Candler County Board of Education, Metter, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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CANDLER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHffiITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

CANDLER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITIJRES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

S

BY SITE

3S

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 WTIlI GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WTIlI REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WTIlI OMB CIRCULAR A-133

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

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street, S w., Suite 214
Atlanta, Georgia 30334-R400
May 31,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Candler County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Candler County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Candler County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Candler County Board of Education as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 31, 2002, on our consideration of the Candler County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Candler County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States. Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the
2001ARL-13

general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
W.~~
ell W. Hinton Auditor
RWH:as 2001ARL-13

CANDLER COUNTY BOARD OF EDUCATION

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

CANDLER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2001

~
Cash and Cash EqUIValents
Accounts Receivable
Inventones Food Donated Commodllles Purchased Food
Amount Available In Debt Service Fund
Amount to be Provided In Future Years For Payment of Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

924,51590 $

288,5n.36 $

3,622,328.18

75,546.84

88,44847

27,71920

16,184.98 3,639.43

Total Assets
LIABILITIES AND FUND EQUITY
L1ABILlTIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retalnages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUNDEQUI!y
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For Inventones Food Donated Commodities Purchased Food For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undeslgnated
Total Fund EqUity

$

1100,06274 $

396,850.24 $

3.650,047.38

$

3,765.78 $

47,804.40

131,157.82

$

3,13465

$

3,76578 $

182,09687 $

27,26871 27,26871

$

10,823.86

$

16,184 98

3,63943

$

985,47310

194,92896

$

996.296 96 $

214,75337 $

3,562,10867 60,67000
000
3,622,77867

Total Laabihhes and Fund EqUity

$

1,000,062.74 $

396,850 24 $

3,650 104738

The notes to the general-purpose finanoal statements are an Integral part of thiS statement. -2-

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

S 1,049,28287

s

5,884,704 31 S

3,120,07666

189,22505

380,93956

569,711.02

S

1,238,507 92

16,184 98 3,63943
1,238,507 92

11,336.84 2,72945
874,85742

8,261.49208

8,261,49208

3,025,142 58 2.219,91146

S 1,238,50792 S

9.500,000 00 S 15.785.46828 S 9,823,76543

S

51,57018 S

42,26704

131,15782

144,436 93

23,36080

27,26871

570,658.15

685,522 83

3,13465

2,219,911 46

S

9,500.000 00 ~O,OOOOO

3,900.00000

S

9,500,000 00 S 9,713,13136 S 7.586,157 21

$ 1,238,50792
000 S 1.238,507 92

S

10,823.86

S

1,238,507.92

27047 874,85742

16,184 98 3,63943 3,562,10867 60,67000

11,336 84 2,72945 825,89519 25,244 00

1.180.402 06

497.27485

S 6,072,336 92 S 2.237,608 22

S 1,238,50792 S

9,500,000 00 S 15.785,46828 $

9,823:765 43

-3-

CANDLER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED JUNE 30. 2001

FUND BALANCE JUNE 30

$

996,296.96 $ _ _.2:1o4:..7;5~3=,.3:7.

The notes to the general-purposefinanaal statementsare an integral part of ttus statement. -4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTAlS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

247,192.00

$ 9,066,681.45 $ 8,154,098.36

1.375,979.12

1.396,591.52

$ 1,003,332.38

3,112,791.00

2,921,001 73

186.631.50

32.36168

628,28654

593,82445

$

433.82350 $ 1,035.694.06 $ 14.183,73811 $ 13,065,51606

$

133,850.00

1,420,m.02 2,200,000.00 $
110.013.67
$ 3,864.640.69 $ $ -3,430,817 19 $

$
1.000,000.00 164,050.00 750.00
1,164.800.00 $ -129,105.94 $

7,717,489.69 $
337.24445 294,015.23 243,27191 285,353.94 879.73123 258,672.75 611,397.27 393.94986
35.185.78 967,405.32
14.403.04 1,420,m.02
3,219,911 46 275.208 58 750.00
16,t/54,767.53 $
-2,771,029.42 $

7,368.822.94
488,177.76 341,96946 190.934.24 260,464.25 818,902.91 137.16872 628.352.30 404.684.03
21.50 95.501,64 886,658.26 23,59048 6,249.087.87
1.098,644.68 213.41937 57300
19,206,973.41
~,141,457.35

$ 6,107,243.56 $ 95.21311
$ 6,202,456.67 $
$ 2,771,63948 $ 851,139.19

492,756.44 $ 492,75644 $

6,600,000.00 $
95,213.11 -95.21311
6,600,000 00 $

2.200,000.00 600.000.00
~OO,OOOOO
2,200,000 00

363,650.50 $ 874.857.42

s 3,828,970 58
2,237,608.22

-3.941,457.35 6,178.953 36

4,84814 90998

-902.41 1,014.62

$ 3,622,77867 $ 1,238,507.92 $ 6:072.336 92 $ 2.237,60822

-5-

CANDLER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES
BUDGET AND ACTUAL - INON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT"C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support ServICeS Pupil SeMCeS Improvement of Instructional Services Educallonal Media SelVlC8S General Admlnlstrallon School Administration Business Admlnlstrallon Maintenance and Operabon of Plant Student Transportallon SelVlces Other Support SelVlceS Food ServiceS Operabon Communrty ServiceS
Debt SelVlce Pnnapal Interest
Total Expendlturas
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSES)
Other Sources Other Uses
Total Other FinanCing Sources (Uses)
Excessof Revenues and Other FinanCIngSources over (under) ExpendltUl1lSand Other FinanCIng Uses
FUND BALANCE JULY 1 2000
Adjustments Food InventOTy Net Change In Pened
Donated Commedlbes Purchased Food

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 7,958,356 03 $ 8,196,753,97

2,129,46568 6,50000

2,109,468 62 164,154 33

$ 10,094,32161 $ 10,470,366 92

$ 6,696,988 03 $
241,453 DO 201,711 00 241,022 00 252,212.47 781,471,00 194,054 00 848,1noo 412,02200
26,65300

120,00000

$ 10,015,76350 $

$

78,55811 $

6,620,828 22
224,79501 226,74061 243,27191 270,84867 885,215,79 124,82275 608,84065 379,53834
33,68039
14,40304
19,911 46 1,144.91
9,634,041 75
836,32517

$

-95,21311

$

-95,21311

$

78,55811 $

741,11206

205,06584

255,184 90

-17,45828

FUND BALANCE JUNE 30 2001

$

266,16567 $

996,296 96

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 454,664 00 $ 622,73548

1,346,05896

1,375,97912

218,24597

245,13903

$ 2,018,96893 $ 2,243,85363

$ 942,35168 $ 1,096,66147

115,21900 63,254 00

112,44944 67,274,62

9,13800 1,46000 2,925.00
17,95000 946,85228

14,50527 14,51544
2,55662 14,411 52
1,50539 967,40532

$ 2,099,14996 $ 2,291,285 09

$

-80,181 03 $

-47,43146

$

7,968 00

-7,96800

$

000

$

-80,181 03 $

-47,43146

254.08702

256,42671

13,30222

4,84814 90998

$

187120821 $

214?5337

The notea to the general-purpose finenaal statements ara an Integral part of thiS statement -6-

CANDLER COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Candler County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded asexpenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

CANDLER COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAP ITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group:
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
-8-

. .;'

~

-
CANDLER COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHffiIT "0"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Candler County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

-9-

CANDLER COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT 'ACCOUNTING POLICIES

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

RECEIVABLES

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

PROPERTY TAXES

The Candler County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 5,2000 (levy date). Taxes were due on January 20,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Candler County Tax Commissioner bills and collects the property taxes for the School District, withholds 1% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $2,101,001.01.

The tax millage rate levied for the 2000 tax year (calendar year) for the Candler County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

H..S..O. mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,003,332.38 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $2,839,336.52 has been collected or on December 31,2002, whichever occurs first.

Collections on the second referendum will begin on January 1,2003, and the State will terminate collection of this second tax once an additional $8,500,000.00 has been collected or on December 31, 2007, whichever occurs first.

- 10-

CANDLER COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than 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 present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

CANDLER COUNTY BOARD OF EOUCAnON

EXHmIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $6,594,657.13. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 12 -

CANDLER COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank. balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$ 362,708.95

2

0.00

3

6,231,948.18

Total

$ 6,594,657.13

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

- 13-

CANDLER COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

Begmning of Year Liability

Claims and Changes in Estimates

Claims PaId

End of Year LIabilIty

2000 2001

$

0.00 $

8,258.00 $

8,258.00 $

0.00

$

0.00 $

4,677.00 $

4,677.00 $

0.00

The School District has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent Financial Director Curriculum Director Principals

$ 50,000.00 $ 10,000.00 $ 5,000.00 $3,000.00/$10,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1997 General Government - Series 2001A

4.05% - 4.25% 4.35%

$ 2,900,000.00 6,600,000.00

$ 9,500,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

- 14-

CANDLER COUNTY BOARD OF EDUCATION

EXHIDIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000

$ 2,219,911.46 $ 3,900,000.00 $ 6,119,911.46

Additions G.O. Bonds

6,600,000.00 6,600,000.00

Deductions Debt Retired

2,219,911.46 1,000,000.00 3,219,911.46

Balance June 30, 2001

$,==~o~.o~o $ 9.500.000.00 $ 9.500.000.00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003 2004 2005 2006 2007 - 2011

$ 1,753,027.50 1,850,850.00 1,112,100.00 1,111,212.50 1,108,802.50 4,472,182.00

Total Principal and Interest

$11,408.174.50

In addition to the above debt, voters have authorized $3,400,000.00in general obligation debt for the purpose of providing funds to pay all or a portion of the cost of the construction, renovation and modification ofthe Metter Elementary School and the current Metter Middle/High School, systemwide repair ofroofs, the cost of the acquisition, construction and equipping ofthe new Metter High School, additions to the physical education facilities and construction ofan athletic complex, thereof, instructional and administrative technology improvements for existing schools, and adding to, renovating, repairing, improving, and equipping existing school buildings, and other buildings and facilities useful or desirable in connection therewith, and acquiring any necessary property therefor, both real and personal, to pay capitalized interest incident thereto, and to pay expenses incident to accomplishing the foregoing, and to pay a portion of the debt service on such bonds. These bonds were not issued as of June 30, 2001.

- 15 -

CANDLER COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of$181,729.94 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$159,235.64
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $4,797.30
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of$17,697.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

- 16-

... ' .. ---

CANDLER COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11,29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 745,235.57 $ 716,464.35 $ 704,664.58

- 17 -

CANDLER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET
SPEC~LREVENUEFUND
JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total liabilities FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated Total Fund Equity
Total liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 18-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

229,783,10 $

58,368,36

9,638,04

16,184,98 3,639.43

$

259,24555 $ """'=_-=~;5;8,;,3;;6,8;.,3;6;=

$

15,477.26 $

13,883.92

29,014.92

44,484.44

$

44,492.18 $

58,368.36

$

16,184.98

3,639.43

194,928.96 $

0.00

$

214,753.37 $

0.00

$

259,245.55 $ ====5=8~,36=8=.3=6

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

425.90 $

288,577.36 $

324,981.61

78,810.43

88,448.47

281,959.33

16,184.98 3,639.43

11,336.84 2,729.45

$

79,236.33 $

396,850.24 $ ======6=2=1,-0!:0:=7:.:2=3=

$

159,387.78

$

18,443.22 $

47,804.40

38,383.75

57,658.46

131,157.82

144,436.93

22,372.06

3,134.65

3,134.65

$

79,236.33 $

182,096.87 $

364,580.52

$

270.47

$

16,184.98

3,639.43

11,336.84 2,729.45

$

0.00

194,928.96

242,089.95

$

0.00 $

214,753.37 s

256,426.71

$

79,236.33 $

396,850.24 $ =====-'i6:ii2ia1::,!0=0=:7....2..3...

- 19-

--- --- - - - - - - - - - - - - -
CANDLER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

FUND BALANCE JUNE 30

$

214,753.37 $==-=======0.=00=

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

EXHIBIT"F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30,2001

JUNE 30,2000

$

622,735.48 $

504,365.64

$

767,949.52

1,375,979.12

1,396,591.52

245,139.03

225,369.33

$

767,949.52 $ 2,243,853.63 $ 2,126,326.49

$

608,298.25 $ 1,096,661.47 $ 1,052,785.58

48,301.34 65,890.50 14,332.70 14,515.44
14,411.52 1,505.39
964.85

112,449.44 67,274.62 14,505.27 14,515.44
2,556.62 14,411.52 1,505.39 967,405.32

98,864.74 76,938.86 8,185.91 2,592.81 8,945.64 2,735.78 13,026.81 886,658.26

$

768,219.99 $ 2,291,285.09 $ 2,150,734.39

$

-270.47 $

-47,431.46 $

-24,407.90

270.47

256,426.71

280,722.40

4,848.14 909.98

-902.41 1,014.62

$

0.00 $

214,753.37 $====~;2;5;6;,,4;2,6.;7,1=

- 21 -

CANDLER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$ 3,584,377.38 $

60,670.00

5,000.00

$ 3,589,3n.38 $=======6=0=,6=7=0=.0=0=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund EqUIty
Total Liabilities and Fund Equity

$

27,268.71

$

27,268.71

$ 3,562,108.67 $
0.00
$ 3,562,108.67 $

60,670.00 0.00
60,670.00

$

3,589,377.38 $=====60~,6=7=0.=00~

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

EXHIBIT"G"

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 3,645,047.38 $ 2,107,320.17

$ ----=2=2,~71=9=.2-0

27,719.20

$

22,719.20 $ 3,672,766.58 $ 2,107,320.17

$

22,719.20 $

22,719.20

27,268.71 $

570,658.15

685,522.83

$

22,719.20 $

49,987.91 $ 1,256,180.98

$ 3,562,108.67 S 60,670.00

825,895.19 25,244.00

0.00

0.00

$

3,622,778.67 $ _ _=8-5:1.,L1.3:9..:1:9~~

$

22,719.20 $ 3,672,766.58 $ 2,107,320.17

- 23-

CANDLER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Building and Building Improvements
Debt Service PrinCIpal Interest
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES)
Proceeds From General ObligatIon Bonds Par Value
Capital Lease Operating Transfers In Operating Transfers Out
Total Other FinanCing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other FinanCIng Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

20,000,00 $

0,00

186,631,50

$

206,631,50 $

0.00

$

133.850.00 $

0.00

1,168,341.02

2,200,000.00 110,013.67

$ 3,612,204.69 $

0.00

$ -3.405,573 19 $

0.00

$ 6,107.243.56 95,21311 $ -60,670.00
$ 6,141.78667 $
$ 2,736.213.48 $ 825.89519

60.670.00 60.670.00 60.670.00
000

$ 3,562,108.67 $======60:i,i6i7o0:C00:'

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

EXHIBIT"H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

227,192.00 $

247,192.00

$

200,000.00

139,525.16

$

227,192.00 $

433,823.50 $ _ _-3=3::9.L,=5:2=5:".'1:-6=-

$

133,850.00 $

20,286.85

$

252,436.00'

1,420,777.02

6,249,087.87

2,200,000.00 110,013.67

$

252,436.00 $ 3,864,640.69 $ 6,269,374.72

$

-25,244.00 $ -3,430,817.19 $ -5,929,849.56

$ 6,107,243.56

$ 2,200,000.00

155,883.11

825,244.00

-60,670.00

-225,244.00

$ 6,202,456.67 $ 2,800,000.00

$

-25,244.00 $ 2,771,639.48 $ -3,129,849.56

25,244.00

851,139.19

3,980,988.75

$

0.00 $ 3,622,778.67 $ =====8:!5::O1,i1ii3=9=1=9=

- 25-

----------------------------- ----
CANDLER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 3D. 2001

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 3D, 2000

$ 492,756.44 $

556,526.43 $ 1,049,282.87 $

687,183.33

189,225.05

189,225.05

187,67409

Total Assets

s $ 492,756.44

745,75148 $ 1,238,507.92 $=====8=7=4=,=8=5=7=4=2=

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 492,756.44 $

745,751.48 $

0.00 _ _ _ _0;::;....:.:00;...

1,238,507.92 $ 0.00

874,857.42 000

Total Fund Equity $ 492,756.44 $

745,75148 $ 1,238,507.92 $=.....8.=7=4=:,.8!.i5a7i::.=4=2==

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

CANDLER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXpENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001

EXHIBIT nJ"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest PaYing Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Proceeds of General Obligation Bonds Par Value
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BAlANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SAlES TAX

TOTAlS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$

0,00 $ 1,003,332,38 $ 1,003,332.38 $ 876,346,91

32,361,68

32,361,68

60,045.52

$

0,00 $ 1,035,694 06 $ 1,035,694 06 $ 936,39243

$

0,00 $ 1,000,000.00 $ 1,000,000.00 $ 1,000,000,00

164,050,00

164,050,00

204,55000

75000

750.00

573.00

$

000 $ 1,164,800,00 $ 1,164,800,00 $ 1,205,12300

$

000 $ -129,105.94 $ -129,10594 $ -268,73057

492,75644

492,75644

$ 492,756,44 $ 000

-129,105.94 $ 874,85742

363,650.50 $ -268,73057

874,85742

1,143,587,99

FUND BALANCE JUNE 30

$ 492,756.44 $

745,751.48 $ 1,238,50792 $ 874,85742

See notes to the general-pullloS& finanCIalstatements

- 27-

-CANDLER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3Q 2QQ1

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of Educabon Food and Nutnbon Program Food SeI'VlCeS School Breakfast Program National School Lunch Program Pass- Through From Office of School Readiness Food and Nutntlon Program Food Servtces Summer Food SeMce Program tor Children
Total Child Nutn1lon Cluster
Other Progrems Pass-Through From GeorglS Department of Educebon Food and Nu!n1lon Program Food Dlstrlbubon Program (1) Pass- Through From Office of School Readiness Food and NutntlOn Program Child and Adult Care Food Program
Total U S Department of Agnculture
Educabon, U S Department of Speaal Education Cluster Pass- Through From Georgia Department of Educalion IndiVIduals WIth Dissblllltes Education AI:;t Part B - Speasl Education CapaCity Building Improvement Flow Through Preschool
Total Special Education Cluster
Other Programs Pass-Through From First Dlstnct RegIOnal Educabonal Service Agency d/b/a Live Oek Mtgrant Educabon Agency Elementary and Secondary Education AI:;t Trlle I Migrant Educabon Sefa and Drug-Free Schools and Communrlills Pass- Through From GeorglS Department of Educabon Elementary and Secondary Educabon AI:;t Trllel Accountability Grants Grants to Local Educabonal Agenaes Title II Eisenhower ProfeSSional Development TrlleVl lnnovanve Educabon Program Strategies Class SI%8 ReduetJon Goals 2QQQ Sta1e and Local Educabon Systemic ImproVlSment Grants

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

1Q 553 1Q555

N/A

$ 145,115 Q8

N/A

393,265 Q7 $

(2) 9Q8,563 89 (3)

to 559

N/A

15,96812

S 554,34827 S

(2) 908,56389

to 550
10558

N/A

48,931 73

N/A

4,7496Q

$ 608,Q296Q $

48,931 73
(2) 957,49562

84173 84 027 84173

N/A

S

6,67428 $

N/A

167,384 85

N/A

13,766 06

$ 187,82519 S

6,67428 167,384 85
13,76606
187,82519

84 Q11

NlA

84 186

NlA

84 348

N/A

84.Q1Q

NlA

84.281

NlA

84 298

N/A

84 34Q

N/A

84276

NlA

42,564 9Q 28,44625
19,754 00 371,684 83
12,86535 14,142 QQ 6Q,326 QQ

42,564 9Q 28,44625
19,754 00 371,684 83
12,86535 14,142 QQ 6Q,326 QQ
27Q47

- 28-

CANDLER COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAl AWARDS
YEAR ENPED JUNE 30 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Edueatton, U S Department of Other Programs Pass- Through From Georgia Department of Education Vocational Educabon - BasiC Grents to States High Schoot Program Basic Grant
Total U S Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84048

NlA

$ 30.34100 $

$ 767,94952 $

30,341 00 768,21999

Total Federal Flnancaal Asslstanca
= N/A Not Available
Notes to the SchedYIe of Expendlturas of Federal Awi!rds
(1) The amounts shown for the Food Dlslnbubon Program represents the Federelly assigned value of nonmonetary assistance for donated commodrtJes received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the Child and Adult Care Food Program, the School Breakfast Program and Summer Food Se/VIce
Program for Children were not maintained separately and are Included In the 2001 National School Lunch Program
(3) Expendrtures for thiS program Include State. and/or Other Funds Expenditures are not malntamed by fund source
Major Programs are identIfied by an astensk (0) In front of the CFDA number
The School D1slnetdid not provide Federal Asslstanca to any Subreaptent
The accompanYIng schedule of expenditures of Federal awards mcludes the Federal grant aetMty of the Candler County Board of Education and IS presented on the modrfied aeaus! baSIS of accounting which IS the baSIS of accounting used In the presentabon of the general-purpose financlal statements

1.725.71561

See notes to the general-purpose final1Cl8l statements

- 29-

CANpLER COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCYlFUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Local Assistance Grant (1)

$ 20,000.00 $

20,000.00

EducalJon, Georgia Department of Quality BasIc education Direct Instructional Cost Kmdergarten Program Kmdergarten Program - Early IntervenlJon Program Pnmary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wlthDlssblhlJes Category II Category III Category IV Gifted Student - Category VI Remedial EducalJon Program Alternative Education Program Media center Program Staff and Prof8SSlonal Development Indired Cost Categoncal Grants Pupil TransporlalJon Regular Bus Replacement Sparsity Nursing SeMceS Pnnapal Supplements Vocational SUpeMSors Migrant Educabon Education EquahzalJon Funding Grant Food SeMC8S VocalJonalEducalion Other State Programs At-RISk Summer School Program Health Insurance Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Rebrement Lottery Programs Computers In the Classroom Excepbonal Growth-Capital OuUay VocalJonal Technology Program

$ 262,959.00 182,26700
1,005,234 00 284,28000 640,930.00 994,583.00 766,649.00 343,75000
172,739.00 445,67100
42,046.00 63,147.00 62,954.00 77,027.00 171,002.00 46,186.00 1,123,454.00

243,851.00 78,205 00 50,949.00 53.641.00 7,570.00 12,309.00 10,257.00
658,730.00 $
100,430.00

57,166.00

3.999.72 159,235.64
4,564.00 29,10300
3,179.31 4,797.30

37,969.00

140,000.00

227,192.00

262,95900 182.26700 1,005,234.00 284,280.00 640.930.00 994,58300 766,649.00 343,750.00
172.73900 445,671.00
42.046.00 63,147.00 62,954.00 77.027.00 171,00200 46,186 00 1,123,454.00
243,851.00 78,205.00 50,949.00 53.641.00 7,57000 12,309.00 10,257.00
658,73000 57,166.00
100,430.00
3,99972 159,235.64
4,564.00 29.103.00
3,17931 4.79730
37,96900 227,192.00 140,000.00

Office of School Readiness Pre-KJndergarten Program

387,60048

387,60048

Office of Treasury and Fiscal SeMces PublIC School Employees Retirement

17,697.00

17,69700

30-

CANDLER COUNTY BOARD OF EPUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCYIFUNDING
CONTRACTS Education,Georgia Departmentof CommunitiesIn SChools of GeorglS Georgia's ReadingChallenge Reading FUlltProgram

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

25,00000

22,903.00

25,455.00

$

25,00000

22,90300

25,45500

$ 8,196,75397 $ 622,73548 $ 247,192.00 $ 9,066,68145

(1) The purpose of the funds IS to purchasefurniturefor Metter High School.

see notes to the generaJ-purpose finanCial statements

31

CANDLER COUNTY BOARP OF EDUCATION SCHEDULE OF APpROVEp LOCAL OPTION SALES TAX pROJECTS
YEAR ENDED JUNE 30 2001

SCHEDULE "3"

pROJECT
For the purpose of acqulnng, constructing. and equipping a new Metter high school
For the purpose of proViding funds to pay all or a portion of the cost of the construction, renovation and modificatton of the Metter Elementary School and the current Metter Middle/High School, system-wlde repair of roofs, tha cost of the acqursiuon, construcllon and eqUipping of tha new Matter High School, additions to the phYSical educallon facllllles and construction of en athletic complex, thereof, instructional and administrative technology Improvements for eXlsling schools, and adding to, renovallng, repalnng, Improving, and eqUipping eXlSllng school bUildings, end other bUildings and facilities useful or deSirable In connection thefllWlth, and acqUlnng any necessary property therefor, both real and personal, to pay capitalized Interest inCIdent thereto, and to pay expenses inCIdent to accomplishing the foregOing, and to pay a portion of the debt service on such bonds

ORIGINAL ESTIMATED
COST (1)

CURRENT
ESTIMATED
cosrs (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 6.300.00000 $ 8,328.48945 $ 274,06367 $ 8,054.425 78 Completed

8,500.00000 11,200,000 00

1,420.77702

Ongoing

$ 14,800.00000 $ 19.528,48945 $ 1,694,84069 $ 8,054,425 78

(1) The School Drstnct's onglnal cost esnmate as specified In the resolution calling for the Imposition of the Local Option Sales Tax
(2) The School Dlstnct's current eslJmate of total cost for the projects Includes all cost from project mcepuon to complellon
(3) The voters of Candler County approved the lmposmon of a 1% sales tax to fund the above projects and relJre
associated debt Amounts expended for these proj8c1s may Include sales tax proceeds, state, local property taxes and/or other funds over the life of the PfOlElcls

See notes to the general-purpose finanCial statements

33 -

CANDLER COUNTY BOARD OF EDUCATION GENERAL FUNp - aUALlTY BASIC EPUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

PESCRIPTION
Direct Instructlonal Programs Kindergarten Program Kindergarten Program-Eariy IntervenlJon Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program VocalJonal Laboratory (9-12) Program Students WIth DtsabilllJes Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative EducalJon Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

287,97000 $ 365,31611 $

4,749.83 $

370,06594

199,60300

174,286,50

3.389.56

177,67606

1,100,847,00 1,158,510,59

26,660.57

1,185,17116

311,319,00

309,298.68

9,530.22

318,828,90

701,89200

630,843,53

14,687.18

645,530.71

1,089,18300 1,117,415.88

25,53027

1,142,946,15

839,569.00

937.866.41

32,85999

970,72640

376,446.00

287,259.52

39,144 23

326,40375

723.27800

215,42445

3,584,24

219,00869

363,718,20

11,452,15

375,170.35

67,178,13

1,272,00

68,45013

69,153.00

65,72044

85033

66,570.77

68,942,00

167,132.91

53594

167,66885

84,354.00

100,77411

882,53

101,65664

1,92049

1,92049

$

5,852,556,00 $ 5,962,665.95 $ 175.129,04 $ 6,137,794 99

187.266,00 50,57800

196.116,52 22,870.85

36,81928 27,743.80

232,935,80 50,61465

TOTAL aBE FORMULA FUNDS

$

6,090,40000 $ 6,181,65332 $ 239,69212 $ 6,421,34544

(1) Comprised of State Funds plus Local Five Mill Share

See notes to the general-purpose financial statements

- 34-

CANDLER COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

Metter Middle School Metter High School Metter Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,395,947.00 $

1,372,308.49

1,458,719.00

1,608,075.77

2,913,536.00

3,151,344.85

84,354.00

6,065.88

$

5,852,556.00 $

6,137,794.99

See notes to the general-purpose financial statements. - 35-

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Russu.r. W. HU"TON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street S.W., Suite 214 Atlanta, Georgia 30334-8400
May 31,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Candler County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Candler County Board of Education as of and for the year ended June 30, 200 I, and have issued our report thereon dated May 31, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose fmancial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Candler County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Candler County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-40

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgment, could adversely affect Candler County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6211-01-01 and FS-621 1-01-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6211-0102 to be a material weakness.
This report is intended solely for the information and use of management, members of the Candler County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 200lYB-40

Ru ell W. Hinton State Auditor

RUSSEI.L W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street, S W. Suite 214 Atlanta, Georgia 30334-8400
May31,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Candler County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofCandler County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (OMB) Circular- A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30,2001. Candler County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Candler County Board of Education's management. Our responsibility is to express an opinion on Candler County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Candler County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Candler County Board of Education's compliance with those requirements.
2001SA-I0

In our opinion, the Candler County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Candler County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Candler County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Candler County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
w.~
11 W. Hinton Auditor
RWH:as 2001SA-1O

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

CANDLER COUNTY BOARD OF EDUCAnON AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIQNED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6211-99-02 FS-6211-99-03 FS-6211-00-0 1 FS-6211-00-02

Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6211-00-02

The Candler County Board ofEducation has determined that it is not economically feasible at this time to maintain a separate General Fixed Assets Account Group from the primary accounting system provided by the Department ofEducation. Although the School District realizes the significant role the General Fixed Assets Account Group has on the financial statements, it has decided not to take any action at this time. The School District hopes that this issue will be addressed in the accounting system software updates issued by the Department of Education in the future.

SECTION IV FINDINGS AND QUESTIONED COSTS

CANDLER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Candler County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Candler County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Employee Compensation

General Fixed Assets

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Candler County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Candler County Board of Education did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Candler County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-l33 The Candler County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-l33.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Food Services -Summer Food Service Program for Children

8. Type nAn Program Dollar Threshold The dollar threshold for type nAn programs was $300,000.00.

9. Low Risk Auditee The Candler County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.

- 1-

CANDLER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Inadequate Payroll Procedures Reportable Condition Finding Control Number: FS-6211-01-01
For the year under review, an employee compensation sample of thirty employees reveled the following deficiencies:
One employee was overpaid $341.89 due to management's failure to remit a termination notice to the payroll department in a timely manner.
One employee was overpaid $122.40 due to management's failure to properly deduct excessive leave from the employee's paycheck.
These deficiencies were the results of the School District's failure to have adequate policies and procedures in place to ensure that payroll changes were made in a timely manner and leave records were reviewed. Management should implement policies and procedures to ensure that all payroll changes are communicated in a timely manner to payroll personnel and that leave records are reviewed for negative balances.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6211-0 1-02
The Candler County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
Management's Response:
The Candler County School District will be taking action to record the general fixed assets on our financial statements for Fiscal Year 2003.
-2-

CANDLER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001 ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-3-