METROPOLITAt"l' REGIONAL EDUCATIONAL SERVICE AGENCY MANAGEMENT REPORT -TABLE OF CONTENTS-

LETTER OF TRANS:tvflTTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES

IN FUND BALANCES - BUDGET Al\1D 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 CURREl\1T YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

RussELL \V. H1NTO,..
STATE AUDITOR (40-41656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S W., Sullc 214 Atlanta, Georgia 30334-8400
December 21, 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 of the general purpose financial statements of the State of Georgia 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 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, 2001. 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 infonnation 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.

.41'*- Respectfully submitted,

? 02 Ao M ,

11)

~):sell W. Hinton

State Auditor

RWH:gp

SECTION I SELECTED FINANCIAL II\TfORMATION

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. 2001

EXHIBIT "A"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES

s 899,000 00 $ 904,116 41

1,749,697 00

738,634 66

s s 2.648.697 00 1,642.751 07

Current Instruction Support Services Pupil Services Improvement of Instructional Services General Adm1mstrat1on School Adm1mstration Business Adm1mstration Maintenance and Operation of Plant Central Support Services Other Support Services
Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures

s s 541,035 00

479,210 31

638,924 79

719,580 69

100,970 00 108,600.00 148,810 00 1,203,466 21

103,478 33 100,401 21 160,827 47 235,172.92 23,284 89

s s 2,741,806 00 1,821,955 82

s -93,109 00 $ -179,204 75

OTHER FINANCING SOURCES {USESJ

Capital Leases Other Sources Other Uses
Total Other Financing Sources (Uses)

$ 13,608 00 -3,685 64
s 9,922 36

Excess of Revenues and Other Financing Sources

s s oyer (under) Expenditures and Other Financing Uses

-93, 109 00 -169,282 39

FUND BALANCE JULY 1, 2000

1,058,209 81

954,471 62

AdJUStments

FUND BALANCE JUNE 30, 2001

$ 965.100 81 S 785.189 23

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s $ 5,498,272 00 5,542,482 76

939,999 71

678,888 14

24,027 09

s s 6,438,271 71 6,245,397 99

s 2,033,681 56 $ 2,027,260 90

1,168,643 00 1,640,325 71
152,008 00 278,830 00
41,140 00 22,371 00

1,105,?40 83 1,492,934 32
153,383 68 271,348.26 41,193 54
15,281.80

1,144,904 00 1,144,904 00

s 6,481,903 27 $ 6,252.247 33

s s -43,631 56

-6,849 34

s

3,685 64

s

3,685 64

s s -43,631 56
-17,092 11 -41,522.26

-3, 163 70 77,64813

$ -102.245 93 $ 74,484 43

SUMMARY OF FUND BALANCE
Unreserved Undes1gnated

S 785,189 23

$ 74 484 43

- 1-

METROPOLITAN 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 Leaming Resources System Health Insurance Regional Educational Service Agencies Severely Emotionally Disturbed
CONTRACTS Education, Georgia Department of School Improvement Intervention Teams Leadership Training Program

GENERAL FUND

SPECIAL REVENUE
FUND

S 96,431.30
S 73,118.41
830,998.00 4,941,790.00
456,674.46 47 587.00
$ 904,116.41 $ 5,542,482.76

-2 -

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 2001

EXHIBIT"C"

AGENCY/FUNDING
GRANTS 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 Leaming Resources System Severely Emotionally Disturbed
CONTRACT Education, U. S. Department of Through Georgia Department of Education To Position the Contractor to Disperse Funds as Directed by the Department's Quality and School Support Division Title I

SPECIAL REVENUE
FUND
$ 29,000.00 105,454.03
140,663.44 303,770.67
100,000.00
$ 678,888.14

-3-

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 2001

EXHIBIT "D"

Interest Earned Reimbursement of Salanes
Arts Connect Franklin Covey Office of Planning and Budget Sales and Services Data Preparation Services Printing Services Services Provided
Shared Services Projects Various Sources
Tuition and Fees Workshop Fees

GENERAL FUND
$ 19,504.34
69,650.14 91,440.78 55,235.40
411.04 7,144.56

SPECIAL REVENUE
FUND

377,699.40 117,549.00
$

24,027.09

$ 738,634.66 $ 24,027.09

-4-

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

EXHIBIT"E"

NAME
ALIE, K JILL ARCENEAUX.TRESA ASKEW, DARRYL BARKSDALE, JENNIFER J BARNES, CAROL L BAUMAN, JENNIFER B BEECHER, SHARON L BENSON, GWENDOLYN T BERMAN, ANNIE BERRY, DEBORAH T BLACK, LINDA B BLAKE, CARA A BRITTON, CINDI L BROWN, PATRICIA BULLABAUGH, JOHN L Ill BURDETT, GREGORY L CAGLE, TRACIE L CALDERON, HAZEL CARMICHAEL, CECELIA CHATMAN.SHARON CHEATHAM, VANESSA M CLANTON, SHARI ELIZABETH CLARKSON, LEONORA W CLEMENTS, ELEANOR A COATES, MARJORIE COLE, DEMETRIA COLEMAN, MICHAEL COLLINS, NANCY A COOK, MISTY CORBETT, ALVIN R CORBIN, FRANCINE COWDEN, PAMELA S COXTON, JEROME COXTON, LINDA D CRAVEN, MARYL CROUTHAMEL, WILLARD CUNNINGHAM, NATALIE J DANFORTH, EVERLENA G DANTZLER, CAROLE L DAVIS, AMYL DEAN, JANICE M DEBRULER, DUANE E DEEMS, DAISY DELO, KATHRYN LOCKE DELUCA, NANCY M DICKERSON, MARY E DORSEY, LETITIA DOWNS, SUSAN DIANE DUNBAR.ROBERT EARLEY, WILLIE L EDWARDS, CYNTHIA

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

SALARIES
s 34,708.40
320 00 16,643.20 40,236.60 35,688.56
7,470.00 60,317.90 67,207.50
298.56 14,490.17 76,799.52 $ 6,809.00 4,699.52 36,099.36 22,927.83
42,558.20 9,022.42 1,144.00 3,496.52
4,770.78 620.00
43,834.92 25,162.25 45,826.80
7,893.16 5,283.48
340.00 5,660.30
800.00 3,035.84
24,221.12
4,086.16 17,022.88 21,731.04 61,640.70 57,532.32 46,289 47 12,485.80 12,495.06 44,774.68 22,440.38
2,242.50 1,664.00 44,939.92 3,150.00 12,151.60 4,956.00 2,252.68 34,063.92 64,729.44 20,032.76

TRAVEL
2,897.16
153.64
171.92 480.30 768.97 156.52
907.48 2,959.32
145.04

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30. 2001

EXHIBIT"E"

NAME
EDWARDS, SHEKELA EIDLER, DONALDA L ELLIOTT, REBECCA G ELLIS, CONSTANCE B ELWART, MARI E EMMERT, SARAH M FARLEY, NANCY A FERDINAND, WILHELMENIA FREDRICK, ANTHONY M FUSSELL, LINDA GEWIN, SARAH L GLENN.GARY GLOVER, JUDY C GREEN, TRACYE C GRISWOOD, HARIETTE GUNNIN. REBECCA HAMILTON, LESLIE ELLEN HAMMOCK, THEODIS E HARPER, SUSAN M HATCH, A BERNARD HAYES, TAMIKA M HEALEY, GAIL G HICKS, PAULETTE S HILL, MARY F HOLTZCLAW, CHERYL L HOPKINS, JEAN C HUDSON, HOLLY HUNLEY, CHERYL R INGRAM, RITA M JACOBY, KAREN L JOHNSON, PATRICIA L JOHNSON, SHAWN JONES, ELLEN K JONES, GAIL JONES, JENNIFER JONES, PAMELA A KRAMER, EDWARD E LAUBACH, JENNIFER ANN LEA, CONNIE LEVY, MILTON G LINDE, BARBARA LINDE, DENISE A LINDERMAN, JUDY LIPETZ, JUDY LONG, ANTOINETTE LORD, LISA LUCICH, NANCY M LUCREE, JANET E LUNSFORD, ELAINE MACK, SHELLY A MARION, SHARON K

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

SALARIES

s

5,780 00

12,616.60

39,065.00

18,755.80

15,096.60

23,316.60
s 41,456.92

15,938.40

14,074.20

9,518.83

889.00

70,937.32

43,565.04

138.00

22,440.38

3,037.60

17,492.32

15,703.50

14,299.20

108,644.40

25,000.08

59,175.82

28,955.48

28,951.20

13,905.00

19,008.78

2,925.00

43,399.98

33,384.00

41,444.20

13,407.11

3,293.32

36,021.30

2,217.00

16,946.17

5,566.52

10,503.06

29,076.30

1,578.40

70,115.28

21,149.64

34,630.32

128.00

720.00

32.00

60.00

136.00

42,690.10

62,450.88

13,578.12

49,334.32

TRAVEL
125.00 122.92 447.72 114.80
10,261.79 325.72 55.25 20.72
400.90 529.04
184.12 6,099.59
18.76
1,120.16 3,624.09

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

EXHIBIT"E"

NAME
MATHEWS, JENNIFER MCDONALD, JUDITH H MCGEE, JULIANNE F MCGUIRE, ROBERT J MENZIES, DONNA J MICHAELSON, RONALD B MILLS, KIMBERLY MILLS, SHELLY C MILLSAP, LISA J MILLSAP, SHELLY NEAL, HAROLD L NORMAN, LYNN NOVAK, LIZABETH A O'CONNELL, VIRGINIA E ORTIZ, LINDA S PACK, SUSAN E PATRICE, LAURIE PATSY, CONSTANCE PAYNE, JANICE K PFEIFFER, ELLEN M PIKE, TOMMIE H POWELL, ROBERTA PUGH, LESLIE S PURVES, SARA B RAINER, ROBIN C REDDING, TAMMY L REXINGER, JANE E RINALDI, ANDREA L ROBERTSON, CARRIE ROBERTSON, CHARLON ABIGAIL RUANE, MARY P RUPPERT, JACOB SAENZ, JOHN SCARBOROUGH, JACQUELINE SEWELL, MARCUS G SHURE, JANICE H SLIGH, PAUL SMALLEY, SUSAN E SMITH, LLONA L SMITH, R WARREN SPAULDING, BETHANNE STEFFEN, GLORIA J STEFFEN, VALERIE A STEPHENS, BOBBY N STRUSINER, ELLEN S TASSY,FARRAHDYA TAUCHES, CHARLOTTE L TAYLOR, ALAN B THIEL, COLLEEN THOMAS, ANDREW S THOMAS, JESSICA LYN

TITLE CATEGORY
Paraprofessional Sch Improvement Specialist Paraprofessional Substitute Teacher Substitute Teacher Teacher Paraprofessional Substitute Teacher Paraprofessional Paraprofessional Other Substitute Teacher Assistant Coordinator Assistant Coordinator Teacher Paraprofessional Teacher Teacher Paraprofessional Teacher Finance Manager Other Substitute Teacher Social Worker Substitute Teacher Paraprofessional Coordinator Paraprofessional Paraprofessional Paraprofessional Paraprofessional Paraprofessional Other Paraprofessional Paraprofessional Psychologist Technology Specialist Paraprofessional Paraprofessional Social Worker Teacher Substitute Teacher Teacher Other Coordinator Teacher Teacher Social Worker Substitute Teacher Teacher Paraprofessional
-7-

SALARIES

s

3,293.32

73,128.96 $

4,204 00

188.00

320.00

4,292.56

2,723.68

270.00

4,980.47

2,510.84

30,928.08

68.00

56,709.74

49,045.16

29,076.36

10,873.20

4,510.63

39,260.24

22,328.32

30,180.00

1,004.25

40,815.84

13,916.60

42,413.60

26,276.60

5,555.77

70,628.58

12,329.44

7,800.54

5,744.90

20,212.52

6,308.64

14,358.66

20,032.76

15,272.72

60,467.00

37,954.03

2,579.84

15,692.44

55,485.96

26,040.28

12,151.60

36,682.30

36,055.92

59,411.08

23,095.71

37,006.20

53,816.20

140.00

12,259.03

14,078.32

TRAVEL 2,744.86
20.72 908.78 987.78
20.72 1,074.74
336.28
602.87 112.00 184.51 335.87 242.48
977.56 1,269.80 1,017.82 1,166.20

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2001

EXHIBIT "E"

NAME
TILLMAN, CAROLYN R TUBB, JENNIFER J TWILLEY, KATHERINE LYNN UNDERWOOD, LYNNE C VALEZ, TALENA VARNER, WILLIE M VERDON, KATHERINE WATSON, CHARLES E WEINER, LAWRENCE R WENETA, MATTHEW DOUGLAS WESLEY, WILFORD C WHITE, KITTY L WILLIAMS, CHARLENE WILSON, JACKIE WINEBARGER, LAURA H WOLKIN, SUSAN S WOODS, CATHERINE YORK, SUSAN K

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

SALARIES

TRAVEL

$ 49,922.94 $ 23,316.60 16,124.04 22,142.76 320.00 14,300.00 820.00 21,731.20 93,846.00 4,985.84 10,685.92 36,018.44 38,281.92 20,594.16 64,729 44 70,937.32 20,032.76 54.767.70

414.96
2.773.55
501.84 3,434.74
162.96 1.416.80
488.40

$ 4.059,652.24 $

53.287.17

-8-

SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

METROPOLITAN REGIONAL EDUCATIONAL SERVICE AGENCY AlJDITEE'S RESPONSE
SUMMARY SCHEDlJLE OF PRJOR YEAR FIT\TIINGS A:\TD OUESTION'ED COSTS '{EAR ENDED JlTl\c 30, 2001

PRJOR YEAR FINANCIAL STATEMENT FINDINGS Al\1D QUESTIONED COSTS

FINDING CONTROL NuMBER AND STATUS

FS-8564-99-01 FS-8564-00-01

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-8564-00-01

A concentrated effort was made in FY 01 to comply with the Corrective Action Plan that was given in respect to the FY 00 audit finding. A report ofall inventories was done and a special report of items costing $1,000.00 and over was compiled. The auditor-in-charge reviewed the general fixed assets list presented by Metropolitan Regional Educational Service Agency to enable the Department of Audits to record the fixed assets. The fixed assets list submitted, however, was incomplete because the acquisition cost for each inventory item was not separately stated. Therefore, the list will not be usable for reconciling fixed assets on a yearly basis because the items deleted could not be quantified.

The State regulations pertaining to the recording of fixed assets requires Regional Educational Service Agencies to assign a tag number and record the item at cost or market value in the absence of having the acquisition cost. Therefore, the auditor-in-charge will submit a copy of the list to the Department of Audits for further review.

SECTION ID CURRENT YEAR Fll\1DINGS AND QUESTIONED COSTS

METROPOLITAN REGIO~AL EDUCATIONAL SERVICE AGENCY SCHEDULE OF Fll\'DINGS A1\'D QUESTIONED COSTS YEAR E!\'DED Jl.JJ\1E 30. 200 I
FINANCIAL STATEMEl\1 FTh.'DINGS AJ\TI QUESTIONED COSTS
GE~TERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8564-01-01
The Metropolitan 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 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.