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

STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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WARREN COUNTY BOARD OF EDUCATION
WARRENTON, GEORGIA
REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000

Russell W. Hinton State Auditor

WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS -OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS



SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES



22

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

30

L

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

31

WARREN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES



.
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ANALYSIS OF

EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BY PROGRAM

Page
34 36 37
39
40

SECTION II

COMPLIANCE AND INTERNAL CONTROL REPORTS

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQU!REMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH

OMB CIRCULAR A-133



SECTION ill

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

S

Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS


SECTION I FINANCIAL


RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF'AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 10334-X400
June 1,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Warren County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Warren 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 Warren 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 auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our

OpInIOn.

As described in the notes to the general 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-13A

* 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 conform to generally accepted accounting principles.

* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.

The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.

In our opinion, except for the effects 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 Warren County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated June 1,

2001, on our consideration ofthe Warren County Board ofEducation's intemal control over financial

reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and

grants. That report is an integral part of an audit performed in accordance with Government

Auditing Standards and should be read in conjunction with this report in considering the results of

our audit. .

-


Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Warren County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole.



2000ARL-13A .

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,
W.
R sell W. Hinton State Auditor RWH:jb 2000ARL-13A














WARREN COUNTY BOARD OF EDUCATION







-






WARREN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

142,748.53 $

66,668.38

700,000.00

$ 8,484,044.34

71,640.82

392,720.69

5,030.84 2,442.44

Total Assets

$

914,389.35 $

466,862.35 $ _~8,484,044.34

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Funds Held for Others General Obligation Bonds Payable
Total Liabilities
FUND EqUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

288,100.68

$

103,414.32 $

14,688.26

55,283.26

10,720.32

75,000.00

$

103,414.32 $

80,691.84 $ _ _3~6~3:.r....!,1~0~0.~68~

$

87,634.28

3,981.24

$
719,359.51

5,030.84 2,442.44
$
378,697.23

8,053,675.66 67,268.00
-
0.00

$

810,975.03 $

386,170.51 $ _ _8~,~12~0~,94~3.~66~

Total Liabilities and Fund Equity

$

914,389.35 $

466,862.35 $ _.,;;;8,484,044.34

The notes to the general purpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES TRUST AND AGENCY FUNDS

$

191,850.94 $

34,359.03

553,841.38

20,000.00

92,345.64

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only./....)

_

JUNE 30, 2000

JUNE 30,1999

$

435,626.88 $

492,305.93

9,757,885.72

1,020,000.00

556,707.15

316,019.09

$

838,037.96

8,321,962.04

5,030.84 2,442.44 838,037.96
8,321,962.04

6,138.53 1,709.78 172,736.93
292,263.07

$

838,037.96 $

54,359.03 $ 9,160,000.00 $ 19,917,693.03 $ 2,301,173.33

$

32,671.31

-----$

$

32,671.31 $

$
9,160,000.00
9,160,000.00 $

288,100.68
118,102.58 $
55,283.26 10,720.32 75,000.00 32,671.31 9,160,000.00

117,266.34 66,517.33 45,040.73
28,709.93 465,000.00

9,739,878.15 $ _ _~72==2:.c:,5~34~.~33~

$

838,037.96

0.00 $ _ _~2::...!1~,6~8~7.~72!::...

$

838,037.96 $ _ _~2::...!1~,6~8~7.~72!::...

$

87,634.28

838,037.96 $

172,736.93

3,981.24

98,294.12

5.030.84 2,442.44 8,053,675.66 67,268.00
1,119,744.46
$ 10,177,814.88 $

6,138.53 1,709.78
880.84
1,298,878.80
1,578,639.00

$ _ _8;;;,;.38.,037.96 $

54,359.03 $ 9,160,000.00 $ 19,917,693.03 $ 2,301,173.33 -3-

WARREN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND
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

Community Services Operations

Capital Outlay

Debt Service

Principal

Interest

Paying Agent Fees

Total Expenditures

Excess of Revenues over (under) Expenditures

-


OTHER FINANCING SOURCES (USES)

Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value 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

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 4,036,574.59 $
1,567,776.95 231,708.41

243,506.88 887,709.40
49,786.70 $ _ _.:.:18:::::5~.4~2:::..:3.~69::.....

$

5,836,059.95 $

1,181,002.98 $ _ _.:.:18:::::5~,4~23:::..:.~69::.....

$ 3,778,633.61 $
90,033.33 301,640.14 140,604.35 234,964.84 500,732.38 106,025.76 441,597.79 363,083.55
5,351.00 260.00
109,610.19 24,115.02


570,379.48
47,934.59 58,279.52
866.04 35,305.41 2,239.00
$ 4,136.42
13,614.28 370,129.22

127,322.00 383,623.84

$

6,096,651.96 $

1,1 02,883.96 $ _ _5:::..1~0;.L:9:4':..:.::.:5.~84~

$

-260,592.01 $

78,119.02 $ _ _-3::::2~5:c,5:.::2::.:..2:.:15::...

$

-..;;;,3",-,7=84,;..;..1"",,6,-

$

-. ;;;,307.:~.,84.:.:.. 1.:.:6....

$

-264,376.17 $

1,075,351.20

$ 8,441,800.81 3,784.16

$ _-.;8::J,,4..:.;4.:.::5;.L:5::'::::84;.:.:.~97:.-

78,119.02 $ 308,426.52

8,120,062.82 880.84

-700.39 325.36

FUND BALANCE JUNE 30

$ _ _8..1-.0,975.03 $ _ _3..8-.6,170.51 $

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

8,120,943.66

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only,-)

_

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 4,280,081.47

887,709.40

$

391,691.21

1,959,468.16

13,804.59

480,723.39 $

$

405,495.80 $ 7,607,982.42 $

$
...:44..:.,4,:.:;.2::..1:-
444.21 $

4,280,081.47 $
887,709.40 1,959,468.16
481 ,167.60
7,608,426.63 $

4,312,733.22 1,039,266.08 1,644,239.01
320,875.53



$ 4,349,013.09 $

0.00 $ 4,349,013.09 $ 4,119,296.27

137,967.92

359,919.66

141,470.39

270,270.25

502,971.38

233,347.76



445,734.21

363,083.55

5,351.00

13,874.28



479,739.41 .

24,115.02

383,623.84

$

105,000.00

29,615.00

1,261.25

105,000.00 29,615.00 1,261.25

137,967.92 359,919.66 141,470.39 270,270.25 502,971.38 233,347.76 445,734.21 - 363,083.55
5,351.00 13,874.28 479,739.41 24,115.02 383,623.84
105,000.00 29,615.00 1,261.25

139,664.34 277,730.92 176,145.27 221,197.34 502,651.58
97,462.71 422,543.26 270,270.53
14,758.92 440,897.18
16,576.02
32,850.00 95,000.00 36,567.50
1,540.50

$-
$

135,876.25 $ 269,619.55 $

7,846,358.01 $ -238,375.59 $

0.00 $ 444.21 $

7,846,358.01 $ 6,865,152.34 -237,931 .38 $ _ _4.:.:;5:.:.1.19.:~:'61.:.:..5:::,:0:....

-

$

37,482.29. $

37,482.29

358,199.19

8,800,000.00 3,784.16 -3,784.16

$

395,681.48 $ 8,837,482.29

$

665,301.03 $ 8,599,106.70 $

172,736.93

1,557,395.49

-700.39 325.36

$

37,482.29

8,800,000.00 3,784.16 -3.784.16

$ 8,837,482.29


444.21 $
21,243.51

8,599,550.91 $
1,578,639.00

451,961.50 1,140,867.56

-700.39 325.36

-431.91 -13,758.15

$

838,037.96 $ 10,156,127.16 $

21,687.72 $ 10,177,814.88 $ 11578,639.00 -5-

WARREN CQUNTY BOAFID OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDIIURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GAAP BASIS} GENI;BAL AND SPECIAL BEVI;NUE FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "CO

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS),--_



SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 3,848,163.00 $ 4,036,574.59

93,000.00

1,501,999.66

1,567,776.95

100,000.00

231,708.41

$

330,478.70 $

1,069,281.50

243,506.88 887,709.40
49,786.70

Total Revenues

$ 5,543,162.66 $ 5,836,059.95

$ 1,399,760.20 $ 1,181,002,98

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 Community Services Operations

$ 3,539,320,98 $ 3,778,633.61

173,525.81 329,722.27 137,353.47 227,888.47 470,900.60 117,119.20 423,071.72 351,379.84
6,900.00 5,000,00 2,000.00 26,134.09

90,033.33 301,640.14 140,604.35 234,964,84 500,732.38 106,025.76 441,597.79 363,083.55
5,351.00 260.00
109,610.19 24,115.02

$

838,214.44 $

570,379.48

51,493.21 73,335.14 11,500.00 60,234.21
2,392.00

47,934.59 58,279.52
866,04 35,305.41
2,239.00

4,136.42

11,767.07 425,430.83

13,614.28 370,129.22

Total Expenditures

$ 5,810,316.45 $ 6,096,651.96

$ 1,474,366.90 $ 1,102,883.96

Excess of Revenues over (under) Expenditures

$ -267,153.79 $ -260,592.01

$

-74,606.70 $

78,119.02

OTHER FINANCING USES Other Uses

-
-3,784.16

Excess of Revenues over (under) Expenditures and



Other Financing Uses

$ -267,153.79 $ -264,376.17

$

-74,606.70 $

78,119.02

FUND BALANCE JULY 1. 1999

971,360.96

1,075,351.20

295,942.79

300,578.21

Adjustments

-8,843.09

-24,552.58

FUNp BALANCE JUNE 30. 2000

$

695,364.08 $

81. .0.,9.7..5._0.3 .

$

196?83.51 $

37,.8;,;,6_97;",0.2;;;3. .

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

WARREN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Warren 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 and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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 and the account group presented in this report are as follows:
.
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational
activities. Governmental Fund Types include: .
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
-8-

WARREN COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUND
Otis E. Williams Memorial Scholarship Fund - the fund used to account for the principal and
earnings which may be expended to provide scholarship awards to be made at the discretion of the Board.
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other fmancing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which:

- 9-

WARREN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

,
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofthe 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.

-
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Warren County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function an~ object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as

- 10-

WARREN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for th~ 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:

Special Revenue
Fund

FUND BALANCE JULY 1, 1999

$ 308,426.52

Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods
Fund Balance July 1, 1999 (Budget Basis)

-6,138.53 -1,709.78
$ 300,578.21

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

FUND BALANCE JUNE 30, 2000 (Budget Basis)

78,119.02
$ 378..227.23

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.

INVESTMENTS

COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and
money market investments with a maturity at purchase ofone year or less are reported at amortized

- 11 -

WARREN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(l) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the Uaited 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 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 Warren County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 30, 1999 (levy date). Taxes were due on January 14,2000. 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 Warren 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 oftaxes collected to the Board.

- 12-

WARREN COUNTY BOARD OF EDUCAnON

EXHIBIT liD"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Tax millage rates levied for the 1999 tax year (calendar year) for the Warren County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

14.98 mills 1.54 mills

16.52 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $230,786.68 and was recorded in the Debt Service Funds. The State will terminate collection ofthis tax once an additional $3,069,213.32 has been collected or on December 31, 2004, 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.


GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group.

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.

- 13-

WARREN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate 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 anyone of or any combination of the following:
(1) Suretybond 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 ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

- 14-


WARREN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

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

CATEGORIZATION OF DEPOSITS
At June 30, 2000, the bank balances were $1,323,654.79. The amounts ofthetotal 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, 2000, as follows:

Risk Category

Bank Balance

I
2

3

$ 397,537.19 926,117.60 0.00 -

Total

$ 1.323,654.79

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name.

- 15 -

WARREN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

At June 30, 2000, the carrying value of the Board's total investments was $9,035,669.96. The investments are classified as to risk categories as follows:

Type of Investment
U. S. Government Local Government
Investment Pools Total Investments

Risk Categories

I

2

3

Carrying Amount

Fair Value

$==~O~.O~Q $ 8,889,891.25 $==.==d!O~.QQ10 $ 8,889,891.25 $ 8,889,891.25

145,778.71

145,778.71

$ 9,035,669.96 $ 9,035,669.96

The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not
registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7like pool. The pool's primary objectives are safety ofcapital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1,00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S.
Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.

- 16-

WARREN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. 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 of the past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

1999 2000

Beginning

Clai-ms and

of Year

Changes in

Claims

End ofYear

-

Liability

Estimates

Paid

Liability



$

5.633.57 $

0.00 $

5,633.57 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

The Board participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program ofworkers' compensation self-insurance for its member organizations. The Board pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

- 17 -

WARREN COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

Position Covered

Amount

Superintendent Each Principal

$ 10,000.00 $ 10,000.00

Note 5: OPERATING LEASES

Warren County Board ofEducation has entered into various leases as lessee for portable classrooms. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2000, amounted to $21,444.16. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2001 2002

$ 16,997.28 1,416.44

Total

$ 18,413.72

Note 6: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING
as General Obligation Bonds currently outstanding are follows:

_ _ _ _~Purp~o~se::...-

_

Interest Rates

Amount

General Goyernment - Series 1988 General Government - Series 1999

5.40% - 7.30% 4.35% - 5.55%

$ 360,000.00 8,800,000.00

$ 9.}Q,OOO.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows:

- 18 -



WARREN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2000


Note 6: GENERAL LONG-TERM DEBT


General

Obligation



Bonds

Balance July 1, 1999

$ 465,000.00

Additions New Bonds Issued

Deductions Debt Retired

8,800,000.00 105,000.00

Balance June 30, 2000

$ 9,160,000.00

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004 2005 2006 - 2010

2011 - 2015 2016 - 2019


-

$ 769,233.96 703,597.50 869,312.50 751,662.50 777,102.50
3,993,057.50 4,060,197.50 3,007,180.00

Total Principal and Interest

$14,931,343.96

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $71,808.63 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 ofCommunity Health For Health Insurance ofNon-Certified Personnel In the amount of$51,539.83

- 19-

WARREN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $6,565.80

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 $13,703.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available:



Project

Unearned Executed Contracts

Funding Available From State

0I/00S-749-007

$ 225.000.00 $J2~Q.411.00

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

Note 9: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position.

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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 of Audits and Accounts.

- 20-

WARREN COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 10: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 420,459.99
$ 427,993.08
$ 415,636.22


- 21 -

WARREN 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
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

349,555.54

49,887.51 $

26,500.00

5,030.84 2,442.44

$

406,916.33 $ ==~2;;;;:6;,:,;;,5;,;;,0.;;.;0.~OO~

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 Undesignated
Total Fund Equity



$

25,829.37

$

2,061.36

670.63

18,684.46



$

20,745.82 $

26,500.00



$

$

5,030.84 2,442.44
378,697.23 $
386,170.51 $

=.;O.:.:;:.OO=_.
O~.=.;OO::...

Total Liabilities and Fund Equity
See notes to the general purpose financial statements. - 22-

$

406,916.33 $ ==:.:2;;.;;6*,5~0~0.~00;...

EXHIBIT "En

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

349,555.54 $

320,876.23

$

316,333.18

392,720.69

241,614.78

5,030.84 2,442.44

6,138.53 1,709.78

$

316,333.18 $

749,749.51 $ ==5=7=:0:1:0,3=39=',;0;32=

$

257,057.79 $

282,887.16 $

132,919.12

11,956.27

14,688.26

19,896.37

36,598.80

55,283.26

66,517.33

10,720.32

10,720.32

42,579.98







$

316,333.18 $

363,579.00 $

261,912.80

$

5,030.84 $

6,138.53

2,442.44

1,709.78

$

.::.:O.~OO:;..,.

378,697.23

300,578.21

$

0.00 $

386,170.51 $ _ _3;;.;:0:.::8J.:,4.=.26=.:,.5=.;:2:.-

$

316,333.18 $

749,749.51 $ ==5=:7:::;0:1::,3=39=:.=32=



- 23-

WARREN 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 School Administration Maintenance and Operation of Plant Other Support Services Food Services Operation

Total Expenditures

Excess of Revenues over (under) Expenditures

FUND BALANCE JULY 1

Food Inventory - Net Change in Period Donated Commodities Purchased Food

FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

28,890.00 $

194,911.88

369,571.54

49,786.70

$

448,248.24 $ _ _..:..:19::.::4~,9:....:.1..:..;1.~88~

$

153,687.39

37,088.07

4,136.42



$ _ _3::..:7:.;:0..z..:,1..=29::..:.=22=-

$

370,129.22 $ _ _~19:...:4.J..9::'..;.1~1.=88:::...

$

78,119.02 $

0.00

308,426.52

0.00

-700.39 325.36

$

386,170.51 $ ====;;;,;O.~OO~

See notes to the general purpose financial statements.

-

- 24-

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

19,705.00 $

243,506.88 $

232,324.21

518,137.86

887,709.40 . 1,039,266.08

49,786.70

54,286.78

$

537,842.86 $ 1,181,002.98 $ 1,325,877.07

$

416,692.09 $

570,379.48 $

600,353.28

10,846.52 58,279.52
866.04 35,305.41
2,239.00
13,614.28


47,934.59 58,279.52
866.04 35,305.41
2,239.00 4,136.42 13,614.28 3701129.22

45,813.93 32,054.79 16,072.74 59,577.64
22,371.52 14,758.92

381,094.48

$

537,842.86 $ 1,102,883.96 $ 1,172,097.30

$

0.00 $

78,119.02 $ - 153,779.77



0.00

308,426.52

168,836.81

-700.39 325.36

-431.91 -13,758.15

$

0.00 $

386,170.51 $ ==3==:8=14=26=.=52=




- 25-

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

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Investments

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30, 2000 JUNE 30,1999

$

77.66

$

77.66 $

880.84

8,053,598.00 $ _ _4....,3'-=0"-',4:..:.46::..:.:::..34.:....

8,484,044.34

Total Assets

$ 8,053,675.66 $

430,446.34 $ 8,484,122.00 $ ====::8;;;;8~0.=:;:;84;;,.,


LIABILITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft Contracts Payable

$

288,178.34 $

288,178.34

75,000.00

75,000.00

Total Liabilities FUND EQUITY

$

363,178.34 $ _-.:::..36:;.;:3"'"',1:.:..7,::.:8..:::..34.:....

Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 8,053,675.66 $

$ 8,053,675.66 $ .

67,268.00

67,268.00

880.84

0.00 _ _ _ _o::..:.:::;oo~

0.00

0.00

$ 8,053,675.66 $

67,268.00 $ 8,120,943.66 $ _ _~8~8~0.~84~

Total Liabilities and Fund Equity $ 8,053,675.66 $

430,446.34 $ 8,484,122.00 $ =-_......;;8;;;;8~0.~84;.,

See notes to the general purpose financial statements.

- 26-

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

EXHIBIT "H"

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30,1999

REVENUES

Other Funds Total Revenues

$ 185,423.69 $ $ 185,423.69 $

0.00 $ 0.00 $

185,423.69 $ 185,423.69 $

---""o.""-oo::....
---""O.~OO::....

EXPENDITURES

Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 127,322.00

$

$
303,958.84 79,665.00

127,322.00 $
303,958.84 79,665.00

$ 127,322.00 $

383,623.84 $ 510,945.84 $

$

58,101.69 $

-383,623.84 $ -325,522.15 $

0.00
---""O.~OO::....
0"".0:::,:0'-

OTHER FINANCING SOURCES (USES)

Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out

$ 8,441,800.81 $
-447,107.68

$ 450,891.84

8,441,800.81 450,891.84 -447,107.68

Total Other Financing Sources (Uses)

$ 7,994,693.13 $

450,891.84 $ 8,445,584.97

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing Uses $ 8,052,794.82 $

67,268.00 $ 8,120,062.82 $

0.00

FUND BALANCE JULY 1

880.84

0.00

880.84

880.84

FUND BALANCE JUNE 30



$ 8,053,675.66 $

6.7.,268.00 $ 8,120,943.66 $ _ _......8.8_0.;,;;8.4...



See notes to the general purpose financial statements.

- 27

WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

191,850.94

$

191,850.94 $

166,878.29

$

553,841.38

553,841.38

6,050.27

86,295.37

92,345.64

5,858.64

Total Assets

$

197,901.21 $

640,136.75 $

838,037.96 $ ==1..7...2.,!,;.,7,;;;,36"";;;,;93=

FUND EQUITY

Fund Balances

Reserved

For Debt Service

$

Unreserved

Undesignated

197,901.21 $
0.00

640,1.36.75 $
0.00

838,037.96 $
0.00

172,736.93 0.00

Total Fund Equity $

640,136.75 $

838,037.96 $ ==1,;.;,7,;;;2,;,7;"~36~.9~3~




See notes to the general purpose financial statements. - 28-

WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2000

EXHIBIT "J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$ 160,904.53 $ 230,786.68 $ 391,691.21 $ 154,290.87

13,804.59

13,804.59

Total Revenues

$

160,904.53 $

244,591.27 $

405,495.80 $ _--:.;154=,2~9~0'c:::.87:.....

EXPENDITURES



Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 105,000.00

$ 105,000.00 $

29,615.00

29,615.00

1,125.25 $ _ _----:1~36:::.:.~00~

1,261.25

95,000.00 36,567.50
1,540.50

$ 135l40.25 $

136.00 $

135,876.25 $ _--:.;13~3:....;,1~0~8.~00~

$

25,164.28 $

244,455.27 $

269,619.55 $ _--:2~1-,""1~8=:2.c:::.87:.....

OTHER FINANCING SOURCES
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value

$ - 37,482.29 $ 358,199.19

37,482.29 358,199.19

Total Other Financing Sources

$

395,681.48 $ _~39~5:c,6~8.:..:1.4:::8~

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

25,164.28 $

172l36.93

640,136.75 $ 0.00

665,301.03 $ 172,736.93

21,182.87 151 ,554.06


FUND BALANCE JUNE 30


$ - 197,901.21 $ _ _64;;;,,;,,;;,0,136.75 $


838,037.96 $ _-.:.:17,,:;,2,736.93





See notes to the general purpose financial statements.

29 -

WARREN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000

EXHIBIT "K"

ASSETS
Cash and Cash Equivalents Investments

EXPENDABLE TRUST FUND
OTIS E. WILLIAMS MEMORIAL SCHOLARSHIP
FUND

AGENCY FUNDS

TOTALS JUNE 30, 2000 JUNE 30, 1999

$

1,687.72 $

32,671.31 $

34,359.03 $

29,953.44

20,000.00

20,000.00

20,000.00

Total Assets

$

21,687.72 $

32,671.31 $

54,359.03 $ ==4=9=,9=5=3.4...4=

LIABILITIES AND FUND EQUITY

LIABILITIES

Funds Held for Others

$

FUND EQUITY

Fund Balances Unreserved Undesignated

$ _---=2:..:.1~,6::::.87:....:..7~2=-



32,671.31 $

32,671.31 $

28,709.93

0.00

21,687.72

Total Liabilities and Fund Equity

$

21,687.72 $

32,671.31 $

54,359.03 $ ===49:1,=95..3....4.4;",,;,.,



See notes to the general purpose financial statements.


- 30-

WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000

EXHIBIT "L"

CHRISTMAS CLUB
ASSETS Cash and Cash Equivalents

BALANCE JULY 1,1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

$=====2;;,;,1,915.40 $

34,152.20 $

35,697.60 $ ===..:2=0,370.00

LIABILITIES Funds Held for Others

$ =-.:2_1,915.40 $

34,152.20 $

35,697.60 $ ==..:2=0:,3,;,;70:;;;.0~0;,.

MILDRED E. FREEMAN ELEMENTARY SCHOOL

COKE AND CRACKER MACHINE

ASSETS Cash and Cash Equivalents

$ _ =...4..,737.66 $==.,..;;;2,201.66 $

957.85 $ ==-=5,981.47

LIABILITIES Funds Held for Others
INSURANCE ASSETS Cash and Cash Equivalents

$

4,737.66 $

2,201.66 $

957.85 $ ===-=5,..,9;;,81...4..7...

$

21.50 $

0.00 $

0.00 $

..:2;,;,1.,.50;;.,

LIABILITIES Funds Held for Others

$

21.50 $

0.00 $

0.00 $

..:;2;,:,1.,.5.0..

KINDERGARTEN GRADUATION
ASSETS Cash and Cash Equivalents

$

756.52 $

1,211.63 $

1,189.02 $

7.7.9_..1..3...

LIABILITIES Funds Held for Others

$

756.52 $ _ _....1.,211.63 $ _ _....1.,189.02 $

7,;,,;79:;;;,.1_3;.,

MEMORIAL FUND
ASSETS Cash and Cash Equivalents

$

0.00 $

741.50 $

741.50 $

p;;;,.O:,;O;.,

LIABILITIES Funds Held for Others

$

0.00 $

741.50 $

741.50 $

.......0,..0.0..

31

WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000

EXHIBIT "L"

BALANCE JULY1,1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 3D, 2000

MILDRED E, FREEMAN ELEMENTARY SCHOOL

PAPER AND PENCIL FUND

ASSETS Cash and Cash Equivalents

$

4,119.24 $ ~_....1.,772.33 $

1,196.63 $ ===4..,.6..9.4=,=94=

LIABILITIES Funds Held for Others
PARTNERSHIP IN EDUCATION ASSETS Cash and Cash Equivalents

$.

4,119.24 $ _ _..:.1,772.33 $



$

0.00 $

1,995.60 $

963.25 $ ~_..",;,1=;:,O~32;;;;.3;,;5;.,

LIABILITIES Funds Held for Others

$

0.00 $

1,995.60 $

963.25 $ _ _....:.1,032.35

SPECIAL OLYMPICS FUND ASSETS Cash and Cash Equivalents
LIABILITIES Funds Held for Others
SPIRIT COMMITTEE . ASSETS Cash and Cash Equivalents

$
$
-

3.21 $

3.21 $

0.00 $ 0.00 $

$

0.00 $

261.50 $

0.00 $

3...2;;,;1...

0.00 $

.....3...;;;,21...

72.60 $

1.-88_..9.0...

LIABILITIES Funds Held for Others

$

0.00 $

261.50 $

72.60 $

.:1~88~.90~

WARREN COUNTY HIGH SCHOOL

FUTURE BUSINESS LEADERS OF AMERICA

ASSETS

Cash and Cash Equivalents

$

LIABILITIES

Funds Held for Others

$

-.2.,999.02 $ -2,999.02 $
- 32-

9,085.57 $

9,085.57 $

8,456.04 $

-,;;,2,369.49

8,456.04 $

-,;;,2,369.49

WARREN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2000

EXHIBIT "L"

WARREN COUNTY HIGH SCHOOL
FUTURE FARMERS OF AMERICA
ASSETS Cash and Cash Equivalents

BALANCE JULY1,1999

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2000

$

-269.09 $

10,138.80 $

9,277.20 $ _ _.-..;5;:;;:9:;;;2.,:;:,51:."

LIABILITIES Funds Held for Others
FUTURE HOMEMAKERS OF AMERICA ASSETS Cash and Cash Equivalents

$

-269.09 $

10,138.80 $

9,277.20 $ ~_~..:;:5:;;,:92:;,;;.5;;;.:1:..



$

481.66 $

0.00 $

0.00 $ =

.,;;;4,:;:.81;";;.6;;,;;6;,,

LIABILITIES Funds Held for Others

$

481.66 $

0.00 $

0.00 $ =_=.,;;;4~81:,;,;.6;;,;;6:..

YEARBOOKS
ASSETS Cash and Cash Equivalents

$

-57.15 $

8,083.64 $ _ _....7.,900.43 $

.:1~26:;:;;.06~

LIABILITIES Funds Held for Others
-
GENERAL ATHLETIC
ASSETS Cash and Cash Equivalents

$

-57.15 $ _ _..,:;:,8,083.64 $ _ _...7..,900.43 $

..:.12~6;:;,:.06~

-

$

0.00 $ _ _,,:i;2,981.00 $

2,211.93 $

..:.7~69::;;.0~7_

LIABILITIES Funds Held for Others
TOTALS-AGENCY FUNDS ASSETS
Cash and Cash Equivalents

$

0.00 $

2,981.00 $

2,211.93 $

.:.;76:;:;9i:;:.0~7_



$ _ _.:2~8,709.93 $ _ _..:.7,;;,2,625.43 $ _ _.:6;;,:,8,664.05 $ _ _,,:;:3~2,671.31

LIABILITIES Funds Held for Others

$

28,709.93 $ _ _..:7:.:;2,625.43 $ _ _.:6;;,:,8,664.05 $ _ _..;;3~2,671.31

see notes to the general purpose financial statements.

- 33

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

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

10.553 10.555

N/A $

92.873.28

N/A

269,417.34 $

(2)
362.848.30 (3)

Total Child Nutrition Cluster

$ 362.290.62 $

362,848.30

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of AgriCUlture

10.550

N/A

7,280.92

7.280.92



$

369,571.54 $ _ _~37.;...:0",-1..:.::;2~9;;;;.2=-2

Corporation for National and Community Service Pass-Through From Georgia Department of Education Leam and Serve America School and Community Based Programs

94.004

N/A $

12,000.00 $ _ _......:.:12::..:.oo=0:.:::.0~0

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
Total Special Education Cluster

84.027 84.173


NlA $
NlA
$

41.068.60 $ 33,997.00
75,065.60 $

41.068.60 33.997.00
75.065.60

Other Programs

Pass-Through From Georgia Department of Education -

Elementary and Secondary Education Act

-

Title I

Grants to Lotsl Educational Agencies

Title II

Eisenhower Professional Development

Title III

Technology Literacy Challenge Grant

Title VI

Innovative Education Program Strategies

Class Size Reduction

Goals 2000

State and Local Education Systemic Improvement Grants

Safe and Drug-Free Schools and Communities

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.010 84.281
84.318
84.298
84.340
84.276 84.186
84.048

Total U. S.Department of Education

NlA

227.622.75

227.622.75



NlA

15,352.16

15.352.16

NlA

75,000.00

75.000.00

NlA

9.625.72

9,625.72

NlA

35,460.17

35.460.17

NlA

40.751.83

40.751.83

NlA

4.366.63

4,366.63

NlA
$

22.893.00

22,893.00

506,137.86 $ _ _..::;50~6::..1:.:3:.:..7:.:::.8~6

Total Federal Financial Assistance
N/A = Not Available

$ _..:8~8:.:.7!709.40 $ _ _.::8::;88;;,;:.2~6:.:.7;.::.0;;:.8

- 34

WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3D. 2000
Notes to the Schegule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 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 (0) 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 Warren County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.

SCHEDULE "1"




See notes to the general purpose financial statements.

- 35-

WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2000


SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

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

Sparsity Grant

Special Instructional Assistance

In-School Suspension

Counselors

Technology Specialist

Local Five Mill Share

Educational Equalization Formula

Food Services

Other State Programs

Apprenticeship Program

At-Risk Summer School Program

Health Insurance

Preschool Handicapped Program

Remedial Summer School

Teachers'Retirement

Year 2000 Project Funding

Lottery Programs

-

Computers in the Classroom

Human Resources, Georgia Department of Second Step Violence Prevention Program

$ 2,158,343.00 496,536.00 110,890.00 95,918.00 27,029.00 618,355.00
154,516.00 52,328.00 147,873.00
215,395.00 33,240.00 9,967.00 28,842.00
-573,850.00
2-76,078.00 $
197.50 6,647.11 51,539.83 8,876.00 2,357.48 6,565.80 2,558.00
2,669.87

$
28,890.00 53,000.00

Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

13,703.00

141,911.88

CONTRACTS Education, Georgia Department of To provide funding for quality after school programs


90,000.00

To provide funds to local schools for the Reading First Program

19,705.00

TOTAL
2,158,343.00 496,536.00 110,890.00 95,918.00 27,029.00 618,355.00
154,516.00 52,328.00
147,873.00 215,395.00
33,240.00 9,967.00
28,842.00 -573,850.00 276,078.00
28,890.00
197.50 6,647.11 51,539.83 8,876.00 2,357.48 6,565.80 2,558.00
53,000.00
-
2,669.87
141,911.88
13,703.00
90,000.00
19,705.00

$ 4,036,574.59 $

243,506.88 $ =..;;4~,2;:;8~0~,O::;:,8.:=1.~47~

See notes to the general purpose financial statements.

- 36-

WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2000

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

Acquiring land, constructing, and

equipping a new middle/high school

for Warren County and capitalizing

interest through October 1, 2000

$

3,300,000.00 $

9,864,479.81 $

383,623.84 $ ====,;;;O';';;'OO~

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option

Sales Tax.
(2) The Board's current estimate of total cost for the project. Includes all cost from project inception to completion.
(3) The voters of Warren County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

See notes to the general purpose financial statements.

37 -

WARREN COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REqUIREMENTS - OVERALL
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

2,861 ,687.00 $ _ _---.:8::2:.t.:9,::.::8.::.;9.:;:.00.=..

$

3,132,320.62

204,847.78 $ _ _~18::2:.!.-',4:...:.4...:..;.:1;:.3.:....1

$

3,337,168.40

-43,009.88
$ _ _...::;3.=,2:::,.94.:.l.'1.:.,;:5:.:8,;:;.5=-2

Amount of Underexpenditure for Total Allotment

$


0.00 $ ====~O'';;'OO=

-


See notes to the general purpose financial statements. - 39 -

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

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

$

229,373.00

$

206,435.70 $

649,445.00

584,500.50

$

878,818.00 90 $

790,936.20 $

297,620.00 90

267.858.00

499,555.00 90

449,599.50

250,936.00 90

225,842.40

96,430.00 90

86,787.00

134,984.00 90

121,485.60

$ 2,158,343.00

$ 1,942,508.70 $

0.00 0.00
.:::.0.c:::0.::,.0

SPECIAL EDUCATION PROGRAMS
Regular Programs Category II (*) Category 11\ (*) Category IV (*)
Total Special Education Programs
REMEDIAL EDUCATION PROGRAM <:1
Total Fourteen Weighted Programs

$

496,536.00

$

446,882.40 $

0.00

$

496,536.00 90 $

446,882.40 $

$

110,890.00 90 $

99,801.00 $

$ 2,765,769.00

$ 2,489,192.10 $

~O:,:,:,O~O ..:::O~.O;::..O ..:::O~.O;::..O

MEDIA CENTER PROGRAMS

Salaries

$

Operations

Total Media Center Programs

$

Total-Fourteen Weighted and Media Center Programs $

76,691.00 90 $ 19,227.00 100

95,918.00

$

2,861,687.00

$

69,021.90 $ 19,227.00
88,248.90 $

0.00 --:0:.:.:.0;.::..0


2,577,441.00 $ ===:=:;0...0.==0

STAFF DEVELO~MENTPROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

8,769.00

18,260.00

$

8,769.00 $

18,260.00

0.00 0.00

$

27,029.00 100 $

27,029.00 $=====,,0...0.=0

See notes to the general purpose financial statements.

- 40

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

206,435.70 $

171,037.65 $

4,242.10 $

175,279.75

584.500.50

654,562.84

16,560.20

671,123.04

$

790.936.20 $

825,600.49 $

20,802.30 $

846,402.79 $

0.00

267,858.00

371,280.94

12,014.07

383,295.01

0.00

449,599.50

580,236.71

47,691.46

627,928.17

0.00

225,842.40

404,263.88

38,952.12

443,216.00

0.00

86,787.00

112,687.93

1,775.40

114,463.33

0.00

121,485.60

158,595.44

31,554.15

190,149.59

0.00

$ 1,942,508.70 $ 2,452,665.39 $

152,789.50 $ 2,605,454.89

$

446,882.40

$

226,022.52 $ 256,137.77

4,439.99 $ 686.10
5,434.70

230,462.51 256,823.87
5,434.70

$

446,882.40 $

482,160.29 $

10,560.79 $ _ _4~9~2::.:7,~2;.:.1;:::.0.:::,.8

0.00

$

99,801.00 $

80,973.53 $

19,091 .02 $ _ _.:.:1O::;:O~0,::;:6:::,4.;:::5.:::,.5

0.00

$ 2,489,192.10 $ 3,015,799.21 $

182,441.31 $ 3,198,240.52

$

69,021.90 $

116,521.41

$

116,521.41

19,227.00 _ _ _ _ _ _ $ _ _=22t..(,4~0::::6.:::.4~7

22,406.47

$

88,248.90 $

116,521.41 $

22,406.47 $ _ _..:.:13::;:89~~,2c:..7;:::.8.:::,.8

0.00 0.00



$ 2,577,441.00 $ 3,132,320.62 $

204,847.78 $ 3,337,168.40 $ .....= =.....==.;;;O,;;;:.O~O

$

8,769.00

18,260.00

$ ==,;2.;,;7,=02;,;;9;;,;.0=0

$

44,051.52 $

44.051.52

3,742.35

3,742.35

$

47,793.87 $

47,793.87 $ .....=====,;;,0;,;;;.0,;,;,0

- 41 -




SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS








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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia ~03~4-X400
June 1,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Warren 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 Warren County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated June 1,2001. 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 auditing standards generally accepted in the United States of America 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 Warren County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed an instance ofnoncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7491-00-01 .


2000YB-60A

Internal Control Over Financial Reporting

In planning and perfonning our audit, we considered Warren 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 certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 Warren County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule'ofFindings and Questioned Costs as items FS-7491-00-01, FS-7491-00-02 and FS-7491-00-04.

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 nonnal course of perfonning their assigned functions. Our consideration ofthe 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, ofthe reportable conditions described above, we consider items FS-7491-0001 and FS-7491-00-04 to be material weaknesses.

This report is intended solely for the infonnationand use ofmanagement, members ofthe Warren 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,

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Russell W. Hinton State Auditor

RWH:jb 2000YB-60A



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

..........~.. .' /77b
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Stn:el. S.W.. Suite 214 Atlanta. Georgia :l03:14-X400
June 1,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Warren County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofWarren County Board ofEducation with the types ofcompliance
requirements described in the u.s. Office of Management and Budget (OMB) Circular A-i33
Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Warren 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 ofWarren County Board ofEducation's management. Our responsibility is to express an opinion on Warren County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of 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 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 Warren 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 Warren County Board of Education's compliance with those requirements.

2000SA-30A

In our opinion, the Warren County Board ofEducation 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 Warren County Board of Education is responsible for establishing and

maintaining effective internal control over compliance with requirements of laws, regulations,

contracts and grants applicable to Federal programs. In planning and performing our audit, we



considered Warren 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 ofexpressing our opinion on compliance and to test and report

on internal control over compliance in accordance with OMB Circular A-133.

We noted certain matters involving the internal control over compliance and its operation that we consider to be reportable conditions. 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 Warren County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FA-7491-00-01, FA-7491-:00-02, FA-7491-00-03 andFA-7491-0004.

A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with 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 performing 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 none of the reportable conditions described above is a material weakness.

This report is intended solely for the information and use ofmanagement, members ofthe Warren 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,

uJ.
Russell W. Hinton State Auditor


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RWH:jb



2000SA-30A



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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
FINDING CONTROL NUMBER AND STATUS

7491-93-03 7491-95-02 FS-7491-97-01 FS-7491-98-01 FS-7491-98-02 FS-7491-98-04 FS-7491-99-01 FS-7491-99-02

Unresolved - See Corrective Action/Responses Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses

Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $3,981.24 Finding Control Number: 7491-93-03

This finding will be resolved by the Georgia Department of Education through a future increase in the Board's local five mill share portion of the QBE Allotment.

EMPLOYEE COMPENSATION Payroll Reporting Amount: $3,143.84 Finding Control Number: FS-7491-98-01




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All efforts are being made to prevent this type of error from happening again.

GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-7491-99-01

All journal entries will be kept in a notebook and verified by the Superintendent.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7491-99-02

Weare in the process of looking for a company to come in and do this service.




SECTION IV FINDINGS AND QUESTIONED COSTS

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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Warren County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Warren County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents Revenues/Receivables/Receipts General Fixed Assets

Expenditures/Liabilities/Disbursements General Ledger

All ofthe reportable conditions described above include conditions that are considered to be

material weaknesses.

.

3. Noncompliance Material to the Financial Statements The audit of the Warren County Board of Education disclosed one instance of noncompliance deemed material to the financial statements. This noncompliance involved the Board's failure to record the 1999 bond issue activity and the Special Purpose Local Option Sales Tax activity in the Board's financial statements.

4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the Warren County Board ofEducation disclosed reportable conditions in internal control over major programs for the following compliance requirements.

Activities Allowed or Unallowed Cash Management Special Tests and Provisions

Allowable Costs/Cost Principles Reporting

None ofthe reportable conditions described above are considered to be material weaknesses.

5. TYPe of Report Issued on Compliance for Major Programs The auditor's opinion on the Warren County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .510W ofOMB Circular A-B3 The Warren County Board of Education's audit disclosed audit findings required to be reported by section .510(a) ofOMB Circular A-B3. These audit findings are included in section IV of this report.

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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000


I SUMMARY OF AUDITOR'S RESULTS

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

84.318 Elementary and Secondary Education Act - Title ill - Technology Literacy

Challenge Grant .

84.340 Elementary and Secondary Education Act - Title VI - Class Size Reduction


8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee The Warren County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUNALENTS

REVENUES/RECENABLES/RECEIPTS

EXPENDITURESILIABILITIESIDISBURSEMENTS

GENERAL LEDGER

.

Failure to Record Bond Issue and SPLOST activity

Reportable Condition - Material Weakness

Material Noncompliance

Finding Control Number: FS-7491-00-01 -



The Board's failure to follow Chapter 7 of the Financial Management for Georgia Local Units of Administration (FMGLUA) resulted in the following deficiencies in the general ledger process:

(1) The proceeds and associated expenditures ofthe 1999 bond issue were not recorded in the Board's general ledger as required by generally accepted accounting principles. An audit adjustment was necessary to record bond proceeds of $8,441,800.81 and bond issue expenditures of$127,322.00 in the Bond Proceeds Fund. An additional audit adjustment was necessary to record bond proceeds of$358,199.19 and accrued interest of$37,482.29 in the Debt Service Fund.

(2) The expenditures ofthe 1999 bond issue project were not recorded in the Board's general ledger as required by generally accepted accounting principles. An audit adjustment was necessary to record expenditures of $15,000.00' in the Georgia State Financing and Investment Commission Project No. 01/00S-749-007.

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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUNALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURESILIABILITIESIDISBURSEMENTS GENERAL LEDGER Failure to Record Bond Issue and SPLOST activity Reportable Condition - Material Weakness Material Noncompliance Finding Control Number: FS-749l-00-0l

(3) The proceeds (Revenues) ofthe Special Purpose Local Option Sales Tax project were not recorded in the Board's general ledger as required by generally accepted accounting principles. An audit adjustment was necessary to record revenue of $230,786.68 in the Debt Service Fund.

These conditions occurred because management claimed noUo be aware that these activities should be recorded in the Board's general ledger. Appropriate- action should be taken by the Board to establish accounting controls and procedures to ensure that all financial activity is properly recorded in the general ledger as required.

GENERAL LEDGER

Inadequate Internal Control Procedures

Reportable Condition

Repeated From Prior Year

.

Finding Control Number: FS-749l-00-02



A review ofthe Board's internal control policies and procedures noted deficiencies in providing for adequate internal control in the separation of duties as noted below:

* Journal entry documentation and written explanations could not be provided by the Board.

* Journal entries were not reviewed and approved by someone independent of the general
ledger journal entry function.

These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions and their failure to institute proper controls over these areas. The Board should review the accounting procedures in place, design procedures which would enhance segregation ofduties and proper internal controls relative to the above control category and implement those procedures to strengthen the internal control over the accounting functions.

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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

GENERAL LEDGER Failure to Transfer Local Matching Funds Nonmaterial Noncompliance Finding Control Number: FS-7491-00-03

The Warren County Board of Education received approval for State capital outlay project funding, through Georgia State Financing and Investment Commission. Both the instructions in Chapter 41 of the Financial Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the Warren County Board of Education to receive this funding require that the Warren County Board of Education transfer required local matching funds to the Capital Projects Fund by June 30, 2000, and designate those funds by project name and number. This transfer was not made by the Warren County Board of Education at June 30, 2000. This condition occurred because management claimed not to be aware of the provisions ofFMGLUA. A correcting audit adjustment was necessary to transfer $142,268.00 from the Bond Proceeds Fund to GSFIC Project No. 01/00S-749-007 as required.

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

Reportable Condition - Material Weakness

Repeated From Prior Year

Finding Control Number: FS-7491-00-04



The Warren County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriat~ 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.


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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

ACTIVITIES ALLOWEDIUNALLOWED ALLOWABLE COST/COST PRINCIPLES Inadequate Internal Control Procedures Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-00-01

A review ofthe Board's policies and procedures noted deficiencies in providing for adequate internal control over the Elementary and Secondary Education Act - Title VI - Class Size Reduction Grant (CFDA 84.340). A test of expenditures revealed that the "Official" knowledgeable of allowable activities and costs for the program did not approve expenditures as required by the Office of Management and Budget Circular A-87 and A-133 Compliance Supplement. This deficiency resulted in expenditures in the amount of $5,792.83 being charged to the program that were not allowable activities or costs. On June 1,2001 these unallowable costs were refunded to the Georgia Department of Education. This condition was a result of management's failure to implement adequate internal controls for monitoring compliance with Federal guidelines. The Board should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and proper internal controls relative to the above Federal compliance requirement and implement those procedures to strengthen the internal control . over Federal programs.

CASH MANAGEMENT Inadequate Internal Control Procedures . Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-00-02




A review ofthe Board's policies and procedures noted deficiencies in providing for adequate internal controls over Cash Management as noted below:

* Review ofcash management procedures for the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund Grant (CFDA 84.318) disclosed that cash draws were not made based on immediate cash needs, resulting in a loss of approved Federal funding in the amount of $50,000.00.
.
* Review ofcash management procedures for the Elementary and Secondary Education Act
- Title VI - Class Size Reduction Grant (CFDA 84.340) disclosed that cash draws were made in advance ofimmediate cash needs, resulting in the accumulation ofexcessive cash balances for eleven months.

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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

CASH MANAGEMENT Inadequate Internal Control Procedures Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-00-02

These conditions were a result ofmanagement's failure to implement internal controls for monitoring compliance with Federal guidelines. The Board should review the Federal compliance procedures in place, design procedures which would enhance monitoring compliance with Federal guidelines and proper internal controls relative to the above Federal compliance requirement and implement those procedures to strengthen the internal control over Federal programs.

REPORTING Inadequate Internal Control Procedures

Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-7491-00-03

A comparison ofthe completion report for the Elementary and Secondary Education Act - Title III-

Technology Literacy Challenge Fund Grant (CFDA 84.318) to the accounting records revealed that

the project completion report was not supported by total expenditures recorded for this program in
the accounting records. The completion report should have reflected an approved grant and grant

expenditures totalling $125,000.00 however, only $75,000.00 in grant revenues and expenditures

were included in the completion report. The instructions provided by the Georgia Department of

Education mandate that financial management systems provide for accurate, complete and current

disclosure of the financial results of each grant program. This condition was a result of

management's failure to implement internal controls for monitoring compliance with federal

guidelines.. The Board should review the federal compliance procedur~sin place, design procedures

which would enhance monitoring compliance with federal guidelines and proper internal controls

relative to the above federal compliance requirement and implement those procedures to strengthen

the internal control over Federal programs.

.

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WARREN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS SPECIAL TESTS AND PROVISIONS Inadequate Internal Control Procedures Reportable Condition U. S. Department of Education Through Georgia Department ofEducation Finding Control Number: FA-7491-00-04 A review ofprivate school invitations fGf participation in the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund Grant (CFDA 84.318) and the Elementary and Secondary Act - Title VI - Class Size Reduction Grant (CFDA 84.340) indicated that a private school in Warren County was not invited to participate in the planning, development and organization of the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund and the Elementary and Secondary Education Act - Title VI - Class Size Reduction programs as required by guidelines issued by the Georgia Department ofEducation. In addition the children attending this private school were not included in the Elementary and Secondary Education Act - Title ill - Technology Literacy Challenge Fund Grant and Elementary and Secondary Education Act - Title VI - Class Size Reduction Grant application process as required. This condition was a result of management's failure to implement internal controls for monitoring compliance with federal guidelines. The Board should review the federal compliance procedures in place, design procedures which would enhance monitoring compliance with federal guidelines and proper internal controls relative to the above federal compliance requirements and implement those procedures to strengthen the internal control over federal programs.
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