STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 
 
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MANAGEMENT REPORT 
HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY 
I 
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA 
YEAR ENDED JUNE 30, 2001 
Russell W. Hinton 
State Auditor 
 
 HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY 
 
J 
 
~ 
 
M- ANAGEMENT REPORT 
 
- TABLE OF CONTENTS - 
 
LETTER OF TRANSMITTAL 
 
SECTION I 
 
SELECTED FINANCIAL INFORMATION 
 
EXHffiITS 
 
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 
 
SECTIONll 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) 6562174 
 
...... 
1/ 7 b 
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 Heart of Georgia Regional Educational Service Agency Board of Control 
Ladies and Gentlemen: 
As part of our audit ofthe general purpose financial statements ofthe State ofGeorgia 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 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, 2001. 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, 
. 
~. 
R ssell W. Hinton State Auditor 
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 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, 2001 
 
EXHIBIT "A" 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
 
$ 1,356,148.00 $ 1,232,717.90 
416,558.20 1,182.172.89 $ 1,772,706.20 $ 2,415,490.79 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Central Support Services Other Support Services 
Debt Service 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
 
$ 7,002.00 $ 9,139.24 
 
78,007.00 546,055.20 250,150.00 
 
101,866.07 1,239,752.46 
464,048.53 
 
76,254.00 185,011.00 
13,937.00 
 
86,512.48 183,297.05 165,012.13 179,132.74 
37,920.69 
 
$ 1,156,416.20 $ 2,466,681.39 
 
$ 616,290.00 $ -51,190.60 
 
OTHER FINANCING SOURCES (USES} 
 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
 
$ -5,450.00 $ -5,450.00 
 
Excess of Revenues and Other Financing Sources 
over (under) Expenditures and Other Financing Uses $ 616,290.00 $ -56,640.60 
 
FUND BALANCE JULY 1, 2000 
 
651,651.88 
 
654,991.64 
 
FUND BALANCE JUNE 30, 2001 
 
$ ...l,267,941.88 $ 598.351.04 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
$ 1,478,958.34 $ 1,473,888.30 
 
1,801,860.18 1,256,220.25 
 
12,450.00 
 
240,306.28 
 
$ 3,293,268.52 $ 2,970,414.83 
 
$ 860,058.76 $ 881,486.00 
 
293,020.00 605,978.41 
72,293.48 20,002.00 36,060.00 80,759.00 
 
495,204.33 613,365.42 
68,494.79 34,179.11 35,605.00 61,687.78 
 
1,198,911.40 
 
774,032.45 
 
$ 3,167,083.05 $ 2,964,054.88 $ 126,185.47 $_~ 6,3= 59.~ 95 
 
$ 
 
5,450.00 
 
$-~ 5,4= 50.~ 00 
 
$ 126,185.47 $ 11,585.71 
 
11,809.95 11,253.44 
 
$ 137.771.18 $ 23,063.39 
 
SUMMARY OF FUND BALANCE 
Reserved Sick and Personal Leave State Programs 
Unreserved Undesignated 
 
$ 
 
5,670.00 
 
$ 
 
5,670.00 
 
592.681.04 
 
$ 598,351.04 
 
- 1- 
 
$-~ 5,0= 00.0~0 
 
$ 
 
5,000.00 
 
18,063.39 
 
$ ~..::2~3.063.39 
 
 HEART OF GEORGIA 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 Georgia Learning Resources System Health Insurance Innovative Programs Regional Educational Service Agencies Severely Emotionally Disturbed Youth Apprenticeship Program 
 
CONTRACTS Education, Georgia Department of School Improvement Intervention Teams Intensive Services 
 
OTHER 
 
Education, Georgia Department of 
 
 
 
Workshop Fees 
 
Technology, Georgia Institute of 
 
Through Board of Regents of the University System of Georgia 
 
Lottery Programs 
 
Educational Technology Training Center 
 
Other State Programs 
 
Educational Technology Training Center 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 93,484.00 $ 42,246.19 
5,000.00 690,148.00 
1,050,557.47 90,000.00 
 
499,583.71 740.00 64,750.00 170,096.83 
$ 1,232,717.90 $ 1,473,888.30 
 
 
- 2- 
 
 HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2001 
 
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 Severely Emotionally Disturbed 
Health and Human Services, U. S. Department of Through Georgia Department of Education . Cooperative Agreements to Support Comprehensive School Health Programs to Prevent the Spread of HIV and Other Important Health Problems 
CONTRACTS Education, U. S. Department of Through Georgia Department of Education Technical Assistance to Schools 
Health and Human Services, U. S. Department of Through Goodwill Industries of the Coastal Empire Goodworks 
Labor, U. S. Department of Through Job Training Unlimited, Incorporated Welfare to Work Workforce Investment Act Adult Program Dislocated Workers Youth Activities Through Middle Flint Regional Development Center Job Training Partnership Act 
 
SPECIAL REVENUE 
FUND 
 
$ 
 
5,000.00 
 
64,598.75 
 
129,023.50 123,536.31 
 
300.00 
100,000.00 
950.99 
10,625.57 311,401.64 287,608.86 196,944.93 
26,229.70 
$ 1,256,220.25 
 
- 3- 
 
 HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE 
YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "0" 
 
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 
 
SPECIAL REVENUE 
FUND 
 
$ 27,041.23 80,810.68 
 
61,565.10 13,862.76 409,731.02 175,659.54 $ 
 
33,088.63 
 
327,495.55 86,607.01 
 
206,267.65 950.00 
 
$ 1,182,772.89 $ 240,306.28 
 
, 
 
- 4- 
 
 HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "E" 
 
NAME 
AMERSON, AUSTIN, AUSTIN, BATEMAN, BELL, BILLUPS, BOUTWELL, BOWEN, BRADFIELD, BROWN, BROWN, BRYAN, BRYANT, BURCH, CANNON, CARMAN, CARROLL, CHRISTIAN, CLEMENTS, COLBER, COLLINS, CORBIN, DAILY, DALLEY, DANIELS, DISHLER, DOPSON, DUNCAN, EDMONDSON, EVANS, EVANS, EVANS, EVANS, FISHER, FOSKEY, FRAISER, FREIS, GIDDENS, GILES, GREGORY, HARDY, HARRELL, HARRIS, HEMPHILL, HICKMAN, HOLDER, HORNE, HOWELL, HUMPHREY, JAMES, JONES, JONES, JONES, JOYCE, KEENE, KERSEY, KINCHEN, KITCHENS, LEWIS, LINDSEY, 
 
 
BARBARAJ DEBORAH M MERISA T WILLIAM M BETTY B SHANTRICE J BETTINA B SHERYL JUNE D JEANETTE F TONYAJ MELANIE L RONALDR WALTERJ SHIRLEY CINDY G DONNA JOYCEM ALLISON M CHERYL B PATRICIA A ELIZABETH CHARLES H JACQUELINE G MARGIE B TINA MARYH CAROLW CORINE W BARBARA BUFFIE PHILIS D TONYAL ELAINE B JODY PAULAM JULIE A LINDA SANDY ALLISON DANETTA L ALEPH E BETTY JUDYE R FELICIA WILLIAM III TERRY L CONNIE A S FAITHE JENKIN BOBBYCJR ANNS BETTY F PAULAR L1SAM BETTYH STEPHANIE D GLENDA LAUREL A JUNEG ESSIE 
 
TITLE CATEGORY 
ParaprofessionalfTeacher Aide SUbstitute Teacher Secretary Psycho-Educational Teacher Substitute Teacher Psych-Ed ParaprofTeacher Aide ParaprofessionalfTeacher Aide Substitute Teacher RESA Director Finance/Business Service Mgr Psycho-Educational Teacher General Admin Secretary/Clerk Instructional Supervisor ParaprofessionalfTeacher Aide General Admin Secretary/Clerk Psycho-Ed Social Worker Substitute Teacher Director of GLRS Occupational Therapist (OT) Psycho-Educational Teacher ParaprofessionalfTeacher Aide Family Services Coordinator SUbstitute Teacher 
 
Psycho-Ed School SedClerk Substitute Teacher SUbstitute Teacher Support Serv Secretary/Clerk Director of Child Serve SUbstitute Teacher Substitute Teacher Substitute Teacher ParaprofessionalfTeacher Aide Psych-Ed ParaprofTeacher Aide Psych-Ed ParaprofTeacher Aide Psycho-Educational Teacher Instructional Supervisor ParaprofessionalfTeacher Aide Substitute Teacher Substitute Teacher Substitute Teacher Occupational Therapist (OT) Technology Specialist Substitute Teacher General Admin Secretary/Clerk Psycho-Educational Teacher Substitute Teacher Psych-Ed ParaprofTeacher Aide School Improvement Specialist ParaprofessionalfTeacher Aide Substitute Teacher ParaprofessionalfTeacher Aide Psych-Ed ParaprofTeacher Aide Occupational Therapist (OT) Substitute Teacher Director of Child Serve Bookkeeper ParaprofessionalfTeacher Aide Psycho-Educational Teacher Instructional Supervisor Substitute Teacher 
-5- 
 
SALARIES 
 
TRAVEL 
 
$ 
 
23,729.55 $ 
 
3,534.90 
 
8,430.00 
 
17.36 
 
16,200.00 
 
28,603.00 
 
11,236.61 
 
13,043.88 
 
28,200.00 
 
1,005.30 
 
50.00 
 
97,272.00 
 
3,126.90 
 
29,243.61 
 
529.60 
 
34,962.88 
 
165.64 
 
14,723.20 
 
139.16 
 
57,940.20 
 
1,679.14 
 
10,375.12 
 
1,695.40 
 
23,173.92 
 
223.06 
 
41,990.26 
 
2,967.10 
 
100.00 
 
76,542.48 
 
5,606.41 
 
13,650.00 
 
130.48 
 
34,638.00 
 
510.27 
 
7,654.40 
 
1,297.20 
 
15,456.20 
 
3,072.49 
 
200.00 
 
8,948.61 
 
7,382.25 
 
100.00 
 
12,854.40 
 
297.64 
 
40,865.02 
 
3,345.66 
 
35.40 
 
461.07 
 
45.00 
 
10,153.04 
 
627.22 
 
12,957.94 
 
36.89 
 
13,519.70 
 
114.24 
 
20,456.24 
 
103.94 
 
72,902.31 
 
4,237.05 
 
17,840.00 
 
1,227.90 
 
70.00 
 
2,987.50 
 
400.00 
 
24,043.50 
 
53,620.15 
 
804.70 
 
185.00 
 
22,439.04 
 
38.64 
 
36,445.80 
 
508.62 
 
100.00 
 
12,007.50 
 
43.74 
 
75,462.96 
 
1,786.77 
 
7,475.00 
 
1,007.70 
 
45.00 
 
48,650.00 
 
1,243.50 
 
11,683.18 
 
59.20 
 
37,681.33 
 
270.00 
 
4,588.25 
 
13,348.58 
 
28,797.36 
 
1,096.10 
 
35,702.70 
 
1,031.10 
 
69,813.96 
 
3,516.39 
 
240.00 
 
 HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "E" 
 
NAME 
LINDSEY, LOCKE, LOWTHER, LUCAS, MACK, MANNING, MCCRANIE, MCDILDA, MCDILDA, MORRIS, MORRIS, MOYE, MULKEY, PEACOCK, PEACOCK, PENNYMON, PHILLIPS-LEWIS, PITTMAN, PITTMAN, POWERS, RICHARDSON, ROGERS, RULTAND, SAPP, SEWELL, SHARPTON, SHEFFIELD, SHEFFIELD, SIMMONS, SMITH, SMITH, SQUIRES, STANLEY, STANLEY, STANLEY, SWINT, TAYLOR, TWIGGS, WALDREP, WALKER, WARNOCK, WEBB, WEST, WIGGINS, WILLIAMS, WILLIAMS, WILLIAMS, WINSLETTE, WYNN, WYNN, YOUNG, 
 
TABETHA MARLYN P EDWARD WAYNE JOHNW KENNETH ALLISON H JR JUDYE CARLA LORRAINE D CINDY FRANKG ERIKA LYNNETE GLENDAC ELIZABETH LINDA H DENNIS JOANNA SUSAN T SYLVIA SYLVIA ANITA B DAVID M KATHLEEN TERESAG ROBERTG DEBORAH JOANNE E JOSHUAM DONALD WAYNE BETTYH TONYA COLVIN MONICA CYNTHIA JOYS SHIRLEY JACUELYN KIMBERLY MICHELLE JAMES L JENNIFER D THOMAS GINAB CATHY CHERYL L LESLIE CHARLOTTE C GLENDAG JUAQUITA LACHAN JANiCE DEBRA T DONNAL TERRIE L 
 
TITLE CATEGORY 
Substitute Teacher ParaprofessionallTeacher Aide Substitute Teacher Psych-Ed ParaprolTeacher Aide Psych-Ed ParaprolTeacher Aide Director of Psycho-Ed Prog ParaprofessionallTeacher Aide Substitute Teacher School Psychologist Substitute Teacher Psycho-Educational Teacher Support Serv Secretary/Clerk Psycho-Educational Teacher ParaprofessionallTeacher Aide Youth Apprenticeship Director Substitute Teacher Psycho-Educational Teacher Psycho-Educational Teacher ParaprofessionallTeacher Aide Substitute Teacher Psych-Ed ParaprolTeacher Aide Technology Specialist Substitute Teacher Physical Therapist (PT) ParaprofessionallTeacher Aide Substitute Teacher General Admin Secretary/Clerk Technology Specialist Psych-Ed ParaprolTeacher Aide ParaprofessionallTeacher Aide Substitute Teacher Substitute Teacher Substitute Teacher Finance/Business Personnel Substitute Teacher Substitute Teacher Occupational Therapist (OT) ParaprofessionallTeacher Aide Psycho-Educational Teacher Psych-Ed ParaprolTeacher Aide Physical Therapist (PT) Substitute Teacher Instructional Supervisor Substitute Teacher Instructional Supervisor ParaprofessionallTeacher Aide ParaprofessionallTeacher Aide ParaprofessionallTeacher Aide Support Serv Secretary/Clerk Instructional Supervisor Psycho-Ed Social Worker 
 
Accruals June 30, 2000 June 30, 2001 
 
SALARIES 
 
TRAVEL 
 
$ 
 
100.00 
 
50,724.00 $ 1,043.05 
 
3,225.00 
 
47.04 
 
15,007.45 
 
31.64 
 
13,661.70 
 
311.60 
 
83,322.36 
 
3,979.23 
 
18,846.72 
 
1,301.28 
 
50.00 
 
54,302.36 
 
3,666.78 
 
45.00 
 
29,281.30 
 
205.92 
 
7,514.00 
 
50,708.63 
 
439.95 
 
8,320.00 
 
920.70 
 
60,038.04 
 
3,229.72 
 
5,867.36 
 
43,844.85 
 
851.01 
 
29,281.30 
 
245.76 
 
26,220.00 
 
61.72 
 
120.00 
 
9,365.80 
 
79.64 
 
42,065.69 
 
1,124.24 
 
45.00 
 
30,250.00 
 
13,199.48 
 
767.76 
 
2,750.00 
 
15,887.52 
 
273.26 
 
25,748.04 
 
557.75 
 
10,919.68 
 
87.92 
 
2,939.20 
 
94.90 
 
100.00 
 
50.00 
 
195.00 
 
50,769.96 
 
450.00 
 
100.00 
 
52,442.38 
 
9,999.96 
 
.1,192.29 
 
27,740.27 
 
65.68 
 
13,946.70 
 
3,400.00 
 
390.00 
 
76,942.20 
 
3,538.94 
 
200.00 
 
68,814.00 
 
2,929.73 
 
20,923.00 
 
837.60 
 
8,390.90 
 
292.60 
 
23,134.50 24,497.10 
 
2,750.56 
. 
81.48 
 
69,114.00 
 
3,500.60 
 
54,596.35 
 
2,613.61 
 
$ 2,451,839.90 $ 83,951.37 
 
-35,331.15 39,949.44 
 
2,851.32 
 
$ 2,456,458.19 $ 86,802.69 
-6- 
 
 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, 2001 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-8764-99-01 FS-8764-00-01 
 
Further Action Not Warranted Unresolved - See Corrective ActionJResponses 
 
CORRECTIVE ACTIONIRESPONSES 
 
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-00-01 
 
Due to the financial limitations and the inability of the current accounting system, the Heart of Georgia Regional Educational Service Agency is not able to establish accounting controls and procedures to provide for maintenance ofthe General Fixed Assets Account Group. 
 
 SECTIONllI CURRENT YEAR FINDINGS AND QUESTIONED COSTS 
 
 
 HEART OF GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8764-0l-0l 
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 controls and procedures to provide for maintenance ofa 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.