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

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REPORT ON AUDIT

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CHARLTON 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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS -OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGEl AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL A WARDS 2 SCHEDULE OF STATE REVENUE
or 3 SCHEDULE APPROVED LOCAL OPTION SALES TAX PROJECTS

Page
2
4
6 7
18 20 22
24
26 27 28 30 31

CHARLTON COUNTY BOARD OF LDUCATION - TABLE OF CONTEN IS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

SECTION II
COMPLIANCE AND INTERNAL CONl ROL 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 RE:.QUIREMEN IS APPLICABLF TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

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

SECTION IV FINDINGS AND QUESTIONED COSl ~ SCHEDULE OF f!NDINGS AND QU~.STIONED COSTS

SECTION I FINANCIAL

Rll'>.'-~LI W. lllr-'TON
STATE' AUDITOR (4()4, f,.",t-,.? 74

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W..1.,hmgton Street,!-:> W Suite 214 Atl.m1.1. Gcorg1.1 30334~8400
July I0, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Educallon
and Supenntendent and Members of the Charlton County Board ofEducat10n
INDEPENDENT AUDITOR'S COMBINED REPORl ON GENERAL-PURPOSI:
llNANCIAL STA'! EMEN rs AND SUPPLEME,NTARY INFORMA J'ION -
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanymg general-purpose financial statements of the Charlton County
Board of Educallon, a, of and for the year ended June 30, 2002. as listed m the table of contents
These general-purpose financial statements are the respons1b1lity of the Charlton County Board of [ducallon's management Our responsibility is to express an opm10n on these general-purpose financial statements based on our audn
We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted State~ of Amenca and the standards applicable to financial audns contamed m Government Audnmg Standards. issued by the Comptroller General of the United States. Those standards reqmre that we plan and perform the audn to obtam reasonable as~urance about whether the financial statements are free of matenal misstatement An audit mcludes exammmg, on a test basis, evidence supportmg the amounts and disclosures m the financial statements An audit also mclude~ assessing the accountmg pnnc1ples used and s1gmficant estimates made by management. as well as evaluatmg the overall financial statement prescntat10n We believe that our audit provides a reasonable basis for our op1mon
As descnbed m the notes to the general-purpose financial statements. the Board of Educallon's financial statement~ have been prepared usmg certam accounting pracllce~ and policies which. m our opinion. vary m some respects from generally accepted accountmg pnnciples These\ anance~ arc described fil follows

2002ARL-l3

The general-purpose financial statements of the Board of Educat10n did not contain a General Fr'Ced Assets Account Group to account for property and equipment owned by the Board of Education which should be included to confonn to generally accepted accounting pnnc1ples
School activity accounts maintained at the ind1v1dual schools are not included in the general-purpose financial statements To confonn to generally accepted accounting pnnciples, these accounts should be included in the general-purpose financial statements
The Board of Educat10n did not recognize as expenditures, in the year ended June 30, 2002, a port10n of salanes and the corresponding employer's cost of rela1ed benefits earned for contractual services completed prior 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 review Conversely, the s1m1lar expenditures and related revenues for contractual services completed prior to June 30, 2001, were improperly recorded in the year ended June 30, 2002. To confonn to generally accepted accounting pnnc1ples, 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 omiss10ns have not been detennined, but are believed to be matenal.
In our op1mon, 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 matenal respects, the financial pos1t1on of the Charlton County Board of Education as of June 30, 2002, and the results of its operauons forthc year then ended. in confonn1ty with accounting pnnc1ples generally accepted in the Umted States of America
In accordance with Government Auditing Standards, we have also issued our report dated July 10, 2003, on our cons1derat10n of the Charlton County Board of Education's internal control over financial reporting and our tests of its compliance with certain prov1s10ns of laws, regulat10ns, contracts and grants. That report 1s an integral part of an audit performed in accordance with Government Audiung Standards and ~hould be read in conJuncuon with th.is report in cons1denng the results of our audit.
Our audit was pcrfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Charlton County Board of Education taken as a whole The accompanying combining statements (Exhibits E through J) and the fmanc1al schedules (Schedules 1 through 5). which includes the Schedule of Expenditures of Federal Awards as reqmred by U S Office of Management and Budget Circular A-133, Audzlf o,[Stales, Local GovernmenH. and Non-Profit Orgamzatwns, are presented for purposes of add1t10nal analys1 ~ and are not a reqmred part of the
2002ARL-13

general-purpose financial statements Such mfonnauon has been subjected to the aud1tmg procedures applied m the audit ofthe general-purpose financial statements and m our opinion, except for the effects of the matters referred to in the third paragraph, such information 1s fairly stated, mall matenal respects, in relation to the general-purpose financial statements taken as a whole

A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 506-24.

Respectfully submitted,

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RWHas 2002ARL-13

CHARLTON COUN rY BOARD OF EDUCATION

CHARLTON COUNTY BOARD OF EDUCATION
COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30 2002

ASSETS
Cash end Cash Equivalents
Accounts Rece,veble
lnventones Food Donated Commodmes Pu'chased Food
Amolalt Available an Debt SeMCe Fund
Amount to be ProVJCled 1n Future Years For Payment of Bond Debt
Total Assets
LIABILITIES AND FUND EQUITY
LIABILJTIES
Gash Ovenlraft Accounts Payable Safenes Payable Expcred Grant Balances Payable Deterred Revenue Contrects Payable Reta,nages Payable General Ob/,gellon Bonds Payable
Total l.Jablilles
FUND EQUITY
Fund Balances Reserved For Debt SelVICe For lnventones Food Donated Commodlbes Purdiaaed Food For SPLOST Projects Unreserved Undes,gnated
Total Fund Equdy

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,905,953 81 S 266,809 82 S

699 197 67

135,094 05

61,200 01

7 773 89 12,206 39

------- $ 204104786 $ 347 990 11 S

699 197 67

$

28,926 55

122,258 00

2,803 20

s 153 987 75

s
s 2 041 047 86 s 2 04104786 s

7 773 89 12 206 39
s
174 022 08
194 002 36 $

627,930 00 71,267 67
699 197 67

Total Liabl- and Fund Equity

$ 2041,04786 $

s 341 990 11 _~s_9_9_1_9_1.s.1...

The notes to the genera~ finanaal statements are an mtegral part of this statement
-2-

EXHIBIT"A"

DEBT SERVICE
FUND

$

138,696 01

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On!):)

JUNE 30, 2002

JUNE 30, 2001

s s 2,871,961 30

3 290 834 62

334,990 07

348,618 37

s

6 633 20

1 058,366 80

7,TT3 89 12,206 39
6,633 20
1 058 366 80

12,990 60 7,852 26
23 093 39
2 016 906 61

s

138 696 01 $

1 065 000 00 S 4 291 931 65 S 5 700 295 75

s

132,062 81

s

s

s 13206281

s
1,065,000 00
s 1 065 000 00

s 132 062 81
28 926 55 122,258 00
2 803 20
1 065 000 00
s 1,351,060 56

53 357 90 32,020 42 134 333 24
1,762 34 167 27
78 444 12 17 363 00 2,040 000 00
2 357 448 29

s

6,633 20

000

s

6 633 20

s

6,633 20 $

23,093 39

7,TT3 89 12,206 39 627,930 00

12,990 60 7,852 26
710,549 01

2 286 337 61

2 588 362 30

$ 2,940,881 09 $ 3 342 847 46

s

138 696 01 $

1065000 00 S 4,291,931 65 $ 5,700,295 75

-3-

CHARLTON COUNTY BOARD OF EDUCATION COMBINED STATEMENT Of REVENUES. EXPENDITURES ANO CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current
lnstrucbon Support Services
Pupil SeMCeS Improvement of Instructional SeMces
EducabonaJ Media Services General Administration Sdloot Administration Bus,nes.s AdmlnistrabOn Matntenance and Operatton of Plant
Student Transportabon Services Other Support Services Food Services Operaton Ceprtal Outlay Debt Serv,ce Prtnapal Interest Paying Agent Fees
TotalExpendrttns
Excess of Revenues over (<roder) Expenditures
OTHER F\NANCING SOURCES <USES)
Operating Transfers In Operatng Transfers Out
Total Other Fonancing Sources (Uses)
Excess of Revenues and Other Fnencmg Sources over (under) Expenditures and Other Fnenclng U&eS
FUND BALANCE JULY 1
Food Inventory- Net Change il Panod Donated Commodrties Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 9,004 935 53 $ 42 793 50
2,571,683 48 109,214 87
s 11,728,627 38 $

493,375 70 1.275, 146 71
208,131 66
1 976 654 07

$ 7,575,167 22 $
315,589 97 253,179 57 436 484 78 311,144.27 911,235 77
68,854 00 880,174 73 564,219 45
26,734 00

841,412 28
174,183 28 128,529 93 63,443 31
1,220 18
3,284 90 449 58
771,353 79

$ 11,342 783 76 $

$

385,84362 $

1,983,877.25 -7.223 18

$

$

-304,680 30

$

-304,680 30 $

4,680 30 4 680 30

$

81,163 32 $

1,959,884 54

-2,542 88 197,407 72

-5,216 61 4 354 13

FUND BALANCE JUNE 30

$

s___ 2 041 041 as

1_94.._00_2...,36,_

11

The notes to the general-purpose financial statements are an mtegral pa.rt of this statement -4 -

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

s 9,498,311 23 $ 8,829,866 43

s

948,335 55

1 317,940 21 3,520,019 03

1,368,471 70 3,517,764 90

$

30,447 96

1,979 33

349,773 82

386,063 67

$

30447 96 $

s 950 314 88

14,686,044 29 $ 14 102 166 70

s 8,416,579 50 $ 7,875,566 68

s

687,347 86

489,773 25 381,709 50 499,928 09 312,364 45 911,235 77 68,854 00 880,174 73 567,504 35
27,183 58 771,353 79 687,347 86

533,629 96 461,783 21 452,003 21 288,825 20 775,069 21
64,439 02 887,004 31 614,343 57
27,836 74 754,208 86 273,85842

$

975,000 00

92,348 56

5,790 75

975,000 00 92,348 56 5,790 75

875,000 00 131,470 00
1 181 85

s

s s s 687 347 86

1,073,139 31

15,087,148 18

14,016,220 24

$

-656 899 90 $

s -122,824 43

-401103 89 $

85,94646

s

s 193,635 76

106,364 24 $

304 680 30 $

316,664.22

-304 680 30

-316,664 22

s

193,635 76 $

106,364 24 $

000 s

000

s -463,264 14 $
1 162 461 81

s -16,460 19
23,093 39

-401,103 89 $ 3,342,847 46

85,946 46 3 254 595 28

-5 216 61 4,354 13

1,628 27 67745

s

699197 67 $

663320 S

-5-

Cf!ARLTON COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - <NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Fl.llds Federal FI.Rlds Taxes Other Fund&

$ 8 838,130 00 $ 47,803 50
2 565 905 00 50 000 00

9,004,935 53 42 793 50
2,571,683 48 109 214 87

T01al Revenu..

$ 11,501,838 50 $ 11728627 38

EXPENDITURES

Current Instruction Support Services Pupi Services Improvement ol lnstrucbonel SeMC8S Educabonal Media SerVTC<>S General A1Jm1nistrabon School AdmlnistrabOn Business Adm1111strauon Maintenance and Operabon of Plant 51uden1 Transportallon Services Other Support Services Food Serv,ces Operation Capital Outlay
Total Expenditures
Excess of Revenues over (undar) Expenditures

$ 7 497,254 65 $ 7 575 167 22

394,604 96 279 929 99 457 092 49 333,260 94 904,904 25
77,04008 985,261 86 676,297 43
26,734 00

315,589 97 253,179 57 438,464 78 311,144 27 911,23577 66 854 00 880,174 73 564.219 45 26,734 00

300,000 00

$ 11,932,580 65 $ 11 342 783 78

$ -430 742 15 $ 385 643 62

OTHER FINANCltjG SOURCES IUSESl
Other Sources Other lJaes
Total Other Fmaoc,ng Sources (Uses)

$ -304 880 30
s -304 680 30

Excess of Rewnu.. and Other Financing Sources

over (under) Expenditures and OU,er Financing

Uses

$ -430 74215 $

81,163 32

FUND BALANCE JULY 1 2001

1,940 597 51

1 959,864 54

Adjuotrnents Food lnvento,y - Nat Change 111 Penod
Dona1ed Comroodille& Purchased Food

~3923

FUND BALANCE JUNE 30 2002

$ 1 509 216 13 $ 2 041 047 86

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 458 003 40 $ 493,375 70

1 470,310 00

1.275,14671

258,266 00

208 131 66

$ 2 186,579 40 $ 1,978,654 07

$ 924 904 40 $ 641,412 28

174 369 00 198 550 00 49,400 00
3,000 00

174 183 26 128 529 93 83 443 31
1 220 18

10000 4,002 00 878 158 96

3,264 90 449 58
771 353 79

$ 2 232,484 36 $ 1,983 877 25

s $ -45 904 96

-7.223 18

$

800 00 $

4,880 30

s

80000 $

4 680 30

$ -45,104 96 $ -2 542 88

201,995 94

197,407 72

12 574 59

-5 216 61 4 354 13

$ 169 465 57 $ 194,002 38

The notes to the general-purpose flnanaal stalement& are an Integral part of this statement
- 6-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Charlton County Board of Education (School District) was established under the laws of the State of Georgia and operates under the gmdance of a school board elected by the voters and a Superintendent appointed by the Board The School District 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s 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 use~ funds and an account group to report on its financial position and the results of its operations Fund accounting 1s designed to demonstrate legal compliance and to aid financial management by segregating transact10ns related to certain governmental funcllons or activities A fund 1s a separate accounting entity with a self-balancing set of accounts An account group 1~ a financial reporting device designed to provide accountability for certain assets and hab1li11es that arc not recorded in the funds because they do not directly affect expendable available financial resources
General Fixed Assets are recorded as expenditures in the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mamtamed by the School D1stnct To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintamed for reportmg the cost of asset~ acqmrcd by governmental fund types
Although "school activity accounts" are maintamed at the ind1v1dual schools, neither the asset~, liabilities and fund eqmty, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accountmg prmc1ples, these accounts should be recorded in the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, faxes and Other funds under control of the School District m comphancc with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes Funds and the account group presented m this report are as follo\\is
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educa!Ional activities Governmental Fund 1 ypes include
GENI:RAL 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 transac!lons relate to resources obtained and used for services provided by a board of educat10n

-7-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restncted to expenditures for specified purposes These funds are received primanly from the Georgia Department of EducatJon and from the Federal government to accomplish specific educational objectives
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms11Ion or construction of major capital fac1ht1es
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term pnnc1pal, interest and paying agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgat10n debt outstanding
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied 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 hab1hties generally are included on the balance sheet. Operating statements of these funds present increases (1e . revenue~ 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
L1ab1lit1es which are expected to be financed from available spendable resources are reported as hab1ht1es in the governmental funds Other hab1lit1es. which are not expected to be financed from available spendable resources. are reported 111 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 (1 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 penod or soon enough thereafter to be used to pay hab1ht1es of the current penod The School District considers receivables collected withm sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual Nonexchange transactions, in which the School D1stnct 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 1s recogmzed in the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recogmzed in the fiscal year in which all ehg1b1hty requirements have been satisfied

-8-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures arc generally recogruzed when the related fund liability 1s incurred
A departure from the above definitions 1s the accountmg treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Educat10n for the State's share of these contracts During fiscal year 2002. a substantial number of personnel ofthe School Distnct were employed for a one hundred and mnety day period beginning in August 2001 and endmg m early June 2002 Personnel contracts for this employment period specify that compensallon be paid m twelve equal monthly payments begmnmg in 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 Educallon to the School District m the same twelve months As of June 30, 2002, compensation 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 District subsequent to June 30. 2002 Also, the State's port10n 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 s1m1lar expenditures and related revenues for contractual services completed prior to June 30. 2001, were recorded m the year ended June 30. 2002 Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when mcurred. rather than when funds are received or disbursed
BUDGET
The Charlton County Board of Educauon's budget 1s a complete financial plan for the School D1stnct's fiscal year and is based upon estimates of expenditures together with probable fundmg sources. There is no statutory proh1b1t1on regardmg overexpendlture of the budget at any level The budget for all governmental funds 1s 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 accountmg principles
The budget process begins when the School District's adm1mstrallon prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once m a newspaper ofgeneral circulation in the locality At the next regular meetmg of the Board after adverusement, the Board receives comments on the tentative budget, makes rev1s1ons as necessary and adopl~ a final school budget This final budget is then submitted, m accordance With provisions of the Quality Basic Educallon Act, OCGA Sect10n 20-2-167(c), to the Georgia Department of Educat10n. The Board may increase or decrease the budget at any time during the year All unexpended budget authority lapses at fiscal year-end.

-9-

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

CASH AND CASH EQUIVALEl'iTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-tenn investments with original matuntles of three months or less from the date of acqms1t10n in authonzed financial inst1tut1ons. Georgia Laws OCGA 45-8-14 authorize the School Distnct 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 expenditure~ made but not reimbursed and other receivables disclosed from infonnatlon available Receivables are recorded when either the asset or revenue recognition critena has been met Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectlble receivables

PROPERTY TAXES

The Charlton County Board of Comm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on December 1, 2001(levy date) Taxes were due on March 1, 2002 (lien date) Taxes collected within the current fiscal year or within 60 days after year-end on the 200 I tax digest are reported as revenue in fiscal year 2002 The Charlton County Tax Comm1ss1oner bills and collects the property taxes for the School Distnct and remits taxes collected to the School District Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $2,523,098.66 and for school bonds amounted to $171,444 44

Tax millage rates levied for the 2001 tax year (calendar year) for the Charlton County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations School Bonds

13 475 mills 920 mills

14,395 mills

SALES TAXES

Special Purpose Local Opt10n Sales fax revenue dunng the year amounted to $773,585 70 and 1s 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 rc-authonzed at least every five years

- 10 -

CHARLTON COUNTY BOARD OF EDUCATION_

EXHIBIT "D"

NOTES TO THE Gl:.NERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventones of donated food commod1t1es m,cd m the prcparat10n of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods mventones arc reported on the Combined Balance Sheet at cost (first-in. first-out) Donated food commod11tes are record1..-d as revenues and expenditures at the lime commodity items are received. Purchased foods inventone~ arc recorded as expenditures at the time of purchase. The invcntones reported on the balance sheet for donated food commodmes and for purchased foods are equally offset by reservat10ns of fund balance which indicates that these amounts do not constitute "avatlablc spendable re,ources" even though they arc a component of net current assets
COMPENSATED ABSENCES
Compensated ab:,ences represent obhgat10ns of the School District relating to employees' nghl!. to receive compensat10n for future absence, based upon service already rendered This obhgat1on relates only to vesting accumulating leave in wluch payment 1, probable and can be reasonably e,t1maled. No hab1hty has been recorded in the individual funds for the current portion of this obhgat10n as this amount 1s deemed immatenal to the general-purpose financial statement~
Add1t10nally, the dollar value of accumulated compensated absences at June 30. which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this habihty is also deemed to be 1mmatenal to the faJr prescntat10n of these financial statements
GENERAL OBLIGATION BONDS
The School District issues general obhgation bonds to provide fund, for the acquis1t1on and construct10n ofma1or capital fac1ht1es Bond premmms and discounts, as well as issuance costs. are recognized m the financial statements during the year bonds are issued. General obhgat1on bond, are direct obhgat10ns and pledge the full flllth and credit ofthe government The outstanding amount of these bonds 1s recorded in the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School D1stnct has the following types of mtcrfund transact10ns
Reimbursements ofexpenditures inittally made from a fund that are properly applicable to another fund are recorded as expenditures m the reimbursing fund and a, reducltons of expenditures in the fund that 1~ reimbursed
Operating tramfers are recorded for all interfund transacttons other than reimbursements

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENl S

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statement~ are caphoned "Memorandum Only" to mdicate that they are presented only to facilitate financial analys1~. Data in these columns do not present financial position or results ofoperations m conformity with generally accepted accountmg pnnc1ples. Neither are such data comparable to a consohdat:10n Interfund eliminations have not been made m the aggregahon of this data.
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 m any depository for a Ume longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofmsurance, 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 pubhc funds bemg secured after the deduction ofthe amount ofdeposit insurance
Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe
securities pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holdmg pubhc funds may, m his d1scret1on, waive the reqwrement for security m the case ofoperatmg funds placed in demand deposit checkmg accounts.
Acceptable security for deposits consists of any one of or any combmation of the follo...,1ng.
(I) Surety bond signed by a surety company duly qualified and authorized to transact busmess within the State of Georgia.
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation.
(3) Bonds, bills. notes, certificates of mdebtedness or other direct obhgatwns of the Uruted 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) lndustnal revenue bonds and bonds of development authorities created by the laws of the State of Georgia. and

- 12 -

CHARLTON COUNTY BOARD OF FOUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS

(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgat10ns of a subs1d1ary corporal!on of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and interest or debt obligations 1s~ued 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 Nal!onal Mortgage Associauon

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $3,564,673 93 The amounts ofthe total bank balances are classified mto three categones of credit nsk

Category I - Cash that 1s msured leg., Federal depository msurance) or collateralized with secunlies held by the School D1stnct or by the School D1stnct's agent m the School Distnct's name
Category 2 - Cash collateral1zed with secunl!e~ held by the pledgmg financial mstitution's trust department or agent m the School D1stnct's name
Category 3 - Uncollaterahzed deposits (This includes any bank balance that 1s collateral1zed with secunties held by the pledgmg financial mstitut10n, or by its trust department or agent but not m the School D1stnct's name.)

The School D1stnct's deposits are classified by nsl.. category at June 30, 2002, as follows

Risk Category

Bank Balance

1

$ 100,780 37

2

3.463.893.56

3

0 00

Total

$ 3.564.673,93

Note 3 NON-MONETARY TRANSACTIONS

The School D1stnct receives food commodities from the United States Department of Agnculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally a~s1gned value See Note I - Inventories

Note 4 RISK MANAGEMENT

The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of. damage to, and destruction of assets, errors or omissions, Job related illness or mJunes to employees, acts of God and unemployment compensation.

- 13 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

The School District has obtamed comrncrc1al msurance for nsk ofloss associated with torts, assets, errors or omissions and Job related illness or mJune~ to employees The School D1stnct has neither significantly reduced coverage for these nsks nor incurred losses (settlements) which exceeded the School D1stnct's msurance coverage in any of the past three years

The School District has elected to self-insure for all losses related to acts of God The School D1stnct has not experienced any losses related to this nsk m the past three years

The School D1stnct is self-insured with regard to unemployment compensat10n claims The School D1stnct accounts for claims withm the same fund that the employee's salary and benefits were paid Claims are accounted for with expenditure and habihty being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated

Changes m the unemployment compensat10n claims habihty dunng the last two fiscal years are as follows.

2001 2002

Begmnmg of Year L1ab1hty

Claims and Changes m Estimates

Claims Paid

End of Year Lrnb1hty

$

0 00 $

202 00 $

202 00 $

0 00

$

0 00 $

708 00 $

708 00 $

0 00

The School D1stnct has purchased surety bonds to provide additional msurance coverage as follows

Position Covered

Amount

Supenntendent All Other Employees

$ 50,000 00 $ 25,000 00

Note 5 GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obhgat10n Bonds currently outstandmg are as follows:

Purpose

Interest Rates

Amount

General Government - Senes 1978 General Government - Senes 1998

6.5% 3.70%-4 00%

$ 235,000 00 830,000 00

$ 1.065.000.00

- 14 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

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

General Obligation
Bond~

Balance July I, 200 I

$2,040.000 00

Deductions Debt Retired

975,000 00

Balance June 30, 2002

$J ,065,000,00

At June 30, 2002, payments due by fiscal year which includes pnnc1pal and mterest for these items are as follows

Fiscal Year Ended June 30

General Obligation
Bonds

2003 Note 6 ON-BEHALF PAYMENTS

$ LI 13,595.00

The School District has recogmzed revenues and expenditures m the amount of $126,225 71 for health insurance and retirement contnbut10ns paid on the School D1stnct's behalf by the follov.1ng State Agencies.

Georgia Department of Educat10n Paid to the Georgia Department of Community Health For Health Insurance ofNon-Cerufied Personnel In the amount of $95. 117 55

Paid to the Teachers Retirement system of Georgia For Teachers Retirement System (TRS) l:omployer's Cost In the amount of$ l 1.894 16

Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Reurement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of$19,214 00

- 15 -

CHARLTON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7 CONTINGENT LIABILITIES
Amounts rece1Ved or receivable principally from the Federal government are subject to audit and review by grantor agencies. Tots could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School D1stnct believes that such disallowances, tf any, will be 1mmatenal to its overall financial position.
The School D1stnct is a defendant in variou~ legal proceedings pertaining to matters incidental to the performance ofroutine School District operauons The ultimate d1spos1tion of these proceedings is not presently determinable, but 1s not believed to be material to the general-purpose financial statements
Note 8 SUBSEQUENT EVENTS
In the subsequent fiscal year. voters authonzed the School District to issue general obligation bonds in the amount of $3,000,000.00 The proceeds from these bonds will be used for capital outlay purposes
Note 9 ACCUMULATED EMPLOYEES' LEAVE
The School District's twelve month employees earn vacation leave at the rate ofone day per month with a maximum accumulation of ten days per year. Eleven month employees earn vacation leave at the rate ofone halfday per month with a maximum accumulation of five days per year. A maximum often days ofvacation leave can be carried forward to another year Upon retirement or termination ofemployment. unused accumulated vacallon leave will be paid to the employee at their current rate of pay See Note 1 - Compensated Absences
Note lO RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (fRS)
TRS PLAN DESCRIPTION Substantially all teachers, adm1mstrative and clencal persoilllel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-sharing mulllple employer defined benefit pension plan. TRS provides service retirement. d1sab11ity relirement and survivors benefits for 1ts members m accordance with State statute The reachers Rclirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounb.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contnbutc 5% of their gross earnmgs to TRS The School District makes monthly employer contnbutions to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by their independent actuary The required employer contnbut1on rate is 9.24% and employer contnbut1ons for the current fiscal year and the preceding two fiscal years are as follow~
- 16 -

CHARL fON COUNTY BOARD OF l:.DUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMl:.NTS

JUNE 30, 2002

Note 10 RF11REMENT PLANS
Fiscal Year
2002
2001 2000

Percentage Contnbuted
100% 100% 100%

Reqmred Contnbut,on
$ 713,74795 $ 807,723.75 $ 759,797 74

- 17 -

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

ASSETS Cash and Cash Equivalents Accounts ReceNable lnventones
Food Donated Commod1bes Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

209,988 63 $

59,920 00

7,773 89 12,206 39

s

229,968 91 s_~_5_9_,9_20_00==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total Llab1hbes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commodrties Purchased Food Unreserved Undes,gnated
Total Fund Equrty
Total Uabllrt1es and Fund Equity
See notes to the genera~purpose financial statements - 18 -

$

2,948 55 $

12,882 00

33,018 00

47,038 00

$

35 966 55 $

59,920 00

$

7,773 89

12,206 39

174,022 08 $

000

$

194,002 36 $

0 00

$

229,968 91 s ~ _..5_91_9.2..0...0.0==

EXHIBIT"E"

FEDERAL
PROGRAMS

OTHER
PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

14,66092

$

284,569 55 $

272,228 20

43,440 28 $

17,759 73

61,200 01

87,128 57

7,773 89 12,206 39

12,990 50 7,852 26

$

58,101 20 $

17,759 73 $

365.749 84 $ ==-3_00_.1_9_0_5_,.,,,3

$

17,759 73 $

17,75973 $

15,775 32

$

13,096 00

28,926 55

32,02042

42,202 00

122,256 00

134,333 24

49556

2,803 20

2,803 20

167 27

$

56,101 20 $

17,759 73 $

171,747 48 $

182 791 81

$

7,773 89 $

12,990 50

12,206 39

7,852 26

$

0 00 $ _ _ _ _0~00~

174,022 08

176,564 96

$

000 $

0 00 $

194 002 36 $ _ _1-'-'9"-7.,_.4:.::0.:..7..:.7=--2

$

56,101 20 $

17,759 73 $

365,749 84 $ ===38=0_1._,99-=53=

- 19 -

CHARLTON 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 01her Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnstrucbonal Services Educational Media Services General Adm1mstratlon Student Transportation Services Other Support Services Food Services Operahon
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operahng Transfers In
Excess of Revenues end 01her Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodrt1es Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

50,402 00 $

392,973 70

510,929 41

207,479 50

$

768,810 91 $

392 973 70

$

277,196 29

70,945 65

49,062 48

$

771,353 79

44958

$

771 353 79 $

397,654 00

$

-2,542 88 $

-4,680 30

$

-2,542 88 $

197,407 72

-5,216 61 4,35413

4,680 30
000 0 00

s 194,002 36 s-~~--o_oo_

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

EXHIBIT "F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

$

764,217 30

$

764,217 30 $

50,000 00 $ 65216
50,65216 $

493,375 70 $ 1,275,146 71
208,131 66
1,976,654 07 $

472,166 39 1,326,545 70
197 815 30
1,996,549 39

$

564,215 99

52,585 47 $ 128,529 93
14,380 83 1,22018 3,284 90

$

764,217 30 $

$

000 $

$ 50,65216
50,652 16 $ 000 $

841,412 28 $
174,183 28 128,529 93
63,443 31 1,220 18 3,284 90 449 58
771,353 79
1,983,877 25 $
-7,223 18 $

911,878 46
188,460 28 179,171 14 42,855 91
1,280 51 2,744 00
73390 754 208 86
2,081,333 06
-84,783 67

4,680 30

3210031

$

0 00 $

000 $

-2,542 88 $

-52,683 36

000

000

197,407 72

247,785 36

-5,216 61 4 35413

1,628 27 67745

$

000 $

000 $

194,002 36 $ _ _;1=9~7,.;_40;;;7~7:.:2;.

21 -

CHARLTON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash EquNalents Accounts Receivable
Total Assets
UABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Reta1nages Payable
Total Llab1hltes FUN EOUITY
Fund Balances Reserved For SPLOST ProJects Unreserved Undes1gnated Total Fund Equity
Total L1ab1hlles and Fund Equity

REGULAR

BOND PROCEEDS

s

71,267 67 $

0 00

$

71,267 67 $ -=~=.;.0.;;00.;..

$

71,267 67 $ - - - - -0~ 00

$

71 267 67 $ _ _ ____:Oc...00=--

$

71,26767 $-~~=oaao.o....

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

627,930 00 $

699,197 67 $ 1,175,122 05

83146 88

$

627,930 00 $

699 197 67 $ 1,258,268 93

$

78,44412

17 363 00

$ _ _~9~5~,80~7~12_

$

627,930 00 $

627,930 00 $

710,549 01

000

71,267 67

451 912 80

$

627,930 00 $

699,19767 $ 1,162,46181

$

627,930 00 $

699,197 67 $ 1,258,268 93

- 23 -

CHARLTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES )N FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30. 2002

REVENUES Taxes Other Funds
Total Revenues
EXPENDITURES
Caprtal Outlay Professional and Techmcal Services Insurance Supplies Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Opera!Jng Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

000 $

6.702 73

$

000 $

6 702 73

$

27142536 $

$

27142536 $

$

-271 425 36 $

000 000 6 702 73

$

-109 219 77 $

$

-109,219 77 $

$

-360,645 13 $

45191280

-6,702 73 -6,702 73
000 000

$

11.26767 s--~=_o_o_o_

See notes to the genera~purpose financial statements - 24 -

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

83,146 88

$

23 745 23 $ _ _.::,30::.,.,44-'-'-'-7-=96-=--

36,33646

$

23 745 23 $

30,447 96 $ _ _1,..;1c::;9L-'483-=..:::.34'--

$

338,28440 $

338,284 40

53600

536 00

60,09710

60,09710

$

17 005 00

288,430 36

$

415,922 50 $

687,347 86 $

$

-392 177 27 $

-656,899 90 $

27,328 30 246,530 12
273 858 42
-154,375 08

$

415,922 50 $

415,922 50 $

-106 364 24

-222,286 74

360,353 48 -95,789 57

$

309,558 26 $

193,635 76 $ -~2~84~,56~3~9~1

s

-82,619 01 $

-463,264 14 $

130,188 83

710,549 01

1 162 461 81

1,032,272 98

$

627,930 00 S

699,197 67 $ 1,162,461 81

- 25 -

CHARLTON COUNTY BOARD Of EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 2002

EXHIBIT "I"

e&Slli
C8sh and C8sh Equ,valents Accounts Recervable
Total Assets

PROPERTY TAXES FOR BONO DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

78037

$

78037 $

17,706 72

5 852 83 $

132 843 18

138 696 01

76 451 29

$

663320 S

132,843 18 $

139 476 38 s_-'94=1~59::.0::.1~

LIABILITIES AND FUND EQUITY

LIABILmES

Cash Overdraft

FUNDEQUIJY

Fund Balances

Reserved

For Debi Service

s

Unreserved

Undes,gnated

Total Fund Equity

$

$
6,633 20 000 $
6633 20 $

132 84318 $ 132,84318 $

s
000 000 $

6,633 20 $ 000
6,633 20 $

71 064 62
23,093 39 000
23 093 39

Tolal l.Jabllltles and Fund Equity

s

663320 S

13284318 $

139 476 38 s___94....,1_59_0..,1_

See notes to the general-purpose finanaal statements

-26-

CHARLTON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30 2002

EXHIBIT "J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

REVENUES
Taxes Other Funds
Total Revenues

$ 174 749 85 $ 1 970 71
$ 176,720 56 $

773,585 70 $ B 62
773 594 32 $

948 335 55 $ 1,979 33
950 314 BB $

932,788 78 4 299 79
937 088 57

EXPENDITURES
DebtSeMce Pnnclpal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expendrtures

s 225,000 00 $
29 900 00 730 75
$ 255 630 75 $
s -78 910 19 $

750 000 00 $ 62448 56
5060 00

975 000 00 s
92 348 56
5 790 75

875 000 00 13147000
1 181 85

81750856 $ 107313931 $ 1,007 651 85

-43,914 24 $ -122 824 43 $ -70 563 28

OTHER FINANCING SOURCES

Operabng Transfers In

62,450 00

Excess of Revenues and Other Finanang Sources

over (under) Expenditures

$ -16,460 19 $

FUND BALANCE JULY 1

23,093 39

43 914 24

106 364 24

0 00 $ 000

-16 460 19 $ 23 093 39

-70 563 28 93,656 67

FUND BALANCE JUNE 30

$

6.633 20 $

000 $

6 633 20 $ ___2_3._0..,93_3.,9=-

See notes to the general-purpose financial statements

- 27 -

CHARLTON COUNTY BOARD OF EDUCATION
SCHEDULE Of EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT

CFDA NUMBER

Agrlcultlre, U S Department of Child Nutrttlon Cluster Pass-Through From Georgia Department of Educab1>1 Food end Nutrttlon Program FoodSeMces School - B l Program National School Luncll Program

10553 10 555

T01BI Child Nutrttlon Cluster

Other Programs Paaa-lhrough From Allants-Funon County Zoo, lllCOrJ)()ra1ed Dlstance Leaming and Telemedlane Program Paaa-lhrough From Georgie Department of Education Food end Nutrttlon Program Food Dlatrlbutlon Program (1)

10 855 10 550

Total U S Depabnon1 of Agrlaiture

Educa11on, U S Department of Spodel Educe11on Cluster Pass-Through From Georgm Departtnen1 of Educabon Individuals with Dlsebilties Educa11on A,;/. Part B - Speaal Educo1ion Flow Through Preschool

84 027 84 173

Total Speael Education Cluster

Other Programs Pass-Through From Georgl8 Departtnen1 of Educe1ion Comprahenslve School Reform Demons1ratlon Pro,ec1 Elementary end Seconclary Educanon A,;/. T1tlo I Grant& ID Local Educational Agenaes Trlloll Eloenhowor Professional Developmen1 Title VI Claoa Size Redudlon Innovative Educe11on Program Slra18gles Vocetional Educa1lon - Basic Granta ID Slates High School Program Belle Gram Pass-Through From Okefenokee Regional Educabonel SeMalAgency
Commun- Safe and Drug-FAOe Schools end

84 332
84 010 84 281 84 3-40 84298
84048
84198

Total U 5 Departmen1 of Educabon

Interior, U S Department of Pass-Through From Charlton County Comm1581onerB Refuge Rovonuo Shanng Program

OFA

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

s 11666002

NIA

s 366,524 3-4

s s 485,184 36

(2) 745 608 74 (3)
745,606 74

NIA

6,732 46

S,732 46

NIA

25,745 05

s s 519 661 87

25 745 05 780,066.25

NIA

s s 13-4,588 43

NIA

30 481 62

s s 165,070 05

13-4,588 43 30 481 62
165,070 05

NIA

51,055 86

51,055 86

NIA

394 498 82

384,498 82

NIA

5,62518

5,62518

NIA

73,410 00

73410 00

NIA

14,403 00

14,403 00

NIA

45,195 00

45,195 00

NIA

6,228 93

s s 75548484

6,226 93 755 484 84

NIA

s 42 793 50

(4)

TOia.i Federal Flnandal Aas.lstance NIA II Not Avarlable

-28 -

$ 1,317,94021 $ 1 535 571 09

CHARLTON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENOITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE 1

Notes to the Schedule of Expendrtures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary aas1stance tor donated commodities recetVed and/or consumed by the system dunng the current fiscal year
(2) Expendttures for the School e.-1as1 Program - . not malntamod separa1ely and are included ., the 2002 Naoonal School Lunch Program
(3) Expenditures for this program include Slate and/or Other Funds Expenditures are not maintained by fund source
(4) Expenditures on ttus program were not mamtamed by fund source
Major Programs are lden1l1iod by an asler1sk (") ., front of the CFDA number
The School Dlslnd did not prov>de Federal Assistance lo any Subreop,ent
The accompanymg - . i s ol e,q>endrtu""' of Federal awards UlCfudes the Federal grant activity of Iha Charlton County Board of EducaUon and 1a presented on the modified accrual b8SIS of acax.mbng which Is the basis of accounting used In the presentation of the general-purpose flnanael statements

See notes lo the generel-pulJlOS8 flnanaal statements

-29 -

CHARLTON COUNTY BOARD Of EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPEP JUNE 30 2002

SCHEDULE?

AGENCY/FUNDING

GRANTS Comn>.nty Allan Georgm Department ol loc:8I As&lstanc:e Grant

Educabon, Georg.a Deparuneut ol Quality Basic Educat>on Direct ln!ltructional Cost
Kindergarten Program Kndetgarten Program - Earty ntervenbon Program Pnrnary Grades (1-3) Program
Pnmery Grades - Earty-,ion (1-3) Program Upper Elornen1ary Grades (4-5) Program
lJppet" Elementary Grades - Early lntervenbon (4-5) Program
Moddle Grades (6-,9) Program
H,gh SChOol General EducatJon (9-12) Program
vocaoonat Labora1ory (9-12) Program
Stud- - D<sab<ICa1eg0fyl
CalOgOryll Celegorylll
ea,egoryr,,
Gifted Sbxlent - Category VJ Remedlal Education Program Aftamatlve Education Program Medle Cemer Program T - Daya Addltional Instruction Staff and Profeaalonal De-,. e1opme1 1t lrdn!cl COS1
Cetegoncat Grerrts

" ' "R' 'eTgurolanroportatlon Bua Replacement
Spa,ally Nurwng Supplemento Pnnclpal Supplemonta Vocabonlll Superv,sa, Md-lerm Ad)ualment H--..loA Educabon Equallzabon Funding Grant FoodSelvices Vcx.atJonalEducabon Other State Programs Envronmental Sdence Program
,_.,tnaurance
Preschool Handicapped Program
- Stat9wld- e ReadSinCghOPorol gPrraomgraKm-3 4-11 Teacher8' Retrrement Lottery Programs

-

Technology

ComputerS 1n the Classroom

Human Resources, Georg,a Departmenl ol Family Connection

Office of School Readiness Pre-Kindergarten Program

Office of Treasuy and FISC8I Servtces PubllC School Emp&oyeea. Rewement

See notes to the genera~rpoae flnanoal statements.

30-

GOVERNMENTAL FUND TYPES

SPECIA.L

GENERAL

REVENUE

FUND

FUND

TOTAL

s

1,000 00

s

1,000 00

293,736 00 2~.21goo g52 568 00 3Q8,613 00 818,680 00 185,718 00 1112,05500 874 244 OD 256 753 00
5,753 00 185,844 00 419 602 00
31,10000 85,711 00 12,798 00 90,961 00 188,200 00 58 388 00 32 394 00 1280120 00

293 736 00 255 219 00 852 566 00 398 613 00 618 680 00 185 718 00 1,11205500 874 244 00 2156 753 00
15 753 00 185 &44 00 419 802 00
31100 00 65 711 00 12 1g5 oo 90 961 00 186 200 00 58 388 00 32 394 00 1,280 120 00

2sg 688 00
Ml 272 00 149 808 00
55 040 00 7 701 00 10 333 00 189 810 00 705 740 00
s
5 850 27

50 402 00

750 00 95117 55 29 619 00 12 398 41 35 438 14 11,89416

29 57 49 082 48

25g 686 00 eg 272 00 149 808 00 55 040 00
7 701 00 10 333 00 18g 010 oo 705 748 00 50 402 00
5 850 27
75000 g511755 29 819 00 12 JgS 41 35 438 14 11,BQ.416
29 57 49,062 48

50,000 00

50 000 00

343 881 85

343,881 85

19 214 00

10 214 00

s 9 004 935 53 s 493 375 70 s 94ga31123

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

SCHEDULE"3'"

PROJECT
Acqu1nng constructJ.ng end equipping one new mutt.J-use physical educabon
muSK:, and arts taohty at St George
Elementary Scl1ooJ acqurnng 1nstrud:Jonal
and adm1ntStretrve teclvlology improvements tor 8Xlstlng schools adding to renovating repainng Improvmg and equipping existing school bu1ldmgs and other buildings and faohtles useful or desirable In connecbon therewith and acqwnng any necessary property both real and personal
Rettnng a porbOn of the School D1stnct's school bonds dated June 1, 1978 by paying or making provrs,ons for the payment of the pnnclpal of and interest on the said 1978 Bonds coming due on Juiy 1 1998 through January 1 2003

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

S 4 875 000 00 S 4,875,000 00 S 687 347 86 S 3 993 632 34 Ongomg

375 000 00

375 000 00

254 900 00

252,925 00 Ongomg

s s 2so 000 oo $ s 2so.ooo oo s 942 247 86 s 4 246 ss1 34

1

1

1

(1) The School Olstnct's ong:nal cost estimate as specified m the resoh.mon calling for the 1mpo51Uon of the Local Opbon
Sales Tax

(2) The School O.stncrs current asbmate of tc,al cost for the pr0fOCIS lnciudes ell cost from proj9ci Incepb0n to comp<elion

(3) The voters of Chartton County approved the 1mposrtlon of a 1% sales tax to fund the above prqects and rebre assooa1ed debt Amounts ~ for these pr0fOCIS may 1nciudo sales tax proceeds state local property taxes and/or other funds a,er the hie of the prqects

(4) 1n adcl:oon to the expenditures shown above the School Dtstnd: has 100Jrred interest to proV1c:le advance funding
for the above pro,eas as follows

Pnor Years

$ 313 630 42

Cl.6Teflt Year

62 448 56

Total

$ 376 078 98

See notes to the general-purpose finanoal statements

31

CHARLTON COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM ICBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Dlred. Instructional Programs Kindergarten Program KJndergarten Program-Earty lntervent10n Program Pnmary Grades (1-3) Program Primary Grades-Ea~y Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Eerty lntorventlon (4-5) Program Middle Grades (6-8) Program High School General EducabOn (IH 2) Progrem Vocational Laboratory (9-12) Program Students - Dlsablffleo Ga1egory I Ga1egory II Gategory Ill GategorylV Gifted Studan1 - Gategory VI Remedial Educabon Program AllematNe Eduoation Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and ProfellSIOllal Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

328,932 00 $ 415 860 81 $

5,403 94 $

421 064 75

285,799 00

162 205 93

1 506 44

163,712 37

1,066 705 00 1 091 384 13

20,327 63

1,111,71196

446,375 00

47886011

9 588 39

"488,248 50

692 811 00

717,548 10

17,522 21

735,070 31

207 971 00 1 245,303 00
978,997 00 287,518 00 719 035 00
95 980 00 14,331 00 101,860 00

161,518 02 1,098,840 07 1,175 525 90
252 584 23
5,081 54 223 648 37 516 308 61
59,968 87 140,324 50
26 666 53 98,964 76

1,483 80 26,486 87 39,202 44 34,661 79
82549 2 469 21 9 79666 1,021 99 3,19651
5897
1 30900

163 001 82 1,125 326 94 1,214,728 34
287,246 02
5 907 03 226,117 58 526,105 29
80,990 66 143,521 01 26,725 50
,oo 273 76

$

s 6,471,617 00 $ 6,624,890 48

174 861 58 $ 8,799 752 04

208,512 00 36,275 00

271 633 36 5,456 63

70 01741 40 544 64

341 650 77 46 003 47

TOTAL QBE FORMULA FUNDS

s

6,716,404 00 $ 6 901.982 47 $ 265.423 61 $ 7 167,406 28

(1) Comprtsed of State FLnds plus Local Five MII Share

See notes to the general-purpose flnanoal statements

- 32 -

CHARLTON COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES BY SITE
YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

SITE Folkston Elementary School Chartton County High School Bethune Elementary School St George Elementary School Central Office (Altematrve Educabon Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,938,545 00 $

1,884,156 79

2,376,077 00

2,726,152 04

1,417,751 00

1,534,819 77

637,384 00

653,543 44

101,860 00

1,080 00

$

6,471 617 00 $='""""6_,799-==.7=5=2=04=-

See notes to the general-purpose financial statements - 33 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

_Ui,~hLL W. HISTON
STAIE AUOITOO (-'04! 656-217A

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa.or,hmgton Street, S W ~uuc 2 \ 4 Atldnta. Georgia 30314-8400
July I 0. 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Edueat1on
and Supenntendent and Members of the Charlton County Board ofEducat10n
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL S1ATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of Charlton County Board of Educat10n as of and for the year ended June 30, 2002, and have issued our report thereon dated July 10, 2003 This report was quahfied for vanous departures from generally accepted accounting pnnc1plcs, as identified m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the United States of Amenca 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 obtammg reasonable assurance about whether Charlton County Board of Educat10n's financial statements are free of matenal misstatement, we performed tests of its compliance with certam provis10ns of laws, regulations, contract, and grants, noncompliance with which could have a direct and matenal effect on the determmat1on of financial statement amounts However. prov1dmg an opinion on compliance with those prov1s1ons was not an ob1cct1ve of our audit, and accordingly, we do not express such an opm10n. The results of our tests disclosed no instance, ofnoncompliancc that are required to be reported under Government Auditing Standards
Internal Control Over Fmanctal Reporting
In planning and performing our audit. we con,idercd Charlton County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opin10n on the financial statements and not to provide as,urance on the internal
2002YB-41

control over financial reporting However, we noted a certain matter involving the internal control over financial reporting and Its operatwn that we consider lo be a reportable cond1 twn. Reportable cond1twns involve matters coming to our attention relating to s1gmficant defic1enc1es in the design or operation ofthe internal control over financial reportmg that. in ourJudgment, could adversely affect Charlton County Board ofEducatwn's ability to record, process, summarize and report financial data consistent with asserllons of management in the financial statements The reportable condition is described m the accompanying Schedule of Fmdings and Questioned Costs as item FS-6241-02-01
A matenal weakness is a cond11Ion 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 in amounts that would be material m relallon to the financial statements bemg audited may occur and not be detected within a timely period by employees m the normal course of performmg their assigned functwns Our cons1deratwn of the mternal control over financial reporting would not necessanly disclose all matters in the internal control that might be reportable cond11Ions and, accordmgly, would not necessarily disclose all reportable cond1twns that are also considered to be material weaknesses However, we consider 1lem FS-6241-02-01 to be a material weakness.
This report is mtended solely for the mformallon and use of the management. members of the Charlton County Board ofEducalion, Federal awardmg agencies and pass-through entities and 1s not intended to be and should not be used by anyone other than these specified parties
---~Respectfully submitted,

RWHa~ 2002YB-41

State Auditor

'.tJ<,.',~.11 W. Ht:-.JON
~TATE AUDIIOA
(404, 65,) 2 74

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street SW Suite 214
Alldnt.i, Gcorg1J. 30334~8400
July 10, 2003

IIonorablc Sonny Perdue. Governor Members of the General Assembly Member; of the State Board of Educat10n
and Superintendent and Members of the Charlton County Board of Educat10n
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLr: TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of Charlton County Board of Education with the types of compliance reqwrements descnbed in the US Office ofManagement and Budge/ (0MB) Circular A-133 Compliance Supplemen/ that are applicable to each of its maJor Federal programs for the year ended June 30, 2002 Charlton County Board of Education's maJor Federal programs arc 1dent1fied in the Summary of Auditor's Results Section of the accompanying Schedule of Fmdings and Questioned Costs Compliance with the requirements of law~. regulations, contracts and grants apphcable to each of its maJor Federal programs 1s the respons1b1lity of Charlton County Board of Education's management. Our rcspons1b1hty 1s to express an opin10n on Charlton County Board of Educat10n's compliance based on our audit
We conducted our audit of compliance in accordance with auditing standards generally accepted in the Umted States of Amenca, the standards apphcable to financial audit~ contamed in Government Auditing Standards, issued by the Comptroller General of the Umted States, and 0MB Circular A133. Audas of Stales, Local Governments. and Non-Profit Orgam=atwn.1 Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtain reasonable assurance about whether noncomphance with the types ofcompliance requirements referred to above that could have a direct and matenal effect on a mllcJOr Federal program occurred An audit includes exarn1mng, on a test basis. evidence about the Charlton County Board of Education's compliance with those requirements and performing such other procedure~ as we considered necessary m the circumstances We bcheve that our audit provides a reasonable basts for our opm1on Our audit doi:s not provide a legal determmat1on on Charlton County Board of Educat10n's compliance with tho~ requirement~
2002SA-I0

In our op1mon. the Charlton County Board ofEducal!on complied, in all material respects, with the reqmrements referred to above that are applicable to each of its maJor Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Charlton County Board of Educalion is responsible for establishing and maintaining effective internal control over compliance with requirements of law~, regulations, contracts and grant~ applicable to Federal programs In planning and performing our audit. we considered Charlton County Board of Education's internal control over compliance with reqmrements 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 opin10n on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133
Our cons1derat1on of the internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses A material weakness is a cond11ion in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with applicable reqmrements of laws, regulations, contracts and grants that would be matenal in relation to a major Federal program bemg audited may occur and not be detected within a limely period by employees in the normal course of performing their assigned funcuons We noted no matters involving the internal control over compliance and its operat10n that we consider to be material weaknesses.
This report 1s intended solely for the information and use of the management, members of the Charlton County Board ofEducat10n, Federal awarding agencies and pass-through entitles and is not intended to be and should not be used by anyone other than these specified parties
- w.41~ Respectfully submitted, z.. Hinton State Auditor
RWHas 2002SA-10

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

CHARLTON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6241-00-02 FS-6241-01-01

Further Act10n Not Warranted Unresolved - See Corrective Act10n/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS failure to Mamtain General Fixed Assets Account Group Fmdmg Control Number. FS-6241-01-01

The Charlton County Board of Education 1s m the process of1mplemcnung Governmental Accountmg Standards Board Statement No. 34 The School District is unable to hue addillonal staff because of budget constraints

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6241-00-0 I FA-6241-00-02 FA-6241-00-03 FA-6241-01-01 FA-6241-01-02 FA-6241-01-03

Further Action Not Warranted Further Action Not Warranted Further Action Not Warranted Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION JV FINDINGS AND QUESTIONED COSTS

CHARLTON COUNTY BOARD OF DUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's op1mon on the Charlton County Board of Education's financial statements was qualified for vanous departures from generally accepted accounting pnnc1ples
2 Reportable Cond1t10ns in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Charlton County Board of Education disclosed a financial statement reportable condition related to the following control category
General Fixed Assets
The reportable cond1t1on descnbed above 1s considered to be a matenal weakness.
3 Noncompliance Matenal to the Financial Statements The audit of the Charlton County Board of Educauon disclosed no instances of noncompliance that were deemed to be material to the financial statements
4. Reportable Condition~ in Internal Control Over Mmor Programs The audit report for the Charlton County Board of Education did not disclose any reportable cond1tlons in internal control over maJor programs
5 Type of Report Issued on Compliance for Ma1or Programs The auditor's opin10n on the Charlton County Board of Education's report on compliance with reqwrements applicable to major programs was unqualified
6 Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Charlton County Board ofEducat10n's audit did not disclose audit findings required to be reported by section .51 0(a) of 0MB Circular A-133
7 Mawr Programs Federal awards audited as maJor programs are as follows: 10 553 Food and Nutr1t10n Program - Food Services - School Breakfast Program 10 555 Food and Nutrition Program- Food Services- National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educauonal Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Aud1tee The Charlton County Board ofEducat10n did not qualify as a low risk aud1tec as defined by Secuon 530 of 0MB Circular A-133
-I-

CHARLTON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condihon - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-6241-02-01 The Charlton County Board of Education did not mamtam a system-wide General Fixed Assets Account Group \\1thm the formal accounting records as reqwred by generally accepted accountmg principles This condlhon results in the general-purpose financial statements ofthe School District being incomplete and not in accordance mth generally accepted accounting pnnc1ples Appropnatc action should be taken by the School D1stnct to establish accountmg controls and procedures to provide for mamtenance ofa General Fixed Assets Account Group. These subs1d1ary records should mclude an inventory of land, bu1ldmgs and equipment O\Vned by the School District and should include, but may not be hm1ted to, date acquired, acquisition cost, estimated replacement cost, location and descnpt1on Detailed records should be maintamed of all additions and deletions to the General Fixed Assets Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
-2-