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Home My WebLink AboutJUVENILE DELINQUENCY PREVENTION AND INTERVENTION 2000 GRANT Augusta Richmond GA DOCUMENT NAME: '~O:J..y-d ofl' t..duCo._\-\ 0 rj DOCUMENT TYPE: Re...?O Y'T- YEAR: ~O \ BOX NUMBER: \ ~ FILE NUMBER: \ 5.'5' LD Y- NUMBER OF PAGES: (Q5 RICHMOND COUNTY , BOARD OF EDUCATION 2000 audit dist. leuer 2083 Heckle Street Augusta. Georgia 30904-4295 (706) 737-7200 ANDREW A. JEFFERSON President CHARLES G. LARKE, Ed.D. Superintendent C. GENE SPIRES, CPA Controller June 6, 2001 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, 2000. 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 requirement for States, Local Governments and Non-Profit Organizations that expend $300,000 or more in Federal financial assistance, . The "Schedule of Expenditures of FederaJ 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: ' 1-~;~~~;~~~~~l~::=~~D~T~~~ It I Juvenile Delinquency Prevention and i 16.548 i $29,542,31 I l_._._....,J.__10_~~~_~ ntig_~~...?Q~O ~~~0!........._ .."..................,... ......L..._;....__.......,........................., 1_..._.._..._.._...... --..--..---..-.....-..,......,....-----..-_,____.............'m....... 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 Controller CGS/smb Enclosure STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS I RICHMOND COUNTY BOARD OF EDUCATION AUGUSTA, GEORGIA REPORT ON AUDIT OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30,2000 Russell W. Hinton State Auditor RICHMOND COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- Page SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION- SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES ANDEXPENDABLETRUSTFUNDS \ C COMBINED .STA TEMENT 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 7 8 ADDmONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND I COMBINING BALANCE SHEET J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 24 26 28 30 32 33 RICHMOND COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION EXHffiITS COMB~GSTATEMENTS FIDUCIARY FUND TYPES K COMB~G BALANCE SHEET 34 L COMB~G STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES EXPENDABLE TRUST FUNDS 36 M COMB~G STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY ~TIS 38 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS 4 OVERALL . 5 BY PROGRAM 39 41 43 45 46 SECTION II 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 ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn OMB CIRCULAR A-133 RICHMOND COUNTY BOARD OF EDUCATION .. TABLE OF CONTENTS - SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS. SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S,w., Suite 214 Atlanta, Georgia 30334-X400 RUSSELL W. HINTON STATE AUDITOR (404) 656,2174 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 February 22,2001 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, 2000, as listed in the table of contents, These general purpose financial statements are the responsibility of the Richmond County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking ofthe consumable supplies inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories thiough alternative procedures, 2000ARL-13 oP' 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 accotint 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, 2000, a portion of salaries and the corresponding employer's cost of related benefits eained for contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, 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, 1999, were improperly recorded in the year ended June 30, 2000. 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 fuDdsare 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, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies inventory as discussed in the third 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, 2000, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. In accordance with Government Auditing Standards, we have also issued our report dated February 22, 2001, 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. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 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 5), 2000ARL-13 which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-D3, Audits oj 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 purpose financial statements and ih our opinion, except for the effect of adjustments, if any, on the General Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the consumable supplies inventory as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe 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, w_~ Rus ell W, Hinton State Auditor RWH:gp 2000ARL-13 RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT"A" FIDUCIARY ACCOUNT GROUP DEBT FUND TYPES GENERAL TOTALS SERVICE TRUST AND LONG-TERM (Memorandum Only) FUND AGENCY FUNDS DEBT JUNE 30, 2000 JUNE 30, 1999 $ 6,584,098,02 $ 97,617.84 $ 15,262,143.68 $ 19,044,831,16 2,836,61 58,908,072,50 71,392.402.45 176,943.81 12,608,524,06 10,749,576.48 3,517,317.35 3,260,766.22 142,661.14 111.585.16 127,054.25 117,746.88 $ 6,763,878,44 6,763,878.44 23,097,374,05 69.006,121.56 69,006,121.56 74,942,625.95 17,471,348.79 17,471,348.79 19,357,818.31 1.006,836.56 1.006,836,56 856,767.56 $ 6,763.878.44 $ 97,617.84 $ 94.248,185.35 $ 184.813,958,33 $ 222,931 ,494,22 $ 4,782,120.73 $ 4.462,911.02 2,259,970.51 1,899,149.57 109,156.61 74,950.34 3,226,378.47 3,421,520.53 1,864,318.79 2,651,768.70 $ 34,534.43 34,534.43 55,996.37 $ 17.471,348,79 17,471,348.79 19.357.818.31 1,006,836.56 1,006,836.56 856,767.56 75,770.000.00 75,770,000,00 98,040,000,00 $ 34,534,43 $ 94,248,185.35 $ 106.524.664,89 $ 130,820,882.40 $ 920.175,00 149.24 $ 6,763.878.44 6,763,878.44 $ 23,097.374.05 543,015.59 2,444,066.23 3,517.317.35 3,246.601.41 142,661.14 111,585.16 127.054.25 117,746.88 10,561,573.52 35,612.227.61 27,388.291.64 5,679,511.40 11.525.477.63 0.00 $ 63.083.41 22,645,665.87 15,955,532.85 $ 6,763,878,44 $ 63,083.41 $ 78,289,293.44 $ 92,110,611.82 $ 6,763,878.44 $ 97,617.84 $ 94.248,185.35 $ 184.813,958,33 $ 222.931.494.22 -3- RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 2000 GOVERNMENTAL FUND SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND REVENUES .., State Funds $ 127,294.353.10 $ 9.158.548.29 $ 4,113.378,49 Federal Funds 1,032~634.26 22.731.774.33 Taxes 60.217,713.38 27.066.461.23 Other Funds 3,718.120.82 3.433,178.66 2,617 ,298.56 Total Revenues $ 192,262.821.56 $ 35.323,501,28 $ 33.797,138.28 EXPENDITURES Current Instruction $ 119.210,057.49 $ . 14.458.253.80 Support Services Pupil Services 7.114,869.28 3.485,973.33 Improvement of Instructional Services 4,925.958.99 1,441.259.29 Educational Media Services 5.212.913,43 809.473.54 General Administration 2;031,514.21 329.097.96 School Administration 13.934.668,03. 60.787..65 Business Administration 1.270.083.75 Maintenance and Operation of Plant 20,764,769.40 542,177.96 Student Transportation Services 7.592,437.24 22.730,03 Central Support Services 2.263.834.93 Other Support Services 134.751.28 318.314.00 Food Services Operation 8.483.92 13,036,644.58 Community Services Operations 226.885.91 264,619.33 Capital Outlay 293,203.23 $ 36,635.569.65 Debt Service Principal 2.089.503.15 13.462.37 Interest 734,661.34 2,592.78 Escrow Agent Paying Agent Fees Total Expenditures $ '187,808,595.58 $ 34,785.386.62 $ 36,635,569,65 Excess of Revenues over (under) EXpenditures $ 4.454.225,98 $ 538,114,66 $ -2,838.431,37 OTHER FINANCING SOURCES (USES) Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Premium on Bonds Sold Proceeds of Refunding Bonds Par Value Payments to Bond Escrow Agent Capital Leases $ 11.496.00 Operating Transfers In $ 267.600.00 $ 213,354.77 Operating Transfers Out -~34.541.53 -146.413.24 Total Other Financing Sources (Uses) $ -323.045.53 $ 121,186.76 $ 213.354.77 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 4,131,180.45 $ 659.301.42 $ -2.625,076,60 FUND BALANCE JULY 1 17.071.847.72 4,624,193.59 47,257,530.56 Consumable Supplies Inventory - Net Change in Period 302.971.10 Food Inventory - Net Change in Period Donated Commodities 31,075.98 Pu~hased Food 9.307.37 FUND BALANCE JUNE 30 $ 21,505.999.27 $ 5,323.878.36 $ 44,632.453.96 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, 2000 . JUNE 30,1999 $ 140,566,279.88 $ 140,566,279.88 $ 127,589,805.51 23,764,408.59 23,764,408.59 21,991,830.45 $ 9,931,412.75 97,215,587.36 97,215,587.36 92,050,517.63 337 ,917 ,09 10,106,515.13 $ 3.417,51 10,109,932.64 12,036,906,91 $ 10,269,329,84 $ 271,652,790,96 $ 3.417,51 $ 271,656,208.47 $ 253,669,060.50 $ 133,668,311.29 $ 0,00 $ 133,668,311.29 $ 129,002,988.49 10,600,842.61 10,600,842.61 10,097,391.57 6,367,218.28 6,367,218.28 6,111,051.40 6,022,386,97 6,022,386.97 5,013,324.64 2,360,612,17 2,360,612,17 2,049,518.32 13,995,455.68 13,995,455,68 13,544.463.58 1,270,083.75 1,270,083.75 1,304,175,67 21,306,947.36 21,306,94 7 .36 18,660,053,41 7,615,167.27 7,615,167.27 6,784,789,99 2,263,834.93 2,263,834.93 3,861,140.27 453,065.28 453,065.28 596,375.55 13,045,128.50 13,045,128.50 12,792,717.57 491,505.24 491,505.24 515,836.71 36,928,772.88 36,928,772.88 48,945,115.79 $ 22,270,000.00 24,372,965.52 24,372,965.52 15,072,814.52 4,323,938.75 5,061,192.87 5,061,192.87 4,377,431,79 12,980,225.52 8,886.70 8,886.70 8,886.70 18,283,07 $ 26,602,825,45 $ 285,832,377.30 $ 0.00 $ 285,832,377.30 $ 291,727,697.86 $ -16,333,495.61 $ -14,179,586.34 $ 3,417.51 $ -14,176,168,83 $ -38,058,637.36 $ 313,777,14 -993,944,30 1,394,640.80 90,115,000,00 -90,515,696.50 $ 11,496.00 $ 11,496.00 2,047,092.49 480,954.77 . 480,954,77 507,278.34 -480,954.77 -480,954.77 -507,278.34 $ 11,496,00 $ 11.496,00 $ 2,360;869.63 $ -16,333,495.61 $ -14,168,090.34 $ 3,417.51 $ -14,164,672.83 $ -35,697,767.73 23,097,374.05 92,050,945.92 59,665.90 92,110,611.82 126,818,693.32 302,971.10 302,971.10 990,891.23 31,075.98 31,075.98 -14,554.39 9,307.37 9,307.37 13,349.39 $ 6,763,878.44 $ 78,226,210,03 $ 63,083,41 $ 78,289,293.44 $ 92,110,611.82 - 5- RICHMOND COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - INON.GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2000 EXHIBIT .C. The notes to the general purpose financial statements are an integral part of this statement. .7. , RICHMOND COUNTY BOARD OFEDUCA TION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note I: 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 arid to aid financial , . management by segregating,transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts, An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial 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 accepte~ 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 financial 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. - 8 - RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. CAPIT 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, general long-term principal, interest and paying agent fees. FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include: EXPENDABLE TRUST FUNDS Davidson Trust Fund - the fund used to account for the principal and earnings which may be expended to provide financial assistance to needy students of Davids on Fine Arts Magnet School. Gail Hendricks Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. N ora Coxwell Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. Robetta McKenzie Scholarship Fund - the fund used to account for the principal and earnings which may be expended to provide scholarships for selected students. AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds; governments, or individuals. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, accrued compensated absences and capital lease obligations, BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current 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 - 9- RICHMOND COUNTY BOARD OF EDUCATION EXHIDIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources, Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds, Other liabilities; which are not expected to be financed from available spendable resources, are reported in the General ~ong..Term Debt Account Group, Agency funds are purely custodial in nature and do not involve measurement~fresults of operations, Governmental' and expendable trust funds are accounted for using the .modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e:, when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernrilental grants and investment income. Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify:that compensation be paid in twelveequ~l'monthly payments beginning in September 1999 and ending in August 2000. 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, 2000, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000, Also, the State's portion ofthe compensatio.n paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures 'and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. 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. - 10- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 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 ofthe 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 ofthis 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(c), 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, 1999 $17,071,847.72 $ 4,624,193.59 Adjustments Inventories - July I, 1999 Food Donated Commodities Purchased Foods Supplies -1.858.548.76 Fund Balance July 1, 1999 (Budget Basis) $15,213,298,96 -111,585.16 -117,746.88 $ 4,394,861,55 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses 4.131.180.45 659.301.42 FUND BALANCE JUNE 30, 2000 (Budget Basis) $19.344.479.41 $ 5.054.162,97 - 11 - RICHMOND COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorize9 financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan 'associations, or insured State chartered building and loan associations, INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized . cost. Both participating interest-earning contracts and money market inyestments 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 ofthe 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 othe~ receivables disclosed from information available. Receivables are recorded when either. the asset or revenue recognition criteria has been met. Receivables - 12- RICHMOND COUNTY BOARD OF EDUCATION EXHmIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Board of Commission Council fixed the property tax levy for the 1999 tax year (calendar year) on July 20, 1999 (levy date), Taxes were due on November 30, 1999. The lien date for property taxes was January 1, 1999, Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. 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% oftaxes collected as a fee for tax collection and remits the balance to the Board, Tax millage rates levied for the 1999 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 18.71 mills 1.86 mills 20.57 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $31,068,882.27 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $62,529,381.69 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 oftextbooks.are recorded as expenditures at the time of purchase and are valued on the Combined Balance Sheet at cost (first-in, first-out). 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. - 13 - RICHMOND COUNTY BOARD OFEDUCA TION ' EXHmIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note I: 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 ornet 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 paynient 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 goyemment. The outstanding amount ofthese bonds is recorded in the General Long-Term Debt Account Group. RESERVED FUND BALANCES 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 ahd 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 inter fund 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; Operating transfers are recorded for all interfund transactions other than reimbursements. - 14- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value of the securities pledged to secure a pool of public funds shall be not less than 110 percent of the daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case of operating funds placed in demand deposit checking accounts. Acceptable security for deposits consists of anyone of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates' of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created,the.authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and - 15 - RICHMOND COUNTY BOARD OF EDUCATION EXHffiIT "D" NOTES TO THE GENEAAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 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 poth as to principal and interest or 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. CA TEGORIZA nON OF DEPOSITS At June 30, 2000, the bank balances were $38,774,905.73. The'amounts of the total bank balances are classified into three categories of credit risk: Category 1 - . Cash that isinsured (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 coliateralized with securities held by the pledging financial institution's trust department or agent in the Board's name, Category 3 - U~collateralized 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, 2000, as follows: Risk Category Bank Balance Total $ 6,600,353.05 21,174,552.68 11,000.000.00 $38.774.905.73 1 2 3 CA TEGORIZA nON OF INVESTMENTS Investments are classified as to risk by the three categories described below: Category 1 - Insured or registered, or securities held by the Board,or the Board's agent in the Board's name. Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the Board's name. Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the Board's nam,e. 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. - 16- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "0" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 2: DEPOSITS AND INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $41,408,072.50. The investments are classified as to risk categories as follows: Total Risk Categories 2 $ 1,078,612.54 $ $ 324.646,75 $ 32464675 $ 1078612.54 $ 3 Carrying Fair Amount Value 0.00 $ 1,078,612.54 $ 1,078,612,54 324.646.75 324,646.75 000 $ 1,403,259,29 $ 1,403,259.29 40.004,813.21 40.004,813.21 $41 408 072 50 $41 408072.50 Tvoe of Investment U. S. Government Common Stock Local Government Investment Pools Total Investments The carrying amounts shown above includes amounts maintained in an investment pool by the State of Georgia, Office of Treasury and Fiscal Services in which the Board owns no identifiable securities, The investment policy ofthe 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. The pool is not registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a 2a-7 like pool. 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 values 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 l}, 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. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year. - 17 - RiCHMOND COUNTY BOARD OF,EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 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 vari,ous risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The Board has obtained commercial insurance for risk 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 claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $225,000.00 loss per occurrence, up to the statutory limit. Changes in the workers' compensation claims liability during the last two fiscal years are as follows: Beginning Claims and of Year Changes in Claims End of Year Liability Estimates . Paid Liability 1999 $ 0,00 $ 140.840,57 $ 140.840.57 $ 0,00 2000 $ 0,00 $ 322.385.23 $ 322.385,23 $ 0,00 The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reaSonably estimated, Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: Beginning Claims and of Year Changes in Claims End of Year Liability Estimates Paid Liability 1999 $ 6.641,00 $ 18.950,00 $ .6.641.00 $ 18.950,00 2000 $ 18.950,00 $ 24.742,77 $ 35.643.77 $ 8.049.00 - 18 - RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 4: RISK MANAGEMENT The Board has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Superintendent Administrative Assistant Each Principal Business Manager Each Bookkeeper Each Lunchroom Manager Athletic Business Manager Note 5: GENERAL LONG-TERM DEBT Amount $ $ $ $ $ $ $ 50,000.00 10,000.00 5,000.00 5,000.00 5,000,00 3,000.00 1,000,00 ARBITRAGE REBATE TAX The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to the United States Treasury of Investment Income received at yields that exceed the issuer's tax-exempt borrowing rates. The U. S. Treasury requires payment every five years, The estimated liability of $920,175.00 at June 30,2000, is based on tax exempt debt subject to the Tax Reform Act. The estimated liability will be updated annually for any tax-exempt issuances or changes in yields through September 1,2003, at which time payment ofthe final calculated liability for the five-year period is required to be remitted. CAPITAL LEASES The Richmond County Board of Education has entered into various lease agreements as lessee for school buses, operating vehicles, office equipment, computer equipment, equipment upgrades at various schools, lighting systems, a career exploration lab and the acquisition and construction of school facilities. 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. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates General Government - Refunding'" Series 1998 -General Government - Refunding - Series 1993 General Government - Refunding - Series 1991 3.80% - 4.25% 2.50% - 4,70% 4.50% - 6.30% - 19 - Amount $58,710,000,00 12,400,000.00 4.660.000,00 $75.770.000.00 RICHMOND COUNTY BOARD OF EDUCA nON EXHffiIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 5: GENERAL LONG-TERM DEBT The changes in General Long-Term Debt during the fiscal year ended June 30, 2000, were as follows: General Capital Compensated Obligation Leases Absences Bonds Total Balance July I, 1999 $19,357,818.31 $ 856,767.56 $98,040,000.00 $118,254,585.87 Additions Capital Leases 11,496.00 11,496.00 Annual Leave Earned and Utilized (Net) 150,069.00 150,069.00 Extention of Existing Lease 205,000.00 205,000.00 Deductions Debt Retired 2,102.965.52 22.270.000.00 24.372,965.52 Balance June 30, 2000 $17471348,79 $ 1 006 836,56 $75 770000,00 $ 94248 18535 { At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows: General Fiscal Year Capital Obligation Total Ended June 30 Leases Bonds Debt 2001 $ 2,529,637.66 $31,409,680,00 $ 33,939,317.66 2002 2,296,472.50 31,420,397.50 33,716,870.00 2003 1,814,000.09 8,571,217,50 10,385,217.59 2004 1,670,650.40 2,998,460.00 4,669,110.40 2005 1,673,642,90 3,015,256.25 4,688,899,15 2006 - 2010 6,511,398.94 5,155,852.50 11,667,251.44 2011 - 2015 4,040,332.50 4,040,332.50 2016 - 2020 4,041,638.75 4,041,638.75 2021 - 2025 4.039.307.50 4.039.307,50 Total Principal and Interest $28,617,081,24 $82.570.863,75 $111.187.944.99 Deduct: Imputed Interest 11.145.732.45 Net Present Value of Future Minimum Lease Payments $17.471.348,79 Note 6: ON-BEHALF PAYMENTS The Board has recognized revenues and expenditures in the amount of $3,102,313 .88 for health inslirance and retirement contributions paid on the Board's behalf by the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$2,373,955.80 - 20- RICHMOND COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 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 $203,253.08 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$525,105.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis of significant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available: $ 117,712.50 119,032.60 132,046,00 5,332,497.58 2,579,051,91 5,318,843.64 11,441.27 65,916,75 1,870.60 745,032.47 5,043,289.42 1,132.13 5,824.14 147,491.47 16,561.94 1,055,033,86 7,702.00 291.67 12,215.59 2,479.53 4,148.46 728,505.20 57,755.73 316,62 51.391.35 $21.557.584.43 $ 5.201.297.51 Proiect Unearned Executed Contracts CP-2035 CP-2036 CP~2011 01/00S-721-038 99-721-088 00/99S- 721-106 B-97 -013-426 B-98-025-425 B-.97-003-412 B-97-017-424 B-98-035-411 B-98-029-418 B-97-006-408 B-98-030-419 B-97-001,A27 B-99-041-420 . B-97-012-415 B-98-025-425 B-97 -.002-406 B-98-025-425 B-97 -020-416 B-99-036-417 B-99':039-425 B-99-040-425 B-98-032-423 - 21 - Funding , Available From State' $ 3,193,603.00 299,400.30 1,708,294.21 RICHMOND COUNfY BOARD OF EDUCA nON EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30. 2000 Note 7: SIGNIFICANT COMMITMENTS The amounts described in this note are not reflected in the general purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The Board believes that such disallowances, if any, will be immaterial to its overall financial position. Note 9: ACCUMULATED EMPLOYEES' LEAVE Administrative and other clerical personnel earn two d~ys of vacation each month with a maximum accumulation of twenty-four days less required vacation. days., to be taken during the year. Maintenance and other twelve-month employees earn vacation leave ranging from ten days to twenty-four days per year depending upon the employee's length of service with a maximum accumulation of22 days. Vacation leave vests with the employee and unused accumulated vacation leave up to the maximum accumulation is paid at the current rate of pay, to employees upon retirement or termination of employment. See Note 1 - Compensated Absences The Board also has an attendance incentive program that provides for payments at 20% of the employee's daily rate of pay based on unused sick days. No liability has been recorded for the June 30, 2000, attendance incentive liability as this amount is deemed iI11I1laterial to the general purpose financial statements. Note 10: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: - 22- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS JUNE 30, 2000 Note 10: RETIREMENT PLANS Percentage Required Fiscal Year Contributed Contribution 2000 100% $14,016,137.79 1999 100% $14,315,192.29 1998 100% $13,417,601.86 - 23 - ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Consumable Supplies Food Donated Commodities Purchased Food Total Assets RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2000 SCHOOL FOOD SERVICES LOTTERY FEDERAL FUND PROGRAMS PROGRAMS $ 5,408,799.22 $ 363,781.80 200,969.46 227,245.03 $ 3,656,676.60 142,661.14 127,054.25 $ 5,879,484.07 $ 591,026.83 $ 3,656,676.60 Total Liabilities and Fund Equity $ 5.879,484.07 $ 591,026.83 $ 3,656,676.60 See notes to the general purpose financial statements. - 24- EXHIBIT "E" OTHER ATHLETIC TOTALS PROGRAMS FUND JUNE 30, 2000 JUNE 30, 1999 $ 320,768.51 $ 6,093,349.53 $ 5,599,838.81 $ 40,717.78 4,125,608.87 2,942,444.85 39,071.37 39,071.37 34,664.47 142,661.14 111 ,585.16 127,054.25 117,746.88 $ 40,717.78 $ 359,839.88 $ 10,527,745.16 $ 8,806,280.17 $ 39,007.89 $ 2,292,276.97 $ 1,599,786.22 613,568.93 611,073.28 2,259,970.51 1,899,149.57 38,050.39 72,077.51 $ 39,007.89 $ 5,203,866.80 $ 4,182,086.58 $ 149.24 $ 119;059.87 119,059.87 $ 158,399.00 39,071.37 39,071.37 34,664.47 142,661.14 111,585.16 . 1?7,O54.25 117,746.88 $ 1,709.89 201,708.64 4,895,882.49 4,201,798.08 $ 1,709.89 $ 359,839.88 $ 5,323,878.36 $ 4,624,193.59 $ 40,717.78 . $ 359,839.88 $ 10,527,745.16 $ 8,806,280.17 - 25- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2000 FUND BALANCE JUNE 30 $ 4,962,179.35 . $ 0.00 $ 149.24 See notes to the general purpose financial statements. . - 26- EXHIBIT "F" OTHER PROGRAMS ATHLETIC FUND TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30,1999 $ 9,158,548.29 $ 7,602,529.58 22,731,774.33 20,823,295.69 $ 107 ,590.98 $ 415,682.26 3,433,178.66 3,277,643.19 $ 107,590.98 $ 415,682.26 $ 35,323,501.28 $ 31 ,703,468.46 $ 98,942.93 $ 14,458,253.80 $ 12,009,815.90 5,509.44 $ 365,302.03 3,485,973.33 3,399,183.82 1,441,259.29 1,580,026.05 809,473.54 8,972.20 329,097.96 205,142.56 60,787.65 75,385.52 1 ,428.72 225,194.73 542,177.96 372,937.62 22,730.03 44,947.05 318,314.00 544,295.64 13,036,644.58 12,792,717.57 264,619.33 252,812.36 13,462.37 2,592.78 $ 105,881.09 $ 590,496.76 $ 34,785,386.62 $ 31 ,286,236.29 $ 1,709.89 $ -174,814.50 $ 538,114.66 $ 417,232.17 $ 57,596.00 '$ 267,600.00 $ 267!600.00 337,623.62 -146,413.24 -168,306.00 $ 267 ,600.00 $ 121,186.76 $ 226,913.62 $ 1,709.89 $ 92,785.50 $ 659,301.42 $ 644,145.79 0.00 267,054.38 4,624,193.59 3,981,252.80 31,075.98 -14,554.39 9,307.37 13,349.39 $ 1,709.89 $ 359,839.88 $ 5,323,878.36 $ 4,624,193.59 - 27- ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2000 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity See notes to the general purpose financial statements. - 28- REGULAR BOND PROCEEDS $ 81,652.40 $ 1,388,643.39 12,805,373.50 1,250.00 $ 82,902.40 $ 14,194,016.89 $ 3,183.52 1,557,839.23 1,051,245.62 $ 2,612,268.37 $ 920,175.00 10,561,573.52 100,000.00 $ 82,902.40 0.00 $ 82,902.40 $ 11,581 ,748.52 $ 82,902.40 $ 14,194,016.89 EXHIBIT "G" GEORGIA STATE SPECIAL FINANCING AND PURPOSE INVESTMENT LOCAL OPTION TOTALS COMMISSION SALES TAX JUNE 30, 2000 JUNE 30, 1999 $ 94,819.26 $ 1,565,115.05 $ 11,739,448.24 $ 7,166,210.84 22,325,632.73 42,297,217.07 53,312,556.06 921,571.43 4,941,181.19 5,864,002.62 1,250.00 $ 8,087,782.27 $ 27,361,633.18 $ 49,726,334.74 $ 65,053,254.30 $ 11,673,477.14 $ 3,183.52 48,957.37 $ 1,601,126.60 $ 67,412.64 3,226,378.47 3,421,520.53 807,144.27 5,928.90 1,864,318.79 2,651,768.70 $ 2,408,270.87 $ 73,341.54 $ 5,093,880.78 $ 17,795,723.74 $ 920,175.00 10,561,573.52 $ 35,612,227.61 $ 27,288,291.64 27,388,291.64 $ 5,679,511.40 5,679,511.40 11,525,477.63 0.00 0.00 82,902.40 119,825.32 $ 5,679,511.40 $ 27,288,291.64 $ 44,632,453.96 $ 47,257,530.56 $ 8,087,782.27 $ 27,361,633.18 $ 49,726,334.74 $ 65,053,254.30 - 29- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2000 BOND REGULAR PROCEEDS REVENUES State Funds $ 0.00 Taxes Other Funds $ 1 ,974,427.75 Total Revenues $ 0.00 $ 1,974,427.75 EXPENDITURES Capital Outlay Land and Land Improvements $ 111,323.14 Building and Building Improvements $ 114,567.90 23,884,342.55 Equipment 64,990.78 2,281,025.25 Total Expenditures $ 179,558.68 $ 26,276,690.94 Excess of Revenues over (under) Expenditures $ -179,558.68 $ -24,302,263.19 OTHER FINANCING SOURCES (USES) Operating Transfers In $ 142,635.76 $ 271,784.10 Operating Transfers Out Total Other Financing Sources (Uses) $ 142,635.76 $ 271,784.10 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -36,922.92 $ -24,030,4 79.09 FUND BALANCE JULY 1 119,825.32 35,612,227.61 Residual Equity Transfer FUND BALANCE JUNE 30 $ 82,902.40 $ 11,581,748.52 See notes to the general purpose financial statements. - 30- EXHIBIT "H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30, 1999 $ 4,113,378.49 $ 4,113,378.49 $ 2,500.00 $ 27,066,461.23 27,066,461.23 642,870.81 2,617,298.56 5,590,548.69 $ 4,113,378.49 $ 27,709,332.04 $ 33,797,138.28 $ 5,593,048.69 $ 692,321.71 $ 803,644.85 $ 116,266.31 9,267,023.01 $ 219,975.31 33,485,908.77 47,781,830.36 2,346,016.03 779,441.38 $ 9,959,344.72 $ 219,975.31 $ 36,635,569.65 $ 48,677,538.05 . $ -5,845,966.23 $ 27,489,356.73 $ -2,838,431.37 $ -43,084,489.36 $ 414,419.86 $ 11,727,726.55 $ -201,065.09 -201,065.09 -11,558,071.83 $ -201,065.09 $ 213,354.77 $ 169,654.72 $ -5,845,966.23 $ 27,288,291.64 $ -2,625,076.60 $ -42,914,834.64 11,525,477.63 0.00 47,257,530.56 90,210,317.31 -37,952.11 $ 5.679,511.40 $ 27,288,291.64 $ 44,632,453.96 $ 47,257,530.56 - 31 - RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2000 EXHIBIT "I" ASSETS SPECIAL PROPERTY PURPOSE TAXES FOR LOCAL OPTION TOTALS BOND DEBT SALES TAX JUNE 30, 2000 JUNE 30, 1999 $ 6,584,098.02 $ 0.00 $ 6,584,098.02 $ 3,579,651.60 2,836.61 2,836.61 14,641,532.74 176,943.81 176,943.81 4,876,189.71 Cash and Cash Equivalents Investments Accounts Receivable Total Assets $ 6,763,878.44 $ 0.00 $ 6,763,878.44 $ 23,097,374.05 FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undesignated $ 6,763,878.44 $ 6,763,878.44 $ 23,097,374.05 0.00 $ 0.00 0.00 0.00 Total Fund Equity $ 6,763,878.44 $ 0.00 $ 6.763,878.44 $ 23,097.374.05 See notes to the general purpose financial statements. - 32- RICHMOND COUNTY BOARD OF EDUCATION EXHIBIT "J" COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30. 2000 SPECIAL PROPERTY PURPOSE TOTALS TAXES FOR LOCAL OPTION YEAR ENDED BOND DEBT SALES TAX JUNE 30. 2000 JUNE 30.1999 REVENUES Taxes $ 5,928,991.71 $ 4.002,421.04 $ 9.931,412.75 $ 35.727.173.39 Other Funds 337 ,917 .09 337 .917 .09 1,089.217.68 Total Revenues $ 6.266,908.80 $ 4,002,421.04 $ 10.269.329.84 $ 36.816.391.07 EXPENDITURES Debt Service Principal $ 2,060,000.00 $ 20,210,000.00 $ 22,270.000.00 $ 13,155.000.00 Interest .1.216,348.75 3.107.590.00 4,323,938.75 . 3,415,700.48 Escrow Agent 12.980.225.52 Paying Agent Fees 8.886.70 8,886.70 14.283.07 Total Expenditures $ 3.285.235.45 $ 23.317.590.00 $ 26.602.825.45 $ 29.565.209.07 Excess of Revenues over (under) Expenditures $ 2.981.673.35 $ -19.315.168.96 $ -16.333,495.61 $ 7,251.182.00 OTHER FINANCING SOURCES (USESl Accrued Interest on Bonds Sold $ 313.777.14 Refunding Bond Issuance Cost -993,944.30 Premium on Bonds Sold 1,394.640.80 Proceeds of Refunding Bonds Par Value 90.115.000.00 Payments to Bond Escrow Agent -90.515.696.50 Total Other Financing Sources (Uses) $ 313,777.14 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ 2,981,673.35 $ -19.315.168.96 $ -16,333,495.61 $ 7,564,959.14 FUND BALANCE JULY 1 3.782.205.09 19,315.168.96 23,097,374.05 15.532.414.91 FUND BALANCE JUNE 30 $ 6.763.878.44 $ 0.00 $ 6.763.878.44 $ 23,097.374.05 See notes to the general purpose financial statements. - 33- RICHMOND COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2000 ASSETS Cash and Cash Equivalents LIABILITIES AND FUND EQUITY LIABILITIES Funds Held for Others FUND EQUITY Fund Balances Unreserved U ndesig nated Total Liabilities and Fund Equity DAVIDSON TRUST FUND $ 35.554.43 $ $ 35,554.43 $ $ 35,554.43 $ See notes to the general purpose financial statements. - 34- EXPENDABLE TRUST FUNDS GAIL NORA HENDRICKS COXWELL SCHOLARSHIP SCHOLARSHIP FUND FUND . 100.00 $ 26,601.46 100.00 $ 26,601.46 100.00 $ 26,601.46 ROBETT A MCKENZIE SCHOLARSHIP FUND $ 827.52 $ $ 827.52 $ 827.52 $ AGENCY FUNDS 34,534.43 $ $ 34,534.43 $ 0.00 34,534.43 $ EXHIBIT "K" TOTALS JUNE 30, 2000 JUNE 30, 1999 97,617.84 $ 115,662.27 34,534.43 $ 55,996.37 63,083.41 59,665.90 97,617.84 $ 115,662.27 - 35- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2000 GAIL NORA DAVIDSON HENDRICKS COXWELL TRUST SCHOLARSHIP SCHOLARSHIP FUND FUND FUND REVENUES Other Funds $ 1 ,814.63 $ 100.00 $ 1 ,457.53 EXPENDITURES None Recorded $ 0.00 $ 0.00 $ 0.00 Excess of Revenues over (under) Expenditures $ 1,814.63 $ 100.00 $ 1.457.53 FUND BALANCE JULY 1 33,739.80 0.00 25.143.93 FUND BALANCE JUNE 30 $ 35.554.43 $ 100.00 $ 26,601.46 See notes to the general purpose financial statements. - 36- ROBETTA MCKENZIE SCHOLARSHIP FUND $ 45.35 $ $ 0.00 $ $ 45.35 $ 782.17 $ 827.52 $ EXHIBIT "L" TOTALS YEAR ENDED JUNE 30, 2000 JUNE 30.1999 3,417.51 $ 0.00 $ 2,955.84 0.00 2,955.84 3,417.51 $ 59,665.90 63,083.41 $ 56,710.06 59,665.90 - 37- RICHMOND COUNTY BOARD OF EDUCATION COMBINING STATEMENTOF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30. 2000 EXHIBIT "M" BALANCE BALANCE JUL Y 1, 1999 ADDITIONS DEDUCTIONS JUNE 30. 2000 COHEN. COLONEL CLARENCE H.. R.OTC. AWARD FUND ASSETS Cash and Cash Equivalents $ 753.47 $ 43.07 $ 0.00 $ 796.54 LIABILITIES Funds Held for Others $ 753.47 $ 43.07 $ 0.00 $ 796.54 PERFORMANCE BONDS ASSETS Cash and Cash Equivalents $ 55,242.90 $ 46,569.22 $ 68,074.23 $ 33,737.89 LIABILITIES Funds Held for Others $ 55.242.90 $ 46.569.22 $ 68,074.23 $ 33.737.89 TOTALS - AGENCY FUNDS ASSETS Cash and Cash Equivalents $ 55,996.37 $ 46.612.29 $ 68,074.23 $ 34,534.43 LIABILITIES Funds Held for Others $ 55,996.37 $ 46,612.29 $ 68,074.23 $ 34,534.43 See notes to the general purpose financial statements. - 38- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE "1" SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 PASS- THROUGH ENTITY FEDERAL FUNDING AGENCY CFDA ID REVENUE EXPENDITURES PROGRAM/GRANT NUMBER NUMBER IN PERIOD IN PERIOD Agriculture. U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program 10.553 N/A $ 1.917.704.59 (2) National School Lunch Program 10.555 N/A 7.188,913.15 $ 13,358.995.43 (3) Pass-Through From Office of School Readiness Summer Food Service Program for Children 10.559 N/A 386.074.00 386.074.00 Total Child Nutrition Cluster $ 9,492.691.74 $ 13.745.069.43 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Nutrition Education and Training Program 10.564 N/A 2.607.20 2.607.20 Food DistributionProgram (1) 10.550 N/A 617.323.19 617.323.19 Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program 10.558 NlA 56.625.91 (2) Total U. S. Department of Agriculture $ 10.169.248.04 $ 14.364.999.82 Education. U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Grant 84.173 NlA $ 39.421.89 $ 39,421.89 Flow Through " 84.027 N/A 1,421.889.74 1,421.889.74 Georgia Leaming Resources System . 84.027 N/A 136,604.15 235.827.15 (3) Preschool . 84.173 NlA 130,489.00 130,489.00 Severely Emotionally Disturbed . 84.027 N/A 176,508.99 2.346.957.58 (3) Total Special Education Cluster $ 1.904,913.77 $ 4.174,585.36 Other Programs Direct Impact Aid 84.041 715.546.31 (5) Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration Project 84.332 NlA 129,285.23 129.135.99 Elementary and Secondary Education Act TiUe I Grants to Local Educational Agencies . 84.010 NlA 7,792.968.74 7,792,968.74 TiUe II Eisenhower Professional Development 84.281 NlA 151,431.78 151,431.78 TiUe III Technology Literacy Challenge Fund Grants 84.318 NlA 105.256.37 105.256.37 nUe VI Innovative Education Program Strategies 84.298 NlA 346,350.59 346.350.59 Class Size Reduction . 84.340 NlA 1.038.998.05 1,038.998.05 Georgia Learning Resources System Individuals with Disabilities Education Act Special Education Part 0 Personnel Development and Parent Training 84.029 NlA 814.87 814.87 Safe and Drug-Free Schools and Communities 84.186 NlA 487.727.37 487,727.37 Stewart B. McKinney Homeless Assistance Act Education for Homeless Children and Youth 84.196 NlA 10,525.72 10.525.72 Vocational Education - Basic Grants to States High School Program Basic Grant 84.048 NlA .328.513.04 1,201.279.60 (3) Total U. S. Department of Education $ 13.012.331.84 $ 15,439.074.44 - 39. RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2000 SCHEDULE "1" PASS- THROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER Justice, U. S. Department of Pass-Through From Richmond County Board of Commissioners Juvenile Delinquency Prevention and Intervention 16.548 NlA $ 29.542.31 $ 29.542.31 Labor. U. S. Department of Pass-Through From RichmondlBurke Job Training Authority Job Training Partnership Act 08-98-20-11-245 08-00-20-11-245 227.518.25 $ 8.080.20 227,518.25 8.080.20 17 .250 17 .250 N/A NlA $ Total U. S. Department of Labor $ 235.598.45 $ 235.598.45 OTHER FEDERAL ASSISTANCE Defense. U. S. Department of Direct Defense Activity for Non-Traditional Support Troops to Teachers . Department of the Air Force ROTC. Program Department of the Army ROTC. Program Department of the Marines R.O.T.C. Program Department of the Navy RO.T.C. Program National Science Center $ -11.272.99 (4) 38,415.81 (4) 148,929.56 (4) 51.085.41 (4) 89.930.16 (4) 600.00 $ 600.00 317.687.95 $ 600.00 Total U. S. Department of Defense $ Total Federal Financial Assistance $ 23.764.408.59 $ 30.069,815.02 N/A = Not Available Notes to the Schedule of Exoenditures of Federal Awards (1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are induded in the 2000 National School Lunch Program. (3) Expenditures for this program indude State. and/or Other Funds. Expenditures are not maintained by fund source. (4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. Major Programs are identified by an asterisk n in front of the CFDA number. The Board did not provide Federal Assistance to any Subrecipienl. The accompanying schedule of expenditures of Federal awards includes the Federal 9rant acti0ty of the Richmond County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accountin9 used in the presentation of the general purpose financial statements. See notes to the general purpose financial statements. -40 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000 AGENCY/FUNDING 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 Students Program Middle School Incentive Program Special Instructional Assistance In-School Suspension Counselors Technology Specialist Local Five Mill Share Educational Equalization Fonnula Food Services Vocational Education Other State Programs Altemative Program At-.Risk Summer School Program Environmental Science Program Georgia Leaming Resources System Health Insurance Innovative Programs Mentor Teachers Pay for Perfonnance Preschool Handicapped Program Remedial Summer School Severely Emotionally Disturbed Teachers' Retirement Year 2000 Project Funding Lottery Programs Applied Technology Labs Assistive Technology Computers in the Classroom Georgia Department of Community Affairs Local Assistance Grants Georgia Public Safety Training Center Law Enforcement Training Center Georgia State Financing and Investment Commission Reimbursement on Construction Projects Office of School Readiness Pre-Kindergarten Progra'm Office of Treasury and Fiscal Services Public School Employees Retirement SCHEDULE "2" GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND GENERAL FUND TOTAL $ 81.464.158.00 $ 81,464.158.00 9,899,955.00 9.899.955.00 2.514,450.00 2.514,450.00 3,408,161.00 3,408.161.00 907.581.00 907,581.00 19.896.975.00 19.896.975.00 2,414.894.00 2,414.894.00 566.214.00 566.214.00 177.152.00 177.152.00 2.675.535.00 2.675,535.00 2,128.981.00 2.128.981.00 640.054.00 640.054.00 352,532.00 352,532.00 548,005.00 548.005.00 -16,614.884.00 -16.614.884.00 9,514,589.00 9,514,589.00 $ 990.912.00 990.912.00 872.766.56 872.766.56 772,838.00 772.838.00 162,657.17 162.657.17 2,954.64 2.954.64 99.223.00 99.223.00 2.373.955.80 2,373,955.80 4.086.31 4,086.31 29.322.00 29.322.00 493.418.98 493.418.98 521,172.00 521.172.00 52,727.48 52.727.48 2.170.448.59 2.170,448.59 203.253.08 203.253.08 311.404.47 311.404.47 400.000.00 400,000.00 77.310.38 77.310.38 809,343.59 .809.343.59 98.591.81 98,591.81 266.697.00 266.697.00 $ 4,113,378.49 4,113.378.49 3.738.544.17 3,738,544.17 525.105.00 525,105.00 - 41 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2000 AGENCY/FUNDING CONTRACTS Education. Georgia Department of After school programs - Grades 4-8 Reading First Program - Grades K-3 1999 Georgia Teacher of the Year Award Office of Planning and Budget Georgia Council for the Arts Georgia Challenge Program OTHER Education, Georgia Department of Special Education Administrator's Conference See notes to the general purpose financial statements. GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 260,946.07 659,449.01 23,211.00 37,711.28 500.00 SCHEDULE "2" TOTAL $ 260,946.07 659,449.01 23.211.00 37.711.28 500.00 $ 127,294,353.10 $ 9.158,548.29 $ 4,113,378.49 $ 140.566.279.88 - 42- RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2000 PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) 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. AMOUNT EXPENDED IN CURRENT YEAR (3) SCHEDULE "3" AMOUNT EXPENDED IN PRIOR YEARS $ 124.755,000.00 $ 124,755.000.00 $ 23.317.590.00 $ 37,866.676.78 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 elemlllntary school, which expenditures shall include acquiring. conStructin9 and equippin9 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 25,245,000.00 509,481.14 $ 150.000,000.00 $ 150.000.000.00 $ 23,827.071.14 $ 37,866.676.78 (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 the projects. 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 and retire associated debt. Amounts expended for these projects may include sales tax proceeds. state. local property taxes and/or other funds over the life of the projects. See notes to the general purpose financial statements. - 43- RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 FOURTEEN WEIGHTED AND MEDIA CENTER PROGRAMS Minimum Expenditure Requirements (Total Allotment) 97,286,724.00 $ $ Expenditures on Combined Program Basis Salaries Operations $ 106.942,975.75 4,455,882.51 $ $ 111,398,858.26 Less: Expenditures for Media Center Programs in Excess of Total Media Allotment -1,696,398.47 Expenditures per Audit $ 109,702,459.79 Amount of Underexpenditure for Total Allotment $ 0.00 $ See notes to th~ general purpose financial statements. - 45 - SCHEDULE "4" 100% TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS 2,847.934.00 3,707,371.26 0.00 RICHMOND COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30. 2000 ALLOTMENTS FROM GEORGIA DEPARTMENT OF REQUIRED ORIGINAL ~ ORIGINAL MID-TERM GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten n $ 8.503.870.00 $ 7,653.483.00 $ 0.00 Grades 1 - 3 (') 23.508.796.00 21.157.916.40 Sub-Total - K-3 $ 32,012,666.00 90 $ 28.811.399.40 $ 0.00 Grades 4 - 5 n 10,523.266.00 90 9,470.939.40 Grades 6 - 8 (') 17,223.142.00 90 15.500.827.80 Grades 9 - 12 n 11,166,726.00 90 10,050,053.40 High School Laboratories n 6,899.868.00 90 6.209.881.20 Vocational Education Laboratories (') 3,638.490.00 90 3.274.641.00 Total General and Career Education Programs $ 81,464.158.00 $ 73.317.742.20 $ 0.00 SPECIAL EDUCATION PROGRAMS Regular Programs $ 9.367,426.00 $ 8.430.683.40 $ 0.00 Category I n Category II n Category III n Category IV (') Sub- Total- Regular $ 9,367,426.00 90 $ 8.430,683.40 $ 0.00 Category VI (Gifted) (') 532.529.00 90 479.276.10 Total Special Education Programs $ 9.899.955.00 $ 8.909.959.50 $ 0.00 REMEDIAL EDUCATION PROGRAM {'j $ 2.514,450.00 90 $ 2.263,005.00 $ 0.00 Total Fourteen Weighted Programs $ 93.878.563.00 $ 84.490.706.70 $ 0.00 MEDIA CENTER PROGRAMS Salaries $ 2.722.659.00 90 $ 2,450.393.10 $ 0.00 Operations 685.502.00 100 685.502.00 Total Media Center Programs $ 3,408,161.00 $ 3,135.895.10 $ 0.00. Total Fourteen Weighted and Media Center Programs $ 97.286,724.00 $ 87.626.601.80 $ 0.00 STAFF DEVELOPMENT PROGRAMS 294.932.00$ 612,649.00 294.932.00 $ 612.649.00 0.00 0.00 Cost of Instruction Professional Development $ Total Staff Development Programs $ 907.581.00 100 $ 907.581.00 $ 0.00 n Identifies Fourteen Weighted Programs. See notes to the general purpose financial statements. - 46 - SCHEDULE "5" EDUCATION TOTAL REQUIRED ACTUAL EXPENDITURES SALARIES OPERATIONS TOTAL AMOUNT OF UNDEREXPENDITURE FOR REQUIRED ALLOTMENT $ 7,653,483.00 $ 8,361,596.75 $ 140,657.92 $ 8,502,254.67 21.157.916.40 22.768.628.28 700.318.05 23,468.946.33 $ 28,811,399.40 $ 31.130,225.03 $ 840,975.97 $ 31,971.201.00 $ 0.00 9,470,939.40 11,019,604.63 470,966.72 11,490.571.35 0.00 15.500,827.80 18,027,112.22 684,524.51 18,711.636.73 0.00 10,050,053.40 13.609,309.71 1.064,083.85 14,673.393.56 0.00 6.209,881.20 9,121,496.23 34,802.83 9,156,299.06 0.00 3.274.641.00 4.441.853.97 410.888.89 4,852.742.86 0.00 $ 73.317.742.20 $ 87.349.601.79 $ 3.506,242.77 $ 90,855,844.56 $ 8,430.683.40 $ 1.158,353.21 $ 37,214.11 $ 1 ,195.567.32 3.393.646.11 24,329.09 3,417.975.20 5.946.958.04 57,265.55 6.004.223.59 837.167.86 47,130.62 884,298.48 $ 8,430.683.40 $ 11,336,125.22 $ 165.939.37 $ 11.502.064.59 0.00 479.276.10 476.476.66 12.331.25 488.807.91 0.00 $ 8.909,959.50 $ 11.812.601.88 $ 178.270.62 $ 11.990.872.50 $ 2,263.005.00 $ 3,424.723.86 $ 22.857.87 $ 3.447.581.73 0.00 $ 84,490,706.70 $ 102,586.927.53 $ 3.707.371.26 $ 106.294,298.79 $ 2.450,393.10 $ 4,356,048.22 $ 4,356,048.22 0.00 685,502.00 $ 748.511.25 748.511.25 0.00 $ 3.135.895.10 $ 4,356,048.22 $ 748.511.25 $ 5,104.559.47 $ 87.626.601.80 $ 106.942.975.75 $ 4,455.882.51 $ 111,398.858.26 $ 0.00 522.069.69 $ 470.205.48 522,069.69 470,205.48 294,932.00 612,649.00 $ $ 907.581.00 $ 992,275.17 $ 992,275.17 $ 0.00 $ - 47 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.w.. Suite 214 Atlanta, Georgia 30334-R400 RUSSELL W. HINTON STATE AUDITOR (404) 656,2174 February 22,2001 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, 2000, and have issued our report thereon dated February 22,2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We did not observe the taking ofthe consumable supplies inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance 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 oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing' an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards. 2000YB-40 Internal Control Over Financial Reporting In planning and performing our audit, we considered Richmond County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the 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 operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe ipternal control over financial reporting that, in our judgment, could adversely affect Richmond County Board of Education's ability to record, process, summarize and report financial data consistentwith assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-7211-00- 01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the 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 reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, the reportable condition described above is considered to be a material weakness. This report is intended solely for the information and use of management, members of the Richmond County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ~~ Ru sell W. Hinton State Auditor RWH:gp 2000YB-40 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S.w., Suite 214 Atlanta. Georgia 30334-X400 RUSSELL W. HINTON STATE AUDITOR (404) 656-2174 February 22,2001 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 ON 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 -133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30,2000. 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, c10ntracts 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 financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance al;>out 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.W e 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. 2000SA-10 In our opinion, the Richmond County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000. Internal Control Over Compliance 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 ofthe 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 ofthe 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 solely for the information and use of management, members of the Richmond CountyBoard of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ~ W.4l:k Russell W. Hinton State Auditor RWH:gp 2000SA-10 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS RICHMOND COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2000 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS- 7211-98-02 FS-721 1-99-01 FS- 7211-99-02 No Further Action Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-7211-99-02 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 staffto expand our scope. SECTION IV FINDINGS AND QUESTIONED COSTS RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF .FINDINGS AND OUESTlONED COSTS YEAR ENDED JUNE 30, 2000 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 a scope limitation and for various 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 financial statements. 4. Reportable Conditions in Internal Control Over Major 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 Major 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 Required to be Reported by Section .510(a) ofOMB Circular A-l33 The Richmond County Board of Education's audit did not disclose audit findings required to be reported by section .5lO(a) ofOMB Circular A-133. . 7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies . Individuals with Disabilities Education Act - Part B - Flow Through Individuals with Disabilities Education Act - Part B - Georgia Learning Resources System Individuals with Disabilities Education Act - Part B - Severely Emotionally Disturbed Individuals with Disabilities Education Act - Part B - Preschool Elementary and Secondary Education Act - Title VI - Class Size Reduction 84.027 84.027 84.027 84.173 84.340 - 1 - RICHMOND COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000 I SUMMARY OF AUDITOR'S RESULTS 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $783,867.41. 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. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-7211-00-01 The Richmond County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for the maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 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 the school's equipment as well as a schedule of all buildings required for insurance purposes. Weare currently working on our FY 2002 budget and are proposing a budget to hire an outside firm to come in and take an inventory of our general fixed assets. We plan to present a schedule of general fixed assets for FY 2002. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-