Management report, Chattahoochee-Flint Regional Educational Service Agency, an organizational unit of the state of Georgia, year ended June 30, 1998

G-A
A~oo
.RI
2.6/
Czs
tqq7-qg
MANAGEMENT REPORT CHATTAHOOCHEE-FLINT REGIONAL
EDUCATIONAL SERVICE AGENCY AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 1998
--_/
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400

CHA TTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

1

B SCHEDULE OF STATE REVENUE

2

C SCHEDULE OF OTHER REVENUE

3

D SCHEDULE OF SALARIES AND TRAVEL

4

SECTlONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

CLAUDE L. VICKERS
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 27, 1998

Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Education
and Director and Members ofthe Chattahoochee-Flint Regional Educational Service Agency Board of Control
Ladies and Gentlemen:
As part of our audit of the general purpose financial statements of the State of Georgia presented in the State of Georgia Comprehensive Annual Financial Report and the issuance of a State of Georgia Single Audit Report pursuant to the Single Audit Act Amendments of 1996, as of and for the year ended June 30, 1998, we have performed certain audit procedures at the Chattahoochee-Flint Regional Educational Service Agency. Accordingly, the financial statements and compliance activities of the Chattahoochee-Flint Regional Educational Service Agency were examined to the extent considered necessary in order to express an opinion as to the fair presentation ofthe financial statements contained in the State ofGeorgia Comprehensive Annual Financial Report and to issue reports on compliance and internal control as required by the Single Audit Act Amendments of 1996.
This Management Report contains information pertinent to the financial and compliance activities of the Chattahoochee-Flint Regional Educational Service Agency as of and for the year ended June 30, 1998. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the use of management of the Chattahoochee-Flint Regional Educational Service Agency. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
$.~
Claude L. Vickers State Auditor
CLV:ds

SECTION I SELECTED FINANCIAL INFORMATION

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 1998

EXHIBIT "A"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Other Support Services
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1997
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 777,699,00 $ 788,689,60

433,618.50

562,097.55

$ 1,211,317.50 $ 1,350,787.15

$ 25,750.59 $ 83,878.66

369,446.36 427,722.65 134,942.11
56,903.47 158,512,64

365,689.15 423,857.38 166,281.20
45,182.49 142,062.25

$ 1,173,277.82 $ 1,226,951.13 $ 38,039.68 $ 123,836.02

$

-100.94

$

-100.94

$ 38,039.68 $ 123,735.08

273,322.50

325,073.19

0.05

FUND BALANCE JUNE 30. 1998

$ 311,362.23 $ 448,808.27

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

85,208.00 $

85,148.75

1,278,646.00 1,033,271.70

$ 1,363,854.00 $ 1,118,420.45

$ 132,302,00 $
280,426,00 134,309.00 95,661.00
10,260.00 21,620.00 577,539.00
$ 1,252,117,00 $
$ 111,737.00 $

83,621,29
168,496.61 186,367.78 95,439.64
17,387.28 415,797.02
967,109.62
151,310.83

$

100.94

$

100.94

$ 111,737.00 $ -118,330.80 76,443.80

151,411.77 0.00

$

69,850.00 $ 151,411.77

SUMMARY OF FUND BALANCE
Reserved Federal Programs Inventories
Unreserved Undesignated

$ 24,732.39 424,075.88
$ 448,808.27

$ 151,411.77 0.00
$ 151,411.77

- 1-

CHATIAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 3D, 1998

EXHIBIT"B"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Other State Programs Health Insurance Regional Educational Service Agencies Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification
OTHER Education, Georgia Department of Reimbursement of PSAT Examiner Fees

GENERAL FUND

SPECIAL REVENUE
FUND

$

11,490.10

777,071.00

$

85,148.75

128.50

$ 788,689.60 $ =======8=5=,1=4=8=.=7=5=

-2-

CHATIAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1998

EXHIBIT"C"

Interest Earned Sales and Services
Audio Visual Repairs Less: Cost of Goods Sold
Services Provided Shared Services Projects Boards of Education Chattahoochee County Clay County Crisp County Dooly County Macon County Marion County Quitman County Randolph County Schley County Stewart County Sumter County Talbot County Taylor County Webster County Georgia Youth Science and Technology Center
Workshop Fees Other

GENERAL FUND
$ 15,208,10
21,841,93 -13,273,25
15,078.59 12,654.59 15,467,44 36,900.50 46,029.94 36,109.59 11,890.52 38,232.79 14,351.28 23,007.72 111,367.83 18,829.00 31,999.89 11,698.32 75,391.40 15,832.50 23,478.87

$ 562,097.55

-3-

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1998

EXHIBIT liD"

PERSONNEL
AFFOLTER, DIANE W. ANDERSON, JAY M. ARGO, ANNE A. BAILEY, GLORIA N. BARNES, DAVID B. BYRD, ARLENE W. CARTER, NORMAN K. COLLINS, EMILY C. CURTIS, PHILIP J. JR., DAVIS, WILLIAM E. DORSEY, JEFF C. EXUM, E. GAIL GONZALEZ, JAVIER HALL, CHARLOTTE R. HECKATHORN, DIANNE
HOWELL, L. GAIL
HUNT, LENA MAE KENNEDY, WAYNE R. KENNON, CAROL W. KILBRIDGE, BISCHOFF MARTH LEE-TARVER, ALEADA MARTIN, SHARON
MCCORKLE, BARBARA A. MOATES, BARBARA L.
MOORE, ROBERT M. PEREZ, SAN JUANITA PICKETT, V. GAY PLESS, GRACE P. REYES, BELINDA SMITH, BETTY I. SMITH, BILLIE SUE
STREETMAN, REBECCA A.
TORBERT, MARY R. VALVERDE-JENSEN, AMY VALVERDE-JENSEN, MIGUEL WALKER, F. MEREDITH WHITTEN, THOMAS M.
WILLIAMS, PATRICIA L.
WRIGHT, LEE
Accruals June 30, 1997 June 30, 1998

SALARIES

TRAVEL

$ 45,461.00 $ 2,443.14

1,085.38

3,588.00

94.00

60,640.44

2,098.86

8,685.50

12,990.00

56,800.15

3,996.66

65,493;64

3,573.19

62,247.68

3,416.56

31,335.00

79.00

1,294.38

43,020.62

3,863.30

35,256.00

5,369.38

16,952.00

591.25

25,911.02

1,328.90

5,304.00

3,960.00

31,683.00

405.21

41,120.62

826.34

26,627.19

2,060.00

11,888.43

1,196.89

37,585.18

2,302.15

22,560.00

63,628.08

4,493.29

27,150.08

1,749.18

2,227.74

153.00

11,539.20

36.00

29,741.70

227.75

8,649.00

1,085.25

43,050.04

2,312.50

60,752.70

1,248.23

16,440.00

711.75

4,327.80

24,244.44

1,079.25

17,439.96

4,369.35

76,914.85

3,654.00

67,345.55

3,291.63

15,480.70

84.50

49,906.06

2,831.63

$ 1,170,327.13 $ 60,972.14

-17,205.72 5,694.33

$ 1,158,815.74 $ 60,972.14 -4-

SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

8724-93-01 FS-8724-97-01

Further Action Not Warranted Unresolved-See Corrective Action/Response

CORRECTIVE ACTIONIRESPONSES

ACCOUNTING CONTROLS (OVERALL) Inadequate Separation of Duties Finding Control Number: 8724-93-01

Chattahoochee-Flint Regional Educational Service Agency will continue to periodically review staff to determine if employee duties can be reassigned to achieve a higher degree of internal controls.

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8724-97-01

No efforts are being made at this time to establish a General Fixed Assets Account Group. It is our belief that it is not cost beneficial to do so.

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8724-98-01
In the year under review, the Agency did not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the fmancial statements of the Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of equipment owned by the Agency 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.