Wheeler County Board of Education, Alamo, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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WHEELER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHmITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDNIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

16

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

18

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

20

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

24

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

25

2 SCHEDULE OF STATE REVENUE

27

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

WHEELER COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

30

5

BY SITE

31

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 REQUIREMENTS 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 SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

SECTIONI .. FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS w.. 254 Washington Street. S. Suite 214
A\lanta. Georgia 30334-8400
May 31,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Wheeler County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Wheeler County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Wheeler 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 of Education'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:

2001ARL-13

The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30,2001. Also funds received, subsequent to June 30, 2001, 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, 2000, were improperly recorded in the year ended June 30, 2001. 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 Wheeler County Board of Education as ofJune 30, 2001, 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 May 31, 2002, on our consideration of the Wheeler County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit 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 Wheeler County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules I through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the
2001ARL-13

auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the 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.
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,
,,~~.~
Ru sell W. Hinton State Auditor
RWH:gp 2001ARL-13

WHEELER COUNlY BOARD OF EDUCAnON

WHEELER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30, 2001

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

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$

822,84833

158,56847 $

266,82063

3,13983 1,17127

Total Assets

$

981,416 80 $ _..ciI27..1.a1;'.3.=17;,,;;.3..

LIABILITIES AND FUNP EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Funds Held for Others
Total LIabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodrues Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undeslgnated
Total Fund Equity
Total Liabilities and Fund EqUity

$

3,283,95

$

211,669,25

30,867,37

103,475,52

5,02011

40,289.13

$

211,66925 $

182,936.08

$

3,13983

1,171.27

$

769,747.55

83,884 55

$

769,74755 $

88,195,65

$

981,41680 $ .......,;;2;,;,7.1.,:=.1.3..1...7=3=

The notes to the general-purpose finanCIal statements are an Integral part of thiS statement -2-

EXHIBIT "A"

lYPES CAPITAL
PROJECTS FUND

FIDUCIARY FUNDlYPE
AGENCY FUND

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

313,881.60

$ 1,136,729.93 $

717,385.53

51,56836 $

60,252.22

537,20968

445,131.28

3,139.83 1,17127

4,09560 558.34

$

365,44996 $

60,252.22 $ 1,678,25071 $ 1,167,17075

$

31,066 10 $

34,35005

1,84849

244,38511 $

191,889.22

103,47552

69,880.71

5,02011

40,289.13

27,337.63

27,337.63

$

60,252.22 $

454,857.55 $

261,76993

$

330,189.96

35,26000

000 $

$

365,449.96 $

$

44,280.18

$
0.00 000 $

3,13983 1,171.27 330,189.96 35,260.00
853,63210
1,223,39316 $

4,095.60 558.34
185,40191
671,064 79 905,400 82

$

365,449.96 $

60,25222 $ 1,678,250 71 $ 1,167,17075

-3-

---~=--------------------------
WHEELER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

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

GENERAL FUND

SPECIAL REVENUE
FUND

$ 5,308,212,22 $

289,088.91

21,38770

1,177,89370

1,009,753.99

284,96160

94,552.72

$ 6,624,31551 $ 1,561,535.33

$ 4,231,828,91 $
230,07433 43,984.20 161,315,57 169,458,40
455,61091 188,044 60 528,964 06 400,05688
10,728,88

897,506.38 151,61484
5,709,24 46,47449 15,261.97
529,691.52

$ 6.420,06674 $ 1,646,258 44

$

204,24877 $

-84,72311

$

22,57647 $

-43,52264

$

-20,946 17 $

39,707.64 39,70764

$

183,302,60 $

-45,01547

586,444 95

133,553,96

-95577 612.93

FUND BALANCE JUNE 30

$

769,74755 $-==--...8.8.=;,1.9..5,.;0;6.5..

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 5,597,301.13 $ 5,278,76997

1,199,281.40

1,189,99049

$

287,723.47

1,297,4n.46

1,049,502.77

379,514.32

335,611 51

$

287,72347 $ 8.473,574.31 $ 7,853,87474

$ 5,129,335.29 $ 4,437,107.60

$

111 ,490 42

381,689.17 49,69344
161,315.57 215,93289 455,610.91 203,306.57 528,964.06 400,056.88
10,728.88 529,691.52 111,49042

489,026.24 114,47471 169,746.55 240,97580 444,921.78 190,52318 423,276.08 489,019.82
96,850.81 471,73992
32,55100

$

111 ,490.42 $ 8,177,815.60 $ 7,600,21349

$

176,233.05 $

295,75871 $

253,661.25

$

3,815.00 $

66,09911 $

13,67363

-43,52264

-13,67363

$

3,81500 $

22,57647 $

000

$

180,04805 $

318,335.18 $

253,661.25

185,401.91

905,400.82

654,56207

-955.77 61293

-2,611.81 -210.69

$

365,44996 $ 1,223,393 16 $ _ .....9:;0.5.,..4..0.0....8..2.;e,

-5-

=~-------------------------

WHEELER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUNp BALANCES
BUDGET ANp ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 5,092,589,00 $ 5,308,21222

19,638,00

21.387,70

781,368,00 1,009,753,99

211,000,00

284,96160

$ 6,104,595,00 $ 6,624,31551

EXPENDITURES

Current Instruction Support SeMceS Pupil Services Improvement of Instructional Services Educational Media services General AdmlOistration School Administration Business AdmlOistralJon Maintenance and Operallon of Plant Student TransportatIon SeMceS Other Support Services Food serviceS Operation

$ 4,043,201.00 $ 4,231,828 91

234,613,00 52,202,00 185,942.00 138,106,00
491,85500 129,741,00 431,462,00 386,199,00
13,351 00

230,07433 43,984 20 161,31557 169,45840
455,610,91 188,044 60 528,964 06 ..400,056 88
10,72888

Total expenditures

$ 6,106,672 00 $ 6,420,066,74

Excess of Revenues over (under) Expenditures

$

-2,077.00 $ 204,24877

OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other FinanCing Sources (Uses)

$ 22,576.47 -43,52264
$ -20,94617

Excess of Revenues and Other FinanCIng Sources

over (under) Expendrtures and Other FinanCIng

Uses

$

FUND BALANCE JULY 1, 2000

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

-2,077 00 $ 424,67874
804 78

183,30260 586,444 95

FUND BALANCE JUNE 30, 2001

$ 423,406 52 $ 769,74755

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 277,71800 $ 289,08891 985,577,00 1,177,893,70

98,69300

94,55272

$ 1,361,988 00 $ 1,561,53533

$ 736,605,00 $ 897,506,38

109,158.00 17,011,00

151,61484 5,709,24

59,343,00

46,474.49

13,128,00 11,750,00

15,261.97

8,96900 482,66500

529,691 52

$ 1,438,629 00 $ 1,646,258 44

$ -76,641,00 $ -84,72311

$ 39,707,64 $ 39,707.64

$ -76,641,00 $ -45,01547

247,515.95

133,553,96

-2,00643

-955.77 612,93

$ 168,868 52 $-==8~8~,1~9,;;;,5~65~

The notes to the general-purpose finanaal statements are an Integral part of this statement - 6-

WHEELER COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, iOOl

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Wheeler County Board of Education (School District) 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 School District 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 School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently.maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District 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.
-7-

WHEELER COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
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 200 I, a
-8-

WHEELER COUNTY BOARD OF EDUCAnON

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. 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 Wheeler County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget 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 School District'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 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 budget. This final budget is then subniitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
- 9-

WHEELER COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant 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 Wheeler County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 27, 2000 (levy date). Taxes were due on March 12, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Wheeler County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $997,217.44.

The tax millage rate levied for the 2000 tax year (calendar year) for the Wheeler County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

.12..Q mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $287,723.47 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $1,464,174.77 has been collected or on September 30, 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 .evenues 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.

- 10-

.,

~

WHEELER COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate fmancial analysis. Data in these columns do not present financial position or results ofoperations in confonnity 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
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 of insurance, 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) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

- 11 -

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

WHEELER COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

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

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

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

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest 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, 2001, the bank balances were $1,328,527.77. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District'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 School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 100,000.00

2

0.00

3

1.228.527.77

Total

$ 1.328.527.77

- 12-

WHEELER COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

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

The School District is self-insured with regard to unemployment compensation claims. The School District 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:

2000 2001

Beginnmg of Year Liabtlity

Claims and Changes in Estimates

Claims Paid

End of Year LIabilIty

$

0.00 $

453.00 $

0.00 $

453.00

$

453.00 $

1.510.00 $

1.963.00 $

0.00

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

- 13-

--------

WHEELER COUNlY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 4: RISK MANAGEMENT

Position Covered

Amount

Superintendent Each Principal

$ 50,000.00 $ 10,000.00

Note 5: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $130,863.87 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$116,989.45

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $467.42

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 $13,407.00

Note 6: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

02LW/OIS-753-055

$ 443,825.00 $ 317.343.00

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

- 14-

WHEELER COUNfY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: CONTINGENT LIABILITIES

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

Note 8: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District 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

2001 2000 1999

100% 100% 100%

$ 505,084.87 $ 468,774.44 $ 461,689.14

- 15 -

------ -----------------------
WHEELER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Accounts Receivable Inventones
Food Donated Commodities Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

114,685.79 $

44,380.64

933.24

3,139.83 1,171.27

$

119,930.13 $ ===-===44i:::i:!::,3=80=.6...4=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 16-

$

4,369.88 $

7,907.30

27,364.60

31,473.34

5,000.00

$

31,734.48 $

44,380.64

$

3,139.83

1,171.27

83,884.55 $

$

88,19565 $

0.00 0.00

$

119,930.13 $ ==.-44===:;,3.8.0.:=.64ii:::=

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

159,066.43 $

117,617.71

$

265,887.39

266,820.63

268,433.05

3,139.83 1,171.27

4,095.60 558.34

$

265,887.39 $

430,198.16 $ =====3=9..0.=,=,7=04::::',;,,;70=

$

162,350.38 $

162,350.38 $

21,775.11

18,590.19

30,867.37

168,169.92

44,637.58

103,475.52

67,205.71

20.11

5,020.11

40,289.13

40,289.13

$

265,887.39 $

342,002.51 $

257,15074

$

44,280.18

$

3,139.83

1,171.27

4,095.60 558.34

$

0.00

83,884.55

84,619.84

$

0.00 $

88,19565 $

133,55396

$

265,887.39 $

430,198.16 $ =-=3..9.=0,!,;,,7=04"",;,,;70;;.,

- 17-

WHEELER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2001

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 Business Administration Maintenance and Operation of Plant Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

34,888.00 $

243,880.15

412,342.23

81,726.00

$

528,956.23 $

243,880.15

$

210,926.00

54,179.48 5.00

3,215.34 15,261.97

$

529,691.52

$

529,691.52 $

283,587.79

$

-735.29 $

-39,707.64

39,707.64

$

-735.29 $

89,273.78

0.00 0.00

-955.77 612.93

$

88,195.65 $==:::::=-:1=0.....=00=

See notes to the general-purpose financial statements. - 18-

EXHIBIT"F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

10,320.76 $

289,088.91 $

357,452.32

765,551.47

1,177,893.70

1,165,409.29

12,826.72

94,552.72

76,584.06

$

788,698.95 $ 1,561,535.33 $ 1,599,445.67

$

686,580.38 $

897,506.38 $

761,349.75

97,435.36 5,704.24
43,259.15

151,614.84 5,709.24
46,474.49 15,261.97
529,691.52

141,980.90 29,249.22
3,860.00 82,277.31
9,770.90 12,049.00 19,998.05 471,739.92

$

832,979.13 $ 1,646,258.44 $ 1,532,275.05

$

-44,280.18 $

-84,723.11 $

67,170.62

39,707.64

$

-44,280.18 $

-45,015.47 $

67,170.62

44,280.18

133,553.96

69,205.84

-955.77 612.93

-2,611.81 -210.69

$

0.00 $

88,195 65 $ =-c=1=3=:3=,5=53...96ii:::=

- 19-

WHEELER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT
COMMISSION

$

0.00 $

35,260.00

Total Assets

$

0.00 $ =-=..:3;;;:;5~,2~60=,.0.0. ~

FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated

$

35,260.00

$

----:0:.:,,0::.,:0::.,.

0.00

Total Fund Equity

$

0,00 $ ====-0::::::3;;;:;5"",2=60=.=:00,==

See notes to the general-purpose financial statements. - 20-

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

278,621.60 $

313,881.60 $

138,829.47

51,568.36

51,568.36

46,572.44

$

330,189.96 $

365,449.96 $ ==1:.i8=5~.4=01...9=1....

$

330,189.96 $

330,189.96 $

185.401.91

35,260.00

0.00

0.00

0.00

$

330,189.96 $

365,449.96 $ -=-=1..8.;;;;;,5""'.4.0...1.:.9...1....

- 21 -

WHEELER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 3D. 2001

REVENUES
Taxes Other Funds
Total Revenues EXPENDITURES
Capital Outlay Building and Building Improvements
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00 $

$

0.00 $

000 0.00

$

3,815.00 $

$

-3,815.00 $

0.00 0.00

$

3,815.00 $

35,260.00

$

3,815.00 $

35,260.00

$

0.00 $

35,260.00

0.00

0.00

FUND BALANCE JUNE 30

$

0.00 $ -====-===3;;;:;50:1:,2.6.=0.=0.0...

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

287,723.47 $

287,723.47 $

198,101.76

776.15

$

287,723.47 $

287,723.47 $ _ _1.:.;:9;.::;8.&.:,8..:..77~.=-91~

$

107,675.42 $

111,490.42 $ _ _-=3:,:2.&.:,5;.:.51..:..:.=.,:00;...

$

180,048.05 $

176,233.05 $ _ _1.:.;:6;.::;6.&.:,3=.26:.:.=-91~

$

39,075.00 $

$

-35,260.00

-35,260.00

$

-35,260.00 $

3,815.00 $

13,673.63 13,673.63

$

144,788.05 $

180,048.05 $

180,000.54

185,401.91

185,401.91

5,401.37

$

330,189.96 $

365,449.96 $ =-=1..8.=5~,4,;;;,01=.=91=

- 23-

WHEELER COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001

EXHIBIT "I"

FAMILY CONNECTION
ASSETS Accounts Receivable
LIABILITIES Cash Overdraft Accounts Payable Funds Held for Others

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

0.00 $ 287,97873 $ 227,72651 $

60,252.22

$

000 $ 31,06610

$

31,06610

1,84849

1,84849

255,064.14 $ 227,72651

27,337.63

$====0.0..0= $ 287,97873 $ 227,726.51 $=::IIl-===6=0,!:2=52=.2=2;",

See notes to the general-purpose finanCial statements. - 24-

WHEELER COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENPITURES OF FEDERAL AWARPS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U. S. Department of Child Nutnbon Cluster Pass-Through From Georgia Department of EducaIJon Food and Nutrition Program Food services SChool Breakfast Program NaIJonal School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Dlstnbubon Program (1)
Total U. S Department of Agriculture
Education. U. S Department of Special EducaIJon Cluster Pass-Through From Georgia Department of Education Individuals WIth Disabilities Educallon Act Part B - Special Educabon Capacity Building Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of EoucalJon ComprehenSIVe School Reform Demonstrallon Project Elementary and secondary Education Act Title I Grants to Local EducalJonal Agencies Title II EISenhower Professional Development Trtlelll Technology LIteracy Challenge Fund Grants Title VI Innovallve Educallon Program Strategies Goals 2000 State and Local Education Systemic Improvement Grants VocalJonal Education - Basic Grants to States Htgh SChool Program Basic Grant Pass-Through From Georgia Department of Human Resources Safe and Drug-Free Schools and CommunrtJes
Total U S. Department of Educallon

CFDA NUMBER

PASSTHROUGH
ENTIlY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

NlA $ 119,616.65

NlA

266.59994 $

$ 386,216.59 $

(2) 503,565,88 (3)
503,565,88

10.550

NlA

26.12564

$ 412.342.23 $

26.12564 529.691.52

84173 84.027 84173

NlA

$

1,256.56 $

N/A

87.651.69

NlA

14,996,16

$ 103,904 41 $

1.25656 87,651.69 14.996.16
103.904,41

84.332 84.010 84.281 84.318 84.298 84.276 84 048 84.186

NlA

8,60000

8,600,00

NlA

316,522.40

NlA

16,00000

NlA

117,500.00

NlA

46,808.00

316,52240 16.000.00
117.500.00 46.80800

NlA

109.97614

151,391 78 (3)

N/A

23,01600

24,51600 (3)

NlA

19.98770

$ 762.31465 $

(4) 785.242,59

- 25-

- - - - - - - - - - - ----~~------------

-------

WHEELER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASS, THROUGH
ENTITY
to
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Health and Human seMceS. U. S Department of Pass-Through From Children and Youth Coordmabng Council Absbnence Education Block Grant Pass-Through From Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse Grant-in-Aid

93.235 93.959

NJA

$ 23.224.52 $

47.736.54 (3)

NJA

1,400.00

(4)

Total U. S. Department of Health and Human SeMces

$ 24.62452 $

47.73654

Total Federal Financial Assistance

$ 1.199.28140 $~....;,:1'o;;;;36;;;2;:;.6;;.;,7,;;,0,;;;6;;;,5

NJA .. Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities receIVed and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately and are Induded In the 2001 Nabonal School Lunch Program
(3) Expenditures for thIS program Indude State. and/or Other Funds expenditures are not maintained by fund source
(4) expenditures on thiS program were not maintained by fund source.

MaJor Programs are Identified by an asterisk (") In front of the CFDA number.

The School Dlstnct did not provide Federal Assistance to any Subrecipient

The accompanying schedule of expenditures of Federal awards Includes the Federal grant actlvrty of the Wheeler 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.

see notes to the general-purpose finanaal statements.

- 26-

WHEELER COUNTY BOARP OF EPUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE"Z'

AGENCY/FUNDING
GRANTS Education, Georgl8 Department of Quality BaSIC EducalJon Direct InstruClJonal Cost Kindergarten Program KIndergarten Program. Early IntervenlJon Program Primary Grades (1-3) Program Pnmary Grades Early IntervenlJon (13) Program Upper Elementary Grades (45) Program Middle School (6-8) Program High School General EducalJon (9-12) Program VocabOnal Laboratory (912) Program Students with DlsabrlllJes Category II Category III Category fII Gifted Student - Category VI Remedial EducalJon Program Alternative EducalJon Program Media Center Program Staff and ProfessIOnal Development Indlract Cost Categorical Grants Pupil Transportation RegUlar Bus Replacement Nursing Services PnnClpal Supplements VocalJonal Supervisors EducalJon Equalization Funding Grant Food Services VocalJonalEducalJon Other State Programs AtRisk Summer School Program Health Insurance Mentoring Program Preschool Handicapped Program Remedial Summer SChool Student Achievement Ncee Contract Student Achievement Travel Teachers' RelJrement Vocaliorl8l EducalJon - Short Term Agriculture Vocational EducalJon Extended Year Agnculture Vocational Education - Extended Day Agnculture VocalJonal Educallon - Extended Day Technology/Career Lottery Programs Computers In the Classroom
Heart of Georgl8 Techmcallnstltute Tech Prep Mini Grant
Juvenile Jusbce, Georgia Department of ChlldIYouth CoordlnalJng CounCIl (CYCC) AbslJnence Programs
Office of School Readiness Pre-KIndergarten Program
Office of Treasury and Fiscal Services Public SChool Employees RelJrement
CONTRACTS EducalJon, Georgia Department of Georg18'S Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

S

218,98300

66,68300

465,62800

344,004 00

353,82600

679,534 00

530,84200

131,86400

134,50000 280,68700
32,49400 7,97000
131,39800 49,571 00 105,618.00 28,04300 784,45100

202,91900 61,36700 39,70700 4,817 00 4,48400 375,034 00 S 2,50000
2,17053 116,98945
6,00000 10,52200 3,94958 50,00000 2,59824
46742 52400 1,74600 4,271 00 2,13500

S

218,98300

66,68300

485,62800

344,004 00

353,82600

679,534 00

530,84200

131,884 00

134,50000 280,68700
32,49400 7,97000
131,39800 49,57100 105,61800 28,04300 784,45100

34,88800 17,004 00

202,91900 61,36700 39.70700 4,81700 4,484 00
375,03400 34,88800 2,50000
2,17053 116,98945
6,00000 10,52200
3,94958 50,00000 2,59824
46742 52400 1,74600 4,271 00 2,13500
17,004 00

1,50000

1,50000

13,40700

8.82076 226,87615

8,82076 226,87615
13,40700

17,37800 19,13000

17,37800 19,13000

See notes to the general-purpose finanCial statements

S 5,308.21222 $

289,08891 S 5,597,301 13

- 27-

WHEELER COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT
Financing, remodeling, renovating, imprOVing, fumlshlng and equipping eXlsttng school district facillttes, Including classrooms, Instructional areas, support space, physical educatton and athlettc facilities and grounds, purchase or constructton of a storage faCIlity, acqUlnng any necessary personal property, Including computers and other technology, purchase of school buses and paYing expenses incident thereto

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMAtED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 1,950,000.00 $ 1,950,00000 $ 107,67542 $ 13,476.00 Ongoing

(1) The School Distnct's onglnal cost esttmate as specified In the resolutton calling for the Impositton of the Local Option Sales Tax
(2) The School DlStnct's current esttmate of total cost for the project Includes al~ cost from project inception to completion
(3) The voters of Wheeler County approved the Imposlbon of a 1% sales tax to fund the above project Amounts expended for thiS project may Indude 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

29 -

WHEELER COUNTY BOARD OF EDUCATION GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM laBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program KJndergarten Program-Earty IntervenlJon Program Pnmary Grades (1-3) Program Pnmary Grades-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General EducalJon (9-12) Program VocalJonal Laboratory (9-12) Program Students with Disabilities Category II Category III category IV Gifted Student - category VI Remedial EducalJon Program Altematlve Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media center Program Staff and ProfeSSional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

234,995.00 S 234,60968 $

6,84017 $

241,449,85

71,559.00

102,03544

2,199.93

104,235.37

521,136 00

447,113,56

35,62655

482,74011

369,157.00

370,00771

10,458 11

380,46582

379,69700

339,382,53

19,585.67

358,968.20

729,220.00

728,890,03

20,67917

749,569.20

569,656,00

626,392,19

33,640.33

660,032,52

141,506 00

144,938,21

25,07005

170,008,26

480,414.00

134,816,42

25,292.58

160,109,00

253,254,56

26,032 18

279,286,74

25,668,37

19,205,78

44,874,15

8,55300

10,686,70

10,68670

141,005,00

149,32233

1,704 09

151,026,42

53,196,00

166,292.67

1,96233

168,25500

$

3,700,094 00 $ 3,733,410.40 $ 228,29694 $ 3,961,707,34

113,34100 30,094,00

129,386 46 12,04201

28,571 36 19,61244

157,95782 31,65445

TOTAL aBE FORMULA FUNDS

$

3,843,529.00 $ 3,874,83887 $ 276,48074 $ 4,151,31961

(1) Comprtsed of State Funds plus Local Five Mill Share

See notes to the general-purpose finanCIal statements

- 30-

. ' , '
WHEELER COUNTY BOARD OF EDUCATION GENERAL FUND - aUAlITY BASIC EDUCATION PROGRAM <aBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2001

SCHEDULE "5"

Wheeler County Elementary School Wheeler County High School Tri-County Alternative School Central Office (Alternative Education Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

1,899,795.00 $

1,869,807.43

1,747,103.00

1,923,632.47

168,267.44

53,196.00

$

3,700,094.00 $ =~3:!oi,96,;;;1,;,:l,,7;,;0;;,7,;,;;.34~

See notes to the general-purpose financial statements. - 31 -

SECTION II COMPLIANCE AND INTERNAL CONfROL REPORTS

RUSSEI.L. W. HINTON
STATE AUDITOR (404) 65&2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street. S.w.. Suite 214 Atlanta, Georgia 30334-8400
May 31,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wheeler 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 STANPARDS
Ladies and Gentlemen:
We have audited the financial statements of Wheeler County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 31,2002. 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 Wheeler 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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Wheeler 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
2001YB-40

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Wheeler County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7531-01-01.

A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the 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 of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.

This report is intended solely for the infonnation and use of the management, members of the Wheeler 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,

-

lb.~

Ru ell W. Hinton State Auditor

RWH:gp 2001YB-40

RUSSELl, W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w., SUite 214 Atlanta, Georgia 30334-8400
May31,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wheeler County Board of Education
REPORT ON COMPLIANCE WITH REQUlREMENTS 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 of Wheeler 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, 2001. Wheeler County Board ofEducation's major Federal programs are identifieq in the Summary of Auditor's Results Section of 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 Wheeler County Board of Education's management. Our responsibility is to express an opinion on Wheeler 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 ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the 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 perfonn 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 Wheeler County Board of Education's compliance with those requirements and perfonning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detennination on Wheeler County Board of Education's compliance with those requirements.
2001SA-40

In our opinion, the Wheeler 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, 2001.
Internal Control Over Compliance
The management of Wheeler 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 Wheeler County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A133.
We noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Wheeler County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-753 1-01-01.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level 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 nonnal course of perfonning 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 that the reportable condition described above is not considered to be a material weakness.
This report is intended solely for the information and use of the management, members of the Wheeler 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,
u).~
Ru ell W. Hinton Sta e Auditor
RWH:gp 2001SA-40

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

WHEELER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7531-99-01 FS-7531-00-01

Further Action Not Warranted Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7531-00-01

We are. at present. reviewing our options and hope to resolve or at least work on implementing a state approved program to address this finding in the near future.

SECIlONIV FINDINGS AND QUESTIONED COSTS

WHEELER COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of RgJort Issued on the Financial Statements The auditor's opinion on the Wheeler County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. RgJortable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Wheeler County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Wheeler County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. RgJortable Conditions in Internal Control Over Major Programs The audit report for the Wheeler County Board ofEducation disclosed a reportable condition in internal control over major programs for the following compliance requirement.
Allowable Costs/Cost Principles
The reportable condition described above is not considered to be a material weakness.
5. Type ofRgJort Issued on Compliance for Major Programs The auditor's opinion on the Wheeler County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be RgJorted by Section .510(a) ofOMa Circular A-B3 The Wheeler County Board of Education's audit disclosed an audit finding required to be reported by section .510(a) ofOMB Circular A-133. This audit finding is included in section N of this report.
7. Major Programs Federal awards audited as major programs are as follows: 10.550 Food and Nutrition Program - Food Distribution Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00
- 1-

WHEELER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Wheeler County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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-753l-0l-0l
The Wheeler 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 ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establi$h accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
ALLOWABLE COSTS/ COST PRINCIPLES Inappropriate Basis For Charging Costs Reportable Condition Nonmaterial Noncompliance U. S. Department of Education Through Georgia Department of Education Amount: $7,265.71 Finding Control Number: FA-7531-0l-0l
A review of expenditures charged to the Title I - Grants to Local Educational Agencies Program (CFDA 84.010) disclosed the following inappropriate basis for charging expenditures to the Title I program:
-2-

WHEELER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
ALLOWABLE COSTS/ COST PRINCIPLES Inappropriate Basis For Charging Costs Reportable Condition Nonmaterial Noncompliance U. S. Department of Education Through Georgia Department of Education Amount: $7,265.71 Finding Control Number: FA-7531-01-01
1. An employee's salary and fringe benefits totaling $6,508.39 were charged to the Title I program based on a budget rather than actual time devoted by the employee to the program. Although School District records reflected total time expended by the employee, they did not reflect actual time spent on Title I and other activities. Item Ilh of Attachment B of OMB Circular A-87, Cost Principles For State, Local and Indian Tribal Governments and provisions ofa July 8, 1999 Georgia Department of Education memo issued to the Local Boards of Education provide that charges to Federal awards for employees that work on multiple activities shall be based on activity reports that reflect after-the-fact documentation of the actual activity of the employee.
2. The School District allocated costs of $757.32 for the rent, repair and maintenance of copiers equally among Title I and other School District funds although vendor invoices provided specific detail of costs for each copier. We noted that one copier was used exclusively for Title I program purposes while others were used in part for Title I program and other school related activities and others did not appear to be used for Title I program purposes. In line with OMB Circular provisions, the School District should have charged such costs to the Title I fund relative to the actual use of the copiers for Title I program purposes.
These conditions were a result ofmanagement's failure to implement internal controls for monitoring compliance with Federal guidelines.
Procedures should be implemented in accordance with the Circular's requirements to assure that personnel service costs are charged based on actual time expended and documented by School District personnel on Title I program activities. Costs for the rent and repair and maintenance of copiers should be charged to the Title I program by taking into consideration the actual use of the copiers. The Board, in consultation with the Georgia Department of Education, should review the aforementioned lists to determine if a refund is due to the State Department of Education.
-3-