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

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CALHOUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

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

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

24

2 SCHEDULE OF STATE REVENUE

26

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

29

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

30

5

BY SITE

31

------- - - - - - ----
CALHOUN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION III AUDlTEE'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

lU.,g~II, W. HINTON
ST....TE AlIDlTOH (4(J-:IIiC,f; 217.t.

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W",nmgton 'ilrcct, S W SUlIC 214
Allanla, (;corgl" 30334-l!4(Kl
May 22. 2003

Honorable Sonny Perdue. Governor Members of the General A~sembly Members of the State Board of Educallon
and Supenntendent and Members of the Calhoun County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladles and Gentlemen
We have audited the accompanymg general-purpose finanCial statements of the Calhoun County Board of EducatIon, as of and for thc year ended June 30. 2002. as lIsted 10 the table of contents These general-purpose finanCIal statements are the responslblhty of the Calhoun County Board of Educallon's management Our responslblhty IS to express an opmlOn on these general-purpose financial statements based on our audit
We conducted our audit 10 accordance With audltmg standards generally accepted 10 the United States of Amenca and the standards applIcablc to financial audits contained 10 Government Audltmg Standards, Issued by thc Comptroller General of the United States Those standards require that we plan and perform the audit to obtam reasonable assurance about whether the financIal statements are free ofmatenal misstatement An audIt mcludes examining, on a test basis, eVidence supportmg the amounts and dIsclosures 10 the financial statcments An audit also mcludes assessing the account109 pnnclples used and Significant estimates made by managcment. as well as evaluatmg the overall finanCial statement presentatIon We beheve that our audit provides a rea:.onable basiS for our opinIOn
As descnbed In the notes to the general-purpose finanCial statements. the Board of Education's finanCIal statements have been prepared usmg certain accounting pnu..1tces and pohcles which. in our opmlon. vary In some respects from generally accepted accountmg pnnclples These vanances are descnbed as follows

2002ARL-13

The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be 10cluded to conform to generally accepted account1Og pnnciples.
School activity accounts ma1Ota1Oed at the indIvidual schools arc not 10cluded in the general-purpose financial statements To conform to generally accepted accounting pnnciples, these accounts should be 10cluded 10 the general-purpose financial statements
For fiscal year 2002. the School Dlstnct changed Its method of account1Og for the final two payments on one hundred and mnety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salanes and fnnge benefits earned by employees through June 30. 2002. (even though paId in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the Similar salaries and benefits earned 10 fiscal year 200 I but recorded 10 fiscal year 2002 as this 1Oformallon was not readily aVaIlable The net effect of the above account1Og treatment resulted 10 the accompanying financial statements reflect10g fourteen months of expenditures for a rnajonty of General Fund salanes and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted account1Og pnnclples reqwre that expenditures be recorded when 1Ocurred. rather than when funds are received or disbursed
The aggregate effects on the general-purpose financial statements of these vanances or omiSSIOns have not been determ1Oed, but are believed to be matenal
In our op1Oion. except for the effects on the general-purpose financial statements of the matters referred to in the preced10g paragraph, the general-purpose finanCial statements referred to above present fairly, 10 all matenal respects, the finanCIal poSition of the Calhoun County Board of Educallon as ofJune 30, 2002, and the results of Its operations for the year then ended, in conformity WIth account1Og pnnclples generally accepted 10 the Umted States of Amenca
In accordance With Government Audlt10g Standards, we have also Issued our report dated May 22, 2003, on our conslderallon of the Calhoun County Board of Educallon's internal control over finanCial report1Og and our tests of Its compliance with certaIn proVisions of laws, regulatIOns, contracts and grants That report is an integral part of an audit performed in accordance With Government Audlt10g Standards and should be read 10 conjunction V,1th this report in consldenng the results of our audit
Our audit was performed for the purpose of form1Og an opinion on the general-purpose financial statemeniS of the Calhoun County Board of Education taken as a whole The accompanY1Og comb101Og statemcnts (Exhibits E and F) and the financial schedules (Schedules I through 5). which 10cludes the Schedule of Expenditures of Federal Awards as required by U. S Office ofManagement and Budget Circular A-133. Audas o/States. Local Governments, and Non-Profit OrgamzatlOns, are
2002ARL-13

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 apphed In the audit of the general-purpose financial statements and In our OpiniOn, except for the effects of the matters referred to In the third paragraph, such information is fauly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole
A copy ofthiS report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24
--- ~.~ Respectfully submitted,
RWH'as 2002ARL-13

CALHOUN COUNTY BOARD OF EDUCAnON

CALHOUN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUp JUNE 30 2002

~ Co'" ond Cash E_ _
Inves'........
Accounts RllC8MIbIll
Inventones Food Donated Commod.... PLn:hased Food
Amount AVSlIabIe In Debt SeMce Fund
Amount to be ProVIded In Future Years For Payment of
Bond DeIlt Caprtal Lease Agreements

GENERAL FUND

GOVERNMENTAI. FUND TYPES

SPECIAL

CAPITAl.

REVENUE

PROJECTS

FUND

FUND

S

41124117 S

30007815

963727

S

14377084

51880049

8075298

4,199 05 1 431 08

T",",_

S

939,67893 S

388,46126 S

143,77064

LIABIUTIES AND FUND EgUITY
LIABILITIES
ClIsI'I 0ven::IrII1'I: Accoun" PoyabIe Salane.. Payable Expweo Crant Balances Payable Deferred Revenue CaprtoIl.ease Agreemon15 GenerIII Obl_ Bonds Poyablo
T",", LJIIbd_
FUND Eguln
Fund Balances ReseIVed For Bus Roplacemont Furdo For Debt ServlOlt For ExpIred Grant QalancalQlMSbOned Coats For Inventones Food Donated Comrnodrt>os Purchllsed Food For Purpose of Bond Issue Un<8S8fV8d Designated for $etfln8lnlnc:e Undeaognated Defiot
Total Fund Eq..-ty

S

S

354 332 11 S

7384349

47032919

64 489 64

937404

77,38034

25,81254 8715900

S

834 0315 34 S

215,71347 S

112971 54

S

89958 29

S
1068973 499557

4199 OS 1 431 08
S
165117 66

S

105,84359 S

17074779 S

30 799 10 30,799 10

Totall.Jab~ and Fund EqUity

S

939,67893 S

The notes to the general-purpoee ftnanaaJ statements are an Integral part 01 thIS statement.

2

386 46126 1

S

143 77064 1

EXHIBIT "A"

DEBT
SERVICE
FUND

s

31 75346

29292542

6298305

ACCOUNT GROUP GENERAL
LONGTERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

s

743 072 78 $

392134 46

448 333 33

438 732 35

662536 52

201,005 28

4 199 05 1 431 08

253763 1 399 49

s

387,66193

387661 93

38734220

682338 07 78,00162

682,338 07 78,00162

977 657 80 11351857

s

38766193 S

1 148 00162 $ 300557438 S 2,512,32778

S

2581254 S

29 904 17

515334 60

189,738 99

534 818 83

8301994

86,754 38

7037853

5223584

S

78001 62

7800162

11351857

1,07000000

1070,000 00

1 365,000 00

S

1,148 00162 S

2,310,72197 S

1883794 04

S

387661 93

S

387,661 93

S

8995829 S

6704064

387681 93

36734220

1839105

4199 05 1431 08 30 799 10

253763 1 399 49 127 '4' 89

1068973 17011323

10,68973 189595 61 175,594 50

S

694 852'" S

628,533 74

S

387,661 93 S

1,14800162 S

300557438 S

2,512,32778

3-

CALHOUN COUNTY BOARD Of EpUCATlON
COMBINED STATEMENT OF REVENUES EXPENDITURES ANP CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUNQ mES
YEAR ENoeD JUNE 30 2002

REV'ENUES
~Fund.
F-..J Flrods TIlX8ll ()Ihor Finds
Total Revenuea
EXPENPITURES
Current InstnlCbOn Suppor1 SeI'\'lCeS Pupol ServICes Improvernem of InstrucUonal ServIC8s EduC8bOn8l MedI8 5eMces General Admltllstraoon School AanlnlStrBbon BuSiness Adm1nlStrBbOn Molntenanolt _ Opend>on of Plant Studont Transportabon ServICes food SeMces Qoerabon Community SeMcea 0per8b0n1
Csprt81 Outlay Buldng and BuIdong Il1ll'rovemonts
DobtServoce Pnnopal Interest
Total E~res
Excess of Reven..... over (u'-j ~drtures
OTHER fiNANCING SOURCES (USES)
C a p I l a l l. . . . . Qper8tlng Transfers In Oporatulg Tran"",", Out
Total Other FlnllllClng Sources (Uses)
Excess of Revenues and Other FIl18t'ICIOg Sources over (under) Expendrtures and Other FlO800ng Uses
FUNQ BAlANCE JULY 1
Food Inventory No< ChBngo In Penod Donated Commodmes Purchased Food
FUNQ BALANCE JUNE 30

GENERAL FUND

SPECIAl. REVENUE
FUND

$ 4464 77524 $ 1224251
1,61345066 103,560 82

13762773 968,53377
18,980 98

$ 6194,029 23 $ 1,126,104246

$ 3805 84319 S
1504 237 38 03919104 135,8&4 89 338 012 26 81829993 82341 52 425,2104 .48 30796743
234 07

541 6Il4 84
20 812 38 7632855
28327.48 1878734
1,899 204 488,00761
1,045200

35 518 95 6,982049

S 8002 223 53 $ 1 157299 44

$

19UIOS 70 S

31 156 98

S

S

-6,67903

S

-6,87903 $

867903 6,87903

$

185 12687 S

-204 4n 95

-79048308

19353273

1,66142 31 59

$

105 643 59 $ _ _",17"0,,,7.;:4.:.7",79::..

The notes to the general-purposa ftnanoa! statements 8niiI an tntegr81 part 01 this statement 4

EXHIBIT "6"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAlS

(MernorendOOl Onty)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

s .. 802 402 97 S .. 205 413 21

980 n6 28

~,7692"

S

338 977 14

1950 427 80

1,995,n645

S

3 716 21

6,433 84

13369183

125,94233

S

371821 S

34341098 S 7.66729888 S 7273 901 23

s .. 347 528 03 S 385210105

17504976 17024789 135,6&189 364 33974
837,05727 82 341 52
42521448 309 888 67 468 24168
145200

160,84339 9730294 95,07821 271,28922 523764 93 84 862 93 531 547 59 41382289 429123 87
656 75

S

10005900

S

29500000

4S,09125

10005900
33051895 5507374

859883 01
n 274413
61,64442

S

100,05900 S

34309125 S 7,602,673 22 S 7,656,~97

S

96,34279 S

31973 S

64 625 66 S

-382,53374

S

110,619 70

S

8679 03

3,429 82

-6,67903

-3,429 82

S

000 S

110,87970

S

-96 342 79 S

31973 S

84 625 86 S

-271 854 04

127,14189

38734220

628,533 74

903458 15

1,66142 3159

'95814 -111223

s

30 799 10 S

387,66193 S

694 852 41 S _ _.::6"28",,,,53,,3:.7,,4:..

- 5-

CALHOUN COUNTY BOARD Of EPUCATION
COMBINED STATEMENT Of REVENUES EXPENPlTURES ANp CHANGES IN FUND BALANCES
BUDGET AND ACTUAL. lNON-GMP BASIS)
GENERAL AND SPECIAL REVENUE fUNpS
YEAR ENgED JUNE 30 2002

EXHIBIT C

REVENUES
State Fund:s federal funds Taxes Other funds
Total Revenues
EXPENDITURES
Currant Instrue:bOn
Support 5eMces PupdServlces IlitplO.8iii8lil of InstruetJonaI 5e1'VlCea EdueatJonalMedlll 5eMces GeneraJ AdmNatrabon School Adm"".tratlon BuSllleSS Admlnlllr8bOll
MaInten8nce end Operabon of Plant
Student TranoportBtlOn 5eMces Other Support 5eMceo Food ServIces Operot1On Communoty Servocea Operot1On.
CaprtaI 0utI0y Debt SorvIce
To<aJ Expendrtu....
Excess of Revenues over (under) Expenditures
OTHER fiNANCING SOURCES (USES)
Other~
OtherU...
To<aJ Other F"""""'ll Sources (U...)
Excess of Revenues and Other flnanang Sources over (under) Expenditures and Other FlnallClng U....
fUND BALANCE JULY 1 200 1
Adjustments Food Inventory Net Change In Penod
Donated Commocllhes Purd1ased Food

GENERAL FUND

BUDGET

ACTUAL

S 3883.384 00 S
1,585 5S4 53 22000 00
S 5490[91857 S

4484 775 24 12,24251
1813,450 88 103,560 82
8,194,029 23

S 3,262 15986 S
11948138 6100637 129 652 18 23779781 531 398 43 108 437 00 40891543 309 82855
6200 00
30,000 00
S 5202 874 99 S
S 288.00358 S

3805,84319
15423738 93919 14 '3568469 338 012 26 81826993 82 3041 52 42~ 214 48 30796743
2304 07
42,499 44
6,002,22353
19180570

S

<; 679 03

S

-867903

S 288.00358 S -9188307 ~51 89

185126 87 -7948308

FUND BALANCE JUNE 30 2002

S 195 708 62 S _ _.::'05::;:.:,643::;:;.; .5:.;9:.

SPECIAl REVENUE FUND

BUDGET

ACTUAL

S 13917242 S 13762773

91992200

968.533n

19700 00

19,980 96

S 1 078794 42 S 1126,14246

S 468 184 45 S 54188484

9120819 28753 51 66 14900 58 57100 1853200

2081238 7632855
2fl 327 48 1878734

428700 00

1,89924
468 007 61 145200

S 116109815 S 1,157.29944 S -82.30373 S -31,15698

S

6,67903

S

6,67903

S -82 303 73 S -24477 95

30519239

193,53273

-46 150 40

1,66142 3159

S 176 73fl 26 S 170747 79

The notes 10 the genenill-purpose financtal statements are an Integral part of this sta1ement
-7-

CALHOUN COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Calhoun County Board of Education (School Distnct) was established under the laws of the State of Georgia and operates under the gUidance of a school board elected by the voters and a Superintendent appointed 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 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 dcvlce 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 arc 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 Dlstnct. To conform to generally accepted accounting pnnciples. 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 Dlslnct, in compliance WIth generally accepted accounting principles applicable to governmentaJ uruts, unless otherwlsc disclosed in these notes Funds and the account group presented in thiS report are as follows.
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School Dlstnct's educatIOnal activItIes Governmental Fund Types Include.
GENERAL FUND - the fund used to account for all finanCial resources of the School Distnct cxcept those requIred to be accounted for In another fund. These transactions relatc to resources obtained and used for services proVIded by a board of education.

-8-

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capItal projects) that are legally restncted to expenditures for specified purposes These funds are received pnmarily 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 pnncipal, interest and paYing agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgatIon debt outstanding and capital lease obligations
BASIS OF ACCOUNTING
The accounting and finanCial reporting treatment applied to a fund is determined by its measurement focus All governmental funds arc 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 aVaJlable 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 finaneed from available spendable resources, are reported In the General Long-Term Debt Account Group
Governmental funds are accounted for using the modified accrual basis of accounting under which
Revenues are recogmzed when susceptIble to accrual (I.e., when they become both measurable and available) "Measurable" means the amount of the transactIon can be determined and "avaIlable" means collectIble WIthin the current period or soon enough thereafter to be used to pay liabilities of the current period The School DIstrIct conSiders receivables collected within sixty days after yearend to be available Property taxes, sales taxes and interest are considered to be susceptible to accrual Nonexchange transactIOns, in which the School Distnct gives (or receives) value WIthout directly receiVing (or gIving) equal value In exchange. Includc property taxes, local optIOn sales taxes, intergovernmental grants and donations Revenue for property taxes is recogmzed In the fiscal year for whIch the taxes are leVied Revenue from sales taxes IS recogmzed 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-

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund lIability IS Incurred.
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salanes and fringe benefits earned by employees through June 30, 2002. (even though pwd In July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the sunilar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as t1us Information was not readily available.
The net effect of the above accounting treatment resulted In the accompanYing finanCial statements reflecting fourteen months of expenditures for a majonty of General Fund salanes and fnnge benefits and the related revenue due fTom the State to fund these contracts 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
BUDGET
The Calhoun 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 goverrunental 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 goverrunental funds was prepared on a basiS other than generally accepted accounting pnnclples
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 m a newspaper of general clTculatlOn in the locaJity. 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 mcrease 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 onglnal matuntles of three months or less from the date of acqwSltlon m authonzed finanCial mstltutions 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

- 10 -

CALHOUN COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School Dlstnct in nonpartlclpatmg mterest-earmng contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Partlclpatmg mterest-eammg contracts and money market mvestments WIth a matunty at purchase ofone year or less are reported at amortized cost Both partlclpatmg mterest-eammg contracts and money market mvestments with a matunty at purchase greater than one year are reported at fair value The OffiCial Code of Georgia Annotated Secllon 36-83-4 authorizes the School Dlstnct to invest its funds and m selectmg among opllons for mvestment or among inslltuttonal bids for depoSits, the highest rate of return shall be the objective, given equivalent condillons of safety and liqUidity Funds may be mvested m the following:
(I) Obhgatlons 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) ObhgatlOns of any corporation of the United States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia. Office of Treasury and Fiscal Services,
(7) Repurchase agreements. and
(8) Obhgallons of other pohttcal subdiVIsions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal. State or other grants for expenditures made but not reimbursed and other receIvables diselosed from mformatlOn available Receivables are recorded when either the asset or revenue recognitIOn critena 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 uncollecttble receivables.

- II -

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Calhoun County Board of Commissioners fixed the property tax levy for the 200 1 tax dIgest year (calendar year) on October 19,2001 (levy date) Taxes were due on December 3 1,2001 (lien date) Taxes collected WIthin the current fiscal year or WIthin 60 days after year-end on the 200 I tax digest are reported as revenue m fiscal year 2002. The Calhoun County Tax CommissIOner biil~ and collects the property taxes for the School DIStnct, WIthholds 2.5% oftaxes collected as a fee for tax collectIOn and remits the balance of taxes collected to the School Distnct. Property tax revenues during the fiscal year ended June 30, 2002 for mamtenance and operations amounted to $1,593,411.47

The tax mIllage rate levied for the 2001 tax year (calendar year) for the Calhoun County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value)'

School OperatIOns

~mills

SALES TAXES

SpeCial Purpose Local OptIOn Sales Tax revenue during the year amounted to $336,977 14 and is to be used for capItal outlay for educatIOnal purposes or debt servIce. ThIs sales tax was authonzed by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

FOOD INVENTORIES Inventories 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-m, first-out) Donated food commodities are recorded as revenues and expenditures at the time commodity Items are receIved Purchased foods mventones are recorded as expenditures at the time of purchase The mventones 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 obhgatlOn bonds to proVIde funds for the acqU1~ltion and constructIon ofmaJor capital facihtles Bond premiums and discounts, as well as Issuance costs., are recogmzed m 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 outstandmg amount of these bonds is recorded m the General Long-Tenn Debt Account Group.

- 12 -

CALHOUN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
Thc 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 recordcd as expenditures In the reimbursIng fund and as reductIOns of expenditures in the fund that IS reimbursed.
Operating transfers are recorded for all interfund transactions and 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 presenl financial posItion or results of operations in confonmty with generally accepted accountIng pnnclples NeIther are such data comparable to a consohdation. Interfund elIminatIOns have nol been made In the aggregation of this data
Note 2' DEPOSITS AND INVESTMENTS
COLLATERALIZAnON OF DEPOSITS OffiCial Code of Georgia Annotated (OCGA) SectIon 45-8-12 provides that there shall nol be on deposit at any lime in any deposllory for a time longer than ten days a sum of money which has nol been secured by surety bond, by guarantee of insurance, or by collateral The aggregate ofthe face value of such surety bond and thc market value of secuntles pledged shall be equal to nOlless 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 I) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpublIc funds shall be not less than 110 percent ofthe daIly pool balance OCGA Section 45-8-II(b) proVides an officer holding public funds may, in his dIscretion, waive the requIrement for secunty In the case of operating funds placed in demand deposit checkmg accounts
Acceptable security for depoSits COnsiStS of anyone of or any combInation of the following
(I) Surely bond signed by a surety company duly qualified and authorized to transact business Within the State of Georgia,
(2) Insurance on accounts provided by the Federal DepoSit Insurance CorporatIOn,
(3) Bonds. bills, notes, certificates of Indebtcdncss or other dIrect oblIgations of the Untted States or of the State of Georgia,

- 13 -

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS AND INVESTMENTS

(4) Bonds, bills, notes, certificates of mdebtedness or other obligations of the counties or munlclpahties of the State of GeorgIa,

(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, provldmg that the statute that created the authonty authonzed the use of the bonds for this purpose,

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

(7) Bonds, bIlls, notes, certificates of mdebtedness, or other oblIgations of a subSidiary corporation of the United States government, which are fully guaranteed by the Umted States government both as to pnncipal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intennediate Credit Bank, the Central Bank for Cooperatives, the Farm CredIt Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage AssocIation

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $1 ,077,219 15 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 ynth securities held by the School DIstrict or by the School Distnct'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 10 the School District's name
Category 3 - Uncollaterallzed depOSits (This mcludes any bank balance that IS collateralIzed with securities held by the pledging finanCial institution, or by Its trust department or agent but not 10 the School Distnct's name)

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

Risk Category

Bank Balance

$ 124,72819

2

000

3

952,490.96

Total

$ 1.0n219.15

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $436,69606 which IS rnatenally the same as fair value. This investment consisted entirely offunds invested in the Local Government Investment Pool admmistered by the State ofGeorgia, Office ofTreasury and

- 14 -

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE: FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS AND INVESTMENTS
Fiscal Services which are not reqUired to be categonzed since the School Dlstnct did not own any ~pecIfic Identifiable secuntJes In the pool. The Investment pohcy of the State of Georgia. Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary LiqUidity Portfoho) does not proVide for Investment In denvallves or Similar Investments. A descnption ofthe Pnmary LlqUldlly Portfolio IS as follows
The Pnmary LiqUidity Portfoho COnsiSts of Georgia Fund I, which IS a combinatIOn local and state government Investment pool, and Fund 6 Georgia Fund I is a stable net asset value mvestment pool which follows Standard and Poor's cnteria 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 marmcr consistent With Rule 2a-7 ofthe Investment Company Act of 1940 and IS conSidered to be a Rule 2a7 like pool The pool's pnmary objectives are safety of caPital, investment income, hquldlly and dlven.lficatlOn while malntaHung pnncipaJ ($1 00 per share vaJue). Net asset vaJue is caJculated 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 c<c>h eqUivalents and Investments are reported at cost which approximates fair value The pool does noll~\ue any legally binding guarantees to support the vaJue of the shares Participation In the pool IS voluntary and deposlls consist of funds from locaJ governments, operating and trust fund~ of Georgia's state agencies, colleges and universllIes, and current operatmg funds of the State of Georgia's General Fund
Investments In Georgia Fund I and Fund 6 are directed toward short-term Instruments such as U S Treasury obligations. secunlIes Issued or guaranteed as to principaJ and mterest by the U S. Government or any of Its agencies or Instrumentalities, banker's acceptances and repurcha~ agreements The weighted average maturity of Georgia Fund I may not exceed 60 days The wClghted average matunty for Georgia Fund I on June 30, 2002. was 0 12 years The average Investment duratIOn for Fund 6 on June 30, 2002, was 0 75 years
Note 3 NON-MONETARY TRANSACTIONS
1 he School Dlstnct receives food commodities from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs. These commodllies are recorded at their Federally asSigned value See Note I - Inventories
Note 4 RISK MANAGEMENT
Thc School Dlstnct IS exposed to vanous nsks of loss related to torts, theft of. damage to, and destructIOn of assets: errors or omiSSions, Job related Illne~s or InJunes to employees; acts of God and unemployment compensation

- 15 -

CALHOUN COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 4' RISK MANAGEMENT

The School District has obtained commercial insurance for risk of loss asSOCiated with torts and assets 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 ofthe past three years.

The School District has elected to self-msure for all losses related to acts of God In addlnon. the School District has elected to self-insure for errors or omissions, which mcludes, among other risks. nsks for sexual harassment and dlscnmmatlOn The School District has not expenenced any losses related to these riSks m the past three years.

The School District is self-insured with regard to unemployment compensanon clwms A premium
IS charged when needed by the General Fund to each user fund on the basis ofthe percentagc ofthat
fund's payroll to total payroll in order to (',ver estimated claims budgeted by management based on
known claims and prior experience. 11\~ S,hool District accounts for claims WIth expenditure and hability bemg reported when it is proba~~ . that a loss has occurred, and the amount of that loss can be reasonably estimated

Changes in the unemployment cornpensat;"l! c1wms liability during the last two fiscal years are as follows.

Beginning of Year Llablhty

Claims and Changes In EstImates

ClaIms PaId

End of Year Liablhty

2001 2002

$

000 $

10150 $

101 50 $

000

$

000 $

1.746 15 $

1.746.15 $

000

The School Distnct partICipates III the Georgia Education Workers' Compensation Trust, a public entity nsk pool orgamzed on December 1, 199 I, to develop, implement and admimster a program of workers' compensation self-insurance for its member organizations. The School District 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 Umted States Fidehty and Guaranty Company to proVide coverage for potential losses sustained by the Trust m excess of $350,000 00 loss per occurrence, up to $2,000,000.00

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

PoslllOn Covered

Amount

Superintendent Each Principal

$ 50,000.00 $ 10,000.00

- 16 -

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

CAPnAL LEASES The Calhoun County Board of Education has entered into VariOUS lease agreements as lessee for school buses. These lease agreements qualify as capital leases for accounting purposcs and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception

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

Purpose

Interest Rate

Amount

General Government - Series 1999

395%

$ I 070.000.00

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

Capital Leases

General Obligation
Bonds

Total

Balance July I. 200 I

$ 126,05627 $ 1,365,000 00 $ 1,491,05627

Retroactive Restatement of Prior Year Balances

-12.537.70

-12.53770

Balance July I, 200 I Restated

$ 113,5 18.57 $ 1,365,000 00 $ 1,478,51857

Deductions Debt Retired

35,51695

295.000.00

330,516.95

Balance June 30, 2002

$ 78.001.62 $.1.070.000 00 $ \,148.001.62

At June 30, 2002. payments due by fiscal year which Includes prinCIpal and Interest for these Items are as follows

- 17 -

CALHOUN COUNTY BOARD OF EOUCAnON

EXHIBIT "0"

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

$ 42,49944 $ 360,846,25 $ 403,34569

22,13594

377,416.25

399,552,19

22.135,94

397,702.50

419,83844

Total Principal and Interest $ 86,771 32 $ I.! 35,965,00 U.222,736.32

Deduct' Imputed Interest

8,76970

Net Present Value of Future Minimum Lease Payments $ 78.001,62

Note 6 SHORT-TERM DEBT

The School Distnct obtams temporary loans m advance of property tax collectIOns, depositing the proceeds m its General Fund ThIs short-term debt IS to provide cash for operations until property tax collectIons are received by the School District Article IX, SectIOn V, Paragraph V of the Constitution of the State of GeorgIa limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the precedmg year and requires all short-term debt to be repaId no later than December 31 of the calendar year m which the debt was mcurred.

Temporary Loans

Begmnmg Balance

AddItIons

Payments

Endmg Balance

$,

oll,.o.o $ 180 050 OQ $ 18Q.050,o.o. $_ 000

Note 7 ON-BEHALF PAYMENTS

The School Distnct has recognized revenues and expenditures m the amount of $76,250.80 for health insurance and retirement contributions pald on the School District'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$67,710 80

Office of Trcasury and FIscal Services PaId to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $8,540,00

- 18 -

CALHOUN COUNTY BOARD OF EDUCATION

EXHIBIT no"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 8. CONTINGENT LIABILITIES

Amounts received or receivable pnnclpally from the Federal government are subject to audit and review by grantor agencies. This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant tenns. The School Dlstnct beheves that such disallowances, If any, WIll be Immatenal to ItS overall financIal position

Note 9: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, admmistrative and clerical personnel employed by local school distncts 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, dIsablhty retirement and survivors benefits for Its members m 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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School Distnct who are covered by TRS are reqwred by State statute to contnbute 5% of their gross earmngs 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 mdependent actuary The reqUired employer contnbutlOn rate is 9.24% and employer contnbutlOns for the current fiscal year and the precedmg two fiscal years are as follows

Fiscal Year

Percentage Contnbuted

ReqUired Contnbution

2002 2001 2000

100% 100% 100%

$ 311,38960 $ 370,383 51 $ 379,481 90

- 19 -

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

ASSETS Cash and Cash EqUIValents Accounts Receivable Inventones
Food Donated Commodrtles Purchased Food
T0\81 Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

190,44379 $

23,17880

10,730 29

4,199 05 1,431 08

$

196,073 92 $~_;:;33~,909=.:::09;:.

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable ExpIred Grent Balances Payable Deferred Revenue
Total L1abllnies
FUND EQUITY
Fund Balances Reserved For Inventones Food Donated Commodrtl8s Purchased Food Unreserved Undeslgnated
Total Fund EqUity

$

8,91902 $

14,14955

16.40711

8,38875

11,37079

$

25,32613 $

33,909 09

$

4,199 05

1,431 08

165.11766 $

000

$

170,74779 $

000

Total Llablhbes and Fund EquJly

$

See notes to the genera~purpose finenclal statements - 20-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

86,45556 $

300,07815 $

362,526 23

70,022 69

80,75298

84,834 22

4,199 05 1,431 08

2,53763 1,39949

$

156,47825 $

386,461 26 $~=4=5:,;,1:;;,29~7~5~7~

$

50,77492 $

73,84349 $

72,130 53

39,69378

84,48984

63,01994

86,009 55

77,38034

70,37853

52,23584

$

156,47825 $

215,71347 $

257,764 84

$

4,19905 $

2,53763

1,431 08

1,39949

$

--"-0",00,--

165,117 66

189,59561

$

000 $

170,74779 $ _ _1,-,9",3""5,,,3200..:.:73,--

$

156,47825 $

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Tolal Revenues
EXPENDITURES
Current Instrucbon Support ServiceS Pup" Services Improvement of Instrue\lonal SaMces General Admm,strallon
SchoolAdnrnn~trabon
Studen1 Transportation SeMC88 Food Services Operation Communrty SeMces OperatJons
Tolal Expenditures
Excess of Revenuas over (under) ExpendKures
OTHER FINANCING SOURCES
Opera1lng Transfers In
Excess of Revenues and other Financmg Sources over (under) ExpenddlD'eS
FUND BALANCE JULY 1
Food Inven10ry - Net Change m Penod Donated Commodo\Jas Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

29,784 00 $

393,784 70

19,980 96

$

443,52966 $

107,84373 107,84373

$

93,81698

12,833 97 4,19288

$

468,00761

$

468,007 61 $

$

-24,477 95 $

110,84383 -3,000 10

$

-24,477 95 $

193,53273

1,66142 3159

3,000 10
000 000

FUND BALANCE JUNE 3Q

$

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

EXHIBIT"F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

137,62773 $

131,58758

$

574,76907

968,53377

911,61924

19,98096

21,60302

$

574,76907 $ 1,126,14246 $ 1,064,609 B4

$

447,86786 $

541,684 B4 $

563,266 90

7,97841 72,13567 28,32748 18,78734
1,89924
1,45200

20,81238 76,32855 28,32748 18,78734
1,899 24 468,00761
1,45200

51,396 97 20,811 70
5618 17,854 68
1,699 13 427,066 45
656 75

$

578,44800 $ 1,157,299 44 $ 1,082,808 76

$

-3,67893 $

-31,156 98 $

-17,99892

3,67893

6,67903

3,429 82

$

000 $

-24,477 95 $

-14,56910

000

193,53273

211,172 20

1,66142 3159

-1,958 14 -1,11223

$

000 $

170,74779 $ _ _10,;9;;;;3,53;;;:2:;.:,;73;;,.

- 23-

CALHOUN COUNTY BOARD OF EOUCATION
SCHEDULE OF EXPENDITURES OF FEpERAl AWARPS
YEAR ENpED JUNE 30 2002

SCHEOULE 1

FUN01NG AGENCY pROGBAMJGBANT

Agna.twre U S Department of Child NublbOn Cluster
Pass--Through From Georwa Departmellt of Education
Food lWld Nutntion Program
Food Services
Sc:hooI Breakfast Progl'lilm NIItJOnBI School Lunch Program

Total Child Nutntlon ClU5ter

Other Programs P....Through From Georgla Deparlin"nt 01 EdUC8tlOl'l Food and NutntlOI1 Program Food OIstnbubor1 Progrom (1)

TlllIIl U S Oepeib'Olnt of AgnaJltllre

EdUC8tlOl'l, U S Department of Speaal Educ:abOI'I Cluster
Pass-Through From Georgia llepartmont of EOOC8bon 1 _WIth OIsabo"_ Education Ad Part B Speasl EdUCllllOl1
Flow Through Preschool C8pacrty Buoldmg Improvemam

Total Speoal EdUCllbOl'l Cluster

Other Programs Pass-Through From Georg.. Department of Education
Elemenlary and Secondary EOOcabon Ad Tille I AccoL<rtabollty Grants Grants to Local E _ Agencrao Tille II E, _ _ anal OeveIopmenl

Title VI

InnovatIVe EdueabOn Program Strategies

Class &ze Reducbon

Goals 200ll Stale and Local EducabOn Symmc \mpMlmenI GranlS
Vocational Education - Baslc Grants to States

H'llh School Program

BaSIC Grant P.....Ttwough From _

Georgia Rag""" EducabOl'IaJ

Servlce Agency S8Ie and Drug-Free SChoo/S and COl'IV'>.J,"_

Tota' U S Department of Education
Labor U 5 Department 01 Pau-Through From GeorgIa Department 01 Labor Workforce Investment Ad. 172001YE7l'-084

CFOA NUMBER
10553 10555
10550
84 027 84 173 84 027
84 348 84 010 84 281 84298 84 340 84 276 84048 84186
17259

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENOlTURES IN PERIOD

NlA

$ 97104 03

NlA

272 845 80 $

$ 36994983 $

(2) 444,19274 (3)
444 192 74

NlA

2381487

$ 393,784 70 $

23,81487 488,00781

NlA

$ 56 514 35 $

NlA

1 182 24

NlA

1,51912

$ 5921571 $

56 514 35 1 18224 1,51912
5921571

NlA

66 237 89

KIA

291,81978

NlA

4,344 21

NlA

7,70983

NlA

36,164 47

NlA

72.235 84

NlA

21 354 21

NJA

1224251

$ 573,12" 45 $

66 237 89 29181978
434421 772482 (3) 36,164 47 7589978 (3)
21 354 21
12[242 ~1 576,80336

NlA

$ 1388713 $

13,88713

Total Federal Flnanaal AUlstance
NlA = Not Avatlabkt

24

$ 980.77628 $

',05869812

CALHOUN COUNTY BOARD OF EDUCATION SCHEDULE Of EXPENDlllJRFS OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "t"

Notes to tho SchedUle of Expendr1ures gf Federal Award!

(1) The amoLllts shown tor the Food Dlstnbubon Program represent& the Federally aSSIgned value of nonmonetarY

8SSlstBnce ror d.on8tad COtlU11lCX.kbes receNed and/or consumed bV the system dunng the OJrrent fiscal year

(2) Expendllun!s for tho School _

Program were not mamtamed separalely and are Included In the 2002

NatJOnai SchoolLISICh program

(3) Expend...... for this program Include S - and/or Other Funds

E.xpendlbJres are not mamtalned by fund &ClOr"CfI

MaJor Programs are ldenbfied by an astensk (1 In front of the CFDA number

The School Dlstnd did not provide Federal AssIstance to liIoy Sutlreaptenl

!he liIccompall'flllQ schedule of expendrtures of Federal awards Indudes the Federal grant acbvrty of the Calhoun County Board 01 EducabOn and IS presented on the IT'lOdJl'Ied accrual basis of accounbng which IS the basls of accoUnting used In the presentation of the general-purpose finanCIal statements

See notes to the gener81-pu1'lJOBl' finanaal &tatemenIs

- 25-

CAlHOUN COUNTY BOARD Of EDUCATION
SCHEDULE OF STATE REyENUE YEAR ENDED JUNE 30 2002

SCHEDULE ",

AGENCYJEUNplNG

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUr

FUND

FUND

GRANTS
CorTvnumty Afla.. Georg", Department 01 local AssIstance Grants

s

3000000

EducatIOn GeorllLa Department 01 QUality BaSK: EducaDOr1
Direct InstructJonal Cost K"'dergarton Program K<ndergarten Program - Early 1 _Program Pn"""l' GradeS (1-3) Program Pnmary Grlldes - Earty Interve.-. (1-3) Program Upper Elementary GradeS (4-5) Program Upper Elementary GradeS (4-5) Program - Earty 1 _ Program Middle Grades (6-8) Program
H,11' School General Education (9-12) Program
VOC8bonaI I..aboratory (9-12) Program Students with DlsabilrtJes
Category I category II Call1gory III Category IV
Gofted Student Category VI RemodJal EducabOn Program AItematJve Edueabon Program Mod", Center Program SlafI and pro!es5IOn8J De>eIopment Indued Cost T-ny Days AddlbOnallnstruebOn
Categoncal Grants Pupl Transportatlon Regular Bus RepIacernet1t
Sparsrty
Nursmg ServIces Pnnopal Supplements Vocattonal SUpervisors Educabon EqualtZ8bOn Funding Grant Food8eMces VocabOnal E<1JcatJon
~ Adjustment HoId-HarmIess
Deferred Sunmer SlIilanes (Current Year) Other State Programs
Health Insurance K-3 Statewide Readlng Program 4-8 StaIew1de After SChool Reading Program PresdlooI Handicapped Program Lottery Program Computers In the Classroom

13585900 12412500 2402&4 00 42842800 220 141 00
61 711 00 351 301900 31584700 10258200
1215200 17829400 173 653 00
3190100 40 516 00 1912300 29 30100 72 on 00 1290700 587596 00 2199700
158 990 00 48 38100 243 964 00 33,188 00
3141 00 4,15500 89,509 00
S 66 972 46 35,91900 433,236 00
67710 eo 3690 80 659357
3587100

29 784 00 26 205 29

E_ Office of School Raadl08SS Pr&-Konde_ Program
Office of Treasury and FISCal Services

PubOc SChool

Reb"",,",,'

854000

81638 44

TOTAL
3000000
135 859 00 124125 00 240284 00 42842800 220"'00
61 711 00 351 301900 31584700 10258200
1215200 17629400 17365300
31 901 00 4051600 19123 00 29 30100 720noo 1290700 587596 00 21 99700
158 990 00 48 38' 00 24396400 33188 00
314100 415500 89509 00 29 784 00 66,97246 35,91900 433 236 00
67,71080 3,690 80 659357
3587100
26 205 29
8'638 44
854000

- 26-

CALHOUN COUNTY BOARD OF EpUCATlON
SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCYIFUNplNG
CONTRACT Edueatlon Georgla Department of MLddIe School/Mer S<:hool Program

GOVERNMENTAL FUND TYPES

SPECIAl

GENERAL

REVENUE

FUND

FUND

TOTAL

S _ _",37",,0,,-7,,-0,,-6',-

S _ _",37",,0,,-7,,-0,,-61,-

S 4,'-&4,77524 $

13762773 S 4602,40297

See notes to the general-purpose finanCIal statements

- 27 -

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

SCHEDULE "3"

PROJECT

ORIGiNAl ESTIMATEO
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

The acquISItIon construe:bOn

and equiPPing of mochfic:abOnS, extenSions

renovabons and repel'S to the fadllbe:S and equlpmenl 01 the calOOun County MllIdIeIHlgh SChool, lncIud'ng but not _ to the cafetena

gymnaSIum and athletic faclrtJes the oc:qus_ construcbon and aqulPll!ng of mochflcatlons ext8llSlOflS renovatkJns, and

rep811S to the fadlmes and eqwpment of the calhoun County Elementary School, Includ"", but not limited to the tunchroom gynulBSlum

and athletic facahtJes and acqUlnng construebng and equipping and adding to

renovating repaJnng, lTnPf'OVIng and equIPPIng

mstrudlonal and support fadllbes 8X1SbnQ

!td'lcd b\.1I'dn"iQ'&, and other bulkHngs and

a n y _ faaYUes useful Of desb'Bbie In connection

_

and ocqulflng

properly _ , belCh rool and peroonal, and

ocqul~ng any nocosaary or dosIrabie rights In connedJon ther8wtth

$ 2000,000 00 $ 2000 000 00 $

100 059 00 $ 1,54419738

Ongoong

(1) The SdlooI D1stnet's onglnal cost estimate as speafied In the resoIubon callng for the Impoattlon of the local Option Solos Tox
(2) Tho School DlStncrS current estlmo1ll oIlDtol cosl tor the PRllOd Includes all cost from prOj8d Incepbon to a>mplobon
(3) The voters 01 calhoun County approvod the ImposrtIon of a 1% solos tax to fund tIlo above prOf8d and retire IlSSOCIIIIed detJl Amounts axpondod tor theso projects may Include ..... tax proceeds slota Iocol propeny taxes and/or other funds over the life of the prqect
(4) In addition to the expendJtures &hown above, the SChool D'stnel has ,ncurred 'ntenlsl to prtMda advance fund,ng tor the above projOd os _

pOQ( Years

$ 121 75875

Current Year Tolal

48,09125 $ 18985000

Sea notes to tho gonera1-purpose manclot _ I s

- 29-

CALHOUN COUNTY BOARD OF EDUCATION
GENERAL FUND - aUALITY BAS'C EDUCATION PROGRAM laBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDER JUNE 30 2002

SCHEDULE '4

DESCRIPTION
CITed InstrudJonal Programs KlI'ldergarten Program Kindergarten Program-Earty Intervention Program PrImary GI1Ide& (1-3) Program Pnmary Gradaa-earty InterventlOll (1-3) Prog",," Upper Elemantary Grade. (4-5) Program lJppef Elomentary Grades-Early Intervention (4-5) Program Middle Gradaa (6-8) Program High ScI1001 Ganora! Education (9-12) Program Vocabonallaboratory (9-12) Program Students with DlsabililJaa Cologary I C8tegory II Category III Gifted Student - category VI Ramedlal Education Program Ahemabve EducatIOn Program
TQTAl DIRECT INSTRUCTIONAl PROGRAMS
Mad.. Contar Program Staff and ProfeSilonal Development

AlLOTMENTS FRQM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGiBlE aBE PROGRAM COSTS

SAlARIES

OPERATIONS

TOTAl

S

157.504700 S 160.530 12 S 10,663 84 S 171.193 96

143 !loW 00

145 304Il 82

1.61344

14696026

27884200

44266862

9.768 34

452 638 96

496 620 00

350.74605

1.55206

352.298 11

255.263 00

34984587

9.90149

359.84716

71 562 00 407.438 00 386 267 00 11895800 456 897 00
46 963 00 22.17600 33 979 00

55.41606 484 215 39 491.53114 203.32830
1088il92 375826 84 193.896 27 52 099 89 3584811 3968711

33,503 68 2753938 21,44528
10,11328 11.84446
33900 44300

55 41606 467.71907 51907050 224.n358
10.88il92 385.84020 205,84075
52.09989 38.18711 4011011

S

2.856.490 00 S 3381.653 41 S 138.52723 S 3.500.180 84

63 583 00 14,96700

98,226 68 19._14

28.59793 10.663.27

126 824 81 30 14141

TOTAL aBE FORMULA FUNDS

s

2.955.04000 S 3479._ 43 S 1n 768 43 S 365715286

(1) Compnsad of Stata Funds plus Local Five MHI Share

see notes to the general-purpose financial statarnents

- 30-

CALHOUN COUNTY BOARD OF EDUCATION GENERAL FUND" aUALITY BASIC EDUCATION PROGRAM (aBEl
ALLOTMENTS AND EXPENDITURES" BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

Calhoun County Elementary School Calhoun County Mtddiell-ligh School Central Office (AitemalNe Educallon Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Min Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

1,493,453 00 $

1,751,78128

1,329,058 00

1,748,399 36

33,97900

s

2,856,490 00 S =-=3=,5!lO~,1~80=64.;.

See notes to the general-purpose finanCIal statements " 31 "

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

{(J~~FI I W. HI:o. TON
STATE mOITon
(4,lol.j n."(j 21;01

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.,hmgton ~Ircel S W SUIlC 214 AII.nt. Georgia 30334l!40(J
May 22. 2003

I lonorable Sonny Perdue. Governor Members of the General A~sembly Membe~ of the State Board of EducatIOn
and Supenntendent and Members of the Calhoun County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT 01- FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE WI I H GOVERNMENT AUDI1ING S rANDARDS
Ladle~ and Gentlemen'
We have audited the financial statcmcnts of Calhoun County Board of Educahon as of and for the year ended June 30. 2002, and have Issued our report thereon dated May 22. 2003 This report was quallficd for various departures from generally accepted accounting princIples. a~ Idcntlfied In the auditor's report on the general-purpose financial statements Wc conducted our audIt In accordancc With auditing standard~ generally accepted In the United States of Amenca and the standard~ applIcable to financial audlt~ contained In Government Audlllng Standards, Issued by the Comptroller General of the United State~
ComplIance
A~ part of obtammg reasonable assurance about whether Calhoun County Board of EducatIOn's financial statements are frec of matcnal misstatement. we performed tests of ItS complIance With certam proVISIOns of laws. regulatlon~. contracts and grants. noncomplIance With which could have a direct and matenal elTt:ct on thc dclt:rmmallon of finanCial statemcnt amounts Howcver. provldmg an Opinion on complIance with thosc proVISIOns \\as not an objective of our audit. and accordingly. wc do not express such an opmIOn The results of our tests dIsclosed no Instances of noncomplIance that are required to be reported under Government Auditing Standards
Intcrnal Control Over Financial Reportmg
In plannmg and performmg our audit. we consldcred Calhoun County Board of Education's Internal wntrol over finanCIal reportmg m ordcr to determme our audltmg procedurcs for the purpo~c of cxprcssing our opmlon on thc financial statements and not to proVIde assurance on the Internal
2002YB-40

control over financIal reporting. However, we noted certaIn matters Involving the Internal control over financial reporting and Its operatIOn that we consider to be reportable condltlons 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 Calhoun County Board of Education's ability to record. process, swnrnanze and report financial data consistent With assertIOns of management In the financial statements. Reportable conditions are descnbed In the accompanyIng Schedule ofFInding~ and QuestIoned Costs as Items FS-6191-02-01 and FS-6191-02-02
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 the nsk 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 thelT 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. accordIngly, would not necessanly disclose all reportable condItIOns that are also considered to be matenal weaknesses However, all ofthe reportable conditIOns descnbed above are conSidered to be matenal weaknesses
ThiS report IS Intended solely for the InformatIon and use of the management, members of the Calhoun County Board of Education, Federal awardIng agencies and pass-through entities and IS not Intended to be and should not be used by anyone other than these specified panies
Respectfully submitted,
~.~~
Ru II W HInton State Auditor
RWHas 2002YB-40

{"'SEII W. III'iTON
STATl:: AUDITOR
(4()4) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.lShmgton Street. ~ W ~ulte 214 Atldnw. Geurgld 30114-Il4lXl
May 22. 2003

Honorable Sonny Perdue. Governor Membcrs of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Calhoun County Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33
Ladles and Gentlemen
Comphance
Wc have audIted the comphance of Calhoun County Board of Education with thc types of compliancc reqUIrements descnbed in the US Office ofManagement and Budget (OMB) CIrcular A-I33 Compliance Supplement that are apphcable to each of Its major Fcderal programs for the year endcd June 30, 2002. Calhoun County Board of EducatIOn's major Fedcral program IS Identified 10 the Summary of AudItor's Results Section of the accompanymg Schedule of Fmdmg~ and Questioned Cosb Comphance with the requlremcnts of laws, regulatIOns. contracts and grants apphcable to Its major Federal program IS the responslbthty ofCalhoun County Board ofEducatlon'~ management. Our responslblhty IS to express'an opmlOn on Calhoun County Board of EducatIOn's comphance based on our audit
We conducted our audit of compliance 10 accordance With audltmg standards generally accepted m thc United States of Amenca, thc standards applicable to finanCial audits contamed m Government Audltmg Standards. Issued by the Comptroller General of the Umted Statcs, and OMB Circular A133. Audlt\ (!( States, Local Governments. and Non-Profit OrgamzatlOns Those standards and OMB Circular A-I33 reqUIre that wc plan and perform the audIt to obtam reasonable a%urance about whethcr noncomphance WIth the types ofcomphance reqUlremcnts referred to abovc that could have a direct and matenal effect on a major Fedcral program occurred An audit mcludes exammmg. on a test basIS. eVidence about the Calhoun County Board of EducatIOn's comphance with those reqUIrements and performmg such other procedures ~ we considered neceSl>8r)' m the ClrcUJnstanceS. We beheve that our audit proVIdes a reasonable basis for our opimon Our audit does not proVIde a legal determmatlOn on Calhoun County Board of Education's compliance with those requirements.
2002SA-30

In our OpiniOn, the Calhoun County Board of EducatIOn complied. mall matenal respect~. wIth the reqUirements rcfcrrcd to above that are applicable to Its major federal program for thc ycar ended June 30. 2002
Internal Control Over Compliance
"I hc management of Calhoun County Board of EducatIOn I~ responslbh: for establIshmg and mamtammg effective mternal control over compliance with reqUirernent~ of laws, regulatIOns. contracts and grants applicable to Federal programs In plannmg and performmg our audit, we conSidered Calhoun County Board ofEducatIOn's mternal control over compliance WIth reqUirements that could havc a dIrect and matenal effect on a major Federal program m order to detcrmme our audltmg procedures for the purpose of expressing our opmlon on compliance and to test and report on mternal control over compliance m accordance WIth OMB CIrcular A-133
We noted certain matters Involvmg the mternal control over compliance and Its operation that we conSider to be reportable conditIOns Reportablc conditions mvolve matters coming to our attentIOn rclatlng to Significant defiCienCies m the deSign or operation of the mternal control over compllancc that. m our Judgment. could adversely affect the Calhoun County Board of EducatIOn'~ ability to admmlster a major Federal program m accordance with applicable reqUirements oflaws, regulations, contracts and grants Reportable condItIOns are descnbed m the accompanymg Schedule ofFmdmgs and Questioned Costs as Items FA-6I91-02-Ql and fA-6191-02-02
A matenal weakness IS a condItion m which the deSIgn or operation of one or more of the mternal control component~ 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 Fedcral program bemg audIted may occur and not be detected wlthm a timely penod by employees m the normal course of pcrformmg their assigned functions Our consideratIOn of the
mternal control over compliance would not necessanly dlsclo~ all matters m the mternal control that
mIght be reportable condItions and, accordmgly, would not necessanly dISclose all reportable condItions that are also conSidered to be matenal weaknesses Howcver, we believe none of thc reportable condItions descnbed abovc IS a matcnal wcakness
This report IS mtcnded solely for the mformatlon and use of the management members of the Calhoun County Board of Education. Federal awardmg agenclcs and pass-through entities and IS not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted.
-- ~~ ... Rus II W Hmton State Auditor
RWHas 2002SA-30

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

CALHOUN COUNTY BOARD OF EDUCATION AUDlTEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002

PRIOR yeAR rlNANCIAL STATEMEN I FINDINGS AND QUESTIONED COSTS

FlNI>ING CONTROL NUMBER AND STATUS

FS-6191-99-03 FS-6191-00-02 FS-6191-00-03 FS-6191-oo-05 FS-619I-OI-01 FS-6191-0 1-02 FS-6191-0 1-03 FS-6191-01-04 FS-6191-0 1-05 FS-6191-01-06

Previously Reported CorreclIve ActIOn Implemented Further ActIOn Not Warranted Pre\'lOu~ly Reported Corrective Action Implemented Further Action Not Warranted PrevIOusly Reported CorreclIve ActIOn Implemented Unresolved - See Corrective ActIOn/Responses Partially Resolved - See CorreclIve ActlonlResponses Unre,olved - Sec CorreclIve AClIonlResponses PrevIOusly Reported CorreclIve ActIOn Implemented Unresolved - See CorreclIve ActionlResponses

CORRECTIVE ACTIONIRESPONSES

EXPENDI rURES/LlABILlTIES/DlSBURSEMENTS Inadequate Accountmg Procedures Fmdmg Control Number FS-6191-0 1-02

1 he Calhoun County School System will ensure adequate/appropnate accountmg procedures Will be followed Vouchers Will be supported wllh adequate documentation No checks Will be Issued Without thiS bemg m place Bookkeeper WIll participate In relevant profes'lOnal development

EMPLOYEE COMPENSAnON Salary Overpayments Amount $1,93750 Finding Control Number FS-6191-01-03

Payroll clerk will review payroll data more closely All underpayments Will be paId to employees that were underpaid All employees who were overpaid will make restllullon for any amount overpaid

GENERAL LEDGER Inadequate Accountmg Procedures rmdmg Control Number FS-6191-01-04

Management Will cnsure that all Journal entrIc, are entered properly wllh adequate and proper documentatIOn

-I-

CALHOUN 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 FllIlure to MllIntam General Fixed A~set Account Group Fmdmg Control Number: FS-6191-01-06

The Calhoun County Board of Education has obtll1ned the services of The ValuatIOn AdvIsory Group, Inc. to update the property mventory and to provide the School Distnct WIth an audltable property record

PRIOR YEAR FEDERAL AWARD FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6I9I-00-OI FA-6I9I-00-02 FA-6I9I-OI-OI FA-6191-0I-02 FA-6I91-01-03

PrevIOusly Reported Corrective Acuon Implemented Previously Reported Corrective Action Implemented PartIally Resolved - See Corrective ActionIResponses Previously Reported CorrecUve ActIOn Implemented Previously Reported Corrective Action Implemented

CORRECTIVE ACTIONIRESPONSES

CASH MANAGEMENT Excessive Cash Balances Amount $2,305.73 Fmdmg Control Number' FA-619I-QI-OI

Management Will ensure that money will be reqUisitIOned as needed to ensure that excesSive cash balances WIll not occur. The check for $2,305 73 has been returned to the State Department

-2-

SECTION IV FINDINGS AND QUESTIONED COSTS

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

I SUMMARY OF AUDITOR'S RESULTS

Type of Report Issued on the Fmanclal Statements The audItor's opmion on the Calhoun County Board ofEducation's financial statements was qualified for vanous departures from generally accepted accountmg pnnclples

2 Reportable Conditions m Internal Control Disclosed by the Audit of the FmancIaI Statcments The audit report for the Calhoun County Board of Education diSclosed financial statcment reportable conditIons related to the follOWing control categones.

Cash and Cash EqUivalents Employee Compensation General Fixed Assets

ExpendlturesILlabllitlcs/Disbursements General Ledger

All of the reportable conditions descnbed above are considered to be matenal weaknesses

3 Noncomphance Matenal to the Fmancial Statements The audit of the Calhoun County Board of EducatIOn dIsclosed no mstanccs of noncomplIance that were deemed to be material to the finanCial statements

4 Reportable CondItions m Internal Control Over MaJOr Programs The audit report for the Calhoun County Board of Education dIsclosed reportable conditIOns m mternal control over major programs for the follOWing comphance requirements

Cash Management

EligibilIty

None ofthe reportable condltlons descnbed above are considered to be material weaknesses

5 Type of Report Issued on Compliance for Malor Programs The audItor's opinion on the Calhoun County Board of Education's report on complIance With requirements applicable to the major program was unqualified

6 AudIt Fmdmgs Required to be Reported by Section .510(a) ofOMB Circular A-l33 The Calhoun County Board of EducatIOn's audIt dIsclosed audit findmgs reqUired to be reported by section 510(a) ofOMB Circular A-l33. These audIt findmgs are mcluded m sectIOn IV of tins report

7. MaJor Program Federal awards audited as a major program are as follows' 84 010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agency

8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00

-I-

CALHOUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
9 Low RIsk Auditee The Calhoun County Board of Education qualified as a low nsk audltee as defincd by Section .530 of OMB Circular A-133
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS EXPENDITURES/LIABILITIESIDISBURS EMENTS EMPLOYEE COMPENSATION GENERAL Li- >GER Inadequate Accounting Procedures Reportable Condition - Matenal Weakness Finding Control Number. FS-6191-02-Q1
Accounting procedures of the Calhoun County Board of EducatIOn were insuffiCient to provldc adequate controls over the above control categories. The following deficiencies were noted
Cash and Cash Equivalents
Bank reconClhatlons for the general operating and U S. Bank trust accounts were not properly reconCiled to the general ledger for the year under revIew. Extensive audit procedures were performed by the auditors to Identify Items needed to reconcile these accounts to the general ledger, and audit adjustments were made as appropnate to properly reflect the finanCial statements at June 30, 2002
Expenditures/Liabilities/Disbursements
The Board did not have procedures In place to ensure all expendItures were. adequately documented, properly coded, checked for accuracy, WIthin the allowable penod, or properly approved before disbursement of funds. Our tests of operating expendlture~ revealed numerous instances where funds were disbursed WIthout proper documentation to support the expenditure.
Employee CompensatIon
The Board dId not have adequate procedures In place to ensure employee compensatIOn cxpendllures were properly calculated and approved before disbursement of funds Our tests ofemployee compensatIOn records for fourteen (14) employees revealed SIX Instances where disbursements were improperly made to employees
-2-

CALHOUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS
CASH AND CASH EQUIVALENTS EXPENDITURESILIABILlTlESIDISBURSEMENTS EMPLOYEE COMPENSATION GENERAL LEDGER Inadequate AccountIng Procedures Reportable ConditIOn - Matenal Weakness FIndIng Control Number. FS-6191-02-01
General Ledger
The Board did not have adequate procedures In place to ensure that journal entries wcrc properly documented and contamed adrnirustratl ve approval before postIng to the general ledger Our tests of twenty-three (23) journal entnes posted to the general ledger revealed that seven (7) did not have eVidence of administrative approval and ten (10) dId not have adequate ~upportIng documentation
The defiCIencies noted above occurred because of management's failure to Implement controls adequate to ensure; bank statements are reconciled to the general ledger, expendItures are properly documented, processed and approved before disbursement of funds, employee compensation expendItures are properly processed and approved before disbursement of funds. and journal enlnes are adequately documented and approved before postIng to the general ledger The Board should establish and Implement appropnate procedures to strengthen internal controls over. reconciliation of bank statements to the general ledger. proceSSIng expenditures. processing employee compensation and postIng journal entries to the general ledger The Board should determIne If reImbursement/payment for salary overpayments/underpayments IS appropnate
GENERAL FIXED ASSETS Failure to MaIntaIn General FIxed Assets Account Group Reportablc CondItion - Matenal Weakness Repeated from Pnor Year Findmg Control Number FS-6191-02-02
The Calhoun County Board of Education did not maIntain a system-wIde General Fixed Assets Account Group WIthIn the formal accountIng records as reqUired by generally acceptcd accountIng pnnciples ThIs condition results in the general-purpose finanCIal statements of the School Dlstncl beIng Incomplete and not In accordance with gencrally accepted accountIng pnnclples Appropnate actIOn should be taken by the School Distnct to establish accounting controls and procedures to proVIde for maIntenance ofa General FIxed Assets Account Group These SUbSidIary records should Include an mventory of land, bUIldings, and equipment owned by the School Dlstnct and should Include but may not be limited to date acqUired. acqUisitIOn cost, estimated replacement cost. locatIOn and descnption. Detailed records should be maintaIned ofall addItIOns and deletions to the General Fixed Assets Account Group
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CALHOUN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U. S Department of EducatIOn Through Georgia Department of EducatIOn Repeated From Pnor Year Amount: $1,491 80 Findmg Control Number: FA-6191-02-01
A review ofcash management procedures for the Elementary and Secondary Education Act - Title 1Grants to Local Educallonal Agencies (CFDA 84.010) Program disclosed that cash draws were made in advance of immediate cash needs, resuillng m the accumulallon of excessive cash balances for all twelve months dunng the year under review.
In addition, the School Dlslnct failed to comply with A-102 Common Rule paragraph 21 (h)2( I), whIch states m part, interest earned on advances by local government grantees IS reqwred to be submItted promptly to Federal grantor agency. Up to $10000 per year may be kept for admmistrative expenses The Elementary and Secondary Education Act - Tille I - Grants to Local Educational AgenCIes program earned interest amountmg to $1.591 80 of which $1,491 80 should have been remItted to the Georgia Department of Education The mterest earned on these program funds was recorded in the School Distnct's General Fund
The excessIve cash balances are a result of management's fmlure to accurately forecast the cash needs of thiS program. The School Dlstnct should implement procedures to minimize the time elapsmg between the transfer of funds from the Georgia Department ofEducation and disbursement ofsuch funds The excessive mterest earnings totaling $1,491 80 should be refunded to the Georgia Department of Education
ELIGIBILITY Failure to Mamtam Documentation for ElIgible Attendance Areas Reportable Condition U. S Department of Education Through Georgia Department of EducatIOn Repeated From Pnor Year Findmg Control Number. FA-6191-02-02
The School DIstrict could not provide accurate documentatIOn to support section IV of the Title I applIcation pertalrung to the determination ofeligible and partIcipatmg attendance areas and school allocations for the Elementary and Secondary EducatIOn Act - Title I - Grants to Local Educational AgenCIes (CFDA 84 0 I0) Program As proVided for m the grant applIcal10n and reqwred by 34 CFR 76 730, the School District assures the Georgia Department of Educanon that It wdl keep records and proVide information as may be required for audit purposes.
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CALHOUN COUNTY BOARD OF EDUCATION SCHEDULE OF fINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS ELIGIBILITY FaJlure to Maintain DocwnentatlOn for Eligible Attendance Areas Reportable Condition U S. Department of Education Through Georgia Department of Education Repeated From Prior Year Finding Control Nwnber' FA-6l91-02-02 This conditIOn was a result of the School Dlstnct's faIlure to ensure that the grant applicatIOn was accurate and supporting docwnentatlon was maIntained for audit purposes The School DistrIct should establish procedures to ensure that applicatIOns are complete, accurate and that proper docwnentation is maintained In compliance WIth the requirements of the grant applicatIOn and 34 CFR 76 730 Also. the Georgia Department of EducatIOn should review this matter to determine ifa reclaIm of funds is appropnate
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