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Report No. 09081, District School Board 9081 STATE OF FLORIDA OFFICE OP THE AUDITOR GENERAL tHE Sr�rP,•.. lik cop Mt•fPV • *** MONROE COUNTY *** DISTRICT SCHOOL BOARD For the Fiscal Year Ended June 30, 1976 1 9081 STATE OF FLORIDA OFFICE OF THE AUDITOR GENERAL Report on Audit of the Accounts of the MONROE COUNTY DISTRICT SCHOOL BOARD For the Fiscal Year Ended June 30, 1976 Dated: September 19 , 1977 �N56789; ,ti 4 �i' oc, 1611 s ct,n CL€0 C` 539 ovicu T CpUt R y> ��ebZ£ZlZLZ c' ) s. STATE OF FLORIDA III OFFICE OF THE AUDITOR GENERAL ron...dt Tallahassee, Florida E""ASmrvRGENERAL'P' A' September 19 , 1977 The Legislative Auditing Committee of the Legislature and the Governor of Florida Sirs: Pursuant to the provisions of Section 11.45, Florida Statutes, I have directed that an audit be made of the accounts and records of the MONROE COUNTY DISTRICT SCHOOL BOARD For the Fiscal Year Ended June 30 , 1976 , Par. No. and present this report thereon. PERSONNEL (1) The personnel of the Board was as follows: Member District No. Joseph T. Thompson, Jr . 1 Enoch H. Walker , Vice-Chairman to 11-17-75, Chairman from 11-18-75 2 Carole D. Bolter 3 Wilhelmina G . Harvey, Chairwoman to 11-17-75, Vice-Chairwoman from 11-18-75 4 Ruth Alice Campbell 5 Armando J . Henriquez , Superintendent 1 Par. No. SCOPE AND OPINION ( 2) I have examined the financial statements of the various funds and account groups of the Monroe County District School Board for the fiscal year ended June 30 , 1976. My examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as I considered necessary in the circumstances. ( 3) In my opinion, the accompanying financial statements present fairly the financial position of the various funds and account groups of the Monroe County District School Board at June 30, 1976, and the results of its financial operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year after giving retroactive effect to the changes described in note 7 to the financial statements, with which I concur , regarding the accounting for grant revenues. FINANCIAL POSITION ( 4) The financial position of the various funds and account groups at June 30, 1976, is shown on exhibit A. Changes in fund balances are shown on exhibits B-3 , C-3 , D-3 , and E-3. ( 5) Current resources were sufficient to meet current obligations. (6) The unappropriated fund balances of the General (Operating) Fund at the end of the last two fiscal years were as follows: June 30 , 1975 $1 ,297 ,012 .46 June 30, 1976 2 ,604,850.86 FINANCIAL OPERATIONS (7) Statements of revenues, expenditures, and transfers are shown on exhibits B-2 , C-2 , D-2 , and E-2 . Revenues (8) Revenue received directly from the Federal Government consisted primarily of Federal Impact funds provided for by Public Law 81-874 , of approximately $984,000 . Federal money received through the State consisted primarily of National School Lunch and Child Nutrition Act funds (approximately $488 ,000) , Elementary-Secondary Education Act funds (approximately $401,000) , Vocational Education Act funds (approximately $304,000) , and Comprehensive Employment Training Act funds (approximately $132,000) . 2 Par. No. (9) Most of the revenue derived from State sources was received through the Florida Education Finance Program. Revenue from this program was approximately $6,096 ,000 . (10) Major local sources of revenue were the district school tax and school lunchroom sales of approximately $5,925,000 and $595,000 , respectively. (11) The Board through its Food Service Department sold at cost some food items to the Florida Keys Memorial Hospital. However , delivery and warehousing costs and administrative expenses were not included by the Board in billing food items to the Hospital. After the close of the audit period, the Board entered into an agreement with the Hospital to sell the food items at five percent above cost . Although the principle of economies in pool purchasing are recognized (Section 237 .02 , Florida Statutes, and Section 6A-1 .13, Rules of the State Board of Education) , there appears to be a lack of authority for the District School Board to act as vendor . Expenditures (12) Expenditures reported by the Board were properly supported, correctly classified, and made in accordance with legal requirements. Tax exemptions were taken where applicable. (13) The Board contracted with the Grant School of Miami , a nonpublic school in Dade County, to provide educational services to exceptional students, as authorized by Section 6A-6.361, Rules of the State Board of Education. The contract provided for the Board to pay tuition for the students at a monthly rate of $275 per student ; however , tuition for two students was paid at a monthly rate of $305.50. Payments were made for another student for whom an agreement could not be located for the 1975-76 school year . The contract also specified that the Grant School of Miami submit attendance reports to the Board. These reports were not presented for audit . Salaries and Personnel Records ( 14) Salary payments were adequately supported and were made pursuant to salary schedules approved by the Board. (15) Section 6A-1 .69 (3) , Rules of the State Board of Education, requires that all filing equipment for personnel records shall have a locking device and shall bear a certified fire protection label. As noted in audit reports No. 7581, page 8, No. 8612, paragraph 35, and No. 8836 , paragraph 21, some of the Board 's personnel records were not protected as required. The Superintendent , in his response dated September 23, 1976, to a comment in the prior audit, stated that as of October 1976 the purchase order would be issued for additional cabinets. As of June 1977, the cabinets had not been replaced. 3 Par . No. (16) Evaluations for supervisory and administrative personnel were on file for 1975-76. (17) On two occasions, the Internal Revenue Service assessed late deposit penalties because the Board did not make Federal tax deposits in sufficient amounts when due. Penalties totaling $9 ,165.25 were assessed for the tax periods ending December 31 , 1975, and March 31 , 1976, and were paid by the Board. (18) Section 295.10 , Florida Statutes , provides that in all positions where employment of persons is not subject to merit system, civil service, or other competitive system, preference in appointment or employment shall be given to veterans. Section 295.11 , Florida Statutes, provides that in each instance in which a veteran having the qualifications applied but was not hired, a report must be filed with the Division of Veterans Affairs, Department of Community Affairs. Records maintained by the Board were not sufficient to enable me to determine whether the Board complied with the provisions of Sections 295.10 and 295.11, Florida Statutes. I recommend that the Board adopt procedures to document compliance with these provisions of law. Travel Expenses (19) The Board continued to pay the Superintendent and some employees monthly travel allowances for the use of privately-owned automobiles on official business. These payments were made on the basis of the travelers ' signed statements which were filed on an annual basis prior to the allowances being granted. However , the statements filed by the Superintendent did not show enough miles to support the amount paid to him had he been reimbursed for travel at a rate of 14 cents per mile, the maximum allowed under the provisions of Section 112 .061 (7) (d) , Florida Statutes. Payments were as follows: Month Miles per Mileage at Amount Amount in Traveler 's 14 Cents Paid Excess, Statement Per Mile Per Month October 1975/March 1976 1,636 $229.04 $280 $50.96 April 1976/June 1976 1 ,927 269 .78 280 10 .22 (20) The Board members from district Nos. 5 and 3 were paid for travel between home and various locations in the Key West vicinity, based on the actual number of miles traveled. Reimbursement should have been made only for the shorter distance from the Board ' s office to these locations. The Attorney General, in opinion No. 075-237 , stated that ". . travel should be calculated from the member ' s residence, when travel originates there, if it is a shorter distance than from the official headquarters to the place where the official duties are to be carried out. " He also said that " . a member should be entitled to travel expenses when he travels directly from his home to a place other than the administrative headquarters to perform his official duties when there is no necessity to take a 4 Par . No. longer route by way of the administrative headquarters. . . " The Attorney General referred to opinion Nos. 064-21 and 074-132 wherein was stated the opinion that travelers were entitled to reimbursement for mileage in traveling on official business to a location other than the headquarters office either from home or from the headquarters office, whichever is shorter. Purchasing (21) Purchases were made through a centralized purchasing department. Purchasing procedures appeared to be adequate. Procedures generally included the use of requisitions, solicitation of bids when required by Section 6A-1 .12, Rules of State Board of Education, and the issuance of purchase orders. Insurance (22) Insurance coverage appeared to be adequate and included automobile liability, fire and extended coverage, excess liability umbrella, workmen ' s compensation, and group health and life insurance. The Board members, superintendent , and appropriate employees were bonded. Investments (23) A tabulation showing interest received during the fiscal years 1974-75 and 1975-76 is as follows: Major Fund Group 1974-75 1975-76 Interest Income from Investments Made Locally: General (Operating) Fund $ 24,887 .39 $ 13,108.46 Debt Service Funds 29 ,296 .67 30,828 .06 Capital Projects Funds 304,012 . 53 241 ,750 .91 Interest Income from Investments of Board Funds Held by the State:. Debt Service Funds 45,115 . 75 30 ,362.17 Capital Projects Funds 7 ,116 .12 4,037 .89 Total $410,428.46 $320,087.49 ( 24) During fiscal year 1976-77 all banks holding time deposits began crediting interest on a quarterly basis, in accordance with Section 136 .04, Florida Statutes. Interest rates obtained during the audit period ranged from 5.2% to 11% . 5 Par. No. Budgets (25) The annual budget was prepared and adopted in compliance with applicable laws ano State Board of Education rules . Final budgets compared with actual revenues and expenditures are presented on exhibits B-2 , C-2 , D-2, and E-2. Taxes (26) Millages and taxes levied for school purposes on 1974 and 1975 tax rolls are shown below: 1974 1975 Mills Amount Mills Amount General (Operating) Fund: Nonvoted School Tax 7 .80 $5,325,383.68 7 .800 $5,504 ,390.00 Debt Service Funds: District No. 1 Bond Interest and Sinking Fund .37 252,614.35 .495 349 ,317 .00 Total 8.17 $5,577 ,998.03 8.295 $5,853,707.00 Millages were within the amounts authorized by law. Transportation (27) The Board submitted transportation survey reports to the State Department of Education. These reports were used to calculate the Board's share of the Florida Education Finance Program funds for transportation. (28) Activity logs were not maintained for trucks or automobiles, as noted in audit report No. 8836 , paragraph 41. In his response to a comment in the prior report , the Superintendent stated "As of October 1 , 1976, vehicular activity logs will be kept on all trucks and cars. " As of June 1977 activity logs for trucks and cars were not available for audit . I again recommend that such logs be established in order to provide adequate control over the use of these vehicles. ( 29) Records of utilization and maintenance of buses were kept by the Board 's Transportation Department and appeared to be adequate. Charges for the use of school buses, other than transporting children between home and school , were made at a rate of $4 per hour and $ .25 per mile. Transportation personnel stated that a ten-year replacement policy was in effect for buses. 6 Par . No. Compensation of Superintendent and Board Members ( 30) The Superintendent 's compensation was paid as provided by Section 145.08 , Florida Statutes. Possible compensation overpayments shown in audit reports Nos. 8612 and 8836 , because of differences in interpretation of law, have been resolved to my satisfaction and, therefore, are no longer considered as possible overpayments. (31) Compensation for Board members was paid in accordance with Section 145.041 , Florida Statutes. Health Services (32) The Board contracted with the Department of Health and Rehabilitative Services to obtain medical services for school children and employees. This contract was in the amount of $17 ,000 . ( 33) In addition, the Board contracted with three guidance clinics to render counsel to school children in matters of mental health and guidance. The contracts were awarded in the following amounts: Clinic Amount Guidance Clinic of the Lower Keys $15 ,000 Guidance Clinic of the Middle Keys 4 ,550 Guidance Clinic of the Upper Keys 5 ,800 Capital Projects Funds ( 34) With the exception of the certificate of completion for the May Sands Addition noted in this section, capital project files were substantially complete and well maintained. (35) Agreements with architects were entered into after negotiations pursuant to the provisions of Section 287 .055, Florida Statutes. (36) The following tabulation shows the accounting for funds for capital outlay purposes derived from bond issues for which there were proceeds on hand during the audit period: 7 Par. No. State Board of State Board of Education Bonds Education Bonds Dated 1-1-74 Dated 6-1-62 Receipts Proceeds $2 ,729 ,456.69 $750,000.00 Interest, Prior Periods 302 ,621.90 27 ,475.52 Interest, Audit Period 191 ,594.31 Loans from Other Funds, Prior Periods 252,200.00 Loans from Other Funds, Audit Period 567 ,000 .00 Total Receipts $4,042,872.90 S777 ,475.52 Expenditures and Loan Payments Expenditures: Prior Periods $ 615 ,217.20 $775,876.24 Audit Period 1 ,296 ,477.82 Repayment of Loans 699,200 .00 Total Expenditures and Loan Payments $2,610,895.02 $775,876.24 Balance, June 30, 1976 $1 ,431,977 .88 $ 1,599. 28 ( 37) Additions to the May Sands School and the Coral Shores School were the only major capital improvement projects completed during the year. Estimated and actual completion costs are shown in the following tabulation: May Sands Addition Coral Shores Addition Estimated Cost $425,000.00 $758,825 .00 Actual Cost $293,135.23 $774 ,766 .26 Gross Square Footage 11 ,352 31 ,931 Cost Per Square Foot $25 .82 $24 .26 ( 38) Section 6A-2.24 (1) , Rules of the State Board of Education, requires that all new construction for which plans were approved by the Office of Educational Facilities Construction shall be inspected by a representative of that office prior to student occupancy. The May Sands addition was in use; however , a certificate of final inspection was not presented for audit . INTERNAL CONTROL AND RECORDS ( 39) Internal control was adequate and records were well kept , except as noted in the following paragraphs. 8 Par . No. (40) A list of mail collections was currently being prepared; however, it was not prepared by the person who opened the mail. This procedure defeated the purpose of preparing the list which is to establish responsibility and accountability for the collections to one person. To improve the control over these collections, the list should be made at the time the mail is opened and by the person who opens the mail. (41) At several schools some lunchroom collections were not rung up on the cash registers in use. For adequate control , I recommend that all collections be recorded, either by means of machines or manually by the use of prenumbered receipt forms. (42) Minutes of the Board meetings were adequately indexed. The inclusive numbers of warrants approved by the Board were shown in the minutes, along with the dollar amount . The minutes were currently typed and appeared to reflect the official acts of the Board. GENERAL FIXED ASSETS (43) Some improvements were still needed in the accounting controls and procedures for fixed assets. According to my test of capital outlay purchases during fiscal year 1975-76 , several items were not added to the property records or recorded as additions in the General Fixed Asset Group of Accounts. The Board should require such records or procedures as are necessary to prevent this from occurring. These might include reconciliations made on a timely basis between the capital outlay expenditure amounts and the amounts shown as additions in the fixed asset group of accounts. GENERAL LONG-TERM DEBT (44) General long-term debt is recorded in a self-balancing group of accounts to show outstanding obligations at the balance sheet date with maturity dates beyond one year . (45) Subsidiary records to support payments, bond and coupon cancellations, and amounts outstanding for local bond issues were adequately maintained. (46) There were no new bond issues during the audit period. INTERNAL FUNDS (47) In accordance with Section 237 .02 (4) , Florida Statutes, and Section 6A-1.87 , Rules of the State Board of Education, the Board had adopted policies that prescribed the procedures for administration and control of internal funds. 9 Par. No. (48) The Board, in compliance with Section 6A-1.87 (2) , Rules of the State Board of Education, provided for an audit of internal funds by a local certified public accountant; therefore, an audit of those funds was not included in the scope of my examination. CREDIT UNION ( 49) The Board provided to the Monroe County Teachers Federal Credit Union, at no charge, space at Harris Elementary School in consideration for the services rendered to the employees of the Board. This action was taken in compliance with Section 657.24, Florida Statutes. STATEMENT FROM AUDITED OFFICIAL (SO) In accordance with the provisions of Section 11.45 (6) (d) , Florida Statutes, a list of audit findings was submitted to the Board. The Superintendent ' s response to the audit findings included in this report is shown on exhibit J . EXHIBITS The following exhibits are attached to and form a part of this report : Combined Section EXHIBIT - A Combined Balance Sheet - All Funds. General (Operating) Fund EXHIBIT B-1 Balance Sheet. EXHIBIT B-2 Statement of Revenues, Expenditures, and Transfers. EXHIBIT B-3 Statement of Changes in Fund Balance. Special Revenue (Contracted Program) Funds EXHIBIT C-1 Balance Sheet. EXHIBIT C-2 Statement of Revenues and Expenditures. EXHIBIT C-3 Statement of Changes in Fund Balance. 10 Debt Service Funds EXHIBIT D-1 Balance Sheet. EXHIBIT D-2 Statement of Revenue, Receipts, Expenditures, and Transfers. EXHIBIT D-3 Statement of Changes in Fund Balances. Capital Projects Funds EXHIBIT E-1 Balance Sheet. EXHIBIT E-2 Statement of Revenues, Expenditures, and Transfers. EXHIBIT E-3 Statement of Changes in Fund Balances. General Fixed Assets EXHIBIT - F Statement of General Fixed Assets. General Long-Term Debt EXHIBIT - G Statement of General Long-Term Debt . 11 Other EXHIBIT - H Summary of Significant Accounting Policies. EXHIBIT - I Notes to Financial Statements. EXHIBIT - J Statement from Audited Official. Respectfully submitted, (Signed) Ernest Ellison, C.P.A. Auditor General Audit supervised by: (Signed) Willard G. Hale Audit made by: (Signed) Gerald J. Schilling 12 Co � r woo comm . 2 muum mucm if ocmo s2 ® Ec l : : l � � � ( \ \ vo a nm jPo . o 4 § = r - U - ) { / 3: {> i mo y (!E I • 93 / ))f / / oo , . , , , on- r : -� = «« wsdn \/� � / / F ` /© � ` ^ \� \ / \13 6^. E., G „ 0 0 0 p 0 0 0 O D co so 0 Ln w6cow ca 400 Ola y N ry N (11 v .0 O P Cl at y — r av ry 0 a O A T r£O — ry ry r ry m .-� ..' V r CO • m N ry rl :14 re tr wvv wwv N„ N ry N„V CV Cvt�4)ty ry tvVVN N q0u i c o o LI p• : a u q m S q i D C) O 4 u m Q c T err " EN-= Op 13 m F .tu i.7a Ov ]9 ;4; n r t u no to m 14 DISTRICT SCI1001. BOARD EXHIBIT B-1 OF Monroe CWNIY GENERAL (OPERATING) FUND BALANCE SHEET June 30, 1976 ASSETS Cash: Demand Deposits 1111 2,301,039.74 Interest Earning Deposits 1115 88,384.34 Other 1119 Taxes Receivable 1120 91.515.60 Accounts Receivable 1130 77 781.50 Due from Other Funds: Due from Budgetary Funds 1141 215,000,00 Due from Internal Funds 1142 6,362.00 Stores: Food Service: Federal Commodities 11511 36.943.83 Other (Specify) 11512 29 824.72 Other Stores 11513 238 177.33 Investments Held Locally 1160 Other Current Assets: Deposits Receivable 1210 Other (Specify) 1290 TOTAL ASSETS 1000 3,085,029.06 LIABILITIES, RESERVES, AND FUND BALANCES Liabilities: Salaries and Wages Payable 2110 Accounts Payable 2120 121,836.55 Contracts Payable 2140 Due to Other Funds: Due to Budgetary Funds 2161 Due to Internal Funds 2162 Payroll Deductions and Withholdings 2170 111,448.74 Other Current Liabilities: Deposits Payable 2220 Due to Other Agencies 2230 _ 38,000.00 Other (Specify) 2290 Iota) Liabilities 2100-2200 2299 271,285.29 Reserves: Reserve for Insurance Loss Recoveries 2640 Fund Balance: Reserve for Encumbrances 2610 208,892.91 Unappropriated Fund Balance 2710 2,604,850.86 Total fund Balance 2700 2,813,743.77 TOTAL LIABILITIES, RESERVES, AND FUND BALANCES 2000 3,085,029.06 See accompanying summary of significant accounting policies and notes to financial statements. 15 EXHIBIT B-2 DISTRICT SCILUL BDARD OF MONROE COUNTY GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30. 1976 Final Over budget Actual (Under) REVENUES Budget FEDERAL SOURCES: Department of HEW: Public Law 81-874, Federal Impact- Current Operation 121 984,382.58 984,382.58 Other -0- Federal Agencies:ROTC 191 Other (Specify) Key Deer Refuge 192 20 000.00 25 7�3.30 5,723.30 TOTAL FEDERAL DIRECT 100 2.004.382.5Q 1.010.105.88 5.721.30 FEDERAL MONEY RECEIVED THROUGH THE STATE: Department of HEW: Vocational Funds 201 Department of Agriculture: P.L. 79-396, National School Lunch 6 Child Nutrition Act: School Food Reimbursement 261/262 375,000.00 375,000.00 -0- Comnodities 265 120 000 00 109 951.12 (10,046.88) Non-Food Assistance 263/264 _O- 3 572 50 3,572.50 P.L. 82-690, National Forest Funds 255 Other Federal Agencies: — Other (Specify) 299 TOTAL FEDERAL THROUGH STATE 200 495 000 00 488,52.5,12 (6,474.38) STATE SOURCES: Florida Education Finance Program 310 6,288,239.00 6,095,859.00 (192,430.00) State Auto License-CO&DS: Withheld for Administrative Expense 323 5,174.79 5,174.79 -0- Categorical State Sources: Comprehensive Health Education 331 12,373.97 15,473.97 3,095.00 Safe School Act 332 Community School Program 334 75 709.00 54.000.00 (21,709.00) Exceptional' Child Support Services 335 Instructional Materials Funds (Textbooks) 336 94 ILI 00 01 V411 75 (462.75) Food Service Supplement 338 4D Ono 00 21 946 00 (18,054.00) Career Education 339 ;2,492 OB 17 111 00 (354.00). Other State Sources: Racing Commission Funds 341 90,000.00 93,250.00 3,250.00 State Forest Funds 342 State License Tax 343 90 000.GB 90.000 Op Other (Specify) Driver Education Program 349 -55 1 ITS 72 2,436.02 TOTAL STATE 300 b 713 4 78 51[9ia 73 (222,436.03)_ LOCAL SOURCES: Taxes: District School Taxes 411 5,504,390.00 5,572,536.85 68,146.85 Tax Redemptions 421 -0- 85 5)7.56 85,517.56 Excess Fees 423 _p_ _ 24 997 o 29,997.01 Tuition 424 2.D00.00 2 910.00 910.00 Rent 425 1.000.0D 587.59 (412.50), Interest, Including Profit on Investments 430 _p- 13 10B 46 13 108,46 Gifts, Grants, and Bequests 440 -D- ls.Dnn 3o 15.000 00 Food Services 450 MDlnon On 594,459 el (8.140.091 Miscellaneous Local Sources: 490 47.500.00 -0- (47.500.00) 491 _a_ 765 50 765e50 Transportation Services Rendered for School Activities 492 -0- 3,521.64 4,521.64 Federal Indirect Cost Rate 494 -0- 3.494,30 3,494.40 Other (Specify) See Below * 498 -0- 67,292.91 67,292.91 TOTAL LOCAL 400 6.157.690,00 6 339.591.64 231,701.64 TOTAL REVENUE 498 100-400 499 14,370,827.34 14,379,341.87 8,514.53 Co. Comm,/Roc. Prog. 4 Other 14,543.39 498 K. W. Housing a City Elec. 14,871.37 A. B. Fees 15,553.10 _ Sale of Junk 5,985.40 Refund tiler Yrs. 3,636..15 Sale of Equipment 12,701.50 16 DISTRICT SQloni ROM EXHIBIT B-2 OF 14,:tti,. 6JWIIY (Continued) GENERAL (OPERATING) FUND STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Final Over Budget Actual (Under) Budget NON-REVENUE RECEIPTS: Sale of Fixed Assets 730 Net Insurance Loss Recovery 740 TOTAL NON-REVENUE RECEIPTS 700 — REMITTANCES FROM OTHER DISTRICTS B AGENCIES: Transportation 510 _ Other Purposes 520/530 TOTAL REMITTANCES 500 _ INCOMING TRANSFERS: From Special Revenue Funds 640 From Debt Service Funds 620 From Capital Projects Funds 630 _ Interbudgetary 650 TOTAL TRANSFERS 600 TOTAL RECEIPTS, REVENUES, AND TRANSFERS 100-700 999 14,370,827.34 14,379,341.87 8,514.53 See accompanying summary of significant accounting policies and notes to financial statements. 17 ( { ®a !!,/ /; ; \ / /07 ate\/\\/ \ \ \ \ ZJ } j\ ) 1 \ ( Cfl-„,,_„_ } - 0 - .! ,! : ! K:>!}j=: . /) ( 5S \ \ G3y% \ \ \ \ g® \ v x S « ; :/\/® \ ^ \ ( ; /J/8 \ } a. Lel ~ _ 2 : %\ _1gJlJ \ - )j : _ :; . ,,,,eq1, 4 \ / \ n \/ \ / en a ! \\ d/\/ \ wan 5171 \\ w3 ! » § q //// ( :/ \% § , Q; / ® - ^ , � � . g : / \/Z &/ AA 9egm � 80 ; ; Ja 2 9J&« / wrr � t „ - - 0. JCS die/ ` = « >J96£J . „ ); : rz : :l;.;=§ > 04, \ 80 /: } 2: 3 Q° y9// \ ! r ;!;! / § Z >/!:§:! : xo /� \ \\ Q }/ //\/22 \ / ! } § as : < 3w:K2 \ / / \ \\ 8 \ \ \\\\ \ / 1R HlppgNHH ! R in( \ \ \ 2 .EM cc C n \ . bGGGH / \ 9 , CC �~ , ! ! ! ) ! ° ; � ; ; � l � : , ; l . . ! _ (941 / nRj § ggnoAi [ inwo o » DISTRICT SCHOOL BOARD EXHIBiT B-1 OF Monroe COUNTY GENERAL (OPERATING) FUND STATEMENT OF CHANGES IN FUND BALANCE For the Year Ended June 30, 1976 Fund Balance•, July 1, 1975 2710 (1) 1,516,148.43 Add: Excess of Revenues and Transfers Over Expenditures and Transfers 1 1,283,678.12 Adjustments to Increase Fund Balance 2 13,917.22 Total Additions 3 Total Balance and Additions 4 2,813,743.77 Deduct: Deficiency of Revenues and Transfers Over Expenditures and Transfers 5 Adjustment to Decrease Fund Balance 6 Total Deductions 7 Fund Balance`. June 30, 1976 2710 (2) 2,813,743.77 *Fund Balance includes Reserve for Encumbrances See accompanying summary of significant accounting policies and notes to financial statements. 19 EXHIBIT C-1 DISTRICT SCHOOL BOARD OF Monroe COUNTY SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS BALANCE SHEET June 30, 1976 ASSETS Cash: Demand Deposits 1111 40,164.35 Interest Earning Deposits 1115 Other (Specify) 1119 Accounts Receivable 1130 Due from Other Funds 1140 TOTAL 1000 40,164.35 LIABILITIES, RESERVES, AND FUND BALANCES Liabilities: Salaries and Wages Payable 2110 Accounts Payable 2120 Contracts Payable 2140 Due to Other Funds 2160 Payroll Deductions and Withholdings 2170 Uue to Other Agencies 2230 10,657.14 Total Liabilities 2100-2200 2299 10,657.14 Reserves: Reserve for Insurance Loss Recoveries 2640 Fund Balances: Reserve for Encumbrances 2610 29,507.21 Unappropriated Fund Balance 2710 Total Fund Balance 2600-2700 2799 29,507.21 TOTAL 2000 40,164.35 See accompanying summary of significant accounting policies and notes to financial statements. 20 DISTRICT SCHOOL BOARD EXHIBIT 0-2 OF Monroe COUNTY SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF REVENUES AND EXPENDITURES For the Year Ended June 30, 1976 Final Over Budget Actual (Under) Budget REVENUES FEDERAL SOURCES: Health, Education & Welfare: Head Start 130 Public Law 88-352, Civil Rights Act-Title IV 140 Public Law 89-10, Elementary & Secondary Education Act-Title III 110 Other HEW: ESAP 161 Other (Specify) 169 Office of Economic Opportunity: Community Action Program 180 Other Federal Agencies: ROTC 191 Other (Specify) 199 TOTAL FEDERAL DIRECT 100 FEDERAL MONEY RECEIVED THROUGH THE STATE: Department-of HEW: Vocational Education Acts 201 168,541.28 304,488.13 135,946.85 P.L. 85-864, National Defense Education Act 210 4,897.00 10,419.77 5,522.77 P.L. 93-20, Comprehensive Employment Training Act 220 132,326.90 132,326.90 P.L. 89-10, Elementary-Secondary Education Act Title I & II, Migrant 240 486,514.00 401,038.38 (85,475.62) P.L. 89-750, Adult Basic Education 251 ii 378 20 11 234 62 (143.58) P.L. 90-35, Higher Education Act 252 3 865 82 3,865.82 Office of Economic Opportunity (Adult Migrant) 254 Other Federal Agencies: Other (specify) Title vi-B 256 42,860.00 27,513.07 (15.346.93) TOTAL FEDERAL INROUGH STATE 200 714,190.48 S90,886,69 176 696.21 LOCAL SOURCES: Grants, Gifts, and Bequests (Specify) 440 Remittances from Other Agencies -520 469,109.18 134,574.03 (334,535.15) TOTAL LOCAL 400 469,109.18 134,574.03 (334,535.15) TOTAL REVENUES 100E500' 998 1,183,299.66 1,025,460.72 (157,838.94) TRANSFERS 600 194.000.00 19,896.23 (174,103.77) TOTAL REVENUES AND TRANSFERS 100-700 999 1.377.299.66 1,045,356.95 (331,942.71) See accompanying smmary of significant accounting policies and notes to financial statements. 21 i 11111111111111111111 1 id 1 I 1111111111111 :: i oil 1111111.11111 i 1 1111111111111111 ' ih. * 1111111111111111111 :0 HI t! .k111111111111111 i I ! dr" I ill! I 1 111111111111r - 1 ' I MI III 11 fil Hill 1 I . ill 1 111111 1 I b 11111 : -21 0 22 DISTRICT SCHOOL BOARD EXHIBIT C-3 of MONROE COUNTY SPECIAL REVENUE (CONTRACTED PROGRAM) FUNDS STATEMENT OF CHANGES IN FUND BALANCE For the Year Ended June 30, 1976 Fund Balance, June 30, 1975, as originally reported $ 418,086.46 Reversal of Prematurely Recognized Grant Revenues (399,193.56) As Restated $ 18,892.90 Add: Excess of Revenues and Transfers Over Expenditures and Transfers 10,614.31 Fund Balance, June 30, 1976 $ 29,507.21 See accompanying summary of significant accounting policies and notes to financial statements. 23 • .14 CI ( ® // 40 . // ; ; } ! a o o §®) ` E ! \ ( o E ` ! a: a: 2" ; \ , !;. \ o !); ` ;§! ; / ; \k ' �� \ [ ' ; 2 et ! ! / 2 „in: J { \~�� \ cc \ \ / 7 } } \ \ \ ` - } , Z ( t a. § . . . . � \ \ E ! ! 3 ( 2 - C ) s . t \ ! \ r e ; ; /; \U j /:;8 {> )! / i _ _ . 9 G e J ` /o \ \ " ^ \ /6` ^ 'CO \ 24 DISIk1C1 SCJOOL LD61:G EXHIBIT 0-2 OF MONROE COUNTY DEBT SERVICE FUNDS STATEMENT OF REVENUE, RECEIPTS, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Final Over Budget Actual (Under) Budget State Board of Education Bonds 01 Revenues: Capital Outlay and Debt Service: Withheld for SUE Bonds 322 110 723.87 196.723.87 Cost of Issuing SBE Bonds 324 _ _ _- Interest on Investments: SBE Bond Reserve 326 30 .i52 17 30.162 17 Sale of Bonds 711 Total Revenues 300-700 999 9,7,n's ,v, 927>9n6 cv Expenditures: Redemption of Principal 9200-710 9271 185 m9 nn 105 110 10 Interest 9200-720 9272 155,58i� on 167 S2s ^.L Dues and Fees 9200-730 9273 15'a '9 1 511 46 Other Expenses 9200-790 9279 Total Expenditures 9200 974 :;;o r. 271,P M L1 Excess (Deficiency) of Revenues Over Expend. 9999 ( [«; 777 (9) ( hS 772 421 Special Act Bonds 02 Revenues: Racing Commission Funds 341 1ni 1,Ml in 11n Pnn nn Interest on Investments 431 27 ,., i nn ',VI:. ;p 1 nit 39 Transfer from General Funds 610 Total Revenues and Transfers 300-600 999 157_{i 71 155 818 11 1 214 Fl _ Expenditures: Redemption of Principal 9200-710 9271 50L010 09 50pr1 CO Interest 9200-720 9272 Si 552 59 55 Sag 53 Dues and Fees 9200-730 9273 1 011 no 71Q 78 (25Q.22) Other Expenses 9200-790 9279 Total Expenditures 9200 ins S%' Sn lh5 'n2 2R ( 960 25) Excess (Deficiency) of Revenues Over Expend. 9999 50 437 50 52.632.52 2.195.02 Section 237.161 Loans 03 Transfers: Transfers from General Fund 610 MT APPLXCAflL. Transfers from Capital Projects Funds 630 Total Transfers 600 999 Expenditures: Redemption of Principal 9200-710 9271 Interest 9200-720 9272 Dues and Fees 9200-730 9273 Other Expenses 9200-790 9279 Total Expenditures 9200 _ Excess (Deficiency) of Transfers Over Expend. 9999 25 EXHIBIT D-2 DISTRIC1 SCHOOL BOARD (Continued) OF tit:0 COUNTY DEBT SERVICE FUNDS STATEMENT OF REVEI'UE, RECEIPTS, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Final Over Budget Actual (Under) Budget Motor Vehicle Revenue Bonds 04 Revenues: Capital Outlay and Debt Service: NOT AMICF4g.'. Distributed to District 321 Interest on Investments 431 Transfers from Capital Projects Funds 630 Total Revenues and Transfers 300-600 ggg Expenditures: Redemption of Principal 9200-710 9271 Interest 9200-720 9272 Dues and Fees 9200-730 9273 Other Expenses 9200-790 9279 Total Expenditures 9200 Excess (Deficiency) of Revenues Over Expend. 9999 _ District Bonds 1955 Issue 05 Revenues: Taxes: District Interest and Sinking 412 349,317.79 352,579.52 _3,252.52 Tax Redemptions 421 - Excess Fees 423 Interest on Investments 431 999.10 1 '91 9; Po; m _ Total Revenues 400 999 150 51410 3'4677 71 Li' o _ Expenditures: Redemption of Principal 9200-710 9271 pin 'nn 04 97p Q'Ln 79 Interest 9200-720 9272 , ;71.k1 1,9u ' Dues and Fees 9200-730 9273 ,5,x vn 9n 2t,"5 r,Other Expenses 9200-790 9279 Total Expenditures 9200 761.5711 rp 91A VA IS CR,C'c, OS)__ Excess (Deficiency) of Revenues Over Expend. 9999 140 'MA 19 11(1.19:1 71 11,154 cl _ District Bonds 19__ 06 Revenues: Taxes: District Interest and Sinking 412 NOT APPLICABLE Tax Redemptions 421 Excess Fees 423 Interest on Investments 431 _ Total Revenues 400 999 Expenditures: Redemption of Principal 9200-710 9271 Interest 9200-720 9272 _ Dues and Fees 9200-730 9273 Other Expenses 9200-790 9279 Total Expenditures 9200 Excess (Deficiency) of Revenues Over Expend. 9999 See accompanying summary of significant accounting policies and notes to financial statements. 26 ea § 0 ;�_ e § ! , ; fm \ ® 4 4 ° : 3on ° } a ote 44 !§ a 4 [ 25w \! ' ®\) V \ );W. 0w cc \§� ® `! ! � ) ° ) q § io § ~ \` /w } ] el a in 5 . 7 2 ! en wc ! N. io ~ C ) ) i i } t ! @ m ! 7 @ ) k \ \ i 2 \ ) , ea \ _ ; ce SI ! !ta ea cc [ ! § : f ;/\ \ OC ( eau 9 G^\ /% d^ 9 / y a 27 : \/[ INE Ill° Pa ow 8 O 929E J § lyC4 en ei C \ ~ ; ! \ ® ( a, in kis- 2 ! _ /LU U VI le E•/ / { ® / / E /C % / / ( : ; E < i/r \ a§ ` ! § §: . l , :: )2�, ;_.;!!/ ! �a / 2 !) : // a IV w ; in 0 NOCTO m r- � _ N0 W � sa en.. va o O\0 co> V cocv Nn co a, In ol t C O O O O 0 O O 0 O 0 0 ^ p O O O O co C O C- v v v W LI- W W ^ Y O Y IA YE ti N �6 O i W'O 1N o o = W O k °Wn iv o'un - w cc w a K ° e c h. c P '-0 a N 67 h. 0 J CO 0j 9 C li- O q lel co O O 00 in O O P COm COen O O O O P O O O O N In CO ; 01 A L P P 4-1 C Or P m em 0 am' Cl a ��o 0 0N °) le N W ......... ti wN w w 14. �+ c 0 0 w ¢rtj °&`i a cr m N o b. 2 0 in A Q T Wa X Zau a,-a' Eci, N 1 µcc -aq • C W T -. W«^ C O Y K O N F-N W U Y- ES- O O L L V O E W .Y O i O > O J 6 OE . Ea«+tO M .W-.--- L CJ w - m O K0.. J O SLY N vI I- C J 4..Y W =- ¢ F .4 OLL 29 EXHIBIT E-2 DISTRICT SCHOOL BOARD OF MOHROE COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Over Final (Under) Capital Outlay and Debt Service (CO & DS) 02 Budget Actual Budget School Construction Fund anti Su lemental Capital-lutla,t-(SLF & SCO Revenues: Capital Outlay & Debt Service: Distributed to Districts 321 143,037.34 143,087.3 Interest on Undistrubuted CO & DS 325 4 017 31 4 017 fla SBE Bond Interest 326 Interest on Investments 431 8 643 21 3.618 81 Total Revenues 300-400 499 155 754 13 155 751, 04 Expenditures: New Contruction & Additions 1 Capital Outlay: Library Books 610 Audio Visual Materials 620 Buildings and Fixed Equipment 630 431.168 01 70,057.77 (341,313.2131 Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Land 660 Land Improvements 670 Remodeling 680 Total Expenditures: New Construction & Additions 600 431.360.01 70 057.77 (361,310.24)_ Expenditures: Existing School Centers 2 Capital Outlay: Library Books 610 XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXXX Audio Visual Materials 620 Buildings and Fixed Equipment 630 Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXXX XXXXXXXXXX XXX XXXXXX Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement Furniture, Fixtures & Equip. 840 Total Expenditures: Existing School Centers 600-800 899 Grand Total Expenditures: New & Existing School Centers 997 431.368.01 70,057.77 (361.310.24) Transfers 998 Excess (Deficiency) of Revenues and Receipts Over Expenditures & Transfers 999 (yy y ,97) q5 696.27 _7S1i11I 224E 30 DISTRICT SCHOOL BOARD EXHIBIT E-2 (Continued) OF Monroe COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Over Final (Under) Comprehensive School Constructian(CSC)(01d) 03 Budget Actual Budget Revenues: Comp. School Construction & Debt Service 333 41,527.79 41,527.79 Interest on Investments 431 41,527 79 41,527.79 Total Revenues 300-400 499 Expenditures: New Construction & Additions 1 Capital Outlay: Library Books 610 Audio Visual Materials 620 Buildings and Fixed Equipment 630 780,962.79 782,855.79 1,893.00 Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Land 660 Land Improvements 670 Remodeling 680 Total Expenditures: New Construction & Additions 600 780,962.79 782,855.79 1,893.00 Expenditures: Existing School Centers 2 Capital Outlay: Library Books 610 XXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX Audio Visual Materials 620 Buildings and Fixed Equipment 630 Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXXX XXXXXXXXXX XXXXXXXXXX Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement Furniture, Fixtures & Equip. 840 Total Expenditures: Existing School Centers 600-800 899 Grand Total Expenditures: New & Existing School Centers 997 780,962.79 782,855.79 1,893.00 Transfers 998 Excess (Deficiency) of Revenues and Receipts Over Expenditures and Transfers 999 (739,435.00) (741,328.00) (1,893.00) 31 EXHIBIT E-2 DISTRICT SCHOOL 30ARD (continued) OF :51i1X1: COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Over Final (Under) Cofprehensive School Construction SCS6), 04 Budget Actual Budget Public Educati oe Bond hnendment PEB' Revenues: Public Education Bond Amendment 391 427,709.:30 427,709.00 Interest on Investments 431 Total Revenues 300-400 499 427 709.00 427,709.00 Expenditures: New Construction & Additions 1 Capital Outlay Library Books 610 _ Audio Visual Materials 620 Buildings. and Fexed Equipment 630 80,900.90 ( 03,000.00)_ Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXX XXXXXXXXXXX XXXXXXXXXX _ Land 660 Land Improvements 670 _ Remodeling 680 64,113 00 6,354.01 ( 57,243.32) Total Expenditures: New Construction & Additions 600 144,113.00 6,864.65 (137,248.22) Expenditures: Existing School Centers 2 Capital Outlay: Library Books 610 XXXXXXXXXX XXXXXXXXXXX %XXXXXXXXXXX. Audio Visual Materials 620 Buildings and Fixed Equipment 630 Furniture, Fixtures and Equipment 640 _ Motor Vehicles. 650 XXXXXXXXX XXXXXXXXXXX XXXXXXXXXX Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 8T0 Replacement Furniture, Fixtures & Equip. 840 Total Expenditures: Existing School Centers 600-800 899 Grand Total Expenditures: New & Existing School Centers 997 144,113.00 6,864.68 (137,249.32) Transfers 998 Excess (Deficiency) of Revenues and Receipts Over Expenditures and Transfers 999 233,596.03 420,344.32 137,240.32 32 DISTRICT SCHOOL BOARD EXHIBIT E-2 OF Monroe COUNTY (continues) CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Over Final (Under) State Board of Education (SBE) Bonds (All) O6 Budget Actual Budget Revenues: Sale of Bonds 710 Interest on Investments 431 191,594.31 191,594.31 Total Revenues 400-700 799 191,594.31 191,594.31 Expenditures: New Construction 6 Additions 1 Capital Outlay: Library Books 610 Audio Visual Materials 620 Buildings and Fixed Equipment 630 2,608,455.70 1,446,359.41 (1,162,096.29) Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX Land 660 Land Improvements 670 Remodeling 680 Total Expenditures: New Construction N 2,608,455.70 1,446,359.41 (1,162,096.29) Additions 600 Expenditures: Existing School Centers 2 Capital Outlay: Library Books 610 XXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXX Audio Visual Materials 620 Buildings and Fixed Equipment 630 Furniture, Fixtures and Equipment 640 Motor Vehicles 650 XXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement Furniture, Fixtures 8 Equip. 840 Total Expenditures: Existing School Centers 600-800 899 Grand Total Expenditures: New S Existing School Centers 997 2,608,455.70 1,446,359.41 (1,162,096.29) Transfers 998 Excess (Deficiency) of Revenues and Receipts (2,416,861.39) (1,254,765.10) 1,162,096.29 Over Expenditures and Transfers 999 33 EXHIBIT 8-2 DISTRICT SCHOOL BOARD (Continued) OF Monroe COUNTY CAPITAL PROJECTS FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND TRANSFERS For the Year Ended June 30, 1976 Over Final (Under) Budget Actual Budget Local Capital Improvement Fund (LCIF) Capital Projects 08 Revenues and Replants: District Voted Local Capital Improvement Taxes 413 Interest, Including Profit on Investments 430 Sale of Fixed Assets 730 Transfers 600 Total Revenues, Receipts & Transfers 400-700 799 Expenditures: New Construction & Additions 1 Capital Outlay: Library Books 610 Audio Visual Materials 620 Buildings and Fixed Equipment 630 199,350.35 129,832.34 (69,518.01) Furniture, Fixtures and Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 Total Expenditures: New Construction &Additions 600 l99 ]50.35 129,832.34 (69,5I8.01) Expenditures: Existing School Centers 2 Capital Outlay: Library Books 610 XXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXX Audio Visual Materials 620 Puildings and Fixed Equipment 630 Furniture, Fixtures and Equipment 640 Motor Vehicles 650 Land 660 Land Improvements 670 Remodeling 680 Library Books for Existing Libraries 810 Replacement Furniture, Fixtures & Equip. 840 Total Expenditures: Existing School Centers 600-800 89g Grand Total Expenditures: New & Existing School Centers 997 199,350.35 129,832.34 (69,518.01) Transfers 998 _ Excess (Deficiency) of Revenues and Receipts Over Expenditures and Transfers 999 (199,350.35) (129,832.34) 69,518.01 See accompanying summary of significant accounting policies and notes to financial statements. 34 Da 0 GI GI£ til in GI GI 0 o La 0 0 0 0. co o coo 0 u 0 o S r 0 d o E T q T y 0 M K m „0m H LL 6W ¢ r 0 ¢ 0 = 35 mb m a d d xi o d % V ti mi C us so w f 66 4.9 LI= 0211j(slain(SW F £ FU O In •+o _,m c O Q=t MC um F. N 45a a 1-1 — N 0 d m to 4- C F EF T nuG n q En W S w Elw wm m o DISTRICT SLIM BOARD EXHIBIT — F Or Monroe STATEMENT OF GENERAL FIXED ASSETS June 30, 1976 General Fixed Assets Land 1310 1,736,559.56 Buildings 1330 17,454,454.12 Motor Vehicles 1350 714,065.17 Furniture and Other Equipment 1340 1,813,153.13 TOTAL 1300 21,718,831.98 Investment in General Fixed Assets* 2720 21,718,831.98 *Sources of investment in general fixed assets cannot be determined since records of such sources are not maintained. See accompanying summary of significant accounting policies and notes to financial statements. 37 o co E 0 0 0 m w O 51 6<0 , O s G o r_ NZ m lit o iu vE mlois_ :_.)71'1i mri C j T DC % CO A 0 ~ Z I �]0 G 4 3 N V EXHIBIT - H MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1976 The significant accounting policies followed by the District School Board, Monroe County, are described below to enhance the usefulness of the financial statements to the reader . Reporting Entity The governing body of the School District is the District School Board composed of an elected board with the Superintendent of Schools as executive officer . Although the District School Board is considered a separate entity for financial reporting purposes, it is part of the State system of public education under the general direction and control of the State Board of Education as prescribed by Article IX of the State Constitution. The District School Board is also governed by State statutes and State Board of Education Administrative Rules. Pursuant to State Board of Education Administrative Rules, the Superintendent of Schools is responsible for keeping records and accounts of all financial transactions in the manner prescribed by the Commissioner of Education. Basis of Accounting The accounts are maintained and financial statements are prepared on the modified accrual basis of accounting, except depreciation is not recorded. Under the modified accrual basis, revenues are generally recorded when they are received in cash and expenditures are generally recorded when obligations are incurred or when benefits are received. Fund Accounting In order to ensure observance of limitations and restrictions placed on the use of the resources available to the District School Board, the financial records and accounts of the District School Board are maintained in accordance with the principles of "fund accounting. " This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into funds that are in accordance with activities or objectives specified. Separate accounts are maintained for each fund; however , in the accompanying financial statements, certain funds that have similar characteristics have been combined into fund groups. Accordingly, financial transactions have been recorded by fund group where appropriate. 39 EXHIBIT - H (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1976 The funds used are defined as follows: General (Operating) Fund. This fund is used to account for resources that are available for the general financial requirements of the District School Board, the only restrictions being those imposed by law and the budget. Generally, they are the resources received to finance the educational programs of the District School Board as a whole. The organizational units financed through this fund are those which are directly concerned with the operation and support of the educational program. Special Revenue (Contracted Program) Funds. This fund group is used to account for resources that are available for the operation and support of the educational program but are restricted by the donors or other outside agency as to the specific purpose for which they may be expended. The organizational units financed through this fund group are usually the same as those financed through the General (Operating) Fund. Debt Service Funds. These funds are used to account for the resources which will be used to retire the long-term debt of the District School Board. Capital Projects Funds. These funds are used to account for the resources that are available for the acquisition or construction of physical property to be used for District School Board purposes and resources designated for the major repair or replacement of District School Board property. These funds are restricted by bond resolution limitations and generally can be expended only for projects approved by a State Department of Education survey and include the purchase of land, site development , building construction costs, initial furnishings and equipment for new buildings, and major repairs. General Fixed Assets. This self-balancing group of accounts is used to provide a record of fixed assets owned by the District School Board. Fixed assets purchased under lease-purchase agreements are entered in this group after the last payment is made. 40 EXHIBIT - H (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES June 30, 1976 General Long-Term Debt . This self-balancing group of accounts is used to account for the general long-term debt of the District School Board. Employee Leave Accrued Contingent liabilities exist for accrued annual leave . The accrued annual and/or sick leave will be taken by employees or will become payable upon termination of employment as provided in the Board's leave policy and contingent upon available funds. Amounts are not reported on the balance sheet for these contingent liabilities. Retirement System Eligible employees of the Board are members of one or more retirement plans administered by the State of Florida, Department of Administration. These plans call for contributions by the employees and/or the Board at a stated percentage of compensation dependent upon the individual plan. Reporting Financial statements have been prepared in conformity with the National Committee on Governmental Accounting 's publication GOVERNMENTAL ACCOUNTING, AUDITING, AND FINANCIAL REPORTING and the American Institute of Certified Public Accountants' industry audit guide, AUDITS OF STATE AND LOCAL GOVERNMENTAL UNITS. The basis for recognition of revenue for the Special Revenue (Contracted Program) Fund has been changed to conform to the principles set forth in these publications. Revenue for Federal , State, and local grants had been previously recognized at the time the grants were accepted. Revenue is now recognized on the basis of grant expenditures. 41 EXHIBIT - I MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1976 1. The first-in first-out method was used in pricing the transportation inventory, the commodities in the food service inventory, and the gasoline and oil inventory. The weighted average method was used in pricing the maintenance inventory, the stores and distribution inventory, and the food, nonfood, and small equipment part of the food service inventory. Inventory was charged to expense when issued. 2 . Physical plant and equipment was recorded at the date of acquisition at cost. Land donated in prior and current audit periods is recorded at fair market value. Some items of equipment acquired from the Department of General Services, Division of Surplus Property, have title restrictions. Depreciation on physical plant and equipment is not recorded. 3 . Although the accruing of "Interest Payable" in future years on long-term liabilities is not required by the National Committee on Governmental Accounting, this amount is computed and shown to comply with the format of the "District Superintendent 's Annual Financial Report" as prescribed by the Commissioner of Education. 4 . The "Reserve for Encumbrances" is an amount that is segregated from the fund balance and represents obligations in the form of purchase orders or contracts which are not liabilities but which are commitments chargeable to future periods when materials or services are received. 5. State funds for current operations were received primarily from the Florida Education Finance Program (FEFP) administered by the State Department of Education. Allocations were made by the State Department of Education based mainly on reports of full- time equivalent students submitted during the current year by the District School Board. The current year 's allocation is subject to adjustment in subsequent years by the State Department of Education for reporting errors, and other factors. Any adjustments for allocations received during the current year may be made in subsequent year 's allocations. 42 EXHIBIT - I (Continued) MONROE COUNTY DISTRICT SCHOOL BOARD NOTES TO FINANCIAL STATEMENTS June 30, 1976 6. Bonds payable of $3,255 ,000 represent the Board's portion of bonds sold through the Department of Education on behalf of specific community colleges and district school boards. A portion of the future allocations of the Board 's Capital Outlay and Debt Service funds provided by the State from legally obligated moneys for such purpose are pledged as revenue to secure the issues. The responsibility for the principal and interest payments and reserve requirements for the State Board of Education bonds was administered by the State Board of Education and the State Board of Administration: Original Issues Principal Interest Issue Balance _ $ 750,000 Bonds Dated June 1 , 1962 $ 305,000 .00 $ 37 ,332. 50 2 ,990,000 Bonds Dated January 1 , 1974 2,950,000.00 1,840,270 .00 Total $3 ,255,000 .00 $1,877 ,602 .50 The maturity dates of the bonds range from January 1 , 1976, through January 1 , 1995, and the interest rates vary from 2. 75% to 5.5% . Bonds payable of $1 ,110 ,000 represent special act certificates of indebtedness dated June 1, 1966, maturing from the present to June 1, 1991 . The original total issue was $1,500 ,000 with interest rates from 5 1/2% to 4 5/8% . 7 . The beginning fund balance of the Special Revenue (Contracted Program) Fund has been restated to conform to generally accepted accounting principles as set forth in the American Institute of Certified Public Accountants' industry audit guide AUDITS OF STATE AND LOCAL GOVERNMENTAL UNITS. The adjustment of $399,193.56 is due to previous recording of Federal, State, and local grants on a premature basis at the time the grants were initially accepted rather than on the basis of grant expenditures. 43 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Fiscal Year Ended June 30, 1976 JP<n•nrro of As ponrn The School Board of Monroe County, Florida '°"310 FLEMING STREET P. O. DRAWER 1430 nNOCH 4 W ALRER DIRECT KEY WEST. FLORIDA 33040 DISTRICT NC. 3 TrOMAS 5. POUTS DISTRICT NO 4 AFFILIATE ARMANDO SUPEnJNn HENRIDUEZ TELEPHONE Unocu O. SWIFT crop.nt,KALIcEL ENT 13051 296-0523 vicrammoK scHooLsommAGARNEY September 16 , 1977 Mr. Ernest Ellison Auditor General State of Florida Tallahassee, Florida 32304 Subject : Preliminary Audit July 1 , 1975 to June 30, 1976 Dear Mr. Ellison: Thank you for the opportunity to comment on the list of preliminary and tentative adverse audit findings which apply to the period of July 1 , 1975 to June 30 , 1976 . Attached is a statement of explanation concerning all of the findings and what we propose to do to correct same. Sincerely, A. J. Henriquez AJH/vm Encl. 44 EXHIBIT - J MONROE COUNTY (Continued) DISTRICT SCHOOL BOARD STATEMENT FROM AUDITED OFFICIAL For the Fiscal Year Ended June 30, 1976 PROPOSED CORRECTIVE ACTION COVERING AUDIT REPORT Audit JULY 1, 1975 TO JUNE 30, 1976 Report Paragraph Number (11) The practice of pool purchasing with Florida Keys Memorial Hospital has been discontinued effective September 12, 1977. (13) Contract with Grant School: As stated in this para- graph the School Board, through error, did make pay- ments for two students $305 .50 instead of $275.00. Also, we did discover that we did not have one of the agreements for which we were making payments . On May 4, 1977, the Assistant Director of Finance wrote to the Grant School calling this to their attention and requesting they reimburse the School Board for the over- payment in the amount of $1,282 .50. Regarding Section 6A-1.69(3) , there are seven filing cabinets in the Personnel Department that are not fire- proof. Due to the construction and condition of the second floor of the Administration Building, the floor will not support the weight load of additional fireproof cabinets. (15) All personnel records are in the process of being micro- filmed. When this is completed, there will be adequate space for all records to be placed in fire protected files. The Personnel Office will be moved to a new Administration Building in the Summer of 1978, at which time it will be located on the first floor and adequate provision will be made for the proper storage of per- - sonnel records. (17) Internal Revenue Service: The late deposit penalties assessed by. the Internal Revenue Service came about due to the fact that payroll total postings were not avail- able for issuing and making Federal Tax Deposits within the specified time required by the Internal Revenue Service. The IRS requires that Federal Tax Deposits be made three days after each payroll. In some instances this was not possible . To avoid this in the future, we are making advance deposits. T Section 295. 10 Florida Statutes provides that in all positions where employment of persons is not subject to merit system, civil service or other competitive system, (18) preference in appointment or employment shall be given to veterans. Monroe County has given preference to veterans and is in the process of setting up procedures to meet the require- ments of the 1977 Florida Legislature. 45 MONROE COUNTY EXHIBIT - J DISTRICT SCHOOL BOARD (Continued) STATEMENT FROM AUDITED OFFICIAL For the Fiscal Year Ended June 30, 1976 Audit Report Paragraph Number (19) Monthly Travel Allowances a. A new procedure for determining monthly travel allow- ance to the Superintendent of Schools and other School Board employees is being followed. At the beginning of the school year each person to receive a monthly travel allowance is required to complete a typical monthly report. If the amount established by the Board is greater than the amount determined by the typical monthly report, the amount of reimbursement will be decreased. (20) b. Board Members from Districts 3 and 5 were paid for travel between home and various locations in the Key West vicinity based on the local School Board attorney's direction. Upon notice from the Senior Auditor during the 1975-76 audit period, no other payments have been made. (28) Audit Report No. 8836 , paragraph 41, cited that vehicle activity logs were not maintained. A procedure was implemented in October 1976 to maintain vehicle activity logs for each vehicle in the department. However, it was pointed out in the post audit conference for 1975-76 that more than mileage was needed in the activity logs . (29) A procedure will be implemented effective October 1, 1977 of daily vehicle activity logs using the same format as the Bus Route Slip. The format includes driver name, vehicle number, date, point of origin, destination, and mileage. (40) Mail Collections As of October 1, 1977 the procedure to be followed in this area will be as recommended in this audit report; that is , the person opening the mail will be responsible for pre- paring a list of collections and that list to be submitted to the one person designated to be responsible for the accountability of all collections. (41) School Food Service Funds have been budgeted for the purchase of cash registers for each school needing them. Specifications are currently being written and bids will be called upon their completion. The cash registers will be put into use immediately upon delivery to us from the successful bidder. (43) Fixed Assets In order to prevent items not being recorded as additions in the General Fixed Asset Group of Accounts, we are at present reconciling monthly the capital outlay expenditure amounts to the amounts shown as additions in the Fixed Asset Group of Accounts . 46