Brantley County Board of Education, Nahunta, Georgia, report on audit of financial statements of the fiscal year ended June 30, 2002

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OF,THE FIN~NCIAL STATEMENTS f

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Russell W. Hinton

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Auditor

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BRANTLEY COUNTY BOARD OF EDUC."nON - TABLE OF CONTENTS-

SEC nON I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORl 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

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMI::.N I S

II

ADDITIONAL FINANCIAL INFORMAnON

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES. EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES. EXPENDIl URES

AND CHANGES IN FUND BALANCES

30

DEBT SIORVICE FUND

K

COMBINING BALANCE SHCCT

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

BRANTLEY COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORM ATION

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

34

2 SCHEDULE OF STATE REVENUE

36

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

37

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

38

5

BY SITE

39

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33

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

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

SECTION I FINANCIAL

RUi>.~tJ I W. HINTON
STAT[ AlJDlTOfl
(4Q.t1656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wd,hmglon SlTecl. S W ~u"c 214 Allanla. Georgld 30334-R400
July 14, 2003

Honorable Sonny Perdue. Govcrnor Members of the General Assembly Members of the State Board of Educallon
and Supenntendent and Members of the Brantley County Board of EducatIOn
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMAnON SCHEDULE OF EXPENDI ruRES OF FEDERAL AWARDS
Ladles and Gentlemen
We have audited the accompanYing general-purpose finanCIal statements of the Brantley County Board of Education. as of and for the ycar ended Junc 30. 2002. as lIsted In the table of contenl~ These general-purpose financial statements are the responslbihty of the Brantley County Board of EducatIOn's marJagement Our responsibIlIty IS to cxpress an opinion on these general-purposc financial statements based on our audit
Except as dIscussed In thc following paragraph, we conducted our audIt In accordance With audIting standards generally accepted In the Umted States of Amcnca and the standards applIcable to finanCial audits contained In Government Audillng Standards. Issucd by the Comptroller General of the Umted States Those standards reqUire that we plan and perform the audit to obtain reasonable assurance about whether the finanCial statements arc free of matenal misstatement An audit Includes examining, on a test basis, eVldencc supporting the amounts and disclosures In thc fmanclal statements An audit also Includes assessing the accounting pnnclples used and Significant esllmates made by management, as well as evaluating the ovemll financial statement presentallon We belIcve that our audil proVIdes a reasonable basiS for our opinIOn
We did not observc the taking of eIther the Fedcral donated commodilles inventory or purchased foods Invcntory at June 30, 2002, nor could we >atlSfy ourselves as to the accuracy of the amount, stated as Inventorics through alternatlvc procedures

2002ARL-13

As descnbed m the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared usmg certain accountmg practices and pohcles wluch, m our opmion, vary m some respects from generally accepted accountmg pnnclples. These vanances are described as follows.
The general-purpose financial statements of the Board of EducatIOn did not contam a General Fixed Assets Account Group to account for property and eqUIpment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnclples
School activity accounts mamtained at the mdlvidual schools are not mcluded in the general-purpose finanCIal statements To conform to generally accepted accountmg pnnclples, these accounts should be mcluded m the general-purpose finanCial statements
The Board of Education did not recogruze as expenditures, in the year ended June 30, 2002, a portIOn of salanes and the correspondmg employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received. subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salanes and related benefits were not recorded as revenue m the year under review. Conversely, the Similar expenditures and related revenues for contractual servIces completed pnor to June 30, 2001. were improperly recorded in the year ended June 30, 2002 To conform to generally acccpted accounting pnnclples, revenues should be recorded when aVaIlable and measurable and expendItures should be recorded when incurred, rathcr than when funds are received or disbursed
The aggregate effects on the general-purpose finanCIal statements of these variances or omiSSIOns have not been determmed, but are beheved to be matenal
In our opimon, except for the effects of such adjustments, If any. on the SpeCial Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service mventories as dIscussed m the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the precedmg paragraph. the general-purpose finanCial statements referred to above present faIrly, mall matenal respects, the financial position ofthe Brantley County Board of Education as of June 30, 2002, and the results of Its operatIOns and the cash flows of its nonexpendable trust fund for the year then ended, m conformity with accountmg pnnclples generally accepted in the Umted States of Amenca
In accordance WIth Government AudIting Standards, we have also Issued our report dated July 14. 2003, on our conSIderation of the Brantley County Board of EducatIOn's mternal control over finanCIal reporting and our tests of its comphance WIth certain proVISIOns of laws. regulations, contracts and grants That report IS an mtegral part of an audIt performed in accordance With Government AudIting Standards and should be read m conjunction WIth tlus report m consldenng the results of our audit
2002ARL-13

Our audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Brantley County Board of Education taken as a whole. The accompanymg combimng statements (Exhibits G through L) and the finanCial schedules (Schedules I through 5), which mcludes the Schedule of Expenditures of Federal Awards as reqUired by U S. Office of Management and Budget Circular A-l33. Audlls of States, Local Governments, and Non-Profit Orgamzallons, are presented for purposes of additional analysis and are not a reqUired part of the general-purpose finanCial statements. Such mfonnatlon has been subjected to the audltmg procedures apphed m the audit ofthe general-purpose finanCial statements and m our opinion. except for the effect ofadJustrnents, if any, on the SpeCial Revenue Fund, as might have been detennmed to be necessary had we been able to satisfy ourselves as to the accuracy of the food service mventones as diSCUSsed in the third paragraph, and except for the effects ofthe matters referred to m the fourth paragraph, such infonnatlOn is fairly stated, mall matenal respects, in relation to the general-purpose finanCial statements taken as a whole
A copy of thiS report has been filed as a pennanent record m the office ofthe State Auditor and made avallable to the press ofthe State, as provided for by OffiCial Code ofGeorgia Annotated Section 506-24
Respectfully submitted,
~4~
II W Hmton
Auditor
RWll as 2002ARL-13

BRANTLEY COUNTY BOARD OF EDUCAnON

BRANTLEY COUNTY BOARD OF EDUCATION
COMBINED BAlANCE SHEET
ALL FUNp TYPES AND ACCOUNT GROUP
JUNE 30 2002

~
-Cash and Cash EqUlVllIenta
Accounts Becelvable
Inventones FOOd
Donated Con>nodrtJ..
Purdlaaed Food
Amount Available III Debt ServICe Fund
Amount to be ProvIded ., Future Years For Payment of
Lease-. Bond Debt
Capota4

GENERAl FUND

GOVERNMENTAl FUND TYPES

SPECIAL

CAPITAl

REVENUE

PROJECTS

FUND

FUND

S 1201 ge997 S

7458881 S 2645746 01

30 000 00

2273802'

23890599

5002392 3747089

Total_Is

S 1,45935021 S 400,98941 S 2,646,746 01

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable 5aIones Payable
ContrBcta PIly_
Reialnages P8}'8bIe Capo1al Lease Ag.--nonts Genellil ObbgatJon Bonds P8ylil~
Total Ll8bt!rtles
FUND EQUITY
Fund Balal'lQllS Reserved For Debt SeMCe For Endowment Corpus For 1nvent0ne8 FOOd Donated Cornmodibes Pu_FOOd For Pu:rpo!e of Bond IUlIe For SPLOST Proj8CtS
For State Caplb!ll Outlay Protects
Un""Des<gnolod for 5choIorohopo
Deficrt
UndesIgn81ed
Total Fund Equity

S

80 25612 S

25778376

20 924 46
3430080 9934 00

S 316,04186 S

6515926

S

50 023 92

3747069

S 238724201

1 109 70

19323504

S 1459,35021 S 1459350 21 S

..... 547 26 000
6294753 S

000 2,SS1,5aS 75

TotellJabillbeS and Fund EQUIty

S 1459 350 21 S

The notes to the general-purpose finanoal statements are an Integral part of this sta1li1ment

- 2-

400 989 41 S 2,645?46 01

EXHIBIT "A"

DEBT
SERVICE
FUND

FIDUCIARY FUND TYPE NONEXPENDABLE TRUST FUND

ACCOUNT GROUP GENERAL
LONGTERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30 2001

S

83304858

S 41 756,371 17 S 125295283

S

1000000

..000000

48810800

25907654

51518

725,858 25

515"908

s 1,092,12342 S

s

1092,21342

50 023 92 3747089
1092,21342

42086 37 1119110
909 229 70

3682786 58 186,17882

3682786 sa
188,17882

, 095 770 30 27100169

10,5115 18 S

4,961,178 82 S 10 570,903 05 $ _ _4;:;,~58:.5~78;::9:.:0~7_

S

61 18258 S

n 540 72

257783 76

21068164

34 300 80

9934 00

S

186 17882

186 178 82

27100169

"',775 000 00

4 n5,OOOOO

200500000

S

4,961 17882 S 5,344 379 96 S 2564 524 OS

S 1092123 42 S
000 S 1,092123 42 S S 1,092,123042 S

1000000
51518 000
1051518

S 109212342 S 1000000

909 229 70 1000000

50 023 92 3747089 2,38724201
1 109 70 19323504

42086 37 1119110
30693111

51518 .... 547 28 1,459350 21

51530 3522802 758,539 46

S 5,226,52309 S 200126502

10,51518 S

4,981,17882 S 10.570903 05 S 4,585,78907

3

BRANTLEY COUNTY BOARD OF EDUCATlQN COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Tax. .
Other Functs
Total Revenues
EXPENPITlJRES
Current Instructlon Support $e1Vlce5 PupuSeI'VlCeS Improvement of Instructional SeMces EducalJonal Mecha 5ervlC86 Generat Adml.nlstrBtlon SChool AdmlnlstratlOl1 Buslneaa Admlnlstrabon Maintenance and Operabon of Plant Student TransportatlOl1 ServIces Gentral Support $e1VlCe$ Dther Support 5erYIC8s Food ServJCes Operatlon
capital OuUay Debt service
Pnnclpal Interest
Paying AQenI F....
Total Expendrt.....
Excess of Revenues over (uncler) Expenditures
OlliER FINANCING SOURCES (USES>
Proceed.s from General Obligation Bonds Operating Transfera In Qperabng Transfor> Put
Total Other Flnandng SOlll'ce& (U68&)
Excess of Revenues and Other FIf18narJg SolXC8S over (under) Expendrtures and Other Fnanang Uses
FUND BALANCE JULY 1
Food Inventory Net Change Itl Paned Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

S 1466761503 S
2,79779792 229,30574

685,068 63 2046 034 37
390,541 88

S 17 694 716 69 S 3321 664 88

S 11 260 962 88 S
499,63316 37267090 52866279 386 784 01 1,152,552 04 99 817 38 1,423,405 B2 1,136,26997 30 702 00

1 704 146 63
108 916 31 10720365
218380 60000
1404396 2,531 58
6,799 54 1,344,556 27

84,822 87 1538410

S 16991 90794 S

S

70281075 S

3290 964 14 3068074

S

70281075 S

756,53946

30,680 74 1804945
793755 26 279 79

FUND BALANCE JUNE 30

s

1459 35021 S _ _..B2~94:;:.:.7.::53::.

The notes to the general-purpose ftnanaal statements are 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

S

679752 00

S 42156 86

S

72190886 S

S
1,106,933 72 23,~86 88

16,232,4~5 66 S 2,046 034 37 3904,73164
~,~9336

14,613174 zg 1,767,204 84 3,768,698 04 412717 66

1 130 522 80 $ 22,868,81503 S ZO 561 794 83

S

7~.310 00

1 974.586 83 S
S 2049.896 83 S S -1 32798797 $

S 12,965 12971 S 12,510,021 88

608, 7~1 49 479,87475 528.66279 388.96781 1.15315204 17512738 143744978 1.13882155
30 702 00 6799 54 1 344 556 27 1,974.586 83

467,781 08 488,906 38 49354243 329 544 84 1 14717848
9028350 1 51930310 1 154.164 37
15351 30 5,051 83
1,293,17668 132,13743

915,00000 11437587
80940

999 822 87 129 759 97
80940

910.271 77 156 935 20
1 074 ~5

1 029 985 27 S 23 362 774 18 S ZO 892 704 82

100 ~37 33 S

-<193.959 15 S

-130 909 79

S 3,60264381 S
S 3.60264381 S S 2274,855 84 S
30893111

82~39 S

3.885.000 00 S

82~39 S

3,~.00000 S

38393300 -383 953 00
000

182,89372 S 909 229 70

3,191.04085 S
1,990.74972

-130 909 79 2117 947 81

793755 28.27979

3408 53 30517

s 2 581.586 75 S

109212342 S

5 218.007 91

_...:.1 S

.::99:::0:.7:.:4::9~7;.:;2_

- 5-

BRANTlEY COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NQN-GAAP BASIS)
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2002

EXHIBIT .C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Fund. Fedenll Funds Taxes
Other Funds
Total Reveooos
EXPENDITURES

S 16,023 97~ 32 S 1~,667,615 03

2,622 2n 00
70,000 00

2797,79792 229 305 7~

S 16,71625132 S 17,6~,716 69

CtJml!1t Instrucbon
Support servtces Pupil SeMces
Improvement oIlnslrucbonal ServIces
_strabOn EdUCIIllonal MedIa services
General School Ad:n'Jnl6tr8bOn Bu6lneu AdmlnlStr8bon Maintenance and Operation of Plant
Student Transportation servICeS
Contral Support 5e1VlCeS Other Support 5eMCeS Food 5eMces Operation C.prtal Outlay Debt Service
Tool Expenditures
Excess of Revenues over (under) Expenditures
FUND BAlANCE JULY 1 2001
AdJU$lJ1lentll Food Inventory - Net Change In Penod
Donaled Commodities Purchased Foods

S 11,335 892 32 S 11,260 962 68

~62700
370,05800 504 ~73 00
558,7~00
1,205 767 00 116,88700
1 550 783 00 1,26901300
157,2~ 00

~99,833 18 372,67090 52866279 388,7~ 01 115255204
99,817 36 1 ~23~562 1,136,28997
30 702 00

51830600

10020697

S 18 067 ,82~ 32 S 16 991,907 ~

S

~6 ~27 00 S

70281075

688.262 ~

756,539 ~

-2096

FUND BALANCE JUNE 30 2002

S 1,53866886 S 1~5935021

SPECIAL REVENUE FUND

BUDGET

ACTUAL

S 672,60600 S 68506863

1,900,237 00

2 Qo46,O~ 37

369000 00

390,~1 66

S 2 ~2 045 00 S 3,32166488

S 1 500 691 00 S , 704,1~ 83

~,50000
119500 00

106,9'831 '07,20385

500 00
2~~00

218380 60000

790000

1404396 2531 58

1 190,500 00

6799~
1,~ 556 27

S 2,938 ~5 00 S 3,290,9~ 1~

S

3,500 00 S

30 680 7~

~9,557 88

18 049 ~5

-lJ5O

793755 26,27979

S

53,057 38 S _",62~,~:::.:.7~53::.

The notes to the geoeraJ-purpose ftnanaal statements are an Integral part d thIS statement -7-

BRANTLEY COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2002

EXHIBIT "0"

OPERATING REVENUES None Recorded
EXPENDITURES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income (Loss)
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
WILLlAMM ROBERSON SCHOLARSHIP
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30. 2002

JUNE 30, 2001

$

000 $

000 $

000

$

61831 $

61831 $

62006

$

-61831 S

-61831 $

-62006

61819

61819

61866

$

-012 $

-012 $

-140

10,51530

10,51530

10,51670

$

10,51518 $

10,515 18 $ =~..;1,;;0o;;,5,;;15;;,;3O;;;:,.

See notes to the general-purpose finenclal statements -8-

BRANTLEY COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002

EXHIBIT"E"

Cash Flows from Operating AetMbes Cash Paid for Scholarships
Cash Flows from Investing ActiVIties Interest ReceIVed on Investments
Net Increase (Decrease) In Cesh Cash and Cash EqUivalents July 1
Cash end Cash EqUivalents - June 30

ENDOWMENT FUND
WILLlAMM ROBERSON SCHOLARSHIP
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

-618 31 S

-61831 $

-62006

61831

61831

62006

$

000 $

000 $

000

000

000

000

$

000 $

o00 $ _ _=.,,::.0:::00:,.

See notes to the genera~purpose finanCIal statements -9-

BRANTLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Brantley 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 Supenntendent appomted by the Board. The School Dlstnct IS organized as a separate legal entity and has the power to levy taxes and Issue bonds Its budget IS not subject to approval by any other entity Accordingly, the School Dlstnct IS a pnmary government and COnsiSts of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School Distnct uses funds and an account group to report on Its financial 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 reportmg 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 m the various funds at the time of purchase A General Fixed Assets Account Group IS not presently mamtamed by the School District To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be mamtamed for reponing the cost of assets acqUired by governmental fund types
Although "school activity accounts" are mamtamed at the mdlvidual schools, neither the assets, liabilities and fund eqUity, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these finanCial statements To conform to generally accepted accounting pnnclples, these accounts should be recorded m the general-purpose finanCial statements.
The general-purpose finanCial statements account for all State, Federal, Taxes and Other funds under control of the School DIStnCt, ill compliance WIth generally accepted accountmg principles applicable to governmental UnIts, unless otherwise disclosed in these notes Funds and the account group presented m tlus report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School Distnct's educational activIties Governmental Fund Types mc1ude'
GENERAL FUND - the fund used to account for all fmanclal resources of the School District except those required to be accounted for in another fund These transactIOns relate to resources obtamed and used for services prOVided by a board of education

- 11 -

BRANTLEY COUNTY BOARD OF EOUCAnON

EXHIBIT "F"

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 restncted to expenditures for specified purposes. These funds are received primanly 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 fmanclal resources to be used for the acquisition or construction of major capital faclhties.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term pnnclpal, Interest and paYing agent fees
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit In a trustee capacity or as an agent for Individuals. private organizations, other government units and/or other funds T1us fund includes:
NONEXPENDABLETRUSTFUND William M. Roberson Scholarship Fund - the fund used to account for an endowment ofwhich the corpus IS to be invested and preserved Intact WIth the resultant Income to be used to proVide scholarship aid to a graduating senior of the Brantley County School System.
ACCOUI''T GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A finanCial reporting device used to account for general obhgatlOn 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 AJI governmental funds are accounted for uSing a current finanCial resources measurement focus With t1us measurement focus, only current assets and current liabihtles 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 habihtles in the governmental funds. Other hablhtles, which are not expected to be financed from available spendable resources, are reported in thc Gcneral Long-Term Debt Account Group
All nonexpendable trust funds are accounted for on a flow of economic resourccs measurement focus With this measurement focus, all assets and habilitles asSOCiated WIth the operation of these funds are included on the balance sheet. Operating statements present Increases (e.g, revenues) and decreases (e.g., expenses) in net total assets
- 12 -

BRANTLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAlrPURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental funds are accounted for using the modified accrual basis ofaccountIng under winch.
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 "avllliable" means collectible WIthin the current penod or soon enough thereafter to be used to pay Iiablhties of the current penod The School DIstrict considers receivables collected WIthin SIxty days after yearend to be available. Property taxes, sales taxes and interest are considered to be 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 recogruzed in the fiscal year in which all eligIbIlity requirements have been satisfied
Expenditures are generally recognized when the related fund liability IS incurred.
A departure from the above defimtlons is the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. Dunng fiscal year 2002, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period begmning 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 beglnmng 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 Dlstnct 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 pnor to June 30, 2001, were recorded In the year ended June 30, 2002. Generally accepted accounting pnnclples reqUire that revenues be recorded when aVaIlable and measurable and that expenditures be recorded when incurred, rather than when funds are receIved or disbursed.
The accrual basIS of accounting, as reqUired by generally accepted accountmg pnnciples, IS utihzed by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time habi htles are incurred.
BUDGET
The Brantley 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 overexpendlture of the budget at any level. The
- 13 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was estabhshed by the Board at the aggregate level. The budget for governmental funds was prepared on a basiS other than generally accepted accounting princIples.
The budget process begIns when the School Distnct's adrmmstration 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 of the Board after advertisement, the Board receives comments on the tentative budget, makes revIsIons as necessary and adopts a final school budget. Tlus 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 ofcash on hand, demand deposits and short-term mvestments WIth origmal matuntles of three months or less from the date of acqUiSItion m authorized finanCIal Institutions. GeorgIa Laws OCGA 45-8-14 authonzc the School District to deposit Its funds m one or more solvent banks or insured Federal savmgs and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School Dlstnct in nonpartIcipating mterest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Participating interest-earnmg contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost Both participating mterest-earning contracts and money market mvestments WIth a matunty at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Armotated Section 36-83-4 authonzes the School Dlstnct to invest its funds and m selectmg among options for investment or among mstItutlOnai bids for deposits, the highest rate of return shall be the objective, gIven equivalent condItions of safety and liquidity. Funds may be invested m the follOWIng:
(I) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) ObligatiOns fully msured or guaranteed by the Umted States government or a United States government agency.
(4) Obligations of any corporation of the Umted States government,

- 14 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(5) Pnme banker's acceptances,

(6) The Local Government Investment Pool admmlstered by the State of GeorgIa, Office of Treasury and Fiscal Services,

(7) Repurchase agreements, and

(8) Obligations of other pohtlcal subdIVISIOns of the State of GeorgIa

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mfonnatlon aVllllable Receivables are recorded when either the asset or revenue recognition cnteria has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollectible receivables

PROPERTY TAXES

The Brantley County Board of Commissioners fixed the property tax levy for the 200 1 tax dIgest year (calendar year) on November 8, 2001 (levy date) Taxes were due on January 31, 2002 (hen date) Taxes collected Wlthm the current fiscal year or Wlthm 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The Brantley County Tax ComrmsslOner 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 DIstnc!. Property tax revenues dunng the fiscal year ended June 30, 2002 for mamtenance and operations amounted to $2,753,544 83 and for school bonds amounted to $191,947 62

Tax millage rates levied for the 2001 tax year (calendar year) for the Brantley County Board of EducatIOn were as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations School Bonds

14.35 mIlls 095 mIlls

SALES TAXES

~mllls

SpeCial Purpose Local OptIOn Sales Tax revenue during the year amounted to $914,986.10 and IS to be used for capital outlay for educational purposes or debt service Thrs sales tall. was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

- J5 -

BRANTLEY COUNTY BOARD OF EOUCATlON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventones of donated food commodities used in the preparation of meals are reported on the Combmed Balance Sheet at their Federally assIgned value. Purchased foods mventones are reported on the Combined Balance Sheet at cost (first-In, first-out). Donated food commochtles are recorded as revenues and expenchtures at the time commodity items are receiVed Purchased foods inventones are recorded as expendItures at the time of purchase The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance whIch mdlcates that these amounts do not constitute "avwlable 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 acquisll10n and construction of major capItal facilIties Bond premiums and discounts, as well as Issuance costs. are recognIzed in the finanCIal statements dunng the year bonds are ISSUed General oblIgation bonds are direct oblIgations and pledge the full fwth and credit ofthe govemment The outstandmg amount of these bonds IS recorded m the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School D1StnCt has the folloWJng type of interfund tranSactIOns:
Reimbursements of expenditures/expenses mll1a1ly made from a fund that are properly applIcable to another fund are recorded as expenchtures/expenses in the relmbursmg fund and as redUCtIOns of expenditures/expenses m the fund that is reimbursed.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose fmanclal statements are captIOned "Memorandum Only" to mdlcate that they are presented only to faCIlItate financial analysIs. Data in these columns do not present financial position, results ofoperatIOns or cash flows in conformIty with generally accepted accounting principles NeIther are such data comparable to a consolIdatIOn. Interfund ehmlnal10ns have not been made m the aggregal10n of thiS data.
DEFICIT FUND BALANCES
The fund reportmg a deficII fund balance posllion at June 30, 2002, IS as follows:

- 16-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fund TypelFund Name

DefiCit Balances

Governmental Fund Type SpeCial Revenue Fund School Food Services Fund

$~_4;;y.,l;,54!i7~.2!J!o8

In the subsequent penod, the School Dlstnct anticipates usmg school food sales to eliminate thiS deficit

Note 2 DEPOSITS

COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Armotated (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 msurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the publIc funds bemg secured after the deduction ofthe amount ofdepoSit insurance. Ifa depository elects the pooled method (OCGA 45-8-13. I) 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, m hiS discretion, waive the requirement for secunty m the case ofoperating funds placed in demand depoSit checkmg accounts.

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

(I) Surety bond signed by a surety company duly qualified and authorized to transact business v,lthm 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 UOited States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of mdebtedncss or other oblIgations of the counties or muruclpalltles of the State of Georgia,

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

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

- 17 -

BRANTLEY COUNTY BOARD OF EDUCATlON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS

(7) Bonds, bIlls, notes. certIficates of mdebtedness, or other obligatIons of a SUbSIdiary corporatIon of the Urnted States government, which are fully guaranteed by the Untted States government both as to pnnclpal and mterest 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, 2002, the bank balances were $5,710,306.14 The amounts ofthe total bank balances are classified into three categones of credit nsk.

Category I - Cash that IS Insured (e.g. Federal depoSitory insurance) or collateralized WIth secuntIes held by the School Dlstnct or by the School Dlstnct's agent in the School DIstnct's name
Category 2 - Cash collateralized WIth secunties held by the pledging finanCial institution's trust department or agent m the School Distnct's name.
Category 3 - Uncollaterallzed deposits. (Th.Is mcludes any bank balance that is collateralized with securitIes held by the pledgmg financial Institution. or by Its trust department or agent but not m the School D:istnct's name.)

The School Dlstnct's deposits are classified by nsk category at June 30, 2002. as follows'

Risk Category

Bank Balance

I

$ 933.040.58

2

3.600,555 00

3

1.176,710 56

Total

$ 5,710,306,1 4

Note 3: NON-MONETARY TRANSACTIONS

The School Dlstnct receives food commodIties from the Untted States Department of Agnculture (USDA) for school breakfast and lunch programs These commodItIes are recorded at their Federally assigned value See Note I - Inventories

Note 4' RISK MANAGEMENT

The School Distnct is exposed to various nsks of loss related to torts. theft of. damage to, and destructIOn of assets, errors or omiSSions, Job related Illness or inJunes to employees, acts of God and unemployment compensation

- 18 -

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

The School District has obtaIned commercIal Insurance for nsk of loss associated WIth torts, assets and errors or omissions The School Dlstnct has neither Significantly reduced coverage for these nsks nor incurred losses (settlements) whIch exceeded the School District's Insurance coverage m any of the past three yean.

The School District has elected to self-msure 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 WItlun 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 dunng the last two fiscal years are as follows

BegInnIng of Year LJability

Claims and Changes In EstImates

ClaIms PaId

End of Year Liability

2001

$

000 $ 4,80300 $ 4,80300 $

000

2002

$

000 $

000 $

000 $

000

The School Dlstnct partICipates In the Georgia EducatIOn Workers' CompensatIOn Trust. a publIc entIty nsk pool organized on December I, 1991, to develop. Implement and admInister a program of workers' compensalion self-insurance for its member organIzations, The School Dlstnct pays an wmual 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 $350,00000 loss per occurrence, up to $2,000,000,00

The School DistrIct has purchased surety bonds to proVIde additional insurance coverage as follows'

PosilIon Covered

Amount

Supenntendent All Other Employees

$ 100,000,00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Brantley County Board of Education has entered Into vanous lease agreements as lessee for buses, These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the pre~ent value of the future mInimum lease payments as of the date of theIr inceptIOn

- 19 -

BRANTLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5' GENERAL LONG-TERM DEBT

GENERAL OBLIGAnON DEBT OUTSTANDING General ObligatIOn Bonds currently outstandmg are as follows

Purpose

Interest Rates

Amount

General Government - Series 1979 General Government - Series 1997 General Government - Series 2002

675% 3.90"10 - 4.60%
352%

$ 665,00000 425,000.00
3,685,000.00

$ 4,775.000.00

The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows'

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2001

$ 271,001 69 $ 2,005,000 00 $ 2,276,001 69

Addllions GO Bonds

3,685,000.00 3,685,000 00

DeductIOns Debt Relired

84,822.87

915,00000

999,82287

Balance June 30, 2002

$ 186178.82 $ 4.775.000.00 $ 4.96L!78.82

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

- 20-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT uFn

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

$ 69,239.38 $ 754,31200 $ 823,551 38

69,239.38

992,01850 1,061,25788

69,239.38

991,32900 1,060,568.38

993,915 75

993,915 75

806,272 00

806,272.00

803,904 00

803,904.00

Total Principal and Interest $ 207,718.14 $ 5,34L75 1.25- $ 5.549,469,39

Deduct: Imputed Interest

2\'539.32

Net Present Value of Future
Mmunurn Lease Payments $ I86.1 ?8:8Z

Note 6 ON-BEHALF PAYMENTS

The School Dlstnct has recognized revenues and expenditures m the amount of $241,059,87 for health msurance and retlTement contributions paid on the School Dlstnct's behalf by the followmg 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 $207,968,87

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 $33,091.00

Note 7 SIGNIFICANT COMMITMENTS

The followmg IS an analySIS ofslgmficant outstandmg construction or renovation contracts executed by the School Dlstnct as of June 30, 2002, together With fundmg aVailable

- 2I -

BRANTLEY COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7 SIGNIFICANT COMMITMENTS

ProJect

Unearned Executed Contracts

Funding Available From State

02G/0IS-6I3-Q02 Tennis Courts Band Concession Stand and field House Brantley County High School Roofing Transportal1on Facility Wastewater Treahnent Facihty

$ 1,436,702 84 $ 75,528 00 32,08732 34,049.97
775,181.34 5,696.66
28,93800

$J,3! 2,656.13 $ 75,528.00

The amounts described in this note are not reflected in the general-purpose financial statements

Note 8: 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 expendll1Ires which are disallowed under grant terms. The School District beheves that such disallowances, if any, Will be Immaterial to Its overall financial posll1on

Note 9' RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (IRS)

IRS PLAN DESCRIPTION Substantially all teachers, adrmrustratlve and clerical personnel employed by local school dlstncts are covered by the Teachers RetlTement System of Georgia (TRS), which IS a cost-shanng multiple employer defined benefit pension plan IRS 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 obtamed from the Georgia Department of Audits and Accounts

IRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School District who are covered by TRS are reqUired by State statute to contribute 5% of their gross earnIngs to IRS The School Distnct makes monthly employer contnbUtlons to TRS at rates adopted by the IRS Board of Trustees In accordance With State statute and as advised by their independent actuary The reqUired employer contnbutlOn rate IS 9 24% and employer contnbul1ons for the current fiscal year and the precedIng two fiscal years are as follows.

- 22-

BRANTLEY COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9: RETIREMENT PLANS
Fiscal Year 2002 2001 2000

Percentage Contnbuted
100"10 100% 100%

Reqwred ContributIOn
$ 1,098,420 60 $ 1,257,286 04 $ 1,152,59076

- 23 -

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

ASSETS Cash and Cash EquNalents Accounts Receivable Inventones
Food Donated Commodd,es Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

51,091 12 $

95,01504

9,13208

7,59500

50,02392 37,47089

$

147,718 01 $ =~1;,;0m;2,6_10..04;;";,,,

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable
TotallJab,hl.es
FUND EQUITY
Fund Balances Reserved For Inventones Food Donated Commodl!les Purchased Food Unreserved Defiat Undes,gnated
Tolal Fund Equrty
Total L,ab,ll!Ies and Fund Equrty
See notes to the general-purpose financial statements - 24-

$

12,088 18 $

21,33544

52,68230

81,27460

$

64,77048 $

102,61004

$

50,02392

37,47089

-4,54728

000 $

000

S

82,94753 $

000

$

147,718 01 S _~1:,;:0~2,~6~10:;,;04~

EXHIBIT "G"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

146,10616 $

128,686 39

$

222,17891

238,90599

176,12526

50,02392 37,47089

42,08637 11,19110

$

222,17891 $

472,506 96 $ ~....;3;;;5B:;;".,;;08;;;;9;;.1.:.:.2 .

$

71,517 55 $

71,51755 $

51,51731

26,834 50

60,25812

77,84072

123,82686

257,78376

210,68164

$

222,17891 $

389,559 43 $ _--..:340=...::,0"'39"-".67'--

$

50,02392 $

42,086 37

37,47089

11,19110

-4,54728

-35,22802

$

000

000

000

$

000 $

82,94753 $

18,04945

$

222,17891 $

472,506 96 $ ~....;3;:;;5B=,08;;;;9::..:.:12:=

25 -

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30 2Q02

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support SeNlces Pupil SeMCeS Improvement of Instructional SeNlceS EducalJonal Madill SeMces General Administration School Admm,stralJon Maintenance and Operation of Plant Student TransportalJon SeMces Other Support SeNlceS Food SeNlceS Operation
Caprtal OuUey
Total Expendrtures
Excess of Revenues over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

S

85,940 QO S

898,75513

390,54188

S 1,375,237 Q1 S

799,148 63 799,148 63

$

659,45577

1Q7,545 DO 17,94295

$ 1,344,556 27

14,043 96 1340
14755

$ 1,344,556 27 S

S

30,68074 $

18,04945

799,148 63 QOO QQO

7,93755 26,27979

$

82,947 53 $_~~~O:;"OO~

see notes to the genera~purpose financlal statements
- 26-

EXHIBIT "H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30. 2002

JUNE 30. 2001

$

885.08863 $

739,92870

$ 1,147,27924

2,046.034 37

1,767,204 84

390.54188

341,89715

$ 1,147.27924 $ 3,321,664 88 $ 2,849.030 69

$ 1.044,691 06 $ 1.704.14683 $ 1,404,334 24

1,37331 89,260 90
2,18380 60000
2,51818 6,65199

108.91831 107.20385
2,18380 60000
14,04396 2.531 58 6,799 54
1.344,556 27

121,32329 70,499 50 3,381 17 3.24720 2,126 19 15,321 59 8,61895 3,00774
1,293,17688 2,750 00

$ 1.147.27924 $ 3.290.984 14 $ 2,927.78655

$

000 $

30.88074 $

-78,75586

000

18,04945

93,09361

7.93755 26.27979

3.406 53 305 17

$

000 $

82,94753 $ _=.;1:,;;6;,;:.04,,;;9:;,,4;;,;5;.,

- 27-

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

ASSETS Cash and Cash EquIValents

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$ 2,387,242 01 $ ~=,;:;66::o,2:::68:::.::96~

LIABILITIES AND FUNp EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retalnages Payable
TotalbJabllrtles
FUND EQUITY
Fund Balances Reserved For Purpose of Bond Issue For SPLOST Projecta For State CaprtBl Outlay Projects Unreserved UndeStgnated
Total Fund Equrty
Total Liabilities and Fund EqUity

$

20,92446

34,300 80

9,934 00

$

65,15926

$ 2,387,24201 $
000 $ 2,387,24201 $

1,109 70
000 1,10970

$ 2,387,242 01 $ _ _,.:;66;;,~268~96~

See notes to the general-purpose finallClal statemen1s - 26-

EXHIBIT "I"

LOTTERY PROJECT

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

193,235 04 $ 2,646,746 01 $ _....:306=.:;;,9;:,31;.1.;.1~

$

20,92446 $

34,300 80

9,934 00

$

65,15926 $

000 ----'O"-'OO=_

$ 2,387,242 01

1,109 70

$

193,235 04

193,235 04 $

306,931 11

000

000

000

$

193,23504 $ 2,581,586 75 $

306,931 11

$

193,23504 $ 2,646,746 01 $ _....:306=.:;;,9;:,31,;.,;"11;,,.

- 29-

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

REVENUES
Slate Funds Other Funds
Total Revenues
EXPENDITURES
Current Support SeMCeS BUSiness Administration
Ceprtel Outley Salanes Employee Benefits Professlonal and Technical ServiceS Land and Land Improvements BUilding and Building Improvemen1s
Total Expendrturas
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obhgabon Bonds Par Value
Operating Transfers In Operatln9 Transfers Out
Total Other FinanCIng Sources (Uses)
Excess of Revenues and Other FInanCIng Sources over (under) Expendrturas and Other FinanCing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

41.84881 $

$

41.848 81 $

000 000

$

75.31000

$

6.07100

48445

16.583 00

987.303 76

$

75,31000 $ 1.010,422 21

$

-33.461 19 $ -1.010,422 21

$ 3,602,64361 $
-1.181,94041
$ 2,420,703 20 $

1.011,53191 1.011.531 91

$ 2.387.24201 $ 000

1.10970 000

$ 2.387.24201 $

1:....1:.::09:;:.:;70~

See notes to the general-purpose finanCIal s1atements - 30-

EXHIBIT "J"

lOTIERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 679,75200 $ _ _---=306:=..;0::;:5:...
$ 680,060 05 $

679,75200 42,156 86 $
721,908 B6 $

-=6""37'-""30'-=63""7'-""30'-

$

75,31000

$

50,992 90

913,17172

6,07100 46445
16,563 00 50,992 90 1,900,47548 $

$ 964,164 62 $ 2,049,896 83 $

$ -284,104 57 $ -1,327,98797 $

95,82043 95.82043 -95,18313

$ 3,602,64361

$ 170,40850

1,181,94041 $

-1,181,94041

$ 170,408 50 $ 3,602,643 61 $

363,95300 383,953 00

$ -113,696 07 $ 2.274,65564 $

306,931 11

306,931 11

288,76987 18,161 24

$

193,235 04 $ 2,561,586 75 $ _-=,306=':,;;9;;;,31;.,1.;.1~

- 31 -

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 2002

EXHIBIT "K"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 194,32475 $

638.72183 $

833.048 58 $

307,021 81

428.108 DO

12,51811

246.558 73

259.07684

174.09989

Total Assets

$ 206,842 86 $

885.280 58 $ 1 092.123 42 $~:=::909=,229~d.7~0

FUND EQUITY
Fund Balances Reserved For Debt SaMC8 Unraserved UndaSlgnated

$ 206.84286 $

885.280 58 $ 1.092,12342 $

0 00 _ _ _----:0::..0"'0::..

0 00

909,22970 000

Total Fund Equity $ 206.84286 $

885.280 58 $ 1.092.123 42 $ _....:;909=,22=9.;.70:;.

Sea notes to the genaral-purpose finandal statements - 32-

BRANTLEY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAlANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30 2002

EXHIBIT "L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30 2002 JUNE 30 2001

REVENUES Taxes
Other Funds
T etal Revenues EXPENDITURES

S 191,94762 $
6,29585
S 198 243 47 S

91498610 S 110693372 S 109782313

1729303

23 588 88

1845513

93227913 S 1 130 522 60 S 1,11627826

DellI 5e!vk:e
Prinapal Interest PaYIng Agenl Fees

S 140,00000 S
4961250 60940

TOIaI Expenddures

S 190 221 90 S

Excess of Roveooos over (under) Expenditures

S 6021 57 S

OTHER FINANCING SOURCES (USES>

Proceeds from General Obligation Bonds Par Value

Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCIng Uses S

8,021 57 S

FUND BAlANCE JULY 1

198 621 29

n5,00000 S
64,76337

91500000 S
11437587
60940

830 000 00 13700000
1 07455

839,76337 S 1 02998527 S 968 074 55

92,51576 S 100 537 33 S 146 203 71

62,356 39

62,356 39

174,872 15 S
71040641

162 893 72 S
909,22970

146,20371 761,02599

FUND BAlANCE JUNE 30

S 206 642 66 S 885,26056 S 1092,12342 S 909,22970

see notes to the general-purpose nnanaal statements

- 33-

BRANTLEY COUNTY BOARD Of EDUCATION
SCHEDULE OF EXPENDITURES OF FEpERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE 1"

FUNDING AGENCY PROGBAMIGBANT
Agno.Jllure. U S Dep.rtment of
Child Nutrttlon Clust.r
P.ss-Through From GeollI"' Depat1ment of Educatlon
Food and Nutritlon Program Food 8eMCe5
SChool Breakfast Program N.tlonal School Lunch Progr.m
Tot.1 Child NutJ1tIon Cluster
Otherprogramo
Ps-Through From Georg.. Department of Educa_
Food .nd Nutntlon Program
Food DlstribuUon Program (1) Pass-Through From 01'ftce of SChool Readnless
Food and Nutrition program
Child and Adu~ C.re Food Program
Total U S Department of Agrtcullure
Educabon U S Department of Special Education Cluster PassThrough From Georg", Dep.rtment of Educahon IndIVIduals WIth DlS8bolibe. Educaoon Ad Part B - SpeCl8I EdUC8lJon Flow Through Praschool
Total Sped.1 Educatlon C!usler
Other Programs
P.....l1Yough From Geolllia Department of Educatlon
Elem.ntary and second.ry EdUC81Jon Ad TItklI Grants to Local EdUCll1lon8I Aganaes
T~II
8senhower Pro1ess'onaf Development TrtI8V1
Innovative Educatlon Program Strateg... Class SIze Raductton VocatJon8l Educabon Basic Gr.nts to Stat.. HllJh School Program BaslcGrant Pass-Through From Okefenokee Reg:kmal Educatlllll8l Agency Sala and Drug Free School. and CommwVbes
Tot.' U S Department of Education

CFDA NUMBER
10553 10555
10550 10558
64 027 84173
84 010 84 281 84 298 84 340 84048 84188

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NlA

S 21549256

(2)

NlA

614641 89 S 1 280,27488 (3)

S 830,134 45 S 1 280.27488

NfA

64 281 59

64.281 59

NlA

433909

(2)

S 898,75513 S 1.344,556 27

NlA

S 30704988 S

NlA

39,41300

S 346.48288 S

307.04988 39,41300
346.48288

NlA

61524581

81524581

NlA

12.19255

12 192 55

NlA

1953400

19534 00

NlA

9250200

92 502 00

NlA

4938200

4938200

NlA

11.96000

1196000

S 114727924 S 114727924

Total Federal Flnsnc1a1 Assistance

S 2.048 034 37 S 2491,83551

- 34

BRANTLEY COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARpS
YEAR ENDED JUNE 30 2002

SCHEDULE "'"

Notes 10 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 commodltJes received and/or consumed by the system dunng the current fiscal year
(2) Expendttureslor the Child and Mutt Care Food Program and the School Breakfast Program ware not mamta">ed separately and are lnduded In the 2002 National School Lunch Program
(3) Expendltu.... for thIS program Include State and/or Other Funds ExpendItures are not malntalned by fund source
MaJor Programs are ldentilled by an as1ertsk (") In front of the CFDA number
The School Dtstrid did not proVIde Federal AssIstance to any SUbreapoenl
The accompanYl1l9 schedule of expenditures of Federal awards Includes the Federal grant acbvrty of the Brantley County Board of Education and Is presented on the modified aeaual basIS of accounting which Is lhe b8Sls of accounting used m the presentabon of the general-purpose financal statements

see notes to the generaJ.purpose finanaal statements

- 35

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

SCHEDULE '"2"

AGENCYJEUNplNG

GRANTS Community Arral~ Department of
Local AsIlstanee

Educabon, Georg19 Department 01 Quality BasK: Education Dlred blstruetJonal Cost

Koldergarten Program KJndergarten Program - Early InIerVenbOn Program Primary Grades (1-3) Program
PJ1mary Grade! - Early tnterverrUon (1-3) Program
Upper Elementary Grades (45) Program Upper Elementary Grades (45) Earty , _

Program

_

Grad.. (6-8) Program

H<gh School General Education (9-12) Program

VocatJona1 LBllOratOry (9-'2) Program

Studentl wrth DIlsabtIfbes

Category 1

Gd!ed _

Ca1egory VI

Remedial Education Program AItem8tlve Edueatlon Program Eng"'" Speak... 01 Other Lang_ (ESOL) 20 Days AddrbOnallnstrudJOn MSle8dlfiaencden_ ter Prog, ramDevelopment

Indlred Cool

Ga1egoncoI GIants

Pupil Trenopor1a1lOO

Reguler

Bus ReplaCement

Spersrty

Nur'Slflg 5eMces

Prtnapal Supplements

VocabOn8l Supe!'V1IClI"S

Migrant Educatlon

Education EqualIZatIon Fundtng Grant

Food SeMces

VOC8bOnel EducatIon

Other State Programll

Apprenbceshlp Program

Heatttl Insurance

Prnchool Handicapped Program

4-11 _

Aller ScIloo1 Program

K-3 Statewide Reading Program TeachBrB'R8IIrement Lottery Programs Aaslltlve TechnOlOgy Computers In the CIBSlroom

Geo~ State EinlllncJng and Investment Comml:askm Relni:HJraement en CCIlItruebCr1 Prqeds

Office of SChoclI Readiness Pre-KJndergarten Program

Office of Treasury and FISCiIII 5eMces Public 8cnool Emplcyees Retarement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s

500000

s

500000

748,18100 116,87300 1851,69500 30584800 1,07518900
13711;00 1,634 987 00 1271,989 00
51678100
13'320600 120 718 00 6189700 127372 00
e 504 00
69,456 00 294,21300
56 026 00 1,95274300

748 161 00 116,87300 1851695 00 30584800 1,07516900
13711900 1634 967 00 127198900
51878100
131320600 120,71800 81,8;700 127 372 00 850400 89456 00 294 213 00 56 028 00
1 ;52743 00

583 327 00 150 589 00
20 000 00 78 34~ 00 127WOO 21,00200
1 591 00 1727,83100
S 1787100

8594000

200000 20798887
2311800 48 529 80 36 384 72
1 701 84

759500 7540000

583 327 00 150 589 00
20 000 00 78345 00 12750 00 21,00200
1,59100 1 72783100
85,94000 17,87100
200000 207 ge8 87
2311600 48 529 80 36 384 72
1 701 84
7595 00 75400 00

S 879,75200

87975200

71615383

71615363

33,09100

3309100

See notes to the general-purpose finanoal atatemen1s

S 1488781503 S 88508863 S 67975200 S 1823245588 36

BRANnEr COUNTY BOARp OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX pROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3"

PROJECT
The new Waynesville Bementary SChool renOV8tlOnS end the addition of four c:::Ia:ssrooms et Brantley COUlty Middle School renovatIOns and unprovements at Brantley County High Sdlool conSIsting 01 three saence cIaasrooms Iaboratones II medae center, an addrboo to the gyrmaSIUlTl
WIth I'MIW' bIeac:I'un comtrue:bOn of a
new girts softball field renovabOnS to eXlshng faClllttes, r8OOVabOns to the gymn&Slum and physcaI educabon fBcdltJes at Hoboken and Nahunta Elementary Schools
Cap<ta1 outlay prtltOd5 at achooIs .... educatJonal faollbes thrOughout B"'"""Y Coonly <XlI1SlstJng 01 renovations addrtJons and tmprovements at Weyrte:Svllle Elomentary School and Brontley County MIddle School renovabonl addrtlOns end unprovements to the gymn8S1ums end lunchrooms at Hoboken and Nahunta Elementary Schools renovstJons eddrIJons end ,mprovernents at Brantley County HlQh SchoollfldudUlg a new roof Improvements to the athlebc facilitIeS and conatrucbon of e Future Farmers of Amenca Agncullural Show Bam end parking lot construebOn of an office for the Board of Educ:8bon system-wlde ted1no1ogy upgrades eystem-Wlde SIte lind S80Jnty upgracles and constnx:tJon of e transportation g..-age

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

sao S 3,800 000 00 S 650700100 S 793756 12 S 5 034 57

368500000

3,685 000 00

1,97458683

Ongoong

(1) The School [M;tnd s englnal cost e&brnale as apedl'led In the resolution call1l''lQ for the ImposrtlOn of the Local OptIOn
Sales Tax

(2) The SChool Dtstnct's current estll'll8te of tollli cost for the projects Includes ell cost from pro,ed I/lC8PbOrl to complebon

(3) The voters of BrBl'ltley County approved the ImposrtJon of a 1% sales tax to fund the ebove proj8CtS and retire aasoaated debt Amounts expended for theae profects may IndlXle eaJes tax proceeds state local property taxes and/or other funcl:s over the 1r1e of the projects

(4) In Bddillon to the ~rtures ehown above lhe School Dlstnct has rncurred ll"ltereat to prov1Cle advance funding
tor the above prOf8ClS as toUowa

Current Yeer

S _...::;64.,7,,63=37:.

See not. to the general-purpose ftnancJel statements

37 -

BRANTLEY COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATIQN PROGRAM (aBEl
ALLOTMENTS AND EXPENptTIJRES BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

DorecIlnstructional Programs

Kmdergerten Program

$

Kindergarten Program-Earty Intervention Program

Primary Grad.. (1-3) Program

Pnmary Grades-Earty In.l:erventlon (1-3) Program

Upper Elomenlaly Grades (4-5) Program

Upper Elementary Grades-Earty InterventK>n (4-5)

Program

Middle School (lHl) Program

H'Ilh School General Educabon (11-12) Program

VocatJonal Laboratory (9-12) Program

Studants with DlsabUrtias

Category II

category III

category IV

Gllled Student - category VI

Ramedlal Education Program

Alternative Edueatlon Program

Engbh Speakero of Other Languages (ESOL)

802.87000 $ 125.41900 1.987.10100 328.21400 1 152.188 00

851 899 19 $ 80_96
2~.03289
324.1141 27 1.25164597

14874900 1.754.52500 1.385.004 00
554.54900 1 409 234 00
12954500 87.886 00
136.886 00 8.980 00

78.529 04 1.588.980 114 1.782.625
48761225
9615700 917 596 41
34.68739 21434757
8302733 184.28274
8.860 25

1262850 $ 31143
103.22358 1.91138
71.621 27

8&4.52769 80796 39
2157266 47 32885285
1 323.28724

51 038 10 81 37361 431 07

78.52904 1.640.017 04 1 843.999 05
530.766 32

1411212 2031 29 8.164 55

96.15700 931 708 53
34 887 39 216.37888
8302733 170729
888025

TOTAL DIRECT INSTRUCTiONAL PROGRAMS

$

9.988.95000 $ 10.015.51084 $ 367.55790 $ 10383088 54

Media Center Program Stafland Profesak)nal Development

315.72800 60.12300

_.14588 17.280 84

66.71886 52.91602

520.862 52 70.196 86

TOTAL aBE FORMULA FUNDS

$

1036480100 $ 1049693734 $ 47719058 $ 10.974.12792

(1) Composed of State Funds plus Local Five Mia Share

See notes to the genera1-purpose financial statements

- 38-

BRANTLEY COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBEl
ALLOTMENTS AND EXPENDITURES BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

WaynesVIlle Elementary School Brantley County MIddle School Nahunta Elementary School Brantley County HIgh School Hoboken Elementary School Nahunta Pnmary School Central Office (Allemative Educahon Program) Other AUXIliary Faalrty
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,353,569 00 $

1,220,037 70

2,295,939 00

2,087,354 64

989,22000

1,088,579 35

2,267,648 00

2,770,875 06

1,566,236 00

1,699,069 69

1,379,652 00

1,515,530 00

136,686 00

1,62210

$

9,988,950 00 $ 10.363.068 54

See notes to the general-purpose finanCial statements - 39-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

{[,...'EII W. HI'IIOr-.
~TATF AUOITOH
(..o.s) (i..",f. 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W",hmglon ~Ircci. S W SUlle 214 AII"n1". Geurgla 30334-8400
July 14,2003

Honorable Sonny Perdue, Governor Members of the Gencral Assembly Members of the State Board of EducatIOn
and Supermtendent and Mcmbers of the Brantley 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
Ladles and Gentlemen
We havc audited thc financial statements of Brantley County Board of Education as of and for the ycar ended June 30. 2002, and have Issued our report thereon dated July 14. 2003 ThiS report was qualificd for a scope limitatIOn and for vanous departures from generally accepted accountmg pnnclples. as Identified ill the audItor's report on the general-purpose finanCial statements Except a~ discussed 10 the follOWIng paragraph, we conducted our audit 10 accordancc With audltmg standards generally accepted 10 the Unitcd States of Amenca and thc standards applicable to finanCial audits contamed 10 Government Audltmg Standards, Issued by the Comptroller General of the UnIted
State~
We did not observc the takmg of either the Federal donated commodities mventory or the purchased foods mventory at June 30. 2002, nor could we satisfy ourselves as to the accuracy ofthc amounts stated as mventones through alternative procedures
Compliancc
As part of obtainmg reasonable assurancc about whether Brantley County Board of EducatIOn's fin.mclal statements are free of matenal misstatement, we performed tests of ItS complIance With certam proVISIOns oflaws. regulations. contracts and grants. noncompliance wlth which could have a dIrect and material effect on the determmatlOn of financial statement amounts. Howevcr, providmg an opmIOn on complIance Wlth those proVISIOns was not an objective of our audIt, and accordmgly. we do not express such an opmlOn The results ofour tcsts disclosed no Instanccs ofnoncompliance that are reqUired to be reported under Governml"nt Audltmg Standards
2002YB-40

Internal Control Over FinancIal Reporting
In planmng and perforrmng our audit, we consIdered Brantley County Board of EducatIOn's Internal control over financial reporting In order to determine our audmng procedures for thc purpose of expressing our opinIOn on the finanCial statements and not to provide a~~urdllce on the Internal control over financial reporting However. we notcd certain matters involvmg the Internal control over finanCial reportmg and it~ operatIOn that we consider to be reportable conditIOns Reportable condItIons Involve matters coming to our attentIOn relating to SignIficant deficlenclcs In the deSIgn or operation ofthe mternal control over finanCIal reporting that, In ourJudgment, could adversely alTect Brantley County Board of Educallon's abIlity to record, process, summan.re and report finanCIal data consistent With assertions of managcment In the finanCial statements Reportable condluons are described In the accompanYing Schedule of Findings and Questioned Costs as items FS-6l31-02-0 1, FS-6131-02-02 and FS-6131-02-03
A matenal weakness IS a condlUon In which the deSIgn or operatIOn of onc or more of the Internal control components does not reduce to a relatively low level thc nsk that misstatements In amounts that would be matenal In relation to the finanCial statements being audited may occur and not be detected Within a timely penod by employees In the normal course of performing theIr asSIgned functIons Our consIderatIOn of the Internal control over finanCial reporting would not necessanly disclose all matters In the Internal control that mIght be reportable conditions and. accordmgly. would not necessanly disclose all reportable condItions that are also conSidered to be matenal weaknesses However, of the reportable conditions descnbed above, we conSIder Item FS-6131-0203 to be a material weakness
ThIs report IS mtended solely for the Information and use of management, members of the Brantley County Board of EducatIOn, Federal awarding agencIes and pass-through entlUes and IS not Intcnded to be and should not be used by anyone other than thcsc specified parties
---Re~pectfully submitted.
RWHas 2002YB-40

W<;SFI I W. HI~T()'"
ST....TE AUDITOR
14::;4' l;'jl'i 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ.~hmglOn Sircel S W SUite 214 Allan!. Georg 30334-8400
July 14, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Brantley County Board of EducatIon
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CON fROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladles and Gentlemen
Compliance
We have audited the compliance of Brantley County Board of Education With thc types of compliance reqUIrements described In the US Office ofManagement and Budgel (OMB) CIrcular A-133 Compliance Supplement that are applicable to each of It~ major Federal programs for the year ended June 30, 2002. Brantley 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 cach of Its major FederaJ programs IS the responSibilIty of Brantley County Board of EducatIOn's managemcnt Our responsIbIlIty IS to express an opinIOn on Brantley 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 Umted States of Amenca. the standards applIcable to financlaJ audits contained In Government AudIting Standard\. Issued by the Comptroller General of the Umted States, and OMB Circular AlD. AudlH of Siales. Local Governmentv. and Non-Profil OrgamzallOnv Those standards and OMB CIrcular A-I33 reqUIre that we plan and perform the audit to obtain reasonable assurance about whether noncompliance WIth the types of complIance reqUIrements referred to above that could have a dIrect and matcrial effect on a major Federal program occurred An audit Includes examining. on a test basiS. eVidence about the Brantley 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 Brantley County Board of EducatIOn's complIance With those rcquIrements
2002SA-30

In our opmion, the Brantley County Board of Education complIed, in all matenal respects, WIth the requirements referred to above that are applIcable to each of its major Federal programs for the year ended June 30, 2002.
Internal Control Over ComplIance
The management of Brantley County Board of EducatIOn IS responsIble for establishing and maintaining effective mternal control over complIance WIth reqwrement~ of laws. regulations, contracts and grants applicable to Federal programs In planmng and perforrmng our audIt, we conSidered Brantley County Board ofEducation's mternal control over complIance With requirements that could have a dIrect and material effect on a major Federal program m order to detcrmine our audltmg procedures for the purpose of expressing our opmlOn on complIance and to test and report on mternal control over complIance m accordance ~lth OMB CIrcular A-133.
We noted certaIn matters mvolvmg the internal control over complIance and Its operation that wc conSider to be reportable conditions Reportable conditions involve matters commg to our attention relatmg to SIgnificant defiCienCies in the deSign or operation of the internal control over compliance that, m our Judgment. could adversely affect the Brantley County Board of Education's ability to admlmster a major Federal program m accordance WIth applIcable requrrements oflaws, regulatiOns, contracts and grants Reportable conditions are descnbcd m the accompanying Schedule ofFmdmgs and QueSlJOned Costs as Items FA-6 131-02-01 and FA-6131-02-o2
A matenal weakness IS a condItion in whIch the deSign or operation of one or more of the internal control components does not reduce to a relatively low level of nsk that noncomplIance WIth the applIcable requIrements oflaws, regulations. contracts and grants that would be matenal m relation to a major Federal program being audIted may occur and not be detected wlthm a timely pcnod by employees m the normal course of performmg their assigned functIOns Our conSideration of the mternal control over complIance would not necessanly disclose all matters m the mternal control that mIght be reportable conditIOns and, accordingly, would not necessarily diSclose all reportable conditions that are also conSidered to be matenal weaknesses However. we belIeve none of the reportable conditions descnbed above IS a matenal weakness.
ThIs report is mtended solely for the information and use of management, members of the Brantley County Board of EducatIOn. Federal awardmg agencies and pass-through entities and IS not mtended to be and should not be used by anyone other than these specified parues.
.--R..es:pectfully submitted,

RWH:as 2002SA-30

Rus II W Hinton State AudItor

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

BRANTLEY COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED CQSTS

FINDING CONTROL NUMBER AND STATUS

FS-6 131-00-0 1 FS-6131-00-02 FS-613I-OI-01 FS-6131-01-02 FS-613I-OI-03 FS-6 131-0 1-04

Further Action Not Warranted Further Action Not Warranted PrevIOusly Reported Corrective ActIOn Implemented Unresolved - See Correcllve ActlOn/Responses Unresolved - See Corrective AClion/Responses Unresolved - See Correcllve Action/Responses

CORRECf1VE ACTIONIRESPONSES

CASH AND CASH EQUIVALENTS GENERAL LEDGER AccountinglIntemal Control DefiCienCies Fmdmg Control N wnber. FS-6131-01-02

We have implemented procedures and controls to ensure that bank statements are reconciled to the general ledger and that reqUired adjustments are idenllfied and recorded ill a llmely marmer

CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURESILIABILITIESIDISBURSEMENTS GENERAL LEDGER Inadequate Separation of Duties Findmg Control Nwnber FS-6 131-0 1-03

The School District has Implemented procedures whereby the nutntlOn clerk reconciles bank statements to the General Ledger The School Food Service Director reviews thc reconcIlIatIOns for accuracy. Manual checks are stored m the office of the ASSistant Supenntendent of Fmance and are inserted mto the pnnter by the nutritIOn clerk. The check mforrnatlOn is then entered mto the computer by the School Food Service bookkeeper. After the check is pnnted, the check is then CO-Signed by a member of the Board of EducatIOn The School Food Service Director reviews and approved all Journal entries Cash is received and receipted by thc nutntlOn clerk and the School Food Service bookkeeper prepared the depoSit slIp The School Food Service bookkeeper mamtams cash disbursement and general ledger funcllon.\ ....~th the oversight of the School Food Service Director.

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BRANTLEY 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 OUESTIONED COSTS

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General FIxed Assets Account Group FIndIng Control Number. FS-6131-01-04

The Brantley County Board of EducatIOn does not at this time have sufficient resources to maIntaIn a system-WIde General Fixed Assets Account Group WIthin the formal accountIng records.

PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6131-0I-ol

PartIally Resolved

CORRECTIVE ACTIONIRESPONSES

PROGRAM INCOME AccountIng/lnternal Control DefiCIenCies FIndIng Control Number FA-6131-01-01

The School District is performing reconcIlIations of amounts reported on weekly cash Income reports to the amounts listed on the deposit slIps and then the amounts recorded on the general ledger. Variances between the actual cash accounts and the computer generated daIly summary reports are examIned for cause, are corrected, and then documented All receIpts for the sale of meals are recorded on the general ledger. Adults purchasing a school Iunch will enter theIr identification number and have the cost of their meal deducted from their account balance or will pay the cashicr the price of the meal Casluers WIll enter the sale of the meal into the computer before the adult IS allowed to leave with the meal Adults charged for addItIOnal meals.

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SECTION IV FINDINGS AND QUESTIONED COSTS

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

SUMMARY OF AUDITOR'S RESULTS

Type of Report Issued on the Financial Statements The auditor's opinion on the Brantley County Board of Education's financial statements wa~ qualified for a scope limItation and for various departures from generally accepted accounting pnnclples

2 Reportable Conditions In Internal Control Disclosed by the Audll of the FinanCial Statements The audIt report for the Brantley County Board of EducatIOn dIsclosed finanCial statement reportable conditIons related to the follOWing control categones

Cash and Cash EqUivalents RevenuesJRecelvablesJRecelpts General Fixed Assets

ExpendlturesILlabllitIeslDisbursements General Ledger

Of the reportable conditIons described above, General Fixed Assets IS consIdered to be a matenal weakness

3 Noncompliance Matenal to the Financial Statements The audit of the Brantlcy County Board of EducatIOn disclosed no instances of noncomplIance that were deemed to be matenal to the financial statements

4 Reportable ConditIOns in Internal Control Over MaJor Programs The audit report for the Brantley County Board of Education disclosed reportable condltlons m internal control over major programs for the following compliance requirements

Program Income

Special Tests and ProviSIOns

None of the reportable condltlons descnbed above are considered to be matenal weaknesses

5 Type of Report Issued on Compliance for MaJOr Programs 'The auditor's opmlOn on the Brantley County Board of EducatIon's report on compliance With reqUirements applicable to major programs was qualified

6, Audit Findings Required to be Reported by SectIon 5 IOra) of OMB Circular A-133 The Brantley County Board of Education's audit disclosed audit findmgs reqUired to be reported by section 510(a) ofOMB Circular A-133, These audit findings are Included In sectIon IV of thiS report

7 MaJOr PrognuTls Federal awards audited as major programs are as follows' 10553 Food and Nutrition Program - Food Services - School Breakfast Program 10,555 Food and NutntIon Program - Food Scrvlces - National School Lunch Program

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BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS 8 Type "A" Program Dollar Threshold
The dollar threshold for type "An programs was $300,000.00
9 Low RIsk Audltee The Brantley County Board of Education qualified as a low risk audltee as defined by SectIon .530 ofOMB Circular A-I33.
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS CASH AND CASH EQUIVALENTS GENERAL LEDGER AccountinglInternal Control DefiCiencies Reportable Condition Repeated From Prior Year Fmdmg Control Number: FS-6I3 1-02-01 An examination of the mternal accounting control procedures revealed the following deficienCies
(I) Bank statements were not reconciled to the general ledger for the payroll and school food service accounts
(2) Reconciling items were not resolved in a tImely manner for the operating, payroll, and school food service accounts.
(3) Manual checks were issued, cleared the bank, and were not recorded on the general ledger
(4) VOided checks were not kept m the custody of the School DIstrict and in some mstances checks descnbed as void cleared the bank.
These deficienCies were the result of management's failure to establish mternal control procedures necessary to adequately safeguard and report cash The School Distnct should implement appropriate procedures and controls to ensure that bank statements are reconciled to the general ledger and that required adjustments are IdentIfied and recorded m a timely manner.
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BRANTLEY 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 EQUIVALENTS REVENUESIRECEIVABLES/RECEIPTS EXPENDITURESILIABILITIESIDISBU RSEMENTS GENERAL LEDGER Inadequate Separation of Dulles Reportable CondItion Repeated From Pnor Year Fmdmg Control Number: FS-6131-02-02
A revIew of the School DIstrict's internal control polICIes and procedures noted defiCiencies 10 providmg for adequate mtemal control over the follOWIng functions and related procedures for the School Food Services program
(I) The bank reconctliallons were not reviewed by an individual Independent of cash operatIOns
(2) The School Dlstnct has only one employee who maintains the general ledger, prepares checks, Signs checks and reconciles bank statements
(3) Journal entries were not reviewed and approved by someone Independent of the general ledger function
(4) Cash custody and recelptmg funcllons were not separated from cash disbursement and general ledger functions.
(5) Deposit preparatIOn functions were not separated from cash receipts functions
These conditions were the result ofmanagement's deciSion to lImn the number ofadmInistrative staff made responSible for accounting funcllons over the School Food Services program The School Dlstnct should review thc accounting procedures In place, deSign procedure~ that would enhance segregatIOn of dulles relative to the above control categories, and IIDplement those procedures to strengthen the mternal control over the School Food Services accounting functIOns
GENERAL FIXED ASSETS FaIlure to MaintaIn General FIxed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Findmg Control Number: FS-6131-02-03
The Brantley County Board of Education did 1I0t maIntaIn a system-WIde General Fixed Assets Account Group within the formal accountmg records as reqwred by generally accepted accountIng pnnciples This condition results in the general-purpose finanCIal statements of the School District
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BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Matenal Weakness Repeated From Pnor Year Finding Control Number. FS-6131-Q203
being Incomplete and not in accordance WIth generally accepted accounting prinCIples. Appropnate actIOn should be taken by the School Dlstnct 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 owned by the School Distnct and should include, but may not be lImIted to, date acqUired, acqUisitIOn cost, estimated replacement cost. locallon and descnption DetaIled records should be maintained ofall addItIOns and deletions to the General Fixed Assets Account Group.
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
PROGRAM INCOME Internal Control DefiCIencies Reportable Condition Repeated From Pnor Year U. S Department of Agriculture Pass-Through From Georgia Department of Educal10n Finding Control Number: FA-6131-Q201
A review of the School Dlstnct's program Income internal control procedures for the Child Nutntlon Cluster (CFDA No. 10.553 and No 10 555) revealed the follOWIng deficienCIes:
(I) ReconcilIations of weekly cash Income reports to amounts recorded on deposit slips and the general ledger were not performed
(2) Vanances between the actual cash counts and the computer generated daily summary reports were not properly explained or documented
(3) Several receipts ofrneal sales were not recorded on the general ledger
These condItions were the result ofmanagement's failure to Implement appropnate Internal controls for momtoring compliance In accordance WIth Federal gUIdelInes The School DIstrict should implement polIcies and procedures to ensure compliance WIth Federal reqUIrements over program income
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BRANTLEY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS SPECIAL TESTS AND PROVISIONS Internal Control Deficiencies Reportable Condition U S Department of Agriculture Pass-Through From Georgia Department of Education Finding Control Number: FA-6131-02-02 A review of the School District's verificatIOn procedures for the Child NutritIOn Cluster (CFDA No 10 553 and No.1 0 555) revealed the following defiCienCies:
(I) Income was incorrectly calculated m the verificatIOn process, resultmg m two students receIVIng reduced price meals Instead of paid meals
(2) The status of a Sibling was not changed after it was determined through verification that all students on the family application were ineligible to receive free or reduced pnce meals
These conditIOns were the result of management's failure to Implement appropnate mternal controls to ensure compliance m accordance with Federal guidelines The School Dlstnct should Implement poltcles and procedures to ensure that the venfication process is accurately completed and all student~ affected In the process are properly updated.
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