GA A~OO .~l cUI MS. J~~J1'7 REVIEW REPORT STATEOF GEORGIA MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY FORTVALLEY, GEORGIA YEARENDED JUNE 30, 1997 STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT ACCOUNTANTS COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS <>::: 0-" COMBINED STATEMENTS - OVERVIEW -=::5 A COMBINED BALANCE SHEET cD . ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 3 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS 4 D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 5 ADDITIONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 12 2 SCHEDULE OF STATE REVENUE 13 3 SCHEDULE OF SALARIES AND TRAVEL 14 SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL CLAUDE'L. VICKERS STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 January 8, 1998 Honorable Zell Miller, Governor Members of the General Assembly of Georgia Members of the State Board of Education and Director and Members of the Middle Georgia Regional Educational Service Agency Board of Control INDEPENDENT ACCOUNTANT'S COMBINED REPORT ON REVIEW OF FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION Ladies and Gentlemen: We have reviewed the accompanying financial statements (Exhibits A through D) of Middle Georgia Regional Educational Service Agency as of and for the year ended June 30, 1997, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of Middle Georgia Regional Educational Service Agency. A review consists principally of inquiries of Agency personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles. Our review was made for the purpose of expressing limited assurance that there are no material modifications that should be made to the fmancial statements in order for them to be in conformity with generally accepted accounting principles. The accompanying supplementary information (Schedules I through 3) is presented only for supplementary analysis purposes. Such information has been subjected to the inquiries and analytical 97ARL-RESA-I procedures applied in the review of the financial statements and we are not aware of any material modifications which should be made thereto. Respectfully submitted, CLV:dt 97ARL-RESA-l Claude L. Vickers State Auditor MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY The notesto the generalpurpose financial statements are an integral partof thisstatement. -2- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY EXHIBIT "B" COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 3D. 1997 FUND BALANCE JUNE 30 $ 422,552.08 $ 0.00 $ 422,552.08 $ 429,960.68 The notesto the general purpose financial statements are an integral part of this statement. -3- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30.1997 EXHIBIT "C" GENERAL FUND BUDGET ACTUAL REVENUES State Funds Federal Funds Other Funds $ 546,473.00 $ 1,233,688.19 597,912.76 1,808.34 1,242,801.38 Total Revenues $ 1,780,161.19 $ 1,842,522.48 EXPENDITURES Current Instruction Support Services Pupil Service" Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Central Support Services $ 528,761.08 $ 596,706.42 519,833.38 95,747.75 102,511.72 77,699.98 18,523.08 528,125.75 576,682.53 528,500.84 89,277.74 57,901.86 57,461.81 11,980.55 Total Expenditures $ 1,939,783.41 $ 1,849,931.08 Excess of Revenues over (under) Expenditures $ -159,622.22 $ -7,408.60 FUND BALANCE JULY 1.1996 605,381.46 429,960.68 FUND BALANCE JUNE 30. 1997 $ 445,759.24 $ 422,552.08 SPECIAL REVENUE FUND BUDGET ACTUAL $ 91,744.00 $ 86,604.60 $ 91,744.00 $ 86,604.60 $ 80,638.00 $ 68,063.00 10,706.00 17,731.30 400.00 600.00 210.30 $ 91,744.00 $ 86,604.60 $ 0.00 $ 0.00 0.00 0.00 $ 0.00 $ ===--====0=.0=0= The notes to the general purpose financial statements are an integral part of this statement. -4- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 EXHIBIT "D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Middle Georgia Regional Educational Service Agency (Agency) was established pursuant to the Official Code ofGeorgia Annotated Sections 20-2-270 through 20-2-274 for the purposes ofproviding shared services designed to improve the effectiveness of educational programs and services of local school systems and for providing instructional programs directly to selected public school students in the state. Each regional educational service agency is governed by a board. The number ofmembers and terms ofoffice are prescribed by the State Board of Education; provided, however, that at least one-third of the membership of each Board shall be individuals who hold no other public office, who are not employees of any local unit of administration, and who are not employees of the Georgia Department of Education. .The members ofthe Board are elected by an annual caucus of an equal number of members of local boards of education from the respective member local school systems. Each Board appoints and contracts with a director who is the executive officer of the regional educational service agency. The director is responsible for the administration of the programs and services approved by the Board. For financial reporting purposes, the Agency is considered to be an organizational unit of the State, and therefore a part ofthe primary government ofthe State of Georgia. Inclusion in the State's financial reporting entity is based on application of criteria defined in Section 2100 of the Governmental Accounting Standards Board Codification of Governmental and Financial Reporting Standards which indicates that the Agency does not have legal separate standing. FUND ACCOUNTING The Agency uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fmancial resources. The general purpose financial statements account for all State, Federal and Other funds under control of the Agency, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a regional educational service agency's general activities. Governmental Fund Types include: - 5- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 EXHIBIT "D" Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL FUND - the fund used to account for all financial resources of the Agency except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a regional educational service agency. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department ofEducation and from the Federal government to accomplish specific objectives and are required to be accounted for separately. ACCOUNT GROUP GENERAL FIXED ASSETS ACCOUNT GROUP - A fmancial reporting device used to account for all equipment acquired for use by the Agency. The Peach County Board of Education owns the land and buildings utilized by the Agency. BASIS OF ACCOUNTING The accounting and fmancial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current fmancial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other fmancing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be fmanced from available spendable resources are reported as liabilities in the governmental funds. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount ofthe transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities ofthe current period. Those revenues considered susceptible to accrual are intergovernmental grants, sales and services and investment income. Expenditures are generally recognized when the related fund liability is incurred. BUDGET The Middle Georgia Regional Educational Service Agency's budget is a complete financial plan for the Agency's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all - 6- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 EXHIBIT "D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Agency at the aggregate level. The budget for governmental funds was prepared in accordance with generally accepted accounting principles. The budget process begins when the Agency's administration prepares a tentative budget for the Board's approval. After approval of this tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final budget. This final budget is then submitted, in accordance with provisions ofthe Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year end. ,CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws authorize the Agency to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. GENERAL FIXED ASSETS General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value of assets or materially extend the useful lives of the assets is not capitalized. RESERVED FUND BALANCES Reserves represent those portions offund equity that are legally segregated for a specific future use. Reserved Fund balances include unexpended funds received in prior years from the Georgia Department of Education for sick and personal leave to be paid to substitute personnel. These funds will be used for the original purpose until exhausted. -7- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 EXHIBIT "D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INTERFUND TRANSACTIONS The Agency has the following types of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position .or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value ofthe securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction of the amount of deposit insurance. OCGA Section 45-8-11 provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of anyone of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates ofindebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, -8- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 EXlllBIT liD" Note 2: DEPOSITS , (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation ofthe United States government, which are fully guaranteed by the United States government both as to principal and interest and debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 1997, the bank balances were $621,611.02. The amounts ofthe total bank balances are classified .into three categories of credit risk: Category 1 Category 2 Category 3 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Agency or by the Agency's agent in the Agency's name. Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Agency's name. Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the Agency's name.) The Agency's deposits are classified by risk category at June 30, 1997, as follows: Risk Category Bank Balance 1 $ 100,000.00 2 521,611.02 3 0.00 Total $ 621.611.02 Note 3: GENERAL FIXED ASSETS The following is a summary of changes in the General Fixed Assets Account Group during the fiscal year: - 9- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 EXHIBIT "D" Note 3: GENERAL FIXED ASSETS Equipment Balance July 1, 1996 $ 182,843.55 Additions 6,663.00 Deductions 9,513.60 Balance June 30, 1997 $ 179,992.95 Note 4: RISK MANAGEMENT .The Agency is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees and natural disaster. The Agency has obtained commercial insurance for risk of loss associated with torts, assets, errors or omissions and job related illness or injuries to employees. However, the errors or omissions policy excludes coverage for discrimination. The Agency has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Agency's insurance coverage in any of the past three years. The Agency has elected to self-insure for all losses related to natural disasters. The Agency has not experienced any losses related to these risks in the past three years. Note 5: ON-BEHALF PAYMENTS The Agency has recognized revenues and expenditures in the amount of $11,815.76 for health insurance contributions paid on the Agency's behalf by the following State Agency. Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of$II,815.76 Note 6: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Agency believes that such disallowances, if any, will be immaterial to its overall financial position. - 10- MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 EXIllBIT "D" Note 7: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by Agency's are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Agency who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Agency makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.81% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Contribution 1997 1996 1995 100% 100% 100% $ 152,807.95 $ 144,361.39 $ 136,832.20 - 11 - MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 1997 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Education, U. S. Department of Through Georgia Department of Education Safe and Drug-Free Schools 1997 Grant Vocational Education - Basic Grants to States High School Program Basic Grant Total U. S. Department of Education Health and Human Services, U. S. Department of Through Georgia Department of Education AIDS School Health Education Implementation of a Program In Comprehensive Health Education 1996 Contract CFDA NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.186 $ 74,484.00 $ * 84.048 $ 12,120.60 86,604.60 $ 74,484.00 12,120.60 86,604.60 93.938 $ 1,808.34 $ 1,808.34 Total Federal Financial Assistance $ 88,412.94 $ =========8=8=,4=1=2=.=9=4= * This program has been defined as a major program on a statewide basis in accordance with OMB Circular A-133. Internal control and compliance testing for this program has been conducted at other organizational units of the State of Georgia. The Agency did not provide Federal Assistance to any subrecipient. See notes to the general purpose financial statements. - 12 - MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 3D. 1997 SCHEDULE "2" AGENCY/FUNDING GRANTS Education, Georgia Department of Other State Programs Health Insurance Regional Educational ServiceAgencies Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification CONTRACTS Education, GeorgiaDepartment of Regional Leadership Grant Through Central Savannah RiverArea RESA Through First District RESA GOVERNMENTAL FUND TYPE GENERAL FUND $ 11,815.76 461,268.00 83,464.57 28,657.11 12,707.32 $==5~97,~ 912~ .76 See notesto the general purposefinancial statements. - 13 - MIDDLEGEORGIAREGIONAL EDUCATIONAL SERVICEAGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1997 SCHEDULE "3" PERSONNEL BAILEY,VERNICE V BARTA,LYNNE C BLANN,BRIAN M BLOODWORTH,TRACEY R BORDERS,DENNIS S BORUM,CECIL J BROWN,LAMECCA 0 BUSH,L1NDA L CAPISTA,STEPHEN R CHIPMAN,JULIE P COOPER,HENRY L DAVIDSON,ROBERT E DAVIS,ANGELIAB DELONEY,LUNA F DYKES,CAROLYN C FAY,CATHERINE C FITCHBEN,SUSAN P FRITCHMAN,AMELIA H HARSHMAN,ROBERT G HAYWARD,CORDELIA J , HENDERSON,LATESA Q JONES,SHARON S LONG,SANDRA W LUNSFORD,RAMONA M MCCANN,JACQUELINE J MEADERS,KATHLEEN W MOUNT,DAVID L PEARSON,CHRISTINA L POSEY,JOSEPH A POSEY,JOSEPH A RANDOLPH,FRED E REDDING-MCKINNIE,MARILYN RICKS,JANICE 0 SCOTT,DONNAW SHARBER,LATASHA U SIMS,KATHARINE M SINGLETON,NANCY REE STAPLETON,CONRAD E STINCHCOMB,JACKIE G STINCHCOMB,JACKIE G STINCHCOMB,JACKIE G SWARTZ,CINDYM THOMAS,QWINDERL TWIGGS,JAMES L VANDERBEEK,VALERIE L WALTON,CONNIE H WELLMAN,CHRISTINE N WEYER,JENNI L WILLlAMS,SHERRYL F WOOD,LARAINE E Accruals June 30, 1996 June 30, 1997 PROGRAM INSTRUCTION INSTRUCTION SUPPORTSERVICES - PUPIL SERVICES SUPPORTSERVICES - PUPIL SERVICES INTERNALSERVICES FUND SUPP SRVS - IMPROVINSTR & ED MED SRVS SUPPORTSERVICES - CENTRAL INSTRUCTION SUPPORTSERVICES - PUPIL SERVICES SUPPORTSERVICES - PUPIL SERVICES SUPP SRVS - IMPROVINSTR & ED MED SRVS INSTRUCTION SUPP SRVS - IMPROVINSTR & ED MED SRVS SUPPORTSERVICES PUPIL SERVICES SUPP SRVS - IMPROVINSTR & ED MED SRVS SUPPORTSERVICES PUPIL SERVICES INSTRUCTION SUPPORTSERVICES - PUPIL SERVICES SUPPORTSERVICES - PUPIL SERVICES SUPPORTSERVICES - PUPIL SERVICES SUPPORTSERVICES - CENTRAL SUPPORTSERVICES - BUSINESS INSTRUCTION SUPP SRVS - IMPROVINSTR & ED MED SRVS SUPP SRVS - IMPROVINSTR& ED MED SRVS INSTRUCTION SUPPORTSERVICES PUPIL SERVICES SUPPORTSERVICES PUPIL SERVICES SUPP SRVS - IMPROVINSTR & ED MED SRVS SPECIAL REVENUE FUND- OTHERPROGRAMS INSTRUCTION SUPP SRVS - IMPROVINSTR& ED MED SRVS INSTRUCTION INSTRUCTION SUPPORTSERVICES - CENTRAL SUPPORTSERVICES - PUPIL SERVICES SUPPORTSERVICES CENTRAL SUPP SRVS IMPROVINSTR & ED MED SRVS DIRECTOR SUPP SRVS - IMPROVINSTR & ED MED SRVS GENERALADMINISTRATION INSTRUCTION SUPPORTSERVICES CENTRAL MAINTENANCE & OPER.OF PLANT SERVICES SUPPORTSERVICES PUPIL SERVICES INSTRUCTION SUPPORTSERVICES - PUPILSERVICES SUPPORTSERVICES - PUPIL SERVICES INSTRUCTION SUPPORTSERVICES PUPIL SERVICES SALARIES $ 29,301.88 $ 39,579.70 41,785.00 10,833.30 14,464.86 22,654.48 688.75 28,202.68 44,973.54 3,425.66 59,189.40 35,350.70 50,580.46 37,370.08 40,116.08 28,550.00 38,425.00 24,168.09 7,257.34 42,3n.72 1,083.75 25,362.36 4,392.68 16,271.40 40,451.32 39,739.31 31,500.00 13,500.00 37,138.10 4,244.34 39,685.08 19,014.75 28,512.20 31,893.20 3,094.51 17,042.64 1,122.00 60,123.04 69,158.16 25,767.20 2,814.27 9,999.96 37,504.24 19,900.92 40,835.00 25,767.20 32,756.90 33,701.50 $ 1,311,670.75 $ -155,102.08 161,369.08 TRAVEL 1,929.25 3,711.25 2,137.53 544.83 1,780.50 1,839.78 4,804.11 4,221.00 2,132.60 581.50 2,657.76 3,384.50 4,563.00 1,757.50 296.70 77.50 13.00 2,630.83 4,213.50 3,654.27 18.50 3,248.96 4,373.00 408.00 2,636.50 1,709.00 1,232.00 2,873.08 406.33 2,412.33 3,263.75 1,601.08 1,987.02 2,982.53 998.75 2,233.00 1,300.50 80,615.24 -649.55 287.00 $ 1,317,937.75 $ 80,252.69 See notes to the general purpose financial statements. 14 - SECTION II AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS MIDDLE GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1997 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBERAND STATUS 8644-93-01 Unresolved - See Corrective Action/Responses CORRECTIVE ACTIONIRESPONSES ACCOUNTING CONTROLS (OVERALL) Administrative Requirements Inadequate Separation of Duties Finding Control Number 8644-93-01 This fmding cannot be resolved because our fmanciaI accounting needs do not require a second bookkeeper. Currently, we have a system in place to protect the integrity of funds. The accounting duties, as separated by employee, are specified below: Sharon Jones, Bookkeeper Keeps generaIledger Prints checks Connie WaIton, Secretary Reconciles bank statements Marilyn McKinnie, Clerk Records incoming monies Jackie Stinchcomb, Director Approves purchase requests Approves purchase orders Signs checks Verifiesbank. statement reconciliation