G-A Aioo . RI f ;)..6 i H4 i1q1 ,. 4<1; MANAGEMENT REPORT HEART OF GEORGIA SCHOOL SYSTEMS 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 HEART OF GEORGIA SCHOOL SYSTEMS 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 SECTION II 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 STAlE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 January 11, 1999 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 _Heart of Georgia School Systems Regional Educational Service Agency Board of Control Ladies and Gentlemen: As part of our audit ofthe 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 ofGeorgia 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 Heart of Georgia School Systems Regional Educational Service Agency. Accordingly, the financial statements and compliance activities of the Heart of Georgia School Systems Regional Educational Service Agency were examined to the extent considered necessary in order to express an opinion as to the fair presentation of the financial statements contained in the State of Georgia 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 Heart ofGeorgia School Systems Regional Educational Service Agency as ofand 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 ofthe Heart of Georgia School Systems Regional Educational Service Agency. However, this report is a matter of public record and its distribution is not limited. a - ~ Respectfully submitted, Claude L. Vickers State Auditor CLV:gp SECTION I SELECTED FINANCIAL INFORMATION HEART OF GEORGIA SCHOOL SYSTEMS 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 A11 11 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 Business Administration Maintenance and Operation of Plant Other Support Services Capital Outlay Debt Service Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Other Sources Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1, 1997 Adjustments GENERAL FUND BUDGET ACTUAL SPECIAL REVENUE FUND BUDGET ACTUAL $ 683,685.00 $ 737,913.27 1,000.00 2721343.00 6721085.21 $ 9561028.00 $ 114101998.48 $ 368,724.00 $ 361,379.00 1,433,256.09 1,338,908.50 1171366.73 $ 118011980.09 $ 118171654.23 $ 115,418.00 $ 116,836.78 392,236.00 530,794.35 258,174.00 259,004.85 58,900.00 101,619.00 134,582.33 123,401.21 3,472.36 195,909.77 71199.15 $ 9261347.00 $ 11371,200.80 $ 291681.00 $ 39z797.68 $ 374,359.46 $ 537,621.81 706,201.27 739,541.59 336,351.25 154,204.70 146,734.79 125,710.50 184,276.79 12,991.00 277,452.44 12,377.77 182,405.00 $ 11987,270.62 $ 1,8021957.75 $ -185,290.53 $ 141696.48 $ 711929.70 $ 29,681.00 $ 111,727.38 255,111.23 276,357.04 24,074.56 $ -185,290.53 $ 14,535.81 0.71 14,696.48 902.20 FUND BALANCE JUNE 30, 1998 $ 3081866.79 $ 3881084.42 $ -170,754.01 $ 151598.68 SUMMARY OF FUND BALANCE Reserved State Programs Federal Programs Sick and Personal Leave Unreserved Undesignated $ 51670.00 $ 5,670.00 382,414.42 $ 2,178.24 13,420.44 $ 15,598.68 0.00 $ 388,084.42 - 1- $ 15,598.68 HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 1998 EXHIBIT"B" AGENCY/FUNDING GRANTS Education, Georgia Department of Other State Programs Georgia Learning Resources System Health Insurance Regional Educational Service Agencies Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification PSATExam Lottery Program Instructional Technology CONTRACT Education, Georgia Department of Provide Technology and Support for Department Staff in the Use of the Technology Center OTHER Education, Georgia Department of Workshop Fees GENERAL FUND SPECIAL REVENUE FUND $ $ 27,904.52 623,564.00 85,208.00 121.75 83,447.00 99,200.00 1115.00 178,732.00 $ 737,913.27 $ ==3==6=1,=37=9=.o=o -2- HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1998 EXHIBIT"C" Indirect Cost Special Revenue Fund Interest Earned Medicaid Reimbursements Sales and Services Services Provided Shared Services Projects Boards of Education Bleckley County Dodge County Dublin City Laurens County Montgomery County Pulaski County Telfair County Treutlen County Wheeler County Wilcox County Laurens County Board of Health Workshop Fees Other GENERAL FUND $ 87,571.66 5,727.09 166,187.94 SPECIAL REVENUE FUND 14,878.15 23,492.01 27,732.15 90,983.75 $ 9,158.43 11,286.14 14,953.86 46,638.97 9,295.86 89,376.68 741802.52 24,000.00 22,200.00 4,700.00 8,000.00 13,000.00 32,720.49 12z746.24 $ 672,085.21 $ ==1=1=7,=36=6=.7=3 -3- HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIO!'::!!AL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 1998 EXHIBIT"D" NAME TITLE CATEGORY SALARIES TRAVEL AMERSON,BARBARAJ OJT Client Service Specialist $ 22,800.00 $ 4,850.50 BONNER, ERIC Clerical Aide 106.43 BOUlWELL, BETTINA B JTPA Instructor 24,840.00 2,058.25 BRADFIELD, JUNE D Executive Director 78,449.40 5,558.87 BROOKS, NANCY Clerical Aide 131.33 BRYANT, RONALD R Coordinator 42,699.96 2,987.75 CANNON, SHIRLEY Secretary 20,408.76 416.90 CHRISTIAN, JOYCE M GLRS Coordinator 59,369.04 3,606.33 DEVOE, TOMIKA Clerical Aide 1,130.03 FRAISER, PAULA Science Consultant/Staff Development Coordinator 68,214.20 3,433.43 GAPCZVNSKI, SELINA H Assessment Specialist 24,050.00 7,406.50 GORNTO, MARLA M JTPA Employment Specialist 1,877.00 GUNDY, KYRA L OJT Client Service Specialist 19,200.00 5,792.50 HEMPHILL, JUDYE R Secretary 16,621.27 36.00 HERRINGTON, B ALANE Associate School Psychologist 34,127.16 1,972.20 HORNE, TINA Clerical Aide 126.18 HOWELL, CONNIE A Reading/Language Arts Consultant 53,721.12 2,186.54 IVEY, PATRICK L JTPA Case Manager 26,656.63 1,615.25 JONES,ANNS OJT/Production Skills Coordinator 37,751.96 662.00 KEENE, BETTY H GLRS Child Serve Coordinator 40,455.80 2,074.74 KERSEY, STEPHANIE D Assistant Bookkeeper 3,568.50 KINCHEN, GLENDA MIS Specialist/Monitor 24,831.60 452.85 LEWIS, JUNE G Director - Technology Center 69,481.20 3,141.58 LOCKE, MARLYN P JTPA Case Management, Youth Competency, 697.47 and Summer Program Coordinator 44,676.00 MASON, ERIC D Clerical Aide 126.18 MCCRANIE, JUDYE JTPA Intake Specialist/Instructor 15,040.56 2,021.50 MCDILDA, LORRAINE D Associate School Psychologist 48,744.52 2,928.30 MCGRIFF, SHEMEKIA Clerical Aide 79.83 MOORE, GERALD T General Clerk 1,148.47 PHILLIPS, TAKESHA L Clerical Aide 82.40 PITTMAN, SYLVIA JTPA Case Manager 23,088.00 896.30 ROGERS, DAVID M Technology Specialist 30,458.35 3,586.62 ROLAND, LINDA OJT Client Service Specialist 25,440.00 5,452.14 SEWELL, ROBERT G JTPA Case Manager 8,900.00 1,005.25 SHEFFIELD, JOANNE E Secretary 13,992.00 251.34 SMITH, JOHN S Assistant Bookkeeper 2,384.00 SOLES, AMANDA J Clerical Aide 131.33 STANLEY, JOYS Finance Director 42,070.68 142.20 STOREY, DANIELE Technology Center Director 6,TT1.84 SUMNER, CAROLYN R GLRS Secretary 18,830.04 308.00 '-, TALLEY, VICKI G Instructional Technology Specialist 31,500.00 4,041.05 TAYLOR, KIMBERLYM GLRS Therapist 37,500.00 3,224.06 WEST, CHERYLL Generalist Consultant 50,794.04 2,820.74 WILLIAMS, JUAQUITA L JTPA Case Manager 18,912.00 2,011.90 WINSLETTE, JANICE OJT Client Service Specialist 12,880.00 1,107.75 WOODARD, HOLLY Clerical Aide 126.18 WYNN, DEBRA T Registrar 19,800.00 240.00 WYNN, DONNA L Drug-Free Schools Coordinator 611054.44 31494.98 $ 1,185,148.43 $ 82,481.79 Accruals June 30, 1997 June 30, 1998 -50,782.50 381314.82 $ s_ _ _ 11112,680.75 82.,.i4_8_1..,.1.9... -4 - SECTION IT AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS HEART OF GEORGIA SCHOOL SYSTEMS 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 8764-93-01 8764-95-01 8764-96-01 FS-8764-97-01 Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses CORRECTIVE ACTION/RESPONSES GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Cpntrol Number: FS-8764-97-01 Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. PRIOR YEAR FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS . FINDING CONTROL NUMBER AND STATUS 8764-96-01 Previously Reported Corrective Action Implemented SECTION ID CURRENT YEAR FINDINGS AND QUESTIONED COSTS HEART OF GEORGIA SCHOOL SYSTEMS REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1998 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-98-01 The Heart ofGeorgia School Systems Regional Educational Service Agency does not maintain a system-wide General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements ofthe Agency being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Agency to establish accounting control 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.