HomeMy WebLinkAboutAudit Report Richmond County Board of Education June30,1998
Augusta Richmond GA
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FILE NUMBER: I Lf? 4 i
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RICHMOND COUNTY
BOARD OF EDUCATION
MARY L OGLESBY
President
2083 Heckle Street
Augusta, Georgia 30904-4295
(706) 737-7200
CHARLES G. LARKE, Ed.D.
Superintendent
C. GENE SPIRES, CPA
Controller
June 1, 1999
u. S. Department of Justice
Richmond County Board of Commissioners
530 Greene Street
Augusta, 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 our organization:
CFDA
NAME OF FEDERAL PROGRAM NUMBER EXPENDITURES
1 Juvenile Delinquency Prevention and 16.548 $163,894.54
Intervention 1998 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
Commissioners.
Sincerely,
e,~
C. GENE SPIRES, CPA
Controller
CGS/smb
Enclosure
..,.i .' .....
AUDIT REPORT
roCHMONDCOUNTYBOARDOFEDUCATION
AUGUSTA, GEORGIA
YEAR ENDED JUNE 30, 1998
STATE OF GEORGIA
DEPARTMENT OF AUDITS AND ACCOUNTS
254 WASHINGTON STREET
ATLANTA, GEORGIA 30334-8400
AUDIT REPORT
RICHMOND COUNTY BOARD OF EDUCATION
AUGUSTA, GEORGIA ,
YEAR ENDED JUNE 30, 1998
RICHMOND COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -
Page
SECTION I
FINANCIAL
INDEPENDENT AUDITOR'S COMBlNED REPORT ON GENERAL PURPOSE
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
EXlllBITS
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
ADDmONAL FINANCIAL INFORMATION
COMBINING STATEMENTS
SPECIAL REVENUE FUND
E COMBINING llALANCE SHEET 24
F COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES 26
CAPITAL PROJECTS FUND
G COMBINING BALANCE SHEET 28
H COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES 29
DEBT SERVICE FUND
I COMBINING BALANCE SHEET 30
] COMBINING STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES 31
FIDUCIARY FUND TYPES
K COMBINING BALANCE SHEET 32
L COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
EXPENDABLE TRUST FUNDS 34
M COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABll..ITIES
AGENCY FUNDS 35
IDCHMOND COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -
Page
SECTION I
FINANCIAL
ADDmONAL FINANCIAL INFORMATION
SCHEDULES
1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
2 SCHEDULE OF STATE REVENUE
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
4 SCHEDULE OF EXPENDITURES
LOTIERY PROGRAMS
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
5 OVERALL
6 BY PROGRAM
36
38
40
41
43
44
SECTION n
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
SECTION ill
AUDITEE'S RESPONSE TO PIDOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE OF PIDOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV
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
:UTmF. L VICKERS
STATE AUDITOR
(404) 656-2174
March 2, 1999
Honorable Roy E. Barnes, 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 financial statements of the Richmond County Board of
Education, as of and for the year ended June 30, 1998, as listed in the table of contents. These general
purpose fmancial 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 paragraphs three and four, we conducted 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. Those standards require that we plan and
perform the audit to obtain reaso~ble 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 financial. statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the purchased foods inventory or consumable supplies inventory at
June 30, 1998, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through
alternative procedures.
Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000 Issues,
requires disclosure of certain matters regarding the year 2000 issue. Richmond County Board of Education
has included such disclosures in the significant commitments section of the Notes to the Financial Statements.
98ARL-13A
Because of the unprecedented nature of the year 2000 issue, its effects and the success of related remediation
efforts will not be fully determinable until year 2000 and thereafter. Accordingly, insufficient audit evidence
exists to support Richmond County Board of Education's disclosures with respect to the year 2000 issue made
in the Notes to the Financial Statements. Further, we do not provide assurance that Richmond County Board
of Education is or will be year 2000 ready, that Richmond County Board of Education's year 2000 remediation
efforts will be successful in whole or in part, or that parties with which Richmond Comty Board of Education
does business will be year 2000 ready.
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.
... 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 of related 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 of these 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 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 effects of such adjustments, if any, as might have been determined to be necessary had we been
able to examine sufficient evidence regarding year 2000 disclosures as discussed in the fourth paragraph and
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 Richmond County Board of Education as of June 30, 1998, and the results of its
operations for the year then ended, in conformity with generally accepted accounting p~ciples.
In accordance with Government Auditing Standards. we have also issued our report dated March 2, 1999, 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.
98ARL-13A
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 M) and the financial schedules (Schedules 1 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 of States, 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 pwpose financial statements and in
our opinion, except for the effect of adjustments, if any, on the General Fund and the Spe~ial 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 such adjustments, if any, as might have been determined to be necessary had we been able to
examine sufficient evidence regarding year 2000 disclosures as discussed in the fourth paragraph and except
for the effects of the matters referred to in the fifth paragraph, such information is fairly presented in all
material respects in relation to the general purpose financial statements taken as a whole.
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,
~,,-~,;r: d:/~
Claude L. Vickers
State Auditor
CLV:gp
98ARL-13A
RICHMOND COUNTY BOARD OF EDUCATION
NOll VJil03 dO crnvoa A.LNflOJ ONOWHJnI
EXHIBIT "A"
FIDUCIARY ACCOUNT GROUP
DEBT FUND TYPES GENERAL TOTALS
SERVICE TRUST AND LONG-TERM /Memorandum Only)
FUND AGENCY FUNDS DEBT JUNE 30. 1998 JUNE 30.1997
$ 2,840,748,03 $ 88.123.27 $ 22.553.374,11 $ 20.038,254.81
8,258,109,43 102.709,509.91 117.389.492.38
4.633.557.45 12.076,213.87 6.145,867.74
12.960,70
2,245.357.65 2,185.752.41
126,139.55 426.844.36
104,397.49 154.504,50
$ 15,532.414,91 15.532,414,91 8,262.437.74
106,547,585,09 106,547,585.09 131,687,562.26
19,228,822.61 19,228,822,61 13,138.506,39
790,713,11 790,713,11 766.929,04
$ 15.532,414.91 $ 88,123,27 $ 142.099,535,72 $ 281.914.528,30 $ 298.209,112,33
$ 881.229,93
6.555,016,15 $ 5,381.888,55
1.828,018.88 1,n6.906.40
54.418.44
2,717,790.02 6n,45O.83
982.831.07 454,106.02
12.960.70
$ 31,413.21 31,413.21 38.2n.29
$ 19.228.822.61 19.228,822.61 13.138.506.39
790.713.11 790,713,11 766.929,04
122.080,000,00 122.080.000,00 137,950,000,00
$ 31,413.21 $ 142.099.535,72 $ 155,095.834,98 $ 160.251.443,66
$ 91.78
$ 15.532,414.91 $ 15.532.414,91 6,262,437.74
1,995,939,27 2.329,313,16
2,245,357.65 2,185.752.41
126,139.55 426.844,36
104,397.49 154.504,50
87,434,038.41 109,498.327,48
2.171.869.50
333.594.28
0,00 $ 56,710,06 16.874.942.26 17.100.397.24
$ 15,532.414,91 $ 56,710,06 $ 126.818.693,32 $ 137.957.668,67
$ 15.532.414,91 $ 88.123,27 $ 142,099,535,72 $ 281,914.528,30 $ 298,209,112,33
.3.
RICHMOND COUNlY 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. 1998
GENERAL
FUND
GOVERNMENTAl FUN[
SPEC~ CAPITAL
REVENUE PROJECTS
FUND FUND
REVENUES
State Funds $ 111,580,409.16 $ 7.784,758.03 $ 474.108.01
Federal Funds 1,352.628.32 20,572.116.51
Taxes 53.960,050.38
Other Funds 3.100.827.81 3.067,490.65 4.532.711.2!
Total Revenues $ 169.993.915.67 $ 31.424.365.19 $ 5.006.819.2!
EXPENDITURES
Current
Instruction $ 111,388.423.67 $ 12.112,409.55
Support Services
Pupil Services 6.180.272.33 2,862,701.85
Improvement of Instructional SelVices 4,242.928.85 1.221.438.96
Educational Media Services 4,854,088.32 47,278.87
General Administration 1.827,349.55 273,677.63
School Administration 12,650.194.68 141,626.73
Business Administration 1.145.462.72
Maintenance and Operation of Plant 17.561,694.21 663,449.95
Student Transportation Services 7.351.137.04 19.705.54
Central Support Services 2.318,299.59
Other Support Services 193.722.38 780,453.53
Food Services Operation 6,559.45 12,491.129.78
Community SelVices Operations 239,585.10 393,361.72
Capital Outlay 763.688.24 2,232.03 $ 30.107.925.4
Debt Service
Principal 1,202.229.77 75,OOO.ll
Interest 714.995.36
Paying Agent Fees
Total Expenditures $ 172.640.631.26 $ 31.009.466,14 $ 30.182.925,o1i1
Excess of Revenues over (under) Expenditures $ -2.646.715.59 $ 414.899.05 $ -25.176.106.1
OTHER FINANCING SOURCES fUSES)
Accrued Interest on Bonds Sold
Proceeds from General Obligation Bonds
Par Value
Capital Leases $ 1.149,056.56 $ 6,218.489.~
Operating Transfers In $ 388,808.59 85,026.l
Operating Transfers Out -473,835.56 -11.959.1
Total Other Financing Sources (Uses) $ 675.221.00 $ 388,808.59 $ 6.291.557.:
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ -1,971.494.59 $ 803,707.64 $ -18,884,548:
FUND BALANCE JULY 1 (Restated - See Note 1) 17.753.771.71 3.528.356.98 110.345.656.1
Consumable Supplies Inventory - Net Change in Period 4,930.59
Food Inventory - Net Change in Period
Donated Commodities -300,704.81
Purchased Food -50.107.01
Reimbursement for Prior Year Expenditures 1,250.790.53 -1.250.790,
FUND BALANCE JUNE 30 $ 17.037,998.24 $ 3.981.252.80 $ 90.210,317,
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. 1998 JUNE 30. 1997
$ 119,839,275.19 $ 119,839,275.19 $ 116.528,515.49
21,924,744.83 21.924,744.83 20.700.153.84
$ 32.195.290.03 86.155.340,41 86,155.340.41 56.997,966.99
669.939.08 11.370.968,83 $ 3,048.42 11.374.017.25 9.004.405.70
$ 32,865.229.11 $ 239.290.329.26 $ 3.048,42 $ 239.293.3n.68 $ 203.231.042.02
$ 123.500.833.22 $ 123.500.833.22 $ 118,013.258.13
9.042.974.18 9.042.974.18 8.208.659.73
5.464,367.81 5.464.367.81 3.949.517.55
4.901.367.19 4,901,367.19 4,604.768.40
2.101.027.18 2,101.027.18 2,880.5n.54
12.791.821.41 12.791.821.41 11.790.579.95
1.145.462,72 1.145.462.72 2.923,199.06
18.225.144.16 18,225.144.16 17.278.974.36
7.370.842.58 7.370,842.58 6.802.445.67
2.318.299.59 $ 700.00 2.318,999.59 1.902.982.97
974.175,91 974,175.91 825.903.29
12.497.689.23 12,497,689.23 13.295.993.87
632.946.82 632,946.82 676.831.10
30.873,845,68 30,873,845.68 11.673.050.12
$ 15.870.000.00 17.147,229.77 17.147,229.77 3.058.303.10
7.726.632.50 8,441,627.86 8.441.627.86 4.106.691.32
10.578,48 10.578,48 10.578.48 7 .295.04
$ 23.607.210.98 $ 257.440.233,79 $ 700.00 $ 257.440.933,79 $ 211.999.031.20
$ 9.258.018.13 $ -18.149.904,53 $ 2.348,42 $ -18.147.556,11 $ -8.767,989.18
$ 407.312.74
115.000.000.00
$ 7.367.545.99 S 7,367,545.99 742.645.99
$ 11.959.04 485,794.60 485.794.60 4,681,553.91
-485.794.60 -485.794.60 -4.681.553.91
$ 11.959,04 $ 7.367.545.99 $ 7.367.545.99 $ 116.149.958.73
$ 9.269.977,17 $ -10.782.358.54 $ 2.348.42 S -10.780,010.12 $ 107,381.969.55
6.262.437,74 137.890.223.03 54.361.64 137.944,584.67 30,550,103.05
4,930.59 4,930.59 33,487.48
-300,704.81 -300,704.81 -1.687.90
-50,107.01 -50,107.01 -6,203.51
0.00
S 15.532.414,91 $ 126.761.983.26 $
56,710.06 $ 126,818.693.32 $ 137.957,668,67
- 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. 199B
EXHIBIT "C.
GENERAL FUND SPECIAL REVENUE FUND
ACTUAL ACTUAL
(BUDGET (BUDGET
BUDGET BASIS) BUDGET BASIS)
REVENUES
State Funds $ 107.212,805.60 $ 111,580,409.16 $ 8,217,232,00 $ 7,784.75B.03
Federal Funds 1.004,000.00 1.352,628.32 23.591,586.15 20,572,116.51
Taxes 53,446.n2.00 53,960,050.3B
Other Funds 1,936.612.36 3,100,827.B1 3.895,450.99 3,067,490.65
Total Revenues $ 163,600,189.96 $ 169,993,915.67 $ 35,704,269.14 $ 31,424,365,19
EXPENDITURES
Current
Instruction $ 10B,534.655.14 $ 111,3BB,423,67 $ 12,491.872.43 $ 12,112.409.55
Support Services
Pupil Services 6,196.436.37 6.180,272.33 3.793,On.86 2,B62,701.85
Improvement of Instructional Services 4,332,763.53 4,242.92B.85 1,725,205.19 1,221.438.96
Educational Media Services 4,684.646.00 4,854.0B8,32 52,007.00 47,278.87
General Administration 2,021,273.00 1,827,349.55 304.8B2.26 273,6n.63
School Administration 12,112,719.00 12.650,194.68 172,075.62 141.626.73
Business Administration 1,113,243.00 1.145,462,72
Maintenance and Operation of Plant 1B.440,417.00 17.561,694.21 729.125.31 663,449.95
Student Transportation Services 7,267,375.56 7,351,137.04 37,851.00 19.705.54
Central Support Services 2,350,383.00 2,318,299.59
Other Support Services 25,112.00 193,722.38 401,884.70 7BO,453.53
Food Services Operation 8.532.00 6,559.45 15.512,214.00 12.491,129.7f
Community Services Operations 24,300.00 239,585.10 890.660.77 393,361.7~
Capital Outlay 939,600.00 763,68B.24 2.232.0;
Debt Service 1.99B.230.00 1.917,225.13
Total Expenditures $ 170,049,685.60 $ 172,640.631.26 $ 36,110,856.14 $ 31,009,466.1.
Excess of Revenues over (under) Expenditures $ ~,449,495.64 $ -2,646,715.59 $ -406.587.00 $ 414.899.0~
OTHER FINANCING SOURCES (USES)
Other Sources $ 6,B17,325.64 $ 1,149,056.56 $ 406,287.00 $ 3B8,808.5!
Other Uses -367 ,530.00 -473,835.56
Total Other Financing Sources (Uses) $ 6,449.795.64 $ 675,221.00 $ 406.287.00 $ 3BB,BOB.5!
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 300.00 $ -1,971,494.59 $ -300.00 $ 803,707.6
FUND BALANCE JULY 1 1997 (Restated - See Note 1) 0.00 16,B91,044.n 0.00 2,947,OOB.1
Reimbursement for Prior Year Expenditures 1.250,790.53
FUND BALANCE JUNE 30.1998 $ 300.00 $ 16,170,340.71 $ -300.00 $ 3,750,715.1
The notes to the general purpose financial statements are an integral part of this statement.
-6-
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
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 fmancial 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 "school 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 fmancial statements. To conform to generally accepted accounting principles~ these accounts should
be recorded in the general purpose financial statements.
The general purpose 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:
GOVERNMENTAL 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 received primarily from the Georgia Department of Education and from the Federal government
to accomplish specific educational objectives.
/
- 7 -
RICHMOND COUNTY BOARD OF EDUCATION EXlllBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CAP IT AL 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 of resources for, and the payment
of, generallong-tenn 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 financial 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.
Roberta 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 debt outstanding, material accrued compensated absences and material capital lease
obl!gations.
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 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 (Le., revenues and otheI
financing sources) and decreases (Le., expenditures and other financing uses) in net current assets. Theil
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 liabilitie~
in the governmental funds. Other liabilities, which are not expected to be financed from available spendabl(
resources, are reported in the General Long-Term Debt Account Group.
- 8 -
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
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 (Le., when they become both measurable and available).
"Measurable" means the amount of the transaction can be detennined 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, local option sales 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 fmal 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 of the Board were employed for a one hundred and ninety day period beginning hi 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 of these 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.
Agency funds are accounted for using the modified accrual basis of accounting in recognizing assets and
liabilities.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In fiscal year 1998, Richmond County Board of Education implemented GASB Statement 31, "Accounting
and Financial Reporting for Certain Investments and for External Investment Pools". The statement requires
certain investments to be reported at fair value rather than at cost. The beginning fund balance of the General
Fund has been decreased by $13,084.00 for this change in accounting principle.
- 9-
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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 of the Board after advertisement,
the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school
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 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, 1997 (Restated)
$17,753,771.71. $ 3,528,356.98
Adjustments
Inventories - July 1, 1997
Consumable Supplies
Food
Donated Commodities
Purchased Foods
-862,726.94
Fund Balance July 1, 1997 (Budget Basis)
-426,844.36
-154.504.50
$16,891,044.77 $ 2,947,008.12
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses
-1,971,494.59 803,707.64
Reimbursement for Prior Year Expenditures
1.250.790.53
FUND BALANCE JUNE 30, 1998 (Budget Basis)
$16.170.340.71 $ 3.750.715.76
- 10-
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
, JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
INVESTMENTS
COMPOSmON OF INVESTh1ENTS
Investments made by the Board in nonparticipating interest-eaming 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. 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 of the State of Georgia.
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
- 11 -
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 Augusta-Richmond County Commission Council fixed the property tax levy for the 1997 tax year
(calendar year) on August 19, 1997 (levy date). Taxes were due on November 16, 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 Augusta-Richmond County Tax Commissioner bills
and collects the 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 to the Board.
Tax millage rates levied for the 1997 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
1.96 mills
2O..S.1 mills
SALES TAXES
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and or debt
service. Special Purpose Local Option Sales Tax collected by the State and remitted to the Board during the
fiscal year amounted to $26,579,677.70 and was recorded in the Debt Service Fund. The State will terminate
collection of this tax once an additional $123,420,322.30 has been collected or on June 30, 2002 whichever
occurs first.
INVENTORIES
CONSUMABLE SUPPLIES
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 and 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.
- 12 -
RICHMOND COUNTY BOARD OF EDUCATION EXlllBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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. 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 FUND 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 during the subsequent year.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements 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.
- 13-
RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. .
Note 2: DEPOSITS AND INVESTMENTS
COLLA TERALIZA nON 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 pledged shall be equal to not less than 110 percent of the 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,
(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 oj
Georgia, and
- 14-
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "0" ,
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 2: DEPOSITS AND INVESTMENTS
(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 $25,250,724.24. 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 Category
Bank Balance
1
2
3
$ 100,328.82
25,150,395.42
0.00
Total
$25.250.724.24
CATEGORIZATION 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.
- 15 -
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT liD"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 2: DEPOSITS AND INVESTMENTS
At June 30, 1998, the carrying value of the Board's total investments was $102,709,509.91. The investments
are classified as to risk categories as follows:
Tvoe of Investment
Carrying
Amount
Fair
Value
Total
Risk Cate20ries
2 3
$ 68,135,014.96 $
23,648,975.72
$ 762.143.00
$ 762 14300 $ 91.783.990.68 $
U. S. Government
Repurchase Agreements
Common Stock
0.00 $ 68,135,014.96 $ 68,135,014.96
23,648,975.72 23,648,975.72
762.143.00 762.143.00 .
0.00 $ 92,546,133.68 $ 92,546,133.68
Local Government
Investment Pools
10.163.376.23 10.163.376.23
Total Investments
$10270950991 $10270950991
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 (primary Liquidity Portfolio) does not provide for investment in derivatives or similar
investments. A description of the Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state
government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which
follows Standard and Poor's criteria for AAAm rated money market funds. However, Georgia Fund 1
operates in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and is considered to
be a 2a-7 like pool. The pool is not registered with the SEC as an investment company. The pool's primary
objectives are safety of capital, investment income, liquidity and diversification while maintaining principal
($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings
(net of management fees) on a monthly basis and determines participant's shares sold and redeemed based
on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which
approximates fair value. The pool does not issue any legally binding guarantees to support the value of the
shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating
and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State
of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury
obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its
agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average
maturity of Georgia Fund 1 may not exceed 60 days. Fund 6 maintains a duration of approximately one year.
The weighted average maturity for Georgia Fund 1 on June 30, 1998 was 29 days. The average investmen1
duration for Fund 6 on June 30, 1998 was .96 years.
- 16-
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D"
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 of Agriculture (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; natmal disaster and unemployment
compensation.
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions
and natural disaster. 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 established 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
Liabilitv Estimates Paid Liabilitv
1997 $ 0.00 $ 135.360.95 $ 135.360.95 $ 0.00
1998 $ 0.00 $ 133.024.04 $ 133.024.04 $ 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
Liabilitv Estimates Paid Liabilitv
1997 $ 7.884.18 $ 15.630.92 $ 20.080.26 $ 3.434.84
1998 $ 3.434.84 $ 18.274.26 $ 15.068.10 $ 6.641.00
- 17 -
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 4: RISK MANAGEMENT
The Board has purchased surety bonds to provide additional insurance coverage as follows:
Position Covered
Amount
Superintendent
Administrative Assistant
Each Principal
Business Manager
Each Bookkeeper
Each Lunchroom 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
Note 5: 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, office equipment and equipment upgrades at various schools. 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 OBLIGATION DEBT OUTSTANDING
General Obligation Bonds currently outstanding are as follows:
Puroose
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%
$10 1,000,000.00
15,185,000.00
5.895.000.00
$122.080.000.00
The changes in General Long-Term Debt during the fiscal year ended June 30, 1998, were as follows:
- 18 -
RICHMOND COUNTY BOARD OF EDUCATION EXlllBIT "D"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 5: GENERAL LONG-TERM DEBT
Capital Leases
RCPF Other
$ 12,200,000.00 $ 938,506.39 $ 766,929.04 $137,950,000.00 $151,855,435.43
Total
Balance July 1, 1997
Additions
Annual Leave Earned and
Utilized (Net)
Current Year Leases
Deductions
Payments
7,367,545.99
675.000.00
602.229,77
$ 11.52500000 $ 7.70382261 $ 790713 11 $122.08000000 $142.099.535.72
Balance June 30, 1998
Compensated
Absences
General
Obligation
Bonds
23,784.07 23,784.07
7,367,545.99
15.870.000.00 17.147.229.77
At June 30, 1998, payments due by fiscal year which includes principal and interest for these items are as
follows:
Caoital Leases
RCPF Other
Fiscal Year
Ended June 30
1999
2000
2001
2002
2003
2004 . 2008
2009.2013
2014 - 2018
2019 - 2023
2024 - 2028
$ 1,342,070.00 $
1,340,575.00
1,341,035.00
1,338,225.00
1,337,297.50
6,661,772.50
2,648,877.50
1,398,701.06 $
1,205,820.33
1,205,820.33
1,056,676.27
803,225:41
4,016,127.05
General
Obligation
Bonds
9,158,333.75
9,275,518.75
9,398,471.25
9,526,030.00
9,646,520.00
46,206,783.75
38,058,895.00
41,277,275.00
44,684,676.25
25.014.527.50
Total
Debt
$ 11,899,104.81
11,821,914.08
11,945,326.58
11,920,931.27
11,787,042.91
56,884,683.30
40,707,772.50
41,277,275.00
44,684,676.25
25.014.527.50
Deduct: Imputed Interest
4.484.852.50
$ 16,009,852.50 $ 9,686,370.45 $242.24703125 $26794325420
Total Principal and Interest
Net Present Value of Future
Minimum Lease Payments
1.982.547.84
$ 11 525 00000 $ 7 703.822.61
Note 6: ON-BEHALF PAYMENTS
The Board has recogniZed revenues and expenditures in the amount of $3,227,898.76 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 $2,542,594.37
- 19-
RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 6: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia
For Teachers Retirement System (TRS) Employer's Cost
In the amount of $207,437.39
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 $477,867.00
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.
Proiect
Unearned
Executed.
Contracts
B-97 -002
B-97 -009
B-97 -006
B-97-033
B-97-01O
B-97-035
B-97 -003
B-97 -004
B-97-005
B-97-012
B-97 -020
B-97-036
B-98-029
B-97-030
B-99-041
B-97-016
B-98-031
B-97-032
B-97-017
B-97-011, B-97-014
B-97-015
B-98-025, B-98-026, B-98-028, B-99-038,
B-99-039, B-99-040
B-97 -027
$ 9,835,806.59
270,243.50
4,794,741.99
304,215.36
337,172.50
354,140.16
4,727,439.26
2,426,349.29
2,439,978.99
3,802,036.64
3,889,883.15
232,472.94
92,357.82
92,786.46
126,454.26
1,770,856.66
1,822,714.50
51,300.72
117,993.72
651,004.33
325,929.71
118,497.80
393,634.50
- 20-
RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 7: SIGNIFICANT COMMITMENTS
Proiect
Unearned
Executed
Contracts
B-97-037
B-97-013
B-97 -001
B-97 -008
B-97-018
B-97-023
B-97 -008
B-97 -002
B-97 -008
B-97 -008
B-97 -008
CP-9718A
CP-9730
95/94S-721-049
95/94S-721-051
9804 (A)
9804 (B)
9804 (D)
9804 (F)
$ 408,292.50
3,000,730.30
162,714.01
22,600.07
300,684.49
815,208.75
472.92
2,408.99
830.73
2,921.59
97,587.10
49,000.00
161,655.80
499.83
110,377.03
30,189.00
54,000.00
62,000.00
43.811.00
$44.303.994.96
The amounts described in this note are not reflected in the general purpose financial statements. General
Obligation Bonds have already been sold to provide a funding source for these projects. Additional funds will
be provided through collection of an authorized Special Purpose Local Option Sales Tax.
At June 30, 1998, the Board did not have any outstanding contractual commitments for the purpose of making
computer systems and other electronic equipment year 2000 compliant. The year 2000 issue is the result of
shortcomings in many electronic data processing systems and other equipment that make operations beyond
year 1999 troublesome. The year 2000 issue is of primary concern for the Board's financial accounting
system, student information system, instructional computer equipment, heating and air conditioning control
equipment, telephone systems, time dependent controls, security systems, environmental systems and
elevators. The following stages have been identified as necessary to implement a year 2000 compliant
systems.
Awareness Stage - Encompasses establishing a budget and project plan for dealing with the year 2000
issue.
- 21 -
RICHMOND COUNTY BOARD OF EDUCATION EXlllBIT liD"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 7: SIGNIFICANT COMMITMENTS
Assessment Stage - The actual process of identifying all of its systems and individual components 01
the systems to check for compliance.
Remediation Stage - When changes are made to systems and equipment.
Validationffesting 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 andJOI
electronic system, not already year 2000 compliant, in order to assure that these systems will not be adversel)
affected. As of June 30, 1998, the environmental systems were detennined to be at the Awareness Stage; the
financial accounting system, student information system, instructional computer equipment, heating and ail:
conditioning control equipment, telephone systems, time dependent controls, security systems and elevators
were determined to be at the Assessment Stage.
Note 8: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review b)
grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures
which are disallowed un4er grant terms. The Board believes that such disallowances, if any, will b(
immaterial to its overall.fmancial position.
Note9: SUBSEOUENTEVENTS
In the subsequent fiscal year, the Richmond County Board of Education issued $90,115,000.00 in Genera
Obligation Refunding bonds to advance refund $101,000,000.00 of outstanding bonds. The proceeds frOD
these bonds will be used to provide for future debt service payments on a portion of the 1996 Bond issue no
scheduled to be retired by SPLOST Funds.
Note 10: ACCUMULATED EMPLOYEES' LEA VB
Administrative and other clerical personnel earn two days of vacation leave each month with a maximUD
accumulation of twenty-four days less required vacation days to be taken during the year. Maintenance anl
other twelve-month employees earn vacation leave ranging from ten days to twenty-two days per yea
depending upon the employee's length of service with a maximum accumulation of 22 days. Vacation leav
vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid 13
the current rate of pay, to employees upon retirement or termination of employment. See Note 1
Compensated Absences
- 22-
RICHMOND COUNTY BOARD OF EDUCATION EXIllBIT "0"
NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS
JUNE 30. 1998
Note 1 0: ACCUMULATED EMPLOYEES' LEAVE
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,
1998, attendance incentive liability as this amount is deemed immaterial to the general purpose financial
statements.
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 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 fmancial 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 TR.S are required by State statute to contribute 5% of their gross
earnings to TRS. The Board makes monthly employer contributions to TR.S 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 Year Contributed Contribution
1998 100% $13,417,601.86
1997 100% $12,429,937.42
1996 100% $11,423,487.55
- 23-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
. SPECIAL REVENUE FUND
JUNE 30. 1998
ASSETS
SCHOOL
FOOD
SERVICES LOTTERY FEDERAL
FUND PROGRAMS PROGRAMS
$ 4,196,255.22 $ 524,110.26
290,009.76 $ 2,757,510.67
Cash and Cash Equivalents
Accounts Receivable
Inventories
Consumable Supplies
Food
Donated Commodities
Purchased Food
126,139.55
104,397.49
Total Assets
$ 4,716,802.02 $
524,110.26 $ 2,757,510.67
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft $ 1,791,518.07
Accounts Payable $ 262,978.57 $ 115,309.58 232,013.03
Salaries Payable 682,512.40 408,800.68 733,979.57
Expired Grant Balances Payable
Total Liabilities $ 945,490.97 $ 524,110.26 $ 2,757,510.67
FUND EQUITY
Fund Balances
Reserved
For Continuation of Federal Programs
For Encumbrances
For Inventories
Consumable Supplies
Food
Donated Commodities $ 126,139.55
Purchased Food 104,397.49
Unreserved
Undesignated 3,540,n4.01 $ 0.00 $ o.oe
Total Fund Equity $ 3,n1 ,311.05 $ 0.00 $ o.oe
Total Liabilities and Fund Equity
$ 4,716,802.02 $
524,110.26 $ 2,757,510.6~
See notes to the general purpose financial statements.
- 24-
EXHIBIT "E"
OTHER ATHLETIC TOTALS
PROGRAMS FUND JUNE 30, 1998 JUNE 30, 1997
$ 0.00 $ 189,258.07 $ 4,909,623.55 $ 3,722,696.87
3,047,520.43 4,862,336.06
20,683.68 20,683.68 19,955.12
126,139.55 426,844.36
104,397.49 154,504.50
$
0.00 $
209,941.75 $ 8,208,364.70 $ 9,186,336.91
$ 1,791,518.07 $ 3,198,933.21
610,301.18 627,721.88
1,825,292.65 1,776,906.40
54,418.44
$ 4,227,111.90 $ 5,657,979.93
$ 91.78
$ 119,200.66 $ 119,200.66 135,583.70
20,683.68 20,683.68 19,955.12
126,139.55 426,844.36
104,397.49 154,504.50
$ 0.00 70,057.41 3,610,831.42 2,791,377.52
$ 0.00 $ 209,941.75 $ 3,981,252.80 $ 3,528,356.98
209,941.75 $ 8,208,364.70 $ 9,186,336.91
$
0.00 $
- 25-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30.1998
SCHOOL
FOOD
SERVICES LOTTERY FEDERAL
FUND PROGRAMS PROGRAMS
REVENUES
State Funds $ 896,580.00 $ 4,618,466.03 $ 2,106,112.00
Federal Funds 10,071,600.37 10,500,516.14
Other Funds 2,n1,On.55
Total Revenues $ .13,739,257.92 $ 4,618,466.03 $ 12,606,628.14
EXPENDITURES
Current
Instruction $ 3,874,211.10 $ 8,096,044.48
Support Services
Pupil Services 369,547.69 2,462,704.34
Improvement of Instructional Services 10,783.09 1,191,447.58
Educational Media Services 47,278.87
General Administration $ 8,472.57 289.23 264,915.83
School Administration 141,626.73
Maintenance and Operation of Plant 17,715.83 363,634.92 239,052.21
Student Transportation Services 19,705.54
Other Support Services 319,222.93
Food Services Operation 12,491,129.78
Community Services Operations 393,361.72
Capital Outlay
Total Expenditures $ 12,910,679.90 $ 4,618,466.03 $ 12,781,998.51
Excess of Revenues over (under) Expenditures $ 828,578.02 $ 0.00 $ -175,370.37
OTHER FINANCING SOURCES
Operating Transfers In 175,278.59
Excess of Revenues and Other Financing Sources
over (under) Expenditures $ 828,578.02 $ 0.00 $ -91.78
FUND BALANCE JULY 1 3,293,544.85 0.00 91.78
Food Inventory - Net Change in Period
Donated Commodities -300,704.81
Purchased Food -50,107.01
FUND BALANCE JUNE 30
$ 3,n1,311.05 $
0.00 $
0.00
See notes to the general purpose financial statements.
- 26-
EXHIBIT "F"
OTHER
PROGRAMS
ATHLETIC
FUND
TOTALS
YEAR ENDED
JUNE 30,1998 JUNE 30, 1997
$ 163,600.00
$
$ 7,784,758.03 $ 7,985,308.28
20,572,116.51 19,744,049.31
296,413.10 3,067,490.65 3,126,097.73
296,413.10 $ 31,424,365.19 $ 30,855,455.32
$ 163,600.00 $
$ 142,153.97 $ 12,112,409.55 $ 11,988,480.22
2,237.74 $ 28,212.08 2,862,701.85 2,585,731.47
19,208.29 1,221,438.96 803,417.75
47,278.87 72,715.23
273,677.63 745,061.37
141,626.73 147,115.59
43,046.99 663,449.95 775,474.13
19,705.54 105,274.95
461,230.60 780,453.53 721,357.61
12,491,129.78 13,287,531.29
393,361.72 371,492.47
2,232.03 2,232.03 138,105.60
$ 163,600.00 $ 534,721.70 $ 31,009,466.14 $ 31,741,757.68
$ 0.00 $ -238,308.60 $ 414,899.05 $ -886,302.36
213,530.00 388,808.59 395,117.21
$ 0.00 $ -24,778.60 $ 803,707.64 $ -491,185.15
,
0.00 234,720.35 3,528,356.98 4,027,433.54
-300;704.81 -1,687.90
-50,107.01 -6,203.51
$
0.00 $
209,941.75 $ 3,981,252.80 $ 3,528,356.98
- 27-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
CAPITAL PROJECTS FUND
JUNE 30.1998
EXHIBIT -G-
GEORGIA STATE
FINANCING AND
BOND INVESTMENT TOTALS
ASSETS REGULAR PROCEEDS COMMISSION JUNE 30.1998 JUNE 30. 1997
Cash and Cash Equivalents $ 248,315.12 $ 248,315.12 $ 1.453,640.01
Investments $ 91.n4.968.81 91,n4.968.81 109.799.447.n
Accounts Receivable 2.194.369.50 $ 826.475.00 3.020.844.50 382.867.00
Total Assets
$ 2.442,684.62 $ 91,n4,968.81 $
826.475.00 $ 95,044.128.43 $ 111.635,954.78
LIABILITIES AND FUND EQUITY
LIABILITIES
Total Uabilities
$ 636.664.33 $ 492.880.72 $ 1,129.545.05 $ 145,780.63
3.644.98 3.644.98
2.717,790.02 2,717,790.02 6n,450.83
982.831.07 982,831.07 454.106.02
12,960.70
$ 4.340.930,40 $ 492.880.72 $ 4.833.811.12 $ 1.290,298.18
Cash Overdraft
Accounts Payable
Contracts Payable
Retalnages Payable
Due to Other Funds
FUND EQUITY
Fund Balances
Reserved
For Purposes of Bond Issue
For Purposes of Capital Lease
For State Capital OuUay Projects
Unreserved
Undesignated
Total Fund Equity
$ 87,434.038.41 $ 87,434,038,41 $ 109,498.327.48
$ 2,171.869.50 2,171,869.50
$ 333.594.28 333,594.28
270.815.12 0,00 0.00 270.815,12 847.329,12
$ 2.442.684.62 $ 87.434.038.41 $ 333.594.28 $ 90.210.317.31 $ 110.345.656.60
Total Uabilities and Fund Equity
$ 2.442,684.62 $ 91.n4.968.81 $
826,475.00 $ 95,044.128.43 $ 111.635,954.7e
See notes to the general purpose financial statements,
- 28-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAl PROJECTS FUND
YEAR ENDED JUNE 30 1998
EXHIBIT -Ii"
GEORGIA STATE
FINANCING AND TOTAlS
BOND INVESTMENT YEAR ENDED
REGULAR PROCEEDS COMMISSION JUNE 30. 1998 JUNE 30. 1997
REVENUES
State Funds $ 30,500,00 $ 443.608,00 $ 474,108.00 $ 4,241.079.00
Other Funds 33.895,07 $ 4.498.816,22 4.532.711,29 3.250.086.35
Total Revenues $ 64.395.07 $ 4.498.816.22 $ 443.608.00 $ 5.006.819,29 $ 7.491.165,35
EXPENDITURES
Current
Support Services
Business Administration $ 1.970.300.00
Capital Outlay
Land and Land Improvements $ 819.318,82 $ 2.251,45 $ 821.570,27 237.275,71
Building and Building Improvements $ 3,648,894,33 19.796.614.07 4,744.145.64 28,189.654.04 10.185.262,04
Equipment 963.634,67 2,725,00 130.341,43 1,096,701.10
Debt Service
Principal 75.000,00 75.000,00
Total Expenditures $ 4.687.529,00 $ 20.618,857,89 $ 4,876.738,52 $ 30.182.925,41 $ 12.392.837.75
Excess of Revenues over (under) Expenditures $ -4.623.133,93 $ -16,119.841.67 $ -4,433.130,52 $ -25.176.106,12 $ -4.901.672,40
OTHER FINANCING SOURCES (USESl
Proceeds from General Obligation Bonds
Par Value $ 109.853.048,18
Capital Leases $ 6.218,489,43 $ 6.218.489,43
Operating Transfers In $ 4.766.724.80 4,766,724.80 5.502.292.70
Operating Transfers Out $ -4.693.656,87 -4.693.656,87 -1.215.856.00
Total Other Finencing Sources (Uses) $ 6.218.489,43 $ -4.693,658,87 $ 4.766.724,80 $ 6.291.557.36 $ 114.139.484,86
Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses $ 1.595.355.50 $ -20,813.498.54 $ 333.594.28 $ -18,884,548.76 $ 109.237.812,46
FUND BAlANCE JUL V 1 847.329.12 109.498.327,48 0.00 110.345,656.60 1,107.844,14
Reimbursement for Prior Vear Expenditures -1.250,790,53 -1.250.790,53
FUND BALANCE JUNE 30 $ 2.442.884,62 $ 87.434.038.41 $ 333.594,28 $ 90.210.317,31 $ 110.345.656,60
See notes to the general purpose financial statements,
- 29-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
DEBT SERVICE FUND
JUNE 30. 1998
EXHIBIT "I"
SPECIAL
PROPERTY PURPOSE
TAXES FOR LOCAL OPTION TOTALS
ASSETS BOND DEBT SALES TAX JUNE 30, 1998 JUNE 30. 1997
Cash and Cash Equivalents $ 2.633,880.50 $ 6,867.53 $ 2,640,748.03 $ 2,875,681.08 .
Investments 9,021.87 8,249,087.56 8,258,109.43 3.364.310.63
Accounts Receivable 114.776.67 4,518.780.78 4,633.557.45 22.446.03
Total Assets
$
2,757,679.04 $ 12,774,735.87 $ 15.532.414.91 $
6.262,437.74
FUND EaUITY
Fund Balances
Reserved
For Debt Service
Unreserved
Undesignated
$
2,757,679.04 $ 12,774,735.87 $ 15,532,414.91 $
6,262,437.74
0.00 0.00 0.00
0:00
Total Fund Equity
$
2,757.679.04 $ 12.774.735.87 $ 15.532,414.91 $
6.262,437.74
See notes to the general purpose financial statements.
- 30-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BAlANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30.1998
EXHIBIT. .r
SPECIAL
PROPERTY PURPOSE TOTALS
TAXES FOR LOCAL OPTION YEAR ENDED
BOND DEBT SALES TAX JUNE 30.1998 JUNE 30.1997
REVENUES
Taxes $ 5,615,612.33 $ 26,579,6n.70 $ 32,195,290.03 $ 2,796,832.80
Other Funds 350.568.40 319.370.68 669.939.08 186.615.18
Total Revenues $ 5,966.180.73 $ 26.899.048.38 $ 32.865,229.11 $ 2.983,447.98
EXPENDITURES
Debt Service
Principal $ 1.870,000.00 $ 14.000.000.00 $ 15.870.000.00 $ 1.785.000.00
Interest 7,602,319.99 124,312.51 7,726.632.50 3,358,785.83
Paying Agent Fees 10,578.48 10,578,48 7.295.04
Total Expenditures $ 9,482,898.47 $ 14.124,312.51 $ 23.607.210,98 $ 5.151..080,87
Excess of Revenues over (under) Expenditures $ -3.516,717.74 $ 12.n4.735.87 $ 9,258.018.13 $ -2,167.632,89
OTHER FINANCING SOURCES
Accrued Interest on Bonds Sold $ 407,312.74
Proceeds from General Obligation Bonds
Par Value 5.146,951.84
Operating Transfers In $ 11 ,959.04 $ 11.959.04
Total Other Financing Sources $ 11 ,959.04 $ 11 ,959.04 $ 5.554.264.58
Excess of Revenues and Other Financing Sources
over (under) Expenditures $ -3,504,758.70 $ 12,n4,735.87 $ 9,269,9n.17 $ 3.386,631.69
FUND BAlANCE JULY 1 6,262.437.74 0.00 6.262.437,74 2.875.806.05
FUND BALANCE JUNE 30
$
2.757.679.04 $ 12.n4.735.87 $ 15.532.414.91 $
6,262.437.74
See notes to the general purpose financial statements,
- 31 -
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
FIDUCIARY FUND TYPES
JUNE 30.1998
ASSETS
Cash and Cash Equivalents
LIABILITIES AND FUND EaUITY
LIABILITIES
Funds Held for Others
FUND EaUITY
Fund Balances
Unreserved
Undesignated
Total Liabilities and Fund Equity
See notes to the general purpose financial statements.
- 32-
DAVIDSON
TRUST
FUND
$
32,068.33 $
$
32,068.33 $
$
32,068.33 $
EXPENDABLE TRUSl
NORA
COXWELL
SCHOLARSHIP
FUND
23,898.31
23.898.3
23,898.3
FUNDS
ROBETTA
MCKENZIE
SCHOLARSHIP
FUND AGENCY FUNDS
$
743.43 $
$
743.43
$
743.43 $
31,413.21 $
$
31,413.21 $
0.00
31,413.21 $
EXHIBIT "K" .
TOTALS
JUNE 30, 1998 JUNE 30, 1997
88,123.27 $
92,638.93
31,413.21 $
38.2n.29
56,710.06
54,361.64
88,123.27 $
92.638.93
- 33-
RICHMOND COUNlY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 1998
EXHIBIT -L
NORA ROBETTA
DAVIDSON COXWELL MCKENZIE TOTALS
TRUST SCHOLARSHIP SCHOLARSHIP YEAR ENDED
FUND FUND FUND JUNE 30. 1998 JUNE 30. 199i
REVENUES
Other Funds $ 1.732,15 $ 1.276.55 $ 39.72 $ 3.048.42 $ 2.819.0l
EXPENDITURES
Current
Support Services
Central Support $ 700.00 $ 0.00 $ 0.00 $ 700.00 $ 0.01
Total Expend"ures $ 700.00 $ 0.00 $ 0.00 $ 700.00 $ 0.01
Excess of Revenues over (under) Expend"ures $ 1,032.15 $ 1,276.55 $ 39.72 $ 2,348.42 $ 2.819.01
FUND BALANCE JULY 1 31.036,18 22.621.75 703.71 54,361.64 51.542.5
FUND BALANCE JUNE 30
$ 32.068.33 $
23.898.30 $
743,43 $
56.710.06 $
54.361.6
See notes to the general purpose financial statements.
- 34-
RICHMOND COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
.FIDUCIARY FUND TYPE - AGENCY FUNDS
YEAR ENDED JUNE 30, 1998
LIABILITIES
Funds Held for Others
38.26 $ .
677.88 $
$
PERFORMANCE BONDS
ASSETS
Cash and Cash Equivalents
37,599.41 $
35,636.56 $
42,538.90 $
$
LIABILITIES
Funds Held for Others
37,599.41 $
35.636,56 $
42,538.90 $
$
TOTALS-AGENCY FUNDS
ASSETS
Cash and Cash Equivalents
$
38,277.29 $
35,674.82 $
42.538.90 $
LIABILITIES
Funds Held for Others
$
38.277 .29 $
35,674.82 $
42.538.90 $
See notes to the general purpose financial statements.
- 35-
0.00 $
EXHIBIT "MOO
716.14
30,697.07
30,697.07
31,413.21
31,413.21
~-;:t;.~
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 1998
SCHEDULE "1"
PASS-
THROUGH
ENTITY FEDERAl.
FUNDING AGENCY CFDA 10 REVENUE EXPENDITURES
PROGRAM/GRANT NUMBER NUMBER IN PERIOD IN PERIOD
Agriculture. U. S. Department of
Direct
Summer Food Service Program
1997 Grent 10,559 $ 205.959,00 $ 205.959.00
1998 Grant 10.559 213.591,12 213.591.12
Pass-Through From Georgia Department of Education
FoodandN~~nProgram
Food Services
School Breakfast Program
1998 Grant 10.553 NlA 1.936.115.34 (2)
National School Lunch Program
1998 Grant 10.555 NlA 6.975.799.47 11.814.683,63 (3)
Food Distribution Program (1) 10,550 NlA 676.446.15 676,446,15
Pass- Through From Office of School Readiness
Food and Nutrit~n Program
Child and Adult Care Food Program
1998 Contract 10,558 N/A 63.689.29 (2)
Total U, S, Department of Agriculture $ 10.071.600.37 $ 12.910.679,90
Education. U, S. Department of
Direct
Impact Aid
1998 Grant 84.041 $ 819.123.56 (5)
Pass- Through From Georgia Department of Education
Elementary and Secondary Education Act
TItle I
Grants to Local Educational Agencies
1997 Grant 84,010 NlA 323.497.64 $ 323.497.64
1998 Grant 84,010 NlA 6.710.313,95 6.710.313,95
Tille I!
Eisenhower Professional Development
1997 Grant 84.281 NlA 101.645.67 101.737.45
1998 Grant 84.281 N/A 124.828.64 124.828,64
Tille VI
Innovative Programs
1998 Grant 84.298 N/A 218.937,39 218.937.37
Individuals with Disabilities Education Act
Part B - Special Education
F~w Through
1998 Grant 84,027 N/A 790.705.81 790.705,81
Preschool
1998 Grant 84.173 N/A 373.839,92 373.839.92
Georgia Learning Resources System
1998 Grant 84.027 N/A 178.803,04 269.275.04 (3)
Severely Emotionally Disturbed
1998 Grant 84.027 N/A 372.711.89 2.388.351.89 (3)
Safe and Drug-Free Schools
1998 Grant 84,186 N/A 663.783.00 663.783.00
Special Education - Special Education Personnel
Development. Trtle VI-D
Georgia Learning Resource Center
1998 Grant 84,029 N/A 407,86 407.86
Stewart B. McKinney Homeless Assistance Act
Education for Homeless Children and Youth
1998 Grant 84.196 NlA 15.851,41 15.851.41
Vocational Education - Basic Grants to States
High School Program
Basic Grant
1998 Grant 84,048 N/A 347.576,54 522,855,13 (3]
Total U. S, Department of Education $ 11.042.026,32 $ 12.504.385.11
.36 -
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30.1998
SCHEDULE "1"
FUNDING AGENCY
PROGRAM/GRANT
Justice. U. S, Department of
Pass-Through From Richmond County Board of Commissioners
Juvenile Delinquency Prevention and Intervention
1998 Grant
Labor. U. S. Department of
Pass-Through From RichmoncllBurke Training Authority
Job Training Partnership Act
08-98-20-13-245
08-98-20-31-245
08-97-20-11-245
Total U. S, Department of Labor
OTHER FEDERAL ASSISTANCE
Defense. U. S. Department of
Direct
Defense Activity for Non-Traditional Support
Troops to Teachers
1998 Grant
Department of the Air Force
R.O.T,C. Program
1998 Grant
Department of the Army
R.O,T.C. Program
1998 Grant
Department of the Navy
R.O,T.C. Program
1998 Grant
National Science Center
1998 Grant
Total U, S, Department of Defense
Total Federal Financial Assistance
N/A - Not Available
CFDA
NUMBER
16.548
17.250
17.250
17.250
PASS-
THROUGH
ENTITY
10
NUMBER
N/A
.N/A
N/A
Notes to the Schedule of Exoenditures of Federal Awards
FEDERAL
REVENUE
IN PERIOD
EXPENDITURES
IN PERIOD
N/A
$
22.309,48 $
163.894.54 (3)
$
114.645.04 $
22.181,14
140.787.20
114.645,04
22.181.14
140.787,20
$
2n.613,38 $
2n.613,38
$ 198.155.86 $ 79.205.92
36.346.13 (4)
145.561.43 (4)
123.048,58 (4)
8.083.30 8.680,80
$ 511.195,30 $ 87.866,72
$
21.924.744.83 $
25.944.439.65
(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 currant fiscal year,
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained
separately and are included in the 1998 National School Lunch Program.
(3) expenditures for this program include State. anillor Other Funds,
expenditures are not maintained by fund source,
(4) expenditures on this program were not maintained by fund source,
(5) Funds eamed on this program do not require reporting of expenditures.
Major Programs are identified by an asterisk r) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the
Richmond County Board of Education and is presented on the modified accrual basis of accounting which
is the same basis of accounting used in the presentation of the general purpose financial statements,
See notes to the general purpose financial statements,
- 37-
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 1998
SCHEDULE -r
AGENCYIFUNDING
GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
GENERAL REVENUE PROJECTS
FUND FUND FUND
TOTAL
GRANTS
Education, Georgia Department of
Quality Basic Education
General and Career Education Programs
Special Education Programs
Remedial Education Program
Media Center Programs
Staff Development Programs
Indirect Cost
Pupil Transportation
Regular
Bus Replacement
Limited English Speaking
Middle School Incentive Program
Special Instructional Assistance
In-School Suspension
Counselors Grades 4 and 5
Technology Training
Local Fair Share
Educational Equalization Funding Grant
Food Services
Vocational Education
Other State Programs
Ad Valorem Tax Adjustment.
Alternative Program
At-Risk Summer School Program
Environmental Science Program
Georgia Leadership Academy
Georgia Learning Resources System
Health Insurance
Innovative Programs
Mentor Teacher Program
Pay for Performance Program
Preschool Handicapped Program
Remedial Summer School Program
Severely Emotionally Disturbed .
Teachers'Retirement
Lottery Programs
Alternative School Program
Applied Technology Labs
Instructional Technology
Georgia Peace Officers Standards and Training Council
Law Enforcement Program
$ 73,227,458.00 $ 73.227,458.00
7,321,454.00 7,321,454.00
2,548.711.00 2,548,711.00
3,020,101.00 3,020,101.00
923,776.00 923,776.00
18,922,391.00 18,922,391.00
2,305,784.00 2,305.784.00
569.142.00 569.142.00
136,472.00 136,472.00
2,499,258.00 2,499,258.00
2,624,336.00 2.624,336.00
672,659.00 672,659.00
308,082.00 308,082.00
548,005.00 548.005.00
-15.434,268.00 -15,434,268.00
6.089,205.00 6,089,205.00
$ 896,580.00 896,580.00
100.000.00 100,000.00
764,829.00 764,829.00
163.600.00 163,600.00
147,748.53 147,748.53
1,980.39 1,980.39
. 765.79 765.79
90,472.00 90,472.00
2,542,594.37 2,542,594.37
4.022.05 4,022.05
34,968.00 34,968.00
146.000.00 146,000.00
519,838.00 519,838.00
57,673.30 57 ,673.30
2,015.640.00 2,015,640.00
207,437.39 207,437.39
4.132.00 4,132.00
26.858.00 26,858.0C
979,318.00 979,318.0C
3,000.00 3,OOO.OC
$ 30,500.00 30,500.0C
241,853.00 241,853.01
Community Affairs, Georgia Department of
Governor's Emergency Funds (1)
Local Assistance Grants
Georgia State Financing and Investment
Commission
Reimbursement on Construction Projects
443,608.00
443,608.0l
.36 -
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 1998
AGENCY/FUNDING
GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
GENERAL REVENUE PROJECTS
FUND FUND FUND
GRANTS
Office of School Readiness
Pre-Kindergarten Program
$ 3,608,158.03
Office of Treasury and Fiscal Services
Public School Employees Retirement
$
4n,867.00
CONTRACTS
Education, Georgia Department of
Governor's School Leadership Institute
983.23
Office of Planning and Budget
Georgia Council for the Arts
Georgia Challenge Program
39,868.11
OTHER
Education, Georgia Department of
Special Education Administrator's Conference
Relations with Other Agencies
2,080.00
4,335.00
SCHEDULE "2"
TOTAL
$ 3,608,158.03
4n,867.00
983.23
39,868.11
2,080.00
4,335.00
(1) Purchase Equipment for Richmond County String Orchestra Program
$ 111.580,409.16 $ 7.784,758.03 $ 474,108.00 $ 119,839.275.19
See notes to the general purpose financial statements,
- 39-
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 1998
PROJECT
ORIGINAL
ESTIMATED
COST (1)
CURRENT
ESTIMATED
COST (2)
AMOUNT
EXPENDED
IN CURRENT
YEAR (3)
The general obligation debt of the district will
first be retired from the proceeds of the special
use tax. This will Include a large portion of the
bond issue of $115,000,000.00 entitled "Richmond
County General Obligation School Bond Series 1996"
and certain other previously outstanding general
Obligation bonds at an estimated cost of
$124,750,000.00. The principal and interest on these
bonds come due on May 1st and November 1st of
each year. May 1,1998 will be the first time the
principal will come due to be retired, In part, by the
sales tax.
$ 124,755,000.00 $ 124,755,000.00 $ 14,124,312.51 $
Once the application of the above funds to retirement
of debt, the school board will construct, as provided
in the election, a middle school, and/or an
elementary school, which expenditures shall include
acquiring, constructing and equipping these school
buildings. In addition. to the construction of the
middle and/or elementary school. the balance of the
special sales tax. if any, shall be utilized to renovate,
repair, improve and equip existing school buildings
and other buildings and facilities.
25,245.000.00
25.245,000.00
SCHEDULE "3"
AMOUNT
EXPENDED
IN PRIOR
YEARS
0.00
$ 150,000.000.00 $ 150.000,000.00 $ 14,124.312.51 $ 0.00
(1) The Board's original cost estimate as specified In the resolution calling for the imposition of the Local Option
Sales Tax.
(2) The Board's current estimate of total cost for each project. Includes all cost from project Inception to completion.
(3) The voters of Richmond County approved the imposition of a 1 % sales tax to fund the above projects.
See notes to the general purpose financial statements.
- 40-
EXPENDITURES
Current
Instruction
Support Services
Pupil Services
Improvement of Instructional Services
General Administration
Maintenance and Operation of Plant
Total Expenditures
RECAP:
Salaries and Benefits
PnH<indergarten Program
Other Expenditures
Altemative School Program
Applied Technology Labs
Instructional Technology
PnH<indergarten Program
See notes to the general purpose financial statements,
RICHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES
LOTTERY PROGRAMS
YEAR ENDED JUNE 30. 1998
ALTERNATIVE
SCHOOL
PROGRAM
$
4.132,00 $
$
4.132,00 $
$ 2.525,063.09
4.132,00
26.858.00
979.318,00
1.083.094,94
$ 4,618.466.03
APPLIED
TECHNOLOGY
LABS
26.858.00 $
26.858.00 $
- 41 -
INSTRUCTIONAL
TECHNOLOGY
691.108.82 $
288.209.18
979.318.00 $
PRE-KINDERGARTEN
PROGRAM
SCHEDULE -4-
TOTAL
3,152.112.28 $ 3.874.211.10
389.547.69
10.783,09
289.23
75,425,74
369.547.69
10,783.09
289.23
363.634,92
3,608,158,03 $ 4,618,466.03
RICHMOND COUNTY BOARD OF EDUCATION
. ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30. 1998
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
See notes to the general purpose financial statements.
- 43 -
FOURTEEN
WEIGHTED AND
MEDIA CENTER
PROGRAMS
$
86,117,724.00 $
$
99,334,057.95
5,142,939.67 $
$
104,476,997.62
-1,714,n1.73
$
102,762,225.89
$
0.00 $
SCHEDULE "5"
100% TEST FOR
OPERATIONS
PORTION OF
FOURTEEN
WEIGHTED
PROGRAMS
2,457,376.00
4,368,443.05
0.00
RICHMOND COUNTY BOARD OF EDUCATION
ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS
YEAR ENDED JUNE 30. 1998
ALLOTMENTS FROM DEPARTMENT OF EDUCATION
REQUIRED
ORIGINAL ~ ORIGINAL MID-TERM
GENERAL AND CAREER EDUCATION PROGRAMS
Kindergarten (*) $ 8.145.025.00 $ 7,330,522.50 $ 0.00
Grades 1 - 3 (.) 21,108,850.00 18.997.965.00
Sub- Total- K-3 $. 29,253,875.00 90 $ 26,328.487.50 $ 0.00
Grades 4 - 5 (*) 9,195,447.00 90 8.275.902.30
Grades 6 - 8 (*) 15,617,400.00 90 14,055,660.00
Grades 9 - 12 (*) 9.940.379.00 90 8.946,341.10
High School Laboratories (*) 6.097.809.00 90 5,488,028.10
Vocational Education Laboratories (*) 3,122,548.00 90 2.810,293.20
Total General and Career Education Programs $ 73.227.458.00 $ 65.904.712.20 $ 0.00
SPECIAL EDUCATION PROGRAMS
Regular Programs $ 6.930.150.00 $ 6,237,135.00 $ 0.00
Category I (*)
Category II (.)
Category III (*)
Category IV (*)
Sub-Total- Regular $ 6,930,150.00 90 $ 6,237,135.00 $ 0.00
Category VI (Gifted) (*) 391,304.00 90 352,173.60
Total Special Education Programs $ 7,321.454.00 $ 6.589,308.60 $ 0.00
REMEDIAL EDUCATION PROGRAM M $ 2;548.711.00 90 $ 2.293,839.90 $ 0.00
Total Fourteen Weighted Programs $ 83.097.623.00 $ 74,787.860.70 $ O.DC
MEDIA CENTER PROGRAMS
Salaries $ 2,440.029.00 90 $ 2.196.026.10 $ O.O(
Operations 580.072,00 90 522,064.80
Total Media Center Programs $ 3,020,101.00 $ 2,718.090.90 $ 0.01
Total Fourteen Weighted and Media Center Programs $ 86,117.724.00 $ 77,505,951.60 $ 0,01
STAFF DEVELOPMENT PROGRAMS
Cost of Instruction
$
268.350.00
$
268.350.00 $
0.0
Professional Development
655.426.00
655.'426.00
0.0
923.776.00 100 $
923.776.00 $
0.0
Total Staff Development Programs
$
(.) Identifies Fourteen Weighted Programs.
See notes to the general purpose financial statements.
- 44 -
SCHEDULE "6"
TOTAL
REQUIRED
ACTUAL EXPENDITURES
SAlARIES OPERATIONS TOTAL
AMOUNT OF
UNDEREXPENDITURE
. FOR REQUIRED
ALLOTMENT
$ 7.330,522.50 $ 8.079,392.70 $ 273,313.53 $ 8.352.706.23
18,997.965.00 22.757 .054.33 1.016.067.56 23.773,121.89
$ 26,328,487.50 $ 30.836.447.03 $ 1,289,381.09 $ 32.125,828.12 $ 0.00
8.275.902.30 10.038.919.83 471.123.89 10.510,043.72 0.00
14,055.660.00 17,244.613.50 1,153,036.93 18,397,650.43 0.00
8.946,341.10 12.105.819.88 671,583.10 12.m,402.98 0.00
5.488,028.10 7.976.728.00 130.339.62. 8.107,067.62 0.00
2,810,293.20 4.227.792.60 418,584.91 4.646.3n.51 0.00
$ 65.904,712.20 $ 82,430.320.84 $ 4.134,049.54 $ 86.564.370.38
$ 6,237,135.00
$ 706,660.00 $ 33.449.04 $ 740.109.04
2.749,727.07 21.895.28 2.771,622.35
5,354.823.82 101,000.45 5,455.824.27
768.415.73 33,112.33 801.528.06
$ 6,237.135.00 $ 9,579.626.62 $ 189,457.10 $ 9.769.083.72 0.00
352.173.60 430.490.03 17.697.67 448,187.70 0.00
$ 6.589.308,60 $ 10,010.116,65 $ 207.154.77 $ 10,217.271.42
$ 2.293.839.90 $ 2.933.244.35 $ 27,238.74 $ 2,960,483.09 0.00
$ 74.787,860.70 $ 95,373,681.84 $ 4.368.443.05 S 99.742.124.89
$ 2.196,026.10 $ 3,960,376.11 $ 3.960,376.11 0.00
522,064.80 $' 774.496,62 774,496.62 0.00
$ 2.718.090.90 $ 3.960.376.11 $ 774,496.62 $ 4,734,872.73
$ 77 ,505.951,60 $ 99,334.057.95 $ 5.142,939.67 $ 104,476,997.62 .$ 0,00
$
268.350.00
$
344.514.38 $
344,514.38
655.426.00
579.484,96
579.484,96
$
923.776,00
$
923.999.34 $
923.999.34 $
0.00
- 45 -
l'-
<-.
S~'MOdffiI 10ULNO:::> 'lVIDI3.I.NI CINV 3:::>NVIldWO:::>
II NOll:::>3S
;';l~
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214
Atlanta. Georgia 30334-8400
~LAUDE L. VICKERS
STATE AUDIlOR
(404) 656-2174
March 2, 1999
Honorable Roy E. Barnes, Governor
Members of the General Assembly
Members of the State Board of Education
and
Superintendent and Members of the
Richmond County 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 financial statements of Richmond County Board of Education as of and for the year
ended June 30, 1998, and have issued our report thereon dated March 2, 1999. This report was qualified for
certain scope limitations and various departures from generally accepted accounting principles, as identified
in the auditor's report on the general purpose financial statements. Except as discussed in paragraphs two and
three, we conducted 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 purchased foods inventory or consumable supplies inventory at
June 30, 1998, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through
alternative procedures.
We were unable to examine sufficient audit evidence regarding year 2000 disclosures as required by
Governmental Accounting Standards Board Technical Bulletin 98-1, Disclosures About Year 2000 Issues.
This bulletin requires disclosure of certain matters regarding the year 2000 issue in order for financial
statements to be prepared in conformity with generally accepted accounting principles.
ComDliance
As part of obtaining reasonable assurance about whether Richmond County Board of Education's financial
statements are free 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
98YB-40
provisions was not an objective of our 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 Government
I Auditing Standards.
Internal Control Over Financial ReDorting
I 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 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
operatiot;lthat we consider to be a reportable condition. Reportable conditions involve matters coming to our
attentiori 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 financial
statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned
Costs as items FS- 7211-98-02.
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 of performing 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 reportabl~ 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 also
considered to be a material weakness.
This report is intended for the information of management, the Federal COeni7.ant 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,
~...4~ ~..~
Claude L. Vickers
State Auditor
CLV:gp
98YB-40
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214
Atlanta, Georgia 30334-8400
LAUDE L. VICKERS
STATE AlJDIlOR
(404) 656-2174
March 2, 1999
Honorable Roy E. Barnes, Governor
Members of the General Assembly
Members of the State Board of Education
and
Superintendent and Members of the
Richmond County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM
AND INTERNAL CONTROL OVER COMPLIANCE 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, 1998.
Richmond County 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 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-I33, Audits of States, Local Governments,
and Non-Profit Organizations. Those standards and OMB Circular A-B3 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.
98SA-I0
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, 1998. .
Internal Control Over Comoliance
I The management of Richmond County 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 Richmond County
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 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 COgni7.ant 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,
~"..4 -;r: ~ ,,/
Claude L. Vickers
State Auditor
CLV:gp
98SA-I0
&LSOJ aaNOlls:mo QNV SONlaNI.:! mr"3A ~OnId O~ 3SNOdSffiI S,3:irn:anv
ill NOllJ3S
IDCHMOND COUNTY BOARD OF EDUCATION
AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
FINDING CONTROL NUMBER AND STATUS
7211-93-04
FS-7211-97-01
No Further Action Warranted
Unresolved - See Corrective Action/Responses
CORRECTIVE ACTIONIRESPONSES
GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group
Finding Control Number: FS-7211-97-01
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
feaSible to increase the administrative staff to expand our scope.
. PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
FINDING CONTROL NUMBER AND STATUS
7211-93-07
7211-95-04
Previously Reported Corrective Action Implemented
Previously Reported Corrective Action Implemented
S~SOJ oaNollsanb <INV SDNIONId
AI NOllJ3S
IDCHMONDCOUNTYBOARDOFEDUCATION
SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements
The auditor's opinion on the Richmond County Board of Education's financial statements was
qualified for various scope limitations and departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed bv the Audit of the Financial Statements
The audit report for the Richmond County Board of Education 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 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
conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Maior Programs
The auditor's opinion on the Richmond County Board of Education's report on compliance with
requirements applicable to major programs was unqualified.
6. Audit Findings Reauired to be Reported bv Section .510(a) ofOMB Circular A-133
The Richmond County Board of Education's audit did not disclose audit findings required to be
reported by section .510(a) ofOMB Circular A-133.
7. Maior Programs
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
10.559 Summer Food Service Program
8. Type "A" Program Dollar Threshold
The dollar threshold for type "A" programs was $765,124.43.
9. Low Risk Auditee
The Richmond County Board of Education was audited as a low risk auditee based on a waiver
granted by the U. S. Department of Education.
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roCHMONDCOUNTYBOARDOFEDUCATION
SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
GENERAL LEDGER
Failme to Transfer Local Matching Funds
Nonmaterial Noncompliance
Finding Control Number: FS-7211-98-0 1
The Richmond County Board of Education received approval for State capital outlay project funding, througlJ
Georgia State Financing and Investment Commission. Both the instructions in Chapter 41 of the Financial
Management for Georgia Local Units of Administration (FMGLUA) and the agreement signed by the
Richmond County Board of Education to receive this funding require that the Richmond County Board oj
Education transfer required local matching funds to the Capital Projects Fund by June 30, 1998, and designau
those funds by project name and number. This transfer was not made by the Richmond County Board oj
Education at June 30, 1998. This condition occurred because management claimed not to be aware ofth(
provisions ofFMGLUA. A correcting audit adjustment was necessary to transfer $332,667.00 from the Bone
Proceeds Fund to GSFIC Project No. 99-721-088 as required.
Management's Response:
The reason the transfer did not take place on or before June 30, 1998, was an oversight. While the applicatiOI
fo'r State funds was filed during fiscal year 1998, no construction had started. It will start in fiscal year 1999
GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group
Reportable Condition - -Material Weakness
Repeated From Prior Year
Finding Control Number: FS-7211-98-02
The Richmond County Board of Education did not maintain a system-wide General Fixed Assets AccoUD
Group within the formal accounting records as required by generally accepted accounting principles. Thi
condition results in the general purpose financial statements of the Board being incomplete and not il
accordance with generally accepted accounting principles. Appropriate action should be taken by the Boarl
to establish accounting controls and procedures to provide for the maintenance of a General Fixed Asset
Account Group. These subsidiary records should include an inventory of land, buildings, and equipmeIl
owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimate,
replacement cost, location and description. Detailed records should be maintained of all additions an
deletions to the General Fixed Assets Account Group.
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roCHMOND COUNTY BOARD OF EDUCATION
SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 1998
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
. GENERAL FIXED ASSETS
Failure to Maintain General Fixed Assets Account Group
Reportable Condition - Material Weakness
Repeated From Prior Year
Finding Control Number: FS-7211-98-02
Management's Response:
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 schools' equipment as well as a schedule of all buildings required for
insurance purposes. Due to budgeting limitations, it is not economically feasible to increase the
administrative staff to expand our scope.
ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
No matters were reported.
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CONTROLLER #10 (REV 5-99)