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Home My WebLink AboutJuvenile Delinqency Prevention and Intervention Augusta Richmond GA DOCUMENT]~AMEJ u. vc:n\ Ie,. 1):: \ i h:::1 ueYl~q \Jy-ev.c:nt,on a.-rc) -:L nfe~Ven~() DOCUMENT TYPE: \=3 l.tO'j e.i- YEAR: \ qq <6 - BOX NUMBER: ::) FILE NUMBER: I 3lo' 5" NUMBER OF PAGES: &2/ r9-~ ~ ~ { ~t!J /31.'1 ~ t ' RICHMOND COUNTY BOARD OF EDUCATION ADNA L STEIN President ; <\!"",-!Ho'~ I \ ~ 2083 Heckle Street Augusta, Georgia 30904-4295 (706) 737-7200 CHARLES G. LARKE, Ed.D. Superintendent C. GENE SPIRES, CPA Controller May 20, 1998 u. S. Department of Justice Richmond County Board of Commissioners 530 Greene Street August:!, GA 30911 This is to advise you that a Single Audit has been performed of the Richmond County Board of Education for the fiscal year ended June 30, 1997. The audit was performed by the Georgia Department of Audits and was conducted in accordance with Office of Management and Budget (OMB) Circular A-133 which establishes the audit requirements for States, Local Governments, and Non-Profit Organizations that expend $300,000 or more in Federal financial assistance. The "Schedule of Expenditures of Federal Awards" as reflected in the audit report included the following financial information relating to the Federal Awards provided to this School District by your organization: ~ ~ CFDA NAME OF FEDERAL PROGRAM NUMBER EXPENDITURES l~nile Delinquency Prevention and Intervention 16.548 $18,716.75 7 Grant The Single Audit Report included no prior year or current year findings or questioned costs relating to Federal financial assistance programs funded through the Richmond County Board of Commi:;sioners. Sincerely, ~~ C. GENE SPIRES, CPA Controller CGS/smb Enclosure , ' \", J STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS 254 WASHINGTON STREET ATLANTA, GEORGIA 30334-8400 AUDIT REPORT roCHMOND COUNTY BOARD OF EDUCATION AUGUSTA, GEORGIA YEAR ENDED JUNE 30, 1997 roCHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXIllBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS 2 4 6 7 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBnITNG BALANCE SHEET 22 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 24 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 26 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 28 FIDUCIARY FUND TYPES I COMBINING BALANCE SHEET 30 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 32 K COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS 33 RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL 5 BY PROGRAM 34 36 37 39 40 SECTION II COMPLIANCE AND INTERNAL CONlROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONlROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATElv1ENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUlRElv1ENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONlROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 SECTION ill SUMMARY OF AUDITOR'S RESULTS SUMMARY SCHEDULE OF AUDITOR'S RESULTS SECTION IV AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION V CURRENT YEAR FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. V ICKEF:5 STATE AUDITOR (404) 656-2174 February 27, 1998 Honorable Zeu Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond County 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 fmancial statements of the Richmond County Board of Education, as of and for the year ended June 30, 1997, as listed in the table of contents. These general- purpose financial statements are the responsibility of the Richmond County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards. iSSlzed 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 accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation, We believe that 01J1I' audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1997, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 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: 97ARL-13 · 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. · 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, 1997, a portion of salaries and the eorresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 1997. Also funds received, subsequent to June 30, 1997, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenue~; for contractual services completed prior to June 30, 1996, were improperly recorded in the year ended June 30, 1997. 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 of such adjustments, if any, on the General Fund and the Special Revenue Fund!, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies and food service inventories as discussed in the third paragraph, and except for the <:ffects 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 Richmond County Board of Education as of June 30, 1997, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards. we have also issued our report dated February 27, 1998, on our consideration of the Richmond County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Richmond County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U, S. Office of Management and Budget Circular A-B3, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and ar~: not a required part of the general-purpose fmancial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose fmancial statements and in our opinion, eXI:ept for the effect of adjustments, if any, on the General Fund and the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies and food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly presented in all material respects in relation to the general-purpose fmancial statements taken as a whole. 97ARL-13 A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to th,e press of the State, as provided for by Official Code of Georgia Annotated Section 50-6-24. Respectfully submitted, ~~ Claude L. Vickers State Auditor CLV:ds 97ARL-13 roCHMOND COUNTY BOARD OF EDUCATION RICHMOND COUNTY BOARD OF EDUCATION COMBINED BAlANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 1997 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds Inventories Consumable Supplies Food Donated Commodities Purchased Food Amount Available In Debt Service Fund Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements Compensated Absences Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds Deferred Revenue Funds Held for Others Capital Lease Agreements Compensated Absences General Obligation Bonds Payable Total Uabllities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Encumbrances For Expired Grant Balances/Questioned Costs For Inventories Consumable Supplies Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND $ 15.238,311.76 $ 523,763.66 $ 1,307.859.38 4.225,733.98 109,799.447.77 878.218.65 4.862.336.06 382,867.00 12.960.70 2,165.797.29 19.955.12 426.844.36 154,504.50 $ 22,521.022.38 $ 5.987,403.70 $ 111,490.174.15 $ 4,754,166.67 $ 627.721.88 1.776.906.40 54,418.44 $ 677.450.83 454,106.02 12.960.70 $ 4.754,166.67 $ 2,459.046.72 $ 1,144.517.55 $ 91.78 $ 2.193.729.46 135,583.70 2,165,797.29 19.955.12 426.844.36 154.504.50 $ 109,498,327.48 13,407.328.96 2,791,377 .52 847.329.12 $ 17,766.855.71 $ 3.528.356.98 $ 110.345.656.60 $ 22.521.022.38 $ 5.987.403.70 $ 111.490.174.15 - 2- The notes to the general purpose financial statements are an integral part of this statement. EXHIBIT "A" FIDUCIARY ACCOUNT GROUP DEBT FUND TYPES GENERAL TOTALS SERVICE TRUST AND LONG-TERM ~Memorandum Only) FUND AGENCY FUNDS DEBT JUNE 0,1997 JUNE 30,1996 $ 2.875,681.0~, $ 92.638.93 $ 20.038,254.81 $ 21.246.679.61 3.364,310.6~, 117,389,492.38 7,300,504.60 22,446.03 6,145,867.74 7,824.993.11 12,960.70 125,000.00 2,185,752.41 2,137,521.96 426,844.36 428,532.26 154,504.50 160,708.01 $ 6,262,437.74 6,262,437.74 2,875,806.05 131,687.562.26 131.687.562.26 21,859,193.95 13,138.506.39 13.138.506.39 13,669.163.50 766,929.04 766,929.04 755,257.53 $ 6.262,437.74, $ 92.638.93 $ 151,855.435.43 $ 298,209.112.33 $ 78.383.360.58 $ $ 5.381,888.55 1.n6,906.40 54.418.44 6n ,450.83 454.106.02 12.960.70 38,2n.29 13,138,506.39 766.929.04 137.950.000.00 866,698.56 4,066.957.88 1,707,589.45 892,167.05 955,831.08 125,000.00 25.000.00 34.592.48 13,669,163.50 755,257.53 24.735.000.00 $ 38.2n.29 $ 13,138,506.39 766,929.04 137.950,000.00 $ 38.2n.29 $ 151.855,435.43 $ 160,251,443.66 $ 47,833,257.53 $ 225.304.07 $ 91.78 19.84 $ 6,262,437.74 6.262,437.74 2.875,806.05 2,329.313.16 1,191.375.65 100,n3.44 2,185,752.41 2.137,521.96 426.844.36 428,532.26 154,504.50 160.708.01 109.498,327.48 893,360.72 0.00 $ 54,361.64 17,100.397.24 22,536,701.05 $ 6.262.437.74 $ 54.361.64 $ 137.957,668.67 $ 30.550,103.05 $ 6,262,437.74 $ 92.638.93 $ 151,855,435.43 $ 298.209.112.33 $ 78.383.360.58 - 3- RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30.1997 Total Revenues GOVERNMENTAL FUND SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND $ 104,302,128.21 $ 7.985,308.28 $ 4,241.079.00 956,104.53 19,744,049.31 54,201,134.19 2,438.787.38 3.126.097.73 3.250.086.35 $ 161.898.154.31 $ 30.855,455.32 $ 7,491.165.35 REVENUES State Funds Federal Funds Taxes Other Funds EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Capital Outlay Debt Service Principal Interest Paying Agent Fees Total Expenditures $ 106,024,777.91 $ 11,988,480.22 5,622,928.26 2,585,731.47 3.146,099.80 803,417.75 4,532,053.17 72,715.23 2,135,516.17 745,061.37 11,643,464.36 147,115.59 952,899.06 $ 1.970,300.00 16,503.500.23 775,474.13 6.697,170.72 105.274.95 1.902,982.97 104,545.68 721,357.61 8.462.58 13,287.531.29 305,338.63 371,492.47 1.112,406.77 138.105.60 10,422,537.75 1.273,303.10 747,905.49 $ 162,713,354.90 $ 31.741 ,757.68 $ 12.392.837.75 $ -815.200.59 $ -886.302.36 $ -4.901.672.40 Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Accrued Interest on Bonds Sold Proceeds from General Obligation Bonds Par Value Capital Leases Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) $ 109,853,048.16 $ 742,645.99 $ 395.117.21 4.286,436.70 -4,681,553.91 $ -3.938.907.92 $ 395.117.21 $ 114,139.484.86 $ -4,754,108.51 $ -491,185.15 $ 109,237,812.46 22,487,476.74 4,027,433.54 1,107.844.14 33,487.48 -1.687.90 -6.203.51 $ 17,766,855.71 $ 3.528.356.98 $ 110.345.656.60 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Consumable Supplies Inventory - Net Change in Period Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 The notes to the general purpose financial statements are an integral part of this statement. -4- EXHIBIT "B" TYPES FIDUCIARY TOTALS DEBT FUND TYPE (Memorandum Only) SERVICE EXPENDABLE YEAR ENDED FUND TOTAL TRUST FUNDS JUNE 30. 1997 JUNE 30. 1996 $ 116.528,515.49 $ 116,528,515.49 $ 110,796.022.00 20,700,153.84 20,700,153.84 18,477,566.29 $ 2.796,832.80 56,997.966.99 56,997,966.99 56.269,701.35 186.615.18 9.001.586.64 $ 2,819.06 9.004,405.70 5.884.957.82 $ 2.983.447.98 $ 203.228.222.96 $ 2,819.06 $ 203,231 ,042.02 $ 191,428,247.46 $ 118,013,258.13 $ 0.00 $ 118,013,258.13 $ 110,898,871.06 8,208,659.73 8,208,659.73 7,644,662.69 3,949,517.55 3,949,517.55 3,844,156.79 4,604,768.40 4,604,768.40 4,408,981.77 2,880,5n.54 2,880.5n.54 2,555,670.20 11,790.579.95 11,790,579.95 10,814,468.69 2,923,199.06 2,923,199.06 899,081.13 17,278,974.36 17,278.974.36 16,576.903.88 6,802,445.67 6,802,445.67 5,983,040.06 1,902,982.97 1,902,982.97 1.853,982.27 825,903.29 825,903.29 558,098.24 13,295,993.87 13,295,993.87 12,699,474.76 676,831.10 676,831.10 11,673,050.12 11,673,050.12 12,085,652.33 $ 1,785,000.DO 3,058,303.10 3.058,303.10 3,067,782.49 3,358,785.a3 4,106,691.32 4,106,691.32 2,026,401.10 7,295.1)4 7.295.04 7.295.04 10,503.71 $ 5.151,080.117 $ 211.999,031.20 $ 0.00 $ 211 ,999.031.20 $ 195.927,731.17 $ -2.167.632.119 $ -8.770.808.24 $ 2.819.06 $ -8,767.989.18 $ ~.499,483.71 $ 407,312.~'4 $ 407,312.74 $ 407.312.74 5.146,951.114 115,000,000.00 115,000,000.00 742.645.99 742.645.99 $ 6.675.00 4,681,553.91 4,681.553.91 5,911,358.59 ~,681,553.91 ~,681.553.91 -5,911,358.59 $ 5.554,264.!i8 $ 116.149,958.73 $ 116.149,958.73 $ 6.675.00 $ 3,386,63U9 $ 107,379.150.49 $ 2,819.06 $ 107,381,969.55 $ ~,492,808.71 2,875,806.05 30,498,560.47 51,542.58 30,550,103.05 35,118,583.52 33,487.48 33,487.48 34.097.96 -1,687.90 -1,687.90 -126.211.44 -6.203.51 -6.203.51 16,441.72 $ 6,262,437.i:i $ 137.903,307.03 $ 54.361.64 $ 137.957,668.67 $ 30,550.103.05 - 5- RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30.1997 EXHIBIT "C" GENERAL FUND SPECIAL REVENUE FUND ACTUAL ACTUAL (BUDGET (BUDGET BUDGET BASIS) BUDGET BASIS) REVENUES State Funds $ 100.490,357.00 $ 104,302.128.21 $ 8,474,782.00 $ 7,985,308.28 Federal Funds 1,030,500.00 956,104.53 21,808,475.96 19,744,049.31 Taxes 52.415,711.00 54.201,134.19 Other Funds 2,035,151.00 2,438,787.38 4,948,512.00 3,126,097.73 Total Revenues $ 155,971.719.00 $ 161 ,898.154.31 $ 35,231 ,769.96 $ 30,855,455.32 EXPENDITURES Current Instruction $ 103,350,501.66 $ 106,024,777.91 $ 13,116,236.41 $ 11,988.480.22 Support Services Pupil Services 5,077,078.00 5,622,928.26 3,287,344.00 2,585,731.47 Improvement of Instructional Services 3.265,321.80 3,146.099.80 1,459,893.35 803.417.75 Educational Media Services 4,765,444.00 4,532,053.17 189,329.00 72,715.23 General Administration 1,733.176.00 2,135,516.17 776,546.39 745,061.37 School Administration 11,234.878.00 11,643.464.36 236.022.00 147,115.59 Business Administration 945,180.00 952,899.06 Maintenance and Operation of Plant 17,170,686.00 16,503,500.23 827,657.17 775,474.13 Student Transportation Services 7,214,020.00 6,697,170.72 156,221.00 105,274.95 Central Support Services 2.447,295.95 1,902,982.97 407,760.00 Other Support Services 520,615.00 104,545.68 203,987.85 721,357.61 Food Services Operation 8,000.00 8.462.58 14,249.326.00 13,287,531.29 Community Services Operations 305,338.63 932,937.25 371,492.47 Capital Outlay 1.196,696.00 1,112,406.n 138,105.60 Debt SerVice 2,389,901.00 2,021,208.59 Total Expenditures $ 161 ,318.793.41 $ 162,713,354.90 $ 35,843,260.42 $ 31.741,757.68 Excess of Revenues over (under) Expenditures $ -5.347,074.41 $ -815,200.59 $ -611 ,490.46 $ -886,302.36 OTHER FINANCING SOURCES (USES) Other Sources $ 8,816,704.41 $ 742,645.99 $ 611,490.46 $ 395.117.21 Other Uses -3,469.630.00 -4.681.553.91 Total Other Financing Sources (Uses) $ 5,347,074.41 $ -3,938,907.92 $ 611 ,490.46 $ 395,117.21 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 0.00 $ -4,754,108.51 $ 0.00 $ -491,185.15 FUND BALANCE JULY 1. 1996 0.00 21.658,237.28 0.00 3,438,193.27 FUND BALANCE JUNE 30. 1997 $ 0.00 $ 16.904,128.77 $ 0.00 $ 2.947.008.12 The notes to the general purpose financial statements are an integral part of this statement. -6. RICHMOND COUNTY BOARD OF EDUCATION EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Richmond County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to 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 reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available fmancial resources. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "schDo1 activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial. statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general purpose fmancial statements. The general ptllpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNM:E:NT AL FUND TYPES - are used to account for all or most of a Board's educational activities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are re:ceived primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives, - 7 - RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for fmancial resources to be used for the acquisition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation of resources for, and the payment of, general long-term principal, interest and paying agent fees, FIDUCIARY FUND TYPES - the funds 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. These funds include: EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide fmancial assistance to needy students of Davidson Fine Arts Magnet School. Nora Coxwell Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. Robetta McKenzie Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or individuals. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation bonds outstanding, material accrued compensated absences and material capital lease obligations. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current fmancial 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 fmancing 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. - 8 - RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Agency funds are purely custodial in nature and do not involve measurement of results of operations. Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: Revenues are :recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" :means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, intergovernmental grants and investment income. Property taxes are considered available if they are collected and remitted by the collecting agent to the Board within 60 day:; after fiscal year-end. 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 lteachers' 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 1997, a substantial number of personnel of th.e Board were employed for a one hundred and ninety day period beginning in late August 1996 and ending in early June 1997. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1996 and ending in August 1997. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the Board in the same twelve months. As of June 30, 1997, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 1997, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 1997. Also, the State's portion of the compensation paid in July and August 1997 was received and recorded as revenue in the fiscal year subsequent to June 30, 1997. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1996, were recorded in the year ended June 30, 1997. 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. Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and liabilities. BUDGET The Richmond County 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 of budget control was established by the Board at the fund type leve:l. The budget for governmental funds was prepared on a basis other than generally accepted accounting pri:nciples. - 9- RICHMOND COUNTY BOARD OF EDUCA nON EXI-llBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a fmal school budget. This fmal budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167, to the Georgia Department of Education. The Board may increase or decrease . the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report: General Fund Special Revenue Fund FUND BALANCE JULY 1, 1996 $ 22,487,476,74 $ 4,027,433.54 Adjustments Inventories - July 1, 1996 Consumable Supplies Food Donated Commodities Purchased Foods -829,239.46 -428,532.26 -160.708.01 Fund Balance July 1, 1996 (Budget Basis) $ 21,658,237.28 $ 3,438,193.27 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses -4.754.108.51 -491.185.15 FUND BALANCE JUNE 30, 1997 (Budget Basis) $ 16.904.128.77 $ 2.947.008.12 CASH AND CASH EQUIVALENTS COMPOSmON 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. The placement of proceeds from bond issues in certificates of deposit is limited to financial institutions located within this State. - 10- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments ml:tde by the Board are stated at cost. Donated investments are stated at fair market value as of the date donated. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In se:lecting 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 govc;:rnment 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 of the State of Georgia. RECEIV ABLES 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 n:ceivables. PROPERTY 1r AXES The Augusta-Richmond County Commission - Council fixed the property tax levy for the 1996 tax year (calendar year) on August 13, 1996 (levy date). Taxes were due on November 15, 1996. The lien date for property taxes was January 1, 1996. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 1997 since their collection meets the criteria of GASB codification section P70.103. The Augusta-Richmond County Tax Commissioner bills and collects the - 11 - RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES property taxes for the Board of Education, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. In addition, the Clerk of the Superior Court of Richmond County collects recording taxes for the Board of Education, withholds 6% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board. Tax millage rates levied for the 1996 tax year (calendar year) for the Richmond County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 18.61 mills ~ mills ~ mills INVENTORIES CONSUMABLESUPPLffiS Inventories of athletic, custodial and instructional supplies are recorded as expenditures under the consumption method and are valued at cost (weighted average). These inventories are recorded as assets at the time of purchase. Inventories of maintenance and transportation supplies are recorded as expenditures at the time of purchase are valued on the Combined Balance Sheet at cost (weighted average). Inventories reported on the balance sheet are equally offset by a reservation of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. 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. COMPENSATED ABSENCES Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements. - 12 - RICHMOND COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 1: SUM1v1ARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL OBLIGATION BONDS The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilitks. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. RESERVED ]roND BALANCE For Encumbrances - This reserve constitutes the unperformed portion of purchase orders, contracts and other commitments for goods and services at year end. Encumbrances outstanding are reported as a reservation of fund balance and do not constitute expenditures or liabilities in the current year because the commitments will be honored dw'ing the subsequent year. INTERFUND TRANSACTIONS The Board has the following types of interfund transactions: Reimburseme:nts of expenditures initially made from a fund that are properly applicable to another fund, are recorded as expenditures in the reimbursing fund and as reductions of expenditures 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 or results of operations 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. Certain recl~:sifications have been made to the comparative data to conform to the current year classifications. 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 of securities shall be equal to not less than 110 percent of the public funds being secured - 13 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 2: DEPOSITS AND INVESTMENTS 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, (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 30,1997, the bank balances were $22,299,232.08. 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 fmancial 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.) - 14- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 2: DEPOSITS AND INVESTMENTS The Board's deposits are classified by risk category at June 30, 1997, as follows: Risk Cat~ Bank Balance 1 2 3 $ 200,425.73 22,098,806.35 0.00 Total $ 22.299.232.08 CA TEGORIZA nON OF INVESTMENTS Investments are classified as to risk by the three categories described below: Category 1 - Insured or registered, or securities held by the Board or the Board's agent in the Board's name. Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's name. Funds invested in an investment pool managed by another government are not required to be categorized unless the investing entity owns specific, identifiable investment securities in the pool. At June 30, 1997, the carrying amount of the Board's total investments was $117,389,492.38 and the market value of these itnvestments, excluding investments in the amount of$3,910,082.48 in the State of Georgia, Local Government Investment Pool, was $113,466,325.90. The investments are classified as to risk categories as follows: Total Risk Catcl!:ories 2 3 $ 69,886,125.00 $ 43,277,633.40 $ 315.651.50 $ 315.651.50 $113 163.75840 $ Carrying Amount Market Value Tvnc ofInv.:stment U. S. Government Repurchase Agreements Common Stock 0.00 $ 69,886,125.00 $ 69,886,125.00 43,277,633.40 43,277,633.40 315.651.50 302.567.50 000 $113,479,409.90 $113,466,325.90 Local Government Investment Pools 3.910.082.48 . Totil Investments $11738949238 $113 466 325 90 · Undeterminable - 15 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT liD" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 2: DEPOSITS AND INVESTMENTS The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities. The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool does not provide for investment in derivatives or similar investments. Note 3: NON-MONETARY TRANSACTIONS The Board receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: INTERFUND ASSETS AND LIABILITIES Due to and due from other funds are recorded for interfund receivables and payables which arise from interfund transactions. The following analysis summarizes the status ofall interfund transactions of the Board at June 30, 1997: Due From Other Funds Due To Other Funds General Fund Capital Projects Fund 1997 Bond Issue Fund $ 12,960.70 $ 12.960.70 $ 12.960.70 $ 12.960.70 Note 5: 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 and unemployment compensation. The Board has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the 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. - 16- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 5: RISK MANAGEMENT The Board has I~stablished a limited risk management program for workers' compensation claims. The Board accounts for all claims except School Food Services Fund 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. These losses may include an estimate of claims that have been incurred but not reported. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit. Changes in the workers' compensation claims liability during the last two fiscal years are as follows: Beginning Claims and of Year Changes in Claims End of Year Liability Estimates Paid Liability 1996 $ 0.00 $ 489,935.02 $ 489.935.02 $ 0.00 1997 $ 0.00 $ 135.360.95 $ 135.360.95 $ 0.00 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 Claims and of Year Changes in Claims End of Year Liability Estimates Paid Liability 1996 $ 0.00 $ 28.831.02 $ 20,946.84 $ 7 .884.18 1997 $ 7.884.18 $ 15.630.92 $ 20.080.26 $ 3,434.84 The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superint'~ndent Administrative Assistant Each Principal Business Manager Each Bookkeeper Each Lunch Room Manager Athletic Business Manager $50,000.00 $10,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 3,000.00 $ 1,000.00 - 17 - RICHMOND COUNTY BOARD OF EDUCA nON EXIDBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30.1997 Note 6: GENERAL LONG-TERM DEBT CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles and office equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. The Richmond County Board of Education entered into a lease agreement on April 1, 1994, with Richmond County Public Facilities, Incorporated (RCPF), for the acquisition and construction of school facilities. Under the terms of the lease agreement, the Board will make semi-annual payments through November 1,2009. GENERAL OBLIGA nON BONDS OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1996 General Government - Refunding - Series 1993 General Government - Refunding - Series 1991 3.65% - 5.55% 2.50% - 4.70% 4.50% - 6.30% $115,000,000.00 16,480,000.00 6.470.000.00 $13 7.950.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 1997, were as follows: Caoital Leases RCPF Other Compensated Absences General Obligation Bonds Total Balance July 1, 1996 $ 12,845,000.00 $ 824,163.50 $ 755,257.53 $ 24,735,000.00 $ 39,159,421.03 Additions Annual Leave Earned and Utilized (Net) Bond Proceeds Current Year Leases Deductions Payments 742,645.99 11,671.51 11,671.51 115,000,000.00 115,000,000.00 742,645.99 645,000.00 628.303.10 1.785,000.00 3,058,303.10 Balance June 30, 1997 $ 1220000000 $ 93850639 $ 76692904 $\3795000000 $15185543543 At June 30, 1997, payments due, by fiscal year which includes principal and interest for these items are as follows: - 18 - RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30,1997 Note 6: GENERAL LONG-TERM DEBT General Obligation Bonds Total Debt Fiscal Year Ended June 30 Caoital Leases RCPF Other 397,971.13 $ 9,596,632.50 $ 11,340,329.88 342,024.79 9,991,333.75 11,675,428.54 149,144.06 10,108,518.75 11,598,237.81 149,144.06 10,231,471.25 11,721,650.31 10,359,030.00 11,697,255.00 52,775,418.75 59,449,303.75 41,601,972.50 45,576,035.00 44,786,727.50 44,786,727.50 48,149,481.25 48,149,481.25 51. 766.402.50 51.766.402.50 1~98 1999 2000 2001 2002 2003 - 2007 2008 - 2012 2013 - 2(1) 7 2018 - 2022 2023 . 2027 $ 1,345,726.25 $ 1,342,070.00 1,340,575.00 1,341,035.00 1,338,225.00 6,673,885.00 3,974,062.50 Total Principal and Interest $ 17,355,578.75 $ 1,038,284.04 $28936698875 $307760851.54 Deduct: Imputed Interest 5.155.578.75 99.777.65 Net Presl:nt Value of Future Minimum Lease Payments $ 12 200 000.00 $ 938 506 39 Note 7: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of$3,160,369.36 for health insurance and retirement contributions paid on the Board's behalf by the following State Agencies. Georgia Department of Education Paid to the State Merit System of Personnel Administration For Health Insurance of Non-Certified Personnel In the amount of $2,542,075.94 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost 1m. the amount of $192,455.42 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$425,838.00 - 19- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 8: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 1997, together with funding available: Unearned Funding Executed Available Proiect Contracts From State B-97-001 $ 1,103,210.10 95/94S-721-059 and 96/95S-721-063 2,387,147.97 $ 177,474.00 95/94S-721-051 1,748,816.73 266,134.00 95/94S-721-049 33.729.24 $ 5.272.904.04 $ 443.608.00 The amounts described in this note are not reflected in the general purpose fmancial statements. Note 9: 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. Note 1 0: ACCUMULATED EMPLOYEES' LEAVE Administrative and other clerical personnel earn two days of vacation leave each month with a maximum accumulation of twenty- four days less required vacation days to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-two days per year depending upon the employee's length of service with a maximum accumulation of 22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 - Compensated Absences The Board also has an attendance incentive program that provides for payments not to exceed 20% of the employee's daily rate of pay based on days absent from work. No liability has been recorded for the June 30, 1997, attendance incentive liability as this amount is deemed immaterial to the general purpose fmancial statements. - 20- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 1997 Note 11: 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 pensio:rl plan. TRS provides service retirement, disability retirement and survivors benefits for its members in ac:cordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone fUlancial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS 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: Percentage Required Fiscal YI~ar Contributed Contribution 1997 100% $12,429,937.42 1996 100% $11,423,487.55 1995 100% $10,848,367.42 - 21 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 1997 ASSETS SCHOOL FOOD SERVICES LOTTERY FEDERAL FUND PROGRAMS PROGRAMS $ 3.421,587.29 $ 84,581.65 227.309.50 471,343.00 $ 4,074.918.27 Cash and Cash Equivalents Accounts Receivable Inventories Consumable Supplies Food Donated Commodities Purchased Food 426,844.36 154,504.50 Total Assets $ 4,230,245.65 $ 555,924.65 $ 4,074,918.27 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft $ 3,111,210.20 Accounts Payable $ 244,632.72 $ 110.780.98 269,503.20 Salaries Payable 692,068.08 393,629.00 691,209.32 Expired Grant Balances Payable 51,514.67 2.903.77 Total Liabilities $ 936,700.80 $ 555,924.65 $ 4,074,826.49 FUND EQUITY Fund Balances Reserved For Continuation of Federal Programs $ 91.78 For Encumbrances For Inventories Consumable Supplies Food Donated Commodities $ 426.844.36 Purchased Food 154,504.50 Unreserved Undesignated 2,712,195.99 $ 0.00 0.00 Total Fund Equity $ 3,293,544.85 $ 0.00 $ 91.78 Total Liabilities and Fund Equity $ 4,230,245.65 $ 555.924.65 $ 4,074,918.27 See notes to the general purpose financial statements. - 22- EXHIBIT "E" OTHER ATHLETIC TOTALS PROGRAMS FUND JUNE 30,1997 JUNE 30,1996 $ 216.527.93 $ 3,722,696.87 $ 2,936,548.16 $ 87,723.0'1 1,042.28 4,862,336.06 6,418,757.65 19,955.12 19,955.12 24,974.11 426,844.36 428,532.26 154,504.50 160,708.01 $ 87,723.0'L $ 237,525.33 $ 9,186,336.91 $ 9,969,520.19 $ 87,723.0'1 $ 3,198,933.21 $ 3,803,246.72 $ 2,804.98 627,721.88 431,250.48 1,n6,906.40 1,707,589.45 54,418.44 $ 87,723.0'~ $ 2,804.98 $ 5,657,979.93 $ 5,942,086.65 $ 91.78 $ 19.84 $ 135.583.70 135,583.70 142,373.49 19,955.12 19,955.12 24,974.11 426,844.36 428,532.26 154,504.50 160,708.01 $ 0.00 79,181.53 2,791,3n.52 3,270.825.83 $ O.O(~$ 234,720.35 $ 3,528,356.98 $ 4,027,433.54 $ 87,723.0'L $ 237,525.33 $ 9,186,336.91 $ 9,969,520.19 - 23- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 1997 FUND BALANCE JUNE 30 $ 3,293,544.85 $ See notes to the general purpose financial statements. - 24- 0.00 $ 91.78 EXHIBIT up' OTHER PROGRAMS ATHLETIC FUND TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996 $ $ 7,985,308.28 $ 19,744,049.31 338,032.85 3,126,097.73 8,793,907.15 16,969,899.39 3,108,514.96 $ 695,521.00 $ 695.521.01~ $ 338,032.85 $ 30,855,455.32 $ 28.872.321.50 $ 595,098.30 $ 11,988,480.22 $ 11,370,297.59 59,456.513 2,585,731.47 2,493,751.47 10.857.8H 803,417.75 864,958.20 72,715.23 14,639.36 30,108.2!i 745,061.37 752,542.35 147,115.59 2,438.27 $ 45,061.38 n5,474.13 865,548.21 105,274.95 85,158.40 360,535.75 721,357.61 289,285.58 13,287,531.29 12,690,879.66 371,492.47 138,105.60 138,105.60 49,096.36 2,400.81 $ 695,521.0(~ $ 543,702.73 $ 31,741,757.68 $ 29,480,996.26 $ 0.00 $ -205,669.88 $ -886,302.36 $ -608,674.76 198.103.00 395,117.21 418,091.54 $ 0.00 $ -7,566.88 $ 491,185.15 $ -190,583.22 0.00 242.287.23 4,027,433.54 4,327.786.48 -1,687.90 -126,211.44 -6,203.51 16,441.72 $ O.Q(~ $ 234.720.35 $ 3,528,356.98 $ 4,027.433.54 - 25- RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30.1997 ASSETS BOND PROCEEDS GEORGIA STATE FINANCING AND INVESTMENT COMMISSION REGULAR Cash and Cash Equivalents $ 847.329.12 $ 606,310.89 Investments $ 109,799,447.77 Accounts Receivable 382,867.00 Total Assets $ 847,329.12 $ 109.799.447.77 $ 989.177.89 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft $ 145,780.63 Accounts Payable Contracts Payable 128.876.86 $ 548,573.97 Retainages Payable 13,502.10 440.603.92 Deferred Revenue Due to Other Funds 12.960.70 Total Liabilities $ 301.120.29 $ 989.177.89 FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue $ 109,498,327.48 For State Capital Outlay Projects Unreserved Deficit Undesignated $ 847.329.12 0.00 $ 0.00 Total Fund Equity $ 847.329.12 $ 109,498.327.48 $ 0.00 Total Liabilities and Fund Equity $ 847,329.12 $ 109.799,447.77 $ 989.177.89 See notes to the general purpose financial statements. - 26- EXHIBIT "G" LOTTERY PROJECT TOTALS JUNE 30.1997 JUNE 30,1996 $ O.DO $ 1,453,640.01 $ 2,723.727.40 109,799,447.77 382.867.00 498.046.00 $ 0.122, $ 111,635,954.78 $ 3,221,773.40 $ 145,780.63 $ 115,179.00 752.13 677,450.83 892,167.05 454,106.02 955,831.08 25,000.00 12,960.70 125.000.00 $ 1 ,290,298.18 $ 2,113.929.26 $ 109,498,327.48 $ 893,360.72 -12,960.70 $ 0.00 847,329.12 227,444.12 $ 0.1l0 $ 110.345.656.60 $ 1,107,844.14 $ 0.122, $ 111.635,954.78 $ 3,221,773.40 - 27- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30.1997 GEORGIA STATE FINANCING AND BOND INVESTMENT REGULAR PROCEEDS COMMISSION REVENUES State Funds $ 3,146,809.00 Other Funds $ 619.885.00 $ 2.620,506.22 9,695.13 Total Revenues $ 619,885.00 $ 2,620,506.22 $ 3,156,504.13 EXPENDITURES Current Support Services Business Administration $ 0.00 $ 1,970,300.00 Capital Outlay Land and Land Improvements 51,385.50 $ 185,890.21 Building and Building Improvements 950.001.86 9,235,260.18 Total Expenditures $ 0.00 $ 2.971.687.36 $ 9,421.150.39 Excess of Revenues over (under) Expenditures $ 619.885.00 $ -351.181.14 $ -6.264.646.26 OTHER FINANCING SOURCES (USES) Proceeds from General Obligation Bonds Par Value $ 109.853.048.16 Operating Transfers In 9,421.16 $ 5,492,871.54 Operating Transfers Out Total Other Financing Sources (Uses) $ 109.862,469.32 $ 5,492.871.54 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 619,885.00 $ 109,511,288.18 $ -771.774.72 FUND BALANCE JUL Y 1 227.444.12 -12,960.70 771.774.72 Residual Equity Transfer FUND BALANCE JUNE 30 $ 847,329.12 $ 109,498.327.48 $ 0.00 See notes to the general purpose financial statements. - 28- EXHIBIT "H" LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30,1997 JUNE 30,1996 $ 1.094,270.00 $ 4,241,079.00 $ 3,250,086.35 7,491,165.35 $ 3,537,365.58 40,637.07 3,578,002.65 $ 1,094,270.00 $ $ 0.00 $ 1,970,300.00 $ 234.45 237,275.71 116,477.06 10.185,262.04 10,443,220.33 $ 0.00 $ 12,392,837.75 $ 10,559,931.84 $ 1.094.270.00 $ -4,901,672.40 $ -6,981 ,929.19 $ 109,853,048.16 5,502,292.70 $ 4,840,804.05 $ -1,215,856.00 -1.215.856.00 -652,463.00 $ -1.215,856.00 $ 114,139,484.86 $ 4.188,341.05 $ -121,586.00 $ 109,237,812.46 $ -2,793,588.14 121,586.00 1,107,844.14 4,553.129.54 -651,697.26 $ O.~$ 110,345.656.60 $' 1.107,844.14 - 29- EXPENDABLE TRUST FUNDS NORA ROBETTA COXWELL MCKENZIE SCHOLARSHIP SCHOLARSHIP FUND FUND RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 1997 ASSETS DAVIDSON TRUST FUND Cash and Cash Equivalents $ 31,036.18 $ LIABILITIES AND FUND EQUITY LIABILITIES Funds Held for Others FUND EQUITY Fund Balances Unreserved Undesignated $ 31,036.18 $ Total Liabilities and Fund Equity $ 31,036.18 $ See notes to the general purpose financial statements. - 30- 22,621.75 $ 22,621.75 $ 22,621.75 $ 703.71 703.71 703.71 EXHIBIT "I" TOTALS AGENCY FUI~DS JUNE 30,1997 JUNE 30,1996 $ 38,277 .29 $ 92,638.93 $ 86,135.06 $ 38,277.29 $ 38,277.29 $ 34,592.48 54,361.64 51,542.58 $ 38,277.29 $ 92,638.93 $ 86.135.06 - 31 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 1997 EXHIBIT" J" NORA ROBETT A DAVIDSON COXWEU MCKENZIE TOTALS TRUST SCHOLARSHIP SCHOLARSHIP YEAR ENDED FUND FUND FUND JUNE 30. 1997 JUNE 30. 1996 REVENUES Other Funds $ 1.609.39 $ 1.173.17 $ 36.50 $ 2.819.06 $ 2.780.11 EXPENDITURES None Recorded $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 Excess of Revenues over (under) Expenditures $ 1,609.39 $ 1,173.17 $ 36.50 $ 2,819.06 $ 2.780.11 FUND BALANCE JULY 1 29.426.79 21.446.56 667.21 51.542.58 46.762.47 FUND BALANCE JUNE 30 $ 31.036.18 $ 22.621.75 $ 703.71 $ 54.361.64 $ 51.542.58 See notes to the general purpose financial statements. - 32. RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 1997 EXHIBIT "K" LIABILITIES Funds Held for Othl!rs $ 642.71 $ 35.17 $ 0.00 $ 677.88 PERFORMANCE BONDS ASSETS Cash and Cash Equivalents $ 33.949.77 $ 39,363.77 $ 35.714.13 $ 37.599.41 LIABILITIES Funds Held for Oth<~rs $ 33,949.77 $ 39,363.77 $ 35.714.13 $ 37.599.41 TOTALS - AGENCY FUNDS ASSETS Cash and Cash EqlJivalents $ 34.592.48 $ 39,398.94 $ 35.714.13 $ 38.277.29 LIABILITIES Funds Held for Others $ 34.592.48 $ 39,398.94 $ 35.714.13 $ 38.277.29 See notes to the gl~neral purpose financial statements. - 33- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE "1" SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 1997 FEDERAL FUNDING AGENCY CFDA REVENUE EXPENDITURES PROGRAM/GRANT NUMBER IN PERIOD IN PERIOD Agriculture. U. S. Department of Direct Summer Food Service Program 1996 Grant . 10.559 $ 221,784.00 $ 221.784.00 1997 Grant . 10.559 173.119.00 173,119.00 Through Georgia Department of Education Food and Nutrition Program Child and Adult Care Food Program 1997 Contract 10.558 10.532.37 (2) Food Services School Breakfast Program 1997 Grant . 10.553 1,832.314.86 (2) National School Lunch Program 1997 Grant . 10.555 6,614.901.86 13,677,615.77 (3) Food Distribution Program (1) . 10.550 653,799.39 653,799.39 Through Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 1997 Contract 10.558 48,601.20 (2) Total U. S. Department of Agriculture $ 9.555,052.68 $ 14.726.318.16 Education. U. S. Department of Direct Impact Aid 1997 Grant . 84.041 $ 556,166.00 (5) Through Georgia Department of Education Safe and Drug-Free Schools 1997 Grant 84.186 209,069.91 $ 209.069.91 Elementary and Secondary Education At::!. Title I Grants to Local Educational Agencies 1996 Grant . 84.010 852,553.19 852.553.19 1997 Grant . 84.010 6,846.215.87 6.846.215.87 State Program Improvement 1997 Grant 84.218 23.572.89 23,572.89 Title II Eisenhower professional Development 1996 Grant 84.281 66,380.59 66,400.43 1997 Grant 84.281 65,437.90 65.346.12 Foreign Languages Assistance 1997 Grant 84.249 4.312.25 8,599.96 (3) Title VI Innovative Programs 1997 Grant 84.298 175,656.80 175,656.80 Goals 2000 State and Local Education Systemic Improvement Grants 1997 Grant 84.276 30,000.00 30,000.00 Individuals with Disabilities Education At::!. Part B - Special Education Flow Through 1997 Grant . 84.027 889.715.98 889,715.98 Preschool 1997 Grant 84.173 143,722.23 143.722.23 Georgia Learning Resources System 1997 Grant . 84.027 157,863.30 157,863.30 Severely Emotionally Disturbed 1997 Grant . 84.027 213,928.10 213,928.10 Special Education - Special Education Personnel Development, Title V1-D Georgia Learning Resource Center 1997 Grant 84.029 5,704.20 5,704.20 - 34- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 1997 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT FEDERAL CFDA REVENUE EXPENDITURES NUMBER IN PERIOD IN PERIOD Education, U. S. De~artment of Through Georgia Department of Education Stewart B. MC~Jnney Homeless Assistance Act Education fc,r Homeless Children and Youth 1997 Gra:lt Vocational Edl cation - Basic Grants to States High School Program Basic Grc nt 1997 (;;rant Tech-Prep Education 1997 Grallt 84.196 $ 24.180.58 $ 24.180.58 Total L. S. Department of Education 84.048 336.346.27 592,072.77 (3) 84.243 5,500.00 5,500.00 $ 10,606,326.06 $ 10,310,102.33 Justice. U.S. Department of Through Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention 1997 Grant 16.548 $ 18,716.75 $ 18.716.75 Labor. U. S. Departrr ent of Through RichmordlBurl<e Training Authority Job Training Partnership Act 08-95-20-13.245 08-95-20-31.245 08-96-20-31.245 08-96-20-13.245 Total U. S. Department of Labor 17.250 $ 44,576.04 $ 44,576.04 17.250 15.262.46 15,262.46 17.250 3,771.74 3,771.74 17.250 56.509.58 56,509.58 $ 120,119.82 $ 120.119.82 OTHER FEDERAL ASSISTANCE Defense, U. S. Department of Direct Defense Activity for Non-Traditional Support Troops to TE!8chers 1997 Grant Department of the Air Force RO.T.C. PrclQram 1997 Grant Department of the Army RO.T.C. PrclQram 1997 Grallt Department of the Navy RO.T.C. Prtgram 1997 Grant National Scienc:e Center 1997 Grant $ 94.913.56 (4) 32,899.79 (4) 138.737.87 (4) 120,209.81 (4) 13,177.50 (4) 399,938.53 (4) Total U.S. Department of Defense $ Total FI~eral Financial Assistance $ 20.700,153.84 $ 25.175,257.06 Major Programs are il:lentified by an esterisk (0) in front of the CFDA number. The Board did not prclvide Federal Assistance to any Subrecipienl (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) _ Expenditures fc,r the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 1997 National School Lunch Program. (3) Expenditures fc,r this program include State. and/or Other Funds. Expenditures a:-e not maintained by fund source. (4) Expenditures Oil this program were not maintained by fund source. (5) Funds earned (In this program do not require reporting of expenditures. See notes to the gentlral purpose financial statements. - 35- EXPENDITURES Current Instruction Support Seriices Pupil Services Improvement of Instructional Services General hdministration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Totcll Expenditures RECAP: Salaries and B,~nefits Pre-Kinderg.3rten Program Other Expenditures Instructional Technology Pre-Kinderg.3rten Program See notes to the ~Ieneral purpose financial statements. RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES LOTTERY PROGRAMS YEAR ENDED JUNE 30.1997 INSTRUCTIONAL TECHNOLOGY $ 224,363.26 $ 482,856.74 $ 707,220.00 $ $ 3,116,553.13 707,220.00 614,801.32 $ 4,438.574.45 - 37- PRE-KINDERGARTEN PROGRAM 3,258,319.47 $ 390,591.58 16.734.93 6,586.26 3.965.82 49,815.10 553.45 4,787.84 3,731,354.45 $ SCHEDULE "3" TOTAL 3,482,682.73 390,591.58 16,734.93 6,586.26 486.822.56 49,815.10 553.45 4,787.84 4,438,574.45 RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1997 FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS Minimum Expenditure Requirements (Total Allotment) $ 81,362,787.00 $ Expenditures 0:1 Combined Program Basis Salaries Operations $ 93,409,855.11 5,699,770.59 $ $ 99,109,625.70 Less: Expenditures for Media Center Programs in Excess of Total Media Allotment -1,553,431.19 Expenditures p(~r Audit $ 97,556,194.51 Amount of Undorexpenditure for Total Allotment $ 0.00 $ See notes to thE! general purpose financial statements. - 39 - SCHEDULE "4" 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 2,445,880.00 4,991.965.23 0.00 RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAl FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 1997 GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*) Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*) Grades 9 - 12 (*) High School Laboratories (*) Vocational Education Laboratories (*) Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS Regular Programs Category I (*) Category II (*) Category III (*) Category IV (*) Sub-Total- Regular Category VI (Gifted) (*) Total Special Education Programs REMEDIAL EDUCATION PROGRAM (*j Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS Salaries Operations Total Media Center Programs Total Fourteen Weighted and Media Center Programs STAFF DEVELOPMENT PROGRAMS Cost of Instruction Professional Development Total Staff Development Programs (") Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. - 40 - ALLOTMENTS FROM DEPARTMENT OF EDUCATION REQUIRED ORIGINAL % ORIGINAL MID-TERM $ 7,400.122.00 $ 6.660.109.80 $ 0.00 19.959.835.00 17,963,851.50 $ 27.359,957.00 90 $ 24,623,961.30 $ 0.00 8,900,152.00 90 8.010.136.80 14,756.528.00 90 13,280.875.20 9.132.462.00 90 8.219.215.80 695,844.00 5.660,580.00 90 5.094.522.00 3,031.088.00 90 2.727.979.20 $ 68.840.767.00 $ 61,956.690.30 $ 695,844.00 $ 6,396,317.00 $ 5,756,665.30 $ 0.00 $ 6,396,317.00 90 $ 5.756,685.30 $ 0.00 490.869.00 90 441.782.10 $ 6,887.186.00 $ 6.198.467.40 $ 0.00 $ 2,073.614.00 90 $ 1.866.252.60 $ 0.00 $ n,801,567.00 $ 70,021.410.30 $ 695,844.00 $ 2.289,702.00 575.674.00 90 $ 2.060.731.80 $ 90 518,106.60 0.00 $ 2,865.376.00 $ 2.578,838.40 $ 0.00 $ 80,666.943.00 $ 72.600.248.70 $ 695,844.00 $ 250,862.00 $ 250,862.00 $ 0.00 649.373.00 649,373.00 0.00 $ 900,235.00 100 $ 900.235.00 $ 0.00 SCHEDULE "5" AMOUNT OF UNDEREXPENDITURE TOTAL ACTUAL EXPENDITURES FOR REQUIRED REQUIRED SALARIES OPERATIONS TOTAL ALLOTMENT $ 6,660,109.80 :S 7,448,886.52 $ 186,092.51 $ 7,634,979.03 17,963.851.50 21.434.251.70 458,253.96 21.892.505.66 $ 24,623.961.30 :S 28,883,138.22 $ 644,346.47 $ 29,527,484.69 $ 0.00 8.010,136.80 10,271.897.47 557.830.44 10,829.727.91 0.00 13,280,875.20 15.766,898.25 1,960,698.00 17,727.596.25 0.00 8.915.059.80 11.593.344.28 1,134,520.19 12,727,864.47 0.00 5,094,522.00 7,832.579.24 98,725.54 7.931.304.78 0.00 2.727.979.20 4.198.586.45 403.985.22 4.602,571.67 0.00 $ 62.652.534.30 :S 78.546,443.91 $ 4.800,105.86 $ 83,346.549.77 $ 5,756,685.30 :p 433,684.91 $ 30.054.46 $ 463,739.37 2,233,029.62 36,644.43 2,269,674.05 5,129.940.77 67,698.93 5,197,639.70 651.604.75 20.423.57 672.028.32 $ 5,756,685.30 :S 8,448.260.05 $ 154,821.39 $ 8,603,081.44 0.00 441.782.10 442.295.70 14.425.85 456.721.55 0.00 $ 6.198,467.40 :S 8,890.555.75 $ 169,247.24 $ 9,059.802.99 $ 1,866,252.60 :S 2.261.853.62 $ 22,612.13 $ 2.284.465.75 0.00 $ 70.717,254.30 :S 89,698,853.28 $ 4.991,965.23 $ 94.690,818.51 $ 2,060.731.80 :p 3.711,001.83 $ 3,711,001.83 0.00 518,106.60 $ 707,805.36 707,805.36 0.00 $ 2,578,838.40 :S 3,711,001.83 $ 707,805.36 $ 4,418,807.19 $ 73.296.092.70 :P 93.409.855.11 $ 5.699,770.59 $ 99.109,625.70 $ 0.00 $ 250,862.00 $ 435,806.78 $ 435.806.78 649.373.00 474,341.23 474,341.23 $ 900.235.00 $ 910.148.01 $ 910,148.01 $ 0.00 - 41 - SECTION n COMPLIANCE AND INTERNAL CON1ROL REPORTS DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKEltS STATE AUDITOR (404) 656-2174 February 27, 1998 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond Cmmty Board of Education 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 fmancial statements of Richmond County Board of Education as of and for the year ended June 30, 1997, and have issued our report thereon dated February 27, 1998. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor'~: report on the general-purpose financial statements. Except as discussed in the following paragraph, we (:onducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We did not observe the taking of either the Federal donated commodities inventory, the purchased foods inventory or the consumable supplies inventory at June 30, 1997, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance As part of obtalning reasonable assurance about whether Richmond County Board of Education's financial statements are 1ree of material 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 of our audit and accordingly, we do not express such an opinion. The results of our tests di~;closed no instances of noncompliance that are required to be reported under Government Auditing Standards. 97YB-40 Internal Control Over Financial Reporting In planning and. performing our audit, we considered Richmond County 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: fmancial 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 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 Richmond County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the fmancial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7211-97-01. 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 fmancial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal contro:l 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 noted above is also considered to be a material weakness. This report is intended for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution of this report which is a matter of public record. Res~~ Claude L. Vickers State Auditor CLV:ds 97YB-40 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400 CLAUDE L. VICKERS STATE AUDITOR (404) 656-2174 February 27, 1998 Honorable Zell Miller, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Richmond Cmmty Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND INTER1\fAL CONTROL OVER COMPLIA..""lCE IN ACCORDANCE WITH OMB CIRCULAR A-133 Ladies and Gentlemen: Compliance We have audited the compliance of Richmond County Board of Education with the types of compliance requirements described in the u.s. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 1997. Richmond County Board of Education's major Federal programs are identified in the accompanying Summary Schedule of Auditor's Results. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Richmond County Board of Education's management. Our responsibility is to express an opinion on Richmond County Board of Education's compliance based on our audit. We conducted our audit of compliance in accordance with generally accepted auditing standards; the standards applicable to fmancial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133,Audits of States, Local Governments, and Non-Profil 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 Richmond County 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 Richmond County Board of Education's compliance with those requirements. 97SA-10 In our opinion, the Richmond County 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, 1997. Internal Control Over Compliance The management of Richmond County Board of Education is responsible for establishing and maintaining effective intemal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Richmond County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a maj'or 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 of one or more of the internal control components does not reduce to a relatively low level of risk 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 for the information of management, the Federal cognizant agency, Federal awarding agencies and pass through entities. This restriction is not intended to limit the distribution of this report which is a matter of public record. Respectfully submitted, ~~ Claude L. Vickers State Auditor CL V :ds 97SA-IO SECTION ill SUMMARY OF AUDITOR'S RESULTS RICHMOND COUNTY BOARD OF EDUCATION SUMMARY SCHEDULE OF AUDITOR'S RESULTS YEAR ENDED JUNE 30. 1997 1. Tvoe ofReoort Issued on the Financial Statements The auditor's opinion on the Richmond County Board of Education's fmancial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles. 2. ReoortabJle Conditions in Internal Control Disclosed by the Audit of the Financial Statements The l:ludit report for the Richmond County Board of Education disclosed a fmancial 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 Richmond County Board of Education disclosed no instances of noncompliance that were deemed to be material to the fmancial statements. 4. Reportable Conditions in Internal Control Over Maior Programs The audit report for the Richmond County Board of Education did not disclose any reportable condi1ions in internal control over major programs. 5. Tvoe of Report Issued on Compliance for Maior Programs The auditor's opinion on the Richmond County Board of Education's report on compliance with requir'~ments applicable to major programs was unqualified. 6, Audit Findings Reauired to be Reported by Section .51O(a) ofOMB Circular A-133 The Richmond County Board of Education's audit did not disclose audit findings required to be reportt::d by section .510(a) ofOMB Circular A-133. 7. Maior Programs Federal awards audited as major programs are as follows: 10.550 Food and Nutrition Program - Food Distribution Program 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Summer Food Service Program 84.01 0 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education 84.041 Impact Aid 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.s 9. Low Risk Auditee The Ri.chmond County Board of Education did not qualify as a low risk auditee. 97SAR -1 SECTION IV AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS roCHMONDCOUNTYBOARDOFEDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF ProOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1997 ProOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDn~G CONTROL NUMBER AND STATUS 7211-93-02 7211-93-04 7211-93-05 7211-94-01 7211-95-01 No Further Action Warranted Unresolved - See Corrective Action/Responses No Further Action Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented CORRl8:CTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number 7211-93-04 The Richmond County Board of Education does not maintain a system-wide General Fixed Assets Account Group. The Board of Education does maintain a fixed asset property listing for all State and Federal Programs, a property inventory of all the schools' equipment as well as a schedule of all buildings required for insurance purposes. Due to budgeting limitations, it is not economically feasi:ble to increase the administrative staff to expand our scope. PRIOR YEAR FEDERAL A WARDS FINDINGS AND OUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS 721 ] -93-07 721 ] -95-02 7211-95-04 7211-96-01 Partially Resolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented Partially Resolved - See Corrective ActionlResponses Previously Reported Corrective Action Implemented CORlU:CTIVE ACTIONIRESPONSES ADMINISTRATIVE REQUIREMENTS Inadl~quate Inventory Records Finding Control Number 7211-93-07 All equipment has been properly added or deleted to the inventory. We are in the process of updating prior year acquisition information and expect completion by the end of fiscal year 1998. - 1 - RICHMOND COUNTY BOARD OF EDUCA nON AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 1997 PRIOR YEAR FEDERAL A WARDS FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES ADMINISTRATIVE REQUIREMENTS Inadequate Inventory Record Finding Control Number 7211-95-04 All equipment has been added to the inventory. However, it is necessary to list purchase orders by component. We are in the process of updating this information and expect completion by the end of fiscal year 1998. - 2- SECTION V CURRENT YEAR FINDINGS AND QUESTIONED COSTS mCHMONDCOUNTYBOARDOFEDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 1997 FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Ma:mtain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-7211-97 -01 The Board 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 of the 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 inventory of land, buildings and equipment owned by the Board 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. Note: The Richmond County Board of Education was provided an opportunity to include pertinent comments from the Board's management concerning these audit findings, conclusions and recommendations. The Board has elected not to provide comments for inclusion in this report.