STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS GA A<& 00 . RI :J..Co \ W4 \9qCJ-icoo MANAGEMENT REPORT WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY AN ORGANIZATIONAL UNIT OF THE STATE OF GEORGIA YEAR ENDED JUNE 30, 2000 Russell W. Hinton State Auditor WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY MANAGEMENT REPORT -TABLE OF CONTENTS- LETTER OF TRANSMIITAL SECTION I SELECTED FINANCIAL INFORMATION EXHIBITS 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 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 III CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS tussELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 December 11, 2000 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 West Georgia Regional Educational Service Agency Board of Control Ladies and Gentlemen: As part of our audit of the general purpose financial statements ofthe State of Georgia presented in the State ofGeorgia Comprehensive Annual Financial Report and the issuance ofa State ofGeorgia Single Audit Report pursuant to the Single Audit Act Amendments of 1996, as of and for the year ended June 30, 2000, we have performed certain audit procedures at the West Georgia Regional Educational Service Agency. Accordingly, the financial statements and compliance activities ofthe West Georgia 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 West Georgia Regional Educational Service Agency as ofand for the year ended June 30, 2000. 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 West 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, RWH:gp State Auditor SECTION I SELECTED FINANCIAL INFORMATION WEST 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, 2000 EXHIBIT "A" GENERAL FUND BUDGET ACTUAL REVENUES State Funds Federal Funds Other Funds $ 1,148,651.00 $ 784,666.55 1,405,042.75 1,451,023.84 Total Revenues $ 2,553,693.75 $ 2,235,690.39 EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Business Administration Maintenance and Operation of Plant Enterprise Operations $ 35,000.00 $ 55,739.69 322,107.00 894,670.00 614,369.00 160,079.00 206,098.00 394,000.00 314,072.24 838,975.43 652,046.71 137,348.34 193,522.92 14,328.95 Total Expenditures $ 2,626,323.00 $ 2,206,034.28 Excess of Revenues over (under) Expenditures $ -72,629.25 $ 29,656.11 FUND BALANCE JULY 1, 1999 434,472.87 434,472.87 Adjustments 26,266.50 FUND BALANCE JUNE 30, 2000 $ 388,110.12 $ 464,128.98 SUMMARY OF FUND BALANCE Reserved Inventories Sick and Personal Leave Unreserved Designated for Self-Insurance Program Undesignated $ 192,672.77 2,022.52 $ 194,695.29 $ 27,313.28 242,120.41 $ 269,433.69 $ 464,128.98 SPECIAL REVENUE FUND BUDGET ACTUAL $ 247,262.00 $ 90,762.00 519,545.87 598,188.12 $ 766,807.87 $ 688,950.12 $ 41,626.00 $ 27,024.52 585,245.01 541,315.43 118,175.99 115,660.17 6,000.00 6,000.00 $ 751,047.00 $ 690,000.12 $ 15,760.87 $ -1,050.00 3,687.02 1,050.00 -489.96 $ 18,957.93 $====0.=0=0 $ 0.00 $ 0.00 $ 0.00 - 1- WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000 EXHIBIT"B" AGENCY/FUNDING GRANTS Education, Georgia Department of Vocational Education Apprenticeship Program Basic Grants to States Other State Programs Georgia Leaming Resources System Health Insurance Regional Educational Service Agencies CONTRACTS Education, Georgia Department of Leadership Development GENERAL FUND SPECIAL REVENUE FUND $ 80,000.00 176,000.00 $ 20,303.57 497,751.00 90,762.00 10,611.98 $ 784,666.55 $==9=0=,7=6=2.=00= -2- WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FEDERAL REVENUE YEAR ENDED JUNE 30, 2000 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 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 Through Georgia Department of Health and Human Resources Safe and Drug-Free Schools Health and Human Resources, U.S. Department of Through Georgia Department of Health and Human Resources Block Grants for Prevention and Treatment of Substance Abuse Justice, U. S. Department of Governor, Office of the Juvenile Justice and Delinquency Prevention - Allocation to States 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 Goals2000 State and Local Education Systemic Improvement Grant SPECIAL REVENUE FUND $ 182,659.99 144,640.00 1,350.00 31,500.00 60,739.00 68,256.00 2,107.20 88,204.80 18,731.13 $ 598,188.12 -3- WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF OTHER REVENUE YEAR ENDED JUNE 30, 2000 EXHIBIT"D" Donations Indirect Cost Special Revenue Fund Interest Earned Medicaid Reimbursements Reimbursement For Salaries and Benefits Georgia Youth Science Training Center Sales and Services Equipment and Repair Services Less: Cost of Goods Sold Services Provided Shared Services Projects (Various Boards of Education) Tuition Workshop Fees Other GENERAL FUND $ 50,000.00 23,500.00 27,629.57 328,748.65 117,586.81 388,597.16 -314,526.82 553,911.75 85,508.87 51,759.99 1381307.86 $ 1z451 I023.84 -4- WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF SALARIES AND TRAVEL YEAR ENDED JUNE 30, 2000 EXHIBIT"E" NAME AUSTON,JUDY BROGDON,KANDIE B BURSON, DENISE CANNON, MARY E CARPENTER,MICHAEL R CLARK,ANGELYNN S CONOLY,BETSY L DODDS.MARK D DWIGHT.DEBRA M EVANS, GEORGIA G GODDARD,JOHN W GOLDEN,ROIELLA HARKLEROAD, JENNIFER L HILL.CONNIE B HOWARD,EVEANN HUGHES.AMY C JAMES,PATRICIA L JOHNSON.MARY LANEY,EDDIE LITTLEFIELD.BEATRICE LITTLEFIELD.TRACEY LOWORN,JOYCE H MARLOW.PATSY D MILLS, THOMAS FREEMAN MOORE,DONNA B MORGAN,ROBERT A MOSELEY,LEWIS W MOTOLA, BETH W NEWBORN,MARILEEN B O'REILLY, PATRICIA E OWENSBY.LUANNE PEAVEY.LYNNE D PERKINS,CONNIE POWERS, ELTON RHODES.MARK DAVIS ROGERS, MELINDA BROWN SCHAUBER, MAVIS W SCHEIBEL-SCHMITT,CAROLE SHEGDA,KATHY B SHEPPARD, ANNE G SMITH, LOUISA E STEWART,FRANK D SWINNEY, RHONDA B TURNER, PATTY VIRGINIA WHITE.STEVEN P WINKLES, LINDA E WRIGHT,CATHERYN J Accruals June 30, 1999 TITLE CATEGORY Occupational Therapist (OT) General Administration Secretary Reading Consultant Child Serve Coordinator Federal Programs Director General Administration Secretary General Administration Secretary Maintenance Personnel . Special Education Program Specialist School Improvement Specialist Youth Apprenticeship Director Technology Specialist General Administration Secretary Family Services Coordinator General Administration Secretary Preschool Special Education Teacher Business Services Secretaryry/CI Instructional Supervisor Finance & Business Service Personnel General Administration Secretary General Administration Secretary Finance & Business Service Man Vocational Director (RESA) Layboard Member Instructional Supervisor Warehouseman Instructional Supervisor Occupational Therapist (OT) Custodial Personnel Genreal Adminstration Secretary Occupational Therapist (OT) Audiologist Occupational Therapist (OT) Layboard Member Maintenance Personnel General Administration Secretary Occupational Therapist (OT) Occupational Therapist (OT) General Administration Secretary Layboard Member General Administration Secretary RESA Director General Administration Secretary Layboard Member Director of GLRS Custodial Personnel Instructional Supervisor SALARIES $ 2,407.50 4,330.66 64,119.42 $ 49,368.55 22,691.05 33,294.00 14,877.04 36,159.96 37,375.64 31,502.16 54,365.15 1,241.55 636.00 25,000.02 26,958.87 3,474.50 31,893.96 54,535.68 38,160.00 31,293.96 33,693.96 32,294.04 53,967.60 400.00 53,295.96 1,868.00 63,093.60 39,903.82 24,361.84 4,035.13 50,608.63 41,723.06 28,227.29 350.00 36,159.96 3,014.00 27,617.34 49,151.63 5,391.00 200.00 3,112.00 82,721.28 10,387.44 500.00 70,143.96 10,424.79 61,385.28 $ 1,351,717.28 $ -3,474.50 TRAVEL 4,077.20 3,095.66 2,274.16 102.75 649.44 2,336.50 4,472.55 3,069.62 964.62 896.65 520.50 2,624.98 332.50 279.00 3,107.30 824.17 2,733.50 2,672.16 23.50 2,315.29 1,852.79 150.75 2,884.97 428.25 1,334.95 840.27 593.04 2,272.78 3,255.31 299.00 3,156.41 52.25 54,492.82 $ 1,348,242.78 $===54=,4=9=2=.82= -5- SECTION II AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-8604-98-01 FS-8604-99-01 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-8604-99-01 It was the conclusion of the Board that at the present time we do not plan to address this issue. When the Department of Education provides sufficient guidance and funds to address this issue we will be glad to do so. Until then we will continue to look at how this can perhaps be accomplished and take action as we are able to do so. SECTION ID CURRENT YEAR FINDINGS AND QUESTIONED COSTS WEST GEORGIA REGIONAL EDUCATIONAL SERVICE AGENCY SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2000 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS/PROPERTY MANAGEMENT Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-8604-00-01 The West 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 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 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 ofall additions and deletions to the General Fixed Assets Account Group.