Bleckley County Board of Education, Cochran, Georgia, report on audit of the fiscal year ended June 30, 2002

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BLECKLEY COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

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

ADDmONAL 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 PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

BLECKLEY COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON CO~LIANCEAND 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
SECTIONID 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

RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W SUIte 214 Atlanta, Georgia 30334-8400
December 20, 2002

Honorable Sonny Perdue, Governor Members ofthe 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 INFORMATION SCHEDULE 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, 2002, 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 fmancial statements based on our audit.
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 ofthe United States. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the fmancial 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 opinion.
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:

2002ARL-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, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, 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, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when 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.

IQ 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, 2002, and the results ofits 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 issued our report dated December

20,2002, 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 through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the

2002ARL-13

general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe 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.
Respectfully submitted,
~~
Ru ell W. Hinton State Auditor
RWH:as 2002ARL-13

BLECKLEY COUNTY BOARD OF EDUCAnON

The notes to the general-purpose finanCIal statements are an Integral part of this statement -2-

EXtHBlT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONGTERM PEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$

58.61194

$ 4,297,36290 $ 2,287,02549

4,555,694 59

600,00000

435,22307

436,31697

35,76885 15,48969

31,22287 15.52564

$

58,67194

58.67194

5,336,328 06 314,277 07

5.336,32806 314,277 01

1.240,00000 327,206 92

$

58167194 $

5,709,277 07 $ 151048181617 $ 4,937,29789

$

176,92347 $

128.335,58

208,28736

183.07378

5,11039

$

314.27101

314,277 01

327,20692

51 395,000 00

5,395,00000

1,240.000 00

$

5,709,27707 $ 6,100,19829 $ 1,878,61628

$

58,67194

000

$

58,61194

$

338.38588 $

326,34380

58,67194

7382

2,215,320 77

1,328,17807

35,78885 15,48969 3.381.100 16 803,13205
2,'20,'4854
$ 6,948.61188 $

31,22281 15.52564
'.351,33141 3.058,681 6'

$

56,61194 $

5,709127701 $ 15,048,81617 $ 4,937,29789

.3-

BLECKLEY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENPITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

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 Admlnlstrallon BUSiness Admlnlstrabon Mamtenance and OperabOn of Plant Student Transportation serviceS Central Support SelVlC8s Other Support Services Food Services Operation Community selVlceS Operabons
Capital Outlay Debt Service
Pnnopal Interest
Total Expendlturas
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obhgabon Bonds Par Value
Capital Leases 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
FUNP BALANCE JULY 1
Food Inventory Net Change In Penod Donated Commodlbes Purchased Food
FUND BALANCE JUNE 30 -

GENERAL FUND

SPECIAL REVENUE
FUND

$ 11,326,452 27 $ 2,754 72
2,281,69706 225,00721
$ 13,835,911 26 $

852,56786 1,639,31954
384,00729
2,875,894 69

$ 9,278,68551 $

298,92728 207,27828 302,43291 235,51040 881,68814
56,06563 937,30274 656,817 05
9,217 40 44,19959 20,13903 35,45782 49,23036

158,52291 22,26750

$ 13,193,74255 $

$

642,16871 $

1,201,637 58 281,62420 117,76357 120,15860
4,83056 46,931 12 30,73954 1,084,53343
2,888,21860 -12,32391

$

144,934 59

$

144,934 59

$

787,10330 $

1,648,72812

-12,32391 81,n542

4,54598 -3595

$

21435183142 $

73 1961 54

The notes to the general-purpose finanaal sta1ements ara an Integral part of thIS statement 4-

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

858,58726 $

174,134 67

$ 1,032,72193 $

$
111.50500 22238

12,179.02013 $ 1,642.07426 3,251,78932 783.37155

11.637,134 06 1,566.13565 3,149,691 78 668.34552

111,72738 $ 17,856,25526 $ 17,021.30701

$ 10,480,32309 $ 10,143,53661

$

39,71032

82,58714

580,55148 325,041 85 302,43291 355,66900 881.68814
95,77595 942,13330 703,74817
9,217 40 74,93913 1,104,67246 35,45782 131,817 50

535,68845 338,904 97 287,99582 353,11794 839.30911
48,72109 834.21954 695,811 89
7,964 74 57,02815 1,085,865,24 33,90844 204,27340

$

45.000 00

66,50500

203,522.91 88,77250

232,69565 96,67692

$

122,29746 $

111,50500 $ 16,315,76361 $ 15.795,717 96

$

910,42447 $

22238 $~0.49165 $

1.225,58905

$ 4,200,00000 $
-58,44956 $ 4,141,55044 $
$ 5,051,97491 $ 1.328,178 07

$ 58,44956
58,44956 $

4,200,000 00 144,934 59 $ 58,44956 -58.44956
4,344,934 59 $

96.623.06 96,62306

58,67194 $ 000

5,885,426 24 $ 3,058,681 61

1,322,212.11 1,736,87050

4,54598 -3595

-5,584 88 5,18388

$ 6,380.152 98 $

58,67194 $ 8,948.617 88 $ 3,058,681 61

-5-

BbECKLEY COUNTY BOARp OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES ANP CHANGES IN FUNp BALANCES
BUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNPS
YEAR ENPEP JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 11,175,086 00 $ 11.326.452 27

9.99454

2,754 72

2.148.75000

2,281,69706

132.20000

225.00721

Total Revenues

$ 13,466.030 54 $ 13,835,911 26

EXPENPITURES

Current Instruction Support SeMces Pupil Services Improvement of Instructional SeMces Educational Media SeMces 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

$ 9,556,484 10 $ 9,278,68551

309,46044 187,134 00 303,171 00 225,84000 884,85700 114,56700 1,016,02600 711,13600
10,661 00 40,000 00 17,51200
145,000 00

298,92728 207,27828 302,43291 235,51040 881,68814
56,06563 937,302.74 656,817 05
9.217 40 44,19959 20,13903 35,45782 49.23036 180,79041

Total ExpendllUras

$ 13,521.848 54 $ 13.193.74255

Excess of Revenues over (under) Expenditures

$

-55,81800 $

642,16871

OTHER FINANCING SOURCES

Other Sources

144,934 59

Excess of Revenues and Other FinanCing Sources

over (under) Expenditures

$

-55,81800 $

787,10330

FUND BALANCE JULY 1 2001

1,037,35540

1,648.728 12

Food Inventory - Net Change In Penod Donated Commodities Purchased Food

FUND BALANCE JUNE 30 2002

$

981 153740 $ 2A35183142

SPEC~LREVENUEFUND

BUDGET

ACTUAL

$ 839.89160 $ 852.56786

1,639,351 00

1.639,31954

342,10000

384.00729

$ 2,821,34260 $ 2,875.89469

$ 1,288.803 20 $ 1,201.637 58

289,33600 112,13300

281,62420 117,76357

131,88000

120,15860

8,30000 52,65000
31,62500 1,009,87440

4,83056 46,931 12
30,73954 1,084,533 43

$ 2.924.601 60 $ 2,888.21860 $ -103,25900 $ -12,32391

$ -103,25900 $ 75,73577

-12,32391 81,77542

4,54598 -3595

$

The notes to the general-purpose finanCIal statements are an Integral part of thiS statement -6-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: 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 financial position and the results ofits 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 recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. 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 fmancial 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 the School District's educational activities. 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. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

--------------

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: 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 measurement 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 ofaccounting 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. Property taxes, sales taxes and interest are considered to be 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.
- 8-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHmrr "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002 .

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. 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 ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the 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 ofgeneral 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.

-9-

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

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 deposits and short-tenn investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal 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 and 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 ofGeorgia, 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 infonnation available. Receivables
- 10-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

PROPERTY TAXES

The Bleckley County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 4,2001 (levy date). Taxes were due on December 20,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The 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, 2002 for maintenance and operations amounted to $2,259,571.92.

The tax millage rate levied for the 2001 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...2..5. mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $970,092.26 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be reauthorized at least every five years.

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.

- 11 -

BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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 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 AND INVESTMENTS

COLLATERALIZATION OF DEPOSITS

.

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

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

been secured by surety bond, by guarantee ofinsurance, 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 requirement 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:

- 12 -

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(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.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $6,074,545.73. 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, 2002, as follows:

- 13-

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 458,671.94

2

5,615,873.79

3

0.00

Total

$ 6,074.545.73

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $3,947,376.78 which is materially the same as fair value. This investment consisted entirely of funds invested in the Georgia Extended Asset Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pooL The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Georgia Extended Asset Pool does not provide for investment in derivatives or similar investments.

The Extended Term Portfolios consist of Fund 3 "Georgia Extended Asset Pool", Fund 7, Fund 8 and Fund 9. The Georgia Extended Asset Pool is a variable net asset value investment pool which follows Standard and Poor's criteria for AAAfrated funds. The pool is not registered with the SEC as an investment company. The pool's primary objective is the prudent management ofpublic funds on behalfofthe State of Georgia and local governments seeking income higher than money market rates. Net Asset Value (NAV) is calculated daily to determine current share price. NAV is calculated by taking the closing fair value of securities owned plus other assets and subtracting liabilities, The remainder is then divided by the total number ofshares outstanding to compute NAV per share (current share price). The pool distributes earnings (net ofmanagement fees) on a monthly basis and determines participant's shares sold and redeemed based on the current share price, which at June 30, 2002, was at $2.02 per share. The Office of Treasury and Fiscal Services has hired a third party bank, Investors Bank and Trust, to perform custody and valuation services to include calculation ofthe NAV. Pooled cash and cash equivalents and investments are reported at fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist offunds from local governments, operating and trust funds of State agencies, and current operating funds of the State's General Fund.

Investments in the Georgia Extended Asset Pool consist generally ofsecurities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, bankers' acceptances and repU!chase agreements. The weighted average maturity at June 30, 2002 was 1.31 years.

Investments in Fund 7 consist generally of repurchase agreements and certain U. S. Government Securities. The average investment duration for Fund 7 on June 30, 2002 was 1.39 years.

- 14-

BLECKLEY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS
Investments in Fund 8 consist generally of repurchase agreements and certain U. S. Government Securities, which include mortgage-backed securities such as collateralized mortgage obligations and adjustable rate mortgages. Investments in Fund 8 are transacted by an external investment management finn under direction ofinvestment advisory agreements executed between the Office and the investment management finn.
The agreement directs the investment finn to utilize the Merrill Lynch 1-3 year Treasury Index in managing the average duration of the overall portfolio, excluding cash, to within plus or minus 6 months of the duration ofthe Index. The average investment duration for Fund 8 on June 30, 2002 was 1.59 years. In addition, the investment advisory agreements place limitations on individual security purchases and holdings as follows:
1) Limits the duration of any security at the time ofpurchase to a maximum of five (5) years.
2) Requires any mortgage-backed security, at the time of purchase and periodically, thereafter, to pass a "stress test" which provides for a duration profile not to exceed 7 years given an instantaneous and pennanent interest yield increase of 300 basis points.
3) With the exception ofU. S. Treasury securities, limits individual security investments to no more than the greater of$5 million or 10% ofthe separate portfolio's total investments.
4) Prohibits investments in interest only strips, principal only strips, inverse floaters, and Z tranche securities.
Investments in Fund 9 consist of repurchase agreements and certain U. S. Government securities with an average investment duration of 1.69 years at June 30, 2002.
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
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; acts of God and unemployment compensation,
The School District has obtained commercial insurance for risk ofloss 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.
- 15 -

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 4: RISK MANAGEMENT

The School District has elected to self-insure for all losses related to acts of God. 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:

2001 2002

Beginnmg of Year Liability

Claims and Changes in Estimates

Claims Paid

End ofYear LiabilIty

$

0.00 $

0.00 $

0.00 $

0.00

$

0.00 $

534.00 $

534.00 $

0.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December I, 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 $350,000.00 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

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 of the date of their inception.

- 16-

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHffiIT "0"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1995 General Government - Series 2002

4.00% - 5.75% 3.50%

$ 1,195,000.00 4,200,000.00

$ 5395.000.00

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2001

$ 327,206.92 $ 1,240,000.00 $ 1,567,206.92

Retroactive Restatement of Prior Year Balances

658.47

658.47

Balance July 1,2001 Restated

$ 327,865.39 $ 1,240,000.00 $ 1,567,865.39

Additions Capital Leases G.O. Bonds

144,934.59

144,934.59

4,200,000.00 4,200,000.00

Deductions Debt Retired

158,522.91

45,000.00

203,522.91

Balance June 30, 2002

$ 314.277.07 $ 5.395,000.00 $ 5.709.277.07

At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows:

- 17 -

BLECKLEY COUNTY BOARD OF EDUCAnON

EXHffiIT liD"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2016

$ 194,326.54 $ 246,802.50 $ 441,129.04

87,501.22 1,030,577,50 1,118,078.72

50,537.28 1,040,195.00 1,090,732.28

1,033,287.50 1,033,287.50

1,040,265.00 1,040,265.00

1,558,197.50 1,558,197.50

528,137.50

528,137.50

Total Principal and Interest $ 332,365.04 $ 6,477,462.50 $ 6.809.827.54

Deduct: Imputed Interest

18.087.97

Net Present Value of Future Minimum Lease Payments $ 314.277.07

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $178,229.21 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$151,543.21

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 $26,686.00

Note 7: CONTINGENT LIABILITIES

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.

- 18 -

BLECKLEY COUNTY BOARD OF EOUCAnON

EXHIDIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8: SUBSEQUENT EVENTS

In the subsequent fiscal year, the School District approved a Resolution of Bond Defeasance for its 1995 Series Bonds.

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 ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees 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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 864,230.18 $ 1,015,509.35 $ 980,380.17

- 19-

BLECKLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

71,840.24 $

124,27544

3,211.08

6,996,00

35,768.85 15,489,69

Total Assets

$

126,309.86 $ ==-===-=1..3.==:1.,2.:=.7.:.;1..4...4=

LIABILITIES AND FUND EQUITY
L1ABltlTIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
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

$

2,628.78 $

46.950.02

49,719.54

84,321.42

$

52,348.32 $

131 ,271.44

$

35,768.85

15,489.69

22,703.00 $

$

73.961.54 $

0.00 0.00

$

126,309.86 $ =:::::=-::1..3.:.;,1&;,2=7=1.4...4=

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

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

196,115.68 $

156,300.15

$

159,848.15

170,055.23

132,476.67

35,768.85 15,489.69

31,222.87 15,525.64

$

159,848.15 $

417,429.45 $ =......:3=35iO!:,5;,;;2:;,;5.=:33=

$

17,289.44 $

17,289.44 $

13,442.81

62,601.92

112,180.72

57,233.32

74,246.40

208,287.36

183,073.78

5,710.39

5,710.39

$

159,848.15 $

343,467.91 $

253,749.91

$

73.82

$

35,768.85

15,489.69

31,222.87 15,525.64

$

0.00

22,703.00

34,953.09

$

0.00 $

73,961.54 $

81,775.42

$

159,848.15 $

417 ,429.45 $ -==-"""",,3::;;3iC5=,5=25=.3=3~

21 -

--------- -- -

--- - ---- - -- - - - - -

BLECKLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Debt Service Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUNp BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

76,174.00 $

622,936,59

3n,322.23

$ 1,076,432.82 $

727,300.60 727,300.60

$ $ 1.075,550.17

541,946,52
135,632.84 4,295.14 29,976.60 4,830.56 735.09 900,59 8,983.26

$ 1,075,550.17 $

$

882,65 $

68,568,86

727,300.60 0.00 0.00

4,545.98 -35.95

$

73,961.54 $==-==--===0'=00=

See notes to the general-purpose financial statements. - 22-

EXHIBIT "F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 3D, 2001

$

49,093.26 $

852,567.86 $

786,852.32

1,016,382.95

1,639,319.54

1,526,729.02

6,685.06

384,007.29

391,605.62

$ 1,072,161.27 $ 2,875,894.69 $ 2,705,186.96

$

659,691.06 $ 1,201,637.58 $ 1,138,527.20

145,991.36 113,468.43 90,182.00
46,196.03 29,838.95

281,624.20 117,763.57 120,158.60
4,830.56 46,931.12 30,739.54 1,084,533.43

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

$ 1,085,367.83 $ 2,888,218.60 $ 2,751,765.54

$

-13,206.56 $

-12,323.91 $

-46,578.58

13,206.56

81,775.42

128,755.00

4,545.98 -35.95

-5,584.88 5,183.88

$

0.00 $

73,961.54 $ -===-==8..1..:l:::::,7=75z.4:::i2=

- 23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

803,132.05

$ 3,947,376.78

Total Assets

$ 3,947,376.78 $ =-==8:=0=3=1,=3;:;2.==05==

LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable
Total liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects For SPLOST Projects Total Fund Equrty
Total liabilities and Fund Equity

$

585,676.62

$

585,676.62

$ 3,361,700.16 $

803,132.05

$ 3,361,700.16 $

803,132.05

$ 3,947,376.78 $ =-==-==i8iiCO:;;3i!:::,1.3.=2.=05:=..

See notes to the general-purpose financial statements. - 24-

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30. 2001

$ 2,067,193.36 $ 2,870,325.41 $ 1,192,758.52

3,947,376.78

154,280.41

154,280.41

156,268.73

$ 2,221,473.77 $ 6,971,982.60 $ 1,349,027.25

$ $ _ _---=6.o.:,1..::,53;:;..:..:;00=__

$

6,153.00 $

585,676.62 6,153.00 $ _ _-=2:.::.0I.:,84..:.;9::.:..1.:.:8~
591,829.62 $ _ _-=2:.=0J.::,84;..;.9;:;..:..:.:18:;...

$ 3,361,700.16

803,132.05

$ 2,215,320.77

2,215,320.77 $ 1,328,178.07

$ 2,215,320.77 $ 6,380,152.98 $ 1,328,178.07

$

6,971,982.60 $ 1,349,027.25

- 25-

BLECKLEY 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 Services Business Administration
Capital Outlay Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating 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

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00

$

89.48604

$

89.486,04 $

0.00

$

39,710.32

$

$

39,710.32 $

$

49,775.72 $

26.493.95 26,493.95 -26.493.95

$ 4,200,000.00 $
-888,07556 $ 3,311,92444 $
$ 3,361,700.16 $ 0,00

829,626.00 829,626.00 803,132.05
0.00

$ 3,361,700.16 $ =======80;;,;;3~,1=3=2.0..5=-

See notes to the general-purpose financial statements. - 26-

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

858,587.26 $

858,587.26 $

872,384.53

84,648.63

174,134.67

41,365.20

$

943,23589 $ 1,032,721.93 $ _---'9::...1...;;;;.3'"'7-.,.;..49;;.;..7.;..;30-

$

$ _ _-=5;.=.6z.:;,0.:.,:93;:...1.:..:9:...

$

56,093.19 $

$

887,142.70 $

39,710.32 82,587.14 $ _ _1=.:::8;.=.51::,2=.;58::.:..4.;..1:... 122,297.46 $ _ _1=.:::8;.=.51::,2:::.;58;;.;..4.;..10910.424.47 $ _---'7;.,;;;2;.;;.8'-'.4..;;;.91.;.,;..3=2::...

$ 4,200,000.00 $

0.00

829,626.00

-888,075.56

$ 4,141 ,550.44 $

0.00

$

887,142.70 $ 5,051,974.91 $

1,328,178.07

1,328,178.07

728,491.32 599,686.75

$ 2,215,320.77 $ 6,380,152.98 $ 1,328,178.07

- 27-

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of EducalJon Food and NutrllJon Program Food SelVlceS School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of EducalJon Food and NutnlJon Program Food DlstnbuIJon Program (1)
Total U, S, Department of Agriculture
Education, U S. Department of SpeCial Education Cluster Pass-Through From Georgia Department of Education Individuals wrth Disablllbes Education Act Part B Spadal Educabon Flow Through Preschool Capacity Building Improvement
Total Spadal Education Cluster
Other Programs Pass-Through From Georgia Department of Education Bementary and Secondary Education Act Tille I Grants to Local Educational Agendes Title II Eisenhower ProfeSSional Development Title III Technology Uteracy Challenge Fund Grants Title VI Innovabve EducalJon Program Strategies Class SIze Reduction Goals 2000 State and Local Educabon Systemic Improvement Grants VocalJonal Education - Basic Grants to States High School Program Basic Grant
Total U S. Department of Education
TransportalJon, U. S. Department of Pass-Through From Georgia Department of PubliC Safety State and Community Highway Safety

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10553 10555

NlA $ 147,705,68

(2)

NlA

404,75642 $ 1,005,07568 (3)

$ 552,462.10 $ 1,005,075,68

10,550

NlA

70,47449

70,47449

$ 622,936 59 $ 1,075,550 17

84027 84,173 84,173

NlA $ 264,19812 $

NlA

25,016,00

NlA

5,21500

$ 294,42912 $

264,198 12 25,016,00
5,215.00
294,429,12

84.010 84.281 84,318 84,298 84,340
84.276
84.048

NlA

412,241.36

NlA

18,23858

NlA

126,206,53

NlA

19,157.00

NlA

67,826.55

412,241.36
18,310 58 (3)
126,206.54 19,157.00 67,826,88

NlA

43,594,84

43,594.84

NlA

34,68897

34,690 45 (3)

$ 1,016,382 95 $ 1,016,456.77

20.600

NlA $

2,754,72 $

2,754,72

Total Federal Flnanaal Assistance
N/A = Not Available

28

$ 11642,074.26 $

2,O94?6166

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3D. 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Dlstrlbubon Program represents the Federally assigned value of nonmonetary assistance for donated commodities receive<! and/or consumed by the system during the current fiscal year
(2) Expenditures for the School Breakfast Program were not mamtalned separately and are Induded In the 2002 NalJonal School Lunch Program.
(3) Expenditures for ttus program mdude State. and/or Other Funds Expenditures are not maintained by fund source.
MaJor Programs are identified by an astensk (*) m front of the CFDA number
The School Dlstrld did not proVIde Federal Assistance to any SubreCiplent
The accompanying schedule of expenditures of Federal awards Includes the Federal grant aclivrty of the Blackley County Board of Educabon and IS presented on the modified aeaual basis of accounbng which IS the basis of accounting used m the presentation of the general-purpose finanaal statements.

See notes to the general-purpose financial statements.

- 29-

BLECKLEY COUNTY BOARP OF EPUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Govemor's Emergency Funds (1)
EducalJon, Georgia Department of Quality BasIC EducatIOn Direct Instructional Cost Kindergarten Program Kindergarten Program - Early IntervenlJon Program Pnmary Grades (1-3) Program Pnmary Grades - Early IntervenlJon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades Early ln1erventlon (4-5) Program Middle School (6-8) Program HlQh School General EducalJOn (9-12) Program VocalJonal Laboratory (9-12) Program Students wrth DlsabilltJes category II Category II! Category IV Gifted Student - Category VI Remedial EducalJOn Program Altemabve EducalJon Program Media canter Program Staff and Professlorl8l Development Indirect Cost 20 Days AddltJorl8l Instruction Categorical Grants Pupil Transportation Regular Bus Replacement Sparsrty Nursing Services PnnClpal Supplements Vocatlorl8lSupervisors MId-term Adjustment Hold-Harmless Education EquahzalJon Funding Grant Food Servu:es VocationmEducabon Other State Programs Health Insurance K-3 Statewide Readmg Program Men10r Teachers Outdoor Classrooms Preschool Handicapped Program Lottery Programs Asslsbve Technology Computers In the Classroom PoS1 Secondary Options
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and FIScal Services PUblic School Employees Retirement
CONTRACTS Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

45,00000

$

45,00000

627,13200 88,82900
1,327,288 00 311,778.00 719,04100 86,53100
1,383,51000 981,76000 433,92400
243,66700 917,52900 100,40300 169,89800
38,177 00 102,91000 227,29300
41,371 00 1,469,27200
69,65900

381,86800 117,394 00
35,88900 60,988 00
9,494 00 18,17300 57,00700 989,93100
$ 23,12006

76,17400

151,543.21 29,812.00 4,696 00 750 00 34,23000

1,881.00

6,40000 63,72100

657,17960

26,88600

627,13200 88,82900
1,327,28800 311,77800 719,04100 86,53100
1,383,51000 981,76000 433,92400
243,66700 917,52900 100,40300 169,89800
38,177 00 102,91000 227,29300
41,371 00 1,469,272 00
69,65900
361,68800 117,394 00
35,68900 60,98600
9,494 00 16,17300 57,00700 989,93100 76,17400 23,12006
151,54321 29,81200 4,896 00 75000 34,230.00
6.40000 63,72100
1,88100
657,17960
26,68600

49,09326

49,09326

$ 11,326,452.27 $ 852,56786 $ 12,179,020 13
(1) The purpose of the funds are to make Improvements to the high school athletic facllrty.

See notes to the general-purpose financial statements

- 30-

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2002

SCHEDULE "3"

PROJECT
Acqulslbon. constructJon and equipping of Improvements at the pnmary, mIddle and high school, the central offices and the bus maintenance shop and acqulslbon of school buses
Payment of the principal and Interest due on the $1,400,000.00 Bleckley County School Dlstnd General ObllgalJon School Bonds, Senes 1995 from February 1, 1998 through February 1, 2008 and redemption of all outstanding Bonds matunng on February 1, 2008 and thereafter on February 1, 2009

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 3,256,00000 $ 3,256,000 00 $

56,093.19 $ 2,256,95092 Ongoing

1,744,00000

1,744,000 00

111,505.00

380,21600 Ongoing

$ 5,000,000.00 $ 5.000,000.00 $ 167,598.19 $ 2,637,166.92

(1) The School Drstnd's anginal cost eslJmate as speafied In the resolution calling for the ImposilJon of the Local OplJon Sales Tax
(2) The School Drstnd's current estimate of total cost for the proJects. Includes all cost from project Inception to compJebon
(3) The voters of Bleckley County approved the Imposlbon of a 1% sales tax to fund the above projects Amounts expended for these projeds 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 finanoal statements.

- 31 -

BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (gBEl
ALLOTMENTS AND EXPENPITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early InterventIon Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Ear1y Intervenllon (4-5) Program MIddle School (6-8) Program High School General Educallon (9-12) Program Vocallonal Laboratory (9-12) Program Students WIth Disabilities Category II Category III Category IV Gifted Student - Category VI Remedial Education Program A1tematlve Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and ProfeSSional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

681,66900 $ 705,966,20 $

3,690,74 $

709,656,94

96,554 00

71,196,67

532,87

71,729.54

1,442,71300 1,216,258 57

22,277 14

1,238,535 71

338,891.00

327,130,68

2,79850

329,92918

781,57100

870,802.01

20,132.96

890,934 97

94,056.00 1,503,825.00 1,067,137.00
471,66000 1,371,31400
184,672.00 41,497.00 111 ,859.00

78,717,37 1,487,19009 1,471,79514
406,03800
242,298.98 950,695,81
66,700.85 241,36010 85,769,12 95,904.72

1,767.58 49,527,96 57,62651 51,092,10
4,354.49 12,061.01
1,972,60 7,336,69 2,82893 43,60305

80,484,95 1,536,71805 1,529,421 65
457,130,10
246,65347 962,756.82
68,673.45 248,696.79 88,598.05 139,507,77

$

8,187,41800 $ 8,317,824.31 $ 281,603,13 $ 8,599,427 44

247,058.00 44,96900

254,35904 7,621.58

42,478.55 37,94340

296,837,59 45,564 98

TOTAL aBE FORMULA FUNDS

$

8,479,44500 $ 8,579,804,93 $ 362,025.08 $ 8,941,830,01

(1) Compnsed of State Funds plus Local Five Mill Share,

See notes to the general-purpose finanCial statements

- 32-

BLECKLEY COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (qBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D. 2002

SCHEDULE "5"

Bleckley County Elementary School Bleckley County Middle School Bleckley County High School Bleckley County Pnmary 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

$

1,798.068.00 $

1,817.933.91

2,061,446.00

2,116,149.04

1,955,938.00

2,437,404.96

2.260,107.00

2,227,939.53

111,859.00

$

8,187,418.00 $ ====8.,5.=.99::;,,4=2:=7:::.;.44=

See notes to the general-purpose financial statements.
- 33-

SECTIONll COMPLIANCE AND INTERNAL CONfROL REPORTS

RUSSELL W. HINTON
STATE AUDITOR
(4()4) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street. S.W SUIte 214 Atlanta, Georgia 30334-8400
December 20, 2002

Honorable Sonny Perdue, 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 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 fmancial statements of Bleckley County Board ofEducation as of and for the year ended June 30,2002, and have issued our report thereon dated December 20,2002. 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 Bleckley 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 offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour 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 ofEducation'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
2002YB-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 ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Bleckley County Board of Education'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-6121-02-01 and FS-6121-02-02.
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 fmancial 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-6121-0202 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Bleckley County Board ofEducation, 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,
~~
R sell W. Hinton State Auditor
RWH:as 2002YB-40

RUSSELL W. HINTON
STATE AUDITOR (404\6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street. S. W Suite 214 Atlanta. Georgia 30334-8400
December 20, 2002

Honorable Sonny Perdue, 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-I33
Ladies and Gentlemen:
Compliance
We have audited the compliance of Bleckley County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Bleckley County Board ofEducation'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 ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; 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-I33 require that we plan and perfonn 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 perfonning 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 detennination on Bleckley County Board ofEducation's compliance with those requirements.
2002SA-1O

BLECKLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6121-00-0 1 FS-6121-00-02 FS-6121-01-01 FS-6121-0 1-02

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

CORRECTIVE ACTIONIRESPONSES

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

We concur with this finding, however, 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 ofduties 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-6121-01-02

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

In our opinion, the Bleckley County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002.
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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
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 in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Bleckley County Board ofEducation, 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,
~~
RWH:as 2002SA-IO

SECTIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTIONN FINDINGS AND QUESTIONED COSTS

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Bleckley County 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 financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Ledger

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 .51O(a) ofOMB Circular A-133 The Bleckley County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 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 did qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.

-I -

BLECKLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated from Prior Year Finding Control Number: FS-6121-02-01
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 and the general ledger. The following deficiencies were noted:
(I) The bank reconciliations for all accounts were not reviewed by an individual independent of cash operations.
(2) The individual recording cash receipts and performing bank deposit functions had custody of the 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.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6121-02-02
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 ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owed 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.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
- 2-