Management report, Heart of Georgia Regional Educational Service Agency, an organizational unit of the state of Georgia, year ended June 30, 2000

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS GtA
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M ANAGEMENT REPORT HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2000
Russell W. Hinton State Auditor

HEART OF GEORGIA 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 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 III CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
November 22, 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 ofour audit ofthe general purpose financial statements ofthe State ofGeorgia presented in the State ofGeorgia Comprehensive Annual Financial Report and the issuance ofa State ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments of 1996, as of and for the year ended June 30, 2000, 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 of the 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, 2000. 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

SECTION I SELECTED FINANCIAL INFORMATION

HEART OF GEORGIA 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. 2000

EXHIBIT"A"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 733,907.00 $ 744,855.25 258,119.00 1,154,725.80

Total Revenues

$ 992,026.00 $ 1,899,581.05

EXPENDITURES

Current 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

$ 74,063.00 $ 75,286.35

493,136.00

651,954.16

10,000.00

245,652.00

570,574.95

78,429.00 176,211.00
2,000.00

78,485.53 228,583.39 134,822.67
13,750.00 25,106.52

Total Expenditures

$ 1,079,491.00 $ 1,778,563.57

Excess of Revenues over (under} Expenditures

$ -87,465.00 $ 121,017.48

OTHER FINANCING SOURCES {USES}

Capital Leases Other Sources Other Uses

$ 33,774.00 6,429.21

Total Other Financing Sources (Uses}

$ 40,203.21

Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -87,465.00 $ 161,220.69

FUND BALANCE JULY 1.1999

378,205.31

493,770.95

Adjustments

FUND BALANCE JUNE 30. 2000

$ 290,740.31 $ 654,991.64

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 357,241.78 $ 397,553.38

1,442,776.14 1,435,414.16

169,229.00

226,744.55

$ 1,969,246.92 $ 2,059,712.09

$ 457,648.87 $ 571,060.36

929,076.26

862,096.44

25,072.82

86,115.89

89,685.03

235,299.72

12,040.00 270,763.88

12,539.32 283,725.92

$ 1,780,717.72 $ 2,054,406.79

$ 188,529.20 $

5,305.30

$ -6,429.21 $ -6,429.21

$ 188,529.20 $ 113,837.27 -0.80

-1, 123.91 12,377.35

$ 302,365.67 $ 11,253.44

SUMMARY OF FUND BALANCE
Reserved Sick and Personal Leave
Unreserved Undesignated

$

5,670.00

649,321.64

$ 11,253.44

$ 654,991.64 - 1-

$ 11,253.44

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30, 2000

EXHIBIT "B"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Other State Programs Georgia Learning Resources System Health Insurance Regional Educational Service Agencies Youth Apprenticeship Program Lottery Programs Educational Technology Centers
CONTRACTS Education, Georgia Department of Leadership Development Grant Provide Technology and Support for Department Staff in the Use of the Technology Center Reading Rescue
OTHER Education, Georgia Department of Registration Fees Workshop Fees

GENERAL FUND

SPECIAL REVENUE
FUND

$

$

34,359.89

653,907.00

89,763.00
80,000.00 60,966.38

4,973.36 48,585.00

166,824.00

75.00 2,955.00

$ 744,855.25 $ 397,553.38

-2-

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2000

EXHIBIT"C"

AGENCY/FUNDING
GRANTS Corporation for National and Community Service Through Georgia Department of Education Learn and Serve America School and Community Based Programs
Education, U.S. Department of Through Georgia Department of Education Safe and Drug-Free Schools Individuals with Disabilities Education Act Part B - Special Education Special Projects Georgia Learning Resources System Part D - Special Education Personnel Development and Parent Training Georgia Learning Resources System
CONTRACTS Education, U.S. Department of Through Georgia Department of Education Elementary and Secondary Education Act Capital Outlay
Labor, U. S. Department of Job Training Partnership Act Through Middle Flint Regional Development Center

SPECIAL REVENUE
FUND

$

5,000.00

84,854.37

137,620.27 1,149.00

114,214.60 1,092,575.92 $ ====1,=43=5=,4=1=4.=16=

-3-

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 2000

EXHIBIT"D"

E-Rate Reimbursement Georgia Youth Science and Technology Center Indirect Cost
Special Revenue Fund Interest Earned Medicaid Reimbursements Registration Fees Sales and Services
Services Provided Shared Services Projects Various Sources
Workshop Fees

GENERAL FUND

$

74,726.64

84,793.15

63,519.51 11,121.89 452,802.55 111,968.48

SPECIAL REVENUE
FUND

274,712.13 $ 81,081.45

226,744.55

$

1,154,725.80 $ ===22=6=,7=4=4=.5=5

-4-

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 2000

EXHIBIT"E"

NAME
AMERSON, AUSTIN, BOUTWELL, BRADFIELD, BRYANT, CANNON, CHRISTIAN, DOPSON, FRAISER, GRUBEN, HARDY, HARRELL, HEMPHILL, HERRINGTON, HOWELL, HUMPHREY, JONES, JONES, KEENE, KERSEY, KINCHEN, LEWIS, LOCKE, MCCRANIE, MCDILDA, PEACOCK, PITTMAN, ROGERS, SEWELL, SHEFFIELD, SHEFFIELD, STANLEY, SUMNER, TAYLOR, TWIGGS, WARNOCK, WEST, WILLIAMS, WILLIAMS, WILLIAMS, WINSLETTE, WYNN, WYNN,

BARBARAJ MERISAT BETTINAB
JUNE
RONALDR SHIRLEY JOYCEM MARYH PAULAM DIANA A DANETTAL ALEPH E JUDYE R BALANE CONNIE A S FAITHE JENKIN ANNS PAULAR BETTYH STEPHANIE D GLENDA JUNEG MARLYN P JUDYE LORRAINE D LINDA H SYLVIA DAVIDM ROBERTG JOANNEE JOSHUAM JOYS CAROLYN R KIMBERLY MICHELLE JAMES L GINAB CHERYLL CHARLOTTEC GLENDAG JUAQUITA LACHAN JANICE DEBRA T DONNAL

Accruals June 30, 1999 June 30, 2000

TITLE CATEGORY
Paraprofessional/Teacher Aide Secretary Paraprofessional/Teacher Aide RESA Director Instructional Supervisor Support Service Secretary/Clerk Director of GLRS Support Service Secretary/Clerk Instructional Supervisor Paraprofessional/Teacher Aide Occupational Therapist (OT) Technology Specialist Support Service Secretary/Clerk School Psychologist School Improvement Specialist Paraprofessional/Teacher Aide Paraprofessional/Teacher Aide Occupational Therapist (OT) Director of Child Serve Bookkeeper Paraprofessional/Teacher Aide Instructional Supervisor Paraprofessional/Teacher Aide Paraprofessional/Teacher Aide School Psychologist Youth Apprenticeship Director Paraprofessional/Teacher Aide Technology Specialist Paraprofessional/Teacher Aide Support Service Secretary/Clerk Technology Specialist Finance/Business Personnel Secretary Occupational Therapist (OT) Paraprofessional/Teacher Aide Physical Therapist (PT) Instructional Supervisor Instructional Supervisor Paraprofessional/Teacher Aide Paraprofessional/Teacher Aide Paraprofessional/Teacher Aide Support Service Secretary/Clerk Instructional Supervisor

SALARIES

$

25,134.72 $

10,085.40

27,384.00

91,239.48

56,230.20

22,498.56

69,117.96

12,480.00

66,618.00

20,800.00

21,450.00

52,440.00

19,455.12

6,458.00

71,226.00

12,057.50

42,417.86

38,316.63

53,215.33

11,966.40

27,376.08

67,818.00

49,248.00

19,627.89

52,632.46

58,257.96

25,452.00

41,139.96

26,460.00

15,424.68

23,873.30

46,378.56

4,181.62

50,760.75

9,999.96

37,400.00

58,959.36

66,817.92

16,824.00

16,066.20

19,968.10

23,958.00

67117.92

$ 1,556,333.88 $

-26,185.90 35,331.15

TRAVEL
5,165.25
1,485.00 2,802.33 2,041.95
194.30 4,169.91
565.75 4,485.40 2,681.45
131.00 2,073.53
1,650.75 1,128.00 1,166.85
2,031.04 17.50
914.25 2,364.29
472.80 1,305.75 3,312.87 2,871.46
300.00 1,887.32 1,753.35
294.55 262.50
94.80 1,008.53
2,616.18 3,008.31
339.25 537.25 2,537.50 265.05 2,883.52
60,819.54

$ 1,565,479.13 $===60="',8=1=9=.54=

-5-

SECTION II 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 QUESTIONED COSTS YEAR ENDED JUNE 30. 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-8764-98-01 FS-8764-99-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-99-01

Due to the financial limitations and the inability ofthe current accounting system, the Heart ofGeorgia RESA is not able to establish accounting controls and procedures to provide for maintenance of the General Fixed Assets Account Group.

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2000
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-00-01
The Heart ofGeorgia 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 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 ofequipment 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.