STATE OF GEORGIA , DEPARTMENT OF AUDITS AND ACCOUNTS G1,~ A 800 RI E J. fa W9 \q~CJ-2oo0 00 00000 0 0 1776 I WORTH COUNTY BOARD OF EDUCATION SYLVESTER, GEORGIA - REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor WORlH COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- 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 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS E COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS F NOTES TO lHE GENERAL PURPOSE FINANCIAL STATEMENTS ADDmONAL FINANCIAL INFORMATION . COMBINING STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND I COMBINING BALANCE SHEET J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Page 2 4 7 8 - 9 11 22 24 26 28 WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION EXHillITS COMBINING STATEMENTS DEBT SERVICE FUND K COMBINING BALANCE SHEET L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES M FIDUCIARY FUND TYPES COMBINING BALANCE SHEET SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ANALYSIS OF EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 5 BY PROGRAM Page 30 31 32 33 35 36 37 38 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 WORTH COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS S Y 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-X400 May 14,2001 Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members ofthe State Board of Education and Superintendent and Members of the Worth 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 ofthe Worth 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 Worth County Board ofEducation's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require-that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our OpInIOn. As described in the notes to the general purpose financial statements, the Board'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: 2000ARL-13A * The general purpose financial statements ofthe 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. * The Board did not report compensated absences within the general purpose financial statements as required by generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements. The 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 Worth CountyBoard ofEducation as of June 30, 2000, and the results of its operations and the cash flows of its nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated May 14, 2001, on our consideration ofthe Worth County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the -Worth County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through M) 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 financial statements taken as a whole. 2000ARL-13A A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50- 6-24. .--1: espectfully submitted, RWH:jb 2000ARL-13A Ru ell W. Hinton State Auditor WORTH COUNTY BOARD OF EDUCATION - WORTH 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 GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 1,376,598.45 $ 166,068.68 $ 2,849,638.89 650,000.00 250,615.59 2,462,294.07 431,340.20 245,554.68 928.51 11,999.81 Total Assets $ 4,488,892.52 $ 860,952.79 $ 3,095,193.57 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Endowment Corpus For Inventories Food Donated Commodities Purchased Food For School Food Services EqUipment Expenditures For SPLOST Projects For State Capital Outlay Projects Unreserved Designated for Self-Insurance Undesignated Total Fund Equity $ 387.447.29 $ 2.286.635.79 199.09 177.702.69 $ 358.734.63 4,073.66 206.39 2.939.52 5.085.00 $ 2.674.282.17 $ 540.510.98 $ _ _-=8=,:2:.3:.0:.:9..1.;'- $ 132,508.00 $ 928.51 11.999.81 $ 500.000.00 1.803.984.81 34,313.85 1.647,788.50 $ 1.814.610.35 $ 307.513.49 320.441.81 $ 782,977.85 3.086.962.66 Total Liabilities and Fund Equity $ 4,488,892.52 $ 860.952.79 $ ........3...095.193.57 The notes to the general purpose financial statements are an integral part of this statement. -2- EXHIBIT "A" DEBT SERVICE FUND FIDUCIARY FUND TYPE TRUST FUNDS ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only.L,-)::--:'"":"":"":"_ JUNE 30, 2000 JUNE 30, 1999 $ 513,083.89 $ 1,611.32 $ 4,907,001.23 $ 3,881,486.06 3,500.00 904,115.59 891,727.75 97.66 3,139,286.61 2,764,067.61 $ 513,083.89 1,781,916.11 928.51 11,999.81 513,083.89 1,781,916.11 1,427.57 15,133.41 294,168.87 2,135,831.13 $ 513,083.89 $ 5,208.98 $ 2,295,000.00 $ 11,258,331.75 $ 9,983,842.40 $ $--====- $ 565,356.37 $ 2,648,309.94 4,272.75 5,085.00 2,295,000.00 5,518,024.06 $ 528,485.76 2,530,392.94 6,060.38 40,227.00 15,299.64 2,430,000.00 5,550,465.72 $ 513,083.89 $ 4,500.00 0.00 708.98 $ 513,083.89 $ _ _--5,2=0=8.=98~ $ 132,508.00 $ 224,128.00 885.09 513,083.89 294,168.87 4,500.00 4,500.00 928.51 11,999.81 500,000.00 1,803,984.81 1,427.57 15,133.41 974,283.94 41,149.00 34,313.85 2,738,988.82 37,203.85 2,840,496.95 $ 5,740,307.69 $ 4,433,376.68 $ 5,208.98 $ = ........2.;1;;,2.9=5,000.00 $ 11,258,331.75 $ _ _9,983,842.40 -3- WORTH 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 Central Support Services Other Support Services , Food Services Operation Community Services Operations 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 Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 18,689,481.51 $ 58,381.20 4,243,878.67 325,138.74 $ 23,316,880.12 $ 739,358.57 3,313,834.42 328,092.39 4,381,285.38 $ 14,837,633.55 $ 1,869,365.20 1,287,967.99 113,954.18 691,471.75 199,913.63 562,427.53 11,816.99 292,756.45 155,962.00 1,757,410.88 233,763.11 62.43 ; 1,656,809.34 8,069.10 1,451,474.55 46,428.60 186,481.53 60,943.08 65,572.92 1,885,896.49 11,180.00 10,243.75 $ 23,029,383.51 $ 4,368,221.54 $ 287,496.61 $ _ _.1.~.0.6:3.8=4=~ $ - - =-50=0,0=00,.0,0- $ ------5=00=,00=0.=00- $ 287,496.61 $ 1,527,113.74 -486,936.16 811,010.63 -499.06 -3,133.60 FUND BALANCE JUNE 30 $ 1,814,610.35 $ ...........3;;;2;;,0;;,,.4..4..1...8.1.... 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 OnIV_....,-_ YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 19,428,840.08 $ 18,541,048.67 3,372,215.62 3,001,218.12 $ 964,989.27 $ 516,731.47 5,725,599.41 5,068,782.96 17,698.23 4,677.11 675,606.47 702,756.71 $ 982,687.50 $ 521,408.58 $ .29,202,261.58 $ 27,313,806.46 $ 16,706,998.75 $ 15,899,292.08 $ 191,775.38 1,401,922.17 891,385.38 574,244.52 448,718.45 1,757,473.31 233,763.11 1,664,878.44 1,497,903.15 186,481.53 126,516.00 1,885,896.49 11,180.00 202,019.13 1,458,604.47 691,878.35 544,552.80 420,411.40 1,748,394.31 194,966.79 1,562,337.19 1,248,796.08 137,146.13 196,816.18 1,831,768.59 4,191.56 620,430.51 $ 135,000.00 135,000.00 130,000.00 166,812.50 166,812.50 175,625.00 681.06 681.06 680.50 $ 191,775.38 $ 302,493.56 $ 27,891,873.99 $ 26,865,891.94 $ 790,912.12 $ 218,915.02 $ 1,310,387.59 $ 447,914.52 $ 500,000.00 $ ----=50=0,=00=0.=00- $ 1,290,912.12 $ 1,796,050.54 $ 500,000.00 $ 238,082.04 -500,000.00 -238,082.04 $ 0.00 $ 0=.:0:0... 218,915.02 $ 294,168.87 1,310,387.59 $ 4,428,343.78 447,914.52 3,979,664.66 -499.06 -3,133.60 170.83 593.77 $ 3,086,962.66 $ _.....,;5.1..3..,083.89 $ _ .5..,735,098.71 $ 4,428,343.78 -5- WORTH 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 ENQED JUNE 30. 2000 EXHIBIT C GENERAL FUND ACTUAL (BUDGET BUDGET BASIS):....-_ REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues $ 17,977.922.00 $ 18.689,481.51 50,000.00 58.381.20 4.211,107.00 4.243.878.67 200,040.00 325.138.74 $ 22,439.069.00 $ 23,316.880.12 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 Central Support Services Other Support Services Food Services Operation Community Services Operations Capital Outlay $ 14.904,319.27 $ 14.837.633.55 1.361,447.21 618.658.57 552.353.79 299.376.53 1,832.960.63 261,956.67 1.619,509.52 1,347,091.72 169,867.40 300.00 1,287.967.99 691,471.75 562.427.53 292.756.45 1.757,410.88 233.763.11 1,656,809.34 1,451,474.55 186,481.53 60,943.08 10.243.75 Total Expenditures $ 22,967.841.31 $ 23,029.383.51 Excess of Revenues over (under) Expenditures $ -528.772.31 $ _~28~ 7,4= 96.6~ 1 OTHER FINANCING USES - Other Uses Total Other Financing Uses Excess of Revenues over (under) Expenditures and Other Financing Uses $ -528.772.31 $ 287,496.61 FUND BALANCE JULY 1. 1999 1,926,976.75 1.527,113.74 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JU~E 30. 2QOO $ 1,398.204.44 $ 1,814,610.35 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS1_ $ 125.526.00 $ 739.358.57 3.720,266.00 3.313.834.42 365,415.00 328,092.39 $ 4.211.207.00 $ 4,381.285.38 $ 1.758.017.00 $. 1.869.365.20 79.297.00 108,223.00 11.500.00 168,198.00 113.954.18 199.913.63 11.816.99 155.962.00 62.43 14.000.00 24,002.00 8,069.10 46,428.60 143.349.00 1.904.621.00 65,572.92 1,885,896.49 11,180.00 $ 4.211.207.00 $ 4,368.221.54 $ 0.00 $ _ _1~ 3.0~ 63.8~ 4 $ -500.000.00 $ -500,000.00 $ -500.000.00 $ -500.000.00 $ -500,000.00 $ -486,936.16 811.735.01 811,010.63 -16,560.98 -499.06 -3,133.60 $ 320.441.81 The notes to the general purpose financial statements are an integral part of this statement. -7- WORTH COUNTY BOARD OF EDUCATION EXHIBIT "D" COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2000 TOTALS CHASE S. HELEN (Memorandum OnlyJ<- _ OSBORN DAVIS STORY YEAR ENDED FUND FUND JUNE 3D, 2000 JUNE 30,1999 OPERATING REVENUES None Recorded $ 0.00 $ 0.00 $ 0.00 $ --=0.-0=0_ OPERATING EXPENSES Current Instruction $ 50.00 $ 0.00 $ 50.00 $ --..5::0.=.0::0... Operating Income (Loss) . $ -50.00 $ 0.00 $ -50.00 $ -50.00 NONOPERATINGREVENUES Interest Earned 42.33 183.75 226.08 139.99 Net Income (Loss) $ -7.67 $ 183.75 $ 176.08 $ 89.99 FUND BALANCE JULY 1 1,435.24 3;597.66 5,032.90 1,442.91 Adjustments Initial Contribution by Benefactor 3,500.00 FUND BALANCE JUNE 30 $ 1,427.57 $=- 3,781.41 $ _ _...:;:5,208.98 $ ..... 5,032.90 The notes to the general purpose financial statements are an integral part of this statement. -8- WORTH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 3D, 2000 EXHIBIT"E" CHASE S. OSBORN FUND HELEN DAVIS STORY FUND TOTALS (Memorandum Onl:il~ _ _ YEAR ENDED JUNE 30, 2000 JUNE 30,1999 Cash Flows from Operating Activities: Cash Paid for Scholarships $ -50.00 $ 0.00 $ -50.00 $ -=50=.00- Cash Flows from Noncapital Financing Activities: Initial Contribution by Benefactor $ 0.00 $ 0.00 $ 0.00 $ _ _-3=,50=0.=00- Cash Flows from Investing Activities: Interest Received on Investments $ 42.33 $ 183.75 $ 226.08 $ 42.33 Purchase of Investments -3,500.00 Net Cash Provided by Investment Activities $ 42.33 $ 183.75 $ 226.08 $ _ _~ -3,4~ 57.6~ 7 Net Increase (Decrease) in Cash $ -7.67 $ 183.75 $ 176.08 $ -7.67 Cash and Cash Equivalents - July 1 1,435.24 0.00 1,435.24 1,442.91 Cash and Cash Equivalents - June 30 $ 1,427.57 $ 183.75 $ 1,611.32 $ _ _~1~,4-35..2.4. The notes to the general purpose financial statements are an integral part of this statement. -9- WORTH COUNTY BOARD OF EDUCATION EXHIDIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Y OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Worth County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time 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 of a 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. . - 11 - WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" 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 for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: NONEXPENDABLE TRUST FUNDS Chase S. Osborn Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide an award to the . Worth County School System spelling champion. Helen Davis Story Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide a scholarship to a senior class student. 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. - 12 - WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All nonexpendab1e trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation ofthese funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. 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 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 substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in August of 1999 and ending in early June 2000. Employment contracts for these employment periods typically 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 are disbursed to the Board in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. . The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. BUDGET The Worth 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 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 ofthis tentative budgetby the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next called or regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in - 13- WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES , accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation ofthe United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions ofthe State of Georgia. - 14- WORTIl COUNTY BOARD OF EDUCATION EXHffiIT "F" NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Worth County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on September 16, 1999 (levy date). Taxes were due on December 20, 1999. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Worth 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 (calendar year) for the Worth County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 11.76 mills SALES TAXES 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 $1,479,497.31 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $6,007,783.93 has been collected or on September 30, 2002, 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 commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component ofnet current assets. - 15 - WORm COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO mE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES COMPENSATED ABSENCES Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. However, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources is material to the general purpose financial statements and has not been recorded in the General Long-Term Debt Account Group as required by generally accepted accounting principles. GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows 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. - 16- WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, 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 11 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe dailypool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive therequirement 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, (6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $8,225,191.61. The amounts ofthe total bank balances are classified into three categories of credit risk: ' - 17 - WORTIl COUNTY BOARD OF EDUCATION EXHffiIT "F" NOTES TO TIlE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 2: DEPOSITS Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent 'but not in the Board's name.) The Board's deposits are classified by risk category at June 30, 2000, as follows: Risk Category Bank Balance 1 $ 300,000.00 2 6,586,853.63 3 1,338,337.98 Total $ 8.22~.191.61 Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT - The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board has obtained commercial insurance for risk ofloss associated with torts, assets, 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 of the past three years. The Board is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the Board. The Board accounts for claims within the General Fund with expenditure and liabilitybeing reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. - 18- WORTH COUNTY BOARD OF EDUCATION EXHIBIT "F" 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: Beginning of Year Liability_ Claims and Changes in Estimates Claims Paid End of Year Liability_ 1999 2000 $ 7,530.00 $ 1,019.00 $ 7,530.00 $_ _-1,,-0,1-9,,.0-~0= $ 1,019 .00 $ 2,890.00 $ 3,909.00 $ -.:0:<...:0..>0= The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent Each Principal $ 20,000.00 $ 5,000.00 - $ 10,000.00 Note 5: GENERAL LONG-TERM DEBT GENERAL OBLIGATION BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows: _ _ _ _~P-=urp=o=se::..._ _ Interest Rates Amount General Government - Series 1990 6.4% -7.25% $ 2.295.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: General Obligation Bonds Balance July 1, 1999 $ 2,430,000.00 Deductions Debt Retired 135,000.00 Balance June 30, 2000 $ 6.295.000.00 - 19- WORTH COUNTY BOARD OF EDUCATION EXHIDIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LONG-TERM DEBT 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 2005 2006 - 2010 2011 $ 226,145.00 307,430.00 306,812.50 310,427.50 307,917.50 1,541,812.50 305,662.50 Total Principal and Interest $ 3.306,207.50. Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $474,142.82 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 ofNon-Certified Personnel In the amount of$385,767.82 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$II,637.00 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$76,738.00 . Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000: - 20- WORTH COUNTY BOARD OF EDUCATION EXHIDIT "F" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 7: SIGNIFICANT COMMITMENTS Project Unearned Executed Contracts Sylvester Elementary School $ 1,922,412.00 The amounts described in this note are not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System 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% $ 1,808,816.21 $ 1,826,049.67 $ 1,659,200.23 - 21 - WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories Food Donated Commodlnes Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 173,984.07 $ 67,732.74 250,615.59 115,499.57 8,673.84 928.51 11 ,999.81 Total Assets $ 553,027.55 $ ======76=,4~0=6=.5=8= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable - Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity $ 106,020.16 $ 124,933.74 1,631.84 $ 232,585.74 $ 24,291.82 52,114.76 76,406.58 $ $ 928.51 11,999.81 307,513.49 $ 320,441.81 $ ~0:.:0..0.. ~0:.:0..0.. Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 22- $ 553,027.55 $ ==~ 76,4~ 06.~ 58 EXHIBIT "G" FEDERAL PROGRAMS TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 241,716.81 $ 777,650.20 250,615.59 238,227.75 $ 307,166.79 431,340.20 302,691.61 928.51 11 ,999.81 1,427.57 15,133.41 $ 307,166.79 $ 936,600.92 $ 1,335,130.54 $ . 75,648.13 $ 47,390.71 181,686.13 2,441.82 $ 307,166.79 $ 75,648.13 $ 177,702.69 358,734.63 4,073.66 58,010.62 144,669.61 315,415.48 6,024.20 - 616,159.11 $ _-:5::.:2:..:.4,119.91 $ $----=0.0~0 $ 0.00 $ $ 885.09 928.51 11,999.81 1,427.57 15,133.41 307,513.49 793,564.56 320,441.81 $ _ _.8::1..:1...:,.0.c1:..0.:..=6::3:.... $ 307,166.79 $ 936,600.92 $ 1,335,130.54 - 23- WORTH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2000 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USESl 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 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 123,474.32 $ 1,448,278.71 328,092.39 615,884.25 $ 1,899,845.42 $ _ _:6::1:..5..:,..8.::8:=4=.:2::.5..... $ $ 1,885,896.49 501,350.03 58,920.45 7,033.02 29,625.38 33.43 7,139.01 11,754.99 27.94 $ 1,885,896.49 $ _ _:6:::1....5:..,.:8::=8..:4.::.:.2:::5...... $ 13,948.93 $ =0:.:0:..0.... $ --==-5.00;,0;0.0.=00~ $ --="-5"0"0",0"00-.0=0~ $ -486,051.07 $ 0.00 810,125.54 0.00 -499.06 -3,133.60 FUND BALANCE JUNE 30 See notes to the general purpose financial statements. - 24- $ 320,441.81 $ ====~;;.0..00, EXHIBIT "H" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30,1999 $ 739,358.57 $ 746,595.67 $ 1,865,555.71 3,313,834.42 2,945,418.69 328,092.39 . '._ _~4.0.1t=,.2.1:.0=.:6.7..- $ 1,865,555.71 $ 4,381,285.38 $ 4,093,225.03 $ 1,368,015.17 $ 1,869,365.20 $ 1,582,751.20 55,033.73 192,880.61 11,816.99 126,336.62 29.00 930.09 34,673.61 65,544.98 11,180.00 113,954.18 199,913.63 11,816.99 155,962.00 62.43 8,069.10 46,428.60 65,572.92 1,885,896.49 11,180.00 127,182.71 103,053.82 10,603.45 149,738.49 2,039.66 22,616.08 43,126.38 190,917.67 1,831,768.59 4,191.56 $ 1,866,440.80 $ 4,368,221.54 $ 4,067,989.61 $ -885.09 $ 13,063.84 $ _ _...2..5=.,:2::3:.5z..:4:::2:~=- -- $ $ -500,000.00 2,400.17 $ -500,000.00 $ _ _---:2:~,:4::0.:0...:1.;7:..- $ -885.09 $ -486,936.16 $ 27,635.59 885.09 811,010.63 782,610.44 -499.06 -3,133.60 170.83 593.77 $ 0.00 $ 320,441.81 $ ====8=11~,0=1=0.=63= - 25- WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets REGULAR SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 788,062.85 $ 2,061,576.04 245,554.68 $ 2,307,130.72 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For School Food Services Equipment Expenditures For SPLOST Projects For State Gapital Outlay Projects Unreserved Undesignated Total Fund Equity $ 206.39 2,939.52 $ 5,085.00 $ 5,085.00 $ _ _--=.3.l.,.1..:4...5:..=9..1:..... $ 500,000.00 1,803,984.81 782,977.85 0.00 $ 782,977.85 $ _.....=2..,!3.=0=3..,:9..8:.4=..8.:1..... Total Liabilities and Fund Equity $ 788,062.85 $ ====:!2:=,=3=0:::7!:,::1:::3:=0=.=7=2== See notes to the general purpose financial statements. - 26- EXHIBIT "I" LOTTERY PROJECT TOTALS JUNE 30, 2000 JUNE 30, 1999 $ 0.00 $ 2,849,638.89 $ 1,638,439.39 245,554.68 213,137.79 $ 0.00 $ 3,095,193.57 $ 1,851,577.18 $ 206.39 2,939.52 5,085.00 $ 40,227.00 15,299.64 $ 8,230.91 $ _ _-=5=5=,5.:.2=6....6.:4.... $ 500,000.00 1,803,984.81 $ 974,283.94 41,149.00 $----=0.0~0 $ 0.00 $ 782,977.85 3,086,962.66 $ 780,617.60 1,796,050.54 $ 0.00 $ 3,095,193.57 $ 1,851,577.18 - 27- WORTH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2000 REVENUES REGULAR SPECIAL PURPOSE LOCAL OPTION SALES TAX Taxes Other Funds $ 0.00 $ 964,989.27 17,698.23 Total Revenues EXPENDITURES $ 0.00 $ _ _=9=8.2.:,6..8.7..:5.0=.~ Capital Outlay Land and Land Improvements Building and Building Improvements Equipment . Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES). $ 42,139.75 $ 143,273.63 3,602.00 $ 42,139.75 $ _ _~14=6.,8:7.5..6=3~ $ -42,139.75 $ _---.,;~:z8.:3::5..,.8.:1.1~:.8..7... 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 $ 44,500.00 $ 500,000.00 -6,111.00 $ 44,500.00 $ _ _~ 493~ ,88~ 9.0~ 0 $ 2,360.25 $ 1,329,700.87 780,617.60 974,283.94 FUND BALANCE JUNE 30 $ 782,977.85 $ =~~2~,3~0.3,:9.84:.8:1: See notes to the general purpose financial statements. - 28- EXHIBIT "J" LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ $ $ $ $ 0.00 $ 0.00 $ 964,989.27 $ 17,698.23 982,687.50 $ 1,014,028.31 7,002.28 1,021,030.59 2,760.00 $ 2,760.00 $ -2,760.00 $ $ 188,173.38 3,602.00 2,611.96 448,614.60 169,203.95 191 ,775.38 $ _ _6=.z2..0.;.,.4;;;3..0.;;.;5.;.1;;;..~ 790,912.12 $ _ _4..0.0:,.6.0=0..=0=8=~ $ 544,500.00 $ 679,066.21 $ - - - =-3=8,3=89=.00- -44,500.00 -443,384.34 -. $ -38,389.00 $ _ _5~0=0.000.00 $ _---==2=35.:,.6;.8:1;.:8:-7.. $ -41,149.00 $ 1,290,912.12 $ 636,281.95 41,149.00 1,796,050.54 1,159,768.59 $ 0.00 $ 3.086,962.66 $ 1,796,050.54 - 29- WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 3D, 2000 EXHIBIT "K" ASSETS Cash and Cash Equivalents PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2000 JUNE 3D, 1999 $ 0.00 $ 513,083.89 $ 513,083.89 $ ===~;2.9;4,,;1;6,8;.=8=7= FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undesig nated $ $----0=.00~ 513,083.89 $ 0.00 513,083.89 $ 0.00 294,168.87 0.00 Total Fund Equity $ 0.00 $ 513,083.89 $ 513,083.89 $ ===~;.;2,9;;4,,;1,;6;8,,.8;,7.. See notes to the general purpose financial statements. - 30- WORTH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30. 2000 EXHIBIT "L" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 REVENUES Taxes Other Funds $ 2,223.43 $ 514,508.04 $ 516,731.47 $ 400,206.17 4,677.11 4,677.11 1,009.12 Total Revenues EXPENDITURES $ 2,223.43 $ 519,185.15 $ 521,408.58 $ _~~=.4.0:1.,2:1:5:.;2=9- Debt Service Principal Interest Paying Agent Fees $ 0.00 $ 135,000.00 $ 135,000.00 $ 130,000.00 166,812.50 166,812.50 175,625.00 681.06 681.06 680.50 Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) $ 0.00 $ 302,493.56 $ 302,493.56 $ _---=3.0=6=,3:0:5..:5:0... $ 2,223.43 $ 216,691.59 $ 218,915.02 $ _--- 94',90=9=.79~ Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) ==0:.... $ $ _ _-2,223.43 $ -2,223.43 $ 2,223.43 $ 2,223.43 $ 2,223.43 $ -2,223.43 0.00 $ 204,949.86 -204,949.86 ---=0.:.=0=0.... Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 0.00 $ 218,915.02 $ 218,915.02 $ 94,909.79 FUND BALANCE JULY 1 0.00 294,168.87 294,168.87 199,259.08 FUND BALANCE JUNE 30 $ 0.00 $ 513,083.89 $ 51;,;;;,3,083.89 $ _...:;;294~,168.87 see notes to the general purpose financial statements. 31 WORTH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000 EXHIBIT "M" ASSETS Cash and Cash Equivalents Investments Accounts Receivable NON EXPENDABLE TRUST FUNDS ENDOWMENT FUNDS CHASE S. OSBORN HELEN DAVIS STORY FUND FUND TOTALS JUNE 30, 2000 JUNE 30,1999 $ 1,427.57 $ 183.75 $ 1,611.32 $ 1,435.24 3,500.00 3,500.00 3,500.00 97.66 97.66 97.66 Total Assets $ 1,427.57 $ 3,781.41 $ 5,208.98 $ ==~=5=,0=3=2.=90= FUND EQUITY Fund Balances Reserved For Endowment Corpus $ unreserved Undesignated Total Fund Equity $ 1,000.00 $ 427.57 3,500.00 $ 281.41 1,427.57 $ 3,781.41 $ - 4,500.00 $ 708.98 4,500.00 532.90 5,208.98 $ ==~=5=,03=2=.90= See notes to the general purpose financial statements. - 32- WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutrition Program Summer Food Service Program for Children Total Child Nutrition Cluster * 10.553 * 10.555 * 10.559 N/A s 271,772.18 (2) N/A 792,682.16 $ 1,594,338.34 (3) N/A 297,431.86 290,882.64 $ 1,361,886.20 $ 1,885,220.98 Other Programs Direct Food and Nutrition Program Altemative to Commodity Donations Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Total U. S. Department of Agriculture 10.550 10.550 85,717.00 (2) N/A 675.51 675.51 _--:.===:.:::.. $ 1,448,278.71 $ 1,885,896.49 Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Grant Flow Through Preschool 84.173 84.027 84.173 N/A $ 7,194.27 $ N/A 228,967.82 N/A 31,806.87 7,194.27 228,967.82 31,806.87 Total Special Education Cluster $ 267,968.96 $ 267,968.96 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 1,147,737.22 1,147,737.22 Eisenhower Professional Development 84.281 N/A 28,760.31 28,760.31 Title III Technology Literacy Challenge Fund Grants 84.318 N/A 885.09 Title VI Innovative Education Program Strategies Class Size Reduction 84.298 N/A 84.340 N/A 37,471.00 154,495.00 37,471.00 154,495.00 Goals 2000 State and Local Education Systemic Improvement Grants 84.276 N/A 129,384.97 129,384.97 Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 N/A 59,047.77 59,047.77 Total U. S. Department of Education $ 1,824,865.23 $ 1,825,750.32 Health and Human Services, U. S. Department of Pass-Through from Georgia Department of Human Resources Child Care School Age Program Contract 427-93-81554 93.037 N/A $ 11,180.00 $ 11,180.00 - 33- WORTH CQUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Labor, U. S. Department of Pass-Through From Southwest Georgia Regional Development Center Job Training Partnership Act 96-B-98 Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 17.250 N/A $ 29,510.48 $ _ _--2""9'-,5'=1=0..>4<8. 58,381.20 (4) Total Federal Financial Assistance N/A = Not Available $ 3,372,215.62 $ _...:;:3,~,:7;;5.2:;,:3.3:~7;;.;2:9", Notes to the Schedule of Expenditures of Feder:al Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the Altemative to Commodity Donations Program and the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program. (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source. (4) Funds eamed on this program do not require reporting of expenditures. 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 includes the Federal grant activity of the Worth 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. - 34- WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs $ 10,390,674.00 Special Education Programs 1,550,480.00 Remedial Education Program Media Center Programs 286,267.00 436,368.00 Staff Development Programs 116,454.00 Indirect Cost 2,713,208.00 Pupil Transportation Regular 780,043.00 Bus Replacement 238,882.00 Middle School Incentive Program 401,424.00 Special Instructional Assistance 431,316.00 In-School Suspension 68,305.00 Counselors Grades 4 and 5 Technology Specialist 44,811.00 57,685.00 Local Five Mill Share -1,431,346.00 Deferred Summer Salaries (Prior Year) -2,055,061.00 Deferred Summer Salaries (Current Year) 2,096,791.00 Educational Equalization Formula 1,649,021.00 Food Services $ Vocational Education 113,190.91 Other State Programs Alternative Program . 105,655.00 At-Risk Summer School Program 22,092.99 Family Connection 46,228.05 Health Insurance 385,767.82 Mentor Teachers - Preschool Handicapped Program 486.00 54,596.00 Remedial Summer School 7,767.74 Teachers'Retirement 11,637.00 Lottery Programs Assistive Technology Computers in the Classroom $ 10,390,674.00 1,550,480.00 286,267.00 436,368.00 116,454.00 2,713,208.00 123,474.32 780,043.00 238,882.00 401,424.00 431,316.00 68,305.00 44,811.00 57,685.00 -1,431,346.00 -2,055,061.00 2,096,791.00 1,649,021.00 123,474.32 113,190.91 105,655.00 22,092.99 46,228.05 385,767.82 486.00 54,596.00 7,767.74 11,637.00 16,464.04 103,580.00 16,464.04 103,580.00 Office of School Readiness Pre-Kindergarten Program 495,840.21 495,840.21 Office of Treasury and Fiscal Services Public School Employees Retirement 76,738.00 76,738.00 CONTRACT Education, Georgia Department of Georgia Reading Challenge Program 90,000.00 90,000.00 $ 18,689,481.51 $ 739,358.57 $ 19,428,840.08 See notes to the general purpose financial statements. - 35- WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2000 SCHEDULE "3" PROJECTS Repayment of principal and interest on the outstanding Worth County, (Georgia) School District General Obligation Series 1990 maturing on January 6, 1998 and thereafter Construction and equipping of capital outlay projects for the Worth County School District consisting of twelve (12) additional classrooms and expansion of the music area at Worth County Middle School, six (6) additional classrooms and needed renovations at Sylvester Elementary School, and an auditorium Renovations, additions, expansions, improvements, modifications and equipping all other existing school facilities of Worth County School District and including Sumner School property to, include the acquisition of all property, both real and personal necessary therefor ORIGINAL ESTIMATED COST (1)c-- CURRENT ESTIMATED COST (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS $ 3,510,733.75 $ 3,510,733.75 $ 302,493.56 $ 610,797.33 5,050,000.00 5,050,000.00 146,875.63 1,326,799.93 1,226,266.25 1,226,266.25 6,111.00 18,564.59 $ _ _9,787,000.00 $ 9,787,000.00 $ 455,480.19 $ _,.;,1,956,161.85 (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 each project. Includes all cost from projeCt inception to completion. (3) The voters of Worth 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 project. See notes to the general purpose financial statements. - 36- WORTH COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000 SCHEDULE "4" Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis Salaries (1) (2) Operations Less: Expenditures for Media Center Programs in Excess of Total Media Allotment Expenditures per Audit FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS $ 12,663,789.00 $ _ _....3..8::.3:=,8;.:2:.1,:.;0:=0.. $ 13,182,198.42 735,636.05 $ _ _--=6-..4:..:4..!,.:6=9.=9.:....:4..:8:... $ 13,917,834.47 -90,985.79 13,826,848.68 Amount of Underexpenditure for Total Allotment $ 0.00 $ =======0.0=0 Note: (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program guidelines. (2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. See notes to the general purpose financial statements. - 37 - WORTH 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 PRQGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 -12 (') High School Laboratories (') Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS , Regular Programs Category II (.) Category III (.) Category IV (.) . Category V (.) Sub-Total - Regular Category VI (Gifted) (.) Total Special Education Programs REMEDIAL EDUCATION PROGRAM ~ Total Fourteen Weighted Programs MI;QIA CENTI;R f;>ROGRAMS Salaries Operations Total Media Center Programs ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 997,946.00 $ 2,813,258.00 $ 3,811,204.00 90 $ 1,337.172.00 90 2.392.153.00 90 1'.620,914.00 90 568,443.00 90 660,788.00 90 $ 10,390,674.00 $ 898,151.40 $ 2,531,932.20 3,430,083.60 $ 1,203,454.80 2.152.937.70 1,458.822.60 511,598.70 594,709.20 9,351.606.60 $ 0.00 0.00 --=0..:0=0. $ 1,391.283.00 $ 1.252.154.70 $ 0.00 $ 1,391.283.00 90 $ 1.252.154.70 $ 159,197.00 90 143.277.30 $ 1,550,480.00 $ 1.395.432.00 $ $ 286.267.00 90 $ 257.640.30 $ $ 12.227.421.00 $ 11,004,678.90 $ $ 348.751.00 90 $ 313.875.90 $ 87,617.00 100 87,617.00 $ 436,368.00 $ 401,492.90 $ 0.00 --=0..:0=0. ---0".0:=0. =0.,0;0.. - 0.00 .....:0:.=0.0:.. Total Fourteen Weighted and Media Center Programs $ 12.663.789.00 $ 11,406,171.80 $ ....0...0.0.. STAFFDEVI;LOPM&NTPROGRA~S Cost of Instruction Professional Development Total Staff Development Programs (.) Identifies Fourteen Weighted Programs. (1) Salary accruals (July and August 2000 Deferred Salaries) reported as expenditures in the General Purpose Financial Statements are not included on this analysis in order to comply with program gUidelines. See notes to the general purpose financial statements. $ 37,832.00 78,622.00 $ 37,832.00 $ 78.622.00 $ 116,454.00 100 $ 116,454.00 $ (2) Salary accruals (July and August 1999 Deferred Salaries) reported as expenditures in the prior year General Purpose Financial Statements are included on this analysis as required by program guidelines. 0.00 0.00 . . 0.-.00. - 38 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES (1)(2) OPERATIONS TOTAL' AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 898.151.40 $ 1,050,444.27 $ 22.099.00 $ 1.072.543.27 2;531.932.20 2.780.550.34 111.491.04 2.892.041.38 $ 3.430.083.60 $ 3.830.994.61 $ 133.590.04 $ 3.964.584.65 $ 0.00 1.203,454.80 1.339.697.51 75.953.68 1,415.651.19 0.00 2.152.937.70 2.170,470.36 122.111.12 2.292.581.48 0.00 1,458.822.60 1.757.758.59 172.820.65 1.930.579.24 0.00 511.598.70 630.868.00 9.590.00 640.458.00 0.00 594.709.20 570.564.38 76.732.00 647.296.38 0.00 $ 9.351.606.60 $ 10.300.353.45 $ 590.797.49 $ 10.891.150.94 $ 1.252.154.70 $ 580.200.92 $ 928.610.46 204.196.92 30.130.00 10.180.00 $ 11.182.00 14.580.00 2,500.00 590.380.92 939.792.46 218.776.92 32.630.00 $ 1.252.154.70 $ 1,743.138.30 $ 38.442.00 $ 1.781.580.30 143.277.30 214.980.41 10,459.99 225.440.40 $ 1,395,432.00 $ $ 257.640.30 $ 1,958.118.71 $ 487.309.04 $ 48.901.99 $ 2.007.020.70 5.000.00 $ _---'=49=2.;3.0;9;..0; .4. $ 11.004.678.90 $ 12.745.781.20 $ 644.699.48 $ 13.390.480.68 $ 313.875.90 $ 87.617.00 $ 401,492.90 $ 436.417.22 $ _ _==~ 436.417.22 $ _ _==~ $ 11.406.171.80 $ 13.182.198.42 $ 735.636.05 $ 13.917.834.47 $ 0.00 0.00 0.00 0.0~0 $ 37.832.00 78.622.00 116,454.00 $ 37.832.00 $ 37,832.00 78.622.00 78.622.00 $ 116.454.00 $ 116.454.00 $ 0.0_0 39 SECTION II 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-X400 May 14, 2001 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation and . Superintendent and Members of the Worth County Board ofEducation 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 ofWorth County Board ofEducation as ofand for the year ended June 30, 2000, and have issued our report thereon dated May 14, 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Compliance As part of obtaining reasonable assurance about whether Worth 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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. Internal Control Over Financial Reporting In planning and performing our audit, we considered Worth 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 2000YB-40A control over financial reporting. However, we noted certain matters involving the internal control 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 Worth County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-7591-00-01 and FS-7591-00-02. 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 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, ofthe reportable conditions described above, we consider item FS-7591-0002 to be a material weakness. This report is intended solely for the information and use of management, members of the Worth 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, RWH:jb 2000YB-40A Ru sell W. Hinton State Auditor DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-X400 RUSSELL W. HINTON STATE AUDITOR May 14, 2001 (404) 656-2174 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Worth County Board ofEducation REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance ofWorth County Board ofEducation with the types ofcompliance u.s. requirements described in the Office of Management and Budget (OMB) Circular A-i33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2000. Worth County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Worth County Board ofEducation's management. Our responsibility is to express an opinion on Worth County Board of Education's compliance based on our audit. We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; 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 ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Worth 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 Worth County Board of Education's compliance with those requirements. 2000SA-IOA In our opinion, the Worth County Board of Education complied, in all material respects, with the requirements referred to above that are appli: -ble to each ofits major Federal programs for the year ended June 30, 2000. Internal Control Over Compliance The management of Worth 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 Worth County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133. Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses. This report is intended solely for the information and use of management, members of the Worth 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, . RWH:jb 2000SA-IOA R ssell W. Hinton State Auditor SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS WORTH 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-7591-98-01 FS-7591-98-02 FS-7591-99-01 FS-7591-99-02 Previously Reported Corrective Action Implemented Further Action Not Warranted .Previously Reported Corrective Action Implemented Unresolved - No Corrective Action Implemented CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7591-99-02 The management ofthe Worth County Board ofEducation has not implemented a plan to maintain a system-wide General Fixed Asset Account Group within the formal accounting records. We feel that it is not cost beneficial to record these assets. -- SECTIONN FINDINGS AND QUESTIONED COSTS WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 Y OF AUDITOR'S RESULTS 1. T)1)e of Report Issued on the Financial Statements The auditor's opinion on the Worth 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 Worth County Board of Education disclosed financial statement reportable conditions related to the following control categories. Expenditures/Liabilities/Disbursements General Fixed Assets Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit ofthe Worth County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements. 4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Worth County Board of Education did not disclose any reportable conditions in internal control over major programs. 5. T)1)e of Report Issued on Compliance for Major Programs The auditor's opinion on the Worth County Board ofEducation's report on compliance with . . requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .5lOW ofOMB Circular A-B3 The Worth County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-B3. 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 10.559 Food and Nutrition Program - Summer School Food Service Program for Children 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies me 8. "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. - 1- WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee The Worth County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS EXPENDITURESILIABILITIESIDISBURSEMENTS Improper Transfer of Funds Reportable Condition Finding Control Number: FS-7591-00-01 The Worth County Board of Education transferred $500,000.00 from the National School Lunch Program (CFDA 10.555) to the Capital Projects SPLOST Fund for Sylvester Elementary School Renovations and Additions. Code of Federal Regulations Title 7, Volume 4, Section 210.14 (a) provides in part: "Revenues received by the nonprofit school food service are to be used only for the operation or improvement of such food service, except that, such revenues shall not be used to purchase land or buildings, unless otherwise approved by FNS, or to construct buildings". Transfers from school food service operations should be limited to reimbursements for expenditures allowed by the program. This improper transfer occurred because management neglected the specific limitations imposed upon the Board by Federal Regulations. An audit adjustment has been made to reserve these funds for use in accordance with Federal Regulations. The Board should ensure that expenditure of the $500,000.00 and accrued interest is in accordance with Federal Regulations. GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7591-00-02 The Worth County Board of Education did. not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements 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 -2- WORTH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7591-00-02 inventory ofland, buildings and equipment owned by the Board and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -3-