Management report, Oconee Regional Educational Service Agency, an organizational unit of the state of Georgia, year ended June 30, 2001

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MANAGEMENT REPORT OCONEE REGIONAL
EDUCATIONAL SERVICE AGENCY
AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA
YEAR ENDED JUNE 30, 200 I
Russell W. Hinton State Auditor

OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY

-

MANAGEMENT REPORT

-TABLEOFCONTENTS-

LETTER OF TRANSMITTAL

SECTION I

SELECTED FINANCIAL INFORMATION

EXHIDITS
A COMBINED SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL AND SPECIAL REVENUE FUNDS
B SCHEDULE OF STATE REVENUE C SCHEDULE OF FEDERAL REVENUE D SCHEDULE OF OTHER REVENUE E SCHEDULE OF SALARIES AND TRAVEL

Page
1 2 3 4 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. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W.. Suite 214 Atlanta. Georgia 30334-X400
December 6, 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 Oconee Regional Educational Service Agency Board of Control
Ladies and Gentlemen:
As part ofour audit ofthe general purpose financial statements ofthe State ofGeorgia presented in
the State ofGeorgia Comprehensive Annual Financial Report and the issuance ofaState o/Georgia 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 Oconee Regional Educational Service Agency. Accordingly, the financial statements and compliance activities ofthe Oconee 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 of Georgia 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 Oconee 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.
This report is intended solely for the information and use of management of the Oconee Regional Educational Service Agency and members of the Board and is not intended to be and should r.ot be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp

Rus ell W. Hinton State Auditor

SECTION I SELECTED FINANCIAL INFORMATION

OCONEE 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 "An

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Other Funds

$ 601,166.00 $ 637,887.92

100,000.00

344,931.00

486,543.71

Total Revenues

. $ 1,046,097.00 $ 1,124,431.63

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Central Support Services Other Support Services

$ 174,707.39

$ 733,247.00

552,435.28

83,216.00

76,334.70

113,552.00 242,365.00
7,735.00 34,747.00

118,154.30 212,380.90
2,512.88 35,121.76

Total Expenditures

$ 1,214,862.00 $ 1,171,647.21

Excess of Revenues over (under) Expenditures

$ -168l65.00 $ -47,215.58

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 65,000.00
-65,000.00

Total Other Financing Sources (Uses)

$

0.00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -168,765.00 $ -47,215.58

FUND BALANCE JULY 1, 2000

774,655.44

774,655.44

Adjustments

. 95,273.28

FUND BALANCE JUNE 30, 2001

$ 605,890.44 $ 822?13.14

SUMMARY OF FUND BALANCE
Reserved Federal Programs Inventories Sick and Personal Leave
Unreserved Undesignated

$ 207,289.44
1,600.02
$ 208,889.46
613,823.68
$ 822,713.14
-1

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,164,883.00 $ 1,164,883.00

151,189.00

290,243.43

7,327.23

$ 1,316,072.00 $ 1,462,453.66

$ 923,225.00 $ 887,112.98

162,574.00 50,400.00

114,423.06 171,736.74

49,263.00 35,343.00 66,267.00 29,000.00

62,122.78 35,339.28 161,232.62 29,000.00

$ 1,316,072.00 $ 1,460,967.46

$

0.00 $ _--,-,1,c:.;48",,6c:,::.2:::..0

$

0.00 $

1,486.20

231.21

231.23

$

231.21 $_.....1. .?1.7..4...3.

$

1,717.43

$

1,717.43

0.00

$-== 1,717.43

OCONEE 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 Health Insurance Regional Educational Service Agencies Severely Emotionally Disturbed Apprenticeship Programs
CONTRACTS Planning and Budget, Office of Through Georgia Professional Standards Commission Modeling in Algebra


GENERAL FUND

SPECIAL REVENUE
FUND

$

34,121.92

521,166.00
$ 1,164,883.00

80,000.00

2,600.00 $ 637,887.92 $ 1,164,883.00

-2-

OCONEE 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 Individuals with Disabilities Education Act Part B - Special Education Special Projects Severely Emotionally Disturbed
CONTRACTS Education, U. S. Department of Through Georgia Department of Education School Improvement Technical Assistant Program To position the contractor as the Department's agent to disperse funds as directed by the Department's School Improvement Division for costs associated with providing technical assistance to schools School Improvement for Principals Program To coordinate the delivery of training in capacity building for school improvement for principals of low-performing schools, other principals, RESA school improvement specialists, master teachers and Department school improvement staff

SPECIAL REVENUE
FUND
$ 29,000.00
132,811.04
99,977.91
28,454.48
$ 290,243.43

-3-

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

EXHIBIT "D"

Interest Earned Sales and Services
Audio Visual Repairs Less: Cost of Goods Sold
Merchandise for Resale Less: Cost of Goods Sold
Services Provided Shared Services Projects Various Sources
Workshop Fees Severely Emotionally Disturbed
Local Contributions Other

GENERAL FUND
$ 25,056.83
52,434.35 -20,889.16 339,716.98 -317,148.24

SPECIAL REVENUE
FUND

297,721.14 4,435.00
$
105,216.81

7,327.23

$ 486,543.71 $ =====7,=*,3=2;,;.7,;;;;.2=3

- 4-

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

EXH IBIT "E"

NAME
AVANT, JOHNNIE BARNES, DONNA 0 BECK,MARILYN S BOWMAN, LISA DAWN BOYKIN,CYNTHIA T BRINSON,FRIEDA P BRINSON,PATRICIA CARRIERE,L1NDA G CARTER, VERONICA A CARTWRIGHT,TIMOTHY J CHESTER, BENNIE JR CLAIBORNE, IRENE COLLlER,JAMISON COOK,GEORGEANNE L COUNTS,HEATHER M CRAWFORD,DORIS W CREECH,MICHAELLEE DEADWYLER,ASHLEY T DURDEN,CAROLYN A DURDEN,JOSH A EDWARDS,MYRTICE FEARS,LOUISE 0 FOSTER,CATHERINE GRIFFIN,DEBORAH A HALL,ALEXIS HANCOCK,PAMELA J HATCHELL, ANN J HOLLIMAN, PEGGY CLAYTON HUGHEY,GERALD BREIT HUMPHREY,HUGH DUANNE HUNTER,ROBIN LEIGH JANES,DOROTHY S JOHNSON, DIXIE MELODY JOHNSON, SHARON JORDAN, KARl E LAMAR, JACQUELINE LEE,WANDA Y LUNDY, SARA ANN MARKS,CONNIE DIANE MARTIN,MARY MASON, PAMELA L MCBRIDE, TAMMIE MCCORD, LISA M MCMAHAN,LAURA J MEDLEY,DONALD R MOBLEY,WILLIE C JR MOHONE, LISA M MONTGOMERY,FAYE H MOORE,MICHELLE Y MORGAN,PAMELA ODOM MOSLEY,ANNIE J MOSS,SARAH J

TITLE CATEGORY
Substitute Psych-Ed ParaprolTeacher Aide Instructional Supervisor Psycho-Educational Teacher Psych-Ed ParaprolTeacher Aide Finance/Business Personnel Substitute Psycho-Educational Teacher Instructional Supervisor Custodial Personnel Substitute Substitute Substitute Psycho-Educational Teacher Psycho-Educational Teacher Substitute Psych-Ed ParaprolTeacher Aide Psycho-Educational Teacher Psych-Ed ParaprolTeacher Aide

IS Personnel - Maintenance Substitute Substitute Psych-Ed ParaprolTeacher Aide Instructional Supervisor Psycho-Ed Spec Ed Specialist Psych-Ed ParaprolTeacher Aide Instructional Supervisor Psych-Ed ParaprolTeacher Aide Psycho-Educational Teacher Maintenance Personnel Psych-Ed ParaprolTeacher Aide Psycho-Ed School Sec/Clerk Psycho-Ed School Sec/Clerk Substitute Psych-Ed ParaprolTeacher Aide Substitute Instructional Supervisor Substitute Psych-Ed ParaprolTeacher Aide Substitute Occupational Therapist (OT) Substitute Psycho-Educational Teacher Psycho-Educational Teacher Maintenance Personnel Maintenance Personnel Psych-Ed ParaprolTeacher Aide RESA Director Occupational Therapist (OT) Psych-Ed ParaprolTeacher Aide Psych-Ed ParaprolTeacher Aide Psych-Ed ParaprolTeacher Aide
- 5-

SALARIES

TRAVEL

$

968.20

6,218.00

27,492.96 $

30,710.80

6,971.64

37,065.00

82.40

35,325.50

45,858.12

7,270.54

334.50

57.00

80.00

5,424.68

25,821.00

41.20

1,003.04

27,034.55

11,882.98

12,004.92

7,;435.00

336.00

5,401.02

40,411.67

38,729.12

13,272.93

53,091.50

1,611.44

41,012.80

31,973.04

26,610.68

22,701.00

15,999.96

400.00

1,687.50

45.50

4,816.92

136.50

13,774.68

1,980.00

29,957.77

103.00

11,718.78

5,649.18

42,501.00

156.74

3,631.50

40,950.00

40,469.22

16,668.21

21,568.34

12,802.30

1,487.77 61.60
1,210.30 207.73
2,069.58
29.12 1,705.29
1,916.42 664.56 20.16
3,541.03
2,796.66 176.68
227.24
6,959.00 518.00

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

EXHIBIT "E"

NAME
MOYE,MARY M MURRAY,CARL E NELSON, NATASHA NORRIS,BRENDA O'MEA,JEAN H OAKMAN, ADRIENNE F ODOM, ALEXANDER OLlVER,JANE L POUNDS,ESTHER PRICE,L1NDA B PROSSER,DAN RAKESTRAW,MELISSA KAY RANDALL-BERRY,KELLY L RAY,MARYA D RAYFORD,BEVERLY JEAN REEVES,DENISE RICH,BRIAN K ROBERSON, NETIIE F ROBERSON, SADIE RUTLEDGE,CYNTHIA T SATCHER, PATRICIA SITION,GALE DOZIER SKAGGS,LOUISE W SMITH,EARTHA T STEVENS,SHIRLEY J STONE, BERNICE SWINT,MARION THOMPSON, CAROLYN C TICHENOR,CAYLEN A WALKER, JADA N WALKER, MICHAEL WALKER,TOMEKO WARREN,CATHERINE WASHINGTON,CLAUDIA WASHINGTON,RANDELL M WATKINS,PAULINE R WELLS, SHEDENA L WEST,LYNN B WHITAKER,CAROLYN VEASLEY WILLIAMS, DEVALYN DENISE WILLlAMS,ROSIE LEE WOLF,PATRICIA J
Accruals June 30, 2000 June 30, 2001

TITLE CATEGORY
Instructional Supervisor Psych-Ed ParaprolTeacher Aide Substitute Substitute Instructional Supervisor Psycho-Ed Social Worker Custodial Personnel Psych-Ed ParaprolTeacher Aide Substitute Support Serv Secretary/Clerk Warehouseman IS Personnel - Other Support Psych-Ed ParaprolTeacher Aide Psycho-Educational Teacher Psycho-Educational Teacher Substitute Maintenance Personnel Instructional Supervisor Substitute Planning/Evaluation Personnel Substitute Instructional Supervisor Psycho-Educational Teacher Finance/Business Personnel Psych-Ed ParaprolTeacher Aide Substitute Warehouseman Substitute Instructional Supervisor Psych-Ed ParaprolTeacher Aide RESA Director Psych-Ed ParaprolTeacher Aide Psych-Ed ParaprolTeacher Aide Psych-Ed ParaprolTeacher Aide Psych-Ed ParaprolTeacher Aide Psycho-Educational Teacher Psycho-Educational Teacher Psycho-Educational Teacher Support Serv Secretary/Clerk Substitute Psych-Ed ParaprolTeacher Aide Director of Psycho-Ed Prog

SALARIES

TRAVEL

$

7,979.34

8,564.42

38.00

80.00

58,508.04 $

14,454.75

5,391.95

10,822.48

99.00

23,730.90

20,823.00

23,348.04

9,088.30

31,082.11

36,455.16

3,518.78

30,181.58

30,198.96

123.60

22,712.00

136.50

4,919.92

47,671.30

25,371.00

20,691.36

2,460.00

14,736.96

24.75

61,500.62

7,822.99

14,132.68

9,903.48

12,748.00

9,435.08

13,031.58

37,310.19

6,687.51

6,084.18

31,134.96

3,393.00

1,875.84

54,699.96

3,208.99 109.20
33.60 268.52 415.24 342.86
49.84
1,544.29 1,708.16
685.16
3,341.39 849.18
12.04 326.48
16.80 153.30
2,236.57

$ 1,552,222.60 $

38,892.76

-10,043.64 13,010.26

$ 1,555,189.22 $

38,892.76

-6-

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


OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-8664-99-0 1 FS-8664-00-0 1

Further Action Not Warranted Unresolved - See Corrective ActionlResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8664-00-01

The management ofa General Fixed Assets Account Group is not an accessible accounting procedure at the present time due to this function being inoperative in our accounting system that is provided by the Georgia Department of Education (GDOE). With future upgrades to our system this should be a feasible accounting function that would bring our accounting procedures into conformity with General Accepted Accounting Principles. However, Oconee Regional Educational Service Agency does have an inventory procedure in place accountable for all equipment owned by the Agency which includes date acquired, acquisition cost, location and description. Date of Implementation: Upon receipt of software update from GDOE.


SECTION ill
,
CURRENT YEAR FINDINGS AND QUESTIONED COSTS

OCONEE REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001
FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETSIPROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8664-01-01
The Oconee 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 of General Fixed Assets Account Group. These subsidiary records should include an inventory ofequipment 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.