projed 1997 Grant 1998 Grant 
 
94.004 94.004 
 
N/A 
 
N/A 
 
$ 
 
$ 10,000.00 
 
4,415,54 10,000.00 
 
Total Cooperation on National and Community Service 
 
$ 
 
10,000.00 $ 
 
14,415.54 
 
Education, U.S. Department of Pass-Through from Georgia Department of Education Elementary and Secondary Education Ad Title I Grants to Local Educational Agencies 1998 Grant Title II Eisenhower Professional Development 1997 Grant 1998 Grant Title VI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grant 1997 Grant 1998 Grant Individuals with Disabilities Education Ad Part B  Special Education Flow Through 1998 Grant Preschool 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant 
 
84.010 84.281 84.281 84.298 
84.276 84.276 
84,027 84.173 
84.048 84,243 
 
N/A 
 
$ 
 
N/A N/A 
 
N/A 
 
265,243.00 $ 17,500,00 12,230.00 
 
265,243.00 
2,112.33 17,500.00 
12,230.00 
 
N/A 
 
16,274.16 
 
NlA 
 
128,750.00 
 
125,210.52 
 
N/A 
 
50,537,29 
 
50,537.29 
 
NlA 
 
8,983.66 
 
8,983.66 
 
N/A 
 
14,468.00 
 
14,468.00 
 
NlA 
 
38,000.00 
 
38,000.00 
 
Total U. S. Department of Education 
 
$ 
 
535.711 .95 $ 
 
550,558.96 
 
-18 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 1998 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
OTHER FEDERAL ASSISTANCE 
National Foundation on the Arts and the Humanities Pass-Through from Office of the Govemor Georgia Challenge Program 1998 Grant 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
$ . 20,000.00 $ 
 
2=0,=00;;.;;;0"-,,.0~0 
 
Total Federal Financial Assistance 
= N/A Not Available 
 
$ 
 
953,633.53 $ _ _1oiol..,1.2.3.,.9.0..2..8..2. 
 
(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 1998 National School Lunch Program. 
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. 
 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
 
The Board did not provide Federal Assistance to any Subrecipient. 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Treut/en 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. 
 
-19 - 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30.1998 
 
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 Costs 
 
Pupil Transportation 
 
Regular 
 
Bus Replacement 
 
Middle School Incentive Program 
 
Special Instructional Assistance 
 
In-School Suspension 
 
Migrant Mid-term Adjustment 
 
Counselors Grades 4 and 5 
 
Technology Training 
 
Local Fair Share 
 
Educational Equalization Funding Grant 
 
Food Services 
 
Vocational Education 
 
Other State Programs 
 
Ad Valorem Tax Adjustment 
 
Health Insurance 
 
Innovative Programs 
 
Preschool Handicapped Program 
 
Remedial Summer School Program 
 
Lottery Programs 
 
. 
 
Instructional Technology 
 
Assistive Technology 
 
Classroom Technology 
 
Office of School Readiness Pre-Kindergarten Program 
 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
OTHER Brewton Parker College Mentor Teacher Program 
 
Community Affairs, Georgia Department of Local Assistance Grant 
 
Georgia Southern University Mentor Teacher Program 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 2,698,632.00 285,417.00 124,613.00 109,846.00 32,578.00 748,700.00 
183,517.00 50,691.00 93,884.00 64,720.00 83,867.00 
554.00 10,161.00 28.842.00 -234,457.00 400.582.00 
$ 7,536.00 
15,563.00 91,920.78 5,000.00 17,013.00 2,679.82 
17,932.00 
 
$ 39.826.00 
 
2,698,632.00 285,417.00 124,613.00 109,846.00 32,578.00 748,700.00 
183,517.00 50,691.00 93,884.00 64,720.00 83.867.00 
554.00 10,161.00 28,842.00 -234,457.00 400,582.00 39,826.00 
7,536.00 
15,563.00 91,920.78 5,000.00 17,013.00 2,679.82 
 
4.195.00 53,000.00 
 
4,195.00 53,000.00 
 
205,677.98 
 
205.677.98 
 
17,932.00 
 
50.00 26,250.00 
50.00 
 
50.00 26,250.00 
50.00 
 
See notes to the general purpose financial statements. 
 
$ 4.866.141.60 $ -20 - 
 
302,698.98 $ 5,168,840.58 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30,1998 
 
SCHEDULE "3" 
 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation services Other Support Services Food Services Operation 
 
INSTRUCTIONAL TECHNOLOGY 
 
ASSISTIVE 
 
CLASSROOM 
 
TECHNOLOGY TECHNOLOGY 
 
PRE-KINDERGARTEN PROGRAM 
 
$ 
 
4,195.00 $ 
 
53,000.00 $ 
 
160,967.79 $ 
13,367.26 2,484.54 2,487.00 10,470.20 
12,727.67 2,125.98 52.34 995,20 
 
TOTAL 
218,162.79 
13,367,26 2,484.54 2,487.00 10,470,20 12,727.67 2,125,98 
52.34 995.20 
 
Total Expend~ures 
 
$ 
 
4,195.00 $ 
 
53,000,00 $ 
 
205,6n.98 $_....2..6.2.,8.7.2..,.9.8. 
 
RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Assistive Technology Instructional Technology Pre-Kindergarten Program 
 
$ 
 
173,635.42 
 
4,195.00 53,000.00 32,042.56 
 
$ 
 
262,872.98 
 
See notes to the general purpose financial statements. 
 
- 21 - 
 
 THIS PAGE LEFT BLANK 
 
 TREUTLEN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDEP JUNE 30. 1998 
 
SCHEDULE "4" 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
Salaries Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 3,218,508.00 $ _ _--==9:::J2,~384::::.:.:.0~0 
 
$ 3,305,376.86 229,357.27 $ _ _....:2:.::0:.:.J7,~57:....:1~.7.:::..5 
$ 3,534,734.13 
 
-9,331.01 $ 3,525,403.12 
 
$ 
 
0.00 $=====0=.0:=0 
 
See notes to the general purpose financial statements. - 23 - 
 
 TREUTLEN CQUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM 
GENERAl FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1998 
 
GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) 
Grades 6 - 8 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 III (*) Category N (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs 
REMEDIAL EDUCATION PROGRAM " Total Fourteen Weighted Programs 
MEDIA CENTER PROGRAMS salaries Operations Total Media Center Programs 
Total Fourteen Weighted and Media Center Programs 
 
ALLOTMENTS FROM DEPARTMENT OF EDUCATION 
 
REQUIRED 
 
ORIGINAL ~ 
 
ORIGINAL 
 
MID-TERM 
 
$ 
 
330,633.00 
 
$ 
 
297,569.70 $ 
 
0.00 
 
747,297.00 
 
672,567.30 
 
$ 1,On.930.oo 90 $ 
 
970,137.00 $ 
 
0.00 
 
302,858.00 90 
 
272,572.20 
 
566,319.00 90 
 
509,687.10 
 
375,352.00 90 
 
337,816.80 
 
184,142.00 90 
 
165,727.80 
 
192,031.00 90 
 
172,827.90 
 
$ 2,698,632.00 
 
$ 2,428,768.80 $ 
 
0.00 
 
$ 
 
278,276.00 
 
$ 
 
250,448.40 $ 
 
0.00 
 
$ 
 
278,276.00 90 $ 
 
250,448.40 $ 
 
0.00 
 
7,141.00 90 
 
6,426.90 
 
$ 
 
285,417.00 
 
$ 
 
256,875.30 $ 
 
0.00 
 
$ 
 
124.613.00 90 $ 
 
112,151.70 $ 
 
0.00 
 
$ 3,108,662.00 
 
$ 2,797,795.80 $ 
 
0.00 
 
$ 
 
89,545.00 90 $ 
 
80,590.50 $ 
 
0.00 
 
20,301.00 90 
 
18,270.90 . 
 
$ 
 
109,846.00 
 
$ 
 
98,661.40 $ 
 
0.00 
 
$ 3,218,508.00 
 
$ 2,896,657.20 $ 
 
0.00 
 
STAFFDEYELOPMENTPROGRAMS Cost of Instruction Professional Development 
Total Staff Development Programs 
r) Identifies Fourteen Weighted Programs. see notes to the general purpose financial statements. 
 
$ 
 
9,461.00 
 
23,117.00 
 
$ 
 
9,461.00 $ 
 
23,117.00 
 
$ 
 
32,578.00 100 $ 
 
32,578.00 $ 
 
0.00 0.00 
...0.0..0. 
 
- 24 - 
 
 SCHEDULE "5" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
297,569.70 $ 
 
271,442.90 $ 
 
20,930.96 $ 
 
292,373.86 
 
672,567.30 
 
670,375.66 
 
24,790.36 
 
695,166.02 
 
$ 
 
970,137.00 $ 
 
941,818.56 $ 
 
45,721.32 $ 
 
987,539.88 $ 
 
0.00 
 
272,572.20 
 
343,120.71 
 
23,nO.42 
 
366,891.13 
 
0.00 
 
509,687.10 
 
714,930.52 
 
45,790.50 
 
760,721.02 
 
0.00 
 
337,816.80 
 
428,050.95 
 
38,544.02 
 
466,594.97 
 
0.00 
 
165,727.80 
 
163,482.25 
 
10,320.71 
 
173,802.96 
 
0.00 
 
172,827.90 
 
187,505.02 
 
39,518.08 
 
227,023.10 
 
0.00 
 
$ 2,428,768.80 $ 2,n8,908.01 $ 
 
203,665.05 $ 2,982,573.06 
 
$ 
 
250,448.40 
 
$ 
 
2,474.16 
 
96,126.78 $ 
 
.185,700.13 
 
8,376.12 
 
$ 1,332.86 1,694.29 
 
2,474.16 97,459.64 187,394.42 8,376.12 
 
$ 
 
250,448.40 $ 
 
292,677.19 $ 
 
3,027.15 $ 
 
295,704.34 
 
0.00 
 
6,426.90 
 
13,076.08 
 
63.01 
 
13,139.09 
 
0.00 
 
$ 
 
256,875.30 $ 
 
305,753.27 $ 
 
3,090.16 $ 
 
308,843.43 
 
$ 
 
112,151.70 $ 
 
123,324.09 $ 
 
816.54 $ 
 
124,140.63 
 
0.00 
 
$ 2,797,795.80 $ 3,207,985.37 $ 
 
207,571.75 $ 3,415,557.12 
 
$ 
 
80,590.50 $ 
 
97,391.49 
 
$ 
 
97,391.49 
 
0.00 
 
18,270.90 
 
$ 
 
21,785.52 
 
21,785.52 
 
0.00 
 
$ 
 
98,861.40 $ 
 
97,391.49 $ 
 
21,785.52 $ 
 
119,177.01 
 
$ 2,896,657.20 $ 3,305,376.86 $ 
 
229,357.27 $ 3,534,734.13 $ 
 
0.00 
 
$ 
 
9,461.00 
 
23,117.00 
 
$ _ _.:;3=2,=57;,,;;8;;;;.0~0 
 
$ . 29,367.17 $ 3,210.83 
 
29,367.17 3,210.83 
 
$ 
 
32,578.00 $ 
 
32,578.00 $ _......_ _.....0...0.=0 
 
- 25 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 CLAUDE L. VICKERS 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
March 1, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education 
and Superintendent and Members ofthe Treutlen 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 ofTreutlen County Board ofEducation as of and for the year ended June 30, 1998, and have issued our report thereon dated March 1, 1999. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 
We were unable to examine sufficient audit evidence regarding year 2000 disclosures as required by Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000 Issues. This bulletin requires disclosure of certain matters regarding the year 2000 issue in order for fmancial statements to be prepared in conformity with generally accepted accounting principles. 
Compliance 
As part of obtaining reasonable assurance about whether Treutlen County Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and ~ts, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective 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. 
98YB-40 
 
 Internal Control Over Financial Reporting 
In planning and perfonning our audit, we considered Treutlen County Board of Education's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgement, could adversely affect Treutlen County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7401-98-01. 
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperfonning their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above, is considered to be a material weakness. 
This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which . is a matter of public record. 
Respectfully submitted, 
~~.;r:~ 
Claude 1. Vickers State Auditor 
CLV:jb 98YB-40 
 
 CLAUDE L. VICKERS 
STATE AUDIlOR 
(404) 65,6-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
March 1, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Treutlen County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Treutlen County Board of Education with the types of compliance requirements described in the Us. Office o/Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Treutlen County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Treutlen County Board of Education's management. Our responsibility is to express an opinion on Treutlen County Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits o/States, Local Governments, and Non-Profit Organizations. Those standards and OMB 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 Treutlen 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 Treutlen County Board ofEducation's compliance with those requirements. 
 
98SA-10 
 
 In our opinion, the Treutlen 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, 1998. 
Internal Control Over Compliance 
The management of Treutlen 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 Treutlen County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in orq,er to detennine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. 
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation 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 for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution ofthis report which is a matter ofpublic record. 
Respectfully submitted, 
~"4~~uJ 
Claude L. Vickers State Auditor 
CLV:jb 98SA-1O 
 
 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGSAND QUESTIONED COSTS 
 
 TREUTLEN COUNTY BOARD OF EDUCATION 
 
AUDITEE'S RESPONSE 
 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS 
 
YEAR ENDED JUNE 30, 1998 
 
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PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
7401-93-02 FS-7401-97-01 
 
Further Action Not Warranted Umesolved - See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7401-97-01 
 
Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of General Fixed Assets on the financial statements. When additional funds are available additional staff will be employed to correct this finding. 
 
 SECTION IV FINDINGS AND" QUESTIONED COSTS 
 
 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30. 1998 
I SUMMARY OF AUDITOR'S RESULTS 
I. Type ofReport Issued on the Financial Statements The auditor's opinion on the Treutlen County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 
2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Treutlen County Board of Education 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 Treutlen County Board ofEducation 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 Treutlen County Board of Education did not disclose any reportable conditions in internal control over major programs. 
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Treutlen 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 Treutlen County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
9. Low Risk Auditee The Treutlen County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. 
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 TREUTLEN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS 
YEAR ENDED JUNE 30, 1998 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-7401-98-01 The Treutlen 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 purposes 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, 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.. 
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