'. - . \ , ...., : " , ,. , ., " , , , .0 ' " " "'"J 'I, ~t ' '~ ,I " ,~ ... , " ,' ., " " ' .. :,.. " , , ~, " ,, l. ' ... 'or, "f ," !r , " ", " "J , " ., " ' .- , ,. 'STATE OF .GEORGIA " , , , ~, : , DEPARTME'N'T,OFiAUD'ITS -AND ACCOUNTS - .' ,..-.. '~'.... I'~ ;,,'" ' ',':,:,,' " ~,_ .... ,', .' l:: -~~, ~ " I: . ., ,, ;' , '; " ,. ',' ,\ "" " ,- , '. -.' .~ ,, ," , .. ". ,.~, 1 " " f_ , .' ,, " , ., J ,'.' -, I " I ~. I " > '} ",~'I., " ,, , . .. ,-- > " ." ., ,( ., " .' ,, ,. ,' .,, , . . "" .-~," " " ,. " ,. "' ,, " "' ," , -, ,, " " " " , " '., > ' ", ',,' ~ J ,- , " "' ,"" "" . ." , " ,- ... ;' , " ' , '. ". \, t' t, APPLING 'COUNTY 'SOARD OF EDUCATION' .' ' .' ',< ! " i _' "' " '. ' , ..,, ,,, " ,. , .-BAXLEY;' GEORq./A .. , , ' .' . , '. " , ", " .... " . ," , , " " :' " -' ,. ,; " ," " '. ,, , \. " ,' " ,. " ,, ' .. ~ r ," " " '. oJ .' " .' " ',. '.' ," , ,~ '\ .4 .._ ~ I', '. "", " " " " ., '. ',' ..-'" -, " " " . " , I . " .'. , ' . >, ,,' ," , " ,, ': -. "" "" ",. Russell W. Hinton '" ... "" State AUditor, " " " ,, , .' ., ., .- ' .' ,. " . '." ,,' " " " " ,, " '. " ,, " ,' ,' " ~, " APPLING COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDmONAL FINANCIAL INFORMATION COMBINING AND INDIVIDUAL FUND STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 I FIDUCIARY FUND TYPE STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUND 24 SCHEDULES I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 25 2 SCHEDULE OF STATE REVENUE 27 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECI S 29 APPLING COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 30 5 BY SITE 31 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 WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 SECTION III 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 RU"~H I W. HINTON STATE AUDITOR (404) r>56-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wd~hmgton SlrccI, ~ W SUIlC 214 Ailanta. Georg,a 10334-8400 May 13, 2003 Honorable Sonny Perdue, Governor Mcmbers of the General Assembly Members of the State Board of Education and Supenntendent and Members of the ApplIng County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladlcs and Gentlemen We have audited the accompanymg general-purpose financIal statements of the ApplIng County Board of EducatIOn. as of and for the year ended June 30, 2002, as lIsted m the table of contents These general-purpose financIal statements arc the responsibilIty of the ApplIng County Board of Education's management Our responsibIlIty IS to express an opInIon on these general-purpose finanCIal statcments based on our audit Except as discussed m the followmg paragraph, we conducted our audit m accordance with audltmg standards gencrally acceptcd m the UnIted States of Amenca and the standards applIcable to financial audits contamed m Governmcnt Audltmg Standards, Issucd by the Comptroller General of the UnIted States Those standards reqUIre that we plan and perform the audit to obtaIn reasonable assurance about whcther the financIal statements are free of matcnal mIsstatement An audit mcludes eXaImnIng. on a test basIS, eVIdence supportmg the aInounts and disclosures m the finanCial statements An audit also mcludes assessmg the accountmg pnnclples uscd and signIficant estimates made by management, as well as evaluatmg thc overall finanCial statement presentatIon We belIeve that our audit provides a reasonable basIS for our opInIon We dId not obscrve the takmg of elthcr the Federal donated commodIties mventory or purchased foods mventory at June 30, 2002, nor could we satIsfy ourselves as to the accuracy of the aInounts stated as mvcntones through alternative procedures 2002ARL-13 As descnbed m the notes to the general-purpose financial statements, the Board of EducatIon's finanCial statements have been prepared usmg certam accountmg practIces and poliCies winch, m our oplmon, vary m some respects from generally acccpted accounting pnnclples These vanances are descnbed as follows The general-purpose financial statements of the Board of EducatIOn did not contam a General Fixed Assets Account Group to account for property and eqUipment owned by the Board of EducatIon which should be mcluded to conform to generally acccpted accountmg pnnclples School actIVity accounts maIntamed at the indiVidual schools arc not Included m the general-purpose financial statements To conform to generally accepted accounting pnnclples, these accounts should be Included In the general-purpose financial statements The Board of EducatIon did not recognize as expenditures, In the year ended June 30, 2002, a portion of salanes and the corresponding employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Dcpartment of EducatIOn for the State's share of these unrecorded salanes and related benefits were not recorded as revenue m the year under review Conversely, the Similar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were Improperly recorded m the year ended June 30, 2002 To conform to generally acccpted accountIng pnnclples, revenues should be recorded when available and measurable and expenditures should be recorded when mcurred, rather than when funds are received or disbursed The aggregate effects on the general-purpose finanCial statements of these vanances or omiSSions have not been determined, but are believed to be matenal In our opmlOn, exccpt for the effects of such adjustments, If any, on the Special Revenue Fund, as might have been determmed to be necessary had we been able to satIsfy ourselves as to the accuracy of the food service mventones as discussed In the third paragraph, and exccpt for the effects on the general-purpose finanCial statements of the matters referred to m the precedmg paragraph, the general-purpose finanCial statements referred to above present fairly, m all matenal respects, the finanCial pOSItIon ofthe Appling County Board of EducatIOn as of June 30, 2002, and the results of Its operatIons for the year then ended, In conformity With accounting pnnclples generally accepted In the Umted States of Amenca In accordance With Government Audltmg Standards, we have also Issued our report dated May 13, 2003, on our consideratIon of the Appling County Board of EducatIon's mternal control over finanCial reportmg 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 Audltmg Standards and should be read m conjunctIon With thiS report m consldenng the results of our audit 2002ARL-13 Our audit was pcrfonned for the purpose of fonnmg an opmlOn on the general-purpose financial statements of the Appling County Board of EducatIOn taken as a whole. The accompanYing combmmg and mdlVldual fund statements (Exhibits E through I) and the finanCial schedules (Schedules I through 5), which mcludes the Schedule ofExpenditures ofFederal Awards as required by U S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments. and Non-Profit OrgamzatlOns. are presented for purposes of additional analYSiS and are not a reqUired part ofthe general-purpose finanCial statements Such mfonnanon has been subjected to the audltmg procedures applied m the audit of the general-purpose finanCial statements and m our opmlOn, except for the effect of adjustments, I f any, on the Special Revenue Fund, as might have bcen detennmed to be necessary had we been able to sansfy ourselves as to the aCCUrdcy ofthe food service mventones as discussed m the third paragraph, and except for the effects of the matters referred to m the fourth paragraph, such mfonnatlon IS fauly stated, m all matenal respects, m rclatlon to the general-purpose finanCial statements taken as a whole. A copy ofthiS report has been filed as a pennanent record m the office ofthe State AudItor and made available to thc press of the State, as proVided for by OffiCial Code ofGeorgia Annotated SeclJon 506-24 .Respectfully submitted, ~- RWHgp 2002ARL-13 R sell W. Hmton State Auditor APPLING COUNTY BOARD OF EDUCATION APPLING COUNTY BOARp OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 2002 ASSETS Cash and Cash EqUivalents Investments Accounts Receivable Prepa,d Items Inventories Food Donated Commod,bes Purchased Food GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ 4.445.642 01 319.60238 $ 114.000 00 163.78076 614.81136 50,403 64 38,13144 Total Assets $ 4,929,025 15 $_...::8~17.:...:;:34:::6;:,;44::::.. LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Reta,na9es Payable Deferred Revenue Total Llabillbes FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Inventones Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Self-Insurance Undeslgnated Total Fund Equ,ty $ 82,37085 $ 4,340 75 51,954 58 252,33364 26.811 01 18.722 54 $ 4.34075 $ 432.19262 $ 49,890 62 S 50,40364 38,13144 61,04702 4,813.746 76 $ 4,924.684 40 $ 296.61874 385,15382 Total Llabillt,es and Fund Eqully $ 4,929,025 15 $_...::8~17.:...:;:34:::6~44:::.. The notes to the general-purpose flnanclal statements are an ,ntegral part of thIS statement - 2- EXHIBIT "A" TYPES CAPITAL PROJECTS FUND FIDUCIARY FUND TYPE AGENCY FUND TOTALS (Memorandum Only) JUNE 30, 2002 JUNE 30, 2001 $ 481,13116 $ 4,926,77317 $ 4,233,752 59 4,488,37642 4,921,978 80 2,539,161 67 328,04273 $ 33,36186 1,139,996 71 862,55226 984 92 50,40364 38,13144 28,801 71 21,762 48 33,361 86 $ 11,077,28376 $ 7,687,01563 $ 33,361 86 $ 115,73271 $ 29,953 27 56,29533 43,065 61 252,33384 220,06348 26,811 01 95,04788 1,00000 $ 25,00000 43,722 54 29,52199 $ 25,00000 $ 33,361 86 $ 494,89523 $ 418,65223 $ 4,626,498 75 646,051 56 $ 5,272,55031 $ 5,297,550 31 $ $ 49,890 62 $ 22,99278 50,40384 38,131 44 4,626,498 75 61,04702 5,756,417 06 $ 10,582,388 53 $ 28,801 71 21,762 48 2,164,49541 63,73177 4,966,579 25 7,268,363 40 - 3- APPLING COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAlANCES ALL GOVERNMENTAL FUND illES YEAR ENDED JUNE 30, 2002 REVENUES Stale Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services EducaUonal Med'" services General Administration School Administration BUSIness Administration Maintenance and OperaUon of Plant Student Transporta~on Services Central Support Services Other Support Services Food Services Operation Commumty Services OperatIOns Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Opera~ng Transfers In Operating Transfers Out Total Other FinanCing Sources (Uses) Excess of Revenues and Other FinanCing Sources over (under) ExpendItures and Other FlnanclllQ Uses FUND BALANCE JULY 1 Food Inventory' Net Change In Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND S 13.252.290 25 S 8.731,42172 375.74986 S 22.359,461 83 S 940.69697 3.641,162 74 320,69092 4.902,550 63 S 14,747.465 64 $ 827,560 94 444,49865 677.37670 380.67603 1.274.892 38 121.64536 1.767.338 38 1.060,31947 70.88643 25.694 20 10,448 00 2,519.30167 134.01210 144.077 37 5.920 12 126.304 00 9263 31,05413 58.38571 471.69329 1.290,077 87 109,67347 $ 21,408.802 38 $ S 95O,659 45 S 4,890.592 36 11,958 27 S S -232,469 18 $ 232,46918 $ 64.706 54 64.706 54 S 718.19027 S 4,206,494 13 76,664 81 270,51812 21,601 93 16,368 96 FUND BALANCE JUNE 30 s 4.924.684 40 S_ _.:::365~.1:,;5:::3~8~2. The notes to the general-purpose finanCial statements are an Integral part of thls statement -4- EXHIBIT"B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 S 14,192,98722 S 13,444,564 77 3,641,16274 3,266,833 01 S 2,396,23381 11,127,65553 11,014,968 83 75,11899 771,55977 761,37689 S 2,471,352 80 S 29,733,36526 S 28,507,74350 S 17,266,76751 S 16,393,857 11 S 157,91628 961,57304 588,57602 683,29682 506,98003 1,274,89238 121,73799 1,798,39251 1,118,70518 70,68643 497,38749 1,290,077 87 120,12147 157,91628 911,190 38 692,920 35 686,97584 550,67296 1,278,320 19 127,66120 1,799,64961 1,092,43874 1,006 42 676,440 14 1,408,394 89 142,368 13 431,480 61 S 157,91628 S 26,457,311 02 S 26,193,396 57 S 2,313,43652 S 3,276,054 24 S 2,314,34693 S 167,76264 S 232,46918 $ 309,02878 -232,469 18 -309,02878 S 167,76264 S 000 S 000 S 2,481,19916 S 3,276,054 24 S 2,314,34693 2,791,351 15 7,268,363 40 4,944,490 78 21,801 93 16,368 96 3,321 40 6,204 29 s 5,272,550 31 S 10,582,388 53 S - 5- APPLING courm' BOARp OF EDUCATION COMBINED SIDEMEN! OF REVENUES EXPENDITURES AND CHANGES IN FUNp BALANCES BUDGET AND ACTIJAl. - INON-GAAP BASIS) GENERAl.. ANp SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 20Q2 EXHIBIT "C" GENERAL FUND BUDGET ACTUAL REVENUES State Funds Federal Funds Taxes Other Funds S 12.461.31478 S 13.252.290 25 120 000 00 8750,900 00 8,731,421 72 153,600 00 375,74986 Total Revenues EXPENDITURES S 21,495,71478 S 22.359.461 83 Cu",,", Instructron Support Services Pupil ScI'VJCeS Improvement of Instructional SeMCeS Educabonal Media SeMC8S General Adrrnmstrahon School AclmlmstrallOn Buslness Ad:rnnStrallon Maintenance and Operation of Plan1 Studen1 TransportaIJon SeMC&S Cemral Support S8lVIC8'S Other Support el'Vk;es Food ServlC8S OperatIon Community Servtces OperabonS Capital Outlay S 15374,332 24 S 14,747,46584 891,033 10 52100084 674,62790 416.61200 1331.453 71 125,040 00 1,754 180 00 1.095,489 29 85,800 00 26.14570 827.560 94 444.498 65 6n 376 70 380.678 03 1,274,89238 121,645 36 1.787,338 38 1,060,31947 70.866 43 25.694 20 200.000 00 1044800 Total Expenditures S 22,495,71478 S 21.408.802 38 Excess of Revenues over (under) expenditures S -1,000.000 00 S 950.659 45 OTHER FINANCING SOURCES (USES) Other Sources Other Uses S -232.46918 Total Other Financing Sources (Uses) S -232,469 18 Excess of Revenues and Other Ftrlandng Sources over (under) ExpendltLreS and Other Flnanang Uses S -1.000.000 00 S 718,190 27 FUND BALANCE JULY 1 2001 4,021,50230 4,206,494 13 Adjustments Food Inventory Net Change In Paned Donated Commodltl8S Purchased Foods 68 12 FUND BALANCE JUNE 30 2002 S 3,02t570 42 S 41924,684 40 SPECIAL REVENUE FUND BUDGET ACTUAL S 750.268 80 S 940.89697 2.393.37814 3,641,16274 333.27039 320.690 92 S 3,476.917 33 S 4.902.550 63 S 1,611,16228 S 2,519,301 67 259.504 55 141.959 70 86,59300 134,01210 144 on 37 5,920 12 126.304 00 18.911 00 92 63 31.054 13 58.385 71 65.n500 1,271,23750 471.69329 1.290.077 87 109.67347 S 3.455.14303 S 4.890,59238 S 21.77430 S 11,958 27 S 64 706 54 S 84,706 54 S 21.77430 S 7866481 350.29248 270,51812 18982 21.80193 1636896 S 372.256 60 S 385.15382 The notes lo the general-purpose financtal statements are an IntegraJ part of this statement -6- APPLING COUNTY BOARD OF EOUCAnON EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Notc I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The ApplIng County Board of Education (School OIStnct) 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 Supenntendent appomted by the Board The School Dlstnct 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 School Dlstnct IS a pnmary govcrnment and consists of all the organIzations that compose ItS legal entity FUND ACCOUNTING The School Dlstnct uses funds to report on Its finanCial posItion and thc results of Its operations Fund accountmg IS designed to demonstrate legal complIance and to aId financIal management by segregatIng transactions related to certaIn governmental functions or activIties A fund IS a separate accountmg entity WIth a self-balancing set of accounts General Fixed Assets are recorded as expenditures In the vanous funds at the time ofpurehase A General Fixed Assets Account Group IS not presently maIntaIned by the School OIStnCt To confonn to generally accepted accountmg pnnclples, a General FIxed Assets Account Group should be mamtaIned for reportmg the cost of assets acqUired by governmental fund types Although "school activIty accounts" are mamtaIned at the mdlvldual schools, neither the assets, lIabilIties and fund eqUity, nor the revenues, expenditures and changes m fund balances of these accounts are reflected In these finanCIal statements To confonn to generally accepted accountmg pnnclples, these accounts should be recorded m the general-purpose finanCIal statements The general-purpose finanCIal statements account for all State, Federal, Taxes and Other funds under control of the School Dlstnct, m complIance With generally accepted accountmg pnnclples applIcable to governmental umts, unless otherwise disclosed m these notes Funds presented m thiS report are as follows GOVERNMENTAL FUND TYPES - are used to account for all or most of the School Dlstnct's educatIOnal actIVIties Governmental Fund Types Include GENERAL FUND - the fund used to account for all finanCIal resources of the School Dlstnct except those reqUired to be accounted for m another fund These tranSactiOns relate to resources obtaIned and used for services proVIded by a board of educatIOn SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capItal projects) that are legally restncted to expendItures for specified purposes These funds are receIved pnmanly from the Georgia Department of Education and from the Federal government to accomplIsh specific educational objectIves -7- APPLING COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for finanCial resources to be used for the acquISItion or constructIOn of maJor capital faCIlIties. FIDUCIARY FUND TYPE - the funds used to account for assets held by a government unit In a trustee capacity or as an agent for indiViduals, pnvate orgaruzatlOns, other government unitS and/or other funds This fund Includes AGENCY FUND - the funds used to account for assets held m a fidUCiary capacity for other funds, governments, or indiVIduals. BASIS OF ACCOUNTING The accountmg and finanCial reportmg treatment applIed to a fund IS determined by Its measurement focus All governmental funds are accounted for usmg a current finanCial resources measurement focus With thiS measurement focus, only current assets and current lIabilIties generally are mcluded on the balance sheet Operatmg statements of these funds present mcreases (I e ,revenues and other financmg sources) and decreases (i e , expendItures and other finanCing uses) m 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 m the governmental funds Agcncy funds are purely custodial m nature and do not mvolve measurement ofresults ofoperations. Governmental funds are accounted for usmg the modIfied accrual basiS of accountmg under which Revenues are recogmzed when susceptible to accrual (I e., when they become both measurable and available) "Measurable" means the amount of the transaction can be determmed and "avaJ!able" means collectible wlthm the current penod or soon enough thereafter to be used to pay lIabilIties of the current penod The School Dlstnct considers receivables collected wlthm sixty days after yearend to be available Property taxes, sales taxes and mterest are conSidered to be susceptible to accrual Nonexchange transactions, m which the School Dlstnct gives (or receives) value WithOUt directly recelvmg (or glvmg) equal value m exchange, mclude property taxes, local option sales taxes, Intergovernmental grants and donations. Revenue for property taxes IS recogrnzed m the fiscal year for which the taxes are leVIed Revenue from sales taxes IS recognIzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donatlons IS recogmzed m the fiscal year In whIch all elIgIbIlIty reqUirements have been satisfied Expenditures are generally recognized when the related fund lIabilIty IS mcurred A departure from the above defimtlons IS the accountmg treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources aVailable from the Georgia Department of Education for the State's share of these contracts Durmg fiscal year 2002, a -8- APPLING COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 3D. 2002 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES substanllal number ofpersonnel ofthe School Dlstnct were employed for a one hundred and mnety day penod begmnIng In August 200 I and ending In early June 2002 Personnel contracts for tlus employment penod speCify that compensallon be paId In twelve equal monthly payments begmrung m September 2001 and ending m August 2002. Statc grants to fund the State's share of these contracts were disbursed from the Georgia Department of EducatIOn to the School Dlslnct In the same twelve months. As of June 30, 2002, compensallon under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made Payments for these two months were made and recorded as expendItures by the School Dlstnct subsequent to June 30, 2002 Also, the State's portIOn of the compensabon paid In July and August 2002 was received and recorded as revenue In the fiscal year subsequent to June 30, 2002. Conversely, the Similar expenditures and related revenues for contractual ServIces completed priorto June 30, 2001, were recorded In the year ended June 30, 2002 Generally accepted accountmg pnnclples requIre that revenues be recorded when available and measurable and that expenditures be recorded when Incurred, rather than when funds are receIved or disbursed Agcncy funds are accounted for usmg the modIfied accrual basIS ofaceountIng m recognlzmg assets and hablhlles BUDGET The Apphng County Board of Educallon's budget IS a complete finanCial plan for the School Dlstnct's fiscal year and IS based upon estImates of expenditures together WIth probable funding sources There IS no statutory prohlblllon regarding overexpendlture of the budget at any level. The budget for all governmental funds IS prepared by fund, funcllon and object The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basIS other than generally accepted accountmg pnnclples The budget process begms when the School Dlstnct's adnurustrallon prepares a tentatIve budget for the Board's approval. After approval oftlus tentallve budget by the Board, such budget IS adverlised at least once In a newspaper of general cIrculalion m the locahty At the next regular meeting ofthe Board after advertIsement, the Board receives comments on the tentallve budget, makes reVISions as necessary and adopts a final school budget. This final budget IS then submitted, m accordance WIth prOVISIOns of the Quahty BasiC Education Act, OCGA Sccllon 20-2-167(c), 10 the GeorgIa Department of Educallon The Board may Increase or decrease the budget at any lime dunng the year All unexpended budget authonty lapses at fiscal year-end CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash eqUIvalents consIst ofcash on hand, demand depOSIts and short-term mvestmcnts WIth ongInal malunlles of three months or less from the date of acqwsilion In authonzed finanCial InSlitutlOns Georgia Laws OCGA 45-8-14 authonze the School Dlstnct to depOSIt Its funds In one or more solvent banks or Insured Federal savmgs and loan assoclallons -9- APPLING COUNTY BOARD OF EOUCAnON EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Notc 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School Dlstnct In nonparticipatIng Interest-earmng contracts (such as certificates ofdeposIt) and repurchase agreements are reported at cost PartiCipatIng Interest-earmng contracts and money market Investments WIth a matunty at purchase ofone year or less are reported at amorltzed cost Both partlClpaltng Interest-earnIng contracts and money market Investments With a matunty at purchase greater than one year are reported at fair value The Official Code ofGeorgta Annotated SectIon 36-83-4 authonzes the School Dlstnct to invest ItS funds and In selectIng among opltons for Investment or among InStitUltOnal bIds for depOSitS, the lughest rate ofreturn shall be the obJective, gtvcn eqUivalent condItIOns of safety and liqUidIty Funds may be mvested m the follOWIng (I) ObligatIOns ISSUed by the State of Georgta or by other states, (2) ObligatIons ISSUed by the Umted States government, (3) ObhgatlOns fully msured or guaranteed by the Umted States government or a Uruted States government agency, (4) Obhgatlons of any corporatIOn of the Uruted States government, (5) Pnme banker's acceptances, (6) The Local Government Investment Pool administered by the State ofGeorgta, Office of Treasury and Fiscal ServICes, (7) Repurchase agreements, and (8) Obhgatlons of other pohtlcal subdIVISIOns of the Statc of Georgta. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expendttures made but not reimbursed and other receIvables dIsclosed from InformatIon aVailable Recelvablcs arc recorded when either the asset or revenue recogtUtlon cnteria has been met ReceIvables recorded on the general-purpose finanCIal statements do not mclude any amounts whIch would necessItate the need for an allowance for uncollectIble receIvables PROPERTY TAXES The Apphng County Board of CommIssIoners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 27,2001 (levy date) Taxes were due on December 20,2001 - 10- APPLING COUNTY BOARD OF EDUCATION EXHffiTT "D" NOTES 10 THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (lIen date) Taxes collected wlthm the current fiscal year or WIthin 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The ApplIng County Tax Commissioner bIlls and collects the property taxes for the School Dlstnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $8,705,805.30 The tax mIllage rate levIed for the 2001 tax year (calendar year) for the ApplIng County Board of EducatIon was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations ll.Jlmllls SALES TAXES Special Purpose Local Option Sales Tax revenue dunng the year amounted to $2,396,233 81 and IS to bc used for capItal outlay for educatIOnal purposes or debt service Tlus sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIES Inventones of donated food commodities used m the preparatJon of meals are reported on the Combmed Balance Sheet at theIr Federally assIgned value Purchased foods IOventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commodities are recorded as revenues and expendltJires at the tJrne commodIty Items are receIved Purchased foods mventones are recorded as expendItures at the time of purchase The mventones reported on thc balance sheet for donated food commodIties and for purchased foods are equally offset by reservatJons of fund balance which mdlcates that these amounts do not constJlute "aVailable spendable resources" even though they are a component of net current assets COMPENSATED ABSENCES Compensated absences represent oblIgations of the School Dlstnct relatmg to employees' nghts to receIve compensation for future absences based upon servIce already rendered Tlus oblIgatIOn relates only to vestmg accumulatmg leave m whIch payment IS probable and can be reasonably estimated No lIabIlIty has been recorded m the mdlVldual funds for the current portIon of thiS obligatIon as thiS amount IS deemed Immatenal to the general-purpose finanCIal statements Additionally, thc dollar value of accumulated compensated absences at June 30, wluch Will be payable from future resources has not been recorded m the General Long-Term Debt Account Group as thiS lIabIlIty IS also deemed to be Immatenal to the fair presentation of these finanCIal statements INTERFUND TRANSACTIONS The School Dlstnct has the followmg types of mterfund transactJons - II - APPLING COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reimbursements ofexpendItures Imnally made from a fund that are properly applIcable to another fund are recorded as expenditures m the relmbursmg fund and as reductions of expendItures m the fund that IS reImbursed. Operating transfers are recorded for all mterfund transaclions other than reImbursements MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose financial statements are caplioned "Memorandum Only" to mdlcate that they are presented only to faCIlItate financIal analysis. Data m these colunms do not present financial pOSItIOn or results of operatIOns m confomuty With generally accepted accountmg pnnclples. Neither are such data comparable to a consolIdatIon Interfund elImmatlOns have not been made m the aggregatIon of thiS data Notc 2 DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS OffiCIal Code of GeorgIa Annotated (OCGA) SectIon 45-8-12 proVides that there shall not be on depOSit at any lime m any depOSitory for a tIme longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate ofthe face value of such surety bond and the market value of secunnes pledged shall be equal to not less than 110 percent ofthe publIc funds bemg secured after the deductIOn ofthe amount ofdeposit msurance If a depOSitory elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe secunlIes pledged to secure a pool ofpublIc funds shall be not less than 110 percent ofthe daIly pool balance. OCGA SeclIon 45-8-11 (b) proVIdes an officer holdmg publIc funds may, m Ius dlscrelion, waive the reqUIrement for secunty m the case ofoperating funds placed m demand depOSit checkIng accounts Acceptable secunty for depOSits consIsts of anyone of or any combmalion of the followmg (1) Surety bond SIgned by a surety company duly qualIfied and authonzed to transact busmess wlthm the State of Georgia, (2) Insurance on accounts proVided by the Federal DepoSIt Insurance Corporanon, (3) Bonds, bills, notes, certIficates ofmdebtedness or other direct oblIgalIons of the Umted States or of the Statc of Georgia, (4) Bonds. bills, notes, certIficates of mdebtedness or other oblIgatIOns of the counlies or mUnicIpalIties of the State of GeorgIa, (5) Bonds of any publIc authonty created by the laws of the State of GeorgIa, provldmg that the statute that created the authonty authonzed the use of the bonds for thiS purpose, - 12 - APPLING COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS (6) IndustrIal rcvenue bonds and bonds of development authontles created by the laws of thc State of Georgia, and (7) Bonds, bills, notes, cemticates of Indebtedness, or other oblIgations of a SUbSIdiary corporatIOn of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnclpal and Interest or debt oblIgations ISSUed by the Federal Land Bank, the Federal Home Loan Bank, the Federal IntennedIate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage AsSOCIation, and the Federal National Mortgage AsSOCiation CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $6,318,270 70, The amounts ofthe total bank balances are clasSified Into three categones of credIt nsk Category I - Cash that IS Insured (e,g, Federal depOSitory Insurance) or collateralIzed WIth secuntles held by the School DistrIct or by the School DistrIct's agent In the School DistrIct's name Category 2 - Cash collateralIzcd With secuntles held by the pledgmg finanCial Institution's trust department or agent In the SchOOl DistrIct's name Category 3 - UncollateralIzed depoSits (TIus Includes any bank balance that IS collateralized With secuntles held by the pledging financial Institution, or by ItS trust department or agent but not In the School DistrIct's name) The School DistrIct's depOSits are clasSified by nsk category at June 30, 2002, as follows Risk Category Bank Balance I $ 304,75344 2 304,587,16 3 5,708,930 10 Total $ 6,3 I8,270 70 CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carryIng value of the School DistrIct's total Investments was $4,789,639 09 which IS matenally the same as fair value Tills Investment consisted entirely of funds Invested In the Local Government Investment Pool admlmstered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqUired to be categonzed SInCe the School DistrIct did not own any speCific Identifiable secuntles In the pool. The Investment polIcy of the State of Georgia, Office of Treasury and FIscal ServIces for the Local Government Investment Pool (Pnmary LiqUIdIty PortfolIo) does not proVide for Investment In denvatlves or slD11lar Investments A descnptlon ofthe Pnmary LiqUIdity Portfoho IS as follows - 13- APPLING COUNfY BOARD OF EDUCAnON EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS The Pnmary LiqUIdity Portfolio consIsts of GeorgIa Fund 1, which IS a combmatlOn local and state government mvestment pool, and Fund 6 GeorgIa Fund liS a stable net asset value mvestment pool whIch follows Standard and Poor's cntena for AAAm rated money market funds The pool IS not registered With the SEC as an mvestment company but does operate Georgia Fund 1 m a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and IS considered to be a Rule 2a7 like pool The pool's pnrnary obJeclives are safety of capItal, mvestment mcome, liquidity and dlveTSlficatJon while mamtammg pnnclpal ($1 00 per share value). Net asset value IS calculated weekly to ensure stability The pool dlstnbutes earrungs (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 equlvalcnts and mvestments are reported at cost whIch approximates fair value The pool does not Issue any legally bmdmg guarantees to support the value ofthe shares. Particlpalion m the pool IS voluntary and depOSIts consIst of funds from local governments; operatJng and trust funds of Georgia's state agencies, colleges and umversllies, and current operatmg funds of the State of Georgia's General Fund Investments m GeorgIa Fund 1 and Fund 6 are directed toward short-term mstruments such as U S Treasury obligatIOns, secunlies ISSUed or guaranteed as to pnnclpal and mterest by the U S Government or any of Its agencies or mstrumentalilies, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days. The weighted average matunty for GeorgIa Fund 1 on June 30, 2002, was 0 12 years The average Investment duratIOn for Fund 6 on June 30, 2002, was 0.75 years Note 3 NON-MONETARY TRANSACTIONS The School Dlstnct receives food commodllies from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commodIlies are recorded at their Federally asSigned value See Note 1 - Inventories Note 4 RISK MANAGEMENT The School Dlstnct IS exposed to vanous nsks of loss related to torts; theft of, damage to, and destructIOn of assets, errors or omissIons, Job related Illness or InJunes to employecs, acts of God and unemployment compensatJon The School Dlstnct has obtamed commercIal Insurance for nsk of loss assoCiated With torts, assets and errors or omISSIOns The School Dlstnct has neither SIgnificantly reduced coverage for these nsks nor Incurred losscs (settlements) which exceeded the School Dlstnct's msurance coverage m any of the past three years Thc School Dlstnct has elected to self-Insure for all losses related to acts of God The School Dlstnct has not expenenced any losses related to thiS nsk In the past three years - 14 - APPLING COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 4 RISK MANAGEMENT The School District IS self-msured With regard to unemployment compensatIOn claIms In connectIOn WIth thiS program, a self-msurance reserve has been estabhshed wlthm the General Fund by the School Dlstnct The School DIstnct accounts for claims wlthm the General Fund WIth expendIture and lIability bemg reported when It IS probable that a loss has occurred, and the amount of that loss can be reasonably estlll1ated Changes m the unemployment compensatIon claIms lIabilIty durmg the last two fiscal years are as follows Begmnmg of Year LiabilIty Claims and Changes m EstImates Claims Paid End of Year LiabilIty 2001 S 2.112 00 $ 000 $ 2,11200 $ 000 2002 $ 000 $ 5.47675 $ 1,13600 $ 4,340 75 The School DIstnct partiCipates m the Georgta EducatIOn Workers' Compensanon Trust, a pubhc enlity nsk pool orgaruzed on December I, 1991, to develop, Implement and admlIllSler a program of workers' compensalion self-msurance for ItS member organizatIons The School Dlstnct pays an annual premium to the Trust for lis general msurance coverage Additional msurance coverage IS prOVided through an agreement by the Trust WIth the Uruted States Fldehty and Guaranty Company to prOVide coverage for potenliallosses sustained by the Trust m excess of $350,000,00 loss per occurrence, up to $2,000,000,00 The School DIstnct has purchased surety bonds to proVide addItIonal Insurance coverage as follows Posllion Covered Amount Supenntendent Each Employee $ 100,000,00 $ 10,00000 NoteS ON-BEHALF PAYMENTS The School DlStnCt has recogmzed rcvenues and expendllures m the amount of $315,061 74 for health msurance and retirement contnbulions paId on the School DIstnct's bchalfby the followmg Statc AgenCies Georgta Department of Educalion PaId to the GeorgIa Department ofCommumty Health For Health Insurance of Non-Certified Personnel In the amount of $256,333 73 - 15 - APPLING COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 5. ON-BEHALF PAYMENTS PaId to the Teachers RetIrement System of GeorgIa For Teachers Retirement System (TRS) Employer's Cost In thc amount of$32,398.01 Office of Treasury and FIscal ServICCS Paid to the PublIc School Employees Retirement System For PublIc School Employees Retirement (PSERS) Employer's Cost In the amount of $26,330 00 Note 6 CONTINGENT LIABILITIES Amounts receIved or receIvable pnnclpally from the Federal government are subJcct to audIt and review by grantor agencIes ThIs could result In requests for reImbursement to the grantor agency for any expendlturcs whIch are disallowed under grant terms The School Dlstnct belIeves that such dIsallowances, If any, wIll be Immatenal to Its overall finanCIal posItion. Note 7. SUBSEOUENT EVENTS On March 18, 2003, the voters of ApplIng County voted m favor of a contmuatlOn of a SpecIal Purpose Local Option Sales Tax referendum for educational purposes. The ImpOSItion of the tax approved by the voters, as stated m part of the OffiCIal Ballot of Apphng County, IS as follows "Shall a speCIal one pcrcent sales and use tax for educational purposes be unposed m Applmg County for a penod not to exceed 20 calendar quarters (5 years), begmmng upon the exhaustion of thc eXlstmg sales and use tax, for the purpose of ralsmg not morc than $6,000,000 of net proceeds by saId tax, to be used for acqumng, constructmg and eqUlppmg new school bUIldIngs and faclhtles useful and deSIrable m connection thereWIth, mcludmg a new hIgh school audItonurn; acqumng land for school purposes, system-wIde technology Improvements; acqUlnng new school eqUIpment, mcludmg school buses, purchasmg textbooks, addmg to, rcnovatmg, repalnng, Improvmg, furnIshIng and eqUlppmg eXlstmg school bUlldmgs and other bUIldIngs and faclhtles useful and desIrable m connectIon therewIth, mcludIng, but not hmlted to, addItional classrooms and pavmg parkmg lots, the maxImum amount of the projects to be paId With sales and use tax proceeds WIll be $6,000,000 " Note 8 ACCUMULATED EMPLOYEES' LEAVE NoncertJfied employees earn annual leave rangIng from five to fifteen days each year dependmg upon the employee's length of contmuous service WIth a maximum accumulation of fifteen days. Employees are paid, at the current rate of pay, for unused accumulated leave upon retirement or lennmalion of employment. See Note 1 - Compensated Absences - 16 - APPLING COlJNfY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 9 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) IRS PLAN DESCRIPTION Substantially all teachers, awmmslratlve and clencal personnel employed by local school dlstncts are covered by the Teachers Retirement System of Georgia (IRS), whIch IS a cost-shanng multiple employer defined benefit pensIOn plan IRS proVides servIce retirement, dIsabIlity retIrement and SurviVOrs benefits for Its members m accordance With State statute The Teachers Retirement System of Georgia Issues a separate stand alone finanCial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts. IRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School DlstnCt who are covered by IRS are reqUIred by State statute to contnbute 5% of their gross eammgs to IRS The School Dlstnct makes monthly employer contnbutlons to IRS at rates adopted by the IRS Board of Trustees m accordance WIth State statute and as adVIsed by thcIr mdepcndent actuary The reqUIred employer contnbutlon rate IS 9 24% and employer contnbutlons for the current fiscal year and the precedmg two fiscal years are as follows. Fiscal Year Percentage Contnbuted ReqUIred Contnbutlon 2002 2001 2000 100% 100% 100% $ 1,476,14268 $ 1,725,707 15 $ 1,598,920.30 - 17- APPLING COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 ASSETS Cash and Cash EqUivalents Investments Accounts Receivable Inventones Food Donaled Commodlbes Purchased Food Tolal Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 226,37997 $ 96,60514 114,00000 19,24501 6,72024 50,40364 38,13144 $ 448,160 06 $ _ _.:.10:;;3~,3:;;2:;;;5;.;3;;;;8:.. LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salanes Payable Expired Granl Balances Payable Deferred Revenue Tolal liabilities FUND EQUITY Fund Balances Reserved For Inventones Food Donaled Commodities Purchased Food Unmserved Undeslgnaled Tolal Fund Equity TOlalllab1lltles and Fund Equity See noles to the genera~purposefinanCIal statements 18 - $ 9,90934 $ 16,35295 53,09690 78,701 76 8,27067 $ 63,006 24 $ 103,32538 $ 50,40364 38,13144 296,61874 $ $ 385,15382 $ 000 000 $ 448] 16006 $ _ _~10;;;;3:';13;;:;2;;:.5.3.8:::. EXHIBIT"E" FEDERAL PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 322,98511 $ 149,30798 114,00000 214,000 00 $ 588,84611 614,811 36 277,486 22 50,40364 38,13144 28,801 71 21,76248 s 588,846 11 $ 1,140,331 55 $ _ _;;::69;:.1~,3::;;5~8~3:::9_ $ 405,35596 S 405,35596 $ 34,78571 25,69229 51,954 58 43,06561 120,53498 252,33364 218,43070 18,54034 26,811 01 95,036 26 18,72254 18,72254 29,521 99 $ 588,846 11 $ 755,177 73 $ 420,84027 $ 50,40364 $ 28,801 71 38,13144 21,76248 $ ~O~OO~ 296,61874 219,95393 $ 000 $ 385,153 82 $ _--=2",7.::.0,,,,5.:.:18,-,-,12,- $ 588,64611 $ 1,140,331 55 $ _...:6:;,:9:.;,1~,3,;;:;58::.;3::.:9:.. - 19- APPLING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruc1Jon Support serviceS Pupil Services Improvement of InstruclJonal Services Educabonal Media Sel'Vlces General Admlnlstrabon Business Admlnlstrabon Maintenance and Operation of Plant Student Transportation Services Other Support services Food Servoces Operabon Community Services Operabons Capital Outlay Total Expenditures Excess of Revenues over (under) Expendrtures OTHER FINANCING SOURCES Operabng Transfers In Excess of Revenues and Other FinanCing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory Net Change In Penod Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general-purpose financial statements - 20 SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 102,38600 $ 941,16576 320,690 92 $ 1,364,242 68 $ 838,31097 838,31097 $ $ 1,287,577 87 699,28261 96,43945 3,54876 2,42084 9263 20,85168 15,67500 $ 1,287,577 87 $ $ 76,664 81 $ 838,31097 000 $ 76,664 81 $ 270,51812 21,601 93 16,36896 $ 385,153 82 $ 000 000 -:o~O:::O:.. EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 940,69697 $ 829,871 06 $ 2,699.996 98 3,641,16274 3,286,833 01 320,69092 310,49345 $ 2,699,99698 $ 4,902.550 63 $ 4,427,19752 $ 1,820,01906 $ 2,519,301 67 $ 1,980,176 87 37,572 65 140,52861 5,92012 123.88316 10,20245 42,71071 471,69329 2,50000 109,67347 134,01210 144.077 37 5,92012 126,304 00 9263 31,054 13 58,38571 471,69329 1,290,077 87 109,673 47 137,00664 166,61984 144,51887 8,21481 32.78208 650,294 44 1,408,394 89 137,954 22 22,20597 $ 2,764,70352 $ 4,890,59236 $ 4,688,168 63 $ -64,70654 $ 11.95827 $ -260,971 11 64,70654 64.70654 59.67530 $ 000 $ 76,664 81 $ -201,29581 000 270.51812 462,28824 21,60193 16,36896 3,32140 6,204 29 $ 000 $ 385,153 82 $_.....:2;,:,7,;:;0,,;;;5.:.:18~1.:.:2_ - 21 - APPLING COUNTY BOARD OF EpUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 39 2002 EXHIBIT"G" ASSETS Gash and cash EqUIvalents Investments Accounts ReceIVable REGULAR SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 39, 2002 JUNE 30, 2001 $ 439,477 26 $ 41.65390 $ 481,13116 $ 396,37210 231,57439 4,256,80212 4,488,37642 2,046,12849 328,04273 328,04273 349,850 56 Total Assets $ 671.05156 $ 4,826,498 75 $ 5,297,550 31 $ 2,792.35115 LIABILITIES AND FUND EQUITY LIABILITIES Deferred Revenue Retalnages Payable Total L1abUl~es FUND EQUITY Fund Balances Reserved For SPLOST Projects Unreserved Undeslgnated Total Fund EqUIty $ 25.000 00 $ 25,00000 $ 25,00000 $ $ 25,000 00 $ 1.00000 1,000 00 $ 4,626,498 75 $ 4,626,498 75 $ 2,164,495 41 $ 646.05156 000 646,051 56 826,855 74 $ 646,05156 $ 4.626,498 75 $ 5.272.550 31 $ 2,791,35115 Total Liabilities and Fund EqUIty $ 671,05156 $ 4.626.49875 $ 5,297,550 31 $ 2,792,35115 See notes to the general-purpose finandal statements - 22- APPLING COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 3Q 2QQ2 EXHIBIT "H" REVENUES Taxes Other Funds Total Revenues EXPENDITURES Capllal OuUay Travel of EmployeM Building and BUIlding Improvements Total Expenditures Excess of Revenues over (under) expendItures OTHER FINANCING SOURCES OperatlllQ Tralllfers In Excess of Revenues and Other Anancmg Sources over (under) Expenditures FUND BALANCE JULY 1 REGULAR SPECIAL PURPOSE LOCALOpnON SALES TAX TOTALS YEAR ENDED JUNE 30, 20Q2 JUNE 3Q, 2001 S 2,396 233 81 S 2396,23381 S 2,134,339 Ql S 9,349 ~6 65,76953 75,11899 58,809 04 S 9,349~ S 2,~82,QQ3 34 S 2,~71,352 8Q S 2, 193, 1~8 05 S 51~ 7Q 157,35538 S S ~6 2Q 51~ 7Q 157AOl 58 S 31~,598 88 S 157,87Q Q8 S ~6 20 S 157,91628 S 31~,598 88 S -1~8,52Q 62 S 2,~1,9571~ S 2,313 ~38 52 S 1,878,~9 37 187,716 ~8 2Q 167,76264 249.35348 S 19,19582 S 2,~2,QQ3 34 S 2 ~81,19916 S 2,127,90285 628,855 7~ 2,l64A95 ~1 2,791,351 15 663,830 FUND BALANCE JUNE 3Q $ 646,05156 $ 4,626,49875 $ 5[272 1 55031 S 2:791.351 15 See notes to lhe general-purpose financial statements - 23- APPLING COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2002 EXHIBIT "I" FAMILY CONNECTION ASSETS Cash and Cash EqUivalents Accounts ReceIVable LIABILITIES Funds Held for Others BALANCE JULY 1, 2001 ADDITIONS DEDUCTIONS BALANCE JUNE 30, 2002 $ 29,95327 $ 80,13007 $ 29,95327 33,361 86 83,53866 $ 29,95327 -33,361 86 33,36186 $_ _....:0;:.:0:::0:. $ 113,49193 $ 113,49193 $, ..:0;:.:0::::0:,. $,_ _....:o::.;o~o:. $ 113,49193 $ 113,49193 $ ..;O~OO;:. See notes to the general-purpose finanCial statements - 24- APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE30 2002 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agncultulll, U S Department 01 Child NUlrtUon Cluster Pass-Through From Georgia Department of Educalton Food and NutrtUon Program FocxI Services School Breakfast Program Natlonal School Lunch Program Total Chl)d Nutnbon Ouster Other Programs Pass-Through From Geor!lla Department 01 Education Food and Nutnbon Program Food Dtstr1bubon Program (1) Pass-Through From Office of 8choot Readiness Food and Nutrlbon Program Child and Adult Care Food Program Total U S Department 01 AgriCUItuIll Education. U S Department of Special Education Cluster Pass-Through From Georgia Department of Educatloo Inchviduals with DtsabrllUes EducabOn Act Part B - Special Educallon capacrty BUIlding Improvemont Pre_ Flow Through Total Speclal Educabon Cluster Other Programs Direct Safe and Drug-Free Schools and Communlttes National Program PSlSS-Through From Georgla Department of Education Elementary and Secondary EducaUon Act rrtle 1 Grants to Local Educabonal Agenaes TiUe" Ei&enhower FJrofesslonal Davetopment Title III Technology Uteracy Challenge Fund Grants Tille VI InnovatNe Education Program Strategies CJass Size ReductJon Vocational Education - BaSIC Grant& to States HIgh School Program Basic Grant Pass-Through From FltSt DIstrict Regk>nal Education Agency dIbIa lJve Oak MlQl"lInl EducatlOO Agency Elementary and Secondary EducaUon Act TItle I Migrant Education Total U S Department of EducatIon CFDA NUMBER PAS$THROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITlJRES IN PERIOD 1055J 10555 NlA S 196,93771 (2) NlA 636,744 95 $ 1,192,77776 (3) $ 635,68266 $ 1,192.777 76 10550 10658 NlA 94,60011 94,60011 NlA 10,66299 (2) $ 941,16576 $ 1,287.577 87 84 027 84 027 84 173 NlA $ 13,16800 $ NlA 357,321 32 NlA 31 74000 $ 402,22932 $ 13,16800 357.321 32 31.74000 402,22932 84184 84 010 NlA 84 281 NlA 84 318 NlA 84 298 NlA 84340 NlA 84 048 NlA 836,694 22 919,41060 33,95218 110,01656 25,321 00 135,82155 59,104 00 841,746 77 (3) 919,41268(3) 3395218 110,01656 25,32100 135,82155 59,30204 (3) 84 011 - 25- NlA 139,844 27 139.844 27 5 2,662,39390 $ 2667,646 37 APPLING COUN"IY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2092 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Defense, U S Department 01 Direct Department oIlhe Air Force ROT C Program CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD $ 3760308 $ 97,05715 (3) Total Federal FUlancial Asststance NJA Not Available $ 3641 1162 74 $_...;;;4,.::0;::52",2~8:.:1.:3~9 Notes to the Schedule of Exoendltyres of FoderBl Awards (1) The amounts shown for the Food D1strt1ubon Program represents the Federally assigned value of norvnonetary assistance for dooated commodltle& received and/or consumed by the system during the current fISCal year (2) Expenditures for the ChUd and Adult Care Food Program and the School Breakfast Program were not maintained separately and are Included In the 2002 National School Lunch Program (3) Expenditures for this program Include State. and/or Other Funds Expenditures are not malf1tanl&d by fund source Major Programs are LdentJfiecl by an asterisk (.) In front of the CFDA number The School District did not provide Federal Assistance to any Sub~lent The accompanymg schedule of expenditures of Federa/awards /nckIdes the Federal grant adMfy Of the Applmg County Board of Educabon and Is pretiBnted on the modtned accrual baSI'S of accounting which Is the baSiS of accounting used In the presentation of the general1Jurp0e8 financial statements See notes to the generaJ.purpose financial statements - 26- APPLING COUNTY BOARp OF EpUCATION SCHEDULE OF STATE REVENUE YEAR ENDEp JUNE 30 2002 SCHEDULE "2" AGENCY/EUNDING GRANTS Cormwnrty Att'alra, GeorgIa Department of Gavemor's Emergoocy Funds Local Assistance Gtant..final Settlement Educatlo11. Geor1lIa Departmenl of Quality BasIc Educauan Di"ecllnstrudlOnal Cost Kindergarten Program KIndergarten Program - Earty InterventIOn Program Primary Grades (1-3) Program Pnl11alY Grades - Early Inlervanllot1 (1-3) Program Upper EIomonlary Grades (4-5) Program Upper EI6l116I1tary Grades Early Intervenlion (4-5) Program Middle Grade, (6-6) Program Hogh _ _ EducabOn (9-12) Program Vocatoonal La!loratofY (9-12) Program Students _ DIsabl..... Ca1egory I category II Category III category IV category V Gifted S.-,l - Category VI Remeotal EduCabOn Program A1tematfvo Education Program English Speak"", of Olher Languages (ESOL) 20 Days AddJlIOllaI InstnJdlon Mtna Center Program Staff and Professl_ Deveiopmllnt Irxllrect Cost categorical Grants PupIl TransportatIOn Regular Bus Rep{acement Sparsrty Nuf5lng ServlC6S Prlnapal Supplemen1s Vocational Supervisors Mtgrant Educabon EducaUon Equahzatlon Funchng Grant Food SllMC6S VocaUon8l EducabOn Other State Programs Hea_h Inslnlnce Mentor Teachers Preschool Handocapped Program Spada' EducatIOn Lew 1nadenc8 Grant Statewide Readong Program K-3 Sta'-e AABr SChool Program 4-8 Teachers' Retrement Lefler; Programs Assasl.ive Technology Computers In the Classroom Post Secondary Opttons OffICe of School Readiness Pre-Kindergarten Program Office of Treasuy and FISCal SeMcos PublIC School Employees Retuamenf GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL S 25.000 00 5.000 00 S 25.00000 5.00000 637.104 00 271.01400 1.469,920 00 44161400 961,040 00 139.40300 1.605.951 00 1.336.643 00 568.31600 22.695 00 420,06100 925.10100 236.396 00 26.491 ()() 14.90700 30 314 00 128.705 00 73.604 00 86.230 00 275.74300 50.24900 1.762.696 00 639,04200 189,817 00 20 ()()(J 00 78,91000 13,258 00 2425900 1034000 59.080 00 S 217,71160 258.33373 2,754 00 62.44900 2188700 53.96968 28.699 23 32 398 01 59400 102.386 00 8,495 00 B4.B45 24 744 970 73 26,330 ()() 637.104 00 271,01400 1.469.920 00 441.61400 961.040 00 139.40300 1.605.95100 1,336.643 00 568.31600 22.695 00 420.06100 925.10100 236.396 00 26.491 ()() 14.90700 30.31400 128.705 00 73.604 00 86 230 00 275.74300 50.24900 1.762.695 00 639.04200 189.817 00 20.000 00 76.91000 13.258 00 24.259 00 1034000 59,060 00 102.386 00 217,71160 258.333 73 2.754 00 6244900 21.88700 53.9696B 26.69923 32.398 01 8.495 00 B4.B45 24 59400 744.97073 26.33000 S 13 252.290 25 S 940,696 97 S 14,192,987 22 See notes to the general-purpose flnanaal statements - 27 - APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF APpROVED LOCAL OpTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 SCHEDULE "3" PROJECT Acqulnng, construdlng and eqUIpping a new high school, IndudlllQ parlE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS APPLING COUNTY BOARD OF EDUCATION AUDlTEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2002 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-60 11-00-0I FS-6011-01-01 Further ActIOn Not Warranted Unresolved - See CorrectIve ActIonIResponses CORRECTIVE ACTION/RESPONSES GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable Condition - Matenal Weakness Flndmg Control Number FS-6011-01-01 The Appling County Board of EducatIOn has not estabhshed a General Fixed Assets Account We are workmg on plans to estabhshone In the near future (FIscal Year 2003) PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FA-6011-01-01 FA-6011-01-02 FA-6011-01-03 FA-6011-01-04 FA-6011-01-0S Unresolved - See CorrectIve ActIonlResponses PrevIOusly Reported Corrective ActIOn Implemented Unresolved See CorrectIve ActIonlResponses Unresolved See CorrectIve ActIon/Responses Unresolved - See CorrectIve ActionlResponses CORRECTIVE ACTIONIRESPONSES ACTIVITIES ALLOWED OR UNALLOWED Inadequate Purchasing Procedures Finding Control Number' FA-6011-01-01 The Director of t1us program IS no longer employed With the Apphng County School Dlstnct and under the new leadership, steps have been taken to correct the defiCienCies m the purchase order process -I - APPLING COUNTY BOARD OF EDUCATION AUDlTEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CORRECTIVE ACTIONIRESPONSES EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Fmdmg Control Number FA-6011-01-03 The Apphng County School DIstrict has Inventory records for eqUIpment purchased With Safe and Drug-Free Schools and Commurutles grant funds EQUIPMENT AND REAL PRQPERTY MANAGEMENT Inadequate Inventory Records Fmdlng Control Number FA-6011-01-04 Our correclive actIOn plan for our Inventory records IS to do a phySIcal walkthrough Inventory at each school and update the records accordmgly We also plan to attach aVllllable trace documentatIOn for any equipment that has been transferred or removed, but not sold REPORTING Federal Fmanclal Reports Not Supported by Accountmg Records Fmdlng Control Number' FA-6011-01-05 The program director of the grant IS no longer employed With the Apphng County School Dlstnct and finanCIal reports for FIscal Year 2003 are supported by the accountmg records -2- SEcnON IV FINDINGS AND QUESTIONED COSTS APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR EN OED JUNE 30. 2002 SUMMARY OF AUDITOR'S RESULTS I. Type of Report Issued on the Fmanclal Statements The audItor's opinIon on the ApplIng County Board ofEducatIOn's finanCIal statements was qualIfied for a scope lImItatIon and for VarIOUS departures from generally accepted accountIng pnnclples 2 Rcportable CondItIons m Internal Control DIsclosed by the AudIt of the FmancIaI Statements The audIt report for the ApplIng County Board of EducatIon dIsclosed finanCial statement reportable condItIons related to the folloWIng control categones Employee CompensatIon General FIxed Assets Of the reportable conditIons descnbed above, General FIxed Assets IS consIdered to be a rnatenal weakness 3 Noncomphance Matenal to the Fmanclal Statements The audIt of the Apphng County Board of EducatIon dIsclosed no Instances of noncomplIance that were deemed to be matenal to the finanCIal statements 4 Reportable Conditions In Internal Control Over Malor Programs The audIt report for the ApplIng County Board of EducatIon dIsclosed reportable condItIons m mternal control over major programs for the fol1owmg comphance requITements. ActIVItIes Al10wed or Unal10wed EqUIpment and Real Property Management ReportIng None ofthe reportable condItions descnbed above are consIdered to be matenal weaknesses 5 Type of Report Issued on ComplIance for MalOr Programs The audItor's opmlOn on the ApplIng County Board of EducatIon's report on comphance WIth reqUIrements apphcable to major programs was unquahfied 6 AudIt Fmdmgs ReqUIred to be Reported by SectIOn 510(a) ofOMB CIrcular A-133 The ApplIng County Board of EducatIon's audit dIsclosed audIt findIngs reqUIred to be reported by sectIOn 510(a) orOMB Circular A-133 These audIt findIngs are mcluded m scetIon IV of thIS report -I - APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2002 I SUMMARY OF AUDITOR'S RESULTS 7 MaJOr Programs Federal awards audited as major programs are as follows' 10553 Food and Nutntlon Program - Food Services - School Breakfast Program 10555 Food and Nutntion Program - Food Semces - NatIOnal School Lunch Program 84027 IndiViduals With Disabilities EducatIOn Act - Part B - Special Education Capacity BUlldmg Improvement 84027 indIVIduals With Disabilities Education Act - Part B - Special Education Flow Through 84.173 IndIVIduals With DlsabllItlcs EducatIOn Act - Part B - Special Education Preschool 84184 Safe and Drug-Free Schools and Commumties - NatIOnal Program 8 Type nA" Program Dollar Threshold The dollar threshold for type nAn programs was $300,000,00. 9 Low Risk Audltee The Appling County Board of EducatIOn qualified as a low nsk audltec as defined by SectIOn .530 ofOMB Circular A-133 II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS EMPLOYEE COMPENSATION Lack of Payroll Wlthholdmg Forms m Personnel Files Reportable Condition Fmdmg Control Number FS-6011-02-01 Our audit disclosed that payroll tax wlthholdmg forms were not marntamed m personnel records as reqUIred For seventeen (17) out of the thirty-two (32) personnel records selected for testmg did not mclude completed G-4 wlthholdmg forms This conditIOn was a result ofmanagement's faIlure to Implement controls to ensure all wlthholdmgs are authonzed by employees The School Dlstnct should Implement procedures to ensure that wlthholdmg forms are mamtamed for all personnel employed by the School Dlstnct. -2- APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2002 II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS FaIlure to MaIntain General FIXed Assets Account Group Reportable CondItion - Matenal Weakness Repeated From Pnor Year Finding Control Number. FS-6011-02-02 The Appling County Board of Education did not maIntaIn a system-wIde General FIxed Assets Account Group wItiun the formal accounting records as reqUired by generally accepted accounting pnnclples. ThIS condition results m the general-purpose finanCIal statements of the School DIStnCt bemg mcomplete and not m accordance With generally accepted accountmg pnnclples Appropnate actIOn should be taken by the School Dlstnct to establish accounting controls and procedures to proVIde for mamtenance of a General Fixed Assets Account Group These subSIdiary records should mclude an Inventory of land, bUildings and equIpment owned by the School DIStnCt and should Include, but may not be lImIted to, date acqUired, acquIsitIOn cost, estImated replacement cost, locatIOn and descnptlon DetaIled records should be maIntained of all addItions and deletions to the General FIXed Assets Account Group III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS ACTIVITIES ALLOWED OR UNALLOWED Inadequate Purchasing Procedures Reportable CondItIon U S Department of EducatIon Repeated From Pnor Year Finding Control Number. FA-60Il-02-0l An examinatIOn of the Safe and Drug-Free Schools and CommunIties - NatIOnal Program (CFDA 84 184) was performed to test the validity and accuracy ofthe expenditures. The vouchers examined revealed the follOWing defiCIenCies (I) Purchases were not approved pnor to plaCing order for goods or services (2) Purchase orders were not systematically Included as part ofthe documentation supporting expendItures These condItIOns were a result ofmanagemenl's failure to Implement mternal controls formomtonng compliance With Federal gUidelines The management of the School Dlslnct should formulate and Implement adequate procurement procedures to ensure that purchases are specifically approved pnor to ordenng goods and services and appropnate documentation IS Included m all expendIture voucher packages -3- APPLING COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2002 III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Reportable Condluon Nonmatenal Noncomphance U S Department of EducatIOn Repeated From Pnor Year Fmdmg Control Number FA-6011-02-02 Property management records mamtamed by the Apphng County Board of EducatIOn for the Safe and Drug-Free Schools and CommunllJes - Nauonal Program (CFDA 84.184) were mcomplete and failed to meet property management standards as set forth m Chapter 41, of the Fmanclal Management for GeorgIa Local Umts of AdnumstratlOn (FMGLUA) The mventory records as presented for audit dId not contam a complete descnpuon ofthe asset, cost, senal number or other Idenuficallon number, lIt1e holder, acqUisitIOn date, source of fundmg and condluon The mventory records also contamed Items other than eqUipment, which resulted m the mventory records bemg substanllally misstated as presented Tlus conditIon occurred because management failed to mamtam equipment mventory records as set forth m FMGLUA The School Dlstnct should Implement procedures to ensure that the equipment mventory records mclude all descnptIve Items as requITed by Chapter 41 ofFMGLUA The mventory records should also be reviewed to ensure that only vahd eqUipment Items are mcluded EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Reportable ConditIon Nonmatenal Noncomphance U S Department of Agnculture Pass-Through From GeorgIa Department of Educauon Repeated From Pnor Year Fmdmg Control Number FA-6011-02-03 Property management records mamtamed by thc Apphng County Board of EducatIOn for the Child NutntIon Cluster (CFDA 10.553 and 10 555) were mcomplete and faIled to meet property management standards as set forth m Chapter 41, of the FmanCllll Management for GeorgIa Local Umts of Admlmstratlon (FMGLUA). The inventory records as presented for audit did not mclude a descnptIon ofthe eqUipment, source of fundmg, percentage of Federal partiCipatIOn and comhnon In additIon, eqUipment mventory records were not updated for all current year addlnons This conditIOn occurred because management faIled to mamtam eqUipment mventory records as set forth m FMGLUA - 4- APPLING COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS EQUIPMENT AND REAL PROPERTY MANAGEMENT Inadequate Inventory Records Reportable ConditIOn Nonrnatenal NoncomplIance U. S Department of Agnculture Pass-Through From GeorgIa Department of Education Repeated From Pnor Year FmdIng Control Number FA-6011-02-03 The School Distnct should I1TIplement procedures to ensure that the eqUIpment mventory records mclude all descnptlve Items as requIred by Chapter 41 ofFMGLUA. REPORTING Federal Fmanclal Reports Not Supported by Accountmg Records Reportable CondItIon U S Department of Education Repeated From Pnor Year Fmdmg Control Number FA-6011-02-04 A companson between the School Dlstnct's reports to the U S Department of Education for the Safe and Drug-Free Schools and CommunitIes - NatIOnal Program (CFDA 84 184) and the School Dlstnct's finanCial records revealed that the expendItures reported on the DE 524 were not adequately supported This conditIOn was a result of management's faJlure to Implement adequate mtemal controls for momtonng comphance With Federal GUldelmes The School Dlstnct should Implement procedures to ensure that all Federal finanCial reports are accurate and venfiable to the School Dlstnct's finanCial accountmg records -5-