AUDIT REPORT WEBSTER COUNTY BOARD OF EDUCATION 
PRESTON, GEORGIA YEAR ENDED JUNE 30, 1998 
 
 WEBSTER COUNTY BOARP OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
FINANCIAL 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STA1EMENTS AND SUPPLEMENTARY INFORMATION _ SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
EXHIBITS 
 
GENERAL PURPOSE FINANCIAL STATEMENTS 
 
COMBINED STATEMENTS - OVERVIEW 
 
A 
 
COMBINED BALANCE SHEET 
 
ALL FUND TYPES 
 
2 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
3 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES - BUDGET AND ACTUAL 
 
(NON-GAAP BASIS) 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
5 
 
D NOTES TO THE GENERAL PURPOSE FINANCIAL STA1EMENTS 
 
6 
 
ADDmONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
14 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
15 
 
SCHEDULES 
 
1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
16 
 
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
17 
 
3 SCHEDULE OF STATE REVENUE 
 
19 
 
4 SCHEDULE OF EXPENDITURES 
 
LOTTERY PROGRAMS 
 
20 
 
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 
 
5 
 
OVERALL 
 
21 
 
6 
 
BY PROGRAM 
 
22 
 
 WEBSTIlR COUNTY BOARD OF EDUCATION 
- TABLE OF CONTENTS - 
SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WI1H 
GOVERNMENT AIJDITING STANDARDS 
REPORT ON COMPLIANCE WI1H REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WI1H OMB CIRCULAR A-B3 
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
July 28, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Webster County Board of Education 
INDEPENDENT AIJDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY lNFORMATION SCHEDULE OF EXPENPIDJRES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying general purpose financial statements of the Webster County Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Webster County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. 
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Goyernment Auditing StandardS, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaIuating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
... The general purpose financial statements of the Board did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles. 
 
98ARL-13B 
 
 * School activity accounts maintained at the individual schools are not included in the general purpose 
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. 
The aggregate effects on the general purpose financial statements ofthese variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Webster County Board ofEducation as of June 30, 1998, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. 
In accordance with Goyemment Auditing Standards, we have also issued our report dated July 28, 1999, on our consideration ofthe Webster County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. 
The year 2000 supplementary infonnation on Schedule "I" is not a required part of the basic financial statements but is supplementary infonnation required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries ofmanagement regarding the methods of measurement and presentation ofthe supplementary infonnation. However we did not audit the infonnation and do not express an opinion on it. In addition, we do not provide assurance that Webster County Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which Webster County Board of Education does business are or will become year 2000 compliant. 
Our audit was perfonned for the purpose offorming an opinion on the general purpose financial statements of the Webster County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 2 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-B3, Audits ofStates, Local Governments. and Non-Profit Organizations. are presented for purposes ofadditional analysis and are not a required part of the general purpose financial statements. Such infonnation 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 infonnation is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. 
A copy of this report has been filed as a pennanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24. 
Respectfully submitted, 
~~/J.<t:J 
State Auditor 
RWH:jb 98ARL-13B 
 
 WEBSTER COUNTY BOARD OF EDUCATION 
 
 WEBSTER COUNJY BOARD OF EDUCATION COMBINEP BALANCE SHEET All FUND TYPES JUNE30 1998 
 
EXHIBIT "A" 
 
~ Cash and Cash Equivalents Investments Accounts Receivable Inventories 
Food Donated Commodi1les Purchased Food 
Total Assets 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30,1998 
 
JUNE 30, 1997 
 
$ 
 
113,671,85 $ 127,223,85 $ 
 
240,895,70 $ 
 
373,302.21 
 
119,758,54 
 
5,000,00 
 
124,758,54 
 
193,296,07 
 
10,981,12 
 
204,277,19 
 
158,631.65 
 
1,311.61 695.40 
 
1,311.61 695.40 
 
1,823.62 1,132.65 
 
$ 
 
426:726.46 $ 145,211.98 $ 
 
571,938.44 $ 
 
534,890.13 
 
LIABILITIES AND FUND EQUrTY 
 
LIABILITIES 
 
Accounts Payable 
 
$ 
 
Salaries Payable 
 
Expired Grant Balances Payable 
 
Total Liabilities 
 
$ 
 
FUND EQUrTY 
 
Fund Balances 
 
Reserved 
 
For Bus Replacement Funds 
 
$ 
 
For Continuation of Federal Programs 
 
For Inventories 
 
Food 
 
Donated Commodities 
 
Purchased Food 
 
Unreserved 
 
Undeslgnated 
 
Total Fund Equity 
 
$ 
 
36,918.94 $ 178,487.16 
 
10,127.55 $ 35,397.38 
1,015.11 
 
215,406.10 $ 46,540.04 $ 
 
58,590.48 
 
$ 
 
$ 1,311.61 695.40 
 
152,729.88 
 
96,884.93 
 
211,320.36 $ 98,871.94 $ 
 
47,046.49 $ 213,884.54 
1,015.11 261,946.14 $ 
58,590.48 $ 
1,311.61 695.40 
249,394,81 309,992.30 $ 
 
55,662.42 180,119.14 
301.47 236,083.03 
31;529.48 1,905.87 
1,823.62 1,132.65 262,415.48 298,807.10 
 
Total uablli1les end Fund Equity 
 
$ 
 
426:726.46 $ 145,211.98 $ 
 
571 1938.44 $ 
 
5341890,13 
 
The notes 10 the general purpose financial statements are an Integral part of this s1atemenl -2- 
 
 WEBSTER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES 
AbL GQVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 1998 
 
EXHIBIT"B" 
 
~ 
StaIIl Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Cunent Insbuction Support Services PUpil Services Improvement of Insbuctional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation services Other Support Services Food services Operation 
CapitalOutiay 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in ParIod Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 1998 
 
JUNE 30, 1997 
 
$ 1.553.421.73 $ 
582.139.83 42.041.82 
$ 2.177.603.38 $ 
 
207.294.06 $ 456.53027 
10.511.16 
676,335.49 $ 
 
1,760.715.79 $ 458.530.27 582.139.83 52,552.98 
2.853,938.87 $ 
 
1.600.236.14 281.085.01 512.496.16 35,908.68 
2,429.725.99 
 
$ 1.270,722.61 
 
30,868.19 48.575.76 79.968.17 207.365.83 145.464.85 32,882.73 164,002.20 182,615.55 12.665.16 
 
9,197.00 
 
$ 2.184.326.05 $ 
 
$ 
 
-6,722.67 $ 
 
218.043.03 
 
375.657.07 $ 18.582.22 39.314.97 18.840.73 
15,408.10 SOO.OO 
189.175.27 
657.478.36 $ 18,857.13 $ 80.764.07 
 
1.646.379.68 $ 
49.450.41 87.890.73 79.966.17 226.206.56 145,464.85 32.882.73 179,410.30 182.615.55 13,165.16 189.175.27 9.197.00 
2,841.804.41 
12.134.46 $ 
298.807.10 
 
1.322.967.29 
39.117.27 75.100.97 68,469.68 212.186.77 88.011.99 26.730.56 131,750.56 204,273.37 27.084.30 177,582.95 10.794.00 
2.384.049.93 
45.676.06 
253.186.57 
 
-512.01 -437.25 
 
-512.01 -437.25 
 
-489.56 434.03 
 
FUND BALANCE JUNE 30 
 
$ 
 
211.320.36 $ 
 
98.671.94 $ 
 
309.992.30 $ 
 
298.807.10 
 
The notes to the general po"","" financlal stalllmenls are an 1n18gra1 part of this alatarnent -3- 
 
  WEBSTER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF RElIENUES EXPENDITIJRES AND CHANGES IN FUND BAlANCES 
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL RElIENUE FUNDS 
YEAR ENDED JUNE 30 1998 
 
EXHIBIT"C" 
 
~ 
Slate Funds Federal Funds Taxes OlherFunds 
Tolal Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
capl1alOuUay 
Tolal Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JULY 1 1997 
Food Inventory - Net Change In PerIod Donated Commodities Purchased Food 
 
GENERAl FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 1,371,237.67 $ 1,553,421.73 
 
545,160.00 13,500.00 
 
582,139.83 42,041.82 
 
$ 1,929,897.67 
 
2,177,603.38 
 
$ 1,276,252.61 
22,725.76 16,961.00 77,751.61 189,079.47 134,059.23 29,356,35 153,980.85 191,233.98 12,200.00 
31,794.00 
$ 2,135,394.86 
$ -205,497.19 
248,049.56 
 
1,270,722.61 
30,856.19 48,575.76 79,956.17 207,365.83 145,484.85 32,882.73 184,002.20 182,615.55 12,565.16 
9,197.00 
2,184,326.05 
-6,722.67 
218,043,03 
 
FUND BAlANCE JUNE 30 1998 
 
$ 
 
42,552.37 $ 211,320.36 
 
SPECIAL RElIENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 
 
113,206.26 $ 
 
207,294.06 
 
292,856.00 
 
458,530.27 
 
7,300.00 
 
10,511.16 
 
$ 
 
413,372.26 $ 
 
676,335.49 
 
$ 
 
178,674.26 $ 
 
375,657.07 
 
18,480.00 
 
18,582.22 39,314.97 
 
18,918.00 
 
18,840.73 
 
1,500.00 
500.00 199,176.19 
 
15,408.10 
500.00 189,175.27 
 
$ 
 
417,248.45 $ 
 
657,478.36 
 
$ 
 
-3,876.19 $ 
 
18,857.13 
 
72,769.71 
 
80,764.07 
 
-512.01 -437.25 
 
$ 
 
68,893.52 $ 
 
98,671.94 
 
The noIIls lD the general purpose financial statements are an Integral part of lhls sta1Bmenl -5- 
 
 WEBSTER COUNTY BOARD OF EDUCATION 
 
EXlDBIT "D" 
 
NOTES TO THE GENERAL PJJRPOSE FINANCIAL STATEMENTS 
 
WNE3Q 1998 
 
Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POUCIES 
REPORTING ENTITY 
The Webster County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. 
FUND ACCOUNTING 
The Board uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. 
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. 
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements. 
The general purpose financial statements account fur all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with genera11y accepted accounting principles applicable to govermnental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows: 
GOVERNMENTAL FUND TYPES - are used to account for all of a Board's educational activities. Govermnental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal govermnent to accomplish specific educational objectives. 
 
-6- 
 
 WEBSIER COUNTY BOARD OF EDlJCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE3Q 1998 
 
Note l' SIJMMARY OF SIGNIFICANT ACCillJNIING POLICIES 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. 
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. 
Expenditures are generally recognized when the related fund liability is incurred. 
A substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August of1997 and ending in early June 1998. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share of these contracts are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. 
BUDGET 
The Webster 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 prolnbition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school 
-7- 
 
 WEBSTER COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or detI'ease the budget at any time dUring the year. All unexpended budget authority lapses at fiscal year-end. 
CASH AND CASH EQUIVALENTS 
COMPOSmON OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. 
INVESTMENTS 
COMPOSmON OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
(4) Obligations of any corporation 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 ofother political subdivisions ofthe State ofGeorgia 
 
-8- 
 
 WEBSTER COUNTY BOARl) OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE30 1998 
 
Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
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 Webster County Board of Commissioners fixed the property tax levy for the 1997 tax year (calendar year) on October 7, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Webster 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. 
 
The tax millage rate levied for the 1997 tax year (calendar year) for the Webster County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
~mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used in the preparation ofmeals are reported on the Combined Balance Sheet at their Federally assigned value~ Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 
 
INTERFUND TRANSACTIONS 
 
The Board has the following type ofinterfund transactions: 
 
Reimbursements of expenditures 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. 
 
-9- 
 
 WEBSTER COUNTY BOARD OF EDUCATION 
 
EXIllBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JlJNE 30 1998 
 
Note l' SUMMARY OF SIGNIFICANT ACCOUNTING POUClES 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total colwnns on the general purpose financial statements are captioned "Memorandwn Only" to indicate that they are presented only to facilitate financial analysis. Data in these colwnns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfimd eliminations have not been made in the aggregation of this data. 
Note 2' DEPOSITS 
COLLATERALlZATION 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 swn of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofsecurities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of anyone ofor any combination ofthe following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State ofGeorgia, 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State of Georgia, 
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose, 
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and 
 
- 10- 
 
 WEBSTER COUNfY BOARD OF EDUCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL WRPQSE FINANCIAL STATEMENTS 
 
JUNE3Q 1998 
 
Note 2' DEPOSITS 
 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 1998, the bank balances were $500,384.66. The amounts of the total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. 
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. 
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trnst department or agent but not in the Board's name.) 
 
The Board's deposits are classified by risk category at June 30, 1998, as follows: 
Risk Category 
 
Bank Balance 
 
1 
 
$ 100,000.00 
 
2 
 
400,384.66 
 
3 
 
000 
 
Total 
 
$ 50038466 
 
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 and natural disaster. 
 
- 11 - 
 
 WEBSTER COUNTY BOARD OF EDJJCATION 
 
EXHIBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30.1998 
 
Note 4' RISK. MANAGEMENT 
 
The Board has obtained commercial insurance for risk ofloss associated with torts and assets. 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. In addition, the Board has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The Board has not experienced any losses related to these risks in the past three years. 
 
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 of workers' 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: 
 
Position Covered 
 
Superintendent Bookkeeper Payroll Clerk Principal 
 
$ 100,000.00 $ 50,000.00 $ 50,000.00 $ 10,000.00 
 
Nore5: QN-BEHALFPAYJdENIS 
 
The Board has recognized revenues and expenditures in the amount of $48,790.06 for health insurance and retirement contributions paid on the Board's behalfby the following Stare Agencies. 
 
Georgia Department ofEducation Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$41,036.06 
 
Office ofTreasury and Fiscal Services Paid to the Public School Employees Retirement Sysrem For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$7,754.00 
 
-12 - 
 
 WEBSTER COUNTY BOARD OF EDUCAIION 
 
EXlDBIT "0" 
 
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 1998 
 
Note 6' CONTINGENT LIABILITIES 
 
AmQunts received Qr receivable principally from the Federal gQvernment are subject tQ audit and review by grantor agencies. This could result in requests fQr reimbursement to the grantQr agency fQr any expenditures which are disallQwed under grant terms. The BQard believes that such disallQwances, if any, will be immaterial tQ its Qverall financial pQsitiQn. 
 
NQte 7' SUBSEQUENT EVENTS 
 
On NQvember 3, 1998, the VQters QfWebster CQunty VQted in favQr Qfa Special Purpose Local OptiQn Sales Tax referendum fQr educatiQn purpQses. The impQsitiQn Qf the tax apprQved by the vQters, as stated Qn the Official BallQt QfWebster County, is as fQllQws: 
 
"Shall a special Qne percent sales and use tax be impQsed in Webster CQunty fQr a periQd nQt tQ exceed 12 calendar quarters and fQr the raising Qfnot mQre than $450,000.00 fQr the purpQse Qfa capital Qutlay project fQr educatiQnal purpQses, including the cQnstructiQn Qfa new elementary schQQl in the Webster CQunty School District." 
 
Note 8' RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel emplQyed by IQcal schQQl systems are covered by the Teachers Retirement System Qf Georgia (TRS), which is a cost-sharing multiple emplQyer defined benefit pensiQn plan. TRS provides service retirement, disability retirement and survivQrs benefits fQr its members in accQrdance with State statute. The Teachers Retirement System Qf GeQrgia issues a separate stand alQne financial audit report and a copy can be Qbtained from the GeQrgia Department QfAudits and ACCQunts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE EmplQyees Qfthe BQard whQ are covered by TRS are required by State statute to contribute 5% Qftheir gross earnings tQ TRS. The BQard makes mQnthly emplQyer contributiQDS to TRS at rates adopted by the TRS Board QfTrustees in accordance with State statute and as advised by their independent actuary. The required emplQyer contributiQn rate is 11.81% and emplQyer CODtnbUtiQDS for the current fiscal year and the preceding twQ fiscal years are as fQllQws: 
 
Fiscal ear 
 
Percentage Contributed 
 
Required ContributiQn 
 
1998 1997 1996 
 
100010 100010 100% 
 
$ 156,074.36 $ 130,585.66 $ 122,169.38 
 
- 13- 
 
 WEBSTER COUNIY BOARD DF EDUCATION COMBINING BAlANCE SHEET SPECIAL REVENUE FUND JUNE 30 1998 
 
EXHIBIT "eo 
 
~ Cash end Cash Equlvalanls Invastmants Accounts Racalvable Inventorias 
Food Ponatad Commodltias Purchased Food 
TotalAssats 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
96,831,45 $ 
 
20,128,10 
 
5,000.00 
 
6,481.12 
 
FEDERAL PROGRAMS 
10,284,30 
4,500.00 
 
TOTALS JUNE 30,1998 JUNE 30, 1997 
 
127,223,85 
 
109,354.05 
 
5,000.00 
 
10,981,12 
 
8,608.41 
 
1,311.61 695.40 
 
1,311.61 695.40 
 
1,823,62 1,132,65 
 
$ 110,319.58 $ 
 
20.128,10 $ 
 
14,764.30 $ 
 
145,211.98 
 
120,918.73 
 
L!ABIL!TIES AND FUND EQUITY 
 
~ 
Accounts Peyabla salaries Payable ExpII8d Grant Balances Payable 
 
3,982.08 $ 7,685,56 
 
3,673.64 16,454,46 
 
2,471.83 $ 11,277,38 
1,015,11 
 
Total Uebilitias 
 
11,647,64 
 
20,128.10 
 
14,764.30 $ 
 
FUNDEOUITY 
 
Fund Balances Basarvad For Continuation of Fadaral Programs For Inventories Food Ponatad Commodltias Purd1asad Food Unreserved Undeslgnatad 
 
1,311.61 695.40 
96.664.93 $ 
 
Total Fund Equtty 
 
$ 
 
98.671.94 $ 
 
0.00 $ 0.00 $ 
 
$ 
0.00 0.00 $ 
 
10,127,55 $ 35,397.38 1,015.11 46.540.04 $ 
1,311,61 695,40 
96,664,93 98,671,94 
 
8,716,38 31,136.81 
301.47 40.154.66 
1,905.87 
1,823.82 1,132.65 75.901.93 80.764.07 
 
Total Usblltias and Fund equity 
 
$ 110.319,58 $ 
 
20.128,10 $ 
 
14.764.30 $ 
 
146.211.98 
 
120.918.73 
 
See notas ID th8 gan8I8I purpose financial _manta. 
 
-14- 
 
 WEBSTER COUNTY BOARP OF EPUCATION COMBINING STATEMENT OF REVENUES EXPENPITURES AND CHANGES IN FUND BALANCES 
SPECIAL RE\lENUE FUNp 
YEAR ENpED JUNE 30 1998 
 
EXHIBIT"F" 
 
" 
~ 
Slate Funds _ I Funds Other Funds 
Total Revenues 
EXPENPITURES 
Current Instruction Support services Pupil services Improvement of Inslnletlonal Services General Administration Maintenance and Oparalion 01 Plant Sbldant Transportation services Other Support Sarvices Food services Operation 
Total Expandituras 
Excess 01 Ravenues over (undar) Expandituras 
FUND BALANCE JULY 1 
Food Invantory - Nat Chango In Period Donated COmmodltias Purchasad Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
FEDERAL PROGRAMS 
 
TOTALS YEAR ENDED JUNE 30, 199B JUNE 30.1997 
 
$ 
 
11.696.00 $ 195.598.06 
 
187,731.11 
 
$ 270,799.16 
 
10.511.16 
 
209.938.27 
 
195.598.06 $ 270,799.16 
 
207,294.06 $ 458.530.27 
10,511.16 
676,335.49 
 
215,678.90 281,065.01 
6.980.39 
503.744.30 
 
$ 189,175.27 $ 189.175.27 
20,763.00 78,858.20 
-512.01 -437.25 
 
161.607.74 18.582.22 15.408.10 
195,598.06 $ 0.00 $ 0.00 
 
214,049.33 
39.314.97 18.840.73 
500.00 
272.705.03 $ -1.905.87 $ 1,905.87 
 
375.657.07 
18.582.22 39.314.97 18.840.73 15.408.10 
500.00 189.175.27 
657.478.36 $ 
18.857.13 
80,764.07 
 
202,971.92 
16.645.27 28.446.04 28.478.32 27.355.81 2.028.27 14.741.30 177,562.95 
498,229.88 
5,514.42 
75,305.18 
 
-512.01 -437.25 
 
-489.58 434.04 
 
FUND BALANCE JUNE 30 
 
$ 98.671.94 
 
0.00 $ 
 
0.00 $ 
 
98.671.94 $ 
 
80.764.08 
 
see . - . 10 the gonersl purpose flnanciel otate..-. 
 
-15- 
 
 WEBSTER COUNTY BOARD OF EDlJCATION 
 
SCHEDULE "1" 
 
SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION 
 
YEAR 2000 DISCLOSURES 
 
YEAR ENDED nJNE 30 1998 
 
At June 30, 1998, the Webster County Board ofEducation had no outstanding contractual commitments for the purpose ofmaking computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result ofshortcomings in many electronic data processing systems and other equipment that make operations beyond year 1999 troublesome. The year 2000 issue is ofprimary concern for the Board's financial accounting system. The following stages have been identified as necessary to implement a year 2000 compliant systems. 
Awareness Stage - Encompasses establishing a budget and project plan for d!,aling with the year 2000 issue. 
Assessment Stage - The actual process of identifying all of its systems and individual components of the systems to check for compliance. 
Remediation Stage - When changes are made to systems and equipment. 
Validation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system. 
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversely affected. As ofJune 30, 1998, the financial accounting system was determined to be at the Awareness Stage. 
The Board's financial accounting software (GENESIS) and hardware (Wang VS) are owned by the State (Georgia Department ofEducation). These systems have been determined to be critical to the Board's ability to successfully conduct operations. As ofJune 30, 1998, the State had not contracted for the remediation of either the Wang VS operating system or the GENESIS accounting software. In the subsequent period, the Georgia Department of Education remediated the Wang VS operating system and the updated operating system was installed at all GENESIS sites as ofDecember 9, 1998. The Georgia Department ofEducation has remediated the GENESIS software and conducted tests at nine pilot sites. The remediated GENESIS software has been provided to all boards ofeducation currently utilizing the GENESIS accounting software. 
 
See notes to the general purpose financial statements. - 16- 
 
 WEBSTER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWAADS 
)'EAB ENDED JUNE 30 1998 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAM/GRANT 
Agriculture, U. S. Department of Direel Food and Nulrilion Program Summer School Food Service Program lor Children 1997 Contract PaS&-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) PaS&-Through From Office of School Readiness Food and Nutrition Program Child and Adult care Food Program 1998 Contract Food and Nutrition Program Summer School Food Service Program for Chldren 1998 Contract 
Total U. S. Department of Agriculture 
Education, U. S. Department of PaS&-Through From Georgia Department of Education Elemenlary and secondary Education Act TIUel Grants to Local Educetional Agencies 1998 Grant DUell Eisenhower Professional Development 1997 Grant 1998 Grant TIUeVl Innovative Education Program Strategies 1998 Grant Goals 2000 Slale and Local Education Systemic Improvement Grants 1997 Grant 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Aaw Through 1998 Grant 
Total U. S. Department of Education 
 
CFDA NUMBER 
10.559 
10.553 10.555 10.550 10.558 
" 10.559 
84.010 84.281 84.281 84.298 
. 84.276 84.276 84.027 
 
PASSTHROUGH 
ENTITY 10 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
$ 
 
7,067.00 $ 
 
7,122.45 (3) 
 
NlA 
 
64,n4.65 
 
(2) 
 
NlA 
 
99,224.31 
 
167,542.33 (3) 
 
NlA 
 
11,612.58 
 
11,612.58 
 
NlA 
 
2,206.86 
 
(2) 
 
NlA 
 
2,845,71 
 
$ 187,731.11 $ 
 
2,897.91 (3) 189.175.27 
 
NlA $ 101,002.45 $ 
 
101,002.45 
 
NlA 
 
767.99 
 
NlA 
 
17,500.00 
 
17,500.00 
 
NlA 
 
2,429.00 
 
2,429.00 
 
NlA 
 
-228.19 
 
909.69 
 
NlA 
 
132,795.90 
 
132,795.90 
 
NlA 
 
17,300.00 
 
$ 270,799.16 $ 
 
17,300.00 272.705.03 
 
Total Federal Financtsl Assistance 
NlA = Not Available 
 
-17 - 
 
$ 458.530.27 $ 
 
461.880.30 
 
 WEBSTER COUNTY BOARD OF EPUCATION SCHEDULE OF EXpENPITURES OF FEPERAL AWARDS 
)'EAR ENDEp JUNE 30 1998 
 
SCHEDULE "2" 
 
Notes tp !he Schedule of Expenditures of Federal AwardS 
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received end/or consumed by the system during the current fiscal year. 
(2) Expenditures for !he ChDd and Adull care Food Program and the School Breakfast Program were not maintained separately and are induded in the 1998 National School Lunch Program. 
(3) Expenditures for this program indude State, and/or Other Funds. Expenditures are not maintained by fund source. 
Major Programs are identified by an asterisk C") In front of the CFDA number. 
The Board did not provide Federal Assistance tp any Subrecipienl. 
The accompanying schedule of expenditures of Federal awards indudes the Federal grant activity of the Webster County Board of Education and is presented on the modified accrual basis of acoounting which is the same basis of acoounting used In !he presentation of the general purpose financial statements. 
 
see notes tp the general purpose financial statements. 
 
-18- 
 
 WEBSTER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1998 
 
SCHEDULE "3" 
 
AGENCY/FUNDING 
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation RegUlar Bus Replacement Sparsity Grant Special Instructional Assistance Mid-term Adjustment Counselors Grades 4 and 5 Technology Training Local Fair Share Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Educational Equalization Funding Grant Food Services Other Slate Programs At-Risk Summer School Program Health Insurance Mentor Teacher Program Lottery Programs Instructional Technology Assistive Technology Classroom Technology 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
$ 
 
749,501.00 
 
87,773.00 
 
55,741.00 
 
34,939.00 
 
9,561.00 
 
260,760.00 
 
124,769.00 27,061.00 
109,934.00 73,350.00 67,961.00 4,670.00 28,842.00 
-206,453.00 -147,429.00 168,395.00 
50,161.00 $ 
 
2,275.67 41,036.06 
2,820.00 
 
7,754.00 
 
$ 
11,696.00 3,413.00 
53,000.00 139,185.06 
 
TOTAL 
749,501.00 87,773.00 55,741.00 34,939.00 9,561.00 
260,760.00 
124,769.00 27,061.00 
109,934.00 73,350.00 67,961.00 4,670.00 28,842.00 
-206,453.00 -147,429.00 168,395.00 
50,161.00 11,696.00 
2,275.67 41,036.06 
2,820.00 
3,413.00 53,000.00 
139,185.06 
7,754.00 
 
$ 
 
1,553,421.73 $ 
 
207,294.06 $ 
 
1.760,715.79 
 
See notes to the general purpose financial statements. 
 
-19- 
 
 WEBSTER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY pROGRAMS YEAR ENDEp JUNE 30 1998 
 
SCHEDULE "4" 
 
EXPENDITURES 
 
INSTRUCTIONAL TECHNOLOGY 
 
ASSISTIVE 
 
CLASSROOM 
 
TECHNOLOGY TECHNOLOGY 
 
PRE-KINDERGARTEN PROGRAM 
 
Current 
 
Instruction 
 
$ 
 
Support Services 
 
Pupil Services 
 
Maintenance and Operation of Plant 
 
3,413.00 $ 
 
53,000.00 $ 
 
105,194.74 $ 
18,582.22 15,408,10 
 
TOTAL 
181,807.74 18,582.22 15,408.10 
 
Total Expenditures 
 
3,413.00 $ 
 
53,000.00 $ 
 
139,185.08 $ _ _1:.::9~5,.::598~.0~6 
 
RECAP: Salaries and Benefils Pre-Klndergarien Program Other Expenditures Instructional Technology Asststive Technology Classroom Technology Pre-Kindergarien Program 
 
$ 
 
120,264.86 
 
3,413.00 53,000.00 18,920.20 
 
$ 
 
195,598.08 
 
see notes to the general purpose financial a_menls. 
 
-20- 
 
 WEBSTER COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL 
GENERAL FUND - qUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 1998 
 
SCHEDULE "5" 
 
Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis 
Salaries (1) (2) Operations 
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment 
Expenditures per Audit 
Amount of Underexpenditure for Total Allotment 
 
FOURTEEN WEIGHTED AND MEDIA CENTER 
PROGRAMS 
 
100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 
 
$ 
 
995,915.00 $ 
 
19,875.00 
 
$ 
 
968.981.71 
 
102,199.41 $ 
 
$ 
 
1.071,181.12 
 
87,982.49 
 
-14,102.72 
 
$ 
 
1,057,078.40 
 
$ 
 
0.00 $ 
 
0.00 
 
Note: (1) Salary accruals (July and August 1998 Deferred salaries) reported as expenditures in the General Purpose Financial Statements are 
not included on this analysis in order to comply with program 
guidelines. 
(2) Salary accruals (July and August 1997 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 
 
See notes to the general purpose financial statements 
 21 - 
 
 WEBSTER COUNTY BOARD OF EPUCATION ANALYSIS OF MINIMUM EXPENDIWRE REQUIREMENTS' BY PROGRAM 
GENERAL FUNp  aUAUTY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 3D 1998 
 
 SCHEDULE "6" 
 
TOTAL REQUIRED 
 
ACTUAL EXPENDITURES SALARIES (11(2) OPERATIONS 
 
TOTAL 
 
AMOUNT OF UNDEREXPENDITURE 
FOR REQUIRED ALLOTMENT 
 
$ 
 
98,461.80 $ 
 
90,227.43 $ 
 
8,725.79 $ 
 
98,953.22 
 
261,057.60 
 
262,991.89 
 
21,332.36 
 
284,324.25 
 
$ 
 
359,519.40 
 
353,219.32 $ 
 
30,058.15 
 
383,2n.47 $ 
 
0.00 
 
125,315.10 
 
136,910.82 
 
11,195.24 
 
148,106.06 
 
0.00 
 
257,6n.40 
 
279,556.62 
 
24,116.15 
 
303,672.n 
 
0.00 
 
$ 
 
742,511.90 
 
769,686.76 
 
65,369.54 
 
835,056.30 
 
$ 
 
75,833.10 
 
60,514.80 
 
21,640.31 
 
82,154.91 
 
$ 
 
75,833.10 
 
60,514.60 $ 
 
21,640.31 
 
82,154.91 
 
0.00 
 
3,162.60 
 
47,740.50 
 
227.75 
 
47,966.25 
 
0.00 
 
$ 
 
78,995.70 
 
108,255.10 $ 
 
21,868.06 
 
130,123.16 
 
$ 
 
50,166.90 
 
58,215.05 $ 
 
744.89 $ 
 
58,959.94 
 
0.00 
 
$ 
 
871,674.50 $ 
 
934,156.91 $ 
 
87,982.49 $ 1,022,139.40 
 
$ 
 
26,214.30 $ 
 
34,824.80 
 
$ 
 
34,824.80 
 
0.00 
 
5,230.80 
 
$ 
 
14,218.92 
 
14,216.92 
 
0.00 
 
31,445.10 $ 
 
34,824.80 $ 
 
14,216.92 $ 
 
49,041.72 
 
$ 
 
903,119.80 
 
966,981.71 $ 
 
102,199.41 $ 1,071.181.12 $ 
 
0.00 
 
$ 
 
2,n6.00 
 
6,785.00 
 
$ _ _,;::9,:::;5.61.._0.0. 
 
$ 
 
9,261.00 $ 
 
9,261.00 
 
300.00 
 
300.00 
 
$ 
 
9,581.00 $ 
 
9,561.00 $ 
 
..::0;::.00::, 
 
23 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 
July 28, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members ofthe Webster County Board ofEducation 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH 
GO\TERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements ofWebster County Board ofEducation as of and for the year ended June 30, 1998, and have issued our report thereon dated July 28, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditini Standards, issued by the Comptroller General ofthe United States. 
Compliance 
As part of obtaining reasonable assurance about whether Webster County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Audjtini Standards. 
Internal Control Over Financial R.e,gortini 
In planning and performing our audit, we considered Webster County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its 
98YB-40 
 
 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 our judgement, could adversely affect Webster County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7521-98-0l and FS-7521-98-02. 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming 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, all ofthe reportable conditions noted above are also considered to be material weaknesses. 
lbis report is intended solely for the information and use ofmanagement, members of the Webster 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, 
~.. J)l t.cl. ~ Russell W. Hinton State Auditor 
RWH:jb 98YB-40 
 
 RUSSELL W. HINTON 
STATE AUDITOR 
(404) 65&-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 
July 28, 1999 
 
Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board ofEducation 
and Superintendent and Members of the Webster County Board ofEducation 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND lNTERNALCONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Webster County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance 
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. Webster County Board ofEducation's major Federal programs are identified in the accompanying Schedule 
of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Webster County Board of Education's management. Our responsibility is to express an opinion on Webster County Board of Education's compliance based on our audit. 
We conducted our audit of compliance in accordance with generally accepted auditing standards; the 
standards applicable to financial audits contained in Government Audjtin~ Standards, issued by the 
Comptroller General of the United States; and OMB Circular A-133,Audits ofStates. Local Governments. and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Webster County Board of Education's compliance with those requirements aud 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 Webster County Board ofEducation's compliance with those requirements. 
 
98SA-IO 
 
 In our opinion, the Webster County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30,1998. 
Internal Control Over Compliance 
The management of Webster County Board of Education is responsible for establishing and maintaining effective intemal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Webster County Board ofEducation's intemal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33. 
Our consideration of the intemal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. 
This report is intended solely for the information and use ofmanagement, members ofthe Webster 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, 
~~.l~l.W(. HjinJton 0.~ State Auditor 
RWH:jb 98SA-IO 
 
 SECIlONill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 WEBSTER COUNTY BOARD OF EDUCATION 
AlJDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30 1998 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
7521-93-01 7521-94-01 
 
Umesolved-See Corrective Action/Responses Umesolved-See Corrective Action/Responses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: 7521-93-01 
 
While the Webster County Board of Education does not maintain a system-wide General Fixed Assets Account Group, the Board does maintain a fixed asset property listing for all state and federal programs and a property inventory of all schools equipment as well as a schedule of all buildings required for insurance purposes. However, due to budget limitations, it is not economically feasible to increase the administrative staff to expand our scope. 
 
CASH AND CASH EQUIVALENTS INVENTORIES PROCUREMENT Inadequate Separation ofPuties Finding Control Number: 7521-94-01 
 
Due to budget limitations, it is not economically feasible to increase the administrative staff to resolve this finding. However, management is reviewing employee duties for possible reassignment to achieve a higher degree of internal control with existing staff. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 WEBSTER CmJNTy BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED nINE 30 1998 
 
SUMMARY OF AUDITOR'S RESULTS 
 
1. Twe ofReport Issued on the Financial Statements The auditor's opinion on the Webster County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. 
 
2. Reportable Conditions in Internal Control Disclosed by the Audit oithe Financial Statements 
The audit report for the Webster County Board ofEducation disclosed financial statement reportable conditions related to the following control categories. 
 
Cash and Cash Equivalents Procurement 
 
Inventories General Fixed Assets 
 
All ofthe reportable conditions described above are considered to be material weaknesses. 
 
3. NoncompHance Material to the Financial Statements The audit ofthe Webster County Board ofEducation disclosed no instances of noncompHance that were deemed to be material to the financial statements. 
 
4. Reportable Conditions in Internal Control Over Miijor Prowms The audit report for the Webster County Board of Education did not disclose any reportable conditions in intemal control over major programs. 
 
5. Type ofReport ISSUed on Compliance for Maior ProiJ1lIl!s The auditor's opinion on the Webster County Board of Education's report on compHance with requirements appHcable to major programs was unqua1ified. 
6. Audit Findings Required to be Reported by Section 510Ca) of OMB Circular A-133 
The Webster County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133. 
 
7. MlijorPrograms Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Summer School Food Service Program 84.276 Goals 2000 - State and Local Education Systemic Improvement Grants 
 
8. Twe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
 
9. Low Risk Auditee 
The Webster County Board ofEducation did not qualify as a low risk auditee as defined by Section 
.530 ofOMB Circular A-133. 
 
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 WEBSTER COUNTY BOARD OF EDUCATION 
SCHEDULE OF FINDINGS AND OlJESTIQNED COSTS 
YEAR ENDED TIJNE 30 1998 
n FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
CASH AND CASH EQillVALENTS INVENTORIES PROCUREMENT Inadequate Separation ofDuties Reportable Condition Material Weakness Repeated From Prior Year Finding Control Number: FS-7521-98-01 
An examination of the internal accounting control procedures revealed that the Board did not maintain adequate separation ofemployee duties in the performance ofthe following accounting functions and related procedures: 
Cash and Cash Equivalents The bank reconciliation and check writing functions were not separated from the record keeping and voucher payment authorization functions. 
Inventories The receiving function was not separated from the function ofmaintenance of inventory records for the School Food Services Fund. 
Procurement The purchasing function was not separated from the check writing and receiving functions. 
Separation of duties involving key accounting functions is the basis for achieving an adequate system of internal control. These deficiencies were a result of management's decision to limit the number of administrative staffmade responsible for accounting functions. Management should periodically review this decision to detemrine ifemployees duties can be reassigned to achieve a higher degree ofinternal control with existing staff. 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7521-98-02 
The Webster 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 pUlpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide formaintenance ofa General Fixed Assets Account 
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 WEBSTER CffiJNTY BOARD OF Ern TCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED TI!NE 30 1998 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7521-98-02 Group. These subsidiary records should include an inventory of land, buildings and equipment, owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained on all additions and deletions to the General Fixed Assets Account Group. 
ill FEDERAL AWARD FINDINGS AND ffiJESTIQNED COSTS 
No matters were reported. 
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