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

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WILKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHffiITS

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

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

31

5

BY PROGRAM

32

WILKINSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
April 4, 2001

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
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, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility ofthe Wilkinson 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as 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 conf.orm 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 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 purpos'e 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 Wilkinson 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 4, 2001, on our consideration of the Wilkinson County Board of Education's internal control over financial reporting and our tests of its compliance with c.ertain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Wilkinson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non"'Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general purpose fi~ancial statements taken as a whole.
2000ARL-13

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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.
Respectfully submitted,

RWH:gp 2000ARL-13

Ru sell W. Hinton State Auditor

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WILKINSON COUNTY BOARD OF EDUCATION

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

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

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

100,571.32 $

20,407,09 $

2,553.10

2,014,924.29

5,545,071.33

175,512,58

223,520.60

181,492.64

12,675.44 2,447.62

$ 2j291,008.19 $

259,050.75 $ .....-:5ilo,7=2=9:=,;,1.1.7;.;.=0.7..

EXHIBIT nAn '

DEBT SERVICE
FUND

$

0.00

ACCOUNT, GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2000

JUNE 30,1999

$

123,531.51 $

289,340.18

7,559,995.62

7,562,539.68

580,525.82'

489,209.37

- - - - - $ 4,185,000.00

12,675.44 2,447.62
4,185,000.00

,14,122.73 1,915.45
247,656.96
4,752,343.04

$

0.00 $ 4,185,000.00 $ 12,464,176.01 $ ~3,357,127.41

$

48,329.08 $

46,853.67

157,070.71

135,923.35

137,899.10

53,150.00

33,814.80

22,450.00

$ 4,185,000.00

4,185,000.00

5,000,000.00

$ 4,185,000.00 $ 4,562,113.69 $ 5,258,377.02

$

0.00

$

0.00

$

158,414.20 $

28,365.20

247,656.96

12,675.44 2,447.62 4,012,838.91 1,544,564.26

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

2,171,121.89

2,233,753.50

$ 7,902,062.32 $ 8,098,750.39

$

0.00 $ 4,185,000.00 $ 12,464,176.01 $ 13,357,127.41

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WILKINSON 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 Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in P~riod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL . REVENUE
FUND

$ 6,834,263.58 $ 38,501.61
4,542,997 ..62 305,847.08
$ 11,721,609.89 $

487,419.50 1,696,250.04
205,628.58
2,389,298.12

$ 7,247,341.84 $ 1,004,070.91

515,337.28 300,273.64 229,186.72 270,232.95 743,989.67 . 127,402.65 1,222,882.40 664,140.47
15,998.62 2,905.99 227,332.15

136,234.69 224,570.63
105,599.36 526.10
1,613.35 2,524.49 54,955.57 903,575.84 22,678.30

$ 11,567,024.38 $ $ . 154,585.51 $

2,456,349.24 -67,051.12

$

-20,117.00

$

-20,117.00

$

134,468.51 $

2,150,057.09

-67,051.12 128,099.79
-1,447.29 532.17

FUND BALANCE JUNE 30

$ 2,284,525.60 $ ===6=0=,1=33=.5=:5...

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

$ 7,321,683.08 $ 7,543,328.48

1,734,751.65

1,468,123.98

$

532,288.30 $

754,555.54

5,829,841.46

5,555,754.21

290,267.83

801,743.49

642,078.37

$

822,556.13 $

754,555.54 $ 15,688,019.68 $ 15,209,285.04

$ 8,251,412.75 $ 8,036,631.67

$

858,206.51

651,571.97 524,844.27 229,186.72 375,832.31 744,515.77 127,402.65 1,224,495.75 666,664.96
70,954.19 906,481.83 1,108,216.96

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

$

815,000.00

187,212.50

815,000.00 187,212.50

228,424.58 191,506.55
12.00

$

858,206.51 $ 1,002,212.50 $ 15,883,792.63 $ 14,447,869.45

$

-35,650.38 $

-247,656;96 $

-195,n2.95 $

761,415.59

$

20,117.00

$

20,117.00

$

20,117.00 $

-20,117.00

$

0.00 $

118.88 -118.88
0.00

$

-15,533.38 $

5,572,936.55

-247,656.96 $ 247,656.96

-195,n2.95 $ 8,098,750.39

761,415.59 7,335,626.56

-1,447.29 532.17.

2,380.49 -672.25

$ 5,557,403.17 $=======,0....0..0.,= $ _ 7,902,062.32 $ 8,098,750.39

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WILKINSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NONGAAP 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-

_ , WILKINSON COUNTY BOARD' OF EDUCAnON _

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

'JUNE'.jO,2()OO

, Notel:' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Wilkinson 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 qtherentity.

Accordingly, the Board is a primary government and consists of all the organizations that compose

its legal entity.

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FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A
fund is a separate accounting entity with a self-balancing set of accounts. An account group is a
financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available' financial resources,
General Fixed Assets are recorded-as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. ,To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.

Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities'and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements.

The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the 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 he accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

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WILKINSON 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 - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account forthe 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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. 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 ofaccounting under which:
. Revenues are recognized when susceptible to accrual (i.e., when theybecome 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
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WILKINSON COUNTY BOARD OF EDUCATION

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000,

EXHffiIT tiD"

Note 1: SUMMARY OF SIGNIFICANT'ACC'OUNTING POLICIES -

period beginning in late August 1999 and ending in early JUrie'lOOO. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September .1999 and ending in August 2000. State grants to. fund the State's share of these .contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two 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 of the 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 contractualseIirices 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 Wilkinson County Board of Education's budget is a complete finanCial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget 'control was established by the Board at the aggregate leveL The budget for governmental funds was prepared on a basis other than generally accepted accounting principles,

The budget process begins when the 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 ofthe Board after advertisemcimt,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 of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Departm~ilt of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

.CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS .

Cash and cash equivalents consist of 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.

-

.

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WILKINSON COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCiAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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,
(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 npt 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 1999 tax year (calendar year) on October 14, 1999 (levy date). Taxes were due on December 31, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within
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WILKINSON COUNTY BOARD OF EDUCATION

EXHmIT "D"

. NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS.

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .

60 days after year-end are reported as revenue in fiscal year 2000. 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.oftaxes collected to the Board.

.The tax millage rate levied for the 1999 tax year (~alendar year) for the Wilkinson County Board of Education was as follows (a mill equals $I'per thousand dollars ofassess~d 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

revenu. e

during

the

fiscal

year

amounted

to

$1,286,843.84 and was recorded in the Capital Projects and Debt Service Funds. The State will

terminate collection ofthis t~ once an additional $4,848,018.93 has been collected or on March 31,

2003, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value..Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time cOJI11llodity items are received. Purchased foods inventories are recorded as expenditures atthe 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 ~tayailable spendable re~ourcestl even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds forthe acquisition and construction of major capital facilities. Bond premilnlls 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 creditofthe government. The o\ltstanding amount 9fthese . bonds is recorded in.the'General Long,.Term Debt Account Gro,up..

INTERFUND TRANSACTIONS

The Board has the following types of interfund transactions: '. : -, ~
.\

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WILKINSON COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for.a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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 amountofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety.bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes,-certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(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,

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WILKINSON COUNTY BOARD OFEDUCATION

EXHillIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

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

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

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $980,413.45. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with
securities held by the Board or by the Board's agent in the Board's name. ,Category 2 - ,Cash collateralized with securiti~s 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 se.curities held by the pledging financial institution, or by its trust
departme~t ot agent but ,not in the Board's name,)

The Board's deposits are classified by 'riskcategory at June 30, 2000, as follows:

Risk Category

. ,~~ \
Bank Balance

1

; $ 201,658.16

2

774,667.28

3

4,088.01

Total

$ 980.413.45

CATEGORIZATION OF INVESTMENTS . ". At June 30, 2000, the carrying value of the Board's totalinvestments was $7;559,995,62 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 he categorized since the Board did not own any specific
identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury . and Fiscal Services for the Local Government Investnient Pool (Primary Liquidity Portfolio) does
not provide for investment inderivatives or similar investments: A ,description of the Primary . Liquidity 'Portfolio is.as follows: .

- 14-

WILKINSON COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

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. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. 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 values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe 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. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
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 commercialinsurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees arid 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 of the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

- 15 -

. WILKINSON COUNTY BOARD OF EDUCATION

.EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

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

follows: .

.'

1999 2000

Beginning of Year . Liability

Claims and Changes in Estimates

$

0.00 $

1,744.00 $

$

0.00 $ . 1,968.00 $

Claims P.a.id

End of Year Liability

1,744.00 $

0.00

1,968.00 $

0.00

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

Position Covered

Amount

All Employees

. $ 50,000.00

Note 5:. OPERATING LEASES

.

.

.

.

Wilkinson County Board of Education 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, 2000, amounted to $54;938.69. Future minirp.um lease payments for these leases are

as follows:

.

Year Ending

Amount

2001 2002 2003 2004 2005
Total"

$ 63,141.60 63;141.60 45,489.40 8,148.00 4,167.15
$ 184.087.75

Note 6: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING. Ge?eral O~ligatio;n Bonds currently ou~standing are as follows:

Purpose

. Interest Rates

: General Government ~ Series ~ 998

'3.80% - 4.2Q%

Amount $ 4.185.000.00

- 16-

WILKINSON COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000 .

Note 6: GENERAL LONG-TERM DEBT

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

General Obligation
Bonds

Balance July 1, 1999

$ 5,000,000.00

Deductions Debt Retired

815,000.00

Balance June 30, 2000

$ 4.185.000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

2001 2002 2003 2004

$ 1,078,227.50 1,178,161.25 1,256,902.50 1,026,105.00

Total Principal and Interest

$ 4.539396.25

Note 7: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of $162,134.86 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 Personnel In the amountof$126,506.86

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 $35,628.00

.

- 17 -

WILKINSON COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note8: SIGNIFICANT COMMITMENTS
The following is an' analysis of ~ignificantoutstanding constniction or renovation contracts executed . by the Board as of June 30, 2000:

Project

Unearned Executed Contracts

High School Classroom Addition

$ 1.482.403.10

Theamount described in this note is 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 2000, the Wilkinson County Board of Education employed the services of Mixon & Associates, Incorporated, a construction company. Mixon & Associates; Incorporated is owned and operated by Robert B. Mixon, Jr., the father of Robert B. Mixon, III who was the Chairman ofthe Wilkinson County Board of Education during the fiscal year under review.

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

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 $150,500.00.
A second contractfor $250,000.00 was signed onJuly 30, 1998, for a Cafeteria Addition to
Wilkinson County Middle/High School. Change Orders decreased this contract amount to $244,902.24. Current year expenditures were $120,402.24.

A third contract for $26,900,00 was signed on May 2, 2000, for a Medical Training Center at the Wilkinson County High School. Change Orders increased this contract amount to $33,567.00. Current year expenditures were $33,567.00.

Mixon & Associates, Incorporated W3$ also pa.id $16,500.00 for constructing a retaining wall at the Wilkinson County High School on which bids. were not accepted..

. - 18-

WILKINSON COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 10: RELATED PARTY TRANSACTIONS

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 of Education. These projects were not for services normally secured through a bid procedure. Current year expenditures were $100,597.50.

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

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100% 100% 100%

$ 848,379.37 $ 865,187.64 $ 800,590.99

- 19-

'..
WILKINSON 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

LOTTERY PROGRAMS

$

93,686.71 $

48,204.39

4,167.56

5,618.91

12,675.44 2,447.62

Total Assets

$

112,977.33 $ = =...5.=3=,8=2=3..3..0.==

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
Total Liabilities and Fund Equity

$

8,901.16 $' .

12,076.08

43,942.62

41,747.22

$

52,843.78 $

53,823.30

$

12,675.44

2,447.62

45,010.49 $

$

60,133.55 $

0.00 0.00

$

112,977.33 $=='...5.=3=,8=2=3..3..0. ==

See notes to the general purpose fin'ancial statements. . . - 20-

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30,1999

$

141,891.10 $

217,216.50

$

213,734.13

223,520.60

175,069.52

12,675.44 2,447.62

14,122.73 1,915.45

$

213,734.13 $

380,534.76 $ ======4=08=,3=2=4.=:20=

$

121,484.01 $

121,484.01 $ . 103,685.47

20,869.25

41,846.49

40,615.59

71,380.87

157,070.71

135,923.35

$

213,734.13 $

320,401.21 $

280,224.41

$

12,675.44 $

14,122.73

2,447.62

1,915.45

$

---'0:;.;.;.0;:;.;;0'-

45,010.49

112,061.61

$

. 0.00 $

60,133.55 . $ _ _1.:.,:2:.::;8.r.::,O.::;99::.:,.7.:.,:9::..

$

213,734.13 $

380,534.76 $==4=0=8=,3=24=.2=0=

- 21 -

WILKINSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000

FUND BALANCE JUNE 30
See notes to the general purpose financial statements, > - 22-

$

60,133.55 $ ====0;;;,;,=00==

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30,1999

$

487,419.50 $

473,335.35

$ 1,120,678.19

1,696,250.04

1,427,535.12

205,628.58

198,612.61

$ 1,120,678.19 $ 2,389,298.12 $ 2,099,483.08

$

633,422.20 $ 1,004,070.91 $

969,378.60

136,234.69 224,098.80 103,886.77
526.10 1,613.35 2,233.81 18,662.47

136,234.69 224,570.63 105,599.36
526.10 1,613.35 2,524.49 54,955.57 903,575.84 22,678.30

99,603.46 50,361.67 91,048.28
28,312.22 24,932.06 984,566.31

35,231.13 . 2,113.87

$ 1,120,678.19 $ 2,456,349.24 $ 2,285,547.60

$

0.00 $

-67,051.12 $ -186,064.52

118.88

$

0.00 $

-67,051.12 $ -185,945.64

0.00

128,099.79

312,337.19

-1,447.29 532.17

2,380.49 -672.25

$

0.00 $

60,133.55 $==;=1=2=8=,0.9.9.;;,;,.7..9....

- 23-

WILKINSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2000

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2000 .. JUNE 30, 1999

$

1,164.86 $

1,388.24 $

2,553.10 $

5,304.61

4,183,387.95

1,361,683.38

5,545,071.33

5,456,112.03

181,492.64

181,492.64

187,119.91

$ 4,184,552.81 $ 1,544,564.26 $ 5,729,117.07$ 5,648,536.55

"'I

See notes to the general purpose financial statements.

.- 24-

WILKINSON COUNTY BOARD OF EDUCATION

EXHIBIT "H"

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

YEAR ENDED JUNE 30, 2000

FUND BALANCE JUNE 30

$ 4,012.838.91 $ 1,544.564.26 $ 5,557,403.17 $ 5.572,936,55

See notes to the general purpose financial statements,

- 25-

WILKINSON COUNTY BOARD'OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS'
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT '

CFDA NUMBER

PASS THROUGH
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

N/A $ 138,245.69

N/A

396,840.44 $

$ 535,086.13 $

(2) 862,471.83 (3)
862,471.83

Other Programs Pass-Through From Georgia Department of Education' Food and Nutrition Program,. Food Distribution Program (1)

, 10.550

Total U. S. Department of Agriculture

N/A

40,485.72

40,485.72

$ 575,571.85 $' .902,957.55

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

., 94.004

...

N/A

$

2,049,51 $

2,049.51

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 Capacity Building Improvement Grant

84.027 84.173 84.173

N/A $ 120,495.62 $

NlA

16,145.43

NlA

7,033.60

120,495.62 16,145.43 7,033.60

Total Special Education Cluster

$ 143,674.65 $

143,674.65

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I Grants to Local Educational Agencies
Title II

84.010

N/A

Eisenhower Professional Development

84.281

NlA

Title III

Technology Literacy Challenge Fund Grants

84.318

N/A

Title VI

Innovative Education Program Strategies

84.298

N/A

Class Size Reduction

84.340

NlA

Goals 2000

State and Local Education Systemic Improvement

Grants

84.276

N/A

Safe and Drug-Free Schools

84.186

N/A

Vocationa.1 Education - Basic Grants to States

High School Program

Basic Grant

84.048

NlA

472,714.26 22,859.04 102,294.85 13,786.00 62,626.00
105,310.59 168,247.29
27,116.00

472,714.26 22,859.04 102,294.85 13,786.00 62,626.00
105,310.59 168,247.29
27,116.00

Total U. S. Department of Education

$ 1,118,628.68 $ 1,118,628.68

- 26-

WILKINSON 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 ID
NUMBER

FEDERAL REVENUE IN PERIOD

Justice, U. S. Department of Pass-Through From Children and Youth Coordinating Council Juvenile Justice and Delinquency Prevention Program Subgrant No. 97J-14-9704-0025

16.540

N/A

$ 38,501.61

EXPENDITURES IN PERIOD
(4)

Total Federal Financial Assistance

$ 1,734,751.65. $ 2,023.635.74

N/A = Not Available

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 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 (0) in front of the CFDA number.

The Board did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards 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.

See notes to the general purpose financial statements.

- 27-

WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

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 Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Other State Programs Altemative Program At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Preschool Handicapped Program Remedial Summer School Program Lottery Program Assistive Technology 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 Georgia's Reading Challenge

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 4,132,638.00
820,722,00 173,201.00 177,871.00
46,827.00 1,118,693.00

$ 4,132,638.00
820,722.00 173,201.00 177,871,00
46,827.00 1,118,693.00

398,469.00 130,049.00 157,033.00 166,064.00
71,214.00 ' 93,022.00 18,173.00 28,842.00 -1,325,520.00 231,592.00
$

54,706.00

398,469.00 130,049.00 157,033.00 166,064.00
71,214.00 93,022.00 18,173.00 28,842.00 -1,325,520.00 231,592.00 54,706.00

58,140.00 8,342.89
126,506.86 5,000.00 8,998.23
28,366.00 4,580.60

58,140.00 8,342.89
126,506.86 5,000.00 8,998.23
28,366.00 4,580.60

3,761.80 53,000.00

3..761.80 53,000.00

5,000.00

5,000.00

375,951.70

375,951.70

35,628.00

35,628.00

114,811.00

114,811.00

$ 6,834,263.58 $ 487,419.50 $ 7,321,683.08
See notes to the general purpose financial statements: - 28-

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

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 $ 5,796,820.79 $ 1,045,178.01 $ 762,594.96

(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. - 29-

',. ' "

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

SCHEDULE "4"

Minimum Expend!lure 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

$

5,397,454.00 $ _ _-.:..:15:;;:3:.:..:;,6;.::5.::.;9.~OO=-

$

5,894,459.56

346,803.98 $ _.....,....._3~0:;;:6~7,...:..7.::.;5.~53=-

$

6,241,263.54

-46,061.38 $ _ _....;;.6'-'-,1.;;.;95""",2=0=2.:..;..1.:::...6

$

0.00 $=====0='0=0

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

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

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (oJ Grades 1 - 3 (oJ Sub-Total - K-3 Grades 4 - 5 (oJ Grades 6 - 8 (0) Grades 9 - 12 (oJ High School Laboratories (oJ Vocational Education Laboratories (0) Total General and Career Education Programs
SPECIAL EDUCATION PROGRAMS Regular Programs Caiegory II (0) Category III (0) Category IV (oJ Category V (0) Sub-Total- Regular Category Vi (Gifted) (oJ Total Special Education Programs
REMEDIAL EDUCATION PROGRAM to) Total Fourteen Weighted Programs
MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

%

ORIGINAL

MID-TERM

$

390,649.00

$

351,584.10 $

1,216,158.00

1,094,542.20

$ 1,606,807.00 90 $ 1,446,126.30 $

541.719.00 90

487,547.10

944,816.00 90

850,334.40

591,761.00 90

532,584.90

166,413.00 90

149,771.70

281,122:00 90

253,009.80

$ 4,132,638.00

$ 3,719,374.20 $

0.00 0.00
93.022.00 93.022.00

$

764.099.00

$

687,689.10 $

0.00

$

764,099.00 90 $

687,689.10 $

56.623.00 90

"' 50,960.70

$

820.722.00

$

738,649.80 $

$

173,201.00 90 $

155,880.90 $

$ 5.126,561.00

$ 4.613,904.90 $

0.00
0.00 0.00 93,022.00

$

143.696.00 90 $

129.326.40 $

34,175.00 100

34.175.00

$

177,871.00

$

163,501.40 $

0.00 0.00

TotalFourteen Weighted and Media Center Programs $ 5,304,432.00

$ 4,777,406.30 $

93,022.00

STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development
Total Staff Development Programs (0) Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.

$

15,201.00

31,626.00

$

15.201.00 $

31.626.00

$

46,827.00 100 $

46,827.00 $

- 32 -

0.00 0.00

SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

351,584.10 $

272,138.38 $

7,517.58 $

279,715.96

1,094,542.20

1,199,970.98

38,175.81

1,238,146.79

$ 1,446,126.30 $ 1,472,109.36 $

45,753.39 $ 1,517,862.75 $

0.00

487,547.10

636,261.13

32,090.60

668,351.73

0.00

850,334.40

992,493.77

76.606.04

1,069.099.81

0.00

532,584.90

627,085.82

63.360.70

690,446.52

0.00

242,793.70

336,101.32

3,696.87

339,798.19

0.00

253,009.80

308,661.92

27,243.80

335,905.72

0.00

$ 3,812.396.20 $ 4,372,713.32 $

248,751.40 $ 4,621,464.72

$

687,689.10

$

430,993.87 $ 457,817.83
77,964.41 17,489.84

4,429.93 $ 51,917.94
1,039.41

435,423.80 509,855.77
79,003.82 17,489.84

$

687,689.10 $

984.325.95 $

57.447.28 $ 1.041.773.23

0.00

50.960.70

73,872.59

453.18

74,325.77

0.00

$

738,649.80 $ 1.058.198.54 $

57,900.46 $ 1,116,099.00 .

$

155,880.90 $

279.643.77 $

123.67 $

279,767.44

0.00

$ 4.706,926.90 $ 5,710.555.63 $

306.775.53 $ 6,017,331.16

$

129,326.40 $

183.903.93

$

183,903.93

0.00

34,175.00

$

40,028.45

40.028.45

0.00

$

163.501.40 $

183,903.93 $

40,028.45 $

223.932.38

$ 4,870,428.30 $ 5,894,459.56 $

346,803.98 $ 6.241,263.54 $

0.00

$

15.201.00

31.626.00

$ =='=46=,8=::2:=7.=00=

$

32,493.31 $

32,493.31

20,853.95

20,853.95

$

53,347.26 $

53,347.26 $=======0=.0:.0

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.,


SECTIONll 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 4, 2001

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 ofWilkinson County Board ofEducation as ofand for the year ended June 30, 2000, and have issued Our report thereon dated April 4, 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 Wilkinson 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 state~ent 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 pc;:rforming our audit, we considered Wilkinson 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 certain matters involving the internal control
2000YB-40

to .. !
. ",
or
":

over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect 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 ofFindings and Questioned Costs as items FS-7581-00-01 and F~-7581-00-02.

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily d'isclose all reportable conditions that are also considered to be material weaknesses. However, all of the 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,

.. ~~_~sell

oo.~.~
W. Hinton

State Auditor

RWH:gp 2000YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta, Georgia 30334-8400
April 4, 2001

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 WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Wilkinson County Board of Education with the types of
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular
A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year en~ed June 30, 2000. Wilkinson County Board ofEducation's major Federal programs are identified in the accompanying Schedule ofFindings 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 ofcompliance in accordance with generally 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 Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 ofEducation's compliance with those requirements.
2000SA-IO
j

In our opinion, the Wilkinson County Board ofEducation 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, 2000.
Internal Control Over Compliance
The management of Wilkinson 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 Wilkinson County Board of Education'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-l33.
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 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.
Respe~tfully submitted,

RWH:gp 2000SA-IO

Ru ell W. Hinton State Auditor

,.

SECTION ill 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, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-7581-98-01 FS-7581-98-02 FS-7581-99-01 FS-7581-99-02

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

CORRECTIVE ACTIONIRESPONSES

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Control Procedures Finding Control Number: FS-7581-99-01

School Food Service bank reconciliations will be reviewed by the superintendent. Due to the fact that there is only one School Food Service Bookkeeper, it is nearly impossible for the bank reconciliation function to be separated from the general ledger posting and check preparation functions. Funds are not currently available to hire additional clerical personnel at this time. Journal entries will be reviewed and approved by the superintendent.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group' Finding Control Number: FS-7581-99';02

The Board is currently taking steps to resolve this finding. A C.P.A. firm has inventoried all items in the system. They are still in the process ofobtaining historical costs and setting up the inventory system. Plans have already been made to construct a central receiving warehouse with a full-time clerk to keep up with new purchases and keep the inventory upto-date. All shipping will then be done to the warehouse instead ofeach individual school.

.' ,

I.,. "

SECTIONN FINDINGS AND QUESTIONED COSTS

WILKINSON 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 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 of the Financial Statements The audit report for the Wilkinson County Board ofEducation 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 of the Wilkinson County Board ~f 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 Wilkinson County Board of Education did not disclose any reportable conditions in internal control over major programs.

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

6. Audit Findings Required to be Reported by Section .51 OCa) of OMB Circular A-133 The Wilkinson County Board ofEducation's audit did not disclose audit findings required to be reported by section .5l0(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 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies

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

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-133.

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WILKINSON COUNTY BOARD 'OF EDUCATION SCHEDULE OFFINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
. CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Control Procedures Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-758l-00-0l
A review ofthe Board's internal control policies and procedures noted deficiencies in providing for aqequate internal control over the following functions and related procedures:
For the School Food Services Program, the bank reconciliation function was not separated from the gerieral ledger posting and check preparation 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 ofmanagement'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 that would enhance segregation ofduties 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 <;Jeneral Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-758l-00-02
The Wilkinson County Board of Education 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.
.-2-

. ',".< '.' ..... ~. t'. '" ,
WILKINSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000 ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
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