Clay County Board of Education, Fort Gaines, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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CLAY COUNTY BOARD OF EDUCAnON - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHffiITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMAnON

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

K

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

28

CLAY COUNTY BOARD OF EDUCATION -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

29

2 SCHEDULE OF STATE REVENUE

31

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

SECTIONll
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

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

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. "IN roN
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton Street, S W. Suite 214 AtI,mta, GeorgIa 30334-H400
March 19,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Clay County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Clay County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Clay County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opInIon.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* For fiscal year 2002, the School District changed its method of accounting for the final
two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Clay County Board of Education as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 19, 2003, on our consideration of the Clay County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Clay County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through K) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and NonProfit Organizations, are presented for purposes ofadditional analysis and are not a required part of
2002ARL-13

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

RWH:gp 2002ARL-13

Rus ell W. Hinton State Auditor

CLAY COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventones Food Donated CommodllJes Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided In Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

411,41009 $

180,642.75 $ 1,137,51158

438,799.35

122,044.45

224,228.36

52,447.09

47,73522

418.43 741.13

Total Assets

$ 1,074:437.80 $

234,24940 $ 1,307,29125

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable
Total Llabillhes
FUND EQUITY
Fund Balances Reserved For Debt service For InventOries Food Donated Commodrtles Purchased Food For Purpose of Bond Issue For SPLOST Projects Unreserved DeSignated for Self-Insurance Undeslgnated
Total Fund Equity

$

147,01365 $

66,59848

207,325.69

47,48846

3,03532

33,564.73

33,658.84

18,958.66

37,234.50

$

409,992.16 $

184,886.17

$

418.43

741.13

$

882,22340

425,06785

$

37,037.43

627,408.21

48,20367

000

$

664,44564 $

49,363.23 $ 1,307,29125

Totaillabllrties and Fund Equrty

$ 1,074,437.80 $

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

234,24940 $ 1,307,29125

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
AGENCY FUND

$

40,871 10

903,82946

14,86345 $

12,42022

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$ 1,770,435 52 $ 1,146,983 01

1,464,673 26

742,16176

351,69434

169,172 58

$

959,56401

750,43599

41843 74113 959,564 01
750,43599

31325 1,23523
840,00000

$

959,56401 $

12,42022 $ 1,710,00000 $ 5,297,96268 $ 2,899,86583

$

12,40522

$

12,405,22 $

25,10298

213,61213

66,86898

254,81415

41,45835

36,60005

30,76497

33,65884

56,19316

2,04303

1500

1500

91500

$ 1.710,00000

1,710,00000

840,00000'

$

12,42022 $ 1,710,00000 $ 2,317,29855 $ 1,007,15331

$

959,564 01

000

$

959,564 01

$

959,564 01 $

840,000 00

41843 74113 882,22340 425.06785

31325 1,23523
213,25787

37,03743 675,61188

35,62413 802,28204

$ 2,980,66413 $ 1,892,71252

$

959,564 01 $

12,42022 $ 1,710,00000 $ 5,297,96268 $ 2,899,865.83

- 3-

CLAY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 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 Instruction Support Services Pupil Services Improvement of Instructional Services Educal10nal Media ServiceS General Administration School Administration Business AdmlnlStralton Maintenance and Operation of Plant Student Transportation Services Other Support ServiceS Food Services Operation Community Services Operations
Capital Outlay Debt Service
Pnnclpal Interest PaYJng Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Operating Transfers Out
Total Other FinanCing Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCIng Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 2,334,511 71 $ 152,83100 623,575.92 32,15083
$ 3,143,06946 $

179,394 52 691,050 68
9,828,50
880,27370

$ 2,101,063.86 $
61,70096 8,70949
76,94146 215,47311 179,051 95
37,496,38 147,72673 213,361.34
16,86372
82,87660

494,29735
49,11976
19,621.87
5,11960 10,68971 14,42144 234,435.94 52,091.35

$ 3,141,265.60 $

$

1,803.86 $

879,79702 476.68

$

$

-11,30519

$

-11,30519 $

$

-9,501.33 $

673,94697

2,30519
2,30519
2,78187 46,970.28
10518 -494.10

FUND BALANCE JUNE 30

$

664,445 64 $ =_=4:,;9,3;;;63_,2;c3:,

The notes to the general-purpose finanCial statements are an Integral part of this statement. -4-

EXHIBIT "BOO

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

202,64985 $

9,59602

$

212,24587 $

$
53,11898 18,89512
72,01410 $

2,513,90623 $ 843,88168 879,344 75 70,47047
4,307,60313 $

2,160,04010 611,99974 952,44587 98,12357
3,822,60928

$

21,76824

$

$

21.76824 $

$

190,477 63 $

$
30,000 00 45,687.50
744.24 76,43174 $ -4,417 64 $

2,595,361 21 $
61,70096 57,82925 76,94146 235,094 98 179,05195 59,264 62 152,84633 224,05105 31,28516 234,43594 52,09135 82,87660
30,00000 45,68750
744 24
4,119,26260 $
188,34053 $

2,026,574.20
55,18849 79,170.53 68,354 24 253,75380 160,38029 41,02912 168,92163 291,74026 23,69828 232,08938 28,60550 17,50000
30,00000 47,127.50
1,044 24
3,525,177 46
297,43182

$

894,55575 $

9,00000

$

903,55575 $

5,444.25 $ 5,444 25 $

900,000 00 11,30519 $ -11,30519
900,00000 $

182 -182
000

$ 1,094,033 38 $ 213,257.87

1,026.61 $ 958,53740

1,088,340 53 $ 1,892,71252

297,431.82 1.595,267 32

10518 -494.10

-62047 633.85

$ 1,307,291 25 $

959,564 01 $ 2,980,664.13 $ 1,892.712.52

- 5-

CLAY 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 nco

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 2,101,830.00 50,ODO.00
669,000.00 76,20000

$ 2.334,511.71 152,831 00 623,575.92 32.15083

Total Revenues EXPENDITURES

$ 2.897,03000 $ 3,143.06946

Current Instrucllon Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School AdmlnlstralJon BUSiness Admlnlstrabon Maintenance and Operallon of Plant Student Transportallon Services Other Support serviceS Food Services OperalJon Community services Operallons
Capital Outlay
Total expenditures
Excess of Revenues over (under) Expenditures

$ 1.880.304 70 $ 2,101.063.86

43,948.00 19,24300 73.687.00 251,35700 148,088.00 40,41500 183,950.00 263,47400 18,86700

61,70096 8,70949
76,94146 215,47311 179,051.95
37,49638 147.726.73 213,361 34
16,863.72

25,00000

82,876,60

$ 2.948,333 70 $ 3,141,265.60

$ -51,303.70 $

1,80386

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$ 4,000.00 $ -11,305.19

Total Other Financing Sources (Uses)

$ 4.000 00 $ -11,30519

Excess of Revenues and Other FinanCing Sources over (under) expenditures and Other FinanCing Uses $ -47,30370 $

-9,501.33

FUND BALANCE JULY 1. 2001

693,49291

673,946.97

Adjustments Food Inventory - Net Change In Period
Donated Commo<hlles Purchased Food

-6,832.16

FUND BALANCE JUNE 30, 2002

$ 639,357 05 $ 664,445 64

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 155,97820 $ 179,394.52

709.51800

691.05068

16,700.00

9,828,50

$ 882.196 20 $ 880,273.70

$ 460.39504 $ 494,297.35

41,76469 51600

49,119.76 19.621 87

12,500.00 19.21100 26.056.00 252.95000 50,85000

5,11960 10,68971 14,421 44 234,43594 52,091.35

$ 864.24273 $ 879,79702

$ 17,95347 $

47668

$ 2,30519

$ 2,305.19

$ 17,95347 $ 2.78187

62,337.58

46,970.28

-2,19156

10518 -494 10

$ 78.099 49 $ 49.363 23

The notes to the general-purpose financial statements are an Integral part of this statement - 7-

CLAY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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

-8-

CLAY COUNTY BOARD OF EOUCAnON

EXHffiIT "0"

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 restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund 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 obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental funds are accounted for using the modified accrual basis of accounting under which:

- 9-

CLAY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available.
The net effect ofthe above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Clay County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

- 10-

CLAY COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting 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 budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-I67(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local GoveIllJl1ent Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
- 11 -

CLAY COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obligations of other political 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 information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Clay County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 15, 2001 (levy date). Taxes were due on January 29,2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Clay County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $613,848.70 and for school bonds amounted to $275.23.

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

School Operations

.l.Q..lQ mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $255,493.60 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet

- 12-

CLAY COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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 in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
- 13 -

CLAY COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United - States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws ofthe State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZAnON OF DEPOSITS At June 30, 2002, the bank balances were $2,693,856.03. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)
The School District's deposits are classified by risk category at June 30, 2002, as follows:

- 14 -

CLAY COUNTY BOARD OF EDUCAnON

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 203,205.58

2

1,965,021.80

3

525,628.65

Total

$ 2,693,856.03

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $717,000.16 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 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 primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund I and Fund 6 are directed toward short-term instruments such as U. S.
Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The ayerage investment duration for Fund 6 on June 30, 2002, was 0.75 years.

- 15 -

CLAY COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

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

The School District is self-insured with regard to unemployment compensation claims. In connection with this program, a self-insurance reserve has been established within the General Fund by the School District. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years.

The School District participates in the Georgia Education Workers' Compensation Trust, a public

entity risk pool organized on December 1, 1991, to develop, implement and administer a program of

workers' compensation self-insurance for its member organizations. The School District pays an

annual premium to the Trust for its general insurance coverage. Additional insurance coverage is

provided through an agreement by the Trust with the United States Fidelity and Guaranty Company

to provide coverage for potential losses sustained by the Trust in excess of $350,000.00 loss per

occurrence, up to $2,000,000.00.



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

Position Covered

Amount

Superintendent Principal

$ 10,000.00 $ 1,000.00

- 16-

CLAY COUNTY BOARD OF EDUCAnON

EXHmIT "D"

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:

Purpose

Interest Rates

Amount

General Government - Series 1996 General Government - Series 2002

4.80% - 5.80% 3.57%

$ 810,000.00 900,000.00

$ 1.710,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows:

General Obligation
Bonds

Balance July 1,2001

$ 840,000.00

Additions G.O. Bonds

900,000.00

Deductions Debt Retired

30,000.00

Balance June 30, 2002

$ 1.710,000.00

At June 30,2002, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2017

$ 100,756.75 276,752.25 278,763.25 280,506.50 281,651.25 628,268.25 356,295.00

Total Principal and Interest

$ 2.202,993.25

- 17 -

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

CLAY COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of $39,381.56 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $35,467.56
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$3,914.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 8: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

- 18 -

CLAY COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 8: RETIREMENT PLANS
Fiscal Year
2002 2001 2000

Percentage Contributed
100% 100% 100%

Required Contribution
$ 163,824.97 $ 188,294.24 $ 172,902.82

- 19-

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

53,280.41 $

34,767.17

314.80

418.43 741.13

Total Assets

$

54,439 97 $ ===3.5..=,0.8..=1=97=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund EqUity
Total Liabilities and Fund EqUIty
See notes to the general-purpose financial statements. - 20-

$

940.41 $

4,435.08

4,136.33

17,945.81

12,701.08

$

5,076.74 $

35,081.97

$

418.43

741.13

48,203.67 $

$

49,363.23 $

0.00 0.00

$

54,439.97 $ ===3.5../::,0.8.=.1.=97==

EXHIBIT"E"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

92,595.17 $

180,642.75 $

88,181.09

52,132.29

52,447.09

54,061.35

418.43 741.13

313.25 1,235.23

$

144,727.46 $

234,24940 $==1=4:=3;,;,,7=90=,=:92=

$

$

61,222,99 $

66,59848

25,406.32

47,488.46

20,863.65

33,564 73

37,234.50

37,234 50

$

144,727.46 $

184,886.17 $

5,831 81 31,004.41 41,458,35 16,483.04
2,043.03
96,820,64

$

418.43 $

313.25

741.13

1,235.23

$

000

48,203.67

45,421.80

$

0.00 $

49,363.23 $

4;.,:;;,6.!.;;,9...;.70=..:::;;28~

- $ _ 144,727.46 $

234.249.40 $ ====1..4.:=3.l::::,7=::90=,=:92=

21 -

CLAY 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 Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 22-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

13,406.00 $

165,038.52

211,411.99

9,828.50

$

234,646.49 $

165,038.52

$

151,739.39

$

231,864.62

241.62 9,864.58 3,192.93

$

231,864.62 $

165,038.52

$

2,781.87 $

0.00

$

2,781.87 $

46,970.28

105.18 -494.10

0.00 0.00

$

49,363.23 $ ......==~-O=.OO==

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

950.00 $

179,394.52 $

163,331.40

479,638.69

691,050.68

555,696.52

9,828.50

9,634.05

$

480,588.69 $

880,273.70 $ _-..:7;..=2:.::,8:.;:,6.;;.61.:.,.9;:;.;7;...

$

342,557.96 $

494,297.35 $

353,739.11

48,878.14
9,757.29 5,119.60 7,496.78 14,421.44 2,571.32 52,091.35

49,119.76
19,621.87 5,119.60
10,689.71 14,421.44 234,435.94 52,091.35

2,949.16 65,549.62 16,909.27
2,002.73 6,349.15 12,556.90 8,320.58 232,089.38 28,60550

$

482,893.88 $

879,797.02 $

729,07140

$

-2,305.19 $

476.68 $

-409.43

2,305.19

2,305.19

1.82

$

0.00 $

2,781.87 $

-40761

0.00

46,970.28

47,364.51

105.18 -494.10

-62047 633.85

$

0.00 $.

49,363.23 $ =====-=46===,9=70=.=28==.

- 23-

CLAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

EXHIBIT"G"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

882,22340 $

255,288 18 $ 1,137,51158 $

52,550.03

122,044.45

122,044 45

117,71353

47,73522

47,73522

42,994 31

Total Assets

$

882,22340 $

425,06785 $ 1,307,291 25 $ ===,2=1..3.=,2=5,,=7=87==

FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects Unreserved Undesignated

$

882,22340

$

882,223.40

$

425,067.85

425,06785 $

213,25787

0.00

0,00

000

000

Total Fund Equity

$

882,223.40 $

425,06785 $

1,307,29125 $====2=1=3=,2=5=7,=8K7 c

See notes to the general-purpose finanCial statements

- 24-

CLAY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002

EXHIBIT "H"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business AdmlnlstralJon
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Proceeds from General Obligation Bonds Par Value
Operating Transfers In
Total Other Financing Sources
Excess of Revenues and Other FinanCIng Sources over (under) Expenditures
FUND BALANCE JULY 1

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

202,649.85 $ 202,64985 $ 196.718,65

$

38990

9,206.12

9,596 02

16,53922

$

389.90 $

211.855.97 $ 212.24587 $ 213,257,87

$ 21.72225 $ $ -21.33235 $

4599 $ 211.80998 $

21.76824 $ 190,477 63 $

0.00 213,25787

$ 894,55575 9,00000
$ 903.55575

$ 894,555.75 9,000,00
$ 903,55575

$ 882.223,40 $ 000

211,809,98 $ 1.094.033 38 $

213,25787

213,257,87

213.25787 000

FUND BALANCE JUNE 30

$ 882,223 40 $

425,067 85 $ 1,307,291 25 $ 213,257.87

See notes to the general-purpose finanCIal statements

- 25

CLAY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2002

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Debt Service
Unreserved Undeslgnated
Total Fund Equity

PROPERTY TAXES FOR BOND DEBT

SPECiAl PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

1,853.71 $

39,017.39 $

40,871.10 $

540,26262

903,829.46

90.3,829.46

400,000.00

6498

14,79847

14,86345

18,27478

$

1,91869 $

957,64532 $

959,564,01 $=-==9=58=,5=3=7=40=.

$

1,91869 $

815,444 25 $

817,362,94 $

840,000 00

000

142,20107

142,20107

118.53740

$

1,91869 $

957,64532 $

959,564 01 $ ==-9=5=8"",5=37=4=0=

See notes to the general-purpose finanCIal statements

- 26-

CLAY 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

$

275,23 $

52,84375 $

53,11898 $

79,068,13

18927

18,70585

18,895.12

18,588 22

Total Revenues EXPENDITURES

$

464 50 $

71,549,60 $

72,014 10 $

97,65635

Debt Service Pnncipal Interest PaYIng Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES

$

30,00000 $

30,000,00 $

30,00000

45,68750

45,687,50

47,12750

$

744.24

744,24

1,044 24

$

744 24 $

75,687,50 $

76,43174 $

78,17174

$

-279,74 $

-4,137.90 $

-4,417,64 $

19,484 61

Proceeds from General Obligation Bonds Par Value

5,444.25

5,444,25

Excess of Revenues and Other Financmg Sources

over (under) Expenditures

$

FUND BALANCE JULY 1

-279.74 $ 2,19843

1,306,35 $ 956,33897

1,026,61 $ 958,53740

19,484 61 939,05279

FUND BALANCE JUNE 30

$

1,91869 $

957,64532 $ 959,564 01 $ 958,537.40

See noles to the general-purpose finanCIal slalements

- 27-

CLAY COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2002

EXHIBIT"K"

FAMILY CONNECTION
ASSETS Accounts Receivable
LIABILITIES Cash Overdraft Accounts Payable Funds Held for Others

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$ 28,117.98 $ 12,420.22 $

28,117.98 $ ==1=2:;.;.4:=20:;,;.c22=

$ 25,102.98 $ 51,742.71 $

2,100.00

91500

48,742.71

64,440.47 $
2,100.00 49,642.71

12,405.22
0.00
15.00

$ 28,117.98 $ 100,485.42 $ 116,183.18 $===1=2,b;,4:=20:;,;.2=2=

See notes to the general-purpose financial statements - 28-

CLAY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of Education Food and Nutnllon Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutntlon Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutnllon Program Food Dlstnbutlon Program (1)
Total U S Department of Agnculture
Educallon, U S Department of SpeCIal Education Cluster Pass-Through From Randolph County Board of Education IndiViduals WIth Disabilities EducatIOn Act Part B - SpeCial EducatIOn CapaCIty Building Improvement Flow Through
Total SpeCial Education Cluster
Other Programs Direct Elementary and Secondary Education Act After School Leamlng Centers Impact AId Pass-Through From Georgia Department of Education Elementary and Secondary Educallon Act Title I Grants to Local Educational AgenCies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communilies Pass-Through From Randolph County Board of Education Elementary and Secondary EducatIOn Act Title III Technology Literacy Challenge Fund Grants
Total U S Department of EducatIOn
Labor, U S Department of Pass-Through From Columbus, Georgia Consolidated Government Workforce Investment Act

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10553 10555

NlA

$ 73,96218

NlA

130,451 27 $

$ 204,41345 $

(2) 224,86608 (3)
224,86608

10550

N/A

6,99854

$ 211,41199 $

6,99854 231,864 62

84173 84027

N/A

$

45266 $

N/A

17,68749

$ 18,14015 $

45266 17,68749
18,14015

84287B 84041

101,68722 152,831 00

101,68722 (4)

84 010
84.281
84 298 84 340 84186

NlA

263,031 02

N/A

16,972 31

NlA

6.21600

N/A

54,211 00

NlA

1,60900

263,031 02
16,972 31
6,42289 (3) 56,309 06 (3)
1,60900

84 318

N/A

15,81624

$ 630,51394 $

15,81648 (3) 479,98813

17 259

N/A

$ 1,95575 $

1,95575

Total Federal FinanCial ASSistance
_ NlA =Not Available

$ 843,88168 $

713,80850

- 29

CLAY CQUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Dlstnbutlon Program represents the Federally assigned value of nonmonetary assistance for donated commodities recetved and/or consumed by the system dunng the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included In the 2002 National School Lunch Program
(3) Expenditures for thIS program include State. and/or Other Funds (4) Funds earned on this program do not require reporting of expenditures
Major Programs are Identified by an asterisk (") m front of the CFDA number.
The School Dlstnct did not provide Federal Assistance to any SubreCiplent.
The accompanymg schedule of expenditures of Federal awards Includes the Federal grant actJvity of the Clay County Board of Education and IS presented on the modified accrual basIs of accounting which IS the basIs of accounting used In the presentation of the general-purpose finanCial statements

See notes to the general-purpose finanCial statements

30

CLAY COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 3D, 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Commumty Affairs, Georgia Department of Local Assistance Grants
Educatron, Georgia Department of Quality BasIc Education Direct InstructIonal Cost Kindergarten Program Kindergarten Program Early Interventron Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades Early Intervention (4-5) Program Middle Grades (6-8) Program Students WIth Disabilities Category II Category III Altematrve EducatIOn Program Media Center Program Staff and ProfeSSional Development Twenty Days Additional Instruction Indirect Cost Categoncal Grants Pupil Transportalion Regular Bus Replacement Sparsity Nursing Services PnnClpal Supplements Deferred Summer Salanes (Current Year) Education Equalization Funding Grant Food Services Other State Programs 4-8 Statewide After School Program Health Insurance K-3 Statewide Reading Program Student Achievement Lottery Programs Asslstlve Technology Computers 10 the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
OTHER Randolph County Board of Education Preschool Handicapped Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 27,000.00

$

69.317,00 79.65200 208.984 00 205,44500 131,40000 91,04400 241,321 00
36,50600 85,64500 10,959.00 37,67600
6,17200 10,67300 375,42800

158,40534 47,61900
120,005.00 26,27500
1,506 00 200,92900
66.17300 $

13,40600

17,94700 35,46756 12,00000 27.04881

4,154 80 9.17500

151,70872

3,91400

95000

TOTAL
27,00000
69,317 00 79,65200 208.984 00 205,44500 131,40000 91,04400 241,32100
36,50600 85,64500 10,95900 37.67600
6,17200 10,67300 375,42800
158,40534 47,61900
120.00500 26.27500 1,506 00
200,92900 66,17300 13,40600
17,94700 35,46756 12,00000 27,04881
4,15480 9,17500
151,70872
3,91400
95000

$ 2,334,511 71 $ 179,394 52 $ 2,513,906 23

See notes to the general-purpose finanCial statements

- 31 -

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

SCHEDULE "3"

PROJECTS
The repayment of pnnClpal and interest on the Clay County School Dlstnct's Senes 1996 Bonds matunng February 1, 2016, In the maXImum amount of $1,611,090 42
Acquiring a site, constructing, eqUipping and Improvements in the Clay County School District at a maximum cost of $950,000,00
Adding to, renovating, repalnng, Improving and eqUipping Clay County Elementary School, Including the acquisition, construction and eqUiPPing of SIX (6) additional classrooms, addllJonal par1ung areas and Improvements to playgrounds and outdoor phYSical education areas; improvements to the eXisting central office facilities; the purchase of school buses; the acqUlSllJon and installation of system-wide technology Improvements and the purchase of school furniture, equipment and fixtures

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 1,611,09042 $ 1,611,09042 $ 75,73349 $ 162,76768 Ongoing

950,000.00

950,000.00

OngOIng

1,600,000 00 1,600,000.00

Ongoing

$ 4,161,09042 $ 4,161,09042 $ 75,73349 $ 162,76768

(1) The School Dlstnct's onglnal cost estimate as specified In the resolution calling for the imposition of the Local OplJon Sales Tax,
(2) The School Distnct's current estimate of total cost for the projects Includes all cost from project inception to completion
(3) The voters of Clay County approved the ImposilJon of a 1% sales tax to fund the above proJects. Amounts expended for these projects rnay Include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects

See notes to the general-purpose financial statements

- 33-

CLAY COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Ear1y IntervenlJon Program Pnmary Grades (1-3) Program Primary Grades-Ear1y Intervenllon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Ear1y Intervenbon (4-5) Program Middle Grades (6-8) Program Students WIth Disabilities Category II Category III Alternative Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and ProfeSSional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

81,04900 $ 97,41525 $

2,135.93 $

99,551 18

93,134,00

88,67584

1,000,00

89,675,84

244,357,00

313,250.33

8,163.18

321,413.51

240,21800

197,48202

2,86920

200,351.22

153,641.00

159,682.00

5,800,01

165,482.01

106,454.00 282,167,00 142,826.00
12,81400

108,246.40 342,19315
39,075,07 82,453.77
7,944 95

2,745.86 10,55589
213,96 13,212.85 6,16000

110,992.26 352,74904
39,289,03 95,66662 14,104 95

$

1,356,660,00 $ 1,436,418 78 $ 52,856,88 $ 1,489,275,66

44,05300 7,216.00

47,709.99 2,599,51

6,091,89 4,654.83

53,801,88 7,254 34

TOTAL aBE FORMULA FUNDS

$

1,407,92900 $ 1,486,72828 $ 63,60360 $ 1,550,33188

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

See notes to the general-purpose finanaal statements

- 34-

CLAY COUNlY BOARD OF EDUCATION GENERAL FUND - aUALIlY BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 3D, 2002

SCHEDULE "5"

Clay County Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local FIVe Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

1,343,846.00 $

1,475,170.71

12,814.00

14,104.95

$

1,356,660.00 $ ====1l::::.4=:89:!:,2;;;,;,7.=5=.66=

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

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

RU'iSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hlOgton Street, S W. SUite 214 AtlanlJ, Georgia 30334-H400
March 19,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Clay County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Clay County Board of Education as of and for the year ended June 30,2002, and have issued our report thereon dated March 19,2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part ofobtaining reasonable assurance about whether Clay County Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Clay County Board of Education's internal c_o~trol over financial reporting in order to determine our auditing proced~res for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Clay County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6301-02-01.
A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6301-02-01 to be a material weakness.
This report is intended solely for the information and use of the management, members ofthe Clay County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
W~
Rus ell W. Hinton State Auditor
RWH:gp 2002YB-41

RlJ'iSELL W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmglOn Slreet. S W., SUite 214 Atlanta. Georgia 30334-H400
March 19,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Clay County Board of Education

REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-133

Ladies and Gentlemen:

Compliance

We have audited the compliance of Clay County Board of Education with the types of compliance

u.s. requirements described in the

Office of Management and Budget (OMB) Circular A-I33

Compliance Supplement that are applicable to each ofits major Federal programs for the year ended

June 30, 2002. Clay County Board of Education's major Federal program is identified in the

Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned

Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its

major Federal program is the responsibility ofClay County Board ofEducation's management. Our

responsibility is to express an opinion on Clay County Board ofEducation's compliance based on our

audit.

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Clay County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
_Vi~ believe that our audit provides a reasonable basis for our opinion._Our audit does not provide a
legal determination on Clay County Board of Education's compliance with those requirements.

2002SA-30

In our opinion, the Clay County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to its major Federal program for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Clay County Board ofEducation is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Clay County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-B3.
We noted a certain matter involving the internal control over compliance and its operation that we consider to be a reportable condition. Reportable conditions involve matters corning to our attention relating to significant deficiencies in the design or operation ofthe internal control over compliance that, in our judgment, could adversely affect the Clay County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FA-6301-02-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with the applicable requirements oflaws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over compliance would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we believe the reportable condition described above is not a material weakness.
This report is intended solely for the information and use of the management, members ofthe Clay County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully SUbm~: A~

RWH:gp 2002SA-30

Ru ell W. Hinton State Auditor

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-630 1-00-02 FS-630 1-0 1-01

Further Action Not Warranted Unresolved - See Corrective ActionfResponses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6301-01-01

The Clay County Board of Education is in the process of implementing a General Fixed Assets Accounting System. The week of June 9-13, 2003, has been scheduled for inventory of assets by a company acquired through the local Regional Educational Service Agency district. The Financial Officer is attending workshops on the Implementation of GASB 34. The General Fixed Assets Accounting is scheduled to be in place fiscal year 2004.

SECTION IV FINDINGS AND QUESTIONED COSTS

CLAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Clay County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Clay County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Clay County Board of Education disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Clay County Board ofEducation disclosed a reportable condition in internal control over the major program for the following compliance requirement.
Cash Management
The reportable condition described above is not considered to be a material weakness.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Clay County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51O(a) of OMB Circular A-l33 The Clay County Board of Education's audit disclosed an audit finding required to be reported by section .51 O(a) ofOMB Circular A-l33. This audit finding is included in section IV of this report.
7. Major Programs The Federal award audited as a major program is as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type "An Program Dollar Threshold The dollar threshold for type nA" programs was $300,000.00.
- 1-

CLAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Clay County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-B3.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6301-02-01
The Clay County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
CASH MANAGEMENT Excessive Cash Balances Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6301-02-01
A review of cash management procedures for the Elementary and Secondary Education Act - Title I Grants to Local Educational Agencies (CFDA 84.010) disclosed that cash draws were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances for eight months during the year under review.
- 2-

CLAY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002 TIl FEDERAL AWARD FINDINGS AND QUESTIONED COSTS CASH MANAGEMENT Excessive Cash Balances Reportable Condition U. S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6301-02-01 The excessive cash balances are a result of management's failure to accurately forecast the cash needs of this program. The School District should implement procedures to minimize the time elapsing between the transfer of funds from the Georgia Department ofEducation and disbursement of such funds.
-3-