Bleckley County Board of Education, Cochran, Georgia, report on audit of the fiscal year ended June 30, 2001

BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHffilTS

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

CBANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

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

SCHEDULES.

1 SCHEDULE OF'EXPENDITURES OF F.EDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

'

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

27

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

28

5

BY SITE

29

BLECKLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTIONll 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-l33
SECTIONlli 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

'V. RIISSEI.I.

HINTO/'\

STATE AUDITOR

140416562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WashinglOn Slreet. S.W.. Suite 214 Atlanta, Georgia 30334-X400
. February 11,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bleckley County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Bleckley County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Bleckley County Board of Education's management. Our responsibility is to express an opinion' on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United . States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes.examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis' for our opmlOn.
As described in the notes to the general-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 some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the 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 Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should. be recorded when available and measurable and expenditures should be recorded when incurred, rather tha~ when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Bleckley County Board of Education as ofJune 30,2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issue<;l our report dated February 11, 2002, on our consideration of the Bleckley County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Bleckley County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFeder~1 Awards as required by U. S. Office ofManagement and Budget Circular A-I33, Audits o/States. Local Governments. and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the

audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.

RVVH:gp 200IARL-13

w~~
Ru sell W. Hinton State Auditor

BLECKLEY COUNTY BOARD OF EDUCAnON

BLECKLEY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 3D, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food . Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

951,409.63 $

142.857.34 $ 1,192,758.52

600,000.00

147,571.57

132,476.67

156,268.73

31,222.87 15,525.64

Total Assets

$ 1,698,981.20 $

322,082.52 $ ===1=,3=4=9=,0=27=.:;;25=

Total Liabilities and Fund Equity

$ 1,698,981.20 $

322,082.52 $ =~1,!,;;3,,;;49~,=02:=;7~.2~5~

The notes to the general-purpose financial statements are an integral part of this statement. - 2-

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

0.00

$ 2,287,025.49 $ 1,537,259.13

600,000.00

436,316.97

582,511.44

31,222.87 15,525.64

36,807.75 10,341.76

$'

1,240,000.00

327,206.92

1,240,000.00 327,206.92

1,280,000.00 423,279.51

$

0.00 $

1,567;206.92 $ 4,937,297.89 $ 3,870,199.59

$

128,253.14 $

235,715.09

183,156.22

194,334.49

$

327,206.92

327,206.92

423,279.51

1,240,000.00

1,240,000.00

1,280,000.00

$

1,567,206.92 $ 1,878,616.28 $ 2,133,329.09

$

0.00

$

0.00

$

326,343.80 $

73.82

1,328,178.07

301,516.82 25,607.72
599,686.75

31,222.87 15,525.64

36,807.75 10,341.76

1,357;337.41

762,909.70

$ 3,058,681.61 $. 1,736,870.50

$

0.00 $

1,567,206.92 . $ 4,937,297.89 $ 3,870,199.59

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BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures.
OTHER FINANCING SOURCES
Capital Leases
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 10,850,281.74 $ 39,406.63
2,169,062.25 235,374.70
$. 13,294,125.32 $

786,852.32 1,526,729.02
391,605.62
2,705,186.96

$ 9,005,009.41 $

310,117.23 214,329.00 287,995.82 236,410.04 839,309.11
48,721.09 824,696.86 669,270.52
7,964.74 33,610.07 20,267.12 33,908.44 19,014.99

172,556.37 27,268.20

$ 12,750,449.01 $

$

543,676.31 $

1,138.527.20 225,571.22 124,575.97 116,707.90
9,522.68 26,541.37 23,418.08 1,065,598.12
20,139.28 1,163.72
2,751,765.54 -46,578.58

96,623.06

$

640,299.37 $

1,008,428.75

-46,578.58 128,755.00

-5,584.88 5,183.88

FUND BALANCE JUNE 30

$ 1,648,728.12 $ ===8=1:;,,7=7=5.=42==

The notes to the general-purpose financial statements are an integral part of this statement. - 4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 11,637,134.06 $ 10,952,105.90

1,566,135.65

1,467,936.95

$

872,384.53 $

108,245.00

3,149,691.78

3,057,865.01

41,365.20

668,345.52

532,108.55

$

913,749.73 $

108,245.00 $ 17,021,307.01 $ 16,010,016.41

$ 10,143,536.61 $ 9,383,352.64

$

185,258.41

535,688.45 338,904.97 287,995.82 353,117.94 839,309.11
48,721.09 834,219.54 695,811.89
7,964.74 57,028.15 1,085,865.24 33,908.44 204,273.40

807,016.73 389,579.24 . 269,391.81 293,764.76 806,695.00
52,475.99 788,743.91 769,363.88
7,592.62 44,501.62 1,045,782.58 28,629.00 492,002.82

$

40,000.00

68,245.00

232,695.65 96,676.92

177,865.60 101,362.21

$

185,258.41 $

108,245.00 $ 15,795,717.96 $ 15,458,120.41

$

728,491.32 $

0.00 $ 1,225,589.05 $

551,896.00

$

728,491.32 $

599,686,75

96,623.06

216,849.04

0.00 $
0.00

1,322,212.11 $
1,736,870.50

768,745.04 980,955.08

-5,584.88 5,183.88

-9,579.26 -3,250.36

$ 1,328,178.07 $

0.00 $ 3,058,681.61 $ 1,736,870.50 - 5-

BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT "COO

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 10.672.728.11 9.082.00
2.193,891.00 146.739.00

$ 10.850.281.74 39,406,63
2.169,062.25 235.374.70

Total Revenues

$ 13.022,440.11 $ 13.294.125.32

EXPENDITURES

Current Instruction Support Services Pup)1 Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service

$ 9.075.089.15 $ 9.005.009.41

36'8.587.00 282,422.96 282.637.00 222.937.00 841.277.00 111.134.00 915.502.00 729.105.00
7,778.00 40.000.00 16,861.00
48.800.00

310.117.23 214.329.00 287.995.82 236,410.04 839.309.11
48.721.09 824.696.86 669.270.52
7.964.74 33,610.07 20.267.12 33,908.44 19.014.99 199.824.57

Total Expenditures

$ 12,942,130.11 $ 12,750,449.01

Excess of Revenues over (under) Expenditures

$ 80,310.00 $ 543.676.31

OTHER FINANCING SOURCES

Other Sources

96.623.06

Excess of Revenues and Other Financing Sources

over (under) Expenditures

$

80,310.00 $ 640.299.37

FUND BALANCE JULY 1, 2000

930.084.80

1,008,428.75

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

26,960.69

FUND BALANCE JUNE 30, 2001

$ 1,037,355.49 $ 1,648,728.12

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 729,688.32 $ 786.852.32 1.590.361.00 1.526.729.02

337.000.00

391.605.62

$ 2,657.049.32 $ 2.705,186.96

$ 1.213.193.00 $ 1.138.527.20

235,402.32 113,140.00

225.571.22 124.575.97

122.592.00

116.707.90

8.900.00 24.833.00
29.964.00 988.279.00

9.522.68 26.541.37
23,418.08 1.065.598.12

21.303.00 $ 2,736,303.32 $ 2,751.765.54 $ -79.254.00 $ -46,578.58

$ -79.254.00 $ -46.578.58

132.277.39

128.755.00

22.712.38

-5.584.88 5,183.88

$ 75.735.77 $ 81,775.42

The notes to the general-purpose financial statements are an integral part of this statement. - 7-

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BLECKLEY COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Bleckley County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District 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 District is a primary government and consists of all the organizations that compose its legal entity.
, FUND ACCOUNTING
The School District uses funds and an account group to report on its fihancial'position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recon;led in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activiti'es. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. The~e transactions relate to resources obtained and used for services provided by a board of education.

-8-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL 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 principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial.reporting treatment applied to a fund is determined by its m'easurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and' current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. 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 susceptible to accrual. Revenue from grants and donations is. recognized in the fiscal year in which all eligibility requirements have been satisfied.
-9-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

. JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTINGPOLICIES
Expenditures are generally recognized when the .related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Bleckley County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding. sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash oJ}. hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial
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BLECKLEY COUNTY BOARD OF EDUCAnON .

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Fed~ral savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among . options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

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BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Bleckley County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) onNovember 22,2000 (levy date). Taxes were due on February 10,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Bleckley County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,157,310.50.

The tax millage rate levied for the 2000 tax year (calendar year) for the Bleckley County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

12.25 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $980,629.53 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection ofthis tax once an additional $1,341,530.73 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.

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BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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 finan~ial position or results ofoperations in conformity with generally accepted accounting

principles. Neither are such data comparable to a consolidation. Interfund eliminations have not

been made in the aggregation of this data.

.

Note 2: DEPOSITS

COLLATERALIZATION OF DEPOSITS

Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on

deposit at any time in any depository for a time longer than ten days a sum of money which has not

been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face

value of such surety bond and the market value of securities pledged shall be equal to not less than

110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance.

If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe

securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion,

waive the !equirement for security in the case ofoperating funds placed in demand deposit checking

accounts.

.

Acceptable security for deposits consists of anyone of or any combination of the following:

(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,

(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

- 13 -

------------------------------------------~--~

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZAnON OF DEPOSITS At June 30, 2001, the bank balances were $3,974,033.76. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 400,000.00

2

2,994,946.50

3

579,087.26

Total

$ 3,974,033.76

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

- 14-

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES To THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk of loss associated with torts, assets and errors or omissions. The ScHool District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

2,091.00 $

2,091.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

The School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 100,000.00

- 15 -

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200]

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Bleckley County Board of Education has entered into various lease agreements as lessee for energy and lighting retrofit programs, school buses and school electrical equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as ofthe date of their inception.

GENERAL OBLIGAnON DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Pumose

Interest Rates

Amount

General Government - Series 1995

4.00% - 5.75% $ 1.240,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2000

$ 423,279.51 $ 1,280,000.00 $ 1,703,279.51

Additions Capital Leases

96,623.06

96,623.06

Deductions Payments Debt Retired

192,695.65

40,000.00

192,695.65 40,000.00

Balance June 30, 2001

$ 327.206.92 $.lJ40,000.00 $ 1.567,206.92

At June 30,2001, payments due by fiscal year which includes principal and interest for these items

are as follows:

.

- 16-

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 . 2004 2005 2006 2007 - 2011 2012 - 2016

$ 181,636.43 $ 11.1,505.00 .$ 293,141.43

142,244.24

114,502.50

256,746.74

36,963.94

117,227.50

154,191.44

124,670.00

124,670.00

121,550.00

121,550.00

628,525.00

628,525.00

660,337.50

660,337.50

Total Principal and Interest $ 360,844.61 $ 1.878.317.50 $ 2.239.162.11

Deduct: Imputed Interest

33,637.69

Net Present Value of Future Minimum Lease Payments $ 327,206..92

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $202,553.63 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel . In the amount of$157,610.78

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,549.85

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 $35,393.00

- 17 -

BLECKLEY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
Note 8: SUBSEQUENT EVENTS
On September 18, 2001, the voters of Bleckley County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. This imposition ofthe tax approved by the voters, as stated on the Official Ballot Bleckley County is as follows:
"Shall a special one percent sales and use tax be imposed in Bleckley County for a period of time not to exceed 20 calendar quarters, commencing upon the expiration of the special one percent sales and use tax currently being levied in Bleckley County, and for the raising ofnot ' more than $6,000,000 for the purposes of providing funds to payor to be applied toward the cost ofthe acquisition, construction, furnishing and equipping ofa new high school, including the acquisition of any property necessary or desirable therefore, the maximum cost of such capital outlay project not to exceed $6,000,0001
If imposition of the tax is approved by the voters, such vote shall also constitute approval of the issuance of general obligation debt of Bleckley County School District in the principal amount of$4,200,000 to pay a portion ofthe above-described capital outlay project, including capitalized interest through,August 1,2002."
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

- 18 -

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 9: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 1,015,509.35 $ 980,380.17 $ 966,218.54

- 19-

BLECKLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

69,395.36 $

86,904.79

2,452.99

31,222.87 15,525.64

$

118,596.86 $ ===8;;;;;6~,9=0=4':;,,;79~

$

1,724.49 $

16,916.35

48,303.51

69,988.44

$

50,028.00 $

86,904.79

$

31,222.87

15,525.64

21,820.35 $

$

68,568.86 $

0.00 0.00

$

118,596.86 $ ===8=61,;;,9=04';';",;,,;79=

See notes to the general-purpose financial statements. - 20-

EXHIBIT IIE"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

156,300.15 $

221,238.44

$

130,023.68

132,476.67

188,511.83

31,222.87 15,525.64

36,807.75 10,341.76

$

130,023.68 $

335,525.33 $ ==4=5=6.,8.,.;;;,;99=.7=8=

$

13,442.81 $

13,442.81

38,510.04

57,150.88 $

133,810.29

64,864.27

183,156.22

194,334.49

$

116,817.12 $

253,749.91 . $

328,144.78

.$

73.82 $

73.82 $

25,607.72

31,222.87 15,525.64

36,807.75 10,341.76

13,132.74

34,953.09

55,997.77

$

13,206.56 $

81,775.42 $

128,755.00

$

130,023.68 $

335,525.33 $ ==4=5=6.,8.,.;;;,;99=.7=8=

- 21 -

BLECKLEYCOUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30: 2001

FUND BALANCE JUNE 30
See notes to the general-purpose financial statements. - 22-

$

68,568,86 $ ====0;;;,;,=00,,=

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

50,000.00 $

786,852.32 $

919,036.09

922,867.29

1,526,729.02

1,467,936.95

20,344.60

391,605.62

356,191.33

$

993,211.89 $ 2,705,186.96 $ 2,743,164.37

$

641,974.69 $ 1,138,527.20 $ 1,083,163.65

107,292.24 122,566.14 93,103.01
25,625.03 22,995.19

225,571.22 124,575.97 116,707.90
9,522.68 26,541.37 23,418.08 1,065,598.12

392,710.97 67,307.60 117,310.71 33,006.89 33,453.03 30,680.62
1,015,495.64

20,139.28 U63.72

9,307.08 1,344.42

$ 1,013,556.30 $ 2,751 ,765.54 $ 2,783,780.61

$

-20,344.41 $

-46,578.58 $

-40,616.24

29,446.36

$

-20,344.41 $

-46,578.58 $

-11,169.88

33,550.97

128,755.00

152,754.50

-5,584.88 5,183.88

-9,579.26 -3,250.36

$

13,206.56 $

81,775.42 $ ==1=2=8=,7=55=.0:=0=

- 23-

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture
Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs
Education. U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10.553 10.555

N/A

$ 143.950.83

(2)

N/A

397,163.19 $

1,011,773.21 (3)

$ 541,114.02 $

1,011,773.21

10.550

N/A

62.747.71

62,747.71

$ 603.861.73 $

1.074.520.92

94.004

N/A

$

3,803.24

84.027 84.173 84.173

N/A

$ 217,826.14 $

N/A

27,117.00

N/A

6,306.38

$ 251.249.52 $

217,826.14 27,117.00 6.306.38
251.249.52

84.010 84.281 84.318 84.298 84.340
84.276
84.048

N/A N/A .
N/A N/A
N/A

344,269.88 14,665.59 90,975.00 10,401.29 54,498.00

344.269.88
14.593.59 98,216.70 16,792.67 54,498.00

NlA

126,405.16

134,466.07

N/A

30,402.85

$ 922,867.29 $

30,511.52 944.597.95

24

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Pass-Through From Bleckley, County Board of Commissioners Title V Delinquency Prevention Program
Transportation, U. S. Department of Pass-Through From Georgia Department of Public Safety State and Community Highway Safety

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.548

N/A

$ 31,221.36 $

31,221.36

20,600

N/A

$

8,185.27 $

8,530.11

Total Federal Financial Assistance
= N/A Not Available

$ 1,566,135.65 $==2=-,0=6=2"",6=73;';';;:,;58=

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in th~ 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number,

The School District did not provide Federal Assistance to any SUbrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Bleckley County Board of Education and is presented on the modified accrual basis of accounting which is , the basis of accounting used in the presentation of the general-purpose financial statements,

See notes to the general-purpose financial statements.

- 25-

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1)
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program . Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funaing Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Reading First Program
Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

10,000.00

$

10,000,00

537,651,00 48,852,00 1,337,542,00 248,957,00 780,299.00 1,297,890.00 987,362,00 427,653.00
228,459.00 900,941.00 113,149.00 156,636,00 123,126.00 100,089,00 223,822.00 60,132,00 1,482,358,00

342,925.00 111.245.00 61.987,00
9,685.00 15,307,00 18,090.00 930,822.00
$ 22,551.00

73,164,00

1,942.97 157,610,78
5,053.00 30.273.00 2,841.14 9,549.85

47,469.00

616,219.32

35,393.00

537,651.00 48,852,00 1,337,542,00 248,957,00 780,299.00 1,297,890,00 987,362,00 427,653.00
228,459.00 900,941.00 113,149.00 156.636.00 123,126.00 100.089.00 223,822.00 60,132.00 1,482,358.00
342,925.00 111,245.00 61,987,00
9,685.00 15,307.00 18,090,00 930,822,00 73,164.00 22.551,00
1.942.97 157,610.78
5,053.00 30,273,00 2,841.14 9,549.85
47,469.00
616,219.32
35,393,00

30,088.00

50,000.00

30.088.00 50,000.00

$ 10,850,281.74 $ 786,852.32 $ 11,637,134.06 (1) The purpose of the funds are to purchaselinstalilighting for Bleckley County Schools. See notes to the general-purpose financial statements.
- 26

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Acquisition, construction and equipping

of improvements at the primary, middle

and high school, the central offices and

the bus maintenance shop and acquisition

of school buses

'

$ 3,256,000.00 $ 3,256,000.00 $ 185,258.41 $ 2,071,692.51 Ongoing

Payment of the principal and interest due on the $1,400,000,00 Bleckley County School District General Obligation School Bonds, Series 1995. from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds maturing on February 1, 2008 and thereafter on February 1, 2009

1,744,000.00 1,744,000.00

108,245.00

271,971.00 Ongoing ,

$ 5,000,000.00 $ 5,000,000.00 $ 293,503.41 $ 2,343,663.51

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of iotal cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Bleckley County approved the imposition of a 1% sales tax to fund the above projects. Aniounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the general-purpose financial statements.

- 27-

BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

TOTAL QBE FORMULA FUNDS

$

8,180,118.00 $ 8,380,442.77 $ 366,981.09 $ 8.747,423,86

(1) Comprised of State Funds plus Local Five Mill Share.

See notes to the general-purpose financial statements,

- 28-

BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Bleckley County Elementary School Bleckley County Middle School Bleckley County High School Bleckley.County Primary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,800,886.00 $

1,730,489.07

1,884,773.00

2,087,945.20

2,001,777.00

2,386,171.75

2,077,827.00

2,196,158.48

108,119.00

$

7,873,382.00 $ ====8:=,4=0=0,,=,7..6.=4..5..=0

See notes to the general-purpose financial statements. - 29-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RUSSELl. \V. HINTON
STATE AUDITOR 1404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washingtoll Street. S.W.. Suile 214
Atl:mla. Georgia :1o:n-l-X.lOO
February 11, 2002

Ho~orab!e Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the B1eckley County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Bleckley County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated February 11, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in .the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether B1eckley County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Bleckley County Board of Education's internal control over financial reporting,in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-40

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation, of the internal control over financial reporting that, in ourjudgment, could adversely affect Bleckley County Board ofEducati~n's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6121-0 1-01 and FS-6121-01-02.

A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material , weaknesses. However, ofthe reportable conditions described above, we consider item FS-6121-,O 102 to be a material weakness.

This report is intended solely for the infornlation and use of the management, members of the

Bleckley County Board of Education, Federal awarding agencies and pass-through entities and is not

intended to be and should not be used by anyone other than these specified parties.

.

Respectfully su~

RWH:gp 2001YB-40

R sell W. Hinton State Auditor

RUSSEll. \V. HINTOIlo:
STATE AUDITOR (404) 6562174

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DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washilll:!toll Street. S.W.. Suile 214 Atlanta. Georgia 3W34-X4()()
February 11,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Bleckley County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Bleckley County Board of Education with the types of compliance requirements described in the Us. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Bleckley County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bleckley County Board of Education's management. Our responsibility is to express an opinion on Bleckley County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Bleckley County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Bleckley County Board of Education's compliance with those requirements.
2001SA-IO

In our opinion, the Bleckley County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Bleckley County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Bleckley County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detern1ine our auditinOg procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material jn relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Bleckley County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
JJ l\ ~ ~
Ru ell W. Hinton State Auditor
RWH:gp 200ISA-IO

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

BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE '
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 200 I

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6121-99-0 I FS-6121-99-02 FS-6121-00-0 I FS-6121-00-02

Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6121-00-01

Due to current budgetary constraints, the School District is unable to hire the additional staff required to clear this finding. The School District feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6121-00-02

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording. of general fixed assets on the financial statements. In Fiscal Year 2003, our School District will begin to resolve this finding.

SECTION IV FINDINGS AND QUESTIONED COSTS

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Bleckley COl;lnty Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Bleckley County Board of Education disclosed financiiil statement reportable conditions related to the following control categories.

Cash and Cash Equivalents

General Fixed Assets

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Bleckley County Board' of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Bleckley County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Bleckley County Board of Education's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51 O(a) of OMB Circular A-I33 The Bleckley County Board of Education's audit did not disclose audit findings required to be reported by section .5IO(a) ofOMB Circular A-l33.

7. Major Programs Federal awards audited as major programs are as follows: 10.550 Food and Nutrition Program - Food Distribution Program 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee The Bleckley County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.

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BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6l21-01-01

The School District did not provide for adequate separation of duties in the performance of accounting functions and related procedures related to cash and cash and equivalents. The following deficiencies were noted:

1) The bank reconciliations for all accounts were not reviewed by an individu,al independent

I'

,of cash operations.

I

2) The individual recording cash receipts also performed bank deposit functions. Additionally, this individual had custody ofthe signature plate and also had access to the general ledger.

These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employee duties can be reassigned to achieve a higher degree of internal control with existing staff.

Management's Response:

We concur with this finding, however, due to current budgetary constraints, the Board is unable to hire the additional staff required to clear this finding. The Board feels it has provided for the most appropriate assignment of duties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved. Date inapplicable.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6121-01-02

The Bleckley County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should

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BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200 I

II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

Reportable Condition - Material Weakness

Repeated From Prior Year

.

Finding Control Number: FS-6121-01-02

include an inventory of land, 'buildings and equipment owned by the School District and should

include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost,

location, and description. Detailed records should be maintained ofall additions and deletions to the

General Fixed Assets Account Group.

.

Management's Response:

We concur with this recommendation. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the Board has decided not to pursue the recording of general fixed assets on the financial statements. Weare looking into the implementation of this accounting standard for future implementation. Date inapplicable.

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

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