Management report, Heart of Georgia School Systems Regional Educational Service Agency, an organizational unit of the state of Georgia, year ended June 30, 1999

MANAGEMENTREPORT HEART OF GEORGIAREGIONAL EDUCATIONALSERVICEAGENCY AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDEDJUNE 30,1999

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVJCE AGENCY
MANAGEMENT REPORT - TABLE OFCONTENTS -

LETTER OF TRANSMl'ITAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET AND ACIUAL

GENERAL AND SPECIAL REVENUE FUNDS

1

B SCHEDULE OF STATE REVENUE

2

C SCHEDULE OF FEDERAL REVENUE

3

D SCHEDULE OF OTHER REVENUE

4

E SCHEDULE OF SALARIES AND TRAVEL

5

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

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
January 5, 2000

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 Regional Educational Service Agency Board of Control
Ladies and Gentlemen:
As part of our audit of the general purpose financial statements ofthe 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, 1999, we have performed certain audit procedures at the Heart of Georgia Regional Educational Service Agency. Accordingly, the financial statements and compliance activities ofthe Heart of Georgia 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 Heart of Georgia Regional Educational Service Agency as of and for the year ended June 30, 1999. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use of management of the Heart of Georgia 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,

RWH:gp

State Auditor

SECTIONI SELECTED FINANCIAL INFORMATION

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
COMBINED SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUNP BALANCES
BUDGET AND ACTUAL GENERAL AND SPECIAL RE\lENUE FUNDS
YEAR ENDED JUNE 30 1999

EXHIBIT "A"

REVENUES
Stale Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Pupil Services Improvement of Instructional Services Educational Media Services GeneralAdministration School Administration Business Administration Maintenance and Operation of Ptant Other Support Services
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases OtherSources 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 1998
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$ 726,726.00 $ 761,487.36 291,199.00 1,059,881.88
$ 1,017,925.00 $ 1,821,369.24

$ 123,657.00 $ 128,693.68

459,924.00

583,903.24

232,ln.00

657,288.71

68,353.00 139,500.00
5,000.00

71,241.96 157,029.28
40,878.19 67,670.32 21,538.49

$ 1,028,611.00 $ 1,728,243.87

$ -10,686.00 $ 93,125.37

$ 12,675.00 -113.64
$ 12,561.16

$ -10,686.00 $ 105,688.53

288,288.14

388,064.42

857.73

FUND BALANCE JUNE 30 1999

$ 256;439.87 $ 493,770.95

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 282,068.00 $ 303,717.80

l,070,n5.50 1,478,438.22

80,531.00

180,365.14

$ 1,433,374.50 $ 1,962,521.16

$ 245,864.59 $ 563,764.27

542,360.11

636,527.40

302,830.49

70,085.59

100,142.02

55,825.00

372,029.55

13,140.00 110,804.02

12,588.37 280,826.62

$ 1,340,909.80 $ 1,985,856.33

$

92,464.70 $ -3,335.17

$

113.64

$

113.64

$

92,464.70 $ -3,221.33

148,698.10

15,598.68

-300.93

$ 240,861.87$ 12,3n.35

SUMMARY OF FUND BALANCE
Reserved State Programs Sick and Personal Leave
Unreserved Undesignated

$

5,670.00

488,100.95

$ 493,nO.95 -1-

$ 12,3n.35 0.00
$ 12,3n.35

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 1999

EXHIBIT"B"

AGENCY/FUNDING
GRANTS Education. Georgia Department of Other State Programs Georgia Learning Resources System Health Insurance Innovative Programs Low Incidence PSAT Exam Regional Educational Service Agencies Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification 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

$

$

33,663.36

308.00 641,518.00

85,208.00

83,958.00 5,000.00
16,650.00
56,499.80

141,610.00

790.00

$

761,487.36 $

303,717.80

-2-

HEART OF GEORGIAREGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERALREVENUE YEAR ENDEDJUNE 30.1999

EXHIBIT"C"

AGENCYIFUNDING
GRANTS Corporation for Nationaland Community Service Through GeorgiaDepartmentof Education Leam and Serve America Schooland CommunityBasedPrograms
Education, U. S. Department of ThroughGeorgiaDepartmentof Education Safe and Drug-FreeSchools Elementaryand Secondary Education Act Capital OuUay Individualswith Disabil~ies Education Act Part B - SpecialEducation Special Projects GeorgiaLearningResources System Part D - Special Education Personnel Development and ParentTraining Georgia Learning Resources System
CONTRACTS Healthand HumanResources. U. S. Department of ThroughGeorgia Departmentof Education AIDS School HealthEducation Implementation of a Programin Comprehensive Health Education
Labor, U. S. Departmentof Job Training PartnershipAct ThroughGeorgiaDepartmentof Labor Through GeorgiaDepartmentof Technicaland Adult Education Through Middle Flint RegionalDevelopment Center ThroughSoutheastGeorgiaRegional Development Center

SPECIAL REVENUE
FUND

$

1,000.00

98,417.06 45,344.22

104,229.79 4,141.36

600.00
699.00 36,196.01 1,115,370.91 72,439.87
$~=r.1;,4;78.,4:3.8=.2=2

-3-

HEARTOF GEORGIAREGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHERREVENUE YEAR ENDEDJUNE 30 1999

EXHIBIT"D"

E-Rate Reimbursements GeorgiaYouth Scienceand TechnologyCenter Indirect Cost
Special RevenueFund InterestEarned MedicaidReimbursements Registration Fees Sales and Services
Computer Maintenance Services Provided
Shared Services Projects Various Sources
Workshop Fees Other

GENERAL FUND

$

78,912.89

72,811.95

74,940.40 7,138.93 359,619.66 56,100.00

3,905.00

SPECIAL REVENUE
FUND

291,181.48 $ 106,714.44
8,557.13

137,211.50 42,940.72
212.92

$ 1,059,881.88 $

180,365.14

-4-

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES ANP TRAVEL YEAR ENDEp JUNE 30 1999

EXHIBIT"E"

NAME

AMERSON, BOUTWELL, BRADFIELD, BRYANT, CANNON, CHAPMAN, CHRISTIAN, DOPSON, FRAISER, GAPCZVNSKI, GRUBEN, HARRELL, HEMPHILL, HERRINGTON, HOWELL, JONES, KEENE, KERSEY, KINCHEN, LEWIS, LOCKE,

BARBARAJ BETTINAB JUNED RONALDR SHIRLEY HAROLDLJR JOYCEM MARYH PAULAM SELINA H DIANA A ALEPH E JUDYER BALANE CONNIE A ANNS BETTYH STEPHANIED GLENDA JUNEG MARLYNP

MCCRANIE, MCDILDA, PIITMAN, ROGERS, ROLAND, SEWELL, SHEFFIELD, SHEFFIELD, STANLEY, SUMNER, TALLEY, TAYLOR, TWIGGS, WEST, WILLIAMS, WILLIAMS, WINSLEITE, WYNN, WYNN,

JUDYE LORRAINED SYLVIA DAVIDM LINDA ROBERTG JOANNEE JOSHUAM JOYS CAROLYNR VICKI G KIMBERLY MICHELLE JAMESL CHERYLL GLENDAG JUAQUITA LACHAN JANICE DEBRAT DONNAL

Accruais June 30, 1998 June 30, 1999

TITLE CATEGORY
OJT Client Service Specialist JTPA Instructor Director Instructional Supervisor Secretary ParaprofessionalfTeacher Aide GLRS Coordinator Secretary Staff Development Coordinator Assessment Specialist ParaprofessionalfTeacher Aide Technclogy Specialist Secretary School Psychologist Reading/Language Arts Consultant OJTJProduction Skills Coordinator GLRS Child Serve Coordinator Bookkeeper MIS Specialists/Monitor Technology Center Director JTPA Case Management, Youth Competency, and Summer Program Coordinator JTPA Intake Specialistllnstructor School Psychologist JTPA Case Manager Technology Specialist OJT Client Service Specialists JTPA Gase Manager Secretary Technology Specialist Finance Director Secretary Technology Specialist Occupational Therapist JTPA Gase Manager Instructional Supervisor
JTPA case Manager
JTPA Case Manager OJT Client Service Specialist Registrar Drug Free Schools Coordinator

SALARIES

TRAVEL

$ 24,168.00 $ 26,328.00 82,828.32 48,661.20 21,633.24 1,300.00 66,194.04 9,382.75 64,093,56 15,211.00 15,733.31 15,891.00 18,706.92 38,067.50 71,513.26 40,015.69 35,536.96 8,825.10 26,321.52 65,393.84

5,290.50 2,362.17 5,319.33 1,886.76
334.56
2,749,54 152.50
2,907.68 4,711.55 3,840.00
227.00
1,578.00
1,066.47 1,273.79
43.75 386.00 1,108.68

47,351.83 17,243.70 50,859.41 24,488.00 37,400.04 20,633.79 25,440.00 14,631.52 11,495.00 44,594.88 19,299.96 23,100.00 47,250.00 9,999.96 53,364.86 5,070.00 23,916.00 17,084.80 21,780.00 64.593.80

31.75 1,950.75 3.492.90
364.50 1,193.21 2,570.50 2,189.50
286.81 17.75 58.50
250.00 745.10
781.75 2,079.60
107.00 892.50 1,743.00 44.50 3,734.70

$ 1,275,482.36 $ 57,772.60

-38,314.82 26,185.90

$ 1,263,353.44 $ 57,772.60

-5-

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS
YEAR ENDED TIJNE 30 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-8764-97-01 FS-8764-98-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETSfPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-98-01

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.

SECTIONill CURRENTYEARFINDINGS AND QUESTIONED COSTS

HEART OF GEORGIAREGIONALEDUCATIONAL SER\TICE AGENCY
SCHEDULEOF FINDINGSAND OlJESTIONEP COSTS
YEAR ENDED JUNE 30. 1999
FINANCIALSTATEMENTFINDINGSAND OlJESTIONEDCOSTS
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-99-01
The Heartof GeorgiaRegionalEducational ServiceAgencydid not maintaina GeneralFixed AssetsAccount Groupwithin the formal accountingrecords. Ibis conditionresultsin the financial statementsof the Agency being incompleteand not in accordancewith generallyacceptedaccountingprinciples. Appropriate action shouldbe taken by the Agencyto establishaccountingcontroland proceduresto provide for maintenance of a GeneralFixed Assets AccountGroup. Thesesubsidiaryrecordsshouldinclude an inventory of equipment owned by the Agency and should include, but many not be limited to, date acquired, acquisition cost, estimatedreplacementcost, locationand description. Detailedrecordsshouldbe maintained of all additions and deletions to the General Fixed Assets Account Group.