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MANAGEMENT REPORT NORTH GEORGIA 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 3()334-8400

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY MANAGEMENT REPORT - TABLE OF CONTENTS -

LETTER OF TRANS1\11TTAL

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 ID 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
December 11, 1998

Governor ofthe State of Georgia Members ofthe General Assembly of Georgia Members of the State Board of Education
and Director and Members ofthe North Georgia 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 of Georgia 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 North Georgia Regional Educational Service Agency. Accordingly, the financial statements and compliance activities of the North Georgia 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 North Georgia Regional Educational Service Agency as of and 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 ofmanagement ofthe North Georgia Regional Educational Service Agency. However, this report is a matter of public record and its distribution is not limited.
Respectfully submitted,
.~-~
Claude L. Vickers State Auditor
CLV:jb

SECTION I SELECTED FINANCIAL INFORMATION

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY COMBINED CHEDULE 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
~PENDITURES
Current Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Business Administration Maintenance and Operation of Plant Other Support Services Enterprise Operations
Total Expenditures
Excess of Revenues under Expenditures
OTHER FINANCING SOURCES (USES}
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources under Expenditures and Other Financing Uses
FUND BALANCE JULY 1, 1997
Adjustments

GENERAL FUND

BUDGET

ACTUAL

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

890,608.00 $

832,894.63 $ 83,447.00 $

173,884.00

150,000.00

1,624,736.32

1,475,287.18

803,976.63

597,466.28

$

12844,584.63 $ 114301360.91 $ 1?081183.32 $ 1,6491171.18

$

51,000.00 $

29,544.51 $ 144,886.00 $ 144,964.70

497,946.93

590,699.54

1,391,454.32

1,380,026.15

1,500.00

461.09

292,786.89

299,171.48

167,688.00

141,340.46

521,967.34

520,694.66

2,105.00

1,829.18

39,225.24

46,003.53

550.00

550.00

162,123.10

60,145.48

2861117.26

$

1,851,166.76 $ 11546,259.20 $ 1,708,183.32 $ 1,669,171.58

$

-61582.13 $ -115,898.29 $

0.00 $

-201000.40

$

0.00 $

0.40

$

0.00 $

-0.40

$

0.00 $

-0.40 $

0.00 $

0.40

$

-6,582.13 $ -115,898.69 $

0.00 $

-20,000.00

615,598.45

560,165.31

20,000.00

-92,181.96

-291535.59

FUND BALANCE JUNE 30, 1998
SUMMARY OF FUND BALANCE Reserved Inventories Prepaid Items Sick and Personal Leave
Unreserved Designated for Self-Insurance Program Undesignated

$

516,834.36 $

414,731.03 $

0.00 $

0.00

(<_,

$

264,193.54

3,200.00

835.00

$

268,228.54

$

31,414.17

115,088.32

$

1461502.49

$

0.00

$

0.00

$

414,731.03

-1-

$

0.00

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 1998

EXHIBIT"B"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Vocational Education Other State Programs Georgia Leaming Resources System Health Insurance Regional Educational Service Agencies Retirement Supervision and Assessment of Student and Beginning Teachers and PerformanceBased Certification
CONTRACTS Education, Georgia Department of Elementary School Foreign Language Model Program Georgia Evaluation Program Professional Practice Commission Scholastic Assessment Test (SAT) Regional Leadership Development Risk Management - Gas Lines
OTHER Education, Georgia Department of Reimbursement for Printing

GENERAL FUND

SPECIAL REVENUE
FUND

$

$

21,338.75

482,426.00

6,195.36

85,208.00

90,437.00 83,447.00

40,115.37 34,435.00 23,246.65 75,000.00 42,600.00 7,400.00
14,929.50

$

832,894.63 $ ===1==13==884===.o=o

-2-

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 1998

EXHIBIT"C"

Indirect Cost Special Revenue Fund
Interest Earned Medicaid Reimbursements Sales and Services
Internal Service Printing Less: Cost of Goods Sold
Internal Service Repairs Less: Cost of Goods Sold
Vocational Education Curriculum Center Less: Cost of Goods Sold
Services Provided Shared Services Projects Boards of Education Dalton City Fannin County Gilmer County Murray County Pickens County Whitfield County
Seminar Registration Other

GENERAL FUND

$

104,094.19

29,771.22

161,666.77

91,712.13 -73,709.74 145,808.35 -104,363.97 62,283.43 -40,235.96

20,416.38 13,515.58 14,400.88 27,407.98 15,313.42 41,791.00 56,265.67 31,328.95

$ ===5=97::::!:,4=6=6=.2=8

-3-

NOBTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 1998

EXHIBIT"D"

NAME
CANTRELL.WILLIAM L JR CHAMPION.GAIL S COX,RALPH N ELLIS.ALICE M ENIS,DONALD F FOSTER,JAMES F GIBSON,CHARLES E GIBSON,MARK GOOD,JOHN C JOHNSON,JOHNNY LOUDERMILK.CAROLYN MULKEY.CINDY NELSON,KATRINA L NORTON.LELAND EUGENE PEREZ,RASHIDA A TANKERSLEY.EVELYN P TANKERSLEY,WILLIAM LARRY VAIL,J PAUL WEAVER.CANDACE LYNN WEAVER,CARA . WEAVER.CAROL WEAVER,JOSEPH BENNY WILLIAMS.ARTHUR M WILLIAMSON,LINDA W

TITLE CATEGORY
Maintenance Personnel General Admin Secretary/Clerk Maintenance Personnel IS Personnel-Finance&Business Director of GLRS Warehouseman RESA Director Maintenance Personnel IS Personnel - Other Support Maintenance Personnel Director of Child Serve Support Serv Secretary/Clerk Business Serv Secretary/Clerk Deputy/Assoc/Assistant Supt Business Serv Secretary/Clerk Maintenance Personnel Maintenance Personnel Vocational Director (RESA) IS Personnel-Instruction Serv Secretary Support Serv Secretary/Clerk Maintenance Personnel Technology Director IS Personnel-Finance&Business

SALARIES

$

33,113.28

26,104.80 $

52,458.96

50,220.48

65,552.16

22,621.55

105,253.32

35,129.76

17,716.50

45,836.40

51,787.92

27,410.16

4,400.00

68,401.44

18,348.00

24,791.52

50,567.28

4,068.45

70,226.72

18,858.72

33,472.56

40,725.12

62,528.40

501220.48

TRAVEL
485.50 757.68 5,079.31
569.70 585.00 256.25 1,952.57
16.00 688.05 2,298.26
32.00
420.90 789.25

$ 979,813.98 $ ==1=3==,9=30=.4=7=

-4-

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

NORTH GEORGIA 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

8524-93-01 8524-96-01 8524-96-02 FS-8524-97-01 FS-8524-97-02

Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented 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-8524-97-02

North Georgia Regional Educational Service Agency does not maintain a General Fixed Asset Account Group within the formal accounting records. At this time the Board of Control has determined that it is not cost effective to implement and maintain a General Fixed Asset Account Group.

SECTION ill CURRENT YEAR FINDINGS AND QUESTIONED COSTS

NORTH GEORGIA 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 8524-98-01
The North Georgia 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.