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

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METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY

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AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA

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YEAR ENDED JUNE 30, 2000

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Russell W. Hinton State Auditor

METROPOLITAN 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

I

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. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-8400
January 23, 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 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 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 Metropolitan Regional Educational Service Agency. Accordingly, the financial statements and compliance activities ofthe Metropolitan 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 Metropolitan 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.
The Federal Bureau of Investigation is in the process of conducting an investigation regarding Metropolitan Regional Educational Service Agency's participation in the federally funded E-Rate program. As of the date of this report, the results of this investigation have not been determined.

This report is intended solely for the information and use of management of the Metropolitan 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,
~w4}.d;:.
Russell W. Hinton State Auditor
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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, 2000

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
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}
Other Sources 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. 1999

GENERAL FUND

BUDGET

ACTUAL

$ 835,000.00 $ 880,963.84 495,812.00 1,925,976.45
$ 1,330,812.00 $ 2,806,940.29

$ 69,216.86

$ 244,217.00

420,770.33

9,500.00

4,386.43

576,055.00

763,211.62

105,600.00 166,000.00 110,220.00 119,220.00

107,302.34 97,054.69 84,133.55 857,035.48 18,720.44

$ 1,330,812.00 $ 2,421,831.74

$

0.00 $ 385,108.55

$ -26,090.06 $ -26,090.06

$

0.00 $ 359,018.49

621,266.49

595,453.13

FUND BALANCE JUNE 30, 2000

$ 621,266.49 $ 954,471.62

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 3,500,141.00 $ 3,489,424.32

637,517.38

652,013.36

59,126.36

$ 4,137,658.38 $ 4,200,564.04

$ 1,867,370.00 $ 1,825,855.20

1,000,871.00 899,061.40
78,966.48 229,189.00
39,676.00 18,806.00

984,810.73 957,840.52
6,777.51 158,724.95 242,012.68 39,475.65 21,811.21

$ 4,133,939.88 $ 4,237,308.45

$

3 718.50 $ -36 744.41

$ 26,090.06

$ 26,090.06

$

3,718.50 $ -10,654.35

-618.11

88,302.48

$

3,100.39 $ 77,648.13

SUMMARY OF FUND BALANCE
Unreserved Undesignated

$ 954,471.62

$ 77,648.13

- 1-

METROPOLITAN 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 Severely Emotionally Disturbed

GENERAL FUND

SPECIAL REVENUE
FUND

$

90,685.63

$

76,528.84

804,435.00

3,398,738.69

$

880,963.84 $

3,489,424.32

-2-

METROPOLITAN 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 Special Education State Program Improvement Grants for Children with Disabilities Individuals with Disabilities Education Act Part B - Special Education Special Projects Georgia Learning Resources System Severely Emotionally Disturbed Part D - Special Education Personnel Development and Parent Training Georgia Learning Resources System
CONTRACTS Education, Georgia Department of Agreement to Position the Contractor as the Department's Agent to Disperse Funds as Directed by the Department's Leadership Academy

SPECIAL REVENUE
FUND

$

-2,924.09

31,572.99 39,106.20

178,860.77 324,714.46
-1,369.40

82,052.43

$ ======65=2=,0=1=3=36=

-3 -

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

EXHIBIT "D"

Donations Interest Earned Reimbursement of Salaries
Franklin Covey Fulton County Board of Education Georgia Youth Science and Technology Office of Planning and Budget Sales and Services Data Preparation Services Printing Services Services Provided
Shared Services Projects Various Sources
Tuition and Fees Other

GENERAL FUND

$

578,672.76

6,291.22

64,625.00 65,826.00 32,297.03 103,913.66

49,968.00 9,990.75

SPECIAL REVENUE
FUND

337,675.29 118,000.61 $ 558,716.13

59,126.36

$

1,925,976.45 $ =====59:::1::,1=2=6=.3=6

-4 -

METROPOLITAN REGIONAL EDUCATION SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2000

EXHIBIT "E"

NAME
AGARTH,KATHY BARBOUR, SHELIA F BARNES, CAROL L BAUMAN, JENNIFER B BEECHER, SHARON L BENSON, GWENDOLYN T BERRY, DEBORAH T BERUSCH, JILL R BIXLER, GUINA BLACK, LINDA B BLAKE, CARA A BRITTON, CINDI L BROWN, PATRICIA BURDETT, GREGORY L CAGLE, TRACIE L CAMBRE, SUE W CARMICHAEL, CECELIA CHATMAN, SHARON CHEATHAM, VANESSA M CLANTON, SHARI ELIZABETH CLEMENTS, ELEANOR A COATES, MARJORIE COLLINS, NANCY A CORBETT, ALVIN R CORBIN, FRANCINE COWDEN, PAMELA S COXTON, JEROME COXTON, LINDA D CRAVEN, MARYL CROUTHAMEL, WILLARD CUNNINGHAM, NATALIE J DANTZLER, CAROLE L DAVIS, AMYL DEAN, JANICE M DEEMS, DAISY DELO, KATHRYN LOCKE DESART, CORRY DIMUZIO, JAMES J DOWNS, SUSAN DIANE DUNBAR.BARBARA EARLEY, WILLIE L EDWARDS, CYNTHIA FARLEY, NANCY A FELICE, MEGGAN S FERDINAND, WILHELMENIA GEWIN, SARAH L GLENN.GARY GLOVER, JUDY C GREEN, TRACYE C GRISWOOD, HARIETTE HAMILTON, LESLIE ELLEN HARPER, SUSAN M HATCH, A BERNARD HEALEY, GAIL G

TITLE CATEGORY
Teacher Paraprofessional Teacher Teacher Psychologist Other Paraprofessional Substitute Teacher Substitute Teacher Coordinator Teacher Teacher Clerical Teacher Paraprofessional Substitute Teacher Paraprofessional Paraprofessional Substitute Teacher Teacher Executive Secretary Teacher Clerical Paraprofessional Paraprofessional Teacher Paraprofessional Paraprofessional Psychologist Other Assistant Coordinator Paraprofessional Psychologist Secretary Substitute Teacher Teacher Substitute Teacher Substitute Teacher Paraprofessional Teacher Social Worker Paraprofessional Teacher Paraprofessional Paraprofessional Substitute Teacher Coordinator Secretary Substitute Teacher Secretary Paraprofessional Substitute Teacher Director Coordinator
-5 -

SALARIES

TRAVEL

$

4,888.52

2,919.00

28,457.09

37,350.00

60,388.54 $

43,500.00

14,177.48

436.00

320.00

74,562.72

34,045.00

28,016.28

35,047.92

40,401.32

4,750.80

60.00

19,436.76

15,351.60

960.00

35,066.60

44,492.16

47,055.32

14,776.28

18,098.20

23,102.84

48,762.34

16,237.32

20,727.36

58,194.04

55,533.36

40,733.16

2,482.00

42,172.12

21,802.60

601.00

41,809.92

180.00

68.00

11,263.40

7,589.52

62,793.38

19,107.64

38,572.44

1,877.48

2,999.28

804.00

68,816.04

42,295.92

128.00

21,802.60

16,689.40

6,153.00

105,310.95

57,269.80

65.00
2,863.98
135.00
9.50 549.00 616.28 859.78 165.75 133.75
2,534.00 34.50
500.75
10,593.18

METROPOLITAN REGIONAL EDUCATION SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2000

EXHIBIT "E"

NAME
HICKS, PAULETTE S HILL, MARY F HOPKINS, JEAN C HOPPER, MARIAN P HOWARD, BRIAN C HURLEY, HANNELORE A INGRAM, RITA M JACOBY, KAREN L JOHNSON, PATRICIA L JOHNSON, SHAWN JONES, ELLEN K JONES, JENNIFER JONES, PAMELA A KAMOR, ANTOINETTE V KRAMER, EDWARD E KRIBS, WENDI D LACEY, DOROTHY B LAUBACH, JENNIFER ANN LEVY, MILTON G LINDE, BARBARA LINDE, DENISE A LUCICH, NANCY M LUCREE, JANET E LUNSFORD, ELAINE LUNSFORD, LAUREN MACK, SHELLY A MALO, JESSICA LYN MAPHET, BUNITA J MARION, SHARON K MATHEWS, JENNIFER MATOL, LAUREN MCCLOUD, MOLLETT MCCLURE, TERESA E MCDONALD, JUDITH H MCGEE, JULIANNE F MCGUIRE, ROBERT J MEEK, ERICJ MENZIES, DONNA J MICHAELSON, RONALD B MILLS, KIMBERLY MILLSAP, LISA J MILLSAP, SHELLY MURRAY, HEATHER L MYRICK, JENNIFER NEAL, HAROLD L NOVAK, LIZABETH A OCONNELL, VIRGINIA E ORTIZ, LINDA S PACK, SUSAN E PATRICE, LAURIE PATSY, CONSTANCE PAYNE, JANICE K PETERSON, DEEJAY PIKE, TOMMIE H

TITLE CATEGORY
Paraprofessional Receptionist Secretary Paraprofessional Paraprofessional Coordinator Bookkeeper Teacher Paraprofessional Paraprofessional Secretary Paraprofessional Teacher Other Other Teacher Teacher Psychologist Assistant Director Paraprofessional Teacher Substitute Teacher Coordinator Coordinator Teacher Paraprofessional Paraprofessional Paraprofessional Teacher Paraprofessional Substitute Teacher Paraprofessional Paraprofessional Other Paraprofessional Substitute Teacher Paraprofessional Substitute Teacher Teacher Paraprofessional Paraprofessional Paraprofessional Paraprofessional Paraprofessional Other Assistant Coordinator Assistant Coordinator Teacher Paraprofessional Teacher Teacher Paraprofessional Substitute Teacher Other
-6 -

SALARIES

TRAVEL

$

27,520.32 $

27,040.08

18,386.62

15,931.67

12,739.40

4,997.26

32,411.04

7,368.52

14,177.48

19,231.44

34,944.70

17,142.44

33,213.20

5,246.64

40,788.72

5,904.32

4,518.68

23,581.80

68,073.12

20,172.88

32,673.12

480.00

62,640.24

60,631.92

4,270.32

3,971.94

13,189.92

2,102.08

47,057.12

19,633.12

480.00

2,445.04

5,408.53

65,083.20

25,062.32

180.00

16,289.84

556.00

20,389.66

16,237.32

14,177.48

12,554.20

2,690.80

10,730.14

29,454.96

54,882.16

41,545.96

42,549.40

6,509.60

28,852.53

37,272.88

21,297.60

60.00

46,800.00

46.75 348.98 636.19
330.50 4,641.85 2,796.31 5,530.91
4,538.10
450.50 377.25
2,170.38

METROPOLITAN REGIONAL EDUCATION SERVICE AGENCY SCHEDULE OF.SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2000

EXHIBIT "E"

NAME
POWELL, ROBERTA PURVES, SARA B RAINER, ROBIN C REXINGER, JANE E RINALDI, ANDREA L ROBERTSON, CHARLON ABIGAIL ROTTNER, JEANNE M RUANE, MARY P SCARBOROUGH, JACQUELINE SEWELL, MARCUS G SHURE, JANICE H SMALLEY, SUSAN E SMITH, LLONA L SMITH, NORMAN D SMITH, R WARREN SPAULDING, BETHANNE STEERS, ANN M STEFFEN, VALERIE A STRUSINER, ELLEN S STURGEON, CHRISTINE SYFRETT,SUSAN TAUCHES,CHARLOTTEL TAUCHES,MEGAN TAYLOR, ALAN B TILLMAN, CAROLYN B TWILLEY, KATHERINE LYNN UNDERWOOD, LYNNE C WATSON, CHARLES E WEHNER, DANA CARLYLE WEINER, LAWRENCE R WENETA, MATTHEW DOUGLAS WESLEY, WILFORD C WHITE, KITTY L WILLIAMS, CHARLENE WINEBARGER, LAURA H WOLKIN, SUSAN S WOODS, CATHERINE YORK, SUSAN K

TITLE CATEGORY
Other Social Worker Substitute Teacher Coordinator Paraprofessional Paraprofessional Paraprofessional Paraprofessional Paraprofessional Paraprofessional Psychologist Paraprofessional Paraprofessional Substitute Teacher Social Worker Teacher Substitute Teacher Teacher Coordinator Psychologist Paraprofessional Teacher Substitute Teacher Social Worker Social Worker Paraprofessional Paraprofessional Paraprofessional Substitute Teacher Director Teacher Custodian Social Worker Accounting Manager Social Worker Coordinator Paraprofessional Social Worker

Accruals June 30, 1999

SALARIES

TRAVEL

$

39,627.12

39,593.50 $

896.00

65,123.00

6,618.93

12,899.20

16,632.00

18,257.44

19,107.64

14,104.28

58,613.80

12,899.20

14,968.36

60.00

52,380.38

16,237.24

120.00

33,390.67

57,631.38

3,742.50

2,481.68

33,648.32

180.00

53,044.24

46,773.78

12,899.20

16,088.06

20,728.16

60.00

91,113.12

24,929.20

10,369.22

52,920.04

29,304.67

62,793.38

68,816.04

19,107.64

51,704.88

557.17 248.50
86.00 71.12
248.25
1,007.00 1,155.40
673.75 577.25
2,492.86 8.00
888.18 193.25 1,488.40 355.49

$ 3,701,850.50 $

50,978.81

-314.88

$ 3,701,850.50 $

50,663.93

-7-

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, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-8564-98-01 FS-8564-99-01

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-8564-99-01

The Georgia Department of Education has not implemented a General Fixed Asset Account Group within the accounting programs provided by them. We will continue to work with Georgia Department of Education to resolve this problem; however, Metropolitan Regional Educational Service Agency does not believe that it would be cost effective for us to implement such a system at this time.

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

METROPOLITAN 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-8564-00-01
The Metropolitan Regional Education 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 of a General Fixed Assets Account Group. These subsidiary records 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.