;A f\ioo ,Rt Elbl M4 !:9q1-~i MANAGEMENT REPORT METROPOLITAN 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 METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY MANAGEMENT REPORT - TABLE OF CONTENTS - LETTER OF TRANSMITTAL SECTION I SELECTED FINANCIAL INFORMATION EXIDBITS 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 STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 November 25, 1998 Governor ofthe State of Georgia Members of the General Assembly of Georgia Members ofthe State Board of Education and Director and Members of the Metropolitan 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 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 Metropolitan Regional Educational Service Agency. Accordingly, the financial statements and compliance activities of the Metropolitan 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 Metropolitan 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 of the Metropolitan Regional Educational Service Agency. However, this report is a matter of public record and its distribution is not limited. Respectfully submitted, L~ Claude L. Vickers State Auditor CLV:jb SECTION I SELECTED FINANCIAL INFORMATION METROPOLITAN 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"A" 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 Central Support Services Other Support Services 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 $ 1,001,521.00 $ 1,038,783.61 168,000.00 281,914.48 $ 1,169,521.00 $ 1,320,698.09 $ 312,921.00 $ 351,846.95 10,500.00 5,461.33 490,400.00 484,495.02 75,200.00 123,000.00 69,500.00 128,000.00 67,812.19 79,361.31 71,351.44 116,191.98 $ 1,209,521.00 $ 1,176,520.22 $ -40,000.00 $ 144,177.87 40,000.00 $ 0.00 $ 144,177.87 612,149.36 566,237.60 -6,867.28 SPECIAL REVENUE FUND BUDGET ACTUAL $ 2,712,698.00 $ 2,701,595.94 670,117.00 528,363.05 16,549.95 $ 3,382,815.00 $ 3,246,508.94 $ 1,683,430.00 $ 1,642,032.37 864,046.00 398,906.00 74,362.00 30,720.00 263,170.00 35,851.00 32,330.00 800,045.35 398,333.91 73,105.89 30,720.00 244,186.15 35,798.73 29,789.91 $ 3,382,815.00 $ 3,254,012.31 $ 0.00 $ -7,503.37 $ 0.00 $ 106,560.40 188,076.13 -7,503.37 44,806.24 FUND BALANCE JUNE 30, 1998 SUMMARY OF FUND BALANCE Unreserved Undesignated $ 605,282.08 $ 710 415.47 $ 294,636.53 $ 37,302.87 $ 710 415.47 '-. $ 37,302.87 - 1- METROPOLITAN 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 Severely Emotionally Disturbed Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification GENERAL FUND SPECIAL REVENUE FUND $ 72,343.94 $ 54,167.61 771,595.00 2,629,252.00 213,021.00 $ 1,038,783.61 $ 2,701,595.94 -2- METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1998 EXHIBIT"C" Interest Earned Sales and Services Advertising Shared Services Projects Boards of Education Atlanta, City of Buford, City of Chatham County Clayton County Cobb County Decatur, City of DeKalb County Douglas County Fulton County Glynn County Gwinnett County Marietta, City of Richmond County Rockdale County Tuition and Fees GENERAL FUND SPECIAL REVENUE FUND $ 15,296.54 $ 1,300.00 1,153.20 16,444.00 3,064.00 3,000.00 11,923.00 19,829.00 3,845.00 20,886.00 5,634.00 13,315.00 3,000.00 20,236.00 4,724.65 3,000.00 5,051.00 131,366.29 15,396.75 $ 281,914.48 $ ===16=,54======9==.9=5 -3- METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1998 EXHIBIT"D" NAME AMMANN,MADELINE BATCHELOR,ROBERT L BEECHER,SHARON L BLACK,JILL BLACK,LINDA B BROWN.ALFRED M BROWN.PATRICIA BRUCE,LESLIE A BRYANT,INDIA C BURDETT,GREGORY CHERRY.MARCIE LEBLANC CLEMENTS.ELEANOR A COATES,MARJORIE COOK.ROBERT M CORBETT.ALVIN R CORBIN,FRANCINE COWDEN,PAMELA S COXTON,JEROME COXTON,LINDA D CRAVEN.MARYL CROUTHAME,WILLARD CUNNINGHAM.NATALIE J DANTZLER.CAROLE L DAVIS,AMYL DEAN.JANICE M DEATON.AMYL DEMARLO,WHITNEY DESART,SHERRY DILLARD,JASMINE L DORSEN,SUSAN R DUKE,BASSEY DUNBAR,ROBERT E DUNNING,SUSAN S EARLEY.WILLIE L EDWARDS,CYNTHIA EFFNER,DARE ELLIOTT,KATHY EVERETT,JULIE A FERDINAND,WILHELMENIA FERGUSON,PATRICK FOWLER.JOANNE J FOWLER,MARY F FRASER,BRENDA G FRYMAN,DATHLEEN A GLENN,GARY GLOVER,JUDY C GOODSON,CONSTANCE F HAMILTON.LESLIE ELLEN HARPER.SUSAN M HATCH,A BERNARD HATCHER.NANCY HEALEY.GAIL G HELLARD,MARLENE A TITLE CATEGORY SALARIES TRAVEL Substitute Teacher $ 780.00 Teacher 20,141.60 Other 55,964.64 $ 133.02 Paraprofessional 8,600.41 Director 70,122.00 3,838.97 Clerical 38,916.00 947.38 Clerical 31,792.08 Teacher 6,620.68 Paraprofessional 2,298.67 Teacher 33,945.64 Teacher 5,254.84 Clerical 40,359.12 404.41 Teacher 42,619.32 Substitute Teacher 40.00 Paraprofessional 14,792.24 Paraprofessional 20,924.60 Teacher 35,839.23 358.09 Paraprofessional 14,706.40 Paraprofessional 18,772.88 894.00 Other 51,211.04 213.47 Other 50,375.04 1,067.30 Teacher 28,333.21 25.00 Paraprofessional 10,785.80 Other 15,561.00 148.70 Paraprofessional 17,699.74 800.00 Social Worker 33,906.02 343.30 Teacher 4,106.23 Teacher 10,494.72 Substitute Teacher 60.00 Teacher 4,261.32 Substitute Teacher 40.00 Teacher 12,750.00 Teacher 26,135.24 25.00 Social Worker 56,916.38 2,100.00 Paraprofessional 17,306.60 121.25 Substitute Teacher Substitute Teacher 120.00 120.00 23.75 -~- Paraprofessional 2,316.30 Paraprofessional 16,842.44 Teacher 25,822.80 Substitute Teacher 240.00 Clerical 3,500.00 Substitute Teacher 480.00 Substitute Teacher 60.00 Coordinator 62,375.50 895.74 Clerical 38,367.12 Coordinator 8,364.52 482.45 Paraprofessional 15,110.28 104.16 Substitute Teacher 1,130.00 Director 95,682.00 11,744.56 Teacher 19,288.80 Teacher 51,971.17 Substitute Teacher 680.00 -4- METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1998 EXHIBIT"D" NAME HENSCHEL,CLAUDETTE HICKS,PAULETTE S HOPKINS,JEAN C HOPPER,MARIAN P HORNING.ANITA G HRISAK,TERRI L INGRAM,RITA M JEFFERSON,MARGARET H JOHNSON.SHAWN JONES,ELLEN K JONES,JENNIFER JONES,PAMELA A JONES,SHIRLEY JOVER,KATHLEEN G JUMA,SHAMIN H KAMOR,ANTOINETTE V KAUFMAN-NAVEH,PHILLIPA KAUWELL,EDWARD E KELL Y,MICHELLE KIRBY,AUNECA W KRAMER,EDWARD E KRIBS.WENDI D LASETER,RICHARD D LAW,DONALD JR LEVY,MILTON G LINDE,BARBARA LOEDDING,NANCY BETH LUCREE,JANET E LUNSFORD,ELAINE LUNSFORD,LAUREN MARION,SHARON K MATHEWS,JENNIFER MAY,MARILYN A MCLENDON,DEBRA F MCDONALD.JUDITH H MCGEE.AMANDA C MCGEE,JULIANNE F MCLAUGHLIN, TINA MEEK,ERICJ MEHNERT-JACOBY,KANREN L MESSINA.BARBARA MOTLEY,CARMEN MURRAY,HEATHER L NEAL,HAROLD L NOVAK,LIZABETH A O'CONNELL.VIRGINIA E PATRICE,LAURIE PAZOL,KELLEY TAYLOR PAYNE,JANICE K PEEBLES,CINDY PERRY,PRISCILLA PETER,JANICE E PETERSON.DEEJAY TITLE CATEGORY Paraprofessional Paraprofessional Clerical Paraprofessional Substitute Teacher Clerical Other Substitute Teacher Paraprofessional Clerical Paraprofessional Teacher Paraprofessional Paraprofessional Teacher Other Substitute Teacher Teacher Substitute Teacher Paraprofessional Other Teacher Teacher Paraprofessional Other Substitute Teacher Teacher Coordinator Coordinator Teacher Teacher Paraprofessional Coordinator Paraprofessional Coordinator Teacher Paraprofessional Teacher Substitute Teacher Teacher Paraprofessional Other Paraprofessional Other Substitute Teacher Substitute Teacher Teacher Substitute Teacher Paraprofessional Paraprofessional Teacher Clerical Substitute Teacher -5- SALARIES $ 14,790.64 22,091.28 15,922.50 15,525.76 40.00 3,125.01 29,400.00 $ 540.00 5,059.20 30,231.41 15,525.76 8,489.14 23,416.44 23,965.32 18,600.24 29,896.88 120.00 38,328.44 100.00 180.00 37,000.00 31,738.32 22,639.20 3,947.25 61,750.08 600.00 20,088.69 54,288.96 36,666.72 20,141.60 41,378.28 17,782.76 4,666.84 13,400.00 59,038.08 4,181.84 22,699.44 27,995.52 9,673.86 40,173.64 11,386.60 18,708.26 14,164.08 27,989.76 40,337.01 28,110.18 20,701.29 2,920.00 16,201.60 3,003.68 8,758.35 9,234.88 60.00 TRAVEL 124.75 6,118.15 2,082.01 1,892.69 19.50 2,327.65 12.00 131.25 436.04 257.87 METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1998 EXHIBIT"D" NAME POWELL,ROBERTA A PURVES.SARA B QUIRK,CONSTANCE A QUITMAN,JACQUELINE C RAJU,KALPANA K REXINGER,JANE E ROBERTSON,SCOTT RUANE,MARY P SCARBOROUGH,JACQUELINE SCHNUPP,JEAUNETT SCHRANTZ.TRACY D SHURE,JANICE H SMALLEY,SUSAN SMITH,LLONA L SMITH,SUSAN K SMITH,R WARREN SPAULDING,BETHANNE . SPRIGGS,BARBARA L STATHAM,LAURA A STEFFEN,GLORIA STRUSINER,ELLEN S STUBBS,LINDA D STRUGEON,CHRISTINE TAYLOR.ALAN B THOMAS,LISA M WATSON,CHARLES E WEINER,LAWRENCE R WHITE,KITTY L WINEBARGER,LAURA H WOLFF,IRWIN WOLKIN,SUSAN S WOODS,CATHERINE ZOECKLER,NATALIE R Accruals June 30, 1997 TITLE CATEGORY Clerical Social Worker Coordinator Paraprofessional Teacher Teacher Paraprofessional Paraprofessional Paraprofessional Substitute Teacher Substitute Teacher Other Paraprofessional Paraprofessional Social Worker Social Worker Substitute Teacher Teacher Teacher Substitute Teacher Teacher Teacher Other Social Worker Clerical Paraprofessional Director Social Worker Social Worker Substitute Teacher Coordinator Paraprofessional Teacher SALARIES $ 35,946.00 4,323.42 4,589.08 $ 14,626.82 3,817.00 57,673.36 9,173.86 15,953.32 17,306.60 3,859.28 60.00 53,087.40 16,419.20 11,386.60 45,344.74 43,999.86 8,170.00 8,168.12 11,577.41 300.00 50,414.20 38,537.60 40,969.86 41,144.47 8,075.80 18,772.88 82,650.00 13,568.00 53,649.38 120.00 62,375.50 17,306.60 4,307.32 $ 2,969,352.09 $ TRAVEL 22.00 534.02 97.00 22.50 526.88 482.54 15.00 477.75 7.25 302.75 790.75 2,111.01 126.50 672.42 1,122.75 45,383.58 -236,935.79 $ 2,732,416.30 $ =====45,=38=3.5=8 -6- SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS METROPOLITAN 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 8564-93-02 8564-93-03 FS-8564-97-01 Previously Reported Corrective Action Implemented 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-8564-97-01 Due to budget constraints we were unable to resolve this finding in fiscal year 1998. SECTION III CURRENT YEAR FINDINGS AND QUESTIONED COSTS METROPOLITAN 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-8564-98-01 The Metropolitan Regional Educational Service Agency does not maintain a General Fixed Assets Account Group within the formal accounting records. This condition results in the general purpose financial statements of the 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 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.