Audit report, Wilkinson County Board of Education, Irwinton, Georgia, year ended June 30, 1999

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AUDIT REPORT WILKINSON COUNTY BOARD OF EDUCATION
IRWINTON, GEORGIA YEAR ENDED JUNE 30, 1999
~---------------------
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400

WILKINSON 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 TIIE 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

21

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

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

4 SCHEDULE OF EXPENDITURES

LOTIERY PROGRAMS

28

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

29

6

BY PROGRAM

30

WILKINSON 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 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
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Wilkinson County Board ofEducation
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE
FINANCIAL STATEMENTS AND supPLEMENTARY INFORMATION-
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Wilkinson County Board of Education, as of and for the year ended June 30, 1999, as listed in the table of contents. These general purpose financial statements are the responsibility of the Wilkinson County Board of Education's management. Our responsibility is to express an opinion on these general pwpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in GoYernment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* 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.
99ARL-13

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To confonn 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, 1999, a portion of salaries
and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1999. Also funds received, subsequent to June 30, 1999, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were improperly recorded in the year ended June 30, 1999. To confonn 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 ofthe Wilkinson County Board ofEducation as ofJune 30, 1999, and the results of its 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 11, 2000, on our consideration ofthe Wilkinson County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants.
Our audit was perfonned for the purpose of forming an opinion on the general purpose financial statements of the Wilkinson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 6), which includes the Schedule of Expenditures of Federal 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 ofadditionaI
anaIysis and are not a required part ofthe general purpose financiaI statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infonnation is fairly presented in all materiaI respects in relation to the general purpose financial statements taken as a whole.
99ARL-13

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~A.<~ W.4:! Russell W. Hinton State Auditor
RWH:gp 99ARL-13

WILKINSON COUNTY BOARD OF EDUCATION

WILKINSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1999

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

170,405.16 $

113,531.03 $

5,304.61

1,858,870.07

5,456,112.03

127,019.94

175,069.52

187,119.91

14,122.73 1,915.45

Total Assets

$ 2,156,295.17 $ 304,638.73 $ 5.648.536.55

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Contracts Payable Retainages Payable Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

6,238.08 $

40,615.59

135,923.35

$

53,150.00

22,450.00

$

6,238.08 $

176.538.94 $

75.600.00

$

28,365.20

$
2,121,691.89
$ 2.150,057.09 $

14,122.73 1,915.45
$
112,061.61
128,099.79 $

4,603.923.74 969,012.81
0.00
5.572,936.55

Total LIabilities and Fund Equity

$ 2,156,295.17 $

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

304,638.73 $ 5.648,536.55

EXHIBITWAW

DEBT SERVICE
FUND

$

99.38

247,557.58

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30,1999

JUNE 30,1998

$

289,340.18 $

437,265.10

7,562,539.68

6,476,994.10

489,209.37

563,247.29

$

247,656.96

14,122.73 1,915.45
247,656.96

11,742.24 2,587.70
211,375.49

4,752,343.04

4,752,343.04

4,788,624.51 228,424.58

$

247,656.96 $ 5,000,000.00 $ 13,357,127.41 $ 12,720,261.01

$

46,853.67 $

32,558.12

135,923.35

123,651.75

53,150.00

22,450.00

228,424.58

$ 5,000,000.00

5,000,000.00

5,000,000.00

$ 5,000,000.00 $ 5,258,377.02 $ 5,384,634.45

$

247,656.96

0.00

$

247,656.96

$

28,365.20

247,656.96 $

211,375.49

14,122.73 1,915.45
4,603,923.74 969,012.81

11,742,24 2,587.70 4,922,722.36

2,233,753.50

2,187,198.77

$ 8,098,750.39 $ 7,335,626.56

$

247,656.96 $ 5,000,000.00 $ 13,357,127.41 $ 12,720,261.01

-3-

WILKINSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1999

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 Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds
Par Value Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 7,069,993.13 $ 40,588,86
4,387,773.85 173,696.70
$ 11 ,672,052.54 $

473,335,35 1,427,535.12
198,612.61
2,099,483.08

$ 7,067,253.07 $
488,790.25 315,011.52 200,629.28 248,588.84 784,176,48 129,641.90 1,066,004.60 714,091.35
12,720.23 3,430.42 183,950.07
193,193.45 3,586.63

969,378.60 99,603.46 50,361.67 91,048.28
28,312.22 24,932.06 984,566.31
35,231.13 2,113.87

$ 11,411,068.09 $

$

260,984.45 $

2,285,547.60 -186,064.52

$

$

-118.88

$

-118.88 $

118.88 118.88

$

260,865.57 $

1,889,191.52

-185,945.64 312,337.19

2,380.49 -672.25

FUND BALANCE JUNE 30
The notes to the general purpose financial statements are an Integral part of.this statement
4

$ 2,150,057.09 $

1:.=28;;;",099~;,:".79_

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30,1999

JUNE 30,1998

$

951,286.68 $

264,363.22

$ 1,215,649.90 $

$
216,693.68 5.405.84

7,543,328.48 $ 1,468,123.98 5,555,754.21
642,078.37

7,125,576.20 1,234,213.98 3,904,959.38
426,626.95

222,099.52 $ 15,209,285.04 $ 12,691,376.51

$ 8,036,631.67 $ 7,285,920.37

$

565,435.71

588,393.71 365,373.19 200,629.28 339,637.12 784,176.48 129,641.90 1,066,004.60 742,403.57
37,652.29 987,996.73 749,385.78

531,897.31 431,418.16 215,379.92 258,655.58 672,539.42 264,990.94 880,074.30 792,917.78
47,187.98 862,906.26
12,270.00

$

185,806.05

12.00

228,424.58 191,506.55
12.00

211,978.17 22,146.91

$

565,435.71 $

185,818.05 $ 14,447,869.45 $ 12,490,283.10

$

650,214.19 $

36,281.47 $

761,415.59 $

201,093.41

$

14,076.22

5,000,000.00

$

118.88

-118.88

$

0.00 $ 5,014,076.22

$

650,214.19 $

4,922,722.36

36,281.47 $ 211,375.49

761,415.59 $ 7,335,626.56

5,215,169.63 2,116,091.01

2,380.49 -672.25

3,257.26 1,108.66

$ 5,572,936.55 $

247,656.96 $ 8,098,750.39 $ 7,335,626.56

-5-

WILKINSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30.1999

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

FUND BALANCE JUNE 30. 1999

$ 825,485.19 $. .2,150,057.09

$. 64,987~41 $ 128,099.79

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

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Wilkinson County Board of Education (Board) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
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 ofthese accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general pwpose financial statements.
The general pwpose financial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required
to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds ofspecific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified pwposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific educational objectives.
-8-

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

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.
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.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 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., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are property taxes, 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 1999, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1998 and ending in early June 1999. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1998 and ending in August 1999. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As of June 30, 1999, compensation under these employment
-9-

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 3D. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
contracts had been earned, but two of the twelve monthly payments, due for July and August 1999, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1999. Also, the State's portion of the compensation paid in July and August 1999 was received and recorded as revenue in the fiscal year subsequent to June 30, 1999. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1998, were recorded in the year ended June 30, 1999. 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 Wilkinson County Board of Educ~tion'sbudget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents co~ist of deposits in authorized financial institutions. Georgia Laws authorize the Board to deposit its funds in one or more solvent banks, insured Federal "savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates ofdeposit) 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
-10-

WILKINSON COUNTy BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations 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 an allowance for uncollectible receivables.
PROPERTY TAXES
The Wilkinson County Board of Commissioners fixed the property tax levy for the 1998 tax year (calendar year) on October 21, 1998 (levy date). Taxes were due on December 21, 1998. The lien date for property taxes was January 1, 1998. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1999. The Wilkinson County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

-11 -

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 1998 tax year (calendar year) for the Wilkinson County Board ofEducation was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations SALES TAXES

=15.25 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 $1,167,980.36 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $6,134,862.77 has been collected or on March 31, 2003, whichever occurs first.

INVENTORIES

FOOD lNVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations offund 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 o~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.

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WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES
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 of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation ofthis data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code ofGeorgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the 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. 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 ofor any combination ofthe following:
(1) Surety bond signed by a surety company dilly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations ofthe United States or of the State ofGeorgia,
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations ofthe counties or municipalities ofthe State ofGeorgia,
(5) Bonds ofany public authority created by the laws ofthe State ofGeorgia, providing that the statute that created the authority authorized the use ofthe bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and

-13 -

WILKINSON COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 2: DEPOSITS AND INVESTMENTS

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

CATEGORIZATION OF DEPOSITS At June 30, 1999, the bank balances were $1,055,586.92. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging flD.ancial 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, 1999, as follows:

Risk CategOly

Bank Balance

1

$ 205,403.99

2

751,340.09

3

98.842.84

Total

$ 1.055.586.92

CATEGORIZATION OF INVESTMENTS At June 30, 1999, the carrying value ofthe Board's total investments was $7,562,539.68 which is materially the .same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investmentpolicy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

-14-

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30. 1999

Note 2: DEPOSITS AND INVESTMENTS
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1 operates in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and determines participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year. The weighted average maturity for Georgia Fund 1 on June 30, 1999 was 27 days. The average investment duration for Fund 6 on June 30, 1999 was 1.03 years.
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 of loss 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 of loss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

- 15 -

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1999

Note 4: RISK MANAGEMENT

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

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

1998 1999

$

0.00 $

2.320.00 $

2.320.00 $

0.00

$

0.00 $

1.744.00 $

1.744.00 $

0.00

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

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 50,000.00

Note 5: OPERATING LEASES

Wilkinson County Board ofEducation has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30,
1999, amounted to $53,796.90. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2000 2001 2002 2003

$ 56,203.10 55,000.00 55,000.00 32,083.34

Total

Note 6: GENERAL LONG-TERM DEBT

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

- 16-

WILKINSON COUNTy BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 6: GENERAL LONG-TERM DEBT

Purpose

Interest Rates

Amount

General Government - Series 1998

3.80% - 4.20%

$ 5,000,000.00

The changes in General Long-Tenn Debt during the fiscal year ended June 30, 1999, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 1998

$ 228,424.58 $ 5,000,000.00 $ 5,228,424.58

Deductions Debt Retired

228.424.58

228.424.58

Balance June 30, 1999

$====0==:.0:==0 $ 5,000,000.00 $ 5.000.000.00

At June 30, 1999, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2000 2001 2002 2003 2004

$ 1,002,212,50 1,078,227.50 1,178,161.25 1,256,902.50 1.026.105.00

Total Principal and Interest

$ 5.541.608.75

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $169,658.47 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department ofEducation Paid to the State Merit System ofPersonnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$136,256.47

-17 -

WILKINSON COUNTy BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 1999

Note 7: 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 $33,402.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding constniction or renovation contracts executed by the Board as of June 30, 1999:

Project

Unearned Executed Contracts

Primary/Elementary Addition MiddlelHigh Cafeteria Addition

$ 154,700.00 123,750.00

$ 278.450.00

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

Note 9: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by

grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures

which are disallowed under grant terms. The Board believes that such disallowances, if any, will be

immaterial to its overall financial position.

.

Note 10: RELATED PARTY TRANSACTIONS

During the fiscal year 1999, the Wilkinson County Board ofEducation employed the services ofMixon and Associates, Incorporated, a construction company. Mixon and Associates, Incorporated is owned and operated by Robert B. Mixon, Jr" the father of Robert B. Mixon, III who is currently the Chairman of the Wilkinson County Board ofEducation.

During the year, the following contracts between the Wilkinson County Board ofEducation and Mixon and Associates, Incorporated (low bidder) were executed: .

-18 -

WILKINSON COUNTy BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30.1999

Note 10: RELATED PARTY TRANSACTIONS

A contract for $350,000.00 was signed on July 30, 1998, for a Four-Classroom Addition to Wilkinson County Primary/Elementary School. Current year expenditures were $199,500.00.

A second contract for $250,000.00 was signed on July 30, 1998, for a Cafeteria Addition to Wilkinson County Middle/High School. Change Order Number One decreased this contract amount to $245,250.00. Current year expenditures were $124,500.00.

The Wilkinson County Board of Education also employed the services of James S. Price Construction Company for various small construction/renovation projects. This company is owned and operated by James S. Price, the husband of Linda Price who is currently the Assistant Bookkeeper for the Wilkinson County Board ofEducation. These projects were not for services nonnally secured through a bid procedure. Current year expenditures were $156,976.00.

Note 11: 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 of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.95% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

1999 1998 1997

100% 100% 100%

$ 865,187.64 $ 800,590.99 $ 771,807.15

- 19-

WILKINSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1999

EXHIBIT"E"

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

SCHOOL FOOD
SERVICES FUND

LOTIERY

FEDERAL

TOTALS

PROGRAMS PROGRAMS JUNE 30,1999 JUNE 30, 1998

$ 165,292.78 $ 51,923.72

$ 217,216.50 $ 318,255.71

2,299.84

2,798.78 $ 169,970.90

175,069.52

343,019.17

14,122.73 1,915.45

14,122.73 1,915.45

11,742.24 2,587.70

$ 183,630.80 $ 54,722.50 $ 169,970.90 $ 408,324.20 $ 675,604.82

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$ 103,685.47 $

$ 14,951.16 $ 11,690.20

13,974.23

40,579.85

43,032.30

52,311.20

$ 55,531.01 $ 54,722.50 $ 169,970.90 $

$ 14,122.73
1,915.45
112,061.61 $
$ 128,099.79 $

0.00 $ 0.00 $

$
0.00
0.00 $

103,685.47 $
40,615.59 135,923.35
280,224.41 $
14,122.73 $
1,915.45 112,061.61
128,099.79 $

213,773.96 25,841.92
123,651.75 363,267.63
11,742.24 2,587.70
298,007.25 312,337.19

Total Liabilities and Fund Equity

$ 183,630.80 $ 54,722.50 $ 169,970.90 $ 408,324.20 $ 675,604.82

See notes to the general purpose financial statements.

-20-

WILKINSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30,1999

EXHIBIT"P

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Debt Service Principal Interest
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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30,1999 JUNE 30,1998

$ 54,207.00 $ 391,198.35 $ 27,930.00 $ 473,335.35 $ 414,478.49

549,933.04

877,602.08

1,427,535.12

1,225,144.05

193,612.61

5,000.00

198,612,61

186,673.87

$ 797,752,65 $ 391,198.35 $ 910,532,08 $ 2,099,483.08 $ 1,826,296.41

$ 316,278,47 $ 653,100.13 $ 969,378.60 $ 733,782,84

$ 983,698.29

32,087.26 1,086.90
226.08 3,377.50
868.02

67,516.20 49,274.77 91,048.28
28,086.14 21,554.56

99,603,46 50,361.67 91,048.28
28,312.22 24,932.06 984,566.31

62,004.33 90,579.89 56,448.15
750.00 5,700.02 35,559.92 860,448.22

35,231.13 2,113.87

35,231.13 2,113.87

47,169.60 5,830.40

$ 983,698.29 $ 391,269.23 $ 910,580.08 $ 2,285,547.60 $ 1,898,273.37

$ -185,945.64 $

-70.88 $

-48.00 $ -186,064.52 $ -71,976.96

$ -185,945.64 $
312,337.19
2,380.49 -672.25

70.88
0.00 $
0.00

48.00

118,88

0.00 $ -185,945.64 $

0.00

312,337.19

-71,976.96 379,948.23

2,380.49 -672.25

3,257.26 1,108.66

FUND BALANCE JUNE 30

$ 128,099.79 $

0.00 $

0.00 $ 128,099.79 $ 312,337.19

See notes to the general purpose financial statements.

-21-

WILKINSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAl PROJECTS FUND JUNE 30, 1999

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

BOND PROCEEDS

SPECiAl PURPOSE LOCAl OPTION SAlES TAX

TOTAlS JUNE 30, 1999 JUNE 30,1998

$

459.86 $

4,844.75 $ 5,304,61 $

296.34

4,679,063.88

777,048,15 5,456,112,03 4,900,101.57

187,119,91

187,119.91

22,324.45

$ 4,679,523.74 $ 969,012,81 $ 5,648,536.55 $ 4,922,722.36

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable Retainages Payable
Total liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated
Total Fund Equity
Total liabilities and Fund Equity

$ 53,150.00 22.450.00
$ 75,600.00

$ 53,150.00 22.450,00
$ 75,600.00

$ 4,603,923.74 $
0.00
$ 4,603.923.74 $

$ 4.603,923.74 $ 4,922,722.36

969,012.81

969,012.81

0.00

0.00

0.00

969.012.81 $ 5,572,936.55 $ 4,922,722.36

$ 4,679,523.74 $ 969,012.81 $ 5,648,536.55 $ 4,922.722.36

See notes to the general purpose financial statements.

-22-

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30,1999

FUND BALANCE JUNE 30

$ 4,603,923.74 $ 969,012.81 $ 5,572,936.55 $ 4,922,722.36

See notes to the general purpose financial statements.

-23-

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 1999

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1999 Grant National School Lunch Program 1999 Grant
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1999 Contract
Total U. S. Department of Agriculture
Corporation for National and Community Service Pass-Through From Georgia Department of Education Leam and Serve America School and Community Based Programs 1999 Grant
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 1999 Grant Preschool 1999 Grant Capacity Building Improvement Grant 1999 Grant
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Tille I
Grants to Local Educational Agencies
1999 Grant Tille II
Eisenhower Professional Development 1999 Grant
Innovation Program Developmental Grant 1999 Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

* 10.553 * 10.555

NlA $ N/A
$

134,866.67 369,897.16 $ 504,763.83 $

(2) 942,492.43 (3) 942,492.43

10.550

N/A

41,205.86

41,205.86

10.558

NlA $

3,963.35 549,933.04 $.

(2) 983,698.29

94.004

NlA $

3.450.49 $

3.450.49

84.027 84.173 84.173

NlA $ NlA NlA
$

119,929.00 $ 23,209.63
221.00 143,359.63 $

119,929.00 23,209.63 221.00 143,359.63

84.010

NlA

84.281

NlA

84.281

NlA

-24-

385,448.76
9,263.80 44,793.85

390,496.76 (3)
9,263.80 44,793.85

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1999

Total Federal Financial Assistance
= NJA Not Available

$ 1,468,123.98 $

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represent the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the ament fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are induded in the 1999 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 Subredpienl

The accompanying schedule of expenditures of Federal awards indudes the Federal grant activity of the Wilkinson 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.

1,894,278.37

see notes to the general purpose finandal statements.

-25-

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1999

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost Pupil Transportation Regular Bus Replacement Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Grades 4 and 5 Technology Specialist Local Fair Share Educational Equalization Funding Grant Food Services Other State Programs Alternative Program At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentoring Program Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Student Records Lottery Program Computers in the Classroom
Georgia Council for the Arts Georgia Challenge Grant
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4,284,895.00 791,912.00 135,631.00 182,339.00 48,887.00
1,169,050:00
399,576.00 129,911.00 161,230.00 210,289.00 91,336.00
18,133.00 28,842.00 -1,160,922.00 271,594.00
$
68,400.00 7,502.64 500.00
136,256.47 5,000.00 7,463.45 2,430.00
27,374.00 5,556.07 1,405.50

$ 4,284,895.00 791,912.00 135,631.00 182,339.00 48,887.00
1,169,050.00

54,207.00

399,576.00 129,911.00 161,230.00 210,289.00 91,336.00
18,133.00 28,842.00 -1,160,922.00 271,594.00 54,207.00

68,400.00 7,502.64 500.00
136,256.47 5,000.00 7,463.45 2,430.00
27,374.00 5,556.07 1,405.50

40,143.78

40,143.78

12,000.00

12,000.00

351,054.57

351,054.57

33,402.00

33,402.00

27,930.00

27,930.00

see notes to the general purpose financial statements.

$ 7,069,993.13 $

473,335.35 $ 7,543,328.48

-26-

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30.1999

SCHEDULE "3"

PROJECT
Wilkinson County Board of Education Acquisition, construction and equipping of laboratory facilities at Wilkinson County High School consisting of one (1) Technology Lab, two (2) Business/ Vocational Labs, one (1) English Lab and one (1) Mathematics Lab; acquisition, construction and equipping of a new 700 fixed-seat auditorium facility; acquisition, construction and equipping of a new classroom wing at the Wilkinson County Primary School; acquiring, constructing and equipping and adding to, renovating, repairing, improving and equipping instructional and support facilities, existing school buildings and other buildings and facilities useful or desirable in connection therewith; and acquiring any necessary property therefor, both real and personal, and acquiring any necessary or desirable rights in connection therewith

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 7,500,000.00 $ 5,748,407.00 $ 747,324.06 $ 12,270.00

(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 Wilkinson County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the general purpose financial statements.

.-27-

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE 30,1999

SCHEDULE "4"

EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Student Transportation Services Other Support Services Food Services Operation
Debt Service

COMPUTERS IN THE CLASSROOM

PRE-KINDERGARTEN PROGRAM

TOTAL

$

2,798.78 $

37,345.00

313,479.69 $ 316,278.47

32,087.26 1,086.90 226.08 3,377.50 868.02

32,087.26 1,086.90 226.08 3,377.50 868.02
37,345.00

Total Expenditures

$

40,143.78 $======3.5.1.=,1=2=5=.4.5... $ 391,269.23

RECAP: Salaries and Benefits Pre-Kindergarten Program Other Expenditures Computers in the Classroom Pre-Kindergarten Program

$

320,082.65

40,143.78 31,042.80

$

391,269.23

See notes to the general purpose financial statements.

-28 -

WILKINSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1999

SCHEDULE "5"

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

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

5.394.777.00 $ _ _...;1:.;,5.;:;.!3,=.:00;,;:;6=.0.:.0

$

5.931.524.64

496,049.26 $

$

6,427.573.90

4:.::.5..:...17,,=..:33:..;4=.2~4

-15.441.63 $ _ _..;.6:.;.,4..;.;12;.:.1.;.;3=2.=2.;..7

$

0.00 $=====0=:.0=0

See notes to the general purpose financial statements. - 29 -

WILKINSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 1999

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten C*) Grades 1 - 3 r) Sub-Total - K-3 Grades 4 - 5 C*) Grades 6 - 8 C*) Grades 9 - 12 C*) High School Laboratories C*) Vocational Education Laboratories C*) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS RegUlar Programs Category 1/ C*) Category 1/1 C*) Category IV C*) Sub-Total - Regular Category VI CGifted) r) Total Special Education Programs
REMEDIAL EDUCATION PROGRAM C*) Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL ~

ORIGINAL

MID-TERM

$

434.500.00

$

391.050.00 $

0.00

1.223.739.00

1.101,365.10

$ 1.658.239.00 90 $ 1.492.415.10 $

0.00

540.389.00 90

486.350,10

975.683.00 90

878.114.70

558.084.00 90

502.275.60

353.211.00 90

317.889.90

199,289.00 90

179.360.10

$ 4.284.895.00

$ 3.856,405.50 $

0.00

$

749.140,00

$

674,226.00 $

0.00

$

749.140,00 90 $

674.226.00 $

0.00

42.n2.00 90

38.494.80

$

791.912.00

$

712.720,80 $

0.00

$

135.631.00 90 $

122.067.90 $

0.00

$ 5.212.438.00

$ 4.691.194.20 $

0,00

$

146.085.00 90 $

131.476,50 $

0.00

36,254.00 100

36.254,00

$

182.339,00

$

167.730.50 $

0.00

Total Fourteen Weighted and Media center Programs

$ 5.394.m.00

$ 4.858.924,70 $

0.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs
r> Identifies Fourteen Weighted Programs.
see notes to the general purpose financial statements.

$

15.423.00

33.464.00

$

15.423.00 $

33,464.00

$

48.887.00 100 $

48.887.00 $

0.00 0.00
...0.0..0.

30

SCHEDULE "6"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

391,050.00 $

375,968.15 $

9,096.63 $

385,064.78

1,101,365.10

1,274,443.00

69,726.64

1,344,169.64

$ 1,492,415.10 $ 1,650,411.15 $

78,823.27 $ 1,729,234.42 $

0.00

486,350.10

618,728.91

25,540.94

644,269.85

0.00

878,114.70

921,254.84

58,202.02

979,456.86

0.00

502,275.60

773,746.46

88,343.13

862,089.59

0.00

317.889.90

249,434.91

139,222.12

388,657.03

0.00

179,360.10

324,971.69

38,621.50

363,593.19

0.00

$ 3,856,405.50 $ 4.538,547.96 $

428.752.98 $ 4.967.300.94

$

674.226.00

$

351,050.19 $ 464,035.62
72,869.03

1.536.92 $ 24,659.35
895.19

352.587.11 488,694.97
73,764.22

$

674,226.00 $

887.954.84 $

27.091.46 $

915.046.30

0.00

38,494.80

68.939.01

494.03

69,433.04

0.00

$

712,720.80 $

956.893.85 $

27.585.49 $

984,479.34

$

122,067.90 $

277,017.22 $

995.77 $

278.012.99

0.00

$ 4,691,194.20 $ 5,772,459.03 $

457.334.24 $ 6,229,793.27

$

131.476.50 $

36.254.00

$

167.730.50 $

159.065.61

$

$ _ _..;:;3;;.:8.;..71;.;;5;:.;:.0;;;.2

159.065.61 38,715.02

159.065.61 $

38,715.02 $ _.....;1~97'-'.7.:.;:80=.6.:.3

$ 4.858,924.70 $ 5.931,524.64 $

496,049.26 $ 6.427.573.90 $

0.00 0.00

....

0.;,;;,00.

$

15,423.00

33.464.00

$ _ _.4..8.....8.8.7..,.0.0..

$

36,384.06 $

36,384.06

26,428.10

26,428.10

$

62,812.16 $

62,812.16 $

....0..0.0.

31

SECTIONn COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 11, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Wilkinson 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 Wilkinson County Board of Education as of and for the year ended June 30, 1999, and have issued our report thereon dated April 11, 2000. 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 ofthe United States.
Compliance
As part of obtaining reasonable assurance about whether Wilkinson County Board of Education's financial statements are free ofmaterial misstatement, we performed tests ofits compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination 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 of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards.
Internal Control OVer Financial Re.porting
In planning and performing our audit, we considered Wilkinson County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financiaI reporting. However, we noted certain matters involving the internal control over financial reporting and its
99YB-40

operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect Wilkinson County Board of Education's ability to record, process, summarize and report financial data consistent with assertions ofmanagement in the financial statements. Reportable conditions are described in the accompanying Schedule of Findings and Questioned Costs as items FS-7581-99-01 and FS-7581-99-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be materialin relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. Our consideration 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, all ofthe reportable conditions described above are also considered to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members ofthe Wilkinson 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.~ Russell W. Hinton State Auditor
RWH:gp 99YB-40

RUSSELL W. HINTON
STATE AUDITOR (404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w', Suite 214 Atlanta, Georgia 30334-8400
April 11, 2000

Honorable Roy E. Barnes, Governor Members of the General Assembly Members ofthe State Board of Education
and Superintendent and Members of the Wilkinson County Board ofEducation
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MNOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRClJLARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Wilkinson County Board of Education with the types of compliance
u.s. requirements described in the Office ofManagement and Budget (OMB) Circular A-i33 Compliance
Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1999. Wilkinson County Board ofEducation's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Wilkinson County Board of Education's management. Our responsibility is to express an opinion on Wilkinson County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditin~ Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Wilkinson County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Wilkinson County Board of Education's compliance with those requirements.

99SA-IO

In our opinion, the Wilkinson County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1999.
Internal Control Over Compliance
The management of Wilkinson County Board ofEducation 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 Wilkinson County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be
material in relation to a major Federal program being audited may occur and not be detected within a timely
period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofmanagement, members ofthe Wilkinson 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.~ Russell W. Hinton State Auditor
RWH:gp
99SA-IO

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

WILKINSON COUNTY BOARD OF EDUCATION
AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7581-97-01 FS-7581-97-02 FS-7581-98-01 FS-7581-98-02

Further Action Not Warranted Further Action Not Warranted Partially Resolved - See Corrective ActionlResponses Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Control Procedures Finding Control Number: FS-7581-98-01

Bank reconciliations (except for School Food Services) are now reviewed by the Superintendent. Also the Board receives a report every month reporting "cash on hand." Deposits are now -prepared and made by someone other than the person responsible for the general ledger posting function. The bookkeeper has no contact with checks or cash that are brought in to the Board. As for School Food Services, each cashier counts her own cash. The head cashier then runs a report, recounts the cash and compares it to the report. The deposits from the Middle/High School are then recounted and verified at the Primary/Elementary School. The deposits from the Primary/Elementary School are verified to the daily report by the School Food Services bookkeeper. The cash is put in the bags and carried to the bank by the head cashier. The checkreconciliation function for School Food Services is still not separated from the general ledger posting and check preparation functions. Also
the portion ofthe finding referring to journal.entries will remain unresolved for this fiscal year. We
will look into the possibility ofhaving the Superintendent approve the journal entries.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7581-98-02

The Board is currently doing an inventory ofthe entire system - everything. We have hired a C.P.A. firm to assist in this process. They are getting the historical costs and helping to set up the inventory system. We are also in the process of getting a central receiving warehouse with a fulltime clerk for keeping up with new purchases and keeping the inventory up-to-date. All shipping will then be done to this location instead ofto each individual school.

SECTION IV FINDINGS AND QUESTIONED COSTS

WllJ(INSON COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999

I SUMMARy OF AUDITOR'S RESULTS

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

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

Cash and Cash Equivalents General Fixed Assets

General Ledger

All of the reportable conditions described above are considered to be material weaknesses.

3. Noncompliance Material to the Financial Statements The audit ofthe Wilkinson County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Re.portable Conditions in Internal Control Over Major Programs The audit report for the Wilkinson County Board of Education did not disclose any reportable conditions in internal control over major programs.

5. Type ofRe.port Issued on Compliance for Major Programs The auditor's opinion on the Wilkinson County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Reqyired to be Re.ported by Section ,510(8) ofOMB Circular A-133 The Wilkinson County Board of Education's audit did not disclose audit findings required to be reported by section .5lO(a) ofOMB Circular A-I33,

7. Major Programs Federal awards audited as major programs are as follows: 10,550 Food and Nutrition Program - Food Distribution Program 10,553 Food and Nutrition Program - Food Services - School Breakfast Program 10,555 Food and Nutrition Program - Food Services - National School Lunch Program

8, ~e "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000,00.

9. Low Risk Auditee
The Wilkinson County Board ofEducation did not qualify as a low risk auditee as defined by Section
,530 ofOMB Circular A-I33.

-I -

WILKINSON COUNTy BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 3D. 1999
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Control Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7581-99-01
A review of the Board's internal control policies and procedures noted deficiencies in providing for adequate internal control over the following functions and related procedures:
For the School Food Services Program, the bank reconciliation function was not separated from the general ledger posting and checkpreparation functions. In addition, the bank reconciliations were not reviewed by an individual independent of cash operations.
For all programs, the journal entries are not supported by adequate documentation and/or explanations. In addition, journal entries were not reviewed and approved by someone independent ofjournal entry preparation and posting.
These conditions were a result of management's decision to limit the number of administrative staff made responsible for accounting functions in these areas. The Board should review the accounting procedures in place, design procedures which would enhance segregation of duties relative to the above control categories and implement those procedures to strengthen the internal control over the accounting functions.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7581-99-02
The Wilkinson County Board ofEducation failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
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