Management report, Chattahoochee-Flint Regional Educational Service Agency, an organizational unit of the state of Georgia, year ended June 30, 2001

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MANAGEMENT REPORT
CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2001


Russell W. Hinton



State Auditor

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANSMITTAL
SECTION I
SELECTED FINANCIAL INFORMATION
EXHmITS
A COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
B SCHEDULEOFSTATEREVENUE C SCHEDULE OF FEDERAL REVENUE D SCHEDULE OF OTHER REVENUE E SCHEDULE OF SALARIES AND TRAVEL

Page
1 2 3 4 5

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

SECTIONlli CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W" Suite 214 Atlanta, Georgia 30334-X400
December 6,2001

Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members of the State Board of Education
and Director and Members of the Chattahoochee-Flint Regional Educational Service Agency Board of Control
Ladies and Gentlemen:
As part of our audit ofthe general purpose financial statements ofthe State of Georgia presented in
the State ofGeorgia Comprehensive Annual Financial Report and the issuance ofaState ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments of 1996, as of and for the year
ended June 30, 2001, 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, 2001. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use ofmanagement ofthe Chattahoochee-Flint Regional Educational Service Agency and members of the Board and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
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Ruksell W. Hinton State Auditor
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NOLLVW1IOdNI 'lVIJNVNId GH.LJH'lHS I NOLLJHS

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, 2001

EXHIBIT "A"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 913,170.00 $ 977,256.12

435,867.50

585,085.54

Total Revenues

$ 1,349,037.50 $ 1,562,341.66

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services

$

324.01

$ 397,307.00 667,722.00

412,733.17 748,621.92

145,214.00 76,132.00
219,317.00

197,757.27 68,134.98 199,506.79

Total Expenditures

$ 1,505,692.00 $ 1,627,078.14

Excess of Revenues over (under) Expenditures $ -156,654.50 $ -64,736.48

FUND BALANCE JULY 1, 2000

713,835.47

799,381.71

FUND BALANCE JUNE 30, 2001

$ 557,180.97 $ 734,645.23

SUMMARY OF FUND BALANCE
Reserved Inventories
Unreserved Undesignated

$ 20,900.21 713,745.02

$ 734,645.23

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,854,196.00 $ 1,662,435.16 $ 1,854,196.00 $ 1,662,435.16

$ 268,849.00 $ 204,550.02

432,501.00 342,367.00
209,512.00 39,731.00 . 36,300.00
621,431.00

293,919.07 582,744.99
78,590.40 172,930.14
38,873.63 27,694.56
3,182.15 259,950.20

$ 1,950,691.00 $ 1,662,435.16

$ -96,495.00 $

0.00

0.00

0.00

========= $ -96,495.00 $

0.00

- 1-



CHATIAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

EXHIBIT "B"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Other State Programs Apprenticeship Programs Health Insurance Regional Educational Service Agencies

GENERAL FUND
$ 80,000.00 9,749.12
887,507.00
$ 977,256.12

-2 -

CHATIAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2001

EXHIBIT "C"

AGENCY/FUNDING
GRANTS Education, U. S. Department of Through Georgia Department of Education Safe and Drug-Free Schools Elementary and Secondary Education Act Title I Migrant Education
CONTRACTS Education, U. S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Education Agencies

SPECIAL REVENUE
FUND
$ 357,313.02
877,095.35
428,026.79
$ 1,662,435.16

- 3-

CHATIAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 2001

EXH IBIT "D"

Indirect Cost Special Revenue Fund
Interest Earned Sales and Services
Audio Visual Repairs Less: Cost of Goods Sold
Services Provided Shared Services Projects Various Sources
Workshop Fees Other

GENERAL FUND

$

4,292.00

17,024.88

11,566.44 -6,037.57

513,733.52 29,310.00 15,196.27

$

585,085.54

-4-

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

EXHIBIT "E"

NAME
BAILEY, GLORIA N BARRETT, STEVE R BRITT, ANDREW C BROWN, ANN M BYRD, ARLENE W CANTERBURY, J BRANDON CARTER, NORMAN K COLLINS, EMILY C COWAN, ALLENE BARBEE CURTIS, PHILIP J JR DAVIS, JEAN DAVIS, WILLIAM E EXUM DE GONZALEZ, E GAIL FISHER, MARSHA M GARCIA, GONZALO GONZALEZ, JAVIER GRACIA, JOSE L GRANT, JOHN R III HALL, CHARLOTTE R HOWELL, L GAIL HUNT, LENA MAE KENNEDY, WAYNE R KENNON, CAROL W KILBRIDGE-BISCHOFF, MARTHA LARSEN, LYNN P LEE-TARVER, ALEADA LESTER,BARBARA MARTIN, SHARON MCCLUNG, MARY K MCCORKLE, BARBARA A MOORE, ROBERT M MURRAY, MELODY S PLESS, GRACE P REYES, SYLVIA RIOUX, PETER J SIMMONS, CHRISTINE B STANFORD, DOROTHY SUMNER, CHRISTOPHER L SR WALKER, F MEREDITH WHITTEN, THOMAS M WILLIAMS, LINDA P WILLIAMS, PATRICIA L WRIGHT, LEE
Accruals June 30, 2000 June 30, 2001

TITLE CATEGORY
Instructional Supervisor Vocational Director (RESA) School Social Worker School Social Worker Secretary

Plant Operations Director/Mgr Instructional Supervisor Instructional Supervisor Special Education Specialist Instructional Supervisor Instructional Supervisor Plant Operations Director/Mgr School Psychologist Instructional Supervisor Family Services Coordinator Middle School Counselor Family Services Coordinator Instructional Supervisor Secretary Information Services Clerk Custodial Personnel Plant Operations Director/Mgr School Psychologist School Social Worker Instructional Supervisor School Psychologist Title I Director Special Education Specialist Instructional Supervisor Support Services Secretary/Clerk School Psychologist Instructional Supervisor Finance/Business Service Mgr Secretary Plant Operations Director/Mgr Instructional Supervisor Instructional Supervisor School Psychologist RESA Director School Improvement Specialist Instructional Supervisor Secretary School Psychologist

SALARIES

TRAVEL

$

15,153.32 $

687.81

61,476.96

5,777.91

27,469.26

2,484.10

59,556.00

5,902.62

17,280.00

553.63

48,555.00

3,035.72

80,090.40

3,406.19

30,312.80

1,823.89

76,761.27

4,015.54

41,457.80

1,209.04

36,340.80

38.00

53,963.12

2,140.26

63,278.60

2,528.53

18,237.96

7,317.01

50,666.40

8,605.06

21,876.00

8,084.78

61,476.96

3,782.38

23,379.96

286.56

11,821.64

102.92

4,914.00

37,430.40

849.77

48,913.12

648.10

32,217.12

3,287.37

48,267.00

3,1'95.45

33,627.30

1,418.64

78,590.40

5,079.63

51,245.32

2,003.53

48,906.20

1,625.08

26,880.00

30,696.48

1,761.12

9,047.50

35,282.40

58.24

11,803.00

160.48

34,125.00

33,500.10

1,521.62

33,607.62

1,988.28

45,237.50

2,293.18

86,766.00

8,678.82

78,590.40

5,192.38

52,465.82

2,915.63

17,151.68

8.96

59,394.22

3,076.72

$ 1,738,366.46 $ 106,991.32

-17,228.22 35,037.84

$ 1,756,176.08 $ 106,991.32 - 5-

SECTION II AUDITEE'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, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-8724-99-01 FS-8724-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8724-00-01

I concur with this finding. At the present time we do not intend to address this issue.



SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

CHATTAHOOCHEE-FLINT REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8724-01-01
The Chattahoochee-Flint Regional Educational Service Agency did not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the financial statements ofthe Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agericy to establish accounting controls and procedures to provide for maintenance ofa 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.