~~-c "- ~eC?o ., ',',''' , oR\ ,, l- " " ...I \ " " e~t,; c.:," ", J' " ,, ,-, _\ r ,. , " ,, " ," ~O~Att.Q. . .J .. -, , ~ I' OF' AN'r> 'ACCOUNTS.:" ." ~ 'I,- .. " .J , ' ,1 ,- '. :STATE OF.GEORGIA .' DEPARTMENT' AUDITS' r ., ,. 'to '.. ~. \ I ~...... ': ,, ,. ,! ,J~ v' . J .. .., 'r , .....- .... .. " -r f, ,r .. "" ,.1 ' .. ~II ..,,. .,, ' ' ... -. ,, ~ r' " " " .,.... ,, " ' . ,., " I" }I ,, "' ." \ ", .- ,. -,~ ., ' " " ) ,, ,. I .. " "( " " " " "~, , t I'" " h, -".... , , ~, ' ,.I _. ,, "'J ... " - ..ij .' " .~ , ' " " . ,, " .J- . ~' .. oJ ....... _'".. J " ; P'_ 'I _, " . -~ " . '. \ " -. .' ., : I" I ,', I " I:;" , J " J, CARROLL COUNTY BOARD 'OF EDUCATION. '- - r ~, I 1, I I I " - r or ... CARROLLTON,' GEORGIA , .. l ..-"l I. L . ._ , . , ' , .& . '. J '., . "" i .I ' " REPORT)::>N AUDIT .- OF. THE FINANCIAL STATEMENTS " .\ F.OR THE FISCAL YEAR EN'oED JUNE 30, 2002 ),"' J ,' ." , ",, J .' " " ,.'.' , I' , J , ~ ,. I'"''' .... .. r.r ", ., " I. "' ....._ I< _,'- C . .- , \ '~. I ',. ~ >, ..... ,, - .. ,' -.. ... , . . .' . { J\ ".- .L ..- ~ , 1..... r~ ,, Russell w. 'Hinfo'n" State' Auditor, r-. ~ i .-, I , '" ,- 1'- .- .J ' r' ," 1 .. -" "' . . ,, , ,' , ~ " > ,< t' ." .' ,, .' .. ' c, " .' , , , , '. ,, ,, - !' " , .J ,, " ~.' '. " .-, .' ,. " T' 'r CARROLL COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS- SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE 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, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUOOET AND ACIUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 8 E STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 9 F NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS 10 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND G COMBINING BALANCE SHEET 24 II COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 26 CAPITAI. PROJECTS FUND I COMBINING BALANCE SfIEET 28 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 30 DEBT SERVICE FUND K COMBINING BALANCE SHEET 32 I. COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 33 CARROLL COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION EXHIBITS COMBINING STATEMENTS FIDUCIARY FUND TYPES M COMBINING BALANCE SHEET 34 N COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES AGENCY FUNDS 35 SCHEDULES I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 36 2 SCHEDULE OF STATE REVENUE 38 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 41 ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 42 5 BY SITE 43 SECTION 11 COMPLIANCE AND INTERNAL CONIROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-I33 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS CARROLL COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL 'h.SSFI I. W. "INTO!,; STATE AUDITOR (A()oi) ~6-217. DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wd,hmgton Slre"l. ~ W Sune 214 Alldnld. GeorglU 30114-l!4(Xl June 6, 2003 Honorable Sonny Perdue, Governor Members ofthc General Assembly Members of the State Board ofEducalion and Supenntendcnt and Members ofthc Carroll 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 thc accompanymg general-purpose financIal statements of the Carroll County Board of Educalion, as of and for the year ended June 30, 2002, as lIsted m the table of contents These general-purpose financIal statements arc the responsIbilIty of the Carroll County Board of Educalion's management Our responsibilIty IS to express an opmlon on these general-purpose financial statemcnts based on our audIt We conducted our audIt In accordance With audIting standards generally acccpted m the Umted Statcs of Amenca and the standards applIcable to financial audIts contained m Government AudItmg Standards, Issued by the Comptrollcr Gcneral ofthe Umted States Those standards reqUire that we plan and perform the audIt to obtain reasonable assurance about whcther the financIal statements are frce ofmatenal mIsstatement An audit Includes exammmg, on a test basIS, eVidence supportmg thc amounts and dIsclosures m the financial statements An audIt also Includes assesSing the accounting pnnclplcs used and sIgmficant eslimatcs madc by management, as well as evaluating the overall financial statement presentation We belIevc that our audIt provIdcs a reasonablc basIS for our opinIOn As dcscnbed In thc notes to thc gcneral-purpose finanCial statements, thc Board of EducatIOn's financial statements have been prepared USing certain accounting praclices and polICICS whiCh, In our OpinIOn, vary In some respects from generally accepted accounting pnncIples These vanances are descnbcd as follows 2002ARL-13 * The general-purpose financial statemcnts of the Board of Education did not contain a General Fixed Asscts Account Group to account for property and eqUIpment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnclples * School actIvity accounts maintained at the mdlvldual schools are not mcluded m the general-purpose financial statements. To conform to generally acceptcd accountmg pnnclples, these accounts should be mcluded m the general-purpose finanCial statements * The Board of EducatIon did not recognIze as expenditures, m the year ended June 30, 2002, a portIOn of salanes and the correspondmg employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salanes and related benefits were not recorded as revenue m the year under reVlcw Conversely, the Similar expenditures and related rcvenues for contractual services completed pnor to June 30, 2001, were Improperly recorded m the year ended June 30, 2002 To conform to gencrally accepted accounting pnnclples, revenues should be recorded when aVailable and measurable and expenditures should be recorded when mcurred, rather than whcn funds are received or disbursed The aggregate effects on the general-purpose financial statemcnts of these vanances or omiSSIOns havc not been determmed, but are belIeved to be matenal. In our OpinIOn, except for the effects on the general-purposc financial statemcnts of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present faIrly. m all matenal respects, the financial POSition of the Carroll County Board of Education as of June 30, 2002, and the results of Its operations and the cash flows of ItS nonexpendable trust fund for the year then ended, m conforrrnty With accounting pnnclples generally accepted In the UnIted States of Arnenca In accordance With Government Auditing Standards, we have also ISSUed our report dated June 6, 2003, on our conSideration ofthe Carroll County Board ofEducatIon's Internal control over finanCial reportmg and our tests of ItS complIance With certam provISIons of laws, regulatIOns, contracts and grants That report IS an mtegral part of an audit performed m accordance Wlth Government AudItmg Standards and should bc read In conjunction wIth thiS report m consldenng the results of our audit Our audit was pcrformed for the purpose of formmg an opinIOn on the gencral-purpose finanCIal statements of the Carroll County Board of EducatIOn taken as a whole Thc accompanymg combining statements (Exhibits G through N) and the finanCial schedules (Schedules I through 5). which mcludes the Schedule of ExpendItures of Federal Awards as reqUIred by U S Office of Management and Budget CIrcular A-133, Audits of States. Local Governments. and Non-Profit OrgamzatlOns, are presented for purposes of additional analYSis and are not a reqUIred part of the 2002ARL-13 general-purpose financIal statements Such InformatIon has been subjected to the audItIng procedures applIed In the audIt ofthe general-purpose financial statements and m our OpIniOn, except for thc effects ofthe matters referred to m thc thud paragraph, such mformation IS faIrly stated, m all matenal respects, In relatIOn to the general-purpose financIal statements taken as a whole. A copy ofthls report has been filed as a permanent record m 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, ~~ R ell W Hmton State Auditor RWHgp 2002ARL-13 CARROLL COUNTY BOARD OF EDUCATION CARROLL COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002 ~ Cash and cash Equivalents Investments Accounts ReceIVable Inventories Food Donated Commochtles Purchased Food Amount Available In Debt SeMCe Fund Amount to be Provided In Future Years For Payment 01 Bond Debt Capital Laase Agreemants Compensated Absences GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND S 10.098.51252 $ 126.122 86 $ 31.011.933 62 20.000 00 18.187.80816 822 826 73 1.515.70117 1.53341840 59.39371 53.54504 Total Assets S 10,921,33925 $ 1[774,76278 $ 50,733,16018 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retalnages Payable DefelT9d Revenue Funds Held for Others capital Lease Agntements Compansatad Ab&ances General ObhgalJOn Bonds Payable Total lJablh'les FUND EQUITY Fund Balances Reserved For Debt servIce ForEnd~ent~us For Inventones Food Donated Commodities Pun:hased Food For Purpose of Bond Issue For SPbOST PrOj9Cts Unreserved Designated for Self-Insurance Designated for Local Capital Outlay Undeslgnated Total Fund Equity S 180,16218 $ 829,04233 685 Q4 2,31675 160.283 04 200.826 58 $ 1.009.889 55 $ 363,426 37 S S 60.35985 10.860.97940 S 10.921,33925 $ 59,39371 53,545 Q4 $ 4653711936 3.091,362 95 651.934 48 764.87323 $ 741,25150 000 50,369,73381 Total Uabmtles and Fund Equity S 10,921.33925 S 1.774,76278 $ 5.733,160 18 The notes to the g&neral-purp088 financial statements are an Integral part of this statement -2- EXHIBIT "A" DEBT SERVICE FUND FIDlIClARY FUND TYPES TRUST AND AGENCY FUNDS S 59,209 17 S 22,665 38 5,722 09 43,82340 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Onty) JUNE 30, 2002 JUNE 30, 2001 S 41,318,355 S 13,075,280 52 18,257,35365 57,250 28 3,871,946 30 2,854,550 67 S 64,93126 59,393 71 53,54504 64,931 26 62,01000 46,41506 56366 54 315,068 74 1033,892 69 458,47469 54,31506874 1 033,892 69 458,47469 8,549436 34 409,862 S 64,93126 S 66.488 78 S 55,872.367 38 S 119,433:04963 $ 25.055,36897 S 182,47893 S 16127423 829,04233 727,72337 103 160,283 04 342,904 87 200,826 58 250,64230 68504 S 32,401 90 32,401 90 32,15127 S 1,033,89269 1,033,892 69 458,47469 458,47469 409,882 54,380,000 00 54,380,000 00 8,550,000 00 S 32,40190 S 55,872.367 38 S 57,278,085 20 S 10,474,861 92 S 64,93126 S 27,965 70 000 6,121 18 S 64,93126 S 34,088 88 S 64,93126 S 56366 2796570 27,965 70 59,39371 53,54504 46,537,11936 3,091,36295 62,01000 46,41506 3,152,24337 60,35985 741,25150 11,519,03506 64 498 36 527,72302 10,699,087 88 S 62,154,964 43 S 14,580,507 05 S 64,931 26 S 66.488 78 S 55,872,367 38 S 119:433,04963 S 25:055,36897 -3- CARROLL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAlANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2092 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instructlon Support seTVIces Pupil 8erv1C8S Improvement of InstructIOnal Services Educabonal Media ServIces General Admlnlstratlon School Admlmstrabon BUSiness AdmlnlStratlon Maintenance and Operabon of Plant Student Transportatlon selVlceS Central Support services Other Support services Food services Operation Enterpnse Operations CommtJmly ServIces Operabons Capital Outlay Debt service Princrpal Interest Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Accrued Int&fest on Bonds Sold Proceeds from General ObligatIOn Bonds Par Value Capital leases Operabng Transfers In Operabng TranSfers Out Total Other Flnanctng Sources (Uses) Excess of Revenues and Other FinanCing Sources over (under) Expen(hlures and Other FinanCIng Uses FUND BALANCE JULY 1 Food Inventory - Net Chango In Period Donated Commodities Purchased Food Residual EqUity Transfer GENERAL FUND SPECIAl REVENUE FUND $ 55,104,37887 $ 22,717,734 96 1,572,246 68 2,976,350 79 7,344,523 52 1,901,796 86 $ 79,394,360 53 $ 12.222,673 17 S 53,746,51218 $ 5,212.46971 1,801.092 37 1,473.79352 2.135.506 62 763.31909 6,252,106 38 473,350 02 6.514,496 63 4.056.453 25 637,190 37 1,48517 390.806 41 420.73715 367,461 28 789.24056 807,483 94 283.64960 18.87844 122,82141 4,834,280 13 103,571 96 111,02753 51,04849 $ 79,196,38846 $ 12,172,39577 $ 197,972 07 $ 50.277 40 S 1.144,92022 8.18445 $ -649.038 22 $ 504,066 45 $ $ 702.038 52 $ 10,219.300 73 70,080 22 -8,18445 61.895 77 112,17317 648,186 37 -2,61629 7.12996 FUND BAlANCE JUNE 30 $ 10.921,33925 $ The notes to the general-purpose finandal statements are an Integral part of thiS statement -4- 764,87323 EXHIBIT "B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Onlv) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 S 58,080,729 66 S 55,722,63758 7,344,523 52 6,467,430 56 S 4,462,800 19 S 4,501,61250 31,662.14767 29,970,325 35 739,77053 84948 4,214,66555 3,571,18349 S 5,202,57072 S 4,502,461 98 S 101,322,066 40 $ 95,731,576 98 $ 434,796 13 7,956,96517 S $ 8,391,76130 $ $ -3,189,190 58 $ $ 58,958,981 89 $ 53.816,417 48 2,590.332 93 2.281.277 46 2,135,50662 1,046,968 69 6.252,106 38 908,14615 6,514,498 63 4,075,331 69 637,190 37 122,821 41 4.835,76530 390,806 41 524,30913 8.324,426 45 2,727.28209 2,042,996 66 1,993,026 39 1,113.80866 5,300,68769 482,196 21 5,921,76054 4,233,20879 552,998 32 14054441 4,647.06304 350,11905 606,088 80 7,403,504 61 4,170,00000 1,023,44063 4,281,027 53 1,074.48912 3990,00000 480,23250 5,193,44063 $ 104,953,986 16 $ 95,801,93524 -690,97865 S -3,631.91976 $ -70,358 26 S $ 50 000,000 00 578,958 00 -700,000 00 S 49,878,958 00 S 55,346 25 S 55,34625 700,00000 50,000,000 00 1,144.920.22 1,357,22267 $ -1,357,22267 755,346.25 5 51 ,200,266 47 $ 670,48746 -670,48746 000 S 46.689,76742 $ 3,679.966 39 64,36760 $ 47.568,346 71 $ -70,358 26 56366 14,548,017 15 14,672,071 23 -2,61629 7,12998 10,82426 -6,471 99 -58,048 09 S 51J.369?33 81 $ 64,93126 $ 62,120.Sn 55 S 14,548,017 15 -5- CARROLL COUNTy BOARD OF EQUCATION COMBINER STATEMENT OF REVENUES EXPENDITIJRES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - (NON-GMP BMIS) GENERAL ANp SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002 EXHIBIT -c- The notes to the general-purpose fUlanoal statements are an Integral part of ttns statement - 7- CARROLL COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002 EXHIBIT "D" OPERATING REVENUES None Recorded OPERATING EXPENSES None Recorded Operabng Income NONOPERATING REVENUES Intemst Earned Net Income FUND BALANCE JULY 1 FUND BALANCE JUNE 30 CARROLL COUNTY BOARD OF EDUCATION TEACHER DEVELOPMENT SCHOLARSHIP FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 $ 000 1,59698 1,59698 1,57982 $ 1,59698 $ 1,59698 $ 1,57982 32,48990 32,48990 30,91008 $ 34,08688 $ 34,086 88 $ _ .....3. .2.,4.:;;;89;;,,;;;9.0 . The notes to the general-purpose financlal statements are an .ntegral part of thIS statement -8- CARROLL COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002 EXHIBIT "E" Cash Flows from Operahng Ac1lvrt,es Cash Flows from Invesbng Ac1IvrtJes Interest ReceIVed on Investments Purchase of Investments Sale of Investments Net Cash Prov,ded by Investment Ac1Iv,hes Net Increase (Decrease).n Cash Cash and Cash EqUivalents - July 1 Cash and Cash EqUIValents - June 30 CARROLL COUNTY BOARD OF EDUCATION TEACHER DEVELOPMENT SCHOLARSHIP FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 000 $ 000 $ 000 $ 1,59698 $ 1,59698 $ 1,57982 -31,82340 -31,82340 -30,250 28 30,25028 30,250 28 28,70000 $ 2386 $ 2386 $ 2954 $ 2386 $ 2386 $ 2954 2,23962 2,23962 2,21008 $ 2,26348 $ 2,263 48 $ 2.-,2.3.9...-62:;.. The notes to the genera~purposefinancial statements are an Integral part of th,s statement -9- CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Notc I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Carron County Board ofEducatIOn (School Dlstnct) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appomted by the Board The School Dlstnct IS organized as a separate legal enlity and has the power to levy taxes and Issue bonds Its budget IS not subject to approvaJ by any other enlity Accordmgly, the School Dlstnct IS a pnrnary government and consIsts of an the orgaruzalions that composc ItS lcgal entity FUND ACCOUNTING The School Dlstnct uses funds and an account group to report on ItS financial posllion and the results of Its operatIOns Fund accountmg IS designed to demonstrate legal compliance and to aId finanCial managernent by segregaling transaclions related to certam governmcntal funclions or acliVIlics A fund IS a separate accounling enlity With a self-balancmg set of accounts An account group IS a finanCIal reportmg deVIce designed to provide accountability for certam assets and lIabllllies that are not recorded 10 the funds because they do not directly affect expendable available finanCIal resources General Fixed Assets are recorded as expenditures 10 thc vanous funds at the time of purchase. A General Fixed Assets Account Group IS not prcsently maIntaIned by the School Dlstnct To confonn to generally accepted accountmg pnnclples, a General Fixed Assets Account Group should bc maIntamed for reportmg thc cost of assets acqUIred by governmental fund typcs Although "school acliVIty accounts" are maIntaIned at the mdlvldual schools, neither the assets, lIabllllies and fund eqUity, nor the revenues, expenditures and changes 10 fund balances of these accounts are reflected 10 these finanCial statements To confonn to gcnerally accepted accountmg pnnclples, these accounts should be recorded 10 the generaJ-purpose finanCial statements The general-purpose finanCial statements account for aJl State, Federal, Taxes and Other funds under control of the School Dlstnct, 10 compliance With generally accepted accountmg pnnclples applicable to governmental umts, unless otherwise disclosed 10 thcse notes Funds and the account group presented 10 thiS report are as follows' GOVERNMENTAL FUND TYPES - are used to account for all or most of the School DIstrIct's educalional aclIvltles Governmental Fund Types mclude GENERAL FUND - the fund used to account for all finanCial resources of the School District except those reqUired to be accounted for 10 another fund These transaclions relate to resources obtaIned and used for services prOVided by a board of educallon - 10- CARROLL COUNTY BOARD OF EDUCAnON EXHIBIT "F" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNTFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that arc legally restncted to expenditures for specified purposes These funds are received pnmanly from the Georgia Department of EducatIOn and from the Federal government to accomplish specific educal10nal objecl1ves CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqulSll10n or constructIOn of major capital faclhtles DEBT SERVICE FUND - the fund used to account for the accumulal10n ofresources for, and the payment of, general long-term pnnclpal, Interest and paYing agent fees FIDUCIARY FUND TYPES - the funds used to account for assets held by a government umt In a trustee capacity or as an agent for individuals, pnvate organizations, other government uruts and/or other funds These funds Include NONEXPENDABLETRUSTFUND Carroll County Board of Education Teacher Development Scholarship Fund - the fund used to account for an endowment of which the corpus IS to be Invested and preserved Intact WIth the resultant Income to be used to asSiSt State UmvefSlty of West Georglajuruors and semors who have committed to a career In education or to veteran teachers who are returnmg to school to upgrade their teaching credentIals AGENCY FUNDS - the funds used to account for assets held In a fidUCiary capacity for other funds, governments, or indiViduals ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A finanCial reporting deVIce used to account for general obhgatlOn debt outstanding, accrued compensated absences and capital lease obhgatlOns BASIS OF ACCOUNTING Thc accounting and finanCial reportmg treatment apphed to a fund IS determmed 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 hablhtles generally are Included on the balance sheet Operating statements ofthese funds present mcreases (I e., revenues and other finanCing sources) and decreases (I e ,expenditures and other finanemg uses) m net current assets Their reported fund balance IS conSidered a measure of av:ulable spendable resources Liabilities which are expected to be financed from av:ulable spendable resources are reported as hablhtlcs In the governmental funds Other hablhtles, which are not expected to be fmaneed from available spendable resources, are reported In the General Long-Term Debt Account Group - 11 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES All nonexpendable trust funds are accounted for on a flow of economIc resources measurement focus With tlns measurement focus, all assets and hablhues associated With the operal1on of these funds are mcluded on the balance sheet Operatmg statements present mcreases (e g., revenues) and decreases (e.g, expenses) m net total assets. Agency funds are purely custodIal m nature and do not mvolve measurement ofresults ofoperanons Governmental funds are accounted for usmg the modified accrual basiS of accountrng under whIch' Revenues are recognIzed when suscepl1ble to accrual (I e when they become both measurable and avaJlable) "Measurable" means the amount of the transactIOn can be determmed and "avaJlable" means collecl1ble Wlthm the current penod or soon enough thercafter to be used to pay hablhtles of the current penod. The School Dlstnct consIders receIvables collected Wlthm sIxty days after yearend to be available. Propcrty taxcs, sales taxes and mterest are conSidered to be susceptible to accrual. Nonexchange transactions, m whIch the School Dlstnct gives (or receIves) value Without drrectly receIVIng (or glvmg) equal value m exchange, mclude property taxes, local opl1on sales taxes, mtergovernmental grants and donations Revenue for property taxes IS recogruzed 10 the fiscal year for whIch the taxes are leVIed Revenue from sales taxes IS recognized m the fiscal year the resources are received or suscepnble to accrual. Revenue from grants and donanons IS recogrnzed 10 the fiscal year m wruch all ehglblhty requrrements have been satisfied. Expenditures are generally recogrnzed when the related fund hablhty IS mcurred A departure from the above defimnons IS the accountmg treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources avaJlable from the Georgia Department of Educanon for the State's share of these contracts Dunng fiscal year 2002, a substannal number ofpersonnel ofthe School Dlstnct were employed for a one hundred and mnety day penod beglnnmg m August 2001 and endmg m early June 2002 Personnel contrdcts for thIS employment penod specIfy that compensanon be paId m twelve equal monthly payments beglnnmg m September 2001 and endmg m August 2002 State grants to fund the State's share of these contracts were dIsbursed from the Georgia Department of Educanon to the School Dlstnct m the same twelve months As of June 30, 2002, compensatlon under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School Dlstnct subsequent to June 30. 2002. Also, the State's portIOn of the compensatIOn paid m July and August 2002 was receIved and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the slmJlar expenditures and related revenues for contractJ1al serVIces completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002. Generally accepted accountmg pnnclples reqUIre that revenucs bc recorded when aVailable and measurable and that expenditures be recorded when mcurred. rather than when funds are received or disbursed. - 12 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accrual basis of accounting, as reqUIred by generally accepted accountmg pnnclples,ls utilIzed by nonexpendable trust funds Under the accrual basis of accountmg, revenues are recorded when earned and expenses arc recorded at the time lIabilIties are Incurred Agency funds are accounted for uSing the modi/ied accrual basiS ofaccountmg m recogmzmg assets and liabilities BUDGET The Carroll County Board of Education's budget IS a complete finanCial plan for the School Dlstnct's fiscal year and IS based upon estimates of expenditures together With probable funding sources There IS no statutory prohibition regardmg overexpendJture of the budget at any level The budget for all governmental funds IS prepared by fund, function and object. The legal level of budget control was cstablished by the Board at the aggregate level The budget for governmental funds was prepared on a basiS other than generally accepted accountmg pnnclples The budget process beginS when the School Dlstnct's admmlstratlOn prepares a tentative budget for the Board's approval After approval ofthls tentative budget by the Board, such budget IS advertIsed at least once m a newspaper of general CIrculatIOn m the locality. At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentative budget, makes reVISions as necessary and adopts a final school budget ThiS final budgct 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 Thc Board may Increase or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash eqUIvalents consist ofcash on hand, demand depoSits and short-term Investments With ongmal matuntles of three months or less from the date of acqUIsition m authonzed finanCial mstitutlOns Georgia Laws OCGA 45-8- I4 authonze the School Dlstnct to depOSit Its funds m one or more solvent banks or msured Federal savmgs and loan asSOCIatIOns INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School Dlstnct m nonparticipating mterest-earmng contracts (such as certificates of depOSIt) and repurchase agreements are reported at cost. ParticIpating mterest-earnmg contracts and money market mvestinents With a matunty at purchase ofone year or less are reported at amortized cost Both partlclpatmg Intcrest-earnmg contracts and money market mvestments With a matunty at purchase greater than one year are reported at faIr value Thc OffiCial Code of Georgia Annotated SectIOn 36-83-4 authonzes the School Dlstnct to mvest Its funds and In selecting among - 13 - CARROLL COUNTY BOARD OF EDUCATION EXHffirr "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Notc I' SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES optIons for mvestment or among msntutlOnal bids for depOSitS, the lughest rate ofreturn shall be the obJecnve, gIven eqUivalent conditIons of safety and hqUldlty. Funds may be Invested m the followmg (1) Obhganons Issued by the State of Georgia or by other states, (2) ObhgatIons ISSUed by the Umted States government, (3) Obhganons fully msured or guaranteed by the Umted States government or a United States government agency, (4) ObhgatlOns of any corporatIOn of the Umted States government, (5) Pnrne banker's acceptances, (6) The Local Government Investment Pool admmlstered by the State of Georgia, Office of Treasury and Fiscal Services, (7) Repurchase agreemcnts, and (8) ObhgatIons of other pohtIcal subdiVIsions of the State of Georgia RECEIVABLES Receivables consIst of grant reimbursements due on Federal, State or other grants for expendItures made but not reimbursed and other receIvables disclosed from mfonnatlon aVailable. Recclvablcs are recorded when eIther the asset or revenue recoglUtIon cntena has been met Receivables recorded on the gcneral-purpose financial statements do not mclude any amounts which would necessItate the need for an allowance for uncollectIble receivables PROPERTY TAXES The Carroll County Board ofCommIssioners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 18, 2001 (levy datc) Taxes were due on December 20,2001 (hen date) Taxes collected wlthm the current fiscal year or wlthm 60 days after year-end on the 2001 tax dIgest are reported as revenuc m fiscal year 2002 The Carroll County Tax CommISSIOner bills and collects the property taxes for the School DIStnct, Withholds 1% of taxes collected as a fee for tax collectIon and remits the balance of taxes collected to the School Dlstnct Property tax revenues durmg the fiscaJ year endcd June 30, 2002 for maintenance and operanons amounted to $21,395,507,24 The tax nullage rate leVied for the 2001 tax year (calendar year) for the Carroll County Board of EducatIon was as follows (a mill equals $1 per thousand dollars of assessed value) - 14 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES School Operahons Wmills SALES TAXES SpecIal Purpose Local OptlOn Sales Tax revenue dunng the year amounted to $8,964,4 I 2 69 and IS to be used for capItal outlay for educatIOnal purposes or debt service This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIES Inventones of donated food commodlhes used m the preparatIOn of meals are reported on the Combmed Balance Sheet at theIr Federally assIgned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commodItIes are recorded as revenues and expendItures at the tIme commodity Items are receIved Purchased foods mventones are recorded as expendItures at the tIme ofpurchase The mventones reported on the balance sheet for donated food commodlhes and for purchased foods are equally offset by reservatIOns of fund balance whIch mdlcates that these amounts do not constItute "available spendable resources" even though they are a component of net current assets COMPENSATED ABSENCES Compensated absences represent obhgahons ofthe School Dlstnct relatmg to employees' nghts to recel ve compensahon for future absences based upon service already rendered Tlus obhgatlOn relates only to vestmg accumulatmg leave m whIch payment IS probable and can be reasonably estlmated No habIllty has been recorded m the mdlVldual funds for the current portlon of thIS obhgahon as tlus amount IS deemed Immatenal to the general-purpose financIal statements GENERAL OBLIGATION BONDS The School Dlstnct Issues general obhgahon bonds to provide funds for the acqUlslhon and constructIOn ofma]or capital faclhtles Bond premIums and diSCOunts, as well as Issuance costs, are recognized m the financIal statements dunng the year bonds are ISSUed General obhgahon bonds are dIrect obhgahons and pledge the full faIth and credit ofthe government Thc outstandIng amount of these bonds IS recorded m the General Long-Term Debt Account Group INTERFUND TRANSACTIONS The School Dlstnct has the followmg types of mterfund transactlons Reimbursements of expendItures/expenses Imtlally made from a fund that are properly apphcable to another fund are recorded as expenditures/expenses m the relmbursmg fund and as reductIOns of expendItures/expenses m the fund that IS reImbursed - 15 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Operating transfers are recorded for all mterfund transactIons other than relrnbursements. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the general-purpose finanCial statements are captIoned "Memorandum Only" to mdlcate that they are presented only to faclhtate finanCial analYSiS Data m these columns do not present finanCial posItIon, results of operatIons or cash flows m conformity With generally accepted accountmg pnnclples Neither are such data comparable to a consohdatlOn Interfund ehmmations have not been made m the aggregatIOn ofthiS data. Certam reclasSificatIOns have been made to the comparanve data to conform to the current year c1asslficanons Note 2. DEPOSITS AND INVESTMENTS COLLATERALIZATION OF DEPOSITS OffiCial Code of Georgia Annotated (OCGA) SectIon 45-8-12 proVIdes that there shall not be on deposit at any tIme m any depOSitory for a tIme longer than ten days a sum of money wluch has not been secured by surety bond, by guarantee of Insurance, or by collateral The aggregate ofthe face value of such surety bond and the market value of secunnes pledged shall be equal to not less than 110 percent of the pubhc funds bemg 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 ofthc secuntIes pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe dally pool balance OCGA SectIon 45-8-II(b) provides an officer holdmg pubhc funds may, in hiS dlscrenon, waive the requirement for secunty m the case of operatmg funds placed m demand depoSit checkmg accounts Acceptable secunty for depOSits COnsiStS of anyone of or any combmanon of the followmg' (I) Surety bond Signed by a surety company duly quahfied and authonzed to transact busmess Wlthm the State of Georgia, (2) Insurance on accounts provided by the Federal DepOSIt Insurance CorporatIOn, (3) Bonds, bIlls, notes, certIficates ofmdebtedness or other direct obhganons of the Umted States or of the State of Georgia, (4) Bonds. bills. notes, certificates of mdebtedness or other obhgatlOns of the countIes or mumclpahtIes of the State of Georgia, (5) Bonds of any pubhc authonty created by the laws of the State of Georgia, provldmg that the statute that created the authonty authonzed the use of the bonds for t1us purpose, (6) Industnal revenue bonds and bonds ofdevelopment authontles created by the laws ofthe State of Georgia, and - 16 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS (7) Bonds, bills, notes, certificates of Indebtedness, or other obligalions of a subSidiary corporatIOn of the Umted States government, which are fully guaranteed by the Uruted States government both as to pnnclpal and Interest or debt obhgallons ISSUed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperallves, the Farm Credit Banks, the Federal Home Loan Mortgage AssociatIOn, and the Federal Nalional Mortgage AssociatIOn CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were 545,747,841 40 Thc amounts of the total bank balances are classified Into three categones of credit nsk: Category 1 - Cash that IS Insured (e g, Federal depository Insurance) or collateralized With secunlles held by the School DIstrict or by the School Dlstnct's agent In the School Dlstnct's name Category 2 - Cash collaterahzed With secuntles hcld by thc pledging financlallnslltutlOn's trust department or agent In the School District's name Category 3 - Uncollaterahzed depOSits (This Includes any bank balance that IS collateralized WIth secunlIes held by the pledging finanCial institutIOn, or by ItS trust department or agent but not In the School Dlstnct's name) The School Dlstnct's depOSits are clasSified by nsk category at June 30, 2002, as follows Risk Category Bank Balance 1 $ 429,18865 2 0,00 3 45,318,652 75 Total $45,747,841,40 CATEGORIZATION OF INVESTMENTS At June 30, 2002. the carrying value of the School Dlstnct's total Invcstments was $18,193,530 25 which IS matenally the same as fair valuc This Investment conSisted enlirely of funds Invested In the Local Government Investment Pool adnurustered by the State ofGeorgia, Office ofTreasury and Fiscal Sel'Vlces which are not reqUired to be categonzed since the School Dlstnct did not own any specific Idenllfiable secunlles In the pool The Investment pohcy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investmcnt Pool (pnmary LiqUidity Portfolio) does not proVide for Investment In denvallves or Similar Investments A descnpllon ofthe Pnmary LiqUidity Portfolio IS as follows - 17 - CARROLL COUNTY BOARD OF EDUCATJON EXHIBIT "F" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2' DEPOSITS AND INVESTMENTS The Pnmary LiqUIdity PortfolIo consIsts of Georgia Fund 1, which IS a combInation local and state government Investment pool, and Fund 6 GeorgIa Fund liS a stable net asset value Investment pool which follows Standard and Poor's cntena for AAAm rated money market funds, The pool IS not registered With the SEC as an Investment company but does operate Georgia Fund I In a manner consistent With Rule 2a-7 ofthe Investment Company Act of 1940 and IS considered to be a Rule 2a7 lIke pool The pool's pnmary obJectlves are safety of capital, Investment Income, lIqUIdity and diversification while mamtanung pnnclpal ($1 00 per share value) Net asset value IS calculated weekly to ensure stability The pool dlstnbutes earnIngs (net ofmanagemcnt fees) on a monthly basiS and values partlclpant's shares sold and redeemed based on $1,00 per share Pooled cash and cash equivalents and mvestments are reported at cost which approximates fair value The pool does not Issue any legally bIndmg guarantees to support the value of the shares ParticipatIOn In the pool IS voluntary and depoSits COnsiSt of funds from local governments, operatmg and trust funds of GeorgIa's state agencies, colleges and unlversltles, and current operatIng funds of the State of Georgia's General Fund Investments In GeorgIa Fund 1 and Fund 6 are dlTected toward short-term Instruments such as U S, Treasury obligations, secuntles ISSUed or guaranteed as to pnnclpal and Interest by the U, S Government or any of ItS agencies or Instrumentalltles, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average matunty for GeorgIa Fund 1 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 The School Dlstnct receives food commodltles from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commodltles are recorded at their Federally asSigned value See Note 1 - Inventories Note 4 RISK MANAGEMENT The 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 Illness or InJunes to employees, acts of God and unemployment compensatlon The School Dlstnct has obtaIned commercial Insurance for nsk ofloss associated With torts, assets and errors or omissions The School Dlstnct has neither Significantly reduced coverage for these nsks nor Incurred losses (settlements) which exceeded the School Dlstnct's Insurance coverage In any of the past three years The School Dlstnct has elcctcd to self-Insure for all losses related to acts of God The School Dlstnct has not expenenced any losses related to thIS nsk m the past three years - 18 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS nJNE 30. 2002 Note 4 RISK MANAGEMENT The School Dlstnct has establIshed a lImIted nsk management program for workers' compensatIon claIms In connection WIth thIS program, a self-msurance reserve has been establIshed wlthm the General Fund by the School Dlstnct The School Dlstnct accounts for claIms wlthm the General Fund WIth expendIture and lIabilIty bemg reported when It IS probable that a loss has occurred, and the amount of that loss can be reasonably estimated An excess coveragc msurance polIcy covers mdlvldual claIms m excess of $250,000 00 loss per occurrence, up to the statutory lImIt Changes m the workers' compensatIOn claIms lIabilIty dunng the last two fiscal years are as follows: 2001 2002 BegInnmg of Year LIabIlIty Claims and Changesm EstImates ClaIms PaId End of Year Llablhtv $ 000 $ 331.91605 $ 331.91605 $ 000 $ 000 $ 381.07141 $ 381.07141 $ 000 The School Dlstnct IS self-msured With regard to unemployment compensation claims The School Dlstnct accounts for claIms WIthIn the General Fund WIth expenditure and lIabIlIty bemg reported when It IS probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated Changes m the unemployment compensatIOn claims lIabilIty dunng the last two fiscal ycars are as follows Beglnnmg of Year LlabllItv ClaIms and Changesm EstImates ClaIms Paid End of Year LlabllItv 2001 2002 $ 000 $ 7.10000 $ 7,100 00 $ 000 $ 000 $ 3.98700 $ 3,98700 $ 000 The School Dlstnct has purchased surety bonds to prOVide additional Insurance coverage as follows PosItion Covered Supenntendent Each Pnnclpal and ASSistant Pnnclpal All Other Employees Amount $ 100,00000 $ 20,00000 S 100,00000 Note 5 GENERAL LONG-TERM DEBT CAPITAL LEASES The Carroll County Board of EducatIOn has entered mto vanous lease agreements as lessee for mobIle classrooms, copIers and HVAC umts These lease agreements qualIfy as capItal leases for accountIng purposes and, therefore, have been recorded at the present value of the future mInImum lease payments as of the date ofthetr Inception - 19 - CARROLL COUNTY BOARD OF EDUCAnON EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 5 GENERAL LONG-TERM DEBT GENERAL OBLIGATION DEBT OUTSTANDING General OblIgatIon Bonds currently outstandIng are as follows Pumose General Government - Senes 1998 General Government - Senes 1999 General Government - Senes 2001 Interest Rates 37%-40% 31% - 3 85% 27% - 3 75% Amount $ 1,705,000.00 2,675,000.00 50,000,000 00 $54.38Q.QOO,OQ The changes In General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows. Balance July I, 2001 Retroactive Restatement of Prior Year Balances Balance July 1,2001 Restated AddItions Capital Leases Annual Leave Earned and Utlhzed (Nel) GO Bonds Deductions Debt Retned Balance June 30. 2002 CapItal Leases Compensated Absences General Obhgatlon Bonds Total S 000 S 2,054.91646 S 8,550,000 00 S10,604.9 16 46 -1645054 02 -1.645.054 02 S 000 S 409,86244 S 8,550,000 00 S 8,959.86244 1,144,92022 1,144.92022 48,61225 48,61225 50,000,000 00 50,000,000 00 II 1 027 53 4.170.000 00 4.281.027 53 $ I Q3~ 89269 S 45847462 $54 389 009 00 $~5 87236738 At June 30, 2002, payments due by fiscal year which Includes pnnclpal and lllterest for these Items are as follows. - 20- CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 5 GENERAL LONG-TERM DEBT Fiscal Year Ended June 30 Capital Leascs General ObligatIOn Bonds Total Debt 2003 2004 2005 2006 2007 2008 - 2012 $ 192,32626 $ 6,211 ,575 00 $ 6,403,901 26 186,601 18 9,330,387 50 9,516,988 68 175,655 95 10,838,29750 11,013,953 45 117,05292 11,372,055.00 11,489, I07.92 117,05292 12,060,29000 12,177,34292 497.474.9\ I 1,941,62500 12.439,099.91 Total Pnnclpal and Interest $ 1,286,164 14 $61,]54,230.00 $63,040,394,14 Deduct Imputed Intcrest 252.271 45 Net Present Value of Future Minimum Lease Payments $ L033.892,69 Note 6 ON-BEHALF PAYMENTS The School Dlstnct has recOgniZed revenues and expendlturcs In the amount of$I,115,571,21 for health Insurance and retirement contnbutlOns paid on the School Dlstnct's behalf by the follOWing State AgenCies Georgia Department of Education Paid to the Georgia Departmcnt ofCommumty Health For Health Insurance ofNon-Ccrtlfied Personnel In the amount of $978,582 21 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$136,989.00 Note 7 SIGNIFICANT COMMITMENTS The follOWing IS an analySIS ofslgmficant outstanding constructIOn or renovatIOn contracts executed by the School Dlstnct as of June 30, 2002 - 21 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS nINE 30, 2002 Note 7- SIGNIFICANT COMMITMENTS ProJect Unearned Executed Contracts Villa RIca Elementary School Renovation Sand HIll Elementary School Renovation Roopville Elementary School Renovation Whitesburg Elementary School Renovation Sharp Creek Elementary School AddItion VIlla RIca Pnrnary School AddItion $ 1,093,042 65 694,73390 1,125,76823 929,60943 914,92325 133,441 67 $ 4,891,519,13 The amounts descnbed m thIS note are not reflected ill thc general-purpose financIal statements Note 8 CONTINGENT LIABILITIES Amounts receIved or recelvablc 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 terms The School Dlstnct behcves that such disallowances, If any, Will be Immatenal to ItS overall finanCial posItion The School Dlstnct IS a defendant m vanous legal proceedmgs pertammg to matters mCldentai to the performancc ofroutme School Dlstnct operations The ultimate dIspOSItion ofthesc proceedmgs IS not presently determmable, but IS not beheved to be matenal to the general-purpose finanCIal statements Note 9- ACCUMULATED EMPLOYEES' LEAVE All ehglble employees earn annual leave at a rate of 84 days per month of servIce MaxImum accumulatIOns for clasSIfied and certified employees are twenty and twenty-five days respectively for annual leave An employee Will be paId for unused accumulated annual leave at their current rate of pay If the employee leaves the system m good standmg See Note 1 - Compensated Absences Note 10 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS) TRS PLAN DESCRIPTION Substantially all teachers, admmlstratlve and clencal personnel employed by local school dlstncts are covered by the Teachers Retirement System ofGeorgJa (TRS), which IS a cost-shanng multiple - 22 - CARROLL COUNTY BOARD OF EDUCATION EXHIBIT "F" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 3D. 2002 Note 10 RETIREMENT PLANS employer defined benefit pension plan. TRS provides seIVlce retIrement, disabilIty retIrement and SUrviVOrs bencfits 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 Dlslnct who are covered by TRS are required by State statute to conlnbute 5% of their gross earnmgs to TRS The School Dlslnct makes monthly employer conlnbutIons to TRS at rates adopted by the TRS Board of Trustees m accordance With State statute and as advised by their mdependent actuary The reqUIred employer contnbutIon rate IS 9 24% and employer contnbutlOllS for the current fiscal year and the precedmg two fiscal years are as follows Fiscal Year Percentage Contnbuted ReqUIred ContnbutlOn 2002 2001 2000 100% 100% 100% $ 4,793,960.0 I $ 5,320,592.56 $ 5,122,249 62 - 23 - CARROLL COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET SPECIAl REVENUE FUND JUNE 30, 2002 ASSETS Cash and Cash EquIValents Investments Accounts Receivable Inventones Food Donated Commodrtles Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 863,02784 $ 30,91406 20,000 00 9,54897 292,17328 59,39371 53,54504 $ 1,005]515 56 $ _ ......3;;;;2;,;;;,31,,;;;,0,;;,87;.,34;;-. TotalLJablhtJes and Fund Equity See notes to the general-purpose finanCial statements - 24- $ 1]005:515 56 $ _..-3;,;;20;;;03:0;;,0.8.7"",34-. EXHIBIT "G" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2002 JUNE 3D, 2001 $ 893.941 90 $ 1,061,27968 20,000 00 15,00000 $ 1,199,15987 $ 14,81905 1.515,701 17 652,32847 59,39371 53,54504 62,01000 46,41506 $ 1,199,15987 $ 14,81905 $ 2,542,581 82 $ _ _1.,8.3..7..,.0..3..3..2..1.. $ 764,39214 $ 95,97319 338,109 50 68504 $ 1,199,15987 S 3,42690 $ 3,42690 $ 767,81904 $ 180,16218 829.04233 68504 1,777,70859 $ 299,74580 161,27423 727,72337 10344 1,188,84684 $ 59,39371 $ 62,01000 53,54504 46,41506 $ o00 $ _ _...:1~1l..:::.3.::.:92:..1..:.:5~ 651,934 48 539,761 31 $ 000 $ 11,39215 $ 764,873 23 S _----:64:..:.=.8.L.:,.1.=.86:....::;.37:... $ 1,199,15987 $ 14,81905 $ 2,542,581 82 $ 1,837,03321 - 25- CARROLL 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 Total Revenues EXPENDITURES Current Instruction Support ServiceS Pupil Services Improvement of Instructional Services Educallonal Media ServlCBS General Admlnlstrallon Student Transportallon Services Other Support Services Food Services Operation Communrty SelVlCBS Operallons Total Expenditures Excess of Revenues over (under) Expendllures OTHER FINANCING SOURCES (USES) Operallng Transfers In Operallng Trans(ers Out Total Other Flnancln9 Sources (Uses) Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCIng Uses FUND BALANCE JULY 1 Food Inventory Net Change In Penod Donated Commodilles Purchased Food Residual Equrty Transfer FUND BAlANCE JUNE 30 See notes to the general-purpose financial statements - 26- SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 349,31600 $ 2,577,03875 2,704,40589 1,894,658 51 1,12303 $ 4,948,380 40 $ 2,578,161 78 $ 2,384,572 31 246,098 93 10,42810 $ 4,834,040 10 1,34309 3,561 08 55790 $ 4,834,040 10 $ 2,646,56141 $ 114,34030 $ 68,39963 $ $ $ 114,34030 $ 634.62709 -2,61629 7,129 98 68.39963 68,39963 000 000 $ 753,481 08 $~~~~O~O:;::O~ EXHIBIT -H" FEDERAL PROGRAMS OTHER PROGRAMS TOTAlS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ $ 4,640,117 63 $ 4,640,117 63 $ 49,99604 $ 6,017 32 56,01336 S_':'==J..:...:..:::"";":_ 2,622,522 62 6,467,43056 1,828,084 53 $ 2,827,89740 543,141 63 797,055 84 232,31047 $ 15,317 36 122,26351 24003 103,57198 $ 4,641.79822 $ $ -1,68059 $ $ 5,212,469 71 $ 4,587,81269 49,99604 789,24056 807,48394 283,64960 18,87844 122,821 41 4,834,280 13 103,571 98 591,37676 580,430 66 53733 284,54081 5,44087 116,70187 4,645,92022 199,11385 49,99604 $ 12,172,39577 $ 11[011 ,875 06 6,01732 $ 50,277 40 $ 93,83735 $ 1,68059 $ 70,080 22 $ 146[94917 $ -8,184 45 .a,184 45 -17,54371 $ 1,68059 $ -8,18445 $ 61 ,89577 $ 129,40546 $ 000 $ -2,16713 $ 112,17317 $ 35,56811 000 13,55928 648,18637 666,31408 -2,61629 7,129 98 10,82426 -6,471 99 -58,04809 $ Q 00 $ 764,873 23 $ _ .....6_4_8,1,,;,1.8..6....3..7... - 27- CARROLL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND ,JUNE 30, 2002 ASSETS Cash and Cash Equivalents Investments Accounts Receivable Total Assets LIABILITIES AND FUND EqUITY LIABILITIES Accounts Payable Contracts Payable Retamages Payable TotallJabllltJes FUND EQUITY Fund Balances Reserved For Purpose of Bond Issue For SPLOST Projects Unreserved Designated for Local capital OuUay Undeslgnated Total Fund EqUity Total lIabllrtJes and Fund EqUity REGULAR BOND PROCEEDS $ 741,25150 $ 28,349,31120 18,187,80816 $ $ 46,537,11936 $ 741,251 50 _ _ _ _..::;0..,:0""'0_ 000 $ 741,25150 $ 46,537,11936 $ 741,25150 $ 46.537111936 See notes to the general-purpose flnancial statements - 28- EXHIBIT "I" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 000 $ 1,921,370 92 $ 31,011,93362 $ 2,722,74000 18,187,80816 1,533.41840 1,533.41840 1,550,973 56 $ 000 $ 3.454?8932 $ 50,733,16018 $ 4,273,71356 $ 2,31675 $ 2,31675 160,28304 160,28304 $ 342,90487 200,82658 200,82658 250,84230 $ 363.426 37 $ _---'3=63=,4"2-6"3'7'- $ 593,74717 $ 46,537,11936 $ 3,091,36295 3,091,362 95 $ 3,152,243 37 $ 000 741,25150 527,72302 000 000 000 $ 000 $ 3,091,362 95 $ 50,369,73381 $ 3,679,966 39 $ 000 $ 3.454,78932 $ 50,733,16018 $ 4,273,71356 - 29- CARROLL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES Current Support Services Business Admlnlslrabon Capital Outlay Land and Land Improvements Building and Building Improvements EqUipment Total Expendrtures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Proceeds from General Obhgahon Bonds Par Value Operatln9 Transfers In Operahng Transfers Out Total Other Flnancln9 Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 FUND BALANCE JUNE 30 REGULAR BOND PROCEEDS $ 14,611 00 $ 576,32271 $ 14,611 00 $ 576,32271 $ 434,79613 $ 380,04052 11,14500 47,144 31 $ 380,04052 $ $ -365,42952 $ 493,08544 83,23727 $ 50,000,000 00 $ 578,958 00 -3,546,117 91 $ 578,95800 $ 46,453,882 09 $ 213,52848 $ 46,537,11936 527,72302 000 $ 741,25150 $ 46,537 ,11936 See notes to the genera~purpose finanCial statements - 30- EXHIBIT"J" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 165,000 00 $ 4,462,80019 $ 4,462,800 19 4,515,630 94 S 000 148,83682 739,nO 53 357,071 51 S 000 $ 4,611,63701 $ 5,202,570 72 S 5,037,70245 S 434,79613 $ 743,29310 S 317,15911 140,62500 5,901,94981 415,60832 1,451,637 73 S 6,089,71912 415,608 32 414,73773 6,311,851 71 467,83640 S 883,91810 S 6,634,717 24 S 8,391,76130 S 7,194,42584 $ -883,91810 $ -2,023,08023 $ -3,189,19058 S -2,156,723 39 $ 50,000,000 00 S 883,91810 $ 1,962,19981 3,425,07591 $ 541,08200 -3,546,117 91 $ 883,91810 $ 1,962,19981 S 49,878,95800 $ 541,08200 S 000 S -80,880 42 S 46,689,76742 S -1,615,64139 000 3,152,243 37 3,679,96639 5,295,607 78 s 000 S 3,091,36295 S 50,369,73381 $ 3,679,966 39 -31 - CARROLL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2002 EXHIBIT"K" ASSETS Cash and Cash Equivalents Investments Total Assets FUNP EQUITY Fund Balances Reserved For Deb1 Service Unreserved UndeslQnated Total Fund Equity PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE 30. 2001 $ 000 $ 59,209 17 $ 59,20917 $ 56366 5,722 09 5,722 09 $ 000 $ 64,93126 $ 64,93126 $ _ _.....;563=_6.6.. $ 64,93126 $ 64,931 26 $ 56366 $ O!<.O~O~ 000 000 000 $ 000 $ 64,93126 $ 64,931 26 $ _ _.....:563;::;:.66:;0- See notes to the genera~purposefinanCIal statemen1s - 32- CARROLL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES REBT SERVICE FUND YEAR ENpEP JUNE 30, 2002 EXHIBIT "L" PROPERTY TAXES FOR BOND DEBT SPECiAl PURPOSE LOCAL OPTION SALES TAX TOTAlS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 REVENUES Taxes Other Funds S 4,501,61250 $ 4,501,61250 S 4,470,23250 $ 875 84073 84948 1105 Total Revenues S 875 S 4,502,453.23 S 4,502,461 98 S 4,470,243 55 EXPENDITURES Debt Service Pnnclpal Interest S 4,170,000 00 $ 4,170,000 00 S 3,990,00000 $ DOD 1,023,440 63 1,023,440 63 480,23250 Total expenditures S 000 S 5,193,440 63 $ 5,193,440 63 $ 4,470,23250 Excess of Revenues over (under) expenditures S 875 $ -690,98740 $ -690,97865 $ 1105 OTHER FINANCING SOURCES (USES) Accrued Interest on Bollds Sold OperalJng Transfers In OperalJng Transfers Out S 55,34625 S 55,34625 700,57241 700.572 41 S -572 41 -57241 Total Other FII18nClng Sources (Uses) $ -572 41 $ 755,91866 S 755,346 25 Excess of Revenues and Other FinanCIng Sources over (under) expenditures and Other Flrlandng Uses S -56366 S 64,93126 $ 64.36760 S 1105 FUND BALANCE JULY 1 56366 000 56366 55261 FUND BAlANCE JUNE 30 s 000 S 64,93126 S 64,931 26 S _ _...,;56=3":;:;66:;:,,,. See notes to the general-purpose finandel statements - 33. Cash and Cash Equivalents Investments Tolal Assets CARROLL CQUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30. 2002 EXHIBIT"M" NONEXPENDABLE TRUST FUND CARROU COUNTY BOARD OF EDUCATION TEACHER DEVELOPMENT SCHOLARSHIP FUND AGENCY FUNDS TOTALS JUNE 30, 2002 JUNE 30, 2001 S 2,263 48 S 20,40190 S 22,665 38 S 22,39089 31,82340 12,000 00 43,82340 42,250 2B s 34,086 BB S 32,40190 S 66.468 78 S _ ....6..4.:.6.4.1...1.7_ see notes to ltle g6n8flll-purpose final'lClal statements - 34- CARROLL COUNTY BOARD OF EPUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES FIDUCIARY FUND TYPE - AGENCY FUNDS YEAR ENDED JUNE 30, 2002 EXHIBIT~ Total Assets $ 13,03140 $ 52819 $ 500 00 $ _.....,;1..3..,.0.-.5.9..5.9_ LIABILITIES Funds Held for Others $ 13,03140 $ 52819 $ 500 ()() $ _.....,;1..3..,.0.-.5.9..5.9_ SPECIAL ACTIylTlES ACCOUNT ASSETS Cash and Gash EqUIValents s 1,684 39 $ 8,099 75 $ 4,790 66 $ 4.,9.9.3. ..4.8 _ LIABILITIES Funds Held for Others $ 1,684 39 $ 8,099 75 S 4,79066 $ 4.,9.9.3. .4. .8. . OTHER ACTIVITIES ACCOUNT ASSETS Cash and Cash Equrvalents $ 17:43548 $ 25.41674 $ 28,503 39 $ _ .....1..4..,3.4.8..8..3.. LIABILITIES Funds Held for Others S 17:43548 $ 25,41674 $ 28,503 39 $ _.....,;1_4_,34~8_83-. TOTAbS-AGENCYFUNOS ASSETS Cash and Cash EqUIvalents Investments $ 20,15127 S 34,044 68 S 12,00000 33,794 05 $ 20,40190 12,00000 Total Assets S 32,15127 $ 34,044 68 S 33?94 05 $ _ ....3. .2.A.0.1..9..0.. LIABILITIES Funds Held for Others $ 32,151 27 $ 34,044 68 S 33,794 05 $ _...,;;3;;;2..,;,40-.1..90-. See notes to the general-purpose finanCIal statements - 35- CARROll COUNTY BOARD OF EDUCAT'ON SCHEDULE OF EXPEND'TURES OF FEDERAL AWARDS YEAR ENDED JUNE 39, 2002 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAl REVENUE IN PERIOD EXPENDITURES IN PERIOD AgrIculture. U S Department of Child NutribOn Cluster Pass-Through From Georgia Department of EducabOn Food and Nutnbon Program Food sennces School Breakfast Program National School Lunch Program 10553 10555 NlA $ 594,52521 (2) NlA 1,896,978 38 $ 4,639,51529 (3) Total Child NutrllKln Cluster S 2,491.50359 $ 4,639,51529 Other Programs Pass-Through From Georgia DepartJnent of Educatlon Food and Nutrition Program Food D,strlbubon Program (1) 10550 NlA Pass-Through From Offlce of SChool Readllless Food and NutrrtJon Program Child and Adu~ Car. Food Program 10558 NlA 194.52481 18,3n4g 194,52481 (2) Teta! U S Department of AgrIcullure $ 2,704,40589 $ 4.834,04010 Education, U S Department of SpeCial EducatJon Cluster Pass-Through From Georg.. Department of EducaUon IndiVIduals wtth Dlsablhtles Education Ad Part B - Speaal Educabon Capadly BUlldmg Improvement Flow Through Preschool 84027 84 027 84 173 NlA $ 32,71645 $ 32,71645 NlA 1,195,088 46 1,195,08846 NlA 144 747 50 144,74750 Total Spedal Education Cluster $ 1,372,55241 $ 1.372,55241 Other Programs Pass-Through From Georgla Department of Education Elementary and secondary Educabon Ad Title I Even Start Grants to local Educational Agencies TIlle II Eisenhower ProfesSIOIlal Development Tille III Technology Uteracy Challenge Fund Grants Title VI Innovative Educallon Program Strategl8& Class SIze ReductJon VocaUonal EducaUon Basic Grants to States High School Program Basic Grant 84 213 84 010 84 281 84 318 84298 84 340 84 048 N/A 250,000 00 NlA 2.134,390 20 NlA 85,34761 N/A 123,034 55 NlA 97,05200 NlA 348,57900 N/A 129,45900 250,00000 2,134,390 20 85,34761 12303455 97.05200 348.57900 131,13959 (3) Total U S Department of Educabon $ 454041477 $ 4.542 ,09536 - 36- CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEpERAL AWARDS YEAR ENDED JUNE 30 2902 SCHEDULE "1" FUNDING AGENCY PROGRAMIGRANI CFDA NUMBER PAS5THROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Health and Human services, U S Department of Pass-Through From Carroll County Department of Fam,ly and Children SeMC8s Family PreservalJon and Support SoIVlCOS Tans limited Reunification and Family Vlsttabon 93556 93556 NlA $ 54,85932 $ NlA 44,84354 54,85932 44,84354 Total U S Department of Health and Human Sorvlces $ 99,79286 $ _ _-"9",9,,,,79:<>2,,,,86,,,- Total Federal FlI1anaal Assistance S 7,344,52352 S 9,47583832 N/A = Not Available Notes to the Schedule of ExpendItures of Federal Awards (1) The amounts shatm for the Food Distribution Program represents the Federally asslQned value of nonmonetary asSIStance for donated commochbes receIVed and/or consumed by the system during the current fiscal year (2) Expenchtures for the Chlkl and Adutt Care Food Program and the School Breakfast Program were not matntamed separately and are Included In the 2002 Nabooal School Lunch Program (3) ExpendlbJr8s for this program lndude State. and/or Other Funds Expenditures are not mamtallled by fund source Major Programs are Identified by an estertsk (') In front of the CFDA number The School Dlslnct did nol pIOVIde Feeleral Asslstance 10 any Subreapoent The accompanying schedule of expenditures of Federal awards lndudes the Federal grant acbvlty of the Carroll County Board of Educabon and ts presented on the mochfied accrual baSIS of accounbng whICh IS the basis of accountmg used In the presentation of the general-purpose f1nandal statements See notes to the general-purpose financial statements - 37- ,------------- CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REyENUE YEAR ENDER JUNE 30, 2002 SCHEDULE .X' AGENCYIFUNDING GRANTS Communlly Affairs, Georgia Department of AmeMCorps Funds Governor's Emergency Funds Education, Georg.. Department of Quality BaSIC EducalJon D1red Instructional Cost Kindergarten Program Klndergerten Program - EaMy Intervention Program Pnmary G.-s (1-3) Program PrImary Grades - EeMy Intervenbon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Program - EaMy Intervention Program Middle Grades (&-8) Program Middle SChool (&-8) Program High 5chooI General Educabon (9-12) Program VocalJOnal Laboratory (9-12) Program Students with DlSallllllJes Catogory I Category II category III category IV category V Gifted Student - Category VI Remedial Educabon Program AlternatIve Education Program Special Educabon Supplemental Speech MedICI Genter Program 20 Days Addl\lonallnstructlon Stall and Profes8lOl1aJ Development Indirect Cost Categoncal Grants Pup" Transportation Regular Bus Replacement Nursmg servICeS PrinCIpal Supplements VocabOnal SUp8fV1SOf'S Educabon Equalization Funding Grant Food 5eMceS Other State Programs Apprenbcesh.lp Program Extended Day - Agnculture Extended Day - TechnologylCareer Extended Year - AgrIculture G.-s 4-8 Statewide After School Program Health Insurance K-3 Statewlde Reading Program Mentor Teachers Post 5ecoodary Opbon - SpMng Preschool Handlcapped Program ShortTerm Agncultura Student Achievement - Fourth Thru Eight Grade Tests GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 4,000 00 8,000 00 $ 4,00000 8,000 00 2,275.190 00 1,434.912 00 5.761.08000 3.200.61300 3.577.10700 750.10300 379.798 00 5.609,46900 5,256.230 00 1.329.071 00 265.13900 879.85200 3.723.31200 886.050 00 276.92000 1.769.688 00 151.62300 464.87300 17,750 00 1.133.14600 333,46200 223.91400 6.815.95700 2.275.190 00 1.434.91200 5.761.080 00 3200.61300 3.577.107 00 750.103 00 379.798 00 5.609,46900 5.256.230 00 1.329.071 00 265.13900 879.852 00 3.723.31200 886.050 00 276.92000 1.769.68800 151.62300 464.87300 17.750 00 1133.14600 333.46200 223.91400 6.815.95700 1.736.54700 462,41000 243.336 00 52.77600 54.806 00 4.062.931 00 $ 349.31600 85.000 00 14.37500 41.92900 11.584 00 110.696 52 978.56221 153.696 24 20.04300 5.93900 168 912 00 1.32926 2.604 00 1.736.54700 462,41000 243.336 00 52.77600 54.806 00 4.062.931 00 349.31600 85.000 00 14.37500 41.929 00 11.584 00 110.696 52 978.582 21 153.696 24 20.04300 5.93900 168.91200 1.32926 2.604 00 - 38- CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 SCHEDULE "7' AGENCYIFUNDING GRANTS Education. Georgia Department of Other Slale Programs Student AchleVement- NCEE Contract Student Achievement Travel Technology I Gar..., High Schools That Wor1< Tuition for the Mulll-Hand"oapped Vocabonal-Industry Certification Vocational - Industry certification Agriculture Young Farmer L_ry Programs Aeslstive Technology Computers In the Classroom Office of SChool Readlll8SS Pre-Kindervarten Program Olfice of Treasury and FIScal 5eMCeS Public SChool Employees Rellrement Human Resources, Georgia Department of Family Connection GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAl. S 25,000 00 8064 28,000 00 67.33100 45.00000 12,000 00 55,22300 S 25,000 00 8064 28,000 00 67,331 00 45,000 00 12.000 00 55.22300 S 23.59700 497.986 49 23.59700 497,986 49 2.055,455 26 2,055,45526 136.989 00 136.98900 49.996 04 49,996 04 S 55,104137887 S 2:976,350 79 S 58 080 729 66 see notes to the general-purpose finanCIal statements - 39 CARROLL COUmY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION ALES W PROJECTS YEAR ENDED JUNE 30 2002 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PRQJECT STATUS CARROLL COUmY SCHOOL PROJECTS Maxunum cost 01 546,934 306 25 (Includes capital outlay for bUilding three (3) sdlooIs. acquumg land for schools and additions, Improvements. renovations. modrficabons eOO equipping oIenexlSl!ng schools) $ 46,934,306 25 $ 46[934,306 25 $ 7.716,44718 $ 34,710701 92 Ongoing (1) The SChool O1stnct's oogmal cost estimate as specified In the resolution calltng for the ImposlbOn of the LocaJ Option Sales Tax (2) The School District's current estrmate of total cost for the prOf8d Inetudes all cost from preted Inception to completion (3) The voters 01 Carroll Coonty epproved the Imposition ole 1% sales tax to fuOO the above project and rallra associated debt Amounts expended for thiS pl'OfEld may Include sales tax proceeds. state. local property taxes and/or other funds over the life of the project See notes to the genera~urpose f1nanaal statements - 41 - CARROLL COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EpUCATION PROGRAM (QBEl ALLOTMENTS AND EXPENPITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002 SCHEDULE 4" DESCRIPTION Dtrect IrnItructJonal Programs KJndllrgarten Program KlI'ldergarten Program-Earty IntervenlLon Program Primary Grades (1-3) Program Primary Grade&-Ear1y Intervention (1-3) Progmrn Upper Elementary GI1tdes (4-5) Program Upper- Elementary Grades-Early IntervenUon (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High SChool General Education (~12) Program Vocabonal Lebofatory (~12) Program Students with DlsBbUl1les category I Galegory' II Gategory III Category IV Category V Gifted Student - category VI Remedial Educabon Program Alternative Educabon Program English Speakers of Olhllr Languages (ESOl) TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Staff and ProfessIOnal Development ALlOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL S 2.562,796 00 S 2,139,336 n S 130,70599 S 2.270,04276 1.616.298 00 1.655.017 27 21.15112 1676.16639 6,489.337 00 7.098,242 27 258.52504 7,356,76731 3.605,201 00 3,239,13940 44.40197 3,263.541 37 4,019.25700 4,719,591 43 186.917 22 4,906 50665 854,95100 427.80800 6,318.55900 5,920.667 00 1,497.07900 6.813,67400 1,993,39300 170,78900 523,63700 780,42262 448,06192 6943.895 05 7234,67930 1.624.408 66 361,953 04 905,186 23 5,708,611 74 484.77679 69.696 70 1,641,460 31 270.163 55 709,72560 7,92397 30,67199 280 555 08 471.82415 185.42393 9.97694 15.796 80 77.990 64 30.811 93 13,509 10 34,74563 1.83168 37,42423 94907 788,346 59 478,73391 7,224.450 13 7,706 50345 2,009,63259 371,92998 920,983 03 5786.60236 515,588 72 63,205 80 1.876.225 94 272,01523 747.14983 94907 S 42.813.44600 S 46,434,40865 $ 1 841.13648 S 48,275.54513 1,276,385 00 252,21900 1,726,n936 131,57245 367,654 97 184,27572 2,094,634 33 315,84817 TOTALQSEFORMULAFUNDS $ 44 342,050 00 S 48.292.760 46 $ 2,393.267 17 S 50,686 027 63 (1) Compr156d of State Funds pius Local Frve Mill Share See notes to !he general-purpose finallClBl statements 42 CARROLL COUNTY BOARD OF ERUCATION GENERAL FUND aUALITY BASIC EDUCATION PROGRAM (aBEl ALLOTMENTS AND EXPENDITURES BY SITE YEAR ENDER JUNE 30. 2002 SCHEDULE "5" Sharp Creek Elementary School Jonesville Middle School Temple Middle School Mount ZIOn Elementary School Central Middle School Temple High School Central Evening Program Bay Spnngs Middle School Villa Rica Elementary School Mount Zion High School Roopville Elementary School Whllesburg Elementary School Temple Elementary School Bowdon Elementary School Central High School Bowdon High School Villa Rica Pnmary School Central Elementary School Sand HIli Elementary School Villa Rica High School Carroll County/Carrolnon City A1temabve Technocal High School of Carroll County Central Office (Anemabve Educabon Program) Other Auxlilary Facllrty TOTAL (1) Compnsed of State Funds plus Local Five Mill Share ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS $ 2,399,074 QQ $ 2,642,732 77 1,692,487 QQ 2,018,43970 1,015,670 QQ 949,77007 1,923,00200 2,146,191 16 3,426,733 00 3,672,13374 1,190,85200 1,446,857 52 310,98500 351,021 60 3,054,780 DO 3,313,696 83 1,828,405 DO 1,951,44143 1,357,66600 1,718,50566 1,377,18500 1,508,492 58 1,638,158 DO 1,725,371 37 2,195,812 DO 2,166,34285 2,711,987 DO 2,876,465 79 3,614,306 DO 4,131,39907 1,446,273 DO 1,625,061 29 2,352,304 00 2,441,904 97 3,656,320 DO 4,470,986 43 2,256,63300 2,509,78534 2,841,17700 3,166,39202 624,04333 752,70753 523,63700 65,80208 $ 42,813,44600 $ 48,275,545 13 See notes to the general-purpose finanCIal statements - 43 SECTION II COMPLIANCE AND INfERNAL CONfROL REPORTS U%t1 I W. HINTON STAT[ Al)[)/TOA 1(04)656-217. DEPARTMENT OF AUDITS AND ACCOUNTS 2~4 W..,hmglon Mrcel. S W SUlle 214 Atldnld, Georgia 10334-1!400 June 6, 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of EducatIOn and Supenntendent and Members of the Carroll County Board of EducatIOn REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladles and Gentlemen We have audited the financial statements of Carroll County Board of Education as ofand for the year ended June 30, 2002, and have Issued our report thereon dated Junc 6, 2003 ThIS report was qualIfied for VarIOUS departures from generally accepted accounting pnnclples. as Idcnllfied m the auditor's report on the general-purpose finanCial statements We conducted our audit In accordance with audltmg standards generally accepted In the United States of Amcnca and the standards applIcable to finanCial audits contained In Government Auditing Standards, Issucd by the Comptroller Gcncral of the United States ComplIance As part of obtaining reasonable assurance about whether Carroll County Board of EducatIOn's finanCial statements are free of matenal misstatement, we perfonned tests of ItS complIancc With certain prOVISIOns oflaws, regulallons, contracts and grants, noncomphance With which could have a dIrcct and matenal effect on the detennInatlOn offinancml statcment amounts Howcver, prOViding an opinion on comphance With those proVISIOns was not an objective of our audIt, and accordingly, we do not express such an opinion The results ofour tests disclosed no Instances ofnoncomphance that are requIred to be reported under Government Auditing Standards Internal Control Over FinanCial Reporting In planning and perfonnIng our audIt, we conSIdered Carroll County Board of EducatIOn's mternal control over finanCial reporting In order to detennIne our auditing procedures for the purpose of expreSSing our opmlOn on the finanCial statements and not to proVide assurance on the Internal 2002YB-41 control over financial reportmg However, we noted a certam matter mvolvmg the mternal control over financIal reportmg and Its operation that we consldcr to be a reportable condition Reportable condItions mvolve matters commg to our attention relating to slgruficant deficIencIes m the design or operation ofthe mternal control over finanCIal reporting that, m ourJudgment, could adversely affect Carroll County Board of Education's abIlIty to record, process, summanze and report financial data consistent With assertIOns of management m the financIal statements. The reportable condItIOn IS descnbed m the accompanymg Schedule ofFmdIngs and Questioned Costs as Item FS-622 1-02-01 A matenal weakness IS a condItion m whIch the deSIgn or operatIOn of one or more of the mternal control components does not reduce to a relatively low level the nsk that mIsstatements m amounts that would be matenal m relation to the finanCial statements bemg audIted may occur and not be detected wlthm a timely penod by employees m the normal coursc of performmg theIr asSigned funCtIOns Our conSIderation of the mternal control over finanCIal reportmg would not necessanly dIsclose 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 However, we conSIder Item FS-622 1-02-01 to be a matenal weakness This report IS mtended solely for the mformatlon and use ofthe management, members ofthe Carroll County Board of EducatIOn, Federal awardmg agencIes and pass-through entitIes and IS not mtended to be and should not be used by anyone other than these specIfied partIes Respectfully submItted, ~.~ Rus ell W Hmton State AudItor RWHgp 2002YB-41 Ui>!>H.I. W. HINTON STATE AUDITOR 1404} f:i56-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Wa,htngton Street, S W SUite 214 Atlanta, Georg 30334-8400 June 6. 2003 Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of EducatIOn and Supenntendent and Members of the Carroll 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-l33 Ladles and Gentlemen Compliance We have audited the compliance of Carroll County Board ofEducalion WIth the types ofcompliance reqUirements descnbed m the US Office of Management and Budget (OMB) CIrcular A-J33 Compliance Sr~pplement that are applicable to each of Its major Federal programs for the year ended June 30, 2002 Carroll County Board of Educalion's major Federal programs are Idenlified m the Summary of AudItor's Results Section of the accompanymg Schedule ofFmdmgs and QuestIOned Costs Compliance With the reqwrements of laws, regulatIOns, contracts and grants applicable to each of Its major Federal programs IS the responsibility of Carroll County Board of EducatIOn's management Our responslblltty IS to express an opmlOn on Carroll County Board of Educalion's compliance based on our audIt We conducted our audit of compliance m accordance With audltmg standards generally accepted m the Umted States of Amenca, the standards applicable to financial audits contamed 10 Government Audltmg Standards, Issued by the Comptroller General of the Uruted States, and OMS Circular A133, Audas of States, Local Governments, and Non-Profit OrgamzatlOns Those standards and OMB Clreular A-l33 reqUire that we plan and perform the audit to obtam reasonable assurance about whether noncompliance With the types ofcompliance reqUirements referred to above that could have a direct and matenal effect on a major Federal program occurred An audIt mcludes exammmg. on a test basiS, eVIdence about the Carroll County Board of Education's compliance With those reqUirements and perform109 such other procedures as we conSidered necessary m the Circumstances We believe that our audit proVides a reasonable basiS for our opmlOn Our audit docs not proVide a legal determmatlOn on Carroll County Board of Education's compliance With those reqUirements 2002SA-lO In our opillion, the Carroll County Board of EducatIon comphcd, m all matenal respects, with the reqUirements referred to above that are apphcable to each of Its major Federal programs for the year ended June 30, 2002 Internal Control Over Comphance The management of Carroll County Board of Educallon IS responsible for establishmg and mamtammg effective mternal control over comphance With reqUirements of laws, regulatIOns, contracts and grants applicable to Federal programs In planmng and perfonnmg our audit, we considered Carroll County Board of EducatIOn's mternal control over comphance WIth requirements that could have a direct and matenal effect on a major Federal program m order to detennme our auditIng procedures for the purpose of expressmg our opmlOn on comphance and to test and report on mternal control over comphance m accordance With OMS Cucular A-133. Our conSideration ofthe mternal control over comphanee would not necessanly disclose all matters m the mternal control that might be matenal weaknesses A matenal weakness IS a conditIon In which the deSign or operallon ofone or more ofthe mternal control components does not reduce to a relallvely low level of nsk that noncomphance With apphcable reqUirements of laws, regulallons, contracts and grants that would be matenal m relallon to a major Federal program bemg audited may occur and not be detected wlthm a IImely penod by employees m the nonnal course ofperfonnmg their asSigned funclIons We noted no matters mvolvmg the mternal control over comphance and ItS operatIOn that we consider to be matenal weaknesses Tlus report IS mtended solely for the mfonnatlOn and use ofthe management, members ofthe Carroll County Board of EducatIOn, Federal awarding agencies and pass-through entJtJes 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 RWHgp 2002SA-10 SECfION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS CARROLL 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 QUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-6221-00-0 I FS-6221-0 1-0 I Further ActIon Not Warranted Unresolved - No CorrectIve ActIon Implementcd CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group FindIng Control Number FS-6221-01-01 The School Dlstnct and adnumstratlOn recognize the Importance ofmamtalmng a General Fixed Assets Account Group However, staffing lImitatIons and budgetary consIderatIons preclude our being able to employ suffiCient stafTto carry out the process Therefore, the School Dlstnct chooses not to maintain a General Fixed Assets Account Group SECTION IV FINDINGS AND QUESTIONED COSTS CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2002 SUMMARY OF AUDITOR'S RESULTS I Type of Report Issued on the Fmanclal Statements The audItor's opmlOn on the Carroll County Board of EducatIOn's financial statements was qualified for VarIOUS departures from generally accepted accountmg pnnclples 2 Reportable CondItIons m Internal Control DIsclosed by the AudIt of the Fmanclal Statements The audit report for the Carroll County Board of EducatIOn dIsclosed a finanCIal statement reportable condItIon related to thc followmg control category General FIxed Assets The reportable condItIon descnbed above IS conSIdered to be a matenal weakness. 3 Noncomphance Matenal to the Fmanclal Statements The audIt ofthe Carroll County Board of EducatIon disclosed no mstances ofnoncomphance that were deemed to be matenal to the finanCial statements 4 Reportable CondItIons m Internal Control Over Major Programs The audIt report for the Carroll County Board of EducatIon dId not dIsclose any reportable conditIons m mternal control over major programs 5 Type of Report Issued on Compliance for MalOr Programs The auditor's opmlOn on the Carroll County Board ofEducatIOn's report on comphance WIth requIrements apphcable to major programs was unquahfied 6 Audll Fmdmgs ReqUIred 10 be Reported by SectIon 51O(a) ofOMB Circular A-B3 The Carroll County Board of EducatIOn's audit dId not dIsclose audit findIngs required 10 be reported by sectIon 510(a) ofOMB CIrcular A-B3 7 MajOr Programs Federal awards audIted as major programs are as follows 10553 Food and NutntIon Program - Food ServIces - School Breakfast Program 10 555 Food and Nutntlon Program - Food Services - NatIonal School Lunch Program 84 340 Elementary and Secondary EducatIon Act - Tille VI - Class SIze ReductIon 8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00 9 Low Risk Audltee The Carroll County Board ofEducatIon quahfied as a low nsk audltee as defined by SectIon 530 ofOMB Circular A-B3 -I- CARROLL COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30, 2002 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Reportable ConditIOn - Matena! Weakness Repeated From Pnor Year Fmdmg Control Number' FS-6221-02-0l The Carroll County Board of EducatIOn did not mamtam a system-WIde General Fixed Assets Account Group wlthm the formal accountmg records as reqUired by generally accepted accounting pnnclples Tlus condition results m the general-purpose financial statements ofthe School Dlstnct bemg mcomplete and not m accordance With generally accepted accountmg pnnclples Appropnate actIOn should be taken by the School Dlstnct to estabhsh accountmg controls and procedures to proVide for maintenance of a General Fixed Assets Account Group These SUbSidiary records should melude an mventory of land, bUlldmgs and equipment owned by the School Dlstnct and should mclude, but may not be hmlted to, date acqUired, acquIsitIOn cost, estimated replacement cost, locatIon and descnptlOn Detailed records should be malntamed ofall additIons and deletions to the General Fixed Assets Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported -2-