Audit report, City of Vidalia Board of Education, Toombs County, year ended June 30, 1998

AUDITREPORT CITY OF VIDALIA BOARDOF EDUCATION
TOOMBS COUNTY, GEORGIA YEAR ENDED JUNE 30, 1998
.

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

11

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

23

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

24

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

1 SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION

26

2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

27

3 SCHEDULE OF STATE REVENUE

29

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY
- TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

4 SCHEDULE OF EXPENDITURES

LOTIERY PROGRAMS

30

ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

5

OVERALL

31

6

BY PROGRAM

32

SECTIONll
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE wrrn
GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn OMB CIRCULAR A-133

SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTIONI FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND A'CCOUNTS
254 Washington Street. S.w.. Suite 214 Atlanta. Georgia 30334-8400
June 16, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Vidalia Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND suppLEMENTARY INFORMATION-
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the City of Vidalia Board of Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general purpose financial statements are the responsibilityof the City of Vidalia Board of Education's management. Our responsibilityis to express an opinion on these general purpose financial statements based on our audit.
We conductedour audit in accordancewith generallyacceptedauditingstandardsand the standards applicable to financial audits contained in Goyemment Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accountingprinciplesused and significantestimates made by management, as well as evaluating the overall financial statementpresentation. We believe that our audit provides a reasonablebasis for our opinion.
As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements of the Board did not contain a General Fixed Assets
Account Group to account for property and equipment owned by the Board which should be included to conform to generally accepted accounting principles.

98ARL-13B

* School activity accounts maintained at the individual schools are not included in the general purpose
financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 1998, a portion of salaries
and the corresponding employer's cost ofrelated benefits earned for contractual services completed prior to June 30, 1998. Also funds received, subsequent to June 30, 1998, from the Georgia Department of Education for the State's share ofthese unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were improperly recorded in the year ended June 30, 1998. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general purpose financial statements of the matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Vidalia Board of Education as of June 30, 1998, and the results of its operations and the cash flows of its nonexpendable trust fund for the year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditin~ Standards, we have also issued our report dated June 16, 1999, on our consideration ofthe City ofVidalia Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants.
The year 2000 supplementary information on Schedule "1" is not a required part of the basic financial statements but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation of the supplementary information, However we did not audit the information and do not express an opinion on it. In addition, we do not provide assurance that City of Vidalia Board of Education is or will become year 2000 compliant, that the Board's year 2000 remediation efforts will be successful in whole or in part, or that parties with which City of Vidalia Board of Education does business are or will become year 2000 compliant.
Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the City of Vidalia Board of Education taken as a whole. The accompanying combining statements (Exhibits G through J) and the financial schedules (Schedules 2 through 6), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole.
98ARL-13B

A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24.
Respectfully submitted,
~Lb.<td. Russell W. Hinton State Auditor
RWH:gp 98ARL-13B

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY

CITY OF VIDALIABOARDOF EDUCATION - TOOMBS COUNTY COMBINED BALANCE SHEET
ALL FUNDTYPESAND ACCOUNT GROUP JUNE 30. 1998

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
AmountAvailable in Debt ServiceFund
Amountto be Provided in FutureYears For Paymentof Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

410,760.90 $

406,385.22 $ 1,084,160.32

1,529,865.39

728,062.06

37,706.36

17,548.18 4,618.68

Total Assets

$ 2,668.688.35 $

466.258.44 $ 1.084.160.32

LIABILITIES AND FUNDEQUITY
LIABILITIES
Accounts Payable Salaries Payable Notes Payable Expired Grant BalancesPayable Contracts Payable Retainages Payable GeneralObligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Endowment Corpus For ExpiredGrant Balances/Questioned Costs For Inventories Food DonatedCommodities Purchased Food For Purposeof Bond Issue For State CapitalOuUay Projects Unreserved Undesignated
Total Fund Equity

$

1,047.95 $

19,990.81

100,717.56

8,261.97

33,442.43

$

61,775.81

14,585.11

$

9,309.92 $

154,150.80 $

76,360.92

$

7,035.04

$

893.75

2,658.484.68 $ 2,659.378.43 $

17,548.18 4,618.68
$

1,007,799.40

282,905.74 312.107.64 $

o.oo
1,007.799.40

Total Liabilities and Fund Equity

$ 2,668.688.35 $

The notes to the general purposefinancial statements are an integral part of this statement -2-

466.258.44 $ 1,084.160.32

EXHIBIT-A-

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30,1998 JUNE 30,1997

$

500.16 $

375.00

$ 1,902,181.60 $ 3,360,627.18

27,687.36

1,557,552.75

128,380.56

765,768.42

1,319,541.16

17,548.18 4,618.68

14,518.19 2,795.01

$

500.16

500.16

974.40

3,759,499.84

3,759,499.84

3,894,025.60

$

500.16 $

28,062.36 $

3,760,000.00 $ 8,007,669.63 $ 8,720,862.10

$

21,038.76 $

58,523.95

100,717.56

95,538.63

8,261.97

33,442.43

35,456.02

61,775.81

14,585.11

86,321.12

$

3,760,000.00

3,760,000.00

3,895,000.00

$

3,760,000.00 $ 3,999,821.64 $ 4,170,839.72

$

500.16

$

28,062.36

0.00

0.00

$

500.16 $

28,062.36

$

7,035.04

500.16 $

974.40

28,062.36

52,500.00

893.75

17,548.18 4,618.68 1,007,799.40

14,518.19 2,795.01 1,243,148.55 24,279.97

2,941,390.42

3,211,806.26

$ 4,007,847.99 $ 4,550,022.38

$

500.16 $

28,062.36 $

3,760,000.00 $ 8,007,689.63 $ 8,720,862.10

-3-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30,1998

GENERAL FUND

SPECIAL REVENUE
FUND

-4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1998 JUNE 30,1997

$ 19,387.56
55,962.30 $ $ 75,349.86 $

$
371.41 371.41 $

8,810,525.22 $ 1,388,479.42 2,662,400.60
830,254.27
13,691,659.51 $

8,798,964.65 1,227,843.87 2,752,912.71
970,385.89
13,750.107.12

$
$ 545,979.31 $ 135,000.00 205,857.50 845.65
$ 545,979.31 $ 341,703.15 $ $ -470.629.45 $ -341.331.74 $

8,690,806.49 $
478,749.70 228.033.43 314,575.27 452,066.75 867,787.55 135,817.36 852,218.24 361,504.76
17,213.36 807,298.23
114,981.99 550,778.64
135,000.00 205,857.50
845.65
14.213.534.92 $
-521,875.41 $

7,952,475.33
435,111.76 201,621.67 293,630.73 334,068.38 801,015.93 207,041.42 866,538.17 293,123.65
21,042.88 849,349.22
419.78 182,104.49 3,001,458.47
120,000.00 211,137.50
915.28
15.771,054.66
-2,020,947.54

$ 107,802.90 $ 340,857.50 $ $ 107,802.90 $ 340,857.50 $

475,433.49 $ -475,433.49
0.00 $

225,568.75 -225,568.75
0.00

$ -362,826.55 $ 1,370,625.95

-474.24 $ 974.40

-521,875.41 $ 4,496,807.38

-2,020,947.54 6,533,391.24

3,029.99 1,823.67

-15,558.81 -77.51

$ 1,007,799.40 $

500.16 $ 3,979,785.63 $ 4,496,807.38

-5-

CITYOF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY COMBINEP STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET ANDACTUAl- (NON-GAAP BASIS) GENERAL AND SPECiAl REVENUE FUNDS
YEARENDED JUNE30.1998

EXHIBIT .C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 8,331,549,00 $ 8,638,705.16

2,778,066.90 538,650,00

2,662,400.60 567,200.79

Total Revenues

$ 11,648,265.90 $ 11,868,306.55

EXPENDITURES

Current Instruction SupportServices Pupil Services Improvement of Instructional Services Educational Media Services General Administration SchoolAdministration Business Administration Maintenance and Operation of Plant StudentTransportation Services Other SupportServices Food ServicesOperation Community Services Operations
CapitalOuUay

$ 7,605,525.60 $ 7,860,238.62

309,775,54 190,300.33 443,888.99 397,394.52 843,072.62 130,328.00 898,747.00 292,705.00 19,920.75

464,221.95 198,770.12 314,575.27 404,233.43 867,787.55 135,817.36 852,218.24 358,017.96 16,128.90

128,743.00

114,981.99 4,799.33

Total Expenditures

$ 11,260,401.35 $ 11,591,790.72

Excessof Revenues over (under)Expenditures

$ 387,864.55 $ 276,515.83

OTHERFINANCING SOURCES (USES)

Other Sources Other Uses

$

5,000.00

-642,786.25 $ -475,433.49

Total Other Financing Sources (Uses)

$ -637,786.25 $ -475,433.49

Excessof Revenues and Other Financing Sources over (under)Expenditures and OtherFinancing Uses $

-249,921.70 $

-198,917.66

FUNDBALANCE JULY1. 1997

2,145,911.52

2,858,296.09

Food Inventory - Net Changein Period Donated Commodities Purchased Food

FUNDBALANCE JUNE30. 1998

$ 1,895,989.82 $ 2,659,378.43

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

95,467.00 $ 152,432.50

1,184,830.00

1,388,479.42

184,500.00

206,719.77

$ 1,464,797.00 $ 1,747,631.69

$ 591,580,00 $ 830,567,87

10,075.00 28,000.00

14,527.75 29,263.31

52,002.00

47,833.32

4,190.00 7,850.00 820,920.00

3,486.80 1,084.46 807,298.23

$ 1,514,617.00 $ 1,734,061.74

$

-49,820.00 $

13,569.95

$

16,500.00 $

-16,500.00

$

0.00 $

26,773.09 26,773.09

$

-49,820.00 $

40,343.04

266,256.60

266,910.94

3,029.99 1,823.67

$ 216,436.60 $ 312,107.64

The notesto the generalpurpose financial statements are an Integral partof this statement -7-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30,1998

EXHIBIT"D"

OPERATING REVENUES
None Recorded
OPERATING EXPENSES
Current Scholarships
Operating Income (Loss) NONOPERATING REVENUES
Dividends Earned Net increase (decrease) in the
fair value of investments
Nonoperating Revenues
Net Income (Loss) FUND BALANCE JULY 1

ENDOWMENT FUND
SARA A, MURCHISON SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1998 JUNE 30, 1997

$

0,00 $

0,00 $

0.00

$

490,00 $

490,00 $

0.00

$

-490,00 $

-490,00 $

0,00

$

150,00 $

150,00 $

225,00

-24,812,64

-24,812,64

$

-24,662.64 $

-24,662,64 $

225,00

$

-25,152.64 $

-25,152,64 $

225,00

53,215,00

53,215,00

52,990.00

FUND BALANCE JUNE 30

$

28,062.36 $

28,062,36 $ _ _.5..3...,.2iii1oio5iio,.0..0...

The notes to the general purpose financial statements are an integral part of this statement. -8-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30.1998

EXHIBIT"E"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities: Dividends Received on Investments
Net Increase (Decrease) in Cash Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30

ENDOWMENT FUND
SARAA. MURCHISON SCHOLARSHIP
FUND

TOTALS (Memorandum Only)
YEAR ENDED JUNE 30,1998 JUNE 30, 1997

$

-490.00$

-490.00

$

225.00 $

225.00 $

200.00

$

-265.00 $

-265.00 $

200.00

640.00

640.00

440.00

$

375.00 $

375.00 $

640.0_0

The notes to the general purpose financial statements are an integral part of this statement -9-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1998
Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POUCIES
REPORTING ENTITY
The CityofVidaliaBoard ofEducation(Board) was established under the laws of the State of Georgiaand operates under the guidanceof a school board electedby the voters and a Superintendent appointedby the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budgetis not subject to approval by anyotherentity. Accordingly, the Boardis a primarygovernment and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Boarduses funds and an account group to reporton its financial positionand the results ofits operations. Fund accounting is designed to demonstrate legalcompliance andto 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 reportingdevice designedto provide accountability for certainassets and liabilities that are not recorded in the funds because they do not directly affect expendableavailable financial resources.
General Fixed Assets are recordedas expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presentlymaintained by the Board. To conform to generallyaccepted accounting principles, a General FixedAssets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activityaccounts" are maintained at the individual schools, neitherthe assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balancesof these accounts are reflected in these financial statements. To conformto generally accepted accounting principles, these accounts should be recorded in the generalpurpose financial statements.
The general purposefinancial statements account for all State, Federal, Taxes and Other funds under control ofthe Board, in compliance with generally accepted accounting principles applicable to governmental units, unlessotherwise disclosed in thesenotes. Fundsandthe account group presented in this reportare as follows:
GOVERNMENTAL FUNDTYPES - areusedto account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND- the fundused to account for all financial resources ofthe Boardexceptthoserequired to be accounted for in another fund. Thesetransactions relateto resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND- the fund usedto account fortheproceeds of specific revenue sources (other than for major capital projects) that are legallyrestricted to expenditures for specifiedpurposes. These funds are received primarily from the Georgia Department ofEducation and fromthe Federalgovernment to accomplish specific educational objectives.
- 11 -

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS ruNE 30. 1998
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
NONEXPENDABLE TRUST FUND Sara A. Murchison Scholarship Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide college scholarships to Vidalia City High School Seniors.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial 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 financing 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 financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
- 12-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 property taxes, intergovernmental grants and investment income.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 1998, a substantial number of personnel ofthe Board were employed for a one hundred and ninety day period beginning in late August 1997 and ending in early June 1998. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1997 and ending in August 1998. State grants to fund the State's share ofthese contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1998, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1998, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1998. Also, the State's portion of the compensation paid in July and August 1998 was received and recorded as revenue in the fiscal year subsequent to June 30,1998. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1997, were recorded in the year ended June 30, 1998. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The City ofVidalia Board of Education's budget is a complete financial plan for the Board'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 governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board'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 school
-13 -

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department ofEducation. 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 Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year and equity investments are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions ofthe State of Georgia.
- 14-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTy EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1998

Note 1: SUMMARy OF SIGNIFICANT ACCOUNTING POLICIES

In addition, the Board currently holds shares of common stock which was donated to the Board and is held as a part of its Nonexpendable Trust Fund.

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.

PROPERTY TAXES

The City ofVidalia fixed the property tax levy for the 1997 tax year (calendar year) on October 20, 1997 (levy date). Taxes were due on December 20, 1997. The lien date for property taxes was January 1, 1997. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1998. The Vidalia City Clerk bills and collects the property taxes for the Board of Education and remits the taxes collected to the Board.

The tax millage rate levied for the 1997 tax year (calendar year) for the City of Vidalia Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.0 mills

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the

- 15 -

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/ expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
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, results of operations or cash flows 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 AND INVESTMENTS
COLLATERALIZATION 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 ofsecurities pledged shall be equal to not less than 110 percent ofthe 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 of indebtedness or other direct obligations of the United States or of the State of Georgia,
- 16-

CITY OF YIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHffiIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30.1998

Note 2: DEPOSITS AND INVESTMENTS

(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 of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(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 of the 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, 1998, the bank balances were $4,673,609.98. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the Board or by the Board's agent in the Board's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the Board's name.
Category 3 - 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 Board's name.)

The Board's deposits are classified by risk category at June 30, 1998, as follows:

Risk CategOly

Bank Balance

1

$ 354,072.85

2

3,430,189.81

3

889.347.32

Total

$ 4.673.609.98

CATEGORIZATION OF INVESTMENTS At June 30, 1998, the fair value ofthe Board's investments was $27,687.36 and this entire amount consisted of common stock which was registered in the Board's name.

- 17 -

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1998

Note 3: NON-MONETARY TRANSACTIONS

The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The Board is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster; unemployment compensation and dental claims.

The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any ofthe past three years.

The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.

The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Beginning ofYear Liability

Claims and Changes in Estimates

Claims Paid

End ofYear Liability

1997

s

0.00 s

s 4,565.00

s 4,565.00

0.00

1998

s

0;00 s

s 1.790.00

s 1,790.00

0,00

Additionally, the Board is self-insured with regard to employee and dependent dental claims. This program is funded through a combination of employer and employee contributions. Changes in dental claims liability during the last two fiscal years are as follows:

1997 1998

Beginning of Year Liability

Claims and Changes in Estimates

s

s s 0.00

87,567.93

s

s s 0.00

105,570.01

Claims Paid

End ofYear Liability

s 87,567.93

0.00

s 105,570.01

0.00

- 18-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30, 1998

Note 4: RISK MANAGEMENT

The Board has purchased a surety bond to provide additional insurance coverage as follows:

Position Covered Superintendent
Note 5: GENERAL LQNG-TERM DEBT

Amount $ 50,000.00

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1995

4.20% - 5.75% $ 3,760.000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:

Balance July 1, 1997 Deductions Balance June 30, 1998

General Obligation
Bonds
$ 3,895,000.00
135,000.00
$ 3,760,000.00

At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
1999 2000 2001 2002 2003 2004 - 2008 2009 - 2010
Total Principal and Interest

General Obligation
Bonds
$ 359,715.00 372,275.00 388,725.00 408,782.50 427,150.00
2,364,772.50 999.767.50

- 19-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTy EXHIBIT "F"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1998

Note 6: ON-BEHALF PAYMENTS

The Board has recognized revenues and expenditures in the amount of$161,027.39 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance ofNon-Certified Personnel In the amount of$129,673.95

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $8,574.44

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $22,779.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1998:

Project

Unearned Executed Contracts

Vidalia High School - Reroofing Project

$ 15,119,85

The amount described in this note is not reflected in the general purpose financial statements.

Note 8: 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 Board believes that such disallowances, if any, will be immaterial to its overall financial position.

The Board is a defendant in various legal proceedings pertaining to matters incidental to the performance of routine Board operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general purpose financial statements.

- 20-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY EXHIBIT "F"
NOTESTOTHEGENERALPURPOSEF~~STATEMENTS
JUNE 30. 1998

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION
Substantially all teachers, administrative and clerical personnel employed by local school systems 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.

IRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe Board who are covered by IRS are required by State statute to contribute 5% oftheir gross earnings to IRS. The Board makes monthly employer contributions to IRS 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
1998 1997 1996

Percentage Contributed
100% 100% 100%

Required Contribution
$ 937,409.26 $ 864,769.05 $ 799,523.84

- 21 -

CITY OF VIDALIABOARD OF EDUCATIQN - TQQMBS CQUNTY COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30,1998

EXHIBIT"G"

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food DonatedCommodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS JUNE 30, 1998 JUNE 30,1997

$ 306,457,18 $

0,00 $ 99,928,04 $ 406,385.22 $ 242,940.84

13,030,69

24,675.67

37,706.36

327,024.15

17,548.18 4,618.68

17,548,18 4,618,68

14,518,19 2,795.01

Total Assets

$ 341,654,73 $ _ _....0.,.-.00;;. $ 124,603,71 $ 466,258,44 $ 587,278.19

LIABILITIES AND FUNp EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant BalancesPayable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

$ 3,200,42 33,381,71
$ 36,582.13
$ 17,548.18 4,618,68
282,905.74 $ $. 305,072.60 $

$ 16,790.39 $ 67,335.85 33,442,43
$ 117,568.67 $

$ 19,990.81 100,717.56 33,442.43
154,150.80 $

176,020.08 17,419.23 91,471.92 35,456,02
320,367.25

$ 7,035.04 $

7,035.04

0.00 0,00 $

0.00 7,035.04 $

17,548,18 $ 4,618.68
282,905.74
312,107.64 $

14,518.19 2,795.01
249,597.74
266,910,94

Total Liabilities and Fund Equity

$ 341,654,73 $ _ _....0..-..0.0. $ 124,603,71 $ 466,258.44 $ 587,278.19

See notes to the general purposefinancialstatements.

-22-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1998

EXHIBIT"H"

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 1998 JUNE 30,1997

REVENUES

State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES

$ 67,690.00 $
566,196.46 206,719.77
$ 840,606.23 $

84,742.50
$

$
822,282.96

152,432.50 $
1,388,479.42 206,719.77

120,716.00 1,227,843.87
392,167.48

84,742.50 $ 822,282.96 $ 1,747,631.69 $ 1,740,727.35

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations

$ 85,770.43 $ 744,797.44 $

14,527.75 29,263.31

47,833.32

$ 807,298.23

3,486.80 1,084.46

830,567.87 $
14,527.75 29,263.31
47,833.32
3,486.80 1,084.46 807,298.23

602,323.53
110.30 16,005.44
1,379.32 36,387.34
2,814.57 10,918.18
870.42 849,349.22 182,104.49

Total Expenditures

$ 807,298.23 $ 85,770.43 $ 840,993.08 $ 1,734,061.74 $ 1,702,262.81

Excess of Revenues over (under) Expenditures

$ 33,308.00 $ -1,027.93 $ -18,710.12 $

13,569.95 $

38,464.54

OTHER FINANCING SOURCES

Operating Transfers In

1,027.93

25,745.16

26,773.09

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$ 33,308.00 $

FUND BALANCE JULY 1

266,910.94

0.00 $
0.00

7,035.04 $
0.00

40,343.04 $
266,910.94

38,464.54 244,082.72

Food Inventory - Net Change in Period Donated Commodities Purchased Food

3,029.99 1,823.67

3,029.99 1,823.67

-15,558.81 -77.51

FUND BALANCE JUNE 30

s $ 305,072.60

0.00 $

7,035.04 $ 312,107.64 $ 266,910.94

See notes to the general purpose financial statements.

-23-

CITYOF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE30,1998

EXHIBIT-'-

ASSETS Cashand CashEquivalents Investments Accounts Receivable
Total Assets

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE30,1998 JUNE30,1997

$

0.00 $ 1,084,160.32 $

0.00 $ 1,084,160.32 $ 1,238,701.04

75,880,56

144,882.47

$

o~.o_o $ 1,084,160.32 $

O~.O_O $ 1,084,160.32 $ 1,459,464.07

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable Contracts Payable Retainages Payable

Total Liabilities

FUNDEQUITY

FundBalances

Reserved

For Purposes of BondIssue

For StateCapital OutiayProjects

Unreserved

Undesignated

$

Total FundEquity

$

$ 61,775,81 14,585,11
$ 76,360.92

$ 1,007,799,40

0.00

0.00 $

0.00 $ 1,007,799.40 $

Total Liabilities and FundEquity

$

O~.O_O $ 1,084,160.32 $

$

2,517.00

$

61,775.81

14,585.11

86,321.12

$

76,360.92 $

88,838.12

$ 1,007,799.40 $ 1,243,148.55 24,279.97

0.00

0.00

103,197.43

0.00 $ 1,007,799.40 $ 1,370,625.95

O~.OO_ $ 1,084,160.32 $ 1,459,464.07

See notesto the generalpurpose financial statements.

-24-

CITYOFVIDAliA BOARD OF EDUCATION - TOOMBS COUNTY COMBINING STATEMENT OF REVENUES, EXPENDITURES ANDCHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEARENDED JUNE30, 1998

EXHIBIPJ"

REGULAR

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTAlS YEAR ENDED JUNE30, 1998 JUNE30,1997

REVENUES

State Funds Other Funds

$ 9,387,56

$

$ 55,962.30

10,000,00 $

19,387,56 $ 55,962.30

370,516.41 130,108.48

Total Revenues

$ 9,387.56 $ 55,962,30 $

10,000.00 $

75,349.86 $ 500,624.89

EXPENDITURES

Capital OUtlay Landand Land Improvements Building and Building Improvements Equipment

$ 249,5n.15 $ 286,489.45 $

5,090.71

4,822.00

0.00 $

$ 536,066.60
9,912.71

102,327.14 2,495,346,44
403,784,89

Total Expenditures

$ 254,667.86 $ 291,311.45 $

0.00 $ 545,979.31 $ 3,001,458.47

Excess of Revenues over (under)Expenditures OTHER FINANCING SOURCES (USES)

$ -245,280.30 $ -235,349.15 $

10,000.00 $ -470,629.45 $ -2,500,833.58

Operating Transfers In Operating Transfers Out

$ 142,082.87

$ 142,082.87 $ 278,576.97

$

-34,279,97

-34,279.97

-278,576.97

Total OtherFinandng Sources (Uses) $ 142,082.87

$

-34,279,97 $ 107,802.90 $

0.00

Excess of Revenues and OtherFinandngSources

over (under)Expenditures and OtherFinandng

Uses

$ -103,197.43 $ -235,349.15 $

-24,279.97 $ -362,826.55 $ -2,500,833.58

FUND BAlANCE JULY1

103,197,43 1,243,148.55

24,279.97

1,370,625.95

3,871,459.53

FUND BALANCE JUNE30

$ _ _~O;;.::'O~O $ 1,007.799.40 $

0..0.0.. $ 1,007,799.40 $ 1,370,625.95

See notesto the generalpurpose finandal statements,

-25-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY SCHEDULE OF REQUIRED SUPPLEMENTARY INFORMATION
YEAR lOOO DISCLOSURES YEAR ENDED JUNE 30. 1998

SCHEDULE "1"

At June 30, 1998, the City of Vidalia Board of Education had no outstanding contractual commitments for the purpose ofmakingcomputer systems andotherelectronic equipment year2000compliant. The year2000 issueis the resultof shortcomings in manyelectronic dataprocessing systems and other equipment that make operations beyond year 1999troublesome. Theyear2000issueis ofprimary concern forthe Board's financial accounting system and student information system. The following stages have been identified as necessary to implement a year 2000 compliantsystems.
Awareness Stage- Encompasses establishing a budgetand projectplan for dealingwith the year 2000 Issue.
Assessment Stage - The actualprocessof identifying all of its systems and individualcomponents of the systems to check for compliance.
RemediationStage - When changes are made to systems and equipment.
Validation/Testing Stage - The process of ensuring that the changes made to systems and equipment will produce a year 2000 compliant system.
It will be necessary for the Board to progress through all four of these stages for each computer and/or electronic system, not already year2000compliant, in orderto assure that these systems will not be adversely affected. As of June 30, 1998, the financial accounting system and student information system were determined to be at the Awareness Stage.

See notes to the generalpurpose financial statements. - 26-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30,1998

SCHEDULE -2-

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 1998 Grant National School Lunch Program 1998 Grant Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1998 Contract
Total U. S, Department of Agriculture
Education, U, S. Department of Pass-Through From Georgia Department of Education Elementary and Secondary Education Act TiUel Grants to Local Educational Agencies 1998 Grant TiUell Eisenhower Professional Development 1998 Grant TiUeVI Innovative Education Program Strategies 1998 Grant Goals 2000 State and Local Education Systemic Improvement Grant 1998 Grant Individuals with Disabilities Education Act Part B - Special Education Flow Through 1997 Grant Preschool 1998 Grant Vocational Education - Basic Grants to States High School Program Basic Grant 1998 Grant Tech-Prep Education 1998 Grant Pass-Through From Southeast Regional Prevention Resource Center Safe and Drug-Free Schools 1998 Grant
Total U, S, Department of Education

CFDA NUMBER
* 10.553 * 10.555
10,550 10,558
84.010 84.281 84.298 84.276 84.027 84.173 84.048 84.243 84.186

PASSTHROUGH
ENTITY ID
NUMBER

N/A

$

N/A N/A

N/A
$

N/A

$

N/A

N/A

N/A

N/A N/A

N/A N/A

N/A
$

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

96,266,55
405,517.47 $
61,037.11

(2)
746,261.12 (3) 61,037.11

3,375.33
566,196.46 $

(2) 807,298.23

543,110,41 $
24,546.72 14,537.00

543,110.41 17,511,68 14,537.00

135,075.86

135,075.86

62,754.81 4,791.16

62,754.81 4,791.16

27,467.00 5,000,00

53,212.16 (3) 5,000.00

5,000,00
822,282.96 $

5,000.00 840,993.08

Total Federal Financial Assistance
= N/A Not Available

-27 -

$

1,388,479.42 $_....1:,.6r4.8~,2=9:1...3;1~

CITY OF VIDALIABOARD OF EDUCATION - TOOMBS COUNTY SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEARENDED JUNE 3D. 1998

SCHEDULE -2"

Notesto the Schedule of Expenditures of Federal AwardS
(1) The amounts shownfor the FoodDistribution Program represents the Federally assigned valueof nonmonetary assistance for donated commodities received and/orconsumed by the system duringthe currentfiscal year.
(2) Expenditures for the Childand Adult Care FoodProgram and the School Breakfast Program were not maintained separately and are included in the 1998National School LunchProgram.
(3) Expenditures for this program includeState,and/orOther Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk(*) in front of the CFDAnumber.
The Boarddid not provideFederal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes Federal grantactivityof the City of VidaliaBoardof Education and is presented on the modified accrual basisof accounting which is the same basisof accounting in the presentation of the general purpose financial statements.

See notes to the generalpurpose financial statements.

-28-

CITYOF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY SCHEDULE OF STATE REVENUE YEAR ENpEDJUNE30, 1998

SCHEDULE -3-

AGENCYIFUNDING
GRANTS Education, Georgia Department of QualityBasicEducation General and career Education Programs Spedal Education Programs Remedial Education Program MediaCenterPrograms Staff Development Programs IndirectCost Pupil Transportation Regular Bus Replacement MiddleSchool Incentive Program In-School Suspension Counselors Grades 4 and 5 Technology Training Local Fair Share Educational Equalization Funding Grant Food Services Vocational Education OtherState Programs Ad Valorem Tax Adjustment Alternative Program At-RiskSummer School Program Health Insurance Innovative Programs MentorTeacherProgram Preschool Handicapped Program Remedial Summer School Program Teachers'Retirement LotteryPrograms Alternative Programs Finandal and Management Equipment Instructional Technology Assistive Technology Classroom Technology
Georgia State Finandngand Investment Commission Reimbursement on Construction Projects
Officeof Treasuryand FiscalServices PublicSchool Employees Retirement
CONTRACT Transportation, Georgia Department of MiddleSchool Paving Project

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$ 5,433,945,00

$

650,441,00

260,390.00

223,364.00

64,439.00

1,476,219.00

124,960.00 36,381.00 199,133.00 86,675.00 22,730.00 28,842.00 -882,506.00 566,675.00
$ 5,651.00

67,690.00

53,086.00 69,009.00 11,014.78 129,673.95
5,000.00 2,820.00 35,096.00 4,312.99 8,574.44

4,132.00 8,027.50

4,695.00 67,888.00

22,n9.00

$

10,000.00

9.387.56

TOTAL
5,433,945.00 650,441.00 260,390.00 223,364.00 64,439.00
1,476,219.00
124,960.00 36,381.00 199,133.00 86,675.00 22,730.00 28,842.00 -882,506.00 566,675.00 67,690.00 5,651.00
53,086.00 69,009.00 11,014.78 129,673.95
5,000.00 2,820.00 35,096.00 4,312.99 8,574.44
4,132.00 8,027.50
4,695.00 67,888.00
10,000.00
zarraoo
9,387.56

$ 8,638,705.16 $

152,432.50 $

19,387.56 $ 8,810,525.22

See notesto the generalpurpose finandal statements.

-29-

EXPENDITURES
Current Instruction

CITY OF VIDALIABOARD OF EDUCATION - TOOMBS COUNTY SCHEDULE OF EXPENDITURES LOTIERY PROGRAMS YEAR ENDED JUNE30, 1998

SCHEDULE -4-

ALTERNATIVE SCHOOL PROGRAM

FINANCIAL AND MANAGEMENT
EQUIPMENT

INSTRUCTIONAL TECHNOLOGY

ASSISTIVE

CLASSROOM

TECHNOLOGY TECHNOLOGY

TOTAL

$

4,132.00 $

8,027.50 $

5,078.93 $

68,532.00 $ 85,770.43

See notesto the general purposefinancialstatements.

-30-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30,1998

SCHEDULE "5"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100% TEST FOR
OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

6,568,140,00 $ _ _...1.:.7:..8=,.8.::7.:5.::..0.::0:..

$

7,029,916,14

503,520.54 $ _ _....4.:.6:..0:.,.L7.:0,,;0=.,:1.;:8.=.

$

7,533,436,68

-83,148,82 7,450,287,86

$

0,00 $ =============0=,=0=0=

See notes to the general purpose financial statements, - 31 -

CIlY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS BY PROGRAM
GENERAL FUND QUALIlY BASIC EDUCATION PROGRAMS YEARENDED JUNE30, 1998

GENERAL ANDCAREER EDUCATION PROGRAMS Kindergarten (*) Grades1 3 (*) Sub-Total K3 Grades 4 5 (*) Grades6 8 (*) Grades9 12 (*) High SChool Laboratories (*) Vocational Education Laboratories (*) TotalGeneral and career Education Programs
SPECIAL EDUCATION PROGRAMS RegularPrograms category I (*) category II (*)
category III r)
category IV (*) Sub-Total Regular
category VI (Gifted)(*) Total Special Education Programs
REMEDIAL EDUCATION PRQGRAM C) Total Fourteen Weighted Programs
MEDIACENTER PROGRAMS salaries Operations Total MediaCenterPrograms

ALLOTMENTS FROMDEPARTMENT OF EDUCATION

REQUIRED

ORIGINAL . . L

ORIGINAL

MID-TERM

$

600,554,00

$

540,498,60 $

0,00

1,478,255.00

1,330,429,50

$ 2,078,809,00 90 $ 1,870,928.10 $

0.00

676,950,00 90

609,255.00

1,186,694,00 90

1,068,024,60

857,114.00 90

n1,402.60

293,537.00 90

264,183,30

340,841.00 90

306,756.90

$ 5,433,945,00

$ 4,890,550,50 $

0,00

$

613,567,00

$

552,210,30 $

0.00

$

613,567.00 90 $

552,210.30 $

0,00

36,874,00 90

33,186,60

$

650,441.00

$

585,396,90 $

0,00

$

260,390,00 90 $

234,351.00 $

0.00

$ 6,344,n6.00

$ 5,710,298.40 $

0.00

S

183,152.00 90 $

164,836.80 S

0.00

40,212.00 90

36,190.80

$

223,364.00

$

201,027.60 $

0.00

Total Fourteen Weighted and MediaCenterPrograms

$ 6,568,140.00

$ 5,911,326.00 $

0.00

STAFFDEVELOPMENT PROGRAMS Cost of Instruction Professional Development

$

18,713.00

$

18,713.00 $

0.00

45,726.00

45,726.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs,
see notestothe generalpurpose financial statements,

$

64,439,00 100 $

64,439.00 $

0.00

32

SCHEDULE "6"

TOTAL REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$

540,498.60 $

512,849.21 $

37,046.05 $

549,895.26

1,330,429.50

1,274,868.03

119,614.52

1,394,482.55

$ 1,870,928.10 $ 1,787,717.24 $

156,660.57 $ 1,944,3n.81 $

0.00

609,255.00

783,n9.76

55,836.45

839,616.21

0.00

1,068,024.60

1,399,283.37

n,971.55

1,4n,254.92

0.00

n1,402.60

970,163.28

56,405.34

1,026,568.62

0.00

264,183.30

354,946.82

13,237.59

368,184.41

0.00

306,756.90

499,100.88

85,378.50

584,479.38

0.00

$ 4,890,550.50 $ 5,794,991.35 $

445,490.00 $ 6,240,481.35

$

552,210.30

$

128,716.43 $
134,342.61 366,691.80
38,454.21

1,591.68 $
2,895.61 4,585.61 1,895.04

130,308.11 137,238.22 371,2n.41 40,349.25

$

552,210.30 $

668,205.05 $

10,967.94 $

679,172.99

0.00

33,186.60

68,106.37

893.93

69,000.30

0.00

$

585,396.90 $

736,311.42 $

11,861.87 $

748,173.29

$

234,351.00 $

234,920.91 $

3,348.31 $

238,269.22

0.00

$ 5,710,298.40 $ 6,766,223.68 $

460,700.18 $ 7,226,923.86

$

164,836.80 $

263,692.46

$

263,692.46

0.00

36,190.80

$

42,820.36

42,820.36

0.00

$

201,027.60 $

263,692.46 $

42,820.36 $

306,512.82

$ 5,911,326.00 $ 7,029,916.14 $

503,520.54 $ 7,533,436.68 $

0.00

$

18,713.00

45,726.00

64,439.00

$

25,819.17 $

25.819.17

37,726.08

37,726.08

$

63,545.25 $

63,545.25 $

...8.93.7_5

- 33 -

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
June 16, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City ofVidalia Board ofEducation
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of City ofVidalia Board of Education as of and for the year ended June 30, 1998, and have issued our report thereon dated June 16, 1999. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. We conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Govemment Auditin~ Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether City of Vidalia Board of Education's financial statements are free ofmaterial misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under GoYernment Auditin~ Standards.
Internal Control Over Financial Reportin~
In planning and performing our audit, we considered City of Vidalia Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its
98YB-40

operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control over financial reporting that, in our judgement, could adversely affect City of Vidalia Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-7931-98-03.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use of management, members of the City of Vidalia Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~tJ.~ Russell W. Hinton State Auditor
RWH:gp 98YB-40

RUSSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w', Suite 214 Atlanta, Georgia 30334-8400
June 16, 1999

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the City of Vidalia Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPUCABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE IN ACCQRDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of City of Vidalia Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1998. City of Vidalia Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of City of Vidalia Board of Education's
management. Ourresponsibility is to express an opinion on City ofVidalia Board ofEducation's compliance
based on our audit.
We conducted our audit of compliance in" accordance with generally accepted auditing standards; the
standards applicable to financial audits contained in Government Auditini Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City of Vidalia Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on City ofVidalia Board of Education's compliance with those requirements.

98SA-I0

In our opinion, the City of Vidalia Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 1998.
Internal Control Oyer Compliance
The management of City of Vidalia Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered City of Vidalia Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level ofrisk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the City of Vidalia Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~.OL W. 4J.- Russell W. Hinton State Auditor
RWH:gp 98SA-I0

SECTIONID AUDITEE'S RESPONSE TO PRIORYEARFINDINGS AND QUESTIONED COSTS

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY
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

7931-93-02 FS-7931-97-01 FS-7931-97-02 FS-7931-97-03

FurtherAction Not Warranted PreviouslyReportedCorrectiveAction Implemented Previously Reported Corrective Action Implemented Unresolved-See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain GeneralFixed Assets Account Group Finding Control Number: FS-7931-97-03

Due to currentstaffing limitations and budgetary considerations prohibiting the hiringofadditional staff, the Board has decidednot to pursue the recording of General Fixed Assets on the financial
statements. The cost associated with the procedure prohibits our system from eliminating this long existing finding.

SECTION IV FINDINGS AND QUESTIONED COSTS

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30.1998
I SUMMARy OF AUDITOR'S RESULTS
1. !}!pe of RC4l0rt Issued on the Financial Statements The auditor's opinion on the City ofVidalia Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. RC4lortable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the City ofVidalia Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the City of Vidalia Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Re.portable Conditions in Internal Control Over Milior Pro~ams The audit report for the City ofVidalia Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. me ofRe.port Issued on Compliance for Milior Pr0iWWS The auditor's opinion on the City of Vidalia Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findinis Required to be R$alorted by Section .510(3) ofOMB Circular A-133 The City ofVidalia Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-133.
7. MajorPro~ams Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. IxPe "A" Promm Dollar Threshold
The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee
The City ofVidalia Board ofEducation was audited as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY
SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED ruNE 30. 1998
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONEP COSTS
EXPENDITURESILIABILITIESIDISBURSEMENTS Failure to Meet Expenditure Requirements Nonmaterial Noncompliance Amount: $893.75 Finding Control Number: FS-7931-98-01
The City of Vidalia Board of Education reported to the Georgia Department of Education on DE Form 0420 underexpenditures of Quality Basic Education (QBE) funds of $893.75 for the Staff Development Program. This underexpenditure occurred because the Board expended less than the minimum expenditure requirement for this QBE program. These funds should be returned to the Georgia Department of Education through an increase in the Board's local fair share for QBE programs in a subsequent fiscal period.
GENERAL LEDGER Detailed Listing of Salaries and Travel Not Reconciled Nonmaterial Noncompliance Finding Control Number: FS-7931-98-02
The detailed listing of salary and travel payments submitted to the Georgia Department of Audits as required by O.C.G.A. 50-6-27 was not reconciled with the general ledger. The detailed listing of salaries and travel had net "unlocated variances" of$3,019.86 and $1,464.48, respectively, which are reflected in a separately issued report titled "Supplementary Information - Schedule of Salaries and Travel".
This condition occurred because management did not reconcile amounts submitted to the Georgia Department of Audits to the Board's general ledger. Procedures should be established by the Board to ensure that the detailed listing of salary and travel is reconciled to the accounting records prior to submission to the Georgia Department ofAudits.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7931-98-03
The City ofVidalia Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board 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 land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, and acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Asset Account Group.
-2-

CITY OF VIDALIA BOARD OF EDUCATION - TOOMBS COUNTY
SCHEDULEOF FINDINGS AND Q1JESTIONED COSTS
YEAR ENDED JUNE 30. 1998
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-3-