WILCOX COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 8 ADDmONAL FINANCIAL INFORMATION COMBINING STATEMENTS .SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 20 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 22 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 24 2 SCHEDULE OF STATE REVENUE 26 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 27 ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 29 5 BY PROGRAM 30 wacox COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE 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 SECTIONID . AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL .. RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 April 12,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Wilcox 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 Wilcox County Board of Education, as of and 'for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Wilcox County Board of Education's management. Our responsibility is to express an opinion on these general purpose . financial statements based on our audit. . We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofinaterial 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 'Yell as evaluating the 'overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in the notes to the general purpose financial statements, the Board's fmancial 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. 2000ARL-13 . .* School activity accounts maintained at the individual schools are not included in the general purpose financial statements. .To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. * The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conform to generally accepted accoimtingprinciples, 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 Wilcox County Board of Education as ofJune 30, 2000, and the results ofits operations for the year then ended, in conformity . with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated April 12, 2001, on our consideration ofthe Wilcox County Board ofEducation's internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report.inconsidering the results of our audit. . Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Wilcox County Board of Education taken as a whoie. The accompanying combining statements (Exhibits E and F) and the fmancial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office ofManagement 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 of the general purpose financial statements. Such information has been subjected to the 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. 2000ARL.. 13 A copy ofthis report has been filed as a pennanent 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. RWH:gp 2000ARL-13 Rus ell W. Hinton Stat Auditor wn..COX COUNTY BOARD OF EDUCAnON WILCOX COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30,2000 EXHIBIT "A" DEBT SERVICE FUND $ 373,120.08 56,056.77 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2000 JUNE 30, 1999 $ 350,998.52 $ 345,352.97 701,021.35 280,295.68 . 338,368.03 182,193.52 $ 429,176.85 3,271.61 3,523.63 429,176.85 5,603.10. 3,244.80 324,945.16 510,823.15 194,716.80 510,823.15 194,716.80 875,054.84 48,284.00 $ 429,176.85 $ 1,134,716.80 $ 2,531,899.94 $ 2,064,974.07 $ 162,948.28 $. 104,848.67 110,838.30 100,872.66 $ 194,716.80 194,716.80 48,284.00 940,000.00 940,000.00 1,200,000.00 $ 1,134,716.80 $ 1,408,503.38 $ 1,454,005.33 $ 429,176.85 0.00 $ 429,176.85 $ . 78,221.41 $ 5,408.59 1,088.63 429,176.85 3,271.61 3,523.63 7,865.00 594,840.84 $ 1,123,396.56 $ 137,897.91 1,595.79 324,945.16 3,959.73 5,603.10 3,244.80 7,865.00 125,857.25 610,968.74 $ 429,176.85 $ 1,134.716.80 $ 2,531,899.94 . $ 2,064,974.07 -3- WILCOX COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES . ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Capital Leases _ 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 $ 5,958,066.28 $ 294,924.57 1,134,883.45 1,712,976.74 33,857.52 67,144.72 $ 7.704,900.54 $ 1,496,952.74 $ 4,711,050.42 $ 566,387.34 292,932.46 218,711.71 184,636.72 198,942.30 478 ,964.12 71,933.30 534,665.03 648,555.45 8,686.50 2,801.85 74,889.04 362,274.55 . 53,226.81 35,019.13 1,387.17 6,903.89 22,207.76 453,832.44 94,987.20 10.029.30 $ 7,531.785.40 $ 1,501,239.09 $ 173,115.14 $ -4,286.35 $ 241,420.00 $ -13,154.33 $ 228,265.67 $ $ 401,380.81 $ 223,542.72 13,154.33 13,154.33 8,867.98 54,615.86 -2,331.49 278.83 FUND BALANCE JUNE 30 $ 624,923.53 $===6=1'1:,;,4;;;"31;,;,.1,;,;;8;,,, The notes to the general purpose financial statements are an integral part of this statement. -4- EXHIBIT "B" CAPITAL PROJECTS FUND DEBT SERVICE .FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2000 JUNE 30,1999 $ 2,100.00 $ 6,255,090.85 $ 6,025,717.80 1,134,883.45 1,103,895.29 $ 412,945.32 2,125,922.06 1,797,687.64 11,886.37 112,888.61 95,399.48 $ 2,100.00 $ 424,831.69 $ 9,628,784.97 $ 9,022,700.21 $ 5,277,437.76 $ 5,345,329.06 $ 2,100.00 655,207.01 271,938.52 184,636.72 233,961.43 480,351.29 71,933.30 . 534,665.03 655,459.34 30,894.26 456,634.29 76,989.04 172,482.85 221,335.14 166,422.79 207,466.57 446,455.68 80,870.86 493,449.76 433,792.14 46,651.44 458,016.33 102,213.93 $ 260,000.00 60,600.00 354,987.20 70,629.30 288,453.38 75,862.15 $ 2,100.00 $ 320,600.00 $ 9,355,724.49 $ 8,538,802.08 . $ 0.00 $ 104,231.69 $ 273,060.48 $ 483,898.13 $ 241,420.00 $ 48,284.00 13,154.33 33,723.76 -13,154.33 -33,723.76 $ 241,420.00 $ 48,284.00 $ 0.00 $ 104,231.69 $ 514,480.48 $ 532,182.13 7,865.00 324,945.16 610,968.74 77,131.29 -2,331.49 278.83 1,696.26 -40.94 $ 7,865.00 $ 429,176.85 $ 1,123,396.56 $ =====6=1=O,,,,,,9=68;;,;;.7;.;;:4~ -5- ' WILCOX COUNTY BOARD OF EDUCATION . COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2000 EXHIBIT"C" The notes to the general purpose financial statements are an integral part of this statement. . 7 WILCOX COUNTY BOARD OF EDUCATION EXHIBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Wilcox County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and 'the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A ,fund is a separate accounting entity with a self-balancing set of accounts. An account group is a 'financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. ' Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the reven':les, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, th~se accounts should be recorded in the general purpose financial statements.' The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: .. GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources ofthe Board except those r~quired to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. -8- WILCOX COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for fmancial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations. 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 ava~lable spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., ~hen they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day -9- WILCOX COUNTY BOARD OF EDUCAnON EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in Septembe~ 1999 and ending in August 2000. State grants to fund the,State's share of these . . c(:mtracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30,2000, compensation under these employment contracts had been earned, but tWo of the twelve monthly payments, due for July and August 2000,'had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditUres be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Wilcox County Board of Education's budget is a complete financial plan for the Board's fiscal year and is based upon estimates ofexpenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. ' The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was 'established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting pnn.ciples. ,. The budget process begins when the Board's administration' prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a' newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act, bCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the .year. All unexpended budget authority lapses at fiscal year-end. The Statement .ofRevenues, Expenditures and Changes in Fund Balances - Budget and Actual ; presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget,the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: - 10- WILCOX COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 - Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Special Revenue Fund FUND BALANCE JULY 1, 1999 $ 54,615.86 Adjustments Inventories - July 1, 1999 Food Donated Commodities Purchased Foods -5,603.10 -3,244.80 Fund Balance July 1, 1999 (Budget Basis) $ 45,767.96 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 8,867.98 FUND BALANCE JUNE 30, 2000 (Budget Basis) $ 54.635.94 CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a.maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value, The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given . equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, - 11 - ) WILCOX COUNTY BOARD OF EDUCATION EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (3) Obligations fully insured or guaranteed by' the United States government or a United States government agency, (4) Obligations of any corp,oration 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 - I' (8) Obligations of other political subdivisions of the State of Georgia. 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 ail allowance for uncollectible receivables.. PROPERTY TAXES - The Wilcox County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on October 15, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Wilcox CouIrty Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. The tax millage rate levied for the 1999 tax year (calendar year) for the Wilcox County Board of Education"was as follows (a mill equals $1 per thousand dollars of aSsessed value): School Operations SALES TAXES ' 12.61 mills Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $412,945.32 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $852,917.89 has been collected.or on June 30, 2002, whichever occurs first. - 12 - WILCOX COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS niNE 30, 2000 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 (weighted average). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs,are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that" is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general pUrpose financial statements -are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications. - 13- , WILCOX COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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. .If a depository electsthe pooled method (OCGA 45-8-13.1) theaggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 11 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 ofth~ following: (1) Surety bond signed bya surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the FederalDeposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United .States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority-created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe 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. CATEGORIZAnON OF DEPOSITS Atlune 30, 2000, the bankbahmces were $1,993,121.84. The amounts ofthe total bank balances are classified into three categories of credit risk: .- 14- WILCOX COUNTY BOARD OF EDUCATION EXHffiIT ltD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category Bank Balance 1 $ 632,279.12 2 1,078,823.26 3 282,019.46 Total $ 1.993,121.84 Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years. The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years. The Board is self-insured with regard to unemployment compensation c1aims.- The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The Board has not experienced any unemployment compensation claims during the last two years. - 15 - WILCOX COUNTY BOARD OF EDUCATION EXHIBIT tiD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS. JUNE 30, 2000 Note 4: RISK MANAGEMENT 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' compens'ation 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 Trustwith the United States Fidelity and Guaranty Company to provide coverage fo.r potentiat 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 bond.s to provide additional insurance coverage as follows: .Position Covered Amount Superintendent Assistant Superintendent : , Each Principal '.. $ 10,000.00 $ 10,000.00 $ 10,000.00 Note 5: ' GENERAL LONG-TERM DEBT CAPITAL LEASES The Wilcox County Board of Education has entered into various lease agreements as lessee for buses., These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rate Amount General Government - Series 1997 5.05% $ 940,000.00 The changes in General Long-Term,Debt during th,e fiscal year ended JUne 30,.2000, were as follows: . - 16- WILCOX COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LONG-TERM DEBT Capital Leases General Obligation Bonds Total Balance July 1, 1999 $ 48,284.00 $ 1,200,000.00 $ 1,248,284.00 Additions Capital Leases 241,420.00 241,420.00 Deductions Debt Retired 94,987.20 260,000.00 354,987.20 Balance June 30, 2000 $ 194.716.80 $ 940,000.00 $ 1.134.716.80 At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 Capital Leases JGeneral Obligation Bonds Total Debt 2001 2002 2003 $ 105,01.6.50 $ 322,470.00 $ 427,486.50 105,016.50 378,582.50 483,599.00 336,160.00 336,160.00 Total Principal and Interest -$ 210,033.00 $ 1.037.212.50 $ 1.247.245.50 Deduct: Imputed Interest 15.316.20 Net Present Value of Future Minimum Lease Payments $ 194.716.80 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $100,015.65 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personn~1 In the amount of $78,090.65 - 17 - WILCOX COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 6: ON-BEHALF PAYMENTS 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$21,925.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: Project Unearned Executed Contracts Funding Available From State LW 00-99S-856-009 $ 81.242.00 $ 68,685.00 The amounts described in this note are not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES: . Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides servi~e 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 Depa.rtrnent of Audits and Accounts. ' TRS CONTRIBUTIONS REQUIRED AND MADE 'Employees of the Board who are covered by TRS are required by State statute. to contribute 5% of their gross earnings to TRS. The Board makes monthly. employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: - 18- WILCOX COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 9: RETIREMENT PLANS Fiscal Year 2000 1999 1998 Percentage Contributed 100% 100% 100% Required Contribution $ 583,625.85 $ 561,288.61 $ 537,323.44 - 19- WILCOX COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS . Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 78,137.01 $ 35,050.49 951.43 5,888.79 3,271.61 3,523.63 Total Assets $ 85,883.68 $ ===4=0=,9=39=.=28== LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Total Liabilities FUND EQUITY . Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity $ 4,889.40 $ 15,663.13 26,060.32 24,187.52 $ 30,949.72 $ 39,850.65 $ $ 3,271.61 3,523.63 48,138.72 $ 54,933.96 $ 1,088.63 0.00 1,088.63 $ 85,883.68 $ ===4=0=,9=3=9.=28== See notes to the general purpose financial statements. 20 - EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 113,18i50 $ 105,011.74 $ 104,005.56 110,845.78 85,597.89 3,271.61 3,523.63 5,603.10 3,244.80 $ 104,005.56 $ 230,828.52 $ ===1=99:::!:.4=5;,;,;7.=53= $ 6.427.23 $ 6.427.23 $ 2,768.44 31,579.28 52,131.81 41,200.57 60.590.46 110.838.30 100,872.66 $ 98,596.97 $ 169,397.34 $ 144,841.67 $ 5.408.59 $ 5.408.59 $ 1,595.79 1.088.63 3,271.61 3,523.63 5,603.10 3,244.80 0.00 48,138.72 44,172.17 $ 5,408.59 $ 61.431.18 $ 54,615.86 $ 104,005.56 $ 230,828.52 $ ==1=:9:=9=:.4=57::;.5=3= - 21 - WILCOX COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services' Pupil Services Improvement of Instructional Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expendit!Jres 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 .LOTIERY PROGRAMS $ 31,690,00 $ 358,964.27 67,144.72 $. 457,798.99 $ 263,234.57 263,234.57 $ 239,011.79 8,115.28 ' 8,114.98 $ 453,832.44 6,903.89 $ 453,832.44 $ 262,145.94 $ 3,966.55 $ 1,088.63 $ 3,966.55 $ 53,020.07 -2,331.49 278.83 1,088.63 0.00 $ 54,933.96 $ ==~1=,0=88=.6=3= See notes to the general purpose financial statements. - 22- EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 294,924.57 $ 250,459.61 $ 775,919.18 1,134,883.45 1,103,895.29 67,144.72 60,643.53 $ 775,919.18 $ 1,496,952.74 $ 1,414,998.43 $ 327,375.55 $ 566,387.34 $ 856,344.83 354,159.27 45,111.83 35,019.13 1,387.17 22,207.76 362,274.55 53,226.81 35,019.13 1,387.17 6,903.89 22,207.76 453,832.44 14,633.00 23,881.99 38,649.80 2,791.40 35.16 38,532.73 455,240.85 4,234.00 $ 785,260.71 $ 1,501,239.09 $ 1,434,343.76 $ -9,341.53 $ -4,286.35 $ -19,345.33 13,154.33 13,154.33 25,858.76 $ 3,812.80 $ 8,867.98 $ 6,513.43 1,595.79 54,615.86 46,447.11 -2,331.49 278.83 1,696.26 -40.94 $ 5,408.59 $ 61,431.18 $ ===5=:4:!::,6=15=.8=6= - 23- WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U.S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program . 10.553 10.555 Total Child Nutrition Cluster NlA $ 99,575.87 NlA 241,121.35 $ $ 340,697.22 '$ (2) 435.565.39 (3) 435.565.39 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Total U. S. Department of Agriculture 10.550 N/A 18.267.05 $ 358,964.27 $ 18,267.05 453,832.44 Education. U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Severely Emotionally Disturbed Total Special Education Cluster 84.027 84.173 84.027 NlA $ N/A N/A ," $ 72,467.25 $ 9,675.00 2,440.00 84,582.25 $ 72.691.81 (3) 9,675.00 2,440.00 84,806.81 Other Programs Pass-Through From Georgia Department of Education. Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Vocational Education - Basic Grants to States High School Program Basic Grant Tech-Prep Education Total U. S. Department of Education 84.010 84.281 84.318 84.298 84.340 84.048 84.243 NlA . 410,282.30 411,806.93 (3) NlA 16,000.00 16,493.90 (3) NlA 122,043.39 122,273.81 (3) NlA 13,197.00. 13,197.00 N/A 50,198.00 . 44.883.57 (3) NlA NlA -'"'' (' 25,985.73 18,500.00 $ 740,788.67 $ 33,012.06 (3) 18,500.00 744,974.08 Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program $ 35.130.51' (4) Total Federal Financial Assistance NlA = Not Available 24 - $ 1,134,883.45 $ 1,198.806.52 WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2000 SCHEDULE "'" Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the SChool Breakfast Program were not maintained separately and are induded in the 2000 National 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 Board did not provide Federal Assistance to any Subredpient. The accompanying sChedule of expenditures of Federal awards indudes the Federal grant activity of the Wilcox County Board of Education and is presented OR the modified accrual basis of accounting whiCh is the basis of accounting used in the presentation of the general purpose finandal statements. ~. See notes to the general purpose finandal statements. - 25- WILCOX COUNTY'BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL 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 Middle School Incentive Program In-School Suspension Mid-term Adjustment Counselors Technology Specialist Local Five Mill Share Educational Equalization Formula Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Year 2000 Project Funding Lottery Programs Assistive Technology Computers in the Classroom Distant Leaming Georgia State Financing and Investment Commission Reimbursement on Construction Projects $ 3,442,035.00 446,096.00 114,206.00 138,418.00 32,973.00 859,226.00 238,477.00 52,740.00 132,172.00 120,480.00 79,348.00 127,137.00 13,077.00 28,842.00 -476,941.00 424,663.00 $ 31,690.00 51,173.00 3,795.00 78,090.65 5,000.00 20,897.00 2,318.13 1,918.50 9,115.74 53,000.00 2,850.00 $ 3,442,035.00 446,096.00 114,206.00 138,418.00 32,973.00 859,226.00 238,477.00 52,740.00 132,172.00 120,480.00 79,348.00 127,137.00 13,077.00 28,842.00 -476,941.00 424,663.00 31,690.00 51,173.00 3,795.00 78,090.65 5,000.00 20,897.00 2,318.13 1,918.50 9,115.74 53,000.00 .2,850.00 $ 2,100.00 2,100.00 Office of School Readiness Pre-Kindergarten Program 198,268.83 198,268.83 Office of Treasury and Fiscal Services Public School Employees Retirement 21,925.00 21,925.00 $ 5,958,066.28 $ 294,924.57 $ 2,100.00 $ 6,255,090.85 See notes to the general purpose financial statements, - 26- WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" PROJECT Acquisition, construction and equipping of new middle school, purchasing energy management, HVAC and similar equipment, as well as classroom, media center, laboratory and other furnishings, at the existing education building of the school district, acquisition, construction and equipping a new agriCUlture science building, purchasing, remodeling and renovating lighting on school grounds and athletic fields ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS $ 2,000,000.00 $ 2,000,000.00 $ 60,600.00 $ 1,596,575.49 (1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. (2) The Board's current estimate of total cost for the projects. Includes all cost from project inception to completion. (3) The voters of Wilcox County approved the imposition of a 1% sales tax to fund the above project and retire associated debt. Amounts expended for this project may include sales tax proceeds, local property taxes and/or other funds over the life of the project. See notes to the general purpose financial statements. - 27- WILCOX COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries Operations Expenditures per Audit Amount of Underexpenditure for Total Allotment FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 4,267,892.00 $ 114,450.00 $ 4.184,428.09 202,897.15 $ $ 4,387,325.24 177,924.40 $ 0.00 $=====0=.00= See notes to the general purpose financial statements. - 29 - ' WILCOX COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM GENERAL FUND QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 332,793.90 $ 413.561.42 $ 7.527.72 $ 421,089.14 831,931.20 787,447.94 39.297.91 826,745.85 $ 1,164,725.10 $ 1,201,009.36 $ 46,825.63 $ 1,247,834.99 $ 0.00 413,524.50 452,151.67 7.952.96 460,104.63 0.00 667,441.80 711,306.87 22,086.08 733.392.95 0.00 446,986.50 539.986.34 68,231.14 608.217.48 0.00 284,958.00 302,025.15 8,444.20 310,469.35 0.00 247,332.60 291,487.27 13,793.26 305,280.53 0.00 $ 3,224,968.50 $ 3,497,966.66 $ 167.333.27 $ 3.665,299.93 $ 356.972.40 $ 2,073.46 $ 196,721.96 151,383.22 18.090.21 5,078.43 98.71 $ 2,903.70 2,816.56 4,000.00 2.172.17 199.625.66 154,199.78 18.090.21 9,078.43 $ 356,972.40 $ 373,347.28 $ 9.818.97 $ 383.166.25 0.00 44,514.00 66,599.29 683.16 67,282.45 0.00 $ 401,486.40 $ 439,946.57 $ 10,502.13 $ 450,448.70 $ 102,785.40 $ 134,296.02 $ 89.00 $ 134,385.02 0.00 $ 3,729,240.30 $ 4,072.209.25 $ - 177.924.40 $ 4,250,133.65 $ 102,276.90 $ 112,218.84 $ 112.218.84 0.00 24,777.00 $ 24,972.75 24.972.75 0.00 $ 127,053.90 $ 112.218.84 $ 24.972.75 $ 137,191.59 $ 3,856,294.20 $ 4,184,428.09 $ 202,897.15 $ 4,387,325.24 $ 0.00 $ 10,712.00 22,261.00 $ ===32;:;,9=7,;;,3.=00;;, $ 29,257.99 $ 29.257.99 16,128.67 16.128.67 $ 45.386.66 $ 45,386.66 $ =======O=,O=.O - 31 - SECtIONll COMPLIANCE AND INTERNAL CONTROL REPORTS {USSELL W. HtNTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Stree~. S.w.. Suite 214 Atlanta. Georgia 30334-8400 April 12,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Wilcox County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements of Wilcox County Board of Education as of and for the year ended June 30,2000, and have issued our report thereon dated April 12, 2001. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Wilcox 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 Wilcox County Board of Education'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 a certain matter involving the internal control 2000YB-40 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 Wilcox County Board of Education'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-7561-00-01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts . that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing 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 information and use of management, members ofthe Wilcox 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, -- W.~ .... Ru sell W. Hinton State Auditor RWH:gp 2000YB-40 lUSSELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 April 12,2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Wilcox County Board of Education . REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance ofWilcox County Board ofEducation with the types ofcompliance u.s. requirements described in the Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Wilcox County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs, Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofWilcox County Board ofEducation's management. Our responsibility IS to express an opinion on Wilcox County Board of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with genenilly accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB CircularA-133, 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 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 Wilcox County Board ofEducation's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a . reasonable basis for our opinion. Our audit does not provide a legal detennination on Wilcox County Board of Education's compliance with those requirements. 2000SA-IO In our opinion, the Wilcox County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federalprograms for the year ended June 30, 2000. Internal Control Over Compliance The management of Wilcox 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 Wilcox 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 A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses.. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk 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 ofperforming 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 of management, members of the Wilcox 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, Q~~~ R~sell W. Hinton State Auditor RWH:gp 2000SA-IO SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS WILCOX COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-7561-97-01 FS-7561-98-01 FS-7561-99-01 FS-7561-99-02 FS-7561-99~03 Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7561-99-03 The Board does not maintain a system-wide General Fixed Assets Account Group. SECTIONN FINDINGS AND QUESTIONED COSTS WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS. 1. Type of Report Issued on the Financial Statements The auditor's opinion on the Wilcox County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles. 2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Wilcox County Board of Education disclosed a financial statement reportable condition related to the following control category. General Fixed Assets The reportable condition described above is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the Wilcox County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Wilcox County Board ofEducation did not disclose any reportable conditions in internal control over major programs. 5. Type of Report Issued on Compliance for Majo~ Programs The auditor's opinion on the Wilcox County Board ofEducation's report on compliancewith requirements applicable to major programs was unqualified.. 6. Audit Findings Required to be Repor-ted by Section .510(a) ofOMB Circular A-133 The Wilcox County Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-133. 7. Major Programs Federal awards audited as major programs are as follows: _ 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 9. Low Risk Auditee The Wilcox County Bo'ard ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education. - 1- ---- 7~-----=~-----------------------~----~-~ WILCOX COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 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-7561-00-01 The Wilcox 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. The condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and descriptio!?_ Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. - 2-