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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 Toh 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.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 KeIopment 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 -3- 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. - 4- 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 -5-