Management report, North Georgia Regional Educational Service Agency, an organizational unit of the state of Georgia, year ended June 30, 1999

MANAGEMENT REPORT NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 1999
I, ~-------------------_/
STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASH I NGTON STREET
ATLANTA, GEORGIA 30334-8400

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

LETTER OF TRANSMITfAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIBITS

A COMBINED SCHEDULE OF REVENUES, EXPENDfTIJRES AND CHANGES

IN FUND BALANCES - BUDGET AND ACTUAL

GENERAL AND SPECIAL REVENUE FUNDS

1

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

SECTIONll 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. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
November 19,1999

Honorable Roy E. Barnes, Governor Members of the General Assembly of Georgia Members ofthe State Board of Education
and Director and Members ofthe North Georgia Regional Educational Service Agency Board ofControl
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 of Georgia Single Audit Report pursuant to the Single Audit Act Amendments of 1996, as of and for the year ended June 30, 1999, 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, 1999. The particular information provided is enumerated in the Table of Contents.
This report is intended solely for the information and use of management of the North Georgia 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,
~W.~" Russell W. Hinton .State Auditor
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SECTION I SELECTED FINANCIAL INFORMATION

NORTH GEORGIA 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, 1999

EXHIBIT "A"

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Other Support Services Enterprise Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1, 1998
Adjustments

GENERAL FUND

BUDGET

ACTUAL

$

796,450,00 $

796,126,39

105,000,00

617,350,52

595,287,37

$ 1,518,800,52 $ 1,391,413,76

$

23,613.90 $

38,073.33

407,600.01

382,863.22

314,085,79

339,737,41

562,346.13

563,015.48

29,058,42

33,589.43

127,438,08

107,833,22

264,879,98

$ 1,729,022.31 $ 1,465,112.09

$ 210,221,79 $

-73,698,33

419,695.08

414,731.03

-7,502,78

FUND BALANCE JUNE 30,1999

$

201,970,51 $

341,032.70

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$

85,958,00 $

134,912,72

2,446,854,04

2,235,816.88

$ 2,532,812.04 $ 2,370,729.60

$ 2,362,137,34 $ 2,215,643.45

170,424,70

154,788.13

$ 2,532,562.04 $ 2,370,431.58

$

250,00 $

298,02

94,481,06

0.00

-93,459.63

$

1,271.43 $

298.02

SUMMARY OF FUND BALANCE
Reserved Federal Programs Inventories Sick and Personal Leave
Unreserved Designated for Self-Insurance Program Undesignated

$

244,513,37

835.00

$

245,348.37

$

31,414.17

64,270,16

$

95,684.33

$

298.02

$

298.02

$ =...,;;34.;,,1;,:,;,0;;,;;3-.2,;,;,,70,;;.,

$ ==-=....;2;,;;9;,;;8;,;;.0;;;,2

- 1

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30,1999

EXHIBIT "B"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Vocational Education Other State Programs Georgia Learning 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

GENERAL FUND

SPECIAL REVENUE
FUND

$

122,057,82 $

20,839.22 500,946.00
6,630.72

85,208.00

48,954.72 85,958,00

24.990.00 35.454.63

$

796,126.39 $ ===1=34:i:!:,9:=1=2=.7:=2

-2-

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30. 1999

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 Individuals with Disabilities Education Act Part B - Special Education Special Projects Georgia Learning Resources System Part D - Special Education Personnel Development and Parent Training Georgia Learning Resources System Vocational Education - Basic Grants to States High School Program Basic Grant Tech-Prep Education
CONTRACTS Education, U. S. Department of Through Georgia Department of Education Technical Assistance Program Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Goals 2000 State and Local Education Systemic Improvement Grants Health and Human Resources, U. S. Department of Through Georgia Department of Education AIDS School Health Education Implementation of a Program in Comprehensive Health Education

SPECIAL REVENUE
FUND

$

1,750.00

28,411.77

120,849.36
2,805.04
1,71.7,576.02 311,925.00

16,181.65 36,018.04
300.00

$ ====2=,2=:35=,8=1=6=.8=8

-3-

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30.1999

EXHIBIT"D"

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 Various Sources
Workshop Fees Other

GENERAL FUND

$

156,156.78

28,386.68

57,800.42

87,458.92 -59,837.97 146,290.33 -94,920.79 30,251.69 -25,204.41

135,358.57 95,099.19 38,447.96

$

595,287.37

-4-

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30,1999

EXHIBIT"E"

NAME
ARP,BENNETTLELAND CANTRELL, WILLIAM L JR. CHAMPION, GAIL S COX, RALPH N ELLIS, ALICE M ENIS, DONALD F ENIS, GERTRUDE A FOSTER, JAMES F GIBSON, CHARLES E GIBSON, MARK JOHNSON, JOHNNY KINGSLEY, CURTIS W MULKEY, CINDY NELSON, KATRINA L NORTON, LELAND EUGENE PEREZ, RASHIDA A TANKERSLEY, EVELYN P TANKERSLEY, WILLIAM LARRY WEAVER,CANDACELYNN WEAVER, CARA WEAVER, CAROL A WEAVER, JOSEPH BENNY WILLIAMS, ARTHUR M WILLIAMSON, LINDA W

TITLE CATEGORY
Director Enterprise Technician General Admin Secretary/Clerk Enterprise Tech Coordinator IP Personnel-Finance & Business Director Of GLRS Support Srvc Secretary/Clerk Warehouseman Director Enterprise Technician Enterprise Technician Youth Apprenticeship Director Support Srvc Secretary/Clerk Business Serv Secretary/Clerk Deputy/AssociAssistant Supt Business Serv Secretary/Clerk Maintenance Personnel Maintenance PersoFmel School Improvement Specialist Secretary Support Serv Secretary/Clerk Enterprise Technician Enterprise Technician IS Personnel-Finance & Business

SALARIES

TRAVEL

$

51,683.31

36,152,88 $

28,123.37

55,486.56

54,763.20

71,909.96

27,855.36

23,328.94

64,448.45

28,059.17

48,586.56

57,021.60

29,054.64

20,734.00

72,521.28

3,948.00

26,278.32

53,481.36

75,225.00

20,589.84

35,426.88

44,463.60

66,280.08

54,763.20

166,00 466.00
695.34 5,296.37
50.25
2,440.03 299.50
2,285.31
197.05 3,591.98
73.25
623.67 20.00
1,294.96

$ 1,050,185.56 $ ==1=7=,4=9=9.::.7::::1

-5-

SECTIONll AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY
J\Ut>ITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 1999

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-8524-97-02 FS-8524-98-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8524-98-01

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

SECTIONID CURRENT YEAR FINDINGS AND QUESTIONED COSTS

NORTH GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 1999
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8524-99-01
The North Georgia Regional Educational Service Agency did not maintain a ,General Fixed Assets Account Group within the fonnal accounting records. This condition results in the 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.