Baldwin County Board of Education, Milledgeville, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

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

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECrS FUND

G

COMBINING BALANCE SHeET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, eXPENDITURES

AND CHANGES IN FUND BALANCES

29

K

FIDUCIARY FUND TYPE

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

30

BALDWIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

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-133

SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SUMMARY SCHEDULE or PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RI."FII W. HIN10'
STA.T( AUDllUA
(4()41656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wd,hLnglon ~Ireet. S W SUlle 214 Allanla. Georgia 30134!4(XI
July 15. 2003

Honomblc Sonny Perdue, Governor Members of the General Assembly Membcrs of the State Board of Education
and Supenntendent and Members of the Baldvnn County Board of Educallon
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE fINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladles and Gentlemen
Wc have audIted the accompanYing general-purpose financial statemcnts of the Baldwin County Board of EducatIon. as of and for the year ended June 30, 2002, as listed In the table of contents The~ general-purpose finanCIal statemcnts arc the responsIbIlity of thc Baldvnn County Board of Educallon's management Our responslblhty IS to expres, an OpinIOn on these gencml-purpose financIal statements based on our audIt
Exccpl as dIscussed In the follOWing pamgmph, we conducted our audit In accordancc vnth audttlng ,tandards gencrally accepted In the United States of Amenca and the standards apphcable to financial audits contained In Government Audtllng Standards, ISSUed by the Comptroller General of thc Umted States Thosc standard., require that wc plan and perform the audIt to obtain reawnablc assurance about whether the financial statcmcnts are free of matenal misstatement An audit Includes examining. on a test basI', eVidence supporting the amounts and dIsclosures In the financial statements An audit al'>O Includcs assessmg thc accounting princIples uscd and SIgnificant esllmate~ made by managcment, as well as evaluating the overall financial statcment presentation We believe that our audit proVIdes a reasonable basIS for our opinion
We dId not observc thc taking of eIther the Federal donated commodities Inventory or purcha~ed foods Inventory at June 30. 2002, nor could we ~tlsfy ourselves a~ to the accuracy of the amounts stated a~ Inventone, through alternative procedures

2002ARL-13

As described In the notes to the gcneral-purpose financial statements, the Board of Education's financial statements have been prepared USing certain accounting practiCes and poliCies which, In our opinion. vary In somc respects from generally accepted accounting principles. Thcse vanances are dcscrlbed as follows'
The general-purpose finanCial statements of the Board of EducatIOn did not contaIn a General Fixed Assets Account Group to account for property and eqwpment o\\l1ed by thc Board of Education which should be Included to conform to generally accepted accounting prinCiples
School actIVIty accounts maintaIned at the indiVidual schools are not Included In the general-purpose finanCial statements. To conform to generally accepted accounting prinCiples, these accounts should be Included In the general-purpose finanCial statements
The aggregate effects on the general-purpose finanCial statements of these vanances or omiSSIOns have not been determined. but are believed to be material.
In our opinion. except for the effects of such adjustments, If any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfY ourselves as to the accuracy of the food service inventories as discussed in the third paragraph. and except for the effects on the general-purpose finanCial statements of the matters referred to In the preceding paragraph, the general-purpose finanCial statements referred to above present falfly. In all material respects. the finanCial posItion ofthe BaldWin 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 United States of Amenca.
In accordance WIth Government Auditing Standards, we have also ISSUed our report dated July 15. 2003, on our conSideratIOn of the BaldWin County Board of Education's Internal control over financial reporting and our testl> of Its compliance WIth certain proVISIOns of laws, regulallons, contracts and grants That report is an integral part of an audit performed In accordance WIth Government Auditing Standards and should be read In conJuncllon \\1th thiS report In considering thc results of our audit
Our audit was performed for the purpose of forming an opinion on the general-purpose finanCial statements of the BaldWIn County Board of EducatIOn taken as a whole 1 he accompanYing combining statements (Exhibits E through K) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U S Office of Management and Budget CIrcular A-B3. Audits oj States. Local Governments. and Non-Profit Orgam=atlOm. are presented for purposes of additional analySIS and are not a reqUired part of the general-purpose finanCial statements Such information has been subjected to the auditing procedures applied In the audit of the general-purpose finanCial statements and In our opinion. cxcept for the effect of adJustments, Ifany, on the Special Revenue Fund, as might have been determined to he necessary had we been able to satisfY ourselves as to the accuracy of the food service inventories
2002ARL-13

as discussed In the third paragraph, and except for the effects of the mattcrs referred to In the fourth paragraph, such mformatlOn IS faIrly stated, In all matenal respects, In relallon to the general-purpose finanCIal statements tal..en as a whole
A copy oftlus rcport has been filed as a permanent record in the office of the State Auditor and made avaIlable to the press ofthe State, as proVided for by Official Codc of Georgia Annotated Secllon SO6-24
I"'"_,e:spectfully submItted,
~W~
Rus II W Hinton State Auditor
RWHgp 2002ARL-13

BALDWIN COUNTY BOARD Of EDUCAnON

BAlDWIN COUNTY BOARD OF EDUCATION COMBINED BAlANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002

~ Cash and Cash EqUIvalents
Investments
Accounts ReceIVable
InventOn8S
Consumable SupplJes Food
Donated Commo(lnles Purchased Food
Amount Avadable In Debt Service Fund
Amount to be ProVIded In Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

S 1.25256270

S 4436.526 37

2.000.000 00

3740.21841 S 1.079.21828

938.34732

15.79350

29 BOO 25 50.41582

Total Assets

S 5.008.57461 S 1.159.434 35 S 7.374.87369

LIABILITIES AND FUND EqUITY
LIABILITIES
Cash Overdraft Accounts Payable salanes Payable Contracts Payable Retalnsges Payable Deferred Revenue Funds Held for Others General Obllgabon Bonds Payable
Total Loabjrtoes
FUNp EQUITY
Fund Balances Reserved For Bus Replacement Fund! For Debt ServICe For Inventones Consumable SuppI... Food Donated Commochhes Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Gaprtal Outlay Protects Unreserved UndeSlQnaled
Total Fund Equity

$

S

963.78792

3.41258522

43.239 78

279.0854B 117.97633 450.277 37
$
11.18217

1 279 396 40 598.917 64

$ 4.439.61292 $

858.501 35 S 1.878.314 Q4

$

437.166 83

1579350 $

29 BOO 25 5041582
S

4.547.16153

116.001 36

220.71693

949.39812

$

568.96169 $

300.933 00 $ 5.496.55965

Talal L18bllltoes and Fund Equity

$ 5,008.57461 $

The notes to the general-purpoae finanaa6 statements are an mtegral part of thes sta1ement

1,159.434 35 $

2-

7,374.873 69

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUNDS

$

2402398 $

12,651 59

170

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$ 5725,764 64 $ 14,044,684 59

2,000,000 00

10676,334 70

5,75778571

5,358 644 88

$

2402568

1579350
2980025 50 415 82
2402568

54 694 19 49190 59
1,21657501

22,390,974 32

22,390,974 32

25,828,42499

$

24,02568 $

12,651 59 $ 22:415.000 00 S 35!~!55992 $ 57,228,548 95

$

27908548

1,101764 25 $ 1,105,44289

3,86286259

3,579,788 17

1,279396 40

598,91764

54,401 95

14 n3 71

$

12651 59

12,651 59

9240 32

$ 22,415,00000

22,415,00000

27,045,000 00

$

12,651 59 $ 22,415,00000 $ 29,604,079 90 $ 31,754 245 09

$

24,02568

000

S

24.02568

$

437 166 83 $

213,34700

2402568

1,21657501

15,79350

29,800 25 50,41582
4547,16153

54,694 19 49,190 59 16719,34569 2683,09258 499,30000

1,286,11641

4,038,75880

$ 6,390,480 02 $ 25,474,303 86

$

24,02568 $

12,651 59 $ 22.415,000 00 $ 35,994,559 92 $ 57 ,228,548 95

- 3-

BALDWIN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
Slate Fund. Federel Funds Taxes Other Funds
Total RevenuBS
EXPENDITURES
Current Instruction Support ServlC8S Pupil ServICeS Improvement of Instructional servICeS EducatJonal Media ServiceS General AdmlnlstralJon School AdmlmstrBbon BUSiness Admlmstrabon Maintenance and OperatIOn of Plant Student Transportation ServiceS central Support 5elVlce. Other Support Services Food 5ervlC8S Operation eornmunrty 5elVlces Operallons
Gapllal Outlay Debt Service
Principal Interest PeYlng Agenl Fees
Tolal Expenditure.
Excess of Revenues over (under) ExpendItures
OTHER FINANCING SOURCES IUSES)
Accrued Interest on Bonds Sold Proceed. from General Obhgabon Bonds
Par Value Operabng Transfers In Operabng Transfers Out
Tolal Other Flnancln9 Sources (Uses)
Excess of Revenues and Other FlnanClng Sources over (under) Expenditures and Other FinanCing Uses
FUND BAlANCE JULY 1
Food Inventory - Net Change In Pened Donated Commochtles
Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 28,83612417 $ 51,31967
860285723 377,14030
$ 37,867,441 37 $

935,617 12 5,964,94565
549,96509
7,450,52806

$ 28,646,262 25 $
851,18402 899,21084 773,31873 472,08815 2,920,75708 506,27934 3,304,034 36 1,905,475 73 203,480 78
36,46152 13,76778 103,60036

3,389,022 30
554,71162 491,49526
335,830 49 396925
46,39560 135,184 32
73,74039 2,393,563 28

$ 40,635,920 92 $ $ -2,768,47955 $

7,423,91251 26,61555

$ 1,300 000 00 $ -11,76854
$ 1,288,231 46 S

11,768 54 11,768 54

$ -1,480,248 09 S 2049,209 78

3838409 286,21762

-2489394 1,22523

FUND BAlANCE JUNE 30

$

588,96169 $

The notes to the genera~rpose finanCial statements are an Integral part of thiS statement - 4-

300,933 00

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 29,n1,74129 $ 30,193852 90

6,016,265 52

5,14388949

$

664,11604 $ 4503,98256

13,790,95583

13,897,34745

871,817 12

1,75611

1.800,480 62

2,079,327 62

$ 1,555,73316 $ 4,505,740 67 $ 51,379,443 28 $ 51.314,41746

$ 16,681,47496 $
$ 16,681,47496 $ $ -15,125,74180 $

$ 32,035,284 55 $ 30,28074386

1,405,89564 1,390,706 10
773,31873 807,91864 2,924,728 33 506 279 34 3,350 429 96 2,040860 05 203,48076 110,201 91 2407,33106 10360038 16,681,47496

1434,856 55 1,192,43886
80747678 901,13827 2,731,27379 792,28953 3,346,05782 1690,664 32 167,041 43 12809202 2,427,785 65
2,527,24268

4630,000 00 1,066,150 00
2,140 00

463000000 1,066,150 00
2,14000

4425,000 00 689,988 88 2,12000

5,698,29000 $ 70,439,598 39 $ 53,524,206 44

-1,192,54933 $ -19,060,15513 $ -2,209,788 98

$ -1,300,00000 $ -1,300,000 00

$

37,520 96

$ 1,311,768 54 -1,311,768 54

17,735,000 00 45,00000 -45,000 00

$

000 $ 17,n2,520 96

$ -16,425741 80 $ 21 922 301 45

-1,192,54933 $ -19,060 155 13 $

1 216,57501

25,474,30386

15562,73198 9901161 19

-24,89394 1,225 23

3,100 76 7,309 93

$ 5,496,55965 $

24,02568 $ 6,390,480 02 $ 25,474,30386

- 5-

BALQWlN COUNTY BOARD Of EPUCATION
COMBINER STATEMENT OF REVENUES EXPENPfTURES AND CHANGES IN FUND BALANCES BUDGET ANp ACTUAl- INClli-GAAP; BASIS> GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002

EXHIBIT "c-

REVENUES
State Funds Fedetal Fund! Ta_ Othar Funds
Total Revenues
EXPENDITURES

GENERAL FUND

BUDGET

ACTUAL

$ 28 358 890 00 S 28836 124 17

51 31967

8277 379 92

8 e02 857 23

335750 00

377 14030

$ 36,972 019 92 $ 37,867,44137

Cunent Instrucnon SUpport ServK::e8 Puptl ServICeS Improvement of Instrucbonal Servtc:es Educollonal Madia ServICeS General AdmtnlStrahon School AdlT'llnlstrabOn BU!lness AdrT\lnLstratlOO Mall'ltenarlCO and OperaUon of Plant Sludant T..nsportalJon 5arvlCes
Central Support 5ervJc:es Other Support 5eMces FDOd 5e<v>c:elI Clpambon
Community ServICeS Operations
Total Expenditure!
Excess of Revenue! over (under) Expenditures
OTHER FINANCING SOURCES (USES>

S 26 66148566 S 28646 262 25

971 10512 912 116 16 865158 23 648 551 90 2764 252 04 630 947 72 3332 763 40 1,968 902 86 213,822 24
34 198 00 18180 70

851 184 02 899,21054 77331873 472 088 15 2920 757 oe 500 279 34 3304 034 36 1 90547573 20346076
36 461 52 1376776 103,800 36

$ 39 021,484 03 $ 40,635,920 92

$ -204946411 S -2,788 479 55

Other Sources O!horU...

S 1 300 000 00 1176854

Total Other Fnandng 5oon::eo (UlI8!I)

$ 1,288,23146

Excess of Revenues ond Other Flnancmg Sources over (under) Expenditures and Other FlI'I4IlClng Uses $ 2,049464 11 $ -1 4eo 248 09

FUND BAlANCE JULY 1 2001

2654 744 57

204920978

AdJu!tmen18 Food Inven10fY - Net Change In Penod
Donated Commodrt>as
Pun:hasad Food

1 591 20

FUND BAlANCE JUNE ~

s

606 87' 66 $ _-,568=.::96::.'.:6:::9~

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 909 188 00 S 935817 12

586964600

5964,945 85

518,963 00

549,965 09

$ 7297,79700 $ 7450 528 06

S 3459786 00 $ 338902230

47600200 495 954 00 28394900
74726 00 466500

554 711 62 49149526
33583049 396925

46,01600 10797500

46 395 60 135184 32

86 30B 00 2286 395 00

73 740 39 2393 563 28

$ 7,321 neoo $ 7,423,91251 S -2397900 $ 26 615 55

$ 1176854

$ 11,76854

$ -2397900 $ 36 384 09

27877971

286,217 62

1735 11

-2489394 122523

$ 256153582 S 300 933 00

The notes to the genera)-purpo:sB finanoaJ statements are ... Illtegral part of this statement - 6-

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Baldwin County Board of Education (School Distnct) 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 DIstnct 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 Accordmgly, the School Distnct is a pnmary government and consists of all the orgaruzations that compose its legal entity
FUND ACCOUNTING
The School District uses funds and an account group to report on Its finanCial position and the 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 actlVltles A fund IS a separate accountmg entity with a self-balancmg set of accounts An account group is a finanCial reportmg deVice deSigned to provide accountablhty for certaIn assets and habihtles that are not recorded m the funds because they do not directly affect expendable aVaIlable finanCial resources
General FIxed Assets are recorded as expenditures in the VarIOUS funds at the time of purchase A General Fixed Assets Account Group IS not presently mamtaIned by the School Distnct To confonn to generally accepted accountmg pnnclples, a General Fixed Assets Account Group should be maIntamed for reportmg the cost of assets acqUIred by governmental fund types
Although "school activity accounts" are maintained at the mdlvldual schools, neither the assets, hablhtles and fund eqUIty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m 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 \\1th generally accepted accountmg pnnclples apphcable to governmental units, unless otherwise disclosed m these notes Funds and the account group presented m this report are as follows.
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School DIstnct's educational actiVIties, Governmental Fund Types mclude
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 transacl10ns relate to resources obtamed and used for services proVided by a board of education

-7-

BALDWIN COUNTY BOARD OF EDUCATION

eXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPE:.ClAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than lor major capital projects) that are legally restncted to expenditure~ for specified purposes These funds are received pnmarily from thc Georgia Department of EducatIon and from the Federal government to accomplish specific educatIOnal objectives
CAPIT A.L PROJECTS FUND - the fund used to account for finanCial resources to be used for the acquISItIon or construction of major capital facilitIes
DEBT SERVICE FUND - the fund used to account for the accumulatIon ofresources for, and the payment of, general long-term pnnclpal, mterest and paymg agent fees
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit m a trustee capacity or as an agent for mdlvlduals. pnvate organizations. other government units and/or other funds Thl~ fund mcludes.
AGENCY FUNDS - the funds used to account for assets held m a fidUCiary capacity for other funds, governments. or mdlvlduals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for general obligatIOn debt outstandmg
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 avaJlable spendable resources
Liabilities which are expected to be financed from available spendable resources are reported a~ liabilitIes m the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group
Agency funds are purely custodial m nature and do not mvolve measurement ofresults ofoperatIons
Governmental funds arc accounted for usmg thc modified accrual basIS of accountmg undcr which
Revenues arc recogruzed when susceptIble to accrual (I e., when they become both measurable and aVailable) "Measurablc" means the amount of the transaction can be determmed and "available" means collectIble Within the current penod or soon enough thereafter to be used to pay liabilities of
-8-

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current penod The School District considers receivables collected within SIXty days after yearend to be aVailable Property taxes. sales taxes and Interest are considered to be susceplible to accrual Nonexchange transaelions, In which the School District gives (or receives) value Without directly receiving (or giVing) equal value m exchange, Include property taxes, local opllon sales taxes, Intergovernmental grants and donalions Revenue for property taxes is recognized in the fiscal year for which the taxes are leVied Revenue from sales taxes is recognized In the fiscal year the resources are received or susceplible to accrual Revenue from grants and donations is recognized In the fiscal year in whIch all ehgibllity requirements have been salisfied.
Expenditures are generally recognIzed when the related fund liabihty IS incurred
A substanllal number of personnel of the School District were employed for a one hundred and mnety day penod beginning in August 200 I and ending In early June 2002 Employment contracts for these employment penods typically specify that compensalion be paId In twelve equal monthly paymcnts beginning in September 200 I and ending In August 2002 State grants to fund the State's share of these contracts are disbursed to the School Dlstnct in the same twelve month penod In accordance With generally accepted accounting principles, salary and frmge benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal penod covered by these finanCial statements
Agency funds are accountcd for uSing the modified accrual basIS ofaccounting In recognizing assets and hablhlles
BUDGET
The BaldWIn County Board of Educalion's budget IS a complete financial plan for the School Dlstnet's fiscal year and IS based upon estimates of expenditures together With probable funding sources There IS no statutory prohibitIOn regarding overexpenditure ofthe budget at any level The budget for all governmental funds IS prepared by fund, 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 accounting pnnciples
The budget process begins when the School District's admlnistralion prepares a tentalive budget for the Board's approval After approval of this tentalive budget by the Board, such budget IS advertised at least once In a newspaper ofgeneral circulatIOn in the locality At the next regular meeting of the Board after advertisement, the Board receives comments on the tentallve budget, makes reVISIOns as necessary and adopts a final M:hool budget. This final budget is then submitted, in accordance With proVISIOns of the Quality BasIC Education Act. OCGA Section 20-2-167(c), to the Georgia Department of Education The Board may Increase or decrease the budget at any lime dunng the year All unexpended budget authonty lapscs at fi ~cal year-end.

-9-

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposils and short-tenn investments wilh ongmal maturities of three months or less from the date of acqwsltlon m authonzed financial mstltutlOns Georgia Laws OCGA 45-8-14 authon7e the School Distnct to deposit its funds m one or more solvent banks or insured Federal savings and loan associations
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School Distnct m nonparticipating mterest-eammg contracts (such as ceruficates ofdepoSit) and repurchase agreements are reported at cost Participating mterest-eammg contracts and money market mvestments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating mterest-eaming contracts and money market investments WIth a matumy at purchase greater than one year are reported at fwr value The OffiCial Code of Georgia Annotated SectIOn 36-83-4 authonzes the School DIstnct to Invest its funds and m selectmg among optIOns for mvestment or among InstItutional bids for depoSIts, the Inghest rate of return shall be thc objective, given equivalent conditIons of safety and liqUidIty Funds may be invested m the follOWIng
( I) Obligations issued by the State of Georgia or by other states,
(2) ObligatIons Issued by the UnIted States government,
(3) Obligations fully insured or guaranteed by the UnIted States government or a Uruted States government agency,
(4) Obligations of any corporatIOn of the United States government,
(5) Pnme banker's acceptances,
(6) 1be Local Government Investment Pool admInIstered by the State of GeorglR, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other politIcal subdiVISIOns of the State of Georgia.
RECEIVABLES
Receivables consIst of grant reimbursements due on Federal, State or other grants for expenditures made but not reImbursed and other receivables disclosed from mfonnatlon available ReceIvables
- 10 -

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are recorded when either the asset or revenuc recogmtion cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessltatc the need for an allowancc for uncollectible receivables

PROPERTY TAXES

Thc Baldwm County Board of Commissioners fixed the property tax levy for the 200 I tax digest year (calendar year) on September 15,2001 (lcvy date) Taxes were due on November IS, 2001 (lien date) Taxes collectcd Wlthm the current fiscal year or withm 60 days after ycar-cnd on the 200 I tal. digest are reportcd as revenue m fiscal year 2002 The Baldwin County Tax CommissIOner bills and collects the property taxes for the School DIStnCt, withholds 2.5% of taxes collected as a fee for tax collectIOn and remits the balance oftaxe~ collected to the School Distnct Property tax revenues durmg the fiscal year ended June 30, 2002 for mamtenance and operatIOns amounted to $8,547,87429 and for school bonds amounted to $236 96

The tax mIllagc rate levIed for the 2001 tax year (calendar year) for the BaldWIn County Board of Education wa~ as follows (a mill equals $1 per thousand dollars of assessed valuc)

School Operations

,lWmills

SALES TAXES

SpcCIaI Purposc Local Option Sales Tall. revenue dunng the year amounted to $5,187,861.64 and IS to be used for capital outlay for educatIOnal purposes or debt service This sales tal. was authonzed by local refercndum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES Inventones of donated food commoditIes used m the preparation of meals are reported on the Combined Balance Sheet at their Federally asSigned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out). Donated food commoditIes are recorded as revenues and expenditures at the lime commodIty Items are received Purchased foods mventones are recorded as expendlturcs at the time of purchase The mventones reported on the balance sheet for donated food commodIties and for purchased foods arc equally offset by rescrvatlOns of fund balance which mdlcates that these amounts do not constitute "avaIlable spendable rcsources" even though they are a component of net current aso;ets

SUPPLY INVENTORY Inventones of consumable supplies and materials are reported on the Combmed Balance Sheet at cost (weighted average) The School DIstnct uses the consumptIOn method to account for mventones of consumable supplies whcreby an asset IS recorded when supplies are purchascd and cxpendltures arc recorded at the time the supplies are consumed,

- II -

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
COMPENSATED ABSENCES
Compensated absences represent obltgauons of the School Distnct relating to employees' rights to receive compensatIOn for future absences based upon service already rendered This obltgatlOn relates only to vesting accumulating leave In which payment IS probable and can be reasonably estimated. No IIablltty has been recorded In the indIVIdual funds for the current portIOn of thl~ obltgatlOn as thiS amount IS deemed Immatenal to the general-purpose finanCial statements.
Additionally, the dollar value of accumulated compensated absences at Junc 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as thiS Itablltty IS also deemed to be immaterial to the faIr presentatIOn ofthese financial statements
GENERAL OBLIGATION BONDS
The School Distnct Issues general obltgatlOn bonds to provide funds for the acqUisition and construcUon of maJor capital facIlIties. Bond premiums and diSCOuntS, as well as ISSuance costs, are recognIzed In the financial statements during the year bonds are Issued In addition, general obligation bonds have been Issued to refund eXisting general obligatIOn bonds General oblIgation bonds are direct obligations and pledge the full faith and credit of the government The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School District has the follOWing types of Interfund transactIOns
Reimbursements of expendItures InItially made from a fund that are properly applIcable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that IS reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose finanCial statements are captioned "Memorandum Only" to Indicate that they are presented only to facilItate finanCial analysIs Data In these columns do not present finanCial position or results of operations In conformIty WIth generally accepted accounting pnnclples Neither are such data comparable to a consolIdation. Interfund elIminatIOns have not been made In the aggregation of thiS data
DEFICIT FUND BALANCES
Funds reporting a deficit fund balance positIOn at June 30, 2002, are as follows
- 12 -

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Notc I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fund TypelFund Name

DefiCit Balance

Capital Projects Fund Bond Proceeds

$ 84,227:56

Thc School Dlstnct plans to elIminate this defiCit USing the proceeds from the issuance of $5,230,000,00 of Tax AntiCipatIOn Notes dated July 31, 2002 See Note 10 - Subsequent Events

Note 2 DEPOSITS

COLLATERALIZAnON OF DEPOSITS Official Code of GeorgIa Annotated (OCGA) Section 45-8-12 proVides that there shall not be on depoMt at any time In any depository for a time longer than ten days a sum of money which has not been secured by surety bond. by guarantee of Insurance, or by collatcral The aggregate of thc face valuc of such surety bond and the market value of secuntles pledged shall be equal to not less than 110 percent ofthe publIc funds being secured aftcr the deduction ofthe amount ofdepoSit insurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe securities pledged to secure a pool of publIc funds shall be not less than 110 percent ofthe dally pool balance OCGA SectIOn 45-8-11 (b) provides an officer holding publIc funds may, In hiS discretion, waive the reqUirement for secunty In the case ofoperatmg funds placed m demand deposit checkIng accounts

Acccptable secunty for deposits consIsts of anyone of or any combinatIOn of the follOWing

(I) Surety bond signed by a surety company duly qualIfied and authonzed to transact bUSiness within the State of Georgia,

(2) Insurance on accounts prOVided by the Federal Deposit Insurancc Corporation.

(3) Bonds, bills, notes, certificates of mdebtedness or other direct oblIgations of the Umted States or ofthc State of Georgia,

(4) Bonds. bills, notes. certlficatcs of mdebtedness or other obligations of the counties or municipalIties of the State of Georgia,

(5) Bond~ of any public authonty created by the laws of the State of Georgia, provldmg that thc statute that created the authonty authorized the use ofthc bonds for thIS purpose,

(6) Industnal revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and

- 13 -

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS

(7) Bonds, bills. notes, certificates of indebtedness, or other obligations of a subSIdIary corporation of the United States government, whIch are fully guarantecd by the United States government both as to princIpal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal IntermedIate CredIt Bank, the Central Bank for Cooperatives, the Fann 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 $9,4 I4,645 90 The amounts ofthe total bank balances are clasSIfied mto three categones of credIt risk,

Category I - Cash that is Insured (e g, Federal deposItory msurance) or collateralIzed with secUrIties held by the School Distnct or by the School Dlstnct's agent m the School Dlstnct's name.
Category 2 - Cash collateralized WIth secUrIties held by the pledgmg financial InstitutIOn's trust department or agent in the School Dlstnct's name
Category 3 - Uncollaterallzed depoSIts (ThIS mcludes any bank balance that is collateralized WIth secUrItIes held by the pledging finanCIal institutIOn, or by ItS trust department or agent but not m the School DIstrict's name.)

The School District's deposits are classIfied by risk category at June 30, 2002, as follows

RIsk Category

Bank Balance

I

$ 430,919.71

2

2,286,285 10

3

6.697,441 09

Total

$ 9AI4.645..2Q

Note 3. NON-MONETARY TRANSACTIONS

The School Dlstnct receIves food commodities from the United States Department of Agnculture (USDA) for school breakfast and lunch programs These commodities are recorded at therr Federally as~lgned value See Note I - 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 injuries to employees, acts of God and unemployment compensatIOn

- 14 -

BALDWIN COUNTY BOARD or EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 4 RISK MANAGEMENT

The School District has obtamed commercial Insurance for nsk ofloss associated With Job related 11Inc;s or Injunes to employees The School Dlstnct has neither significantly reduced coverage for thiS nsk nor Incurred losses (settlements) which exceeded the School Distnct's insurance coverage in any of the past three years.

The School Dlstnct participates In the Georgia School Boards AssoCiation Risk and Insurance Management System, a public entity nsk pool organized on July I, 1994, to develop and admlmster a plan to reduce nsk of loss on account of general liability, motor velucle hablhty, or property damage, IncludIng safcty engIneering and other loss prevention and control techmques, and to admlmster one or more groups of self-Insurance funds, IncludIng the processIng and defense of clmms brought agaInst mcmbers of the system The School District pays an annuaJ premIUm to the system for ItS general Insurance coverage Additional coverage IS provided through agreements by the system With other companies according to their speclllity for property. boiler and maclunery (IncludIng coverage for flood and earthquake), general lIablhty (includIng coverage for sexual harassment, molestation and abuse) and automobile n~ks Payment of excess Insurance for the system vanes by lIne of coverage

The School Dlstnct IS self-Insured With regard to unemployment compensation clmms The School Dlstnct accounts for claims WithIn the same fund that the employee's saJary and benefits were pmd Claims are accounted for With expenditure and hability being reported when It IS probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

Changes In the unemployment compensation claims hablhty dunng the last two fiscal years are as follows

Begmnmg of Year Llablhty

Claims and Changes m ESllmates

Claims Paid

End of Year Llabllltv

2001 2002

$

000 $

2,86578 $

2,86578 $

000

$

000 $

5,15200 $

5,15200 $

000

The School Dlstnct has purchased surety bonds to proVide addltionaJ Insurance coverage as follows

Position Covered

Amount

Supenntendent All Employees

$ 250,00000 $ 250,00000

- 15 -

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2002

Note 5 OPERATING LEASES

BaldWin County Board of Education has entered into VarIOUS leases as lessee for various eqUipment. These leases are considered for accountmg purposes to be operatIng leases Lease expenditures for the year ended June 30, 2002, amounted to $86,14944 Future mimmum lease payments for these leases are as follow~.

Year Endmg

Amount

2003 2004 2005

$ 78,56392 75.19200 74.68200

Total

$ 228437,92

Note 6 GENERAL LONG-TERM DEBT

GENERAL OBLIGAnON DEBT OUTSTANDING General OblIgatIOn Bonds currently outstandmg are a~ follows

Purpose

Interest Rates

Amount

General Government - Senes 1997 General Government - Senes 2000 General Government - Refundmg - Series 1992 General Government - Series 2001

4.50"10 - 4.75% 4.82% 4 50"/. - 6 20"/. 475%

$ 4,030.000.00 9,800,000 00 650.000.00 7.935.000.00

$22.415,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2002. were as follows

General OblIgatIOn
Bonds

Balance July 1,2001

$27,045.00000

Deductions Debt Retired

4,630,000 00

Balance June 30, 2002

$22.415,000.00

- 16-

BALDWIN COUNTY BOARD OF EDUCAliON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6 GENERAL LONG-TERM DEBT

At June 30, 2002, payments due by fiscal year whIch includes pnnclpal and Interest for these Items are as follows'

FIscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008

$ 5,400,177 50 4,309.202,50 4,049.576 25 3,986,285 50 3,987,150,00 3,988.869,50

10lal Pnnclpal and Interest

$25,721,261,25

Note 7 ON-BEHALF PAYMENTS

The School DIstnct has recogmzed revenues and expendItures In the amount of $509.125 85 for health Insurance and retirement contnbutlons paid on the School Dlstnct's behalf by the followmg Stale AgenCies

GeorgIa Department of EducatIOn PlUd to the Georgia Department ofCommumty Health For Health Insurance of Non-CertIfied Personnel In the amount of $436,895 85

Office of Treasury and Fiscal Services Paid to the PublIc School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $72,230 00

Note 8 SIGNIFICANT COMMITMENTS

The follOWing IS an analySIS of slgmficant outstandmg construction or renovation contracts executed by the School Dlstnct as of June 30. 2002, together WIth funding aVlUlable

- 17 -

BALDWIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8 SIGNIFICANT COMMITMENTS

Prolect

Unearned Executed Contracts

Fundmg AVailable From State

02/0 I S-605-002 and SA 0 I S-605-034 Early Learning Center Baldwin County Administration Buildmg SIte Development Site Llghtmg Site Landscaping

$ 9,427,113 73 5,083,532.61 1.571,39098 1,098,218.45 97,066 16 626,88562

$ 4,493,702 00 1,174,824 00

$17.904,207,55 $ 5.668,526,QQ

The amounts described In thiS note are not reflected In the general-purpose financial statements

Note 9' CONTINGENT LIABILITIES

Amounts received or receivable pnncipally from the Federal government are subject to audit and review by grantor agencIes. This could result In requests for reimbursement to the grantor agency for any expendItures which are disallowed under grant terms The School District beheves that such dIsallowances, If any, WIll be Immaterial to its overall finanCial posltlon.

Note 10 SUBSEOUENT EVENTS

In the subsequent fiscal year, the School Dlstnct issued tax antiCipatIOn notes In advance ofproperty and sales tax collectlons In the amount of $5,230,000.00. The proceeds from these notes Will be used to pay current ell.penses and to fund the completIOn of certain ongOing capItal outlay projects.

Also, on March 18,2003, the voters of Baldwin County voted In favor ofa Special Purpose Local Option Sales Tax Referendum for educatlon purposes The Impositlon of the tax approved by the voters, as stated on the OffiCial Ballot for BaldWIn County, IS as follows'

"Shall a special one percent sales and use tax be Imposed In the Baldwin County School DIstnct for a period not to exceed 20 calendar quartcrs and for the raismg of not more than $36,775,000 for the purpose of' (I) retinng the School District's Tax Antlclpation Notes, Series 2003B In the aggregate pnnclpal amount of $4,600,000, and (II) completing the acqUlsitlon, constructIOn and equipping of Eagle Ridge Elementary School, the acqUISition, constructlon and eqUIpping of a Stadium and Athletlc Complcx, adding to, renovating, repaIring, improVing and eqUlppmg BaldWIn fhgh School. including the acquisitIOn, constructIOn and cqUlppIng of twenty-two (22) additional classrooms, purchasing initlal and additional school fumlshmgs, equipment, fixtures, school buses and technology improvements, and renovating, expandmg and enlarging school facihties m the amount of $32,175,000')

- 18 -

BALDWIN COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 10 SUBSEOUENT EVENTS

If ImpOSItion of the tax is approved by the voters, such vote shall also constitute approval of the Issuance of gencral obhgation debt of Baldwin County School Distnct in the pnncipal amount of up to $19,655,000 for the above purposes, such debt to be secured by the proceeds of the special one percent sales and use tax "

Note II ACCVMULATED EMPLOYEES' LEAVE

All twelve-month employees ofthe BaldWin County Board of Education earn annual leave based on number of years of continuous and creditable service. Annual leave may be accumulated up to thirty days Unused leave, up to the maximum accumulatIOn, IS paid to employees at their current rate of pay, upon retlrcment or terminatIOn of employmcnt See Note 1 - Compensated Absences

Note 12 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and elencal personnel employed by local school dlstncts are covered by the Teachers Retirement System of Georgia (TRS), which IS a cost-sharing mulllple employer defined benefit pensIOn plan TRS provides service retirement, dlsablhty retirement and SurviVOrs benefits for ItS mcmbers In accordance With State statute The Teachers Rctlrement System of Georgia Issues a separate stand alone financial audit report and a copy can be obtalncd from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School Dlstnct who are covered by TRS are reqUired by State statute to contnbute 5% of their gross earnings to TRS The School Dlstnct makes monthly employer contnbutlons to TRS at rates adopted by the TRS Board ofTrustccs In accordance WIth State statute and as adVised by their Independent actuary The reqUired employer contributIOn rate IS 9.24% and employer contnbutlOns for the current fiscal year and the preceding two fiscal years are as follows

Fiscal Year

Percentage Contributed

ReqUired ContnbutlOn

2002 2001 2000

100% 100% 100%

$ 2,561,042 77 $ 2,901,346 87 $ 2,687,217 48

- 19-

BALDWIN COUNTY BOARD OF EDUCATIDN COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

ASSETS
Cash and Cash EqUivalents
Accounts Receivable Inventones
Food Donated CommodrtJes Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Defarred Revenue
Total Liabilities FUND EQUITY
Fund Balances Reserved For Inventones Food Donated Commodities Purchased Food Unreserved Undeslgnated
Total Fund EqUity
Total LlablII"es and Fund EqUity

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

326,168 11 $

70,98296

14,07424

9,51947

29,800 25 50,41582

$

$

21,78238 $

97,74304

$

119,52542 $

17,499 06
63,00337
80,50243

$

29,600 25

50,41582

220,71693 $

$

300,93300 $

000 000

$

420,458 42 $ _~,,;80=15O;;:;2==43:;.,

Sse notes to the genera~purpose finanCIal statements
- 20-

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

397,15107 $

327,540 39

$ 1,055,624 57

1,079,218 28

631,33702

29,800 25 50,41582

54,694 19 49,19059

$ 1,055,624 57 $ 1,556,585 42 $ 1,062,76219

$

676,238 55 $

676,238 55 $

78,694 89

117,97633

289,530 96

450,277 37

11,16217

11,16217

$ 1,055,624 57 $ 1,255,652 42 S

297,42698 98,666 38
380,451 21
776,544 57

s

29,800 25 $

54,694 19

50,41582

49,190 59

$

---'0==--='00'--

220,71693

182,33264

$

000 S

300,933 00 S _---'2""86=,2"-17'-6"'2....

$ 1,055,624 57 $ 1,556,58542 $

- 21 -

BALDWIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REYENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Other Funds
TotIl Revenues
EXPENDITURES
Current Instrucllon Support ServtC8S Pupil Se!v,ces Improvement of Instructional SeMces General Admln,strabon School Adm'n1stra1,on Malntenence and Opera1'on of Plant Student Transportabon SllIVICeS Other Support SeMces Food ServtC8S Operabon
TotIl Expendrtunss
Excess of Revenues over (under) Expend,tunss
OTHER FINANCING SOURCES
Operat,ng Transfers In
Excess of Revenues and Other F,nanclng Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food Invemory - Net Change ,n Penod Donated Commod,bes Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOITERY PROGRAMS

$

183,64200 $

1,691,737 71

549,965 09

$ 2,425,344 80 $

751,97512 751,97512

$

676,781 28

41,344 32 10,991 57 11,53685

$ 2,386,960 71

$ 2,386,960 71 $

$

38,384 09 $

11,43120
752,08522 -11010

$

38,384 09 $

286,217 62

-24,89394 1,22523

11010
000 000

$

300,933 00 $_~_-:,:0,1f,00~

See notes to the general-purpose finanClel statements - 22-

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

935,617 12 $ 1,258,78178

$ 4,273,208 14

5,964,945 85

5,048,157 94

549,96509

546,83107

$ 4,273,208 14 $ 7,450,52806 $ 6,853,770 79

$ 2,712,241 02 $ 3,389,022 30 $ 3,265,683 97

513,36730 480,50369 324,29364
3,96925 46,39560 123,75312 73,74039
6,60257

554,711 62 491,49526 335,83049
3,96925 46,39560 135,184 32 73,74039 2,393,58328

460,840 25 255,43165 317,868 92
44,78523 108,17587
55,81362 2,408,491 00

$ 4,284,866 58 $ 7,423,91251 $ 6,917,090 51

$

-11,65844 $

26,61555 $

-63,31972

11,65844

11,76854

$

000 $

38,384 09 $

-63,31972

000

286,217 62

339,12665

-24,89394 1,22523

310076 7,30993

$

o()() $

- 23-

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

ASSETS Cash and Cash EquNalents Investments Accounts Recervable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Peyable Contracts Payable Retalnages Payable
Total Llabllitles FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST PrOjects For State CapItal Outlay Pl'OJects Unreserved Deficit Undeslgnaled Total Fund Equity
TotalLJebllitlss and Fund Eqully

REGULAR

BOND PROCEEDS

$ 1,033,625 68

$ 2,000,000 00

39,28220

$ 1,033,625 68 $ 2,039,282 20

$

594,660 99

976,57618 552,272 59

$ 2,123,509 76

$ $ 1,033,625 68
$ 1,033,62568 $

-84,22756 000
-84,22756

$ 1,033,62568 $ 2,039,282 20

See notes to the genera~purpose finenClaI statements - 24-

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

349,46527 $ 3,646,096 41 $ 5,031,18736 $ 10,267,37021

2,000,000 00

10,676,334 70

899,06512

936,34732

992,768 86

$

349,46527 $ 4,547,161 53 $ 7,969,534 68 $ 21,936A73 77

$

302,82022

46,64505

$

349,465 27

$

594,660 99

$

1,279,396 40

598,917 64

$ 2A72,975 03 $

14,17232 14,17232

$ 16,719,34569

$ 4,547,16153 $ 4,547,161 53

2,683,09258

499,30000

$

000

-84,22758

000

1,033,625 68

2,020,583 18

$

000 $ 4,547,16153 $ 5,496,559 65 $ 21,922,301 45

$

349A6527 $ 4,547,161 53 $ 7,969,534 68 $ 21,936,47377

- 25-

BALDWIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support SeIVlCeS BUSiness Admln,strabon
Caprtal Outlay Land and Land Improvements BUilding and BUilding Improvements EqUipment
Total Expendrtures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obllganon Bonds Par Value
Operating Transfers In Operabng Transfers Out
Total Other FinanCing Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCIng Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

313,06250 $

484,74914

$

313,06250 $

484,74914

$

000 $ 14,800,940 11

1,053,051 45

$

000 $ 15,853,991 56

$

313,06250 $ 15,369,242 42

$ -1 ,300,000 00 $ $ -1 ,300,000 00 $

-328,18340 -328,18340

$

-986,93750 $ -15,697,42582

2,020,563 18

15,613,198 26

$

1,033,625 68 $ =_;:;-84~12~27:..56~

See notes to the general-purpose finanCIal statements - 26-

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

684,11604 $

684.11604 $

126.24719

$

-"-0-"-00"-

73,80548

871.617 12

852.62839

$

000 $

757,921 52 $ 1,555.733 16 $

978.875 58

$

309,409 83

$

827,48340 $

000 $ 15,628,42351 1,053,051 45

405,000 00 1,239,47988
882,76280

$

827.48340 $

000 $ 16,681 ,47496 $ 2,836.65251

$

-827.48340 $

757.921 52 $ -15,125.74160 $ -1.857.77693

$

328,18340

$

328.18340

$ 16,431,41667

$

328,18340

1,376,74275

-1.628,18340

-1.331,74275

$ -1.300,000 00 $ 16.476,41667

$

-499,300 00 $

757,92152 $ -16,425,741 80 $ 14,618,63974

499.300 00

3.789.240 01

21,922,301 45

7.303,661 71

$

000 $ 4,547,161 53 $ 5,496,55965 $ 21,922,301 45

- 27-

BALDWIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET pEBT SERVICE FUND JUNE 30 2002

EXHIBIT ""

ASSETS cash and cash Equivalents Accounts Receivable
Total Aseets
FUND EQUITY Fund Balences
Reserved For Debt SeIVlCB
Unreserved Undestgnated
Total Fund Equrty

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 2402398 $

000 $

24,02398 $ 1,216,566 51

170

1 70

850

$ 24,02568 $

000 $

1:216,57501

$ 24,02568 $ 000
$ 24,02568 $

000 $

2402568 $

000 _ _ _~0.l!'00,!-

1 216,57501 000

000 $

24,02568 $ 1,216,57501

See notes to the general--purpose finanCial statements

- 28-

BALDWIN COUNTY BOARD OF EDUCATION CQMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERYICE FUND YEAR ENDED JUNE 30 2002

EXHIBIT "J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt SeJV1C8 PnllClpal Interest PllYlng Agent Fees
Tatal Expendltlxes
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
A=ued Interes1 on Bonds Sold Proceeds of Refunc:llng Bonds
PerVetue
Total Other Flnancng Sources
Excess of Revenues and Other FananClng Sources over (under) Expenditures
FUND BAlANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

236 96 $ 4,503,74560 $ 4,50398256 $ 4,968,26247

31128

1,446 83

1,75611

1,972 04

$

54824 $ 4,505,19243 $ 4,505,74067 $ 4,970,234 51

$

000 S 4,630,000 00 $ 4,630 000 00 $ 4,425,00000

1,06615000

1,066,150 00

689,986 88

2,140 00

2,14000

2,12000

$

000 $ 5,698,290 00 $ 5,698,290 00 $ 5,117,10688

$

54824 $ -1,193,09757 $ -1,192,54933 $ -146,87237

$

37,52096

1,303,583 33

$ 1,341,10429

S

54824 $ -1,19309757 $ -1,19254933 S 1,194,23192

23,4n44

1,193,09757

1,216,57501

22,34309

FUND BALANCE JUNE 30

S 24,02568 $

000 $

24,02568 S 1,216,57501

See notes to rile genera....purpose finanCIal statements

- 29-

BALDWIN COUNTY BOARP OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUNp TYPE - AGENCY FUNDS YEAR ENDED JUNE 30 2002

EXHIBIT "K"

HORACE MANN MEDICAl SPENDING ACCOUNT
ASSETS Cash and Cash EqUivalent.

BAlANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BAlANCE JUNE 30, 2002

$

3:500 04 $ 14,80390 $

12,553 08 $

5,750 86

LIABILITIES Funds Held for Others

$

3,500 Q4 $ 14,80390 $

12,553 08 $

5::.,.:..75;::;0:.:86:::

SPECIAL ACTIVITIES ACCOUNT
ASSETS Cash and Cash EqUNalents

$

5,74028 $ 6:486 00 $

5,305 55 S _ _.:6",900:=:.:7~3

LIABILITIES Fund. Held for Others

$

6,486 00 $

5,305 55 $ _ _.::6,..::;900=7,::3

TOTALS-AGENCY FUNDS
ASSETS Cash and Cash EqUIValents

$

9,240 32 $ 21,26990 $

17,858 63 $ _ _.,:,12:;.,65~.1 .5:;:9

LIABILITIES FlXlds Held for Others

$

9,240 32 $ 21:26990 $

17,858 63 $ _ _.lo12~,65~1,",5?:,9

See notes to the general-purpose finanoal statements

-30-

BAlDWIN COUNT)' BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDER JUNE 30. 2002

SCHEDULE "1"

FUNDING AGENCY PRQGRAMIGRANT
Agriculture. U S Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Educahon Food and Nutl'lhon Program Food $eMceS Sdlool Breakfast Program NaUonal School Lundl Program
Total Child NutrItion Cluster
Other Programs Pass-TlYough From GeorgIa Department of EducatIOn Food and Nutnbon Program Food D1stnbutlon Program (1)
Total U S Department of AgrlaJfture
Education U S Department of Speaal Educabon Cluster Pass-Through From Georgia Department of Education IndiVIduals with Dtsablbbes Education Ad Part B - Speclal Educatlon Flow Through Capaaty BUlIdIf'lQ Improvement Preschool
Total Speas! Education Cluster
Other Programs Pass-Ttvough From Georgia Department of Education Elementary and secondary Educa\K>n Ad Title I Grants to Local Educabonal Agencies TrtIa II EISenhower ProfesSIonal Development Title II! TedUloiogy Lrteracy Challenge Fund Grant TlUe VI Innovative Education Program StrategteS Class Size ReductIOn
safe and Drug-Free SChools and CommlXlltles
VocatJonal Education - BaBle Grants to States
High School Program BaSIC Grant
Total U S Department of EducatJon
Heanh and Human ServIces U S Department of DIrec1 Head Start Pass-Through From Georgia Department of Human Resources After Sdlool Program
Total U S Department of Health and Human servICeS

CFDA NUMBER

PAS5THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10553 10555

NiA

S 36763353

(2)

NiA

1.21367651 S 2 276 533 04 (3)

S 1 581 31004 S 2.27653304

10550

NiA

11042767

11042767

S 1 691.73771 S 2.386 960 71

84 027 84 027 84173

NiA

S 869.89700 S

NiA

19.040 00

NiA

45971 14

S 934 908 14 S

869.89700 19.04000 45971 14
93490814

84 010 84 281 84 318 84298 84340 84186
84048
. 93600
93575

NiA

1 287972 86

1.287972 88

NiA

25.085 70

36.74374 (3)

NiA

4732417

47.32417

NiA

40 589 03

40.58903

NiA

19300544

1930OS44

NJA

8880943

86 809 43

NiA

93,58518

93.58519 (3)

S 2,711,27997 S 2722,93802

S 145934200 S

1 459342 39 (3)

NiA

10258617

10258617

S 1 581 928 17 S

1 581 92856

- 31 -

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
yEAR ENDED JUNE 39. 2002

SCHEDULE "1"

FUNDING AGENCY PROGBAMIGRANT
Defet1se, U S Department of DIrect Department of !he Navy ROT C Program

CEDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPEND1TURES IN PERIOD

$ 51,31967 $

150 707 46 (3)

Total Federal Flf1snaal AssIStance

$ 601626552 $

NlA III Not Available

Notes to the SChedule of Expendllures of Fed0ral Awards

(1) The amounts ahown for the Food DIstribution Program represent the Federally assigned value of nonmonetary asSIStance for donated commodlUes received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not mamtalned separately and are IIlCIuded In the
2002 NalJonal School Lunch Program (3) Expenditures for this program lIlCIude State and/or Other FLn:ts Expenditures are not mamtalOed
by fund source

Major Programs are ldenbfied by an aster1sk (*) In front of the CEDA number

The Sdlool OiStnct did not proVIde Federal AssIstance 10 any SubreClplefrt

The accompanymg schedute of expenditures of Federal awards lndudes the FedsrBl grant actlVlty of the
BalctNln County Board of Education and Is presented on the modtfted aeausl basla of accounting, wtuch 15 the basis of accounting used In the Jn88nt8tJon of the general-purpose filanoslstatemenls

6.822,534 75

see notes to the generaJ-PU"PO&e finanaal statements

32 -

BAlDWIN COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCYIFUNDING
GRANTS Commumty Marrs. Georgia Department of GovemOB Emergency FWlds
EducallOn Georg.. Department of Qualrty BasIc Educabon Direct InstrudJonal Cost Kindergarten Program Kindergarten Program - Earty Intervention Program Pnmary Grades (1 -3) Program Pnmary Grades - Early Intervent.,n (1 -3) Program Upper Elementary Grad.. (4-5) Program Upper Elementary Grades - Early Intervenbon (4-5) Program Middle Graodes (6-8) Program Middle Sdlool (6-8) Program H'!lh Sdlool Genaral Educabon (9- 12) Program Vocabonal Laboratory (9-12) Program Students with DlS8blhlJeS Category I Gifted Student - Category VI Remedial Educa1lon Program AftamatJve Educatoo Program EnglISh Speakers of Other Langu"'!l8S (ESOL) 20 Days Addlbonaltnstrucbon Mad.. Center Programs Staff and ProfessIOIl81 Development Indn-ecl COllt categorical Grants PupU Transportation Regular Bus Replacement
5I>al1l'ly Grant
Nursing 5ervk:es
Pnnapal Supplements Vocabonal SupervISOrs Mid-term AdJusbnent Hold-Harmiess Deferred Summer Salanes (Poor Year) Deferred Summer Salaries (Curr-ent Year) Educahonal EQuailzabOO Fundlng Grant Food 5e1VlCllS Vocational Educabon Other State Programs
Heanh Insurance Praschool HandlC8pped Program Spe"",1 Education SUpport Cost Turtlen for the Mun.HandlC8pped LotI8ry Programs AsBISlMl Technology Computers In the Classroom POlltsecondary Oplions
Office of SChool ReadIness Pre-Kuldergarten Program
Office of Treaswy and Frscal Services PublIC School Employees Rebremenl

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

s

500000

s

500000

1,338 592 00 429 344 00
3,743,71900 503,745 00
1 60566700
320,8nOO 67,57800 2436,682 00 2,337 151 00 694 369 00
4629 696 00 868 878 00 86,138 00 201,230 00 30,644 00 155,401 00 556,00500 115,536 00
3,566 833 00

1,338,592 00 42934400
3,74371900 50374500
1,605 667 00
320 872 00 67,57800
2436,682 00 2,337,15100
694,36900
4,629696 00 868,87800 86 138 00 201 230 00 30 644 00 155,401 00 556,00500 115,536 00
3,566,83300

860 272 00 224,71500
20,000 00 130,099 00 26,651 00 30,661 00 365,444 00 -3487,27904 3455,071 00 2574,154 00
23,309 64

S 18364200

436,89585 106,536 00 56,000 00 98,21400

17,62000

1629868 152,22079

860 272 00 22471500
20,000 00 130 099 00 26 651 00 30,66100 36544400 -3487,27904 3,455,071 00 2,574 154 00 183,64200 23,309 64
436 895 85 106 536 00 56 000 00 98 214 00
16298 68 152,22079
17,620 00

583,455 65

583,45565

72,230 00

n,23O 00

- 33-

BALDWIN COUNIY BOARP OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPED JUNE 30 2002

SCHEDULE "2"

AGENCYIFUNDING
CONTRACTS Educabon, Georg&8 Departmenl of K-3 StaIewK1e Readln9 Program 4-8 Statewide After School Program
OTHER Boonl of Regents of the Uruverslty SyB1am of Georg.. Ihroogh Georgia Collega & Stale UnIverslly Postsecondary ReadllleSs Ennchment Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

72,62042

54,88030

$

72,620 42

54.88030

4,95O 00

4.95000

$ 28836,12417 $ 935.61712 $ 29,n1,74129

See notes to the general-purpose f1nanaal statements

- 34-

BALDWIN COUNTY BOARD OF EDUCATlQN
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2002

SCHEDULE 0"

PROJECT
Payment of Prlndpal and Interest on 1992 General Obligation Rehmdlll9 Bonds commg due January 1 1998 and thereafter
Capital Outlay ProJOds

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (21

AMOUNT EXPENDED IN CURRENT YEAR (31 (41

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

$ 239066300 $ 2,390 663 00 $ 326 n7 50 S 1412,88500 Ongoing

5773000000

57730,000 00

16681,47496

25791 144 23 OngOUlQ

$ 60,120[66300 $ 60[12066300 $ 17 010,252 46 $ 27[204[02923

(11 The 5chooI DlSInct's original cost estimate as opedlied In the resolutIOn calling lor the IlJ1lOSrbOn of the Local OpbOn Sales Tax

(2) The School Otstnet'& current estimate of total cost for the PfOtects Includes all cost6 from profeCI inception to completion

(31 The \/Otero of BeIdwu1 County approwd the unposrtIon of a 1% ..les tax to fund the above proJOds and retire
assoaated debt Amounts expended for these p~ may Include sales tax proceeds, alate, local property taxes and/or other funct$ over the life of the proJ8CtS

(4) In addlbon to the expendrtures &hewn above, the 5chooI Dlstr1ct has Incurred Interest to provide advance funchng for the above projects 8S follows

Poor Years

Current Year

1[037 [372 50

Tolal

$ 342758438

See notes to the gertefal-purpose financal statements

35

- - - - - - - - - - - - -- - --
BALDWIN COUNTY BOARD OF EDUCATION GENERAl FUND - gUALITY BASIC E[)lICATION PROGRAM (gBEI
A1.LOJMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
D.ect InslruCbOnal Programs Kindergarten Program Kindergarten Program-Early InterventlOll Program Pnmary GIlIdes (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (04-5) Program Upper Elementary G<ades-Early Intervenbon (4-5) Program Midlle GIlIdes (6-8) Program Middle School (6-8) Program High School General EdueatJon (9-12) Program VOC01IonaI Laboratory (9-12) Program
Students WIth Dlsabliltles
Ga1Bgoryl Category II Category III category IV category V GltIed Student - category VI Remedial EducabOn Program AIIemabve EducabOn Program EngI,sh Spea!<ers 01 Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAl. PROGRAMS
Mod.. Center Program Staff and Profeaalonal De'Welopmenl

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE OBE PROGRAM COSTS

SAl.ARIES

OPERATIONS

TOTAl.

$

1.501.61900 $ 1635.580 46 $

10429 36 $ 1646.009 82

481634 00

613.777 29

868 05

614.685 34

4199 665 00

4.226.371 15

7933931

4305.71046

565,096 00

721.24990

64859

722098 49

1801,22100

2.33573180

80,71869

2.396 450 29

359951 00 7580800
2,733 445 00 2621,79200
n6936 00 5.19354500
974.698 00 96.62800
22573800 34 376 00

27322300
3.11802530 3,660.266 94
676.552 70
456 487 56 1 530.705 55 3.268 272 46
169.052.25 85744
1459.15734 532,22663 232,060122 50.359 46

64046
106.07607 14131256 2195750
1.44989 1 152 43 31 72956 66,35965
7649249 14700 65
8950 23 243746

273 663 48
322410337 3.801.599 52
700 510 20
459.93747 1 531.65798 3300.002001
235.41210 65744
1.537.84983 546 929 28 241 034 45 52 796 92

S

21844,15200 $ 24 964 .003.29 $ 62148519 $ 25591,48848

62372000 12960600

65711168 44 06187

11016687 6760<1 14

76727855 131.666 01

TOTAL aBE FORMULA FUNDS

$

22397,47600 $ 25665.19684 $ 62525620 $ 26490.453001

(1) Compnsad of State Funds plus Local Five M,U Share

see . - . 10 the general-purpose IinanaaI statements

- 36-

BAlDWIN COUID BOARD OF EDUCATION GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM (aBEl
AlLOTMENTS ANp EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

Oak HIli Middle School Baldwin High School Midway Elementary School Blandy Hills Elementary School Creekside Elementary School Oconee Valley School DaVIS Elementary School SouthSIde Elementary SChool Central Office (Altemabve Educabon Progrem) Other AUXiliary FaCIlity
TOTAL
(1) Compnsed of State Funds plus Local FIVe Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

4,723,71900 $

5,917,96539

4,461,34300

5,283,11544

2,559,007 00

2,966,236 08

2,n4,25000

2961,79638

2,886,39700

3,244,37951

326,57500

649,81598

1,918,n600

2,104,867 50

1,748,34700

1,748,717 69

225,738 00

26,599 81

687,994 70

$ 21,644,15200 $ 25,591,468 46

See notes to the generel-purpose finanCIal statements - 37-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

<u'_U I W. IIINTOi'
STATE AllDI1QR (400l" 6',1-,217.

DEPARTMENT OF AUDITS AND ACCOUNTS
2~4 WJ,hlnglOn ~IrCel. ~ W SUlle 214 ALI.lnLJ (,corgIJ 3111 14-H41Kl
July 15.2003

Honorable Sonny Perdue. Governor Members ofthc Gcneral Assembly Members of thc State Board of EducatIon
and Supenntcndent and Member, of the Baldwm County Board of !:.ducatIon
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL RFI'ORTING BASED ON AN AUDIT OF I-lNANCIAL STA'I EMENTS PERFORMED IN ACCORDANCF WITH GOVERNMENT AUDITING STANDARDS
Ladles and Gcntlemen
We have audited the financial ,tatements of Baldwm County Board of EducatIOn as of and for the year ended Junc 30, 2002. and have I"ued our report thereon dated July 15,2003 ThiS report wa~ qualIfied for a scope lImitatIon and for vanous departure, from generally accepted accountmg prmclple,. a_ IdentIfied m the auditor's report on the general-purpo~ finanCial statements Except as dl~cussed m the followmg paragraph. we conducted our audit m accordance with audltmg standards generally accepted m the Umted Statcs of Amenca and the standards applIcable to financial audits contamed m Governmcnt Audltmg Standard,. Issued by the Comptroller Gencral of the Umted Statcs
We dId nOl obscrvc the takmg ofeither the I' ederal donated commoditIes mventory or the purchased foods mventory at June 30, 2002, nor could we satIsfY ourselves as to the accuracy of the amounts stated a_ mventones through alternatIve procedures
ComplIancc
As part of obtammg reasonable assurance about whether Baldwm County Board of EducatIon's finanCial statements arc frce of matenal misstatement. we performed tests of Its complIance With certam proVISions oflaws, regulatIons. contracts and grants, noncomplIance With which could have a direct and matenal effcct on the determmatlOn of financial statement amounts Howevcr. provldmg an opmlon on complIance With those provlslon~ was not an objectIve of our audit, and accordmgly, we do not express such an opmlOn The results of our tests dlscloscd no mstances ofnoncomplIance that arc rcquired to be reported undcr Government Auditing Standards
2002YB-40

Internal Control Over Fmanclal Reporting
In plannmg and perfonning our audit. we considered Baldwin County Board of EducatIOn's mternal control over financial reportmg m order to detennme our auditmg procedures for the purpose of expressmg our opmlon on the financial statements and not to provide assurance on the mternal control over financial reportmg However. we noted certain matters mvolvmg the mternal control over financial reportmg and ItS operation that we consider to be reportable conditions. Reportable conditIOns mvolve matters commg to our attentIOn relatmg to slgruficant deficiencies m the deSign or operation of the mternal control over finanCial reporting that, m our judgment, could adversely affect BaldWin County Board of EducatIon's ability to record, process. surnmanze and report finanCial data consistent With assertions of management m the finanCial statements Reportable conditions are descnbed m the accompanYIng Schedule ofFmdmgs and Questioned Costs as Items FS-605I-02-0I and FS-6051-02-02
A matenal weakness IS a condItIOn m which the deSign or operation of one or more of the mternal control components does not reduce to a relatively low level the nsk that misstatements m amount~ that would be matenal m relation to the finanCial statements being audIted may occur and not be detected Wlthm a IImely penod by employees in the nonnal course of perfonning their asSigned functions Our conSideration of the internal control over financial reporting would not necessarily disclose all matters m the mternal control that might be reportable conditions and. accordmgly, would not necessanly disclose all reportable conditions that are also conSidered to be matenal weaknesses However, both of the reportable conditions deseribed above are conSIdered to be matenal weaknesses
Thl~ report IS mtended solely for the mfonnatlOn and use of the management, members of the Baldwm County Board of EducatIOn, Federal awardmg agencies and pas~-through enlltles and IS not mtended to be and should not be used by anyone other than these specified partIes
--...Respectfully submitted,
RWHgp 2002YB-40

RI,.,,'tLl W. HI" ION
STATE AUDiTOR
(~OIl G56-2114

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W..Lc..hlngton 'itr('el S W ~UIIC 214 AII.nl., Georgi. 30334-!\4(Ml
July 15. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Member~ of the State Board of Educallon
and Supenntendent and Members of the Baldwm County Board of EducatIOn
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE II\' ACCORDANCE WITII OMB CIRCULAR A-133
Ladlcs and Gentlemen
Comphance
We have audited the eomphanee of Baldwm County Board of EducatIOn with the types of comphance requlTements descnbed In the US Office ofManagement and BudKet (OMB) Ctrcular '1-133 Complwnce Supplement that are applIcable to each of ItS major Federal programs for the year ended June 30. 2002 Baldwm County Board ofl::.ducallon's major Federal programs are IdenlIfied In the Summary of AudItor's Results SectIon of the accompanYing Schedule of Fmdmgs and QueslIoned Costs Comphance WIth the reqUirements of laws. regulatIOns. contracts and grant~ apphcable to each of Its major Federal programs I~ the responsIbIlIty of Baldwm County Board of I::.ducatlon's management Our responslblhty IS to express an oplnton on Baldwin County Board of Educallon's comphanee based on our audit
We conducted our audIt of comphance m accordance With audltmg standards generally accepted m the Unttcd State., of Amenca; the standards applIcable to finanCIal audIts contamed In Government Auditing Standards. Issued by the Comptroller General of the Untted States. and OMS Circular A133. Audlls of State~. Local (Jovernmen(~, and Non-Profit OrKam=atlOm I hose standards and OMB Circular A-133 requIre that we plan and perform the audit to obtam reasonable assurance about whether noncomphance WIth the types ofcomphanee requIrements referred to above that could have a dlTect and matenal effect on a major Federal program occurred An audIt includes examining. on a test basiS. eVIdence about the Baldwm County Board of Edueallon's compliance With those reqUirements and performmg such other procedure~ as we conSIdered necessary In the clrcumstance~ We belIeve that our audit proVides a rea~onable basiS for our oplnton Our audIt does not proVide a legal determinatIOn on Baldwm County Board of Education's comphance with those requIrements
2002SA-30

In our opimon. the Baldwin County Board of EducatIOn complIed. mall matenal respects, with the requirements referred to above that are applIcable to each of It~ major Federal programs for the year cnded June 30, 2002
Internal Control Ovcr ComplIance
The management of BaldWin County Board of Education IS responsible for establishing and maintaining effective internal control over complIance WIth requIrements of laws, regulations. contracts and granl~ applIcable to Federal programs In planmng and performing our audit, we con~ldered BaldWin County Board of Education's Internal control over complIancc With reqUiremenl~ that could have a direct and material effect on a major Federal program In order to determine our auditing procedures for the purposc of expressing our 0plmon on complIance and to test and report on Internal control over complIance In accordance With OMB CIrcular A-133
We noted a certain matter involVing the Internal control over compliance and ItS operation that we conSider to be a reportable condition Reportable conditions Involve matters coming to our attention relating to slgmficant defiCienCies In the deSign or operation ofthe Internal control over complIance that, In our Judgment. could adversely affect the BaldWin County Board of Education's abilIty to admInI~ter a major Federal program in accordance W1th applIcable reqUirements oflaws. regulations. contracts and grants The reportable condItion IS descnbed In the accompanYing Schedule of Findings and Questioned Costs as Item FA-60S 1-02-01
A matenal weakness IS a condition In which the deSign or operation of one or more of the Internal control components does not reduce to a relatively low level of nsk that noncomplIance With the applIcable requIrements of laws, regulatIOns, contracts and grants that would be material In relation to a major Federal program being audited may occur and not be detected within a timely penod by employees In the normal course of performing theIr asSigned functIOns Our conSideration of the Internal control over complIance would not necessarily disclose all matters In the Internal control that might be reportable conditions and. accordingly, would not necessanly disclose all reportable conditIOns that are also conSidered to be matenal weaknesse~ However. we do not belIeve the reportable condition descnbed above IS a matenal weaknes~
ThiS report IS Intended solely for the informatIOn and use of the management. members of the BaldWin County Board of Education, Federal awarding agencies and pass-through entIties and IS not Intended to be and should not be used by anyone other than these specified parties
----- u\.~ Respectfully submitted. Rus II W Hinton State Auditor
RWHgp 2002SA-30

SECTION III AUDlTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

BALDWIN COUNTY BOARD OF EDUCAnON 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-6051-00-02 FS-6051-0 1-0 I

Further Action Not Warranted Unresolved - See CorrectIve ActIon/Responses

CORRECTIVE ACTIONfRESPONSES

GENERAL FIXED ASSETS FaIlure to MaIntam General Fixed Assets Account Group Fmdmg Control Number' FS-6051-QI-Ol

Baldwm County Board of EducatIon has contracted with Maxlmus, who did a phySical count of assets With a replacement value or cost of $5,000 00 or more ThiS fixed asset IIstmg and valuation Will be booked as of June 30, 2003 All details WIll become a part of Fixed Asset accountmg on the MUNIS system m order to be 10 complIance WIth GASB 34 as of June 30, 2003

SECTION IV FINDINGS AND QUESTIONED COSTS

BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

SUMMARY OF AUDITOR'S RESULTS

Type of Report I~~ued on the Fmanclal Statements The audltor'~ opinion on the Baldwm County Board of EducatIOn's financial statements was quahfied for a seope hmltatlOn and for vanous departures from generally accepted accountmg pnnclples

2. Reportable CondItions m Internal Control Dlscloscd by the Audit of the Fmanclal Statements The audit report for the BaldWIn County Board of Education disclosed finanCial statement reportable condItions related to the follOWIng control categones

Cash and Cash EqUIvalents

General Fixed Assets

All of the reportable conditions descnbed above are conSidered to be material weaknesses

3 Noncomphance Matenal to the Fmanclal Statements The audit of the BaldwIn County Board of Education disclosed no mstances of noncomphance that were deemed to be matenal to the finanCial statements.

4 Reportable ConditIOns m Internal Control Over Malor Programs The audit report for the Baldwm County Board of Education dlscloscd a reportable condillon m mternal control over major programs for thc followmg comphance reqUIrement

Cash Management

The reportable condition descnbed above IS not conSidered to be a matenal weakness

5 Type of Report Issued on Compliance for Major Programs The audllor's OpInIOn on the Baldwm County Board of Education's report on comphance With requirements apphcable to major programs wa~ unquahfied

6. Audll Flndmgs ReqUIred to be Reported by SectIOn 510ra) of OMB Circular A-133 The Bald\\1n County Board of EducatIOn's audit disclosed an audit findmg reqUIred to be reported by sectIOn 510(al ofOMB ClreuJar A-133 ThiS finding IS mcluded in Section IV of tlus report

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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
SUMMARY OF AUDITOR'S RESULTS
7 Malor Programs Federal awards audIted as major programs are as follows 10.553 Food and NutntlOn Program - Food Scrvlces - School Breakfast Program 10555 Food and Nutntion Program - Food ServIces - NatIonal School Lunch Program 84027 Individuals With DisabilIties Education Act - Part B - Special Education Flow Through 84173 Individuals WIth DisabIlItIes Education Act - Part B - Special Education Preschool 84173 Individuals With DisabilIties Education Act - Part B - Special Education Capacity BuildIng Improvement 93600 Head Start Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300.000 00
9 Low RIsk Audltee The BaldWIn County Board of EducatIOn did not qualIfy as a low nsk auditee as defined by Section 530 ofOMB Circular A-l33
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Reportable ConditIOn - Matcrial Weakness FIndIng Control Number FS-605I-02-01
The School Dlstnct's accountmg procedures were InsuffiCient to provide for adequate Internal control over the bank reconCIlIation process for the general operating account School Dlstnct personnel performed reconCIliations each month: however. each month's reconciliatIOn reported an umdentlfied vanance between the bank statement balance and the general ledger balance. Further. thiS vanance changed from month-to-month Some attempt was made by School Dlstnct personnel to resolve these vanances. but the general operating account remaIned unreconciled for all of fiscal year 2002 and up to the date of thIS report
In additIon. no other School DIstrict personnel were performmg an admirustratlve review ofthe bank reconcIlIations to ensure reconCIlIatIons were properly completed.
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BALDWIN COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENf FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS Inadequate Accounting Procedures Reportable ConditIOn - Matenal Weakness Finding Control Number FS-605I-02-01
These defiCiencies were a result of management's lack of proper Internal control procedures over cash and bank reconcIlIations that are necessary to adequately safeguard assets and record the cash operations of the School Dlstnct The accounting personnel of the School Dlstnct were given instructions In the proper accounting procedures which Include the necessity of promptly reconCIlIng the bank accounts, completely IdentifYing all vanances, recording adjustments to the accounting records once identified, and performing an administrative review of all bank reconCIlIations Appropnate controls should be Implemented to safeguard the cash operatlons ofthe School District
GENERAL FIXED ASSETS Failure to Maintain General FIxed Assets Account Group Reportable Condition - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-6051-02-02
The BaldWin County Board of Education failed to malntlUn a system-WIde General Fixed Assets Account Group Wltlun the formal accounting records as required by generally accepted accounting pnnclples This condition results In the general-purpose finanCial statements ofthe School Dlstnct being Incomplete and not in accordance WIth generally accepted accounting pnnclples Appropriate actIOn should be taken by the School Dlstnct to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group These SUbSidiary records should Include an Inventory of land, bUildings and eqUipment owned by the School Dlstnct and should Include, but may not be lImited to, date acqUired, acqUisitIOn cost, estimated replacement cost. location and descnptlon Detailed records should be maintaIncd ofall additiOns and deletions to the General Fixed Assets Account Group
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BALDWIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS CASH MANAGEMENT ExcessIve Cash Balances Reportable Condition U S Department of Education Through Georgia Department of EducatJon FindIng Control Number: FA-6051-02-01 A revIew of cash management procedures for the IndlVlduals \\1th Dlsabiliues EducatIOn Act - Part B - SpeCIal Educatlon - Flow Through (CFDA 84 027) and Preschool (CFDA 84 173) programs disclosed that cash draws were made In advance of immedIate cash needs, resultIng in the accumulatIOn of excessIve cash balances The Part B - Special Education - Flow Through and Preschool programs maIntaIned excessive endIng monthly cash balances for four months ofthe year under revIew As a result of these excesSIve cash balances, these programs earned Interest revenue of$189.85, wIuch IS above the $100 amount the School Dlsrnct IS allowed to retaIn The School Dlstnct should return $89 85 to the GeorgIa Department of Education and procedures should be Implemented to mInimIze or elimInate the time elapSIng between the transfer of funds from the Georgia Department of Educatlon and disbursement of such funds by the School Dlsrnct
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