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' -' , . , ,', , .' ~ I ..... ./ '<, I" . ,'l , '. \' -' BULLOCH 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 7 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 8 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 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 3 BY PROGRAM 32 4 BY SITE 33 BULLOCH COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 SECTION ill 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 RlJSSELL W. HINTON STATE AUDITOR (404) 6562174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S. w.. Suite 2 J4 Atlanta. Georgia 30334-8400 February 15,2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Bulloch 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 Bulloch County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Bulloch County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the 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: 200 I ARL-13 l 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 aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Bulloch County Board of Education as ofJune 30, 200 I, 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 February 15,2002, on our consideration ofthe Bulloch County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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 Bulloch County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules I through 4), 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 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 fmancial statements taken as a whole. 2001ARL-13 A copy ofthis report has been filed as a pennanent 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, ll).~~ R ell W. Hinton State Auditor RWH:gp 2001ARL-13 BULLOCH COUNTY BOARD OF EDUCAnON - - - - - - - - - - - - - - - - - ----- - - - - ----- ---- BULLOCH COUNTY BOARD OF EpUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001 ASSETS Cash and Cash EqUivalents Investments Accounts Receivable Due from Other Funds Inventones Food Donated CommodilJes Purchased Food Amount Available in Debt Service Fund Amount to be Provided In Future Years For Payment of Bond Debt Total Assets GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 1,523,487.49 $ 4,435,989,12 6.695,943.61 $ 1,147.367,14 148,051.80 2,177 .82Q.83 64,792,32 30,029,24 $ 13,309,753,56 $ 1,242,188,70 $ 1,671 ,539,29 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Due to Other Funds General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of State Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undeslgnated Deficit Total Fund Equity $ 902,262.49 $ 1,896,680,19 5.090.599,74 622.885,19 86,206,71 456,706,19 $ 240.890,64 $ 7,889,542.42 $ 1,165,79809 $ 240,890,64 $ 64.792,32 30.029,24 $ 5,420,211,14 $ 5,420.211.14 $ O,DO $ .18,430,95 76.390.61 $ 1,430,648,65 1,430,648,65 Total L1abllilJes and Fund Equity $ 13,309,753,56 $ 1,242,188,70 $ The notes to the general-purpose financial statements are an Integral part of thiS statement. 2 1.671 ,539.29 EXHIBIT "A" DEBT SERVICE FUND ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000 $ 2,550.384.75 $ 4,073,872.24 $ 3,356,205.15 4,435,989.12 4,480,998.33 31,757.71 8,023,120.26 9,017,879.83 2,1n,820.83 705.820.83 $ 404,321.63 16,670,678.37 64,792.32 30,029.24 404,321.63 16,670,678.37 43,098.36 27,929.61 273,513.03 17,471 ,486.97 $ 2,582,142.46 $ 17,075,000.00 $ 35,880,624.01 $ 35,376,932.11 $ 2,177.820.83 $ $ 2,1n,820.83 $ $ 17,075,000.00 1,525,147.68 $ 1.982,886.90 5,547.305.93 240,890.64 2.177,820.83 17,075,000.00 264,846.22 1,897,726.19 5,265,332.35 7,839.48 46,422.00 109,091.86 705,820.83 17,745,000.00 17,075,000.00 $ 28,549,051.98 $ 26,042,078.93 $ 404,321.63 0.00 $ 404,321.63 $ 162.00 $ 404.321.63 273.513.03 64,792.32 30,029.24 43,098.36 27.929.61 754,170.47 6,850,859.79 -18,430.95 8,235,979.71 $ 7,331 ,572.03 $ 9,334,853.18 $ 2,582,142.46 $ 17,075,000.00 $ 35,880,624.01 $ 35,376,932.11 -3- BULLOCH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil services Improvement of Instructional Services Educational MedIa Services General Administration School Administration BUSiness Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal Interest PaYIng Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) 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 Food Inventory - Net Change in Period Donated Commodities Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 36,451,435.15 $ 99,612.08 16,417,934.04 1,275,471,04 $ 54,244,452.31 $ 937,659.81 5,367,82499 1,118,781 42 7,424,26622 $ 37,602,44816 $ 1,836,501,80 934,003,58 1,363,488,75 434,431,21 3,935,827,78 291,478.33 4,254,065.61 2,905,679.35 600,134,56 165,066,64 328,732.27 2,992,154,66 480,928,24 177.268.44 66,128,33 126,655,16 9,587.86 2,158,00 51,419,28 165,809,52 3,661,840.87 $ 54,651,858.04 $ $ -407,405.73 $ 7,733,950,36 -309,684.14 $ $ -38,451,47 $ -38,451 47 $ 38,451,47 38,451 47 $ -445,857,20 $ 5,866,068,34 -271,232.67 323,829,69 21,693.96 2,099.63 FUND BALANCE JUNE 30 $ 5,420,211,14 $ ===7,;;;6=,3=9,;;0.6....,1 The notes to the general-purpose financial statements are an integral part of this statement. -4- EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 1,204,378 41 $ 38,593,473.37 $ 35,656,526.07 5,467,437.07 5,014,836.45 $ 1,746,935.23 18,164,869.27 17,838,099.89 13,568.00 5,791.21 2,413,611.67 2,194,445.83 $ 1,217,946.41 $ 1,752,726.44 $ 64,639,391.38 $ 60,703,908.24 $ 2,658,739.88 $ $ 2,658,739.88 $ $ -1,440,79347 $ $ 40,594,602.82 $ 36,320,065.94 2,317,430.04 1,111,272.02 1,429,617.08 561,086.37 3,945,415.64 291,478.33 4,256,223.61 2,957,098.63 600,134.56 330,876.16 3,661,840.87 2,987,472.15 3,277,453.87 1,020,978.19 1,647,097.15 537,825.42 3,932,333.84 245,586.85 4,198,406.73 2,710,609.46 930,483.35 304,777.15 3,640,065.30 4,585,097.02 670,000.00 943,890.00 8,027.84 670,000.00 943,890.00 8,027.84 640,000.00 985,590.00 3,174.74 1,621,917.84 $ 66,666,466.12 $ 64,979,545.01 130,808.60 $ 2,027,074.74 $ -4,275,636.77 $ 38,451.47 $ 44,924.79 -38,451.47 -44,924.79 $ 0.00 $ 0.00 $ -1,440,793.47 $ 2,871,442.12 130,808.60 $ -2,027,074.74 $ -4,275,636.77 273,513.03 9,334,853.18 13,637,518.62 21,693.96 2,099.63 -39,848.65 12,619.98 $ 1,430,648.65 $ 404,321.63 $ 7,331,572.03 $ 9,334,853.18 -5- BULLOCH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30, 2001 EXHIBIT"C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds $ 35,266,097.19 $ 36,451,435.15 98,656.80 99.612,08 16,473,298,00 16,417,934.04 537,58081 1,275,471.04 Total Revenues EXPENDITURES $ 52,375,632.80 $ 54,244,452.31 Current Instruction Support services Pupil serviceS Improvement of Instructional Services Educational Media services General Administration SChool AdminIStration Business Adminlstrabon Maintenance and Operation of Plant Student Transportabon serviceS central Support services Other Support services Food services Operation capital Outlay $ 37,875.158.20 $ 37,602,448.16 1.833,239.89 958,218.19 1,403,621,06 423,603.00 4,032.684.75 235.017.00 3,981,553.51 2,648,64642 616,733.97 171.377 00 1,836.501 80 934,003.58 1.363.488 75 434.431.21 3,935,827.78 291,478.33 4,254,065.61 2,905,679 35 600.134.56 165,066.64 417,864.00 328,73227 Total Expenditures $ 54,597.776.99 $ 54,651,858.04 Excess of Revenues over (under) Expenditures $ -2,222,14419 $ -407,40573 OTHER FINANCING SOURCES IUSES) Other Sources Other Uses $ -356.623.64 356,62364 $ -38,45147 Total Other FinanCing Sources (Uses) $ 0.00 $ -38,451.47 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -2,222,144.19 $ -445,857.20 FUND BALANCE JULY 1, 2000 5,968,299.32 5,866.068 34 Adjustments Food Inventory - Net Change In Penod Donated Commodities Purchased Food -7,43981 FUND BALANCE JUNE 30, 2001 $ 3?38,71532 $ 5,420,211 14 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) $ 947.922.67 $ 937,65981 5,762,19376 5,367,824.99 1,124,990.35 1,118,78142 $ 7,835,106.78 $ 7,424,266.22 $ 3,135,233 99 $ 2,992.154 66 425,19918 184,031,98 91.193.82 153,930.31 11,029.00 480.928.24 177,26844 66,128.33 126,65516 9,587.86 2,158.00 51,419.28 169,382.00 3,915.905.84 165,809,52 3,661,84087 $ 8,085.906.12 $ 7,733.950 36 $ -250,799.34 $ -309,684.14 $ 38,45147 $ 38,45147 $ -250,79934 $ -271.23267 241,894.84 323,829.69 -72.36971 21.693.96 2,099.63 $ -81,274.21 $ 76,390.61 The notes to the general-purpose financial statements are an integral part of thIS statement. -7- BULLOCH COUNTY BOARD OF EDUCATION EXHffiIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Bulloch 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not 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 of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational 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. -8- BULLOCH COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 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. 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 and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. - 9- - - - - - - - - - - - - - - - - - - - - -- ------ BULLOCH COUNTY BOARD OF EDUCAnON EXHmIT liD" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 200 I. State grants to fund the State's share of these contracts are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. BUDGET The Bulloch 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. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term 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 - 10- BULLOCH COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES at amortized cost. Both participating interestearning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: (1) Obligations issued by the State of Georgia or by other states, (2) Obligations issued by the United States government, (3) Obligations fully insured or guaranteed by the United States government or a United States government agency, (4) Obligations of any corporation of the United States government, (5) Prime banker's acceptances, (6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other political subdivisions of the State of Georgia. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Bulloch County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 17,2000 (levy date). Taxes were due on January 12,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Bulloch County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $8,963,418.05 and for school bonds amounted to $946,935.23. - 11 - BULLOCH COUNTY BOARD OF EDUCATION EXHmIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Tax millage rates levied for the 2000 tax year (calendar year) for the Bulloch County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 9.4 mills ..lQ mills .l.QA mills SALES TAXES Local Option Sales Tax revenue during the fiscal year amounted to $7,380,512.66 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe School District. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. GENERAL OBLIGATION BONDS The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 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. - 12- BULLOCH COUNTY BOARD OF EDUCATION EXHffiIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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. DEFICIT FUND BALANCES Funds reporting a deficit fund balance position at June 30, 2001, are as follows: Fund Type/Fund Name Deficit Balance Special Revenue Fund School Food Services Fund $ 18,430.95 The School District will utilize sales in the next fiscal period and/or transfers from the General Fund to fund the deficit. 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. Ifa 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 any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, - 13- ~------------------ - - - - - - - - - - - - - BULLOCH COUNTY BOARD OF EDUCATION EXHIDIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS AND INVESTMENTS (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or ofthe 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, 2001, the bank balances were $4,897,814.72. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) The School District's deposits are classified by risk category at June 30, 2001, as follows: Risk Category Bank Balance 1 $ 103,152.22 2 0.00 3 4,794,662.50 Total $ 4,897,814.72 - 14- BULLOCH COUNTY BOARD OF EDUCAnON EXHffiIT "D" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS AND INVESTMENTS CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $4,435,989.12 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment 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 of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows: The Primary Liquidity Portfolio consists of Georgia Fund I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund. Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months. 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 ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. - 15 - BULLOCH COUNTY BOARD OF EDUCATION EXHmIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT The School District has obtained commercial insurance for: risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years. The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 2000 2001 Beginning of Year Liability Claims and Changes in. Estimates' ClaIms PaId End of Year LiabIlIty $ 0.00 $ 4.139.28 $ 4,046.00 $ 93.28 $ 93.28 $ 1,496.28 $ 518.56 $ 1.071.00 The School District has purchased a surety bond to provide additional insurance coverage as follows: Position Covered Amount Each Employee $ 100,000.00 Note 5: GENERAL LONG-TERM DEBT GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1996 General Government - Series 1997 4.70% - 6.00% 4.80% -7.00% $ 8,280,000.00 8,795,000.00 $17,075,000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: - 16- BULLOCH COUNTY BOARD OF EDUCAnON EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 5: GENERAL LONG-TERM DEBT General Obligation Bonds Balance July 1, 2000 $17,745,000.00 Deductions Debt Retired 670,000.00 Balance June 30, 2001 $17,075,000.00 At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 General Obligation Bonds 2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 2017 - 2021 $ 1,600,240.00 1,593,240.00 1,589,140.00 1,582,640.00 1,578,950.00 7,961,215.00 8,107,312.50 1,647,162.50 Total Principal and Interest $25,659,900.00 Note 6: ON-BEHALFPAYMENTS The School District has recognized revenues and expenditures in the amount of $858,171.19 for health insurance and retirement contributions paid on the School District's behalf by 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$685,688.16 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $29,301.03 - 17 - BULLOCH COUNTY BOARD OF EDUCAnON EXHffiIT "0" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 6: ON-BEHALF PAYMENTS 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$143,182.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001: Project Unearned Executed Contracts 01 G/00S-616-002 $ 1.395.15 The amount described in this note is not reflected in the general-purpose fmancial 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 expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements. Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. - 18 - BULLOCH COUNTY BOARD OF EDUCAnON EXHffiIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 9: RETIREMENT PLANS TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 3,959,900.16 $ 3,692,465.64 $ 3,576,300.41 - 19- -------------------------- BULLOCH COUNJY BOARD OF EPUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commodities Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 182,944.42 34,401,04 $ 70,000,00 64,792,32 30,029,24 $ 312,167,02 $ ===7.0.=,0=0=0,=00= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of State Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Deficit Total Fund Equity Total Liabilities and Fund Equity See notes to the general-purpose financial statements. - 20- $ $ 24,659.93 211,116.48 $ 235,776.41 $ 26,210,84 8,957.23 34,831.93 70,000.00 $ 64,792.32 30,029,24 0,00 $ -18,430,95 $ 76,390.61 $ 0.00 0.00 $ 312,167.02 $ ......=-==7=0=,0=0=0.=0.0.... -- EXHIB1T"E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 182,944.42 $ 462,109.43 $ 1,026,318.60 $ 16,647.50 1,147,367.14 1,025,743.47 64,792.32 30,029.24 43,098.36 27,929.61 $ 1,026,318.60 $ 16,647.50 $ 1,425,133.12 $ 1,558,880.87 $ 763,240.93 $ 52,319.89 210,757.78 $ 1,026,318.60 $ 16,377.84 $ 269.66 16,647.50 $ 805,829.61 $ 86,206.71 456,706.19 1,348,742.51 $ 726,955.65 82,089.94 418,166.11 7,839.48 1,235,051.18 $ 162.00 $ 64,792.32 30,029.24 43,098.36 27,929.61 $ 0.00 $ 0.00 0.00 252,639.72 -18,430.95 $ 0.00 $ 0.00 $ 76,390.61 $ 323,829.69 $ 1,026,318.60 $ 16,647.50 $ 1,425,133.12 $ 1,558,880.87 - 21 - BULLOCH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general-purpose financial statements. SCHOOL FOOD SERVICES FUND LOTIERY PROGRAMS $ 234,946.00 $ 2,045,725.33 1,118,781.42 $ 3,399,452.75 $ 643,681.37 643,681.37 $ 623,999.17 518.96 $ 8,682.55 3,661,840.87 $ 3,670,523.42 $ $ -271,070.67 $ 117.35 41,916.00 666,551.48 -22,870.11 $ -271,070.67 $ 323,667,69 21,693.96 2,099.63 22,870.11 0.00 0.00 $ 76,390.61 $ ==..-:::=0=.=00;;.. EXHIBIT"F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ $ 3,322,099.66 $ 3,322,099.66 $ 59,032.44 $ 59,032.44 $ 937,659.81 $ 5.367,824.99 1,118l81.42 7,424.266.22 $ 1,207.050.40 4,898,714.11 1,042,915.28 7,148,679.79 $ 2.361,945.56 $ 441.663.43 176,749.48 66,128.33 125,530.16 9,587.86 2,158.00 42.619.38 111,298.82 $ 3,337,681.02 $ $ -15,581.36 $ 6.209.93 $ 39,264.81 1,125.00 12.594.70 59.194.44 $ -162.00 $ 2,992,154.66 $ 480,928.24 177,268.44 66,128.33 126,655.16 9,587.86 2.158.00 51,419.28 165,809.52 3.661,840.87 7,733.950.36 $ -309.684.14 $ 2,879,082.50 504,462.64 80,327.83 65.722.13 146,430.15 573.00 1,431.99 27.840.32 13.859.00 157,649.21 3,640.065.30 7,517,444.07 -368,764.28 15,581.36 $ 0.00 $ 0.00 38,451.47 20,334.79 -162.00 $ 162.00 -271,232.67 $ 323,829.69 -348,429.49 699,287.85 21,693.96 2,099.63 -39,648.65 12,619.98 $ 0.00 $ 0.00 $ 76,390.61 $ -=......3;;:2=3:!:::.8=29:=.=6.9.... - 23- BULLOCH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Contracts Payable Retainages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue Undesignated Total Fund Equity Total Liabilities and Fund Equity REGULAR BOND PROCEEDS $ 1,430,648.65 $ 0,00 $ 1,430,648.65 $ ======,0=,0=:0,= $ 1,430,648.65 $ $ 1,430,648.65 $ 0;::.:,~00~ ---.,;0::.:..0;::.:0:... $ 1,430,648,65 $ -====-=0.:=00== See notes to the general-purpose financial statements, - 24- EXHIBIT"G" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 0.00 $ LOTIERY PROJECT TOTALS JUNE 30, 2001 JUNE 30, 2000 92,838.84 $ 1,523,487.49 $ 2,970,249.32 148,051.80 148,051.80 1,790,306.93 $ 0.00 $ 240,890.64 $ 1,671,539.29 $ 4,760,556.25 $ 1,733,600.27 46,422.00 $ 240,890.64 $ 240,890.64 109,091.86 $ 240,890.64 $ 240,890.64 $ 1,889,114.13 $ 754,170.47 $ 0.00 $ 0.00 $ 1,430,648.65 2,117,271.65 $ 0.00 $ 0.00 $ 1,430,648.65 $ 2,871,442.12 $ 0.00 $ 240,890.64 $ 1,671,539.29 $ 4,760,556.25 - 25- -------------------------------- ---------- BULLOCH COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Other Funds Total Revenues EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Tota) Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) 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 REGULAR BOND PROCEEDS $ 0,00 $ 13,568.00 $ 0.00 $ 13,568.00 $ 10.524.20 $ 105.019,88 27.265,00 $ 142.809.08 $ "$ -142,809.08 $ 0,00 0.00 13,568.00 $ 85,484.50 -629,298,42 $ -767,738.47 $ -543,813,92 $ -767,738.47 $ -686,623.00 $ 2.117.271,65 -754,170.47 754,170.47 $ 1,430.648.65 $ =-===0;;,;,=:00= see notes to the general-purpose financial statements, - 26- EXHIBIT"H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION LOTIERY PROJECT TOTALS YEAR ENDED JUNE 3D, 2001 JUNE 3D, 2000 $ 0.00 $ 1,204,378.41 $ 1,204,378.41 $ 1,416,334.93 13,568.00 42,458.15 $ 0.00 $ 1,204,378.41 $ 1,217,946.41 $ 1,458,793.08 $ 8,541.98 $ 19,066.18 $ 339,605.34 1,000.10 $ 2,503,376.23 2,609,396.21 3,061,948.95 3,01249 30,277.49 807,577.00 $ 9,542.08 $ 2,506,388.72 $ 2,658,739.88 $ 4,209,131.29 $ -9,542.08 $ -1,302,010.31 $ -1,440,793.47 $ -2,750,338.21 $ 9,542.08 $ 1,302,010.31 $ 1,397,036.89 $ 4,101,292.59 -1,397,036.89 -4,101,292.59 $ 9,542.08 $ 1,302,010.31 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ -1,440,793.47 $ -2,750,338.21 0.00 0.00 2,871,442.12 5,621,780.33 $ 0.00 $ 0.00 $ 1,430,648.65 $ 2,871,442.12 - 27- -------- --------------- "BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agriculture, U. S Department of Child NulntJon Cluster Pass-Through From Georgia Department of Education Food and Nutnbon Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutribon Program Food services Summer Food service Program for Children 10553 10.555 10559 NlA $ 422,24509 (2) NlA 1,394,584,72 $ 3,468,841,95 (3) N/A 22,79572 (2) Total Child Nutnbon Cluster $ 1.839,625.53 $ 3,468,841.95 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 10,550 NlA Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adu" care Food Program 10558 NlA 201.681.47 4.418.33 201,681,47 (2) Total U, 5, Department of Agriculture $ 2,045,72533 $ 3,670,523 42 Education, U.S, Department of Special Educabon Cluster Pass-Through From Georgia Department of Educallon Individuals with Dlsabillbes Education Act Pari B - Special Education Flow Through Preschool capacity Building Improvement Total Special Education Cluster 84.027 84173 84.173 NlA $ 723,265.26 $ NlA 31,44034 NlA 37,71680 $ 792.422 40 $ 723.279.78 (3) 31.451.88 (3) 37.716.80 792,44846 Other Programs Direct TrtleX Twenty-First century Community Leaming centers Pass-Through From First District Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and secondary Educabon Act Tille I Migrant Educabon Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Tille I Grants to Local Educabonal AgenCies Tille II Eisenhower Professional Development TiUB III Technology Literacy Challenge Fund Grants TrtleVI Innovative Educabon Program Strategies Class Size Reclucbon 84.287 84.011 84,010 84 281 84.318 84.298 84340 248,283 70 248,283.70 NlA 9,992.23 9,992,23 NlA 1.552,295,26 1,567,850.56 (3) NlA 51,57627 51,576.27 NlA 121,551.42 121,55142 NlA 58.524.00 58,52400 NlA 229,652.00 229.65200 28 - BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Education, U. S Department of Other Programs Pass-Through From Georgia Department of Education Goals 2000 State and Local Education Systemic Improvement Grants Learn and Serve America Regular School Based Project VocatIOnal Education - BaSIC Grants to States High School Program Basic Grant Total U. S. Department of EducatIOn Labor, U S Department of Pass-Through From Georgia Department of Technical and Adult Education Administrative central OffICe Employment ServiceS and Job Training Pilots Demonstration and Research Defense, U S. Department of Direct Department of the Army R.O.T C Program CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84.276 94.004 84.048 N/A $ 130,274.82 $ NlA 25,047.75 130,274.82 25,047.75 NlA 102,47981 102,479.81 $ 3,322,099.66 $ 3,337 ,681.02 17.249 NlA $ 421.68 $ 421.68 $ 99,19040 $ 99,19040 Total Federal FinanCial AsSistance NlA = Not Available $ 5.467,43707 $_-=7'=010..7....8=.;1.6.,..,5,;;;,2 Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distnbution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year. (2) Expenditures for the Child and Adult care Food Program, Summer Food Services Program for Children and the School Breakfast Program are not maintained separately and are mcluded In the 2001 National School Lunch Program (3) expenditures for thiS program include State, and/or Other Funds expenditures are not maintamed by fund source. Major Programs are Idenllfied by an asterisk (") m front of the CFDA number. The School Distnct had no major programs as defined by the Single Audit Act of 1984 The School District did not provide Federal Assistance to any Subreclplent The accompanymg schedule of expenditures of Federal awards includes the Federal grant acllvlty of the Bulloch County Board of EducatIOn and Is presented on the modified accrual basis of accounting which is the baSIS of accounllng used In the presentallon of the general-purpose finallCl8l statements See notes to the general-purpose financial statements - 29 BULLOCH COUNTY BOARD OF EPUCATION SCHEDULE OF STATE REVENUE YEAR ENPED JUNE 30, 2001 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Educalton, Georgia Department of Quality BaSIC Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Eany Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Eany Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Educabon (9-12) Program Vocallonal Laboratory (9-12) Program Students With Dlsabllilles category I category II category III category N Category V Gifted Student - category VI Remedial Educabon Program A1tematlVe Education Program English Speakers of Other Languages (ESOL) Media Genter Program Staff and ProfeSSional Development Indirect Cost categoncal Grants Pupil Transporlabon RegUlar Bus Replacement Special Instrucbonal AssiStance Nursing SeMC8s Pnncipal Supplements Vocational SUperviSOrs Deferred Summer Salanes (Pnor Year) Deferred Summer Salanes (Current Year) Education Equalization Funding Grant Food ServiceS Govemor's Emergency Funds (1) Vocallonal Education Other State Programs At-Risk Summer School Program EnVironmental Saence Program Health Insurance Innovative Programs Mentor Teachers National Teacher Gertlficatlon Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Agncultural Technology Computers In the Classroom Excepbonal Growth-Capital Outlay Vocational Technology Program $ 1,152,700.00 706.568,00 4.022,741,00 2,004.112.00 2,604.811.00 424.21600 3,962,529.00 3.952.884.00 1,196,794.00 130,054 00 877,684.00 2.374,97700 632.638.00 47.759,00 454,64700 239,520,00 351,40400 38,16700 757,71400 206,21800 4,758,063,00 $ 1,152,70000 706,568.00 4.022,74100 2.004.112,00 2,604,811 00 424,216,00 3,962,529.00 3.952,884,00 1.196.794,00 130.054 00 877,684,00 2,374,977 00 632,638,00 47,75900 454,647.00 239.520,00 351.40400 38,167,00 757,714.00 206,21800 4,758,06300 1.246,851.00 349,95500 -7.439.81 172.958,00 35.40400 47.205,00 -4,418.402.00 4.890.005,58 1.855.746.00 2.000.00 118,438.00 S 234,946 00 12.252,98 2.250,00 685.68816 5,00000 9.617.00 4,92400 113.97900 9,191,21 29.301,03 70.000.00 175.70900 100,000.00 $ 1,204.378,41 1,246,851 00 349.955,00 -7,439.81 172,95800 35,404 00 47,205.00 -4,418,40200 4,890,005,58 1,855,74600 234,94600 2,00000 118.438,00 12,25298 2,250.00 685,688.16 5.00000 9,617 00 4.92400 113.97900 9.191,21 29.301,03 70.000,00 175,709.00 1,204,378 41 100.000 00 OffICe of School Readiness Pre-Kindergarten Program 297.972.37 297,972.37 Office of Treasury and FISCal Services Public School Employees Rellrement 143.182.00 143.18200 - 30- BULLOCH COUNTY BOARp OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPER JUNE 30. 2001 SCHEDULE "2. AGENCY/fUNpING CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading FIrst Program Human Resources, Georgia Department of Family ConnectIOn GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL $ 66,984 00 180,14500 $ 59,03244 $ 66,984 00 180,14500 59,03244 $ 36.451,435 15 $ 937,65981 $ 1,204,37841 $ 38,593:47337 (1) The purpose of the funds Is the Sou1heast Bulloch High School, 2000 Georgia School of Excellence See notes to the general-purpose financial statements. 31 BULLOCH COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (aBEl ALLOTMENTS AND EXPENPITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001 SCHEDULE "3" RESCRIPTION ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS SALARIES OPERATIONS TOTAL Direct Instructional Programs Kindergarten Program $ Klndergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Educatton (9-12) Program Vocattonallaboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other languages (ESOL) 1,328,901 00 $ 1,892,796.21 $ 814,576.00 524,283,88 4,637,656.00 6,820,107.93 2,310,459.00 1,397,57454 3,002,982.00 3,160,585.73 489,062.00 1,168,31851 4,568,240.00 4,534,179.83 4,557,12000 5,987,076,31 1,379,736.00 1,334,329.54 4,684,199.00 51,204.52 760,639.56 3,224,417,52 352,322,54 524,143.00 491,344 59 276,132.00 636,26826 405,12000 505.352,74 44,00100 20,89276 121,92963 $ 20,87330 395,137.22 53,224.61 255,669.98 71,902.26 312,52612 320,477 89 331,129.50 1,61683 10,24792 103,80138 12,050.27 9,51993 37,600.29 16,85275 2,014,72584 545,15718 7,215,24515 1,450,79915 3,416,25571 1,240,220.77 4,846,705.95 6,307,554 20 1,665,459 04 52,82135 770,88748 3,328,21890 364,372.81 500,864,52 636.26826 542,953.03 37,74551 TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 29,022.327 00 $ 32,861,694 97 $ 2,074,559.88 $ 34,936,254 85 Media Genter Program Staff and ProfeSSional Development 873,53800 237,741.00 1,139,377 90 161,87640 225,434 06 228,02237 1,364,811.96 389,898.77 TOTAl aBE FORMULA FUNDS $ 30,133,606.00 $ 34,162,94927 $ 2,528,01631 $ 36,690,96558 (1) Compnsed of State Funds plus Local FIVe Mill Share. see notes to the general-purpose financial statements - 32- BULLOCH COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (qBEl ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2001 SCHEDULE "4- Mill Creek Elementary School William James Middle School Langston Chapel Elementary School Brooklet Elementary School Langston Chapel Middle School Southeast Bulloch Middle School Portal Elementary School Nevils Elementary School Bryant Elementary School Statesboro High School Stilson Elementary School Portal Middle/High School Mattie Lively Elementary School Southeast Bulloch High School Sallie Zetterower Elementary School Bulloch County Educational Opportunities Program Central Office (Alternative Education Program) Other Auxiliary Facility TOTAL (1) Comprised of State Funds plus Local Five Mill Share. AlLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS $ 2,138,500.00 $ 2,517,081.53 1,980,550.00 2,266,493.10 2,094,736.00 2,335,018.16 1,384,296.00 1,578,285.38 2,183,549.00 2,553,005.11 1,929,403.00 1,990,982.96 1,179,087.00 1,395,175.13 1,156,574.00 1,418,781.37 2,278,312.00 2,665,920.41 4,254,575.00 5,253,643.57 1,492,209.00 1,762,784.41 1,430,684.00 1,784,703.92 1,563,732.00 1,981,830.04 2,202,673.00 2,787,265.92 1,348,327.00 1,843,062.14 371,760.32 405,120.00 430,461.38 $ 29,022,327.00 $ 34,936,254.85 See notes to the general-purpose financial statements. - 33- SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS RlJSSELL W. HINTON STATE AUDITOR (404) 65&-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W.. Suite 214 Allanta. GeorgIa 30334-8400 February 15,2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Bulloch County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements of Bulloch County Board of Education as of and for the year ended June 30,2001, and have issued our report thereon dated February 15,2002. 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 Bulloch 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 of our 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 Bulloch 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 fmancial statements and not to provide assurance on the internal 2001YB-41 l control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. 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 Bulloch County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6161-01-0 I. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over fmancial 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, we consider item FS-6161-01-01 to be a material weakness. This report is intended solely for the information and use of the management, members of the Bulloch 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, W~ Rus ell W. Hinton State Auditor RWH:gp 2001YB-41 RUSSELL W. HINTON STATE AUDITOR (4()4) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S W., SUite 214 Atlanta, Georgia 30334-&400 February 15,2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Bulloch County Board of Education REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133 Ladies and Gentlemen: Compliance We have audited the compliance ofBulloch County Board ofEducation with the types ofcompliance requirements described in the U.s. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Bulloch County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Bulloch County Board of Education's management. Our responsibility is to express an opinion on Bulloch 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-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Bulloch 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 Bulloch County Board of Education's compliance with those requirements. 2001SA-IO L In our opinion, the Bulloch County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001. Internal Control Over Compliance The management of Bulloch 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 Bulloch County Board ofEducation'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-l33. 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 Bulloch 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, I~W~ Ru sell W. Hinton State Auditor RWH:gp 2001SA-IO SECfIONID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS BULLOCH COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001 PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-6161-99-02 FS-6161-00-0 1 FS-6161-00-02 Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective ActionlResponses CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6161-00-02 The School District is interested in implementing a General Fixed Assets Account Group within the formal accounting records however, due to budgetary and software constraints recording General Fixed Assets was not pursued. The School District is evaluating a timely and cost-effective approach to the General Fixed Assets Account Group. PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FA-6161-00-01 FA-6161-00-02 Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented SECTIONN FINDINGS AND QUESTIONED COSTS BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2001 I SUMMARY OF AUDITOR'S RESULTS I. Type of Report Issued on the Financial Statements The auditor's opinion on the Bulloch County Board of Education'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 Bulloch County Board ofEducation disclosed a financial statement reportable condition related to the following control category. General Fixed Assets The reportable condition described above is considered to be a material weakness. 3. Noncompliance Material to the Financial Statements The audit of the Bulloch 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 Bulloch 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 Bulloch County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified. 6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Bulloch County Board ofEducation'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 10.559 Food and Nutrition Program - Food Services - Summer Food Service Program for Children 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement -I - BULLOCH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001 I SUMMARY QF AUDITOR'S RESULTS 8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 9. Low Risk Auditee The Bulloch County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofQMB Circular A-l33. IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6161-01-01 The Bulloch County Board of Education did not 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-pwpose 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 owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. -2-