GA.,, 
 
,, 
 
ABo.o ' . . ,,J' 
 
,'RV ,, ~., 
 
.1:~ ' 
 
lo-- 
 
\ 
 
,, .'' 
 
' 
 
CC.4 
 
'' 
 
. : . '' .,~ 
',- 
 
., 
,. ' ' 
. ' 
 
'. . 
., 
 
L 1.,,' 
,, 
 
., 
 
 -~ 
 
I I 
 
... ' 
 
 ', 
,.. 
 
-r 
 
, . 
 
-::. 
 
> 
'' 
 
r'',, 
 
 
' 
, 
'' 
 
,' ' 
..'', ' , 
, ''. 
/ 
', " 
 
. 
 
\' 
 
'' ,.. 
 
.,' '!. '.., 
 
' '' 
 
> 
.! 
. ' 
 
' 
<' 
C'ilNCH COUNTY BOARD OF EDUCATION 
 
,,,_ .' ' 
,, ' 
_,, ' ' 
 
. 
' ,' 
 
H-O., MER'lli~E, $EO~~iA:' "REPO.RT O'N' . AUDIT. 
 
, 
 
, . -OF THE FINANCIAL STATEMENTS - . ~- 
 
~ 
' 
 
',' . 
 
F-:OtTHE' 
 
FISCAL 
 
YEAR 
.,- 
 
ENDED 
 
JUN- E 
 
30, 
 
2.002 
 
'" 
 
,, 
 
' 
 
l I , "j 
 
, .' 
 
, ' ' ', 
 
-. I " 
 
. , 
 
..' ., , 
 
I  
Russell W. Hinton 
 
 
 
I 
 
~ 
 
\ 
 
' o ,' ' 
 
State Auditor , 
 
; 
 
., '', 
 
' 
 
" 
 
. , 
 
I 
 
L..:.:, 
 
. ___ , 
 
_ ... 
 
__;__ 
 
_ 
 
_ ' 
 
- 
 
- 
 
- 
 
- 
 
- 
 
- 
 
= 
 
- 
 
-- 
' 
 
- 
 
- 
 
, 
 
- 
 
- 
 
- 
 
- 
 
- 
 
- 
 
- 
 
' 
 
- 
 
- 
 
- 
 
. 
 
. 
 
. 
 
. 
 
; 
 
. 
 
- 
 
' 
 
- 
 
- 
 
. 
 
: 
 
. 
 
. 
 
, 
 
_ 
 
- 
 
- 
 
- 
 
- 
 
- 
 
' 
 
 
 
' 
 
I'' 
 
" 
 
' 
 
', 
 
.. " 
'"\ '} 
 
., ' 
 
 CLINCH 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 
 
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 
 
ADDffiONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
E 
 
COMBINING BALANCE SHEET 
 
18 
 
F 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
20 
 
SCHEDULES 
 
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
22 
 
2 SCHEDULE OF STATE REVENUE 
 
24 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
3 
 
BY PROGRAM 
 
26 
 
4 
 
BY SITE 
 
27 
 
 CLINCH COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
SECTION III AUDJTEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 w. {[1',M.1 I. Hl'lff()N 
SfAT[ AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Wa,hmg1on Street, SW Su11c 214 Atlanta, Georgia 30334-8400 
Apnl 24, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Supcnntendent and Members of the Chnch County Board of Education 
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen 
We have audited the accompanying general-purpose financial statements ofthe Chnch County Board of Education, as of and for the year ended June 30, 2002, as hsted in the table of contents These general-purpose financial statements are the rcsponsib1hty ofthe Clinch County Board ofEducation's management Our respons1bihty 1s 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 Umted States ofAmenca and the standards applicable to financial auchts contained m Government Auditing Standards, 1Ssued by the Comptroller General ofthe Umted States Those standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audn also includes assessing the accounting pnnc1ples used and s1gmficant estimates made by management, as well as evaluating the overall financial statement presentat10n We bcheve that our audit provides a reasonable basis for our opinion 
As descnbed in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accountmg practices and pohc1es which, m our op1mon, vary in some respects from generally accepted accountmg pnnc1ples These vananccs are descnbed as follows 
 
2002ARL-13 
 
  The general-purpose financial statements of the Board of Education d.!d not contam a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnciples 
,. School activity accounts mamtamed at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded m the general-purpose financial statements. 
 The Board of Education did not recogrnze as expenditures, m the year ended June 30, 2002, a portion of salanes and the correspondmg employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these urrrecorded 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 pnor to June 30, 2001, were improperly recorded m the year ended June 30, 2002. To conform to generally accepted accountmg pnnc1ples, revenues should be recorded when available and measurable and expenditures should be recorded when mcurred, rather than when funds are received or disbursed 
The aggregate effects on the general-purpose financial statements of these vanances or om1ss1ons have not been determmed, but are beheved to be matenal. 
In our opuuon, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly, mall matenal respects, the financial pos1t10n ofthe Clmch County Board ofEducation as of June 30, 2002, and the results of its operat10ns for the year then ended, in conformity with accountmg pnnc1ples generally accepted m the Umted States of Amenca 
In accordance with Government Aud1tmg Standards, we have also issued our report dated Apnl 24, 2003, on our cons1derat1on ofthe Clmch County Board of Education's internal control over financial reporting and our tests of its comphance with certam prov1s10ns oflaws, regulations, contracts and grants That report 1s an mtegral part of an audit performed in accordance with Government Auditing Standards and should be read m coniunct1on with tlus report m cons1denng the results of our audit. 
Our aud.!t was performed for the purpose of forming an op1mon on the general-purpose financial statements of the Clinch County Board of Education taken as a whole. The accompanymg comb1mng statements (Exh1b1ts E and F) and the financial schedules (Schedules 1 through 4), which includes the Schedule of Expenditures of Federal Awards as required by U S Office ofManagement and Budget C1Tcular A-133, Audits ofStates, Loco/ Governments, and Non-Profit Organzzatzons, are presented for purposes of add11Ional analysis and are not a required part of the general-purpose financial statements Such informallon has been subiected to the aud1tmg procedures apphed m the 
2002ARL-13 
 
 audit of the general-purpose financial statements and m our op1mon, except for the effects of the matters referred tom the third paragraph, such mformallon 1s fairly stated, mall matenal respects, m 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 ofthe State Auditor and made available to the press ofthe State, as proV1ded for by Official Code of Georgia Annotated Section 506-24. 
Respectfully submitted, 
 
RWH:as 2002ARL-13 
 
State Auditor 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
 CLINCH COUNTY BOARD OF EDUCATION 
COMBINED BAI.ANGE SHEET ALL FUND TYPES 
JUNE 30 2002 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Recelvable 
lnventones Food Dona1ed Commodrties Purchased Food 
To1al Asse1s 
LIABILmES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft 
Accounts Payable 
Salanes Payable Short-Tenn Debt Exp1ra<l Gran\ Balances Payable Deferred Revenue 
To1al LlabIllbes 
FUND EQUITY 
Fund Balances Resierved For lnventones Food Donated CommodrtIes Purchased Food Unreserved Designated for Self-Insurance Undes,gnated 
Tolal Fund Equity 
 
GOVERNMENTAL FUND 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
$ 
 
968,084 36 $ 
 
66,504 11 
 
1,165 564 53 
 
26,640 61 
 
146,052 76 
 
426,904 24 
 
6,961 66 6 772 66 
 
---------- $ 2.261 701 65 $ 
 
557 763 52 
 
$ 
 
43,630 43 $ 
 
141,747 96 
 
2,427 52 
 
147,206 99 
 
93542 530 41 
 
$ 
 
46 057 95 $ 
 
290 420 60 
 
$ 
 
$ 
 
31,160 45 
 
2,204.463 25 
 
$ 2,235,643 70 $ 
 
6,961 68 6 772 66 
251 626 36 267 362 72 
 
To1al L1ab1hl>es and Fund Equrty 
 
$ 2I2s1 I101 65 $ ___5"'s1,.1=s.,3_s_2_ 
 
The notes to the genera~purposie financial statements are an integral part of this slatement -2- 
 
 EXHIBJT"A" 
 
TYPES CAPITAL 
PROJECTS FUND 
 
TOTALS 
 
(Memorandum Only) 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 1,054,588 47 $ 
 
237,064 76 
 
1,192,205 34 
 
2,959,443 66 
 
$ 
 
208,189 80 
 
785,146 80 
 
451,354 49 
 
6,961 68 8 77268 
 
2,967 63 5 113 28 
 
$ 
 
208,189 80 $ 3 047 674 97 $ 3,655,943 82 
 
$ 
 
208,189 80 $ 
 
208,189 80 
 
185,378 41 $ 
 
102,652 41 
 
149,634 51 
 
109,131 74 
 
841,000 00 
 
93542 
 
739 61 
 
53041 
 
3 391 40 
 
$ 
 
208,189 80 $ 
 
544668 55 $ 1 056 915 16 
 
$ 
 
6,961 68 $ 
 
2,967 63 
 
8,772 68 
 
5,11328 
 
31,18045 
 
31,454 45 
 
s 
 
000 
 
2,456,091 61 
 
2,559,493 30 
 
$ 
 
0 00 $ 2,503,006 42 $ 2,599,02866 
 
$ 
 
208 189 80 $ 3 047 674 97 $ 3,655,943 82 
 
-3- 
 
 CLINCH COUNTY BOARD OF EDUCATION 
COMBINED STATEMENT OF REVENUES. EXPENDITURES ANO CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 
YEAR ENPEP JUNE 30. 2002 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current lnstruclJon Support Services Pupil Serv,ces Improvement of lnstrudlonal Serv1ces Educabonal Media Serv,ces General Adm1mstrabon School Adm1mstrabon Business Administration Maintenance and Operabon of Plant Student Transportabon Services Central Support Serv1ces Other Support Services Food Services Operabon 
Capital OU11ay 
Total Expendrtures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES <USES} 
Operabng Transfers In Operabng Transfers Out 
Total Other Flnanc,ng Sources (Uses) 
Excess of Revenues and Other F1nanong Soorc.es over (under) Expenditures and Other Financmg Uses 
FUND BALANCE JULY 1 
Food Inventory - Net Change In Penod Donated Cornmod1bes Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 7.001.326 95 $ 
 
594.467 32 
 
1.593.549 61 
 
1.936.253 32 
 
358,45B 05 
 
149 642 35 
 
$ 9,296,03B 32 $ 2,337,659 28 
 
$ 6.237.357 81 $ 1.202.109 92 
 
272,319 08 117,229 77 223.917 66 428,415 80 718,41818 159,341 21 773.965 14 414.72814 
25.06500 42.519 21 
5.630 19 9 999 01 
 
100,803 04 54,394 61 11.85461 90,451 17 
8,511 83 7,942 39 26,BOB 93 15.514 81 
11703455 595,014 64 69 507 2B 
 
$ 9,428,906 20 $ 2 299 947 7B 
 
$ 
 
-132 867 BB $ 
 
37 711 50 
 
$ 
 
-8 519 31 
 
$ 
 
-851931 
 
$ 
 
-141,3B7 19 $ 
 
2.377,030 B9 
 
37,711 50 221,997 77 
 
3.994 05 365940 
 
FUND BALANCE JUNE 30 
 
$ 21235164310 s_~2:;;;s~1.::36.2_1_2_ 
 
The notes to the general-purpose finanaal statements are an integral part of this statement 
 
-4 - 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30 2002 
 
JUNE 30, 2001 
 
$ 
 
208,189 80 $ 7,803,984 07 $ 7,349,925 95 
 
1,593,549 61 
 
1,550,475 40 
 
1,936,253 32 
 
2,088,003 61 
 
508100 40 
 
389135 36 
 
$ 
 
208,189 80 $ 11 84188740 $ 11 377 540 32 
 
$ 7,439,467 73 $ 7,069,567 38 
 
$ 
 
216 709 11 
 
373,12212 171,624 38 235,772 27 518,866 97 726,930 01 167,283 60 800,774 07 430,242 95 
25,06500 159,553 76 600,644 83 296 215 40 
 
352,614 78 215,926 71 197,319 62 584,355 28 694,758 09 197,086 93 724,896 00 455,042 49 
25,065 00 136,232 22 578,990 58 513 707 93 
 
$ 
 
216 70911 $ 11,945,563 09 $ 11745563 01 
 
$ 
 
-ll 519 31 $ 
 
-103 675 69 $ 
 
-368 022 69 
 
$ 
 
8,519 31 $ 
 
8,519 31 
 
-ll 519 31 
 
$ 
 
8 519 31 $ 
 
000 
 
$ 
 
000 $ 
 
-103,675 69 $ 
 
-368,022 69 
 
000 
 
2,599,028 66 
 
2,966,255 42 
 
3,994 05 3 65940 
 
838 72 -42 79 
 
$ 
 
000 $ 2 50300642 $ 2,599,028 66 
 
-5- 
 
 CLINCH COUNTY BOARD Of EDUCATION 
COMBINED STATEMENT OF REVENUES EXPENO(TlJRES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - CNQN-GAAP BASIS! 
GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30 2002 
 
EXHIBIT "C" 
 
REVENUES 
State Funds Federal Fimds Taxea Other Fimds 
TotalR...,._ 
EXPENDIBJRES 
CUl1W1I Instruction Support Selvlces Pupil Services Improvement of Instructional Servu:es Educallonal Media Services General AdmmatraHon School Admlnlstrabon Bualness Admlmtrat,on Maintenance and OperaHon of Plant Student Transp0ftabon Sesvlces Central Support SeMce& Other Support SeMces Food Selvlces Operation 
Capital Qullay 
Total Expendrtures 
Excesa ol R<Nenues ovor (under) ExpendlltJres 
OTt:IER FINANCING !l,!SEfil 
Other Uses 
Exatss of Revenues OWf (urder) Expenditures and Other Fr,anang Uses 
FUND l;IALANCE JYbY l 2001 
Adjustments Food Inventory - Net Chango In PenOII 
Donated Commodities Pun:llaed Food 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
$ 6,960,128 00 $ 7,001,326 95 
 
5,64900 
 
2,088,000 00 1,936,253 32 
 
233 889 00 
 
358,45805 
 
$ 9,267,666 00 $ 9,296,038 32 
 
$ 6,452,299 00 $ 6,237,357 81 
 
270.257 00 144,611 00 226,00600 418,934 00 677,839 00 192,122 00 947,787 00 442 375 00 
25,065 00 41,954 00 
5,630 00 
 
272,319 08 117,229 77 223,917 66 428,415 80 718 41818 159,341.21 773,96514 414,72814 
25,065 00 42 519 21 
5,630 19 9 999 01 
 
$ 9,834,679 00 $ 9,428,906 20 
 
$ -547.213 00 $ -132,867 88 
 
-8 51931 
$ -547,213 00 $ -141,367 19 2,329,943 00 2,377,030 69 59,129 00 
 
FUND BALANCE JUNE 30 2002 
 
S 1:841,65900 $ 2.235,64370 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
s 643,642 44 $ 594,467 32 
 
1 645 392 28 
 
1,593 549 61 
 
147 450 00 
 
149 642 35 
 
s 2,436,474 72 $ 2,337,659 28 
 
$ 1 261,717 51 $ 1.202,109 92 
 
117.25800 57 483 00 1165500 99,609 00 
6,000 00 9 122 00 49,204 00 17,177 00 
 
100,803 04 54 394 61 11,65461 90 45117 
6 511 63 7,942 39 26,608 93 15 514 81 
 
126,388 00 599,891 31 62 916 00 
 
117 034 55 595,014 64 69 507.26 
 
$ 2,418,920 82 $ 2,299,94778 
 
s $ 17 653 90 
 
37 711 50 
 
$ 17,853 90 $ 37,711 50 
 
223,403 00 
 
221,997 77 
 
8,557 00 
 
3 994 05 3 65940 
 
$ 249 813 90 $ 267 362 72 
 
The notes to Ille generel--pu,-J)056 finanaal statements are an Integral part o/ tlu5 alatement. -7- 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Clinch County Board ofEducauon (School D1stnct) was established under the laws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted by the Board. The School D1stnct 1s orgamzed 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. Accordmgly, the School D1stnct 1s a pnmary government and consists of all the organ1zat1ons that compose its legal entity 
FUND ACCOUNTING 
The School D1stnct uses funds to report on Its financial pos1tion and the results of its operat10ns Fund accountmg 1s designed to demonstrate legal compliance and to aid financial management by segregatmg transactions related to certam governmental functions or activities A fund 1s a separate accountmg enhty with a self-balancmg set of accounts 
General Fixed Assets are recorded as expenditures m the vanous funds at the lime of purchase A General Fixed Assets Account Group 1s not presently maintamed by the School D1stnct To conform to generally accepted accountmg pnnc1ples, a General Fixed Assets Account Group should be maintained for reportmg the cost of assets acquired by governmental fund types 
Although "school activity accounts" are mamtamed at the md1V1dual schools, neither the assets, liab11it1es and fund equity, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements. To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements 
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m compliance with generally accepted accountmg pnnc1ples applicable to governmental umts, unless otherwise disclosed m these notes Funds presented m this report are as follows 
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's cducahonal activmes. Governmental Fund Types mclude. 
GENERAL FUND - the fund used to account for aJI fmanc1al resources of the School D1stnct except those required to be accounted form another fund. These transacttons relate to resources obtamed and used for serVJces provided by a board of education 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capllal projects) that are legally restncted to ei.pend1tures for specified purposes These funds are received pnmanly from the Georgia Department of Education and from the Federal government to accomplish specific educatlonaJ objechves 
 
-8- 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCfAL STATEMENTS 
 
JUNE 30, 2002 
 
Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1s1t1on or construction ofmaJor capital fac1htJes. 
BASIS OF ACCOUNTING 
The accountmg and financial reportmg treatment apphed to a fund 1s detennmed by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current hah1htJ.es generally are mcluded on the balance sheet Operatmg statements ofthese funds present mcreases (1 e., revenues and other financmg sources) and decreases (1 e., expenditures and other financmg uses) m net current assets Their reported fund balance 1s considered a measure of available spendahle resources 
L1ah1ht1es which are expected to be financed from availahle spendable resources are reported as hab1h11es m the governmental funds 
Governmental funds are accounted for usmg the modified accrual basis of accountmg under which 
Revenues are recogmzcd when suscepl!ble to accrual (1 e , when they become both measurable and available) "Measurable" means the amount of the transaction can be determmed and "available" means collectible w1thm the current penod or soon enough thereafter to be used to pay hab1hl!es of the current penod The School D1stnct considers receivables collected WJthm sixty days after yearend to be available Property taxes and mterest are considered to be susceplible to accrual Nonexchange transaclions, m which the School D1stnct gives (or receives) value Without directly rece1vmg (or givmg) equal value m exchange, mclude property taxes, mtergovernmental grants and donal!ons Revenue for property taxes 1s recogmzed m the fiscal year for which the taxes are levied Revenue from grants and donations 1s recognized m the fiscal year m which all ehg1b1hty requirements have been salisfied 
Expenditures are generally recogmzed when the related fund hab1hty 1s mcurred 
A departure from the ahove defirutions 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 Educalion for the State's share of these contracts. Dunng fiscal year 2002, a substanlial number ofpersonnel of the School D1stnct were employed for a one hundred and mncty day penod beg1nnmg m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensation be paid m twelve equal monthly payments beginnmg m September 2001 and endmg m August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Educalion to the School D1stnct m the same twelve months As of June 30, 2002, compensatmn 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 D1stnet subsequent to June 30, 2002 Also, the State's portion of the compensalion paid m July and 
 
- 9- 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
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 pnor to June 30, 2001, were recorded m the year ended June 30, 2002. Generally accepted accountmg pnnc1ples reqmre 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 Clmch County Board ofEducation's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fundmg sources. There 1s no statutory prorub1t1on regardrng overexpenditure 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 estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountrng pnnc1ples. 
The budget process begms when the School D1stnct's admmistratlon prepares a tentative budget for the Board's approval After approval oftrus tentative budget by the Board, such budget 1s advertised at least once in a newspaper ofgeneral c1Tculat1on in the locahty At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentative budget, makes rev1s1ons as necessary and adopts a final school budget. This final budget 1s then submitted, m accordance with prov1s1ons of the Quahty Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education The Board may mcrease or decrease the budget at any time dunng the year. All unexpended budget authonty lapses at fiscal year-end 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand, demand deposits and short-term mvestrnents with onginal matuntles of three months or less from the date of acqu1s1tlon m authonzed financial 1nst1tut1ons. Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or insured Federal saVJngs and loan associations 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpartlc1patmg mterest-earnmg contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Part1c1patmg mterest-earnmg contracts and money market mvestments with a maturity at purchase of one year or less are reported at amortized cost. Both part1c1patmg mterest-eanung contracts and money market mvestrnents with a matunty at purchase greater than one year are reported at fair value The Official Code ofGeorgia 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and m selectmg among options for mvestrnent or among ms!ltutlonal bids for deposits, the highest rate ofretum shall be the objective, given eqmvalent conditions of safety and hqu1d1ty Funds may be mvested m the following 
(I) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the Uruted States government, 
(3) Obligations fully msured or guaranteed by the Umted States government or a Umted States government agency, 
(4) Obhga!Ions of any corporation of the Uruted States government, 
(5) Pnme banker's acceptances, 
(6) The Local Government Investment Pool adm1mstered by the State ofGeorgia, Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obhgahons of other pohtlcal subd1v1s1ons of the State of Georgia 
RECEIVABLES 
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformation available Receivables are recorded when either the asset or revenue recogmllon cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollecllble receivables 
PROPERTY TAXES 
The Clmch County Board of Comrruss1oners fixed the property tax levy for the 200 I tax digest year (calendar year) on September 17, 2001 (levy date) Taxes were due on December 21, 2001 (hen date). Taxes collected w1thm the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m fiscal year 2002. The Clmch County Tax Comm1ss1oner bills and collects the property taxes for the School D1stnct, withholds 2 5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School D1stnct. Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $1,902,691 64. 
 
- 11 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note l  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
The tax millage rate levied for the 2001 tax year (calendar year) for the Clmch County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value) 
 
School Opera!lons 
 
~ mills 
 
INVENTORIES 
 
FOOD INVENTORIES Inventories of donated food commodities used m the preparation of meals are reported on the Combmed Balance Sheet at their Federally assigned value Purchased foods inventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food cornrnod1t1es are recorded as revenues and expend!rures at the lime commodity items are received. Purchased foods mventones are recorded as expend1rures at the l!me of purchase The mventones reported on the balance sheet for donated food commod1!1es and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets 
 
INTERFUND TRANSACTIONS 
 
The School District has the followmg types of mterfund transactions 
 
Reimbursements ofexpenditures 1mt1ally made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg fund and as reductions of expenditures m the fund that 1s reimbursed. 
 
Operating transfers are recorded for all mterfund transactions other than reimbursements 
 
MEMORANDUM ONLY -TOTAL COLUMNS 
 
Total columns on the general-purpose financial statements are cap!loned "Memorandum Only" to md1cate that they are presented only to facilitate financial analysis Data m these columns do not present financial position or results ofoperations m conformity with generally accepted accountmg pnnc1ples Neither are such data comparable to a consohdation lnterfund ehmmatlons have not been made m the aggrega!lon of th.ts data 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sechon 45-8-12 provides that there shall not be on deposit at any time many depository for a time 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 secuntles pledged shall be equal to not less than 
 
- 12 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 2 DEPOSITS AND INVESTMENTS 
110 percent ofthe pubhc funds bemg secured after the deduction ofthe amount ofdeposit msurance Ifa depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe secunties pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthedailypool balance. OCGA Section 45-8-11 (b) provides an officer holdmg pubhc funds may, m his discretion, waive the requirement for secunty m the case ofoperating funds placed m demand deposit checkmg accounts. 
Acceptable secunty for deposits consists of any one of or any combination of the followmg 
(1) Surety bond signed by a surety company duly quahfied and authonzed to transact busmess withm 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 obhgatlons of the Umted States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of mdebtedness or other obligations of the counties or mumc1palit1es of the State of Georgia, 
(5) Bonds of any public authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subs1d1ary corporation of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obligations 1Ssued 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 Assoc1at10n, and the Federal National Mortgage Association 
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $2,267,715.76 The amounts ofthe total bank balances are classified mto three categones of credit nsk 
 
- 13 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 2 DEPOSITS AND INVESTMENTS 
 
Category I - Cash that 1s msured (cg., Federal depository msurance) or collaterahzed with secuntles held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name 
Category 2 - Cash collaterahzed with secunhes held by the pledgmg financial mshtul!on's trust department or agent m the School D1stnct's name. 
Category 3 - Uncollaterahzed deposits ('flus mcludes any bank balance that 1s collateral1zed with secunl!es held by the pledgmg financial mst1tut1on, or by its trust department or agent but not m the School D1stnct's name ) 
 
The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows 
 
Risk Category 
 
Bank Balance 
 
I 
 
$ 215,792.24 
 
2 
 
2,051,923 52 
 
3 
 
0.00 
 
Total 
 
$2,267,715.76 
 
CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value ofthe School D1stnct's total mvestments was $15,564 53 wluch 1s matenally the same as fa.ir value This mvestment consisted entirely offunds mvested in the Local Government Investment Pool adm1mstered by the State of Georgia, Office of Treasury and Fiscal Services which are not reqmred to be categonzed since the School D1stnct did not own any specific 1dent1tiable secunl!es in the pool The investment pohcy ofthe State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qmd1ty Portfolio) does not provide for investment in denvahves or s1mtlar investments A descnpt1on of the Pnmary L1qmd1ty Portfoho 1s as follows 
 
The Pnmary L1qU1d1ty Portfolio consists of Georgia Fund I, which 1s a combmahon local and state government investment pool, and Fund 6. Georgia Fund I 1s a stable net asset value mvestment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool is not registered with the SEC as an investment company but does operate Georgia Fund I m a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 hke pool The pool's pnmary obJecl!ves are safety of capital, mvestment mcome, hqmd1ty and d1vers1ficat1on while ma.inta.inmg pnnc1pal ($1 00 per share value) Net asset value 1s calculated weekly to ensure stab1hty The pool d1stnbutes earmngs (net of management fees) on a monthly basts and values part1c1pant's shares sold and redeemed based on $1 00 per share Pooled cash and cash equivalents and investments are reported at cost which approximates fa.ir value The pool does not issue any legally binding guarantees to support the value of the shares Part1c1pal!on in the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and umvers1hes; and current operating funds of the State of Georgia's General Fund 
 
- 14 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 2 DEPOSITS AND INVESTMENTS 
 
Investments m Georgia Fund 1 and Fund 6 are directed toward short-term mstruments such as U S Treasury obhgattons, secunttes issued or guaranteed as to pnnc1pal and mterest by the U S Government or any of its agencies or mstrurnentahttes, banker's acceptances and repurchase agreements. The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average matunty for Georgia Fund 1 on June 30, 2002, was 0 12 years The average mvestrnent duration for Fund 6 on June 30, 2002, was O75 years 
 
Note 3 NON-MONETARY TRANSACTIONS 
 
The School D1stnct receives food commodities from the Uruted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at their Federally assigned 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 om1ss1ons, Job related illness or mJunes to employees, acts of God and unemployment compensation 
 
The School D1stnct has obtamed commercial msurance for nsk of loss associated with torts, assets, errors or ormss1ons and acts of God. The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the School D1stnct's msurance coverage m any of the past three years 
 
The School D1stnct 1s self-msured with regard to unemployment compensatton claims In connection with this program, a self-insurance reserve has been estabhshed within the General Fund by the School D1stnct The School D1stnct accounts for claims Withm the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably esttmated 
 
Changes m the unemployment compensatton claims hab1hty dunng the last two fiscal years are as follows 
 
Begmnmg of Year L1ab1hty 
 
Claims and Changes m Esttmates 
 
Claims Paid 
 
End of Year Liab1hty 
 
2001 2002 
 
$ 
 
QOO $ 
 
000 $ 
 
0 00 s 
 
0 00 
 
$ 
 
000 $ 
 
27400 $ 
 
274 00 $ 
 
000 
 
The School D1stnct part:tc1pates m the Georgia School Boards Assoc1atton Workers' Compensatton Fund, a pubhc enlity nsk pool organized on July 1, 1992, to develop, implement, and adm1rustcr a program ofworkers' compensation self-msurance for its member orgaruzalions The School D1stnct 
 
- I5 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 4: RISK MANAGEMENT 
 
pays an annual prenuurn to the Fund for its general insurance coverage. Add1t1onal msurance coverage 1s proVIded through an agreement by the Fund with the Uruted States F1dehty and Guaranty Company to proVIde coverage for potential losses sustamed by the Fund m excess of $350,000.00 loss per occurrence, up to the statutory hm1t. 
 
The School D1stnct has purchased surety bonds to provide add1t1onal msurance coverage as follows 
 
Position Covered 
 
Amount 
 
Supermtendent High School Pnnc1pal All Other Pnnc1pals 
 
$ 25,000.00 $ 25,000.00 $ 10,000 00 
 
Note 5: ON-BEHALFPAYMENTS 
 
The School District has recogmzed revenues and expenditures m the amount of$ 130,663.65 for health insurance and retirement contnbutJons paid on the School D1stnct"s behalf by the followmg State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department ofCommumty Health For Health Insurance of Non-Certified Personnel In the amount of$116,075 65 
 
Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer"s Cost In the amount of$14,588.00 
 
Note 6: SIGNIFICANT COMMITMENTS 
 
The following is an analysis ofs1gmficant outstanding construction or renovation contracts executed by the School D1stnct as of June 30, 2002, together with funding available 
 
Pro1ect 
 
Unearned Executed Contracts 
 
Funding Available From State 
 
Air Cond!tlomng Additions and Improvements Chnch County High School 
 
$ 20.652 45 $ 23. 132.2,Q 
 
The amounts descnbed m this note are not reflected m the general-purpose financial statements 
 
- 16 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 7 CONTINGENT LIABILITIES 
 
Amounts received or receivable pnnc1pally from the Federal government are subject to audit and review by grantor agencies. This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School Dtstnct believes that such d1sallowances, 1f any, will be immatenal to its overall fmanc1al pos1t10n 
 
Note 8 RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, admm1strat1ve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), wluch 1s a cost-shanng multiple employer defined benefit pension plan TRS provides serv1ce retirement, d1sab1hty retirement and survivors benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are required by State statute to contnbute 5% ofthe1r gross earnmgs to TRS The School D1stnct makes monthly employer contnbutlons 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 contnbullon rate 1s 9 24% and employer contnbullons for the current fiscal year and the precedmg two fiscal years are as follows 
 
Fiscal Year 
 
Percentage Contnbuted 
 
Required Contnbullon 
 
2002 2001 2000 
 
100% 100% JOO% 
 
$ 600,791 52 $ 692,505 33 $ 643,782 82 
 
- 17 - 
 
 CLINCH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND 
JUNE 30. 2002 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodllles Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
257,936 69 $ 
 
66,401 93 
 
26,640 81 
 
1,41454 
 
5,172 05 
 
6,961 68 8 772 68 
 
Total Assets 
 
$ 
 
30112540 s_~.;1.;,1.:;:s~13~95~ 
 
LIABILITIES AND FUND EOUIJY 
LIABILITIES 
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue 
Total L1ab1ht1es 
FUND EQUITY 
Fund Balances Reserved For lnventones Food Donated Commodrt1es Purchased Food Unreserved Undes1gnated 
Total Fund Equity 
Total l.Jab1lllles and Fund Equrty 
See notes to the general-purpose financial statements 
- 18 - 
 
$ 
 
6,635 22 $ 
 
27,470 21 
 
27,728 46 
 
44,04412 
 
5965 
 
$ 
 
34 363 68 $ 
 
71 573 98 
 
$ 
 
6,961 68 
 
8,772 68 
 
251,628 36 $ 
 
000 
 
$ 
 
267 362 72 $ 
 
000 
 
$ 
 
301 726 40 $ ~-.;,7_.1~57,;.;3;;,,;9:;,;;B;,. 
 
 EXHIBIT "E" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
324,338 62 $ 
 
266,281 71 
 
26,640 81 
 
25,132 84 
 
$ 
 
368,606 89 $ 
 
53,710 76 
 
428,904 24 
 
299,422 71 
 
6,961 68 8 772 68 
 
2,967 63 5 113 28 
 
$ 
 
5371076 $ 
 
s .... 795 618 03 ~ 5.e...,8._9-=18;,.;,;11_ 
 
$ 
 
201,178 22 $ 
 
90,588 08 
 
75,434 41 
 
93542 
 
470 76 
 
$ 
 
368,606 89 $ 
 
36,656 29 $ 17,054 47 
53 710 76 $ 
 
237,834 51 $ 141,747 98 147,206 99 
93542 530 41 
528,255 31 $ 
 
226,617 78 45,782 64 100,388 97 
73961 3 391 40 
376,920 40 
 
$ 
 
6,961 68 $ 
 
2,967 63 
 
8,772 68 
 
5,11328 
 
$ 
 
0 00 $ _ _ _ _o~o=o~ 
 
251,628 36 
 
213,916 86 
 
$ 
 
000 $ 
 
000 $ 
 
267,362 72 $ --=22~1""9"'9"-7~7~7_ 
 
$ 
 
5371076 $ 
 
79561803 $~....5._9_8.,_9=10-=1=1- 
 
 19  
 
 CLINCH 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 Adm1mstrabon School AdmlnlStratJon Business Adm1nlstrabon Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
Caprtal Outlay 
Total Expenditures 
Excess of Revenues over (under) Expendrturas 
FUND BALANCE JULY 1 
Food Inventory - Net Change m Penod Donated Commodmas Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
39.096 00 $ 
 
446.871 32 
 
428.753 79 
 
149 642 35 
 
$ 
 
617 492 14 $ 
 
446 871 32 
 
$ 
 
416.745 93 
 
27.473 25 1.14376 400 00 
 
420 00 
 
s 
 
579.78064 
 
70 00 618 38 
 
$ 
 
579 780 64 $ 
 
446,871 32 
 
$ 
 
37.711 50 $ 
 
000 
 
221.997 77 
 
000 
 
3.994 05 3 65940 
 
FUND BALANCE JUNE 30 
 
$ 
 
267 362 72 $ ~~~-=0=00-- 
 
See notes to the general-purpose financial statements - 20 - 
 
 EXHIBIT "F" 
 
FEDERAL PROGRAMS 
 
OTHER PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ $ 1,164,79582 
$ 116479582 $ 
 
108,500 00 $ 108 500 00 $ 
 
594,467 32 $ 1,593,549 61 
149 642 35 
2,337,659 28 $ 
 
550,315 57 1,550,475 40 
149 79347 
2,250,584 44 
 
$ 
 
765,363 99 $ 
 
73,329 79 53,250 85 11,45461 90,451 17 
8,511 83 7,522 39 26,808 93 15,514 81 28,464 55 14,615 62 69,507 28 
$ 116479582 $ 
 
$ 
 
000 $ 
 
0 00 
 
20,000 00 $ 1,202,109 92 $ 1,221,127 36 
 
88,500 00 
 
100,803 04 54,394 61 11,85461 90,45117 8,511 83 7,942 39 26,808 93 15,514 81 117,034 55 595,014 64 69 507 28 
 
57,730 33 51,722 29 11,661 36 78,288 96 27,464 67 10,815 32 42,846 83 19,289 20 112,295 47 573,312 88 27 72612 
 
108 500 00 $ 000 $ 
 
2,299,947 78 $ 
37,711 50 $ 
 
2,234,280 79 16,303 65 
 
000 
 
221,997 77 
 
204,898 19 
 
3,994 05 3 65940 
 
838 72 -42 79 
 
$ 
 
ooo $-~===-o-=o_o_ s 2e11352 12 s 221 1991 11 
 
- 21 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPEND!TURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2002 
 
SCHEDULE "1' 
 
FUNDING AGENCY 
PROGRAM/GRANT 
 
CFDA NUMBER 
 
Agnculture, U S Department of Child Nutnbon Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services Sdlool Breakfast Program National Sd"lool Lunch Program 
 
10 553 10 555 
 
Total Chlkt Nutrttlon Cluster 
 
Other Programs Pass-Through From Georgra Department of Educabon Food and Nutrttlon Program Food Olatribuhon Program (1) Pass-Through From Office of School ReacHness Food and Nutnbon Program Child and Adult Care Food Program 
Total u s Depanment of Agricultufll 
 
10 550 10 558 
 
Education, U S Department of Speaal Educabon Cluster Pass-Through From Georgia Department of Education lndlvk:luats With Otsablhtles Education Ad Part B  Spec,al Education Capaaty Building Grant Flow llvough PfllM:hool 
 
84 027 84 027 84173 
 
Total Speaal Education Cluster 
 
Other Programs Pass-Through From Coastal Plains RESA d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Ac:t Trtle I Migrant Education Pass-Through From Georgia Department of Education Comprehensive Sd"lool Reform DemonstratJon Program Elementary and Secondary Education Ad Trtle I Grants to Local Educatlonal Agenaes TIiie II Eisenhower Profess10nal Development rrtlovt Cla158 Slze ReducUon Innovative Education Program Strategies Trtie X Charter Schools Vocabonal Education - Basic Grants to States High Sdlool Program Basic Grant Pass-Through From Okefenokee Regional Educational Service Agency Safe and Drug-Free Schools 
 
84 011 84 332 
84 010 84 281 84 340 84 298 84 282 
84 048 
84186 
 
Total U S Department of Education 
 
 22. 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
NIA 
 
$ 92,89440 
 
NIA 
 
301 900 85 $ 
 
$ 394 795 25 $ 
 
(2) 550,831 82 (3) 
550,831 62 
 
NIA 
 
28,949 02 
 
28,949 02 
 
NIA 
 
5 009 52 
 
$ 428 753 79 $ 
 
12l 
579,780 64 
 
NIA 
 
$ 
 
8 254 74 $ 
 
NIA 
 
215,887 08 
 
NIA 
 
40 Ol55 45 
 
$ 264,207 27 $ 
 
8,254 74 215,887 08 
40,0l55 45 
264,207 27 
 
NIA 
 
16 916 42 
 
16,916 42 
 
NIA 
 
52 000 00 
 
52 000 00 
 
NIA 
 
325,021 00 
 
NIA 
 
17 500 00 
 
NIA 
 
60,725 00 
 
NIA 
 
11,473 00 
 
NIA 
 
1~1.54017 
 
325 021 00 
17 500 00 60 725 00 11,47300 15154017 
 
NIA 
 
43,009 00 
 
43,009 00 
 
NIA 
 
5,414 47 
 
$ 947,806 33 s 
 
5 414 47 947 806 33 
 
 CLINCH COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Heaffll and Human Services, U S Department of Pass-Through From Concerted Services, Incorporated Projecl Head Start 
Labor U S Department of Pass-Tlvough From Southeast Georgia Regional Development Center WIA Youth ACIMbes 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
93600 
 
NIA 
 
$ 172 305 70 $ 
 
172 305 70 
 
17 259 
 
NIA 
 
$ 44,683 79 $ 
 
44,683 79 
 
Total Federal Financial Aasastance 
 
$ I 593 549 61 $_...:,1~7;:;44;.5~7~8~4:::,6 
 
NIA Not AvaDabkt 
Notes to the Schedule of Exoend11l.rea of Federal Awards 
(1) The amounts shown for the Food Dl!itnbuUon Program represent.I the Federally as&1gned value of nonmonetary assistance for donated commodities recelV8d and/or consumed by the sygtem dunng the current fiscal year 
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not mamtal:ned 6eparatety and are lnduded tn the 2002 National School Lunch Program 
(3) Expenchhns for lh11I program Include State, and/or Other FIX\ds Expenditures are not maintained by fmd source 
Major Programs are Identified by an astensk r) In front of the CFDA number 
 
The School Dtstrk:t did not provide Federal Assistance to any Subreap4ent 
The accompanying schedule of Federal awards includes the Federal grant acttvlty of the C~nch County Board of Education end ls presented on the modified accrual basis of acco1.11bng which Is the basis of eccounUng used in the 
preparation of the general-purpose financial statements 
 
See nolea to the general-purpose financial ltatementa 
 
- 23 - 
 
 CLINCH COUNTY BOARD OE EDUCATION SCHEDULE OF STATE REVENUE 
YEAR ENPEP JUNE 30 2002 
 
SCHEDULE"Z' 
 
AGENCY/FUNDING 
GRANTS Communrty Affairs Georgia Department of Local Assistance Grant 
Educabon. Georg,& Department of Quality BaslC EclucabOn 
Direct lnslrucbonal eo.t 
Kindergarten Prog111m Kindergarten Program - Earty lnterventJon Program Primary GradeS (1-3) Program Prmary Grades -Earty lnlOMlnbon (1-3) Program Upper Elementary Grado (H) Program Upper Elementary Grades - Earty lnlervenbon (4-5) 
Program Middle Grades (S-6) PrograJf\ High School General Educabon (9-12) Program Vocabonal Laboratory (9-12) Program Students wrth 01sabtl1ties 
CetegDI'/ I Ca1egory II Category Ill Ca1egory IV Ca1egoryV Gfled Student - Ca1egory VI 
Romad&al Educallon Program Altarna1Jve Educabon Program EngUah Speaka'" of 01her Lang,,_. (ESOL) Mad,a Carner Program Twenty Days AddrliOnal lnstrucliOn Staff and Profassoonal Davelopmant Indirect Cost Categorical Granls Pupil Tranapo,tat10n Regular 
Bos Replacement 
Spar..ty-Ragutar Sparsrty-Altarnative Program 
Nunrng ServiCN Pnn-, Supplornartts 
Vocational Supervisors 
Mid-term AdJUstmen1 Hold-Hannlaas 
EducabOn EqualazabOn Funding Grant FoodServlcea Vocabonal Education 
Other Slate Programs Appren1Jcaal-op P,og= 
Charter School1 Health lnsuranca 
Preschool HandlCOppad Program 
s - Mar School Program 4-8 
S t a - Readu,g P,ogram K-3 Lottery Programo 
MMlbw Technology 
Computen. an the Clauroom 
Georgia State Flnancmg and Investment Commission Raunburaamen1 on Construc:bon Projad5 
Office of Planrung and Budget GeorgLS Couicd tor the Arts 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE;. 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
s 
 
10 000 00 
 
s 
 
10 000 00 
 
270,693 00 102 300 00 720 595 00 28&,703 00 369 784 00 
115,069 00 656 935 00 505 427 00 251,332 00 
105,008 00 392,818 00 495,494 00 
61 390 00 6 063 00 3871100 6 182 00 
56 836 00 2,178 00 
129,755 00 38,087 00 25,425 00 1,045 372 00 
 
270 693 00 10230000 720,595 00 26& 703 00 369 784 00 
11506900 656 935 00 505,427 00 251,332 00 
105 008 00 392 818 00 495 494 00 
61 390 00 6 063 00 
3871100 6,182 00 
56,836 00 2 178 00 
129 755 00 38 087 00 25,425 00 1 045 372 00 
 
241 186 00 69 264 00 88 665 00 20 000 00 45,099 00 6,035 00 10 445 00 14 908 00 
467 096 00 
s 39,096 00 
25 641 00 
2,000 00 125,000 00 116,075 65 
29 505 00 4 467 54 
27 192 76 
6,492 00 34,725 00 
s 208 189 80 
 
241 186 00 69 264 00 88 665 00 20 000 00 45 099 00 e 035 oo 10 445 00 14 908 00 
467,096 00 39 096 00 2564100 
2 000 00 125 000 00 116 075 65 
29 ~5 00 4,467 54 
27 192 76 
6 492 00 34 725 00 
208 189 80 
 
20 000 00 
 
20 000 00 
 
- 24 - 
 
 CLINCH COUNTY BOARD Of EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE= 30 2002 
 
SCHEDULE "2" 
 
AGENCY/FUNPING 
GRANTS 
R- Office of School Readiness Pre-Kindef'garten Program 
~ of TrU"-')' and Fu,caJ SeMcas Publoc School Employees 
CONTRACT 
Human Rnoun::es. Georg111 Department of Famlly ~ 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 405 654 32 
s 14 588 00 
 
s 405,6541 32 
14 588 00 
 
_____ 
 
88 500 00 _ _ _ _ 
 
88 500 00 
 
$ 1,001 326 95 S 594 467 32 S 200 189 80 S 7 803 964 07 
 
See notes to the genenil-pupose finanoal statemants 
 
- 25- 
 
 CLINCH COUNTY BOARD OF EDUCATION 
GENERAL FUND -OUAUJY BASIC EDUCATION PROGRAM !OBEl ALLOTMENTS AND EXPEND!TURES - BY PROGRAM YEAR ENDED JUNE 30 2002 
 
SCHEDULE "3" 
 
DESCRIPTION 
Direct lnstructlons.J Programs Kindergarten Program Kindergarten Program-Early lntervenUon Program Primary Grades (1-3) Program Primary Grades-Earty Intervention (1-3) Program Upper Elementary Gr- (4-5) Program Upper Elementary Grades-Early lntOfVel11Jon (4-5) Program Moddlo Grades (6-6) Program Hlgh School General Education (9-12) Program Vocabonal Lab0ra1ory (9-12) Program Students wrt1"1 Dlsablhtles category I Category II category Ill Category IV catogoryV Gifted Student  Category VI Remedial Education Program Alternative EducaUon Program Enghsh Spoak8rs of Other Languages (ESOL) 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
Media Center Program Staff and Profeaalonal Development 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
$ 
 
s 308,795 00 $ 402,666 51 
 
s 3,797 36 
 
408,463 87 
 
115,9 00 
 
137,933 33 
 
1 766 38 
 
139 699 71 
 
616,702 00 
 
636,991115 
 
29,765 60 
 
666,764 95 
 
327,207 00 
 
242,716 19 
 
1 931 03 
 
244,847 22 
 
419,102 00 
 
546 179 49 
 
16 692 67 
 
562,672 16 
 
130,416 00 744,552 00 572,836 00 284,853 00 1,202,251 00 
43,673 00 7,007 00 
64,419 00 2 469 00 
 
63,559 44 791 417 79 612 837 36 327 016 36 
177 237 46 524 576 49 303,194 98 
47 376 25 50.72563 56,376 02 14,924 66 97,236 09 
2 469 00 
 
36 105 06 70 926 60 72,925 20 
7,238 25 7,843 38 3,693 06 1,015 42 
1,960 16 
622 72 
 
63 559 44 627,522 65 863 763 96 399,941 58 
184,475 73 532 219 67 308,866 04 
46,393 67 50,725 63 60,356 20 14 924 66 96,056 61 
2 469 00 
 
s 
 
s s 5,038,426 00 5,457,446 84 s 256,303 11 
 
5,713,749 75 
 
147,062 00 26,616 00 
 
166,411 06 14,239 65 
 
29 065 84 16 591 22 
 
197,476 90 30 831 07 
 
TOTAL QBE FORMULA FUNDS 
 
s 
 
5 214 304 00 $ 5,640,097 55 S 301 960 17 S 5 942 057 72 
 
(1) Comprised of State Funds plus Local Five Mill Share 
 
See notes to the general-purpose fin,naal statements 
 
 26 - 
 
 CLINCH COUNTY BOARD OF EDUCATION 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM CQBEl ALLOTMENTS AND EXPENDITURES - BY SITE 
YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "4" 
 
filIE 
Clinch County Pnmary School Clinch County Elementary School Fargo Charter School Chnch County High School Chnch County Pre-Kindergarten Chnch County ISS Center CrossRoads Alternative School Central Office (Alternative Education Program) 
TOTAL 
(1) Compnsed of State Funds plus Local Five Mill Share 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
1,808,343 00 $ 
 
1,890,792 86 
 
1,472,909 00 
 
1,624,596 12 
 
115,658 00 
 
97,471 48 
 
1,577,097 00 
 
1,990,474 38 
 
12,258 08 
 
10002 
 
98,058 81 
 
64 419 00 
 
$ 
 
5,038,426 00 $ ~=5,eSa7,;;13=-,7_4_9_75_ 
 
See notes to the genera~purpose financial sta1ements - 27 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 w. {IJ',',t.1 I 
 
HINTON 
 
c; IATL AUDllOR 
 
(404) 65.--:1174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WJ,hmgton Street, SW Suite 214 AtlJnta, Gcurg,a 10334-84(Kl 
Apri I 24, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Clmch 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 Chneh County Board of Educat10n as ofand for the year ended June 30, 2002, and have issued our report thereon dated April 24, 2003 This report was quahfied for vanous departures from generally accepted accounting pnnc,ples. as 1dent1fied m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of America and the standards apphcable to financial auchts contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States. 
Comphance 
As part of obtaming reasonable assurance about whether Clmch County Board of Education's financial statements are free of matenal misstatement, we performed tests of its compliance with certain prov1s1ons oflaws, regulations, contracts and grants, noncompliance with which could have d d1Tect and material effect on the dctermmat10n of financial statement amounts However, prov1dmg an op1mon on comphance with those prov1s1ons was not an obJecuve of our audit, and accordmgly, we do not express such an opm10n The results ofour tests disclosed no mstances ofnoncompllancc that are requ1Ted to be reported under Government Auditing Standards 
Internal Control Over Fmanc1al Reportmg 
In plannmg and performing our audit, we considered Clinch County Board of Education's internal control over financial reporting in order to determmc our aud1tmg procedures for the purpose of ell.pressmg our op1mon 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 conditwns involve matters coming to our attention relating to s1gmficant defic1enc1es m the design or operation ofthe internal control over financial reporting that, m ourJudgment, could adversely affect Clinch County Board of Education's ab1hty to record, process, sumrnanze and report financial data consistent with assertions of management in the financial statements The reportable condition 1s descnbed in the accompanying Schedule ofFindings and Questioned Costs as item FS-6321-02-01 
A matenal weakness 1s a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal in relation to the financial statements bemg audited may occur and not be detected Within a timely penod by employees in the normal course of performing their assigned functions. Our cons1derat1on of the internal control over financial reporting would not necessanly disclose all matters in the internal control that might be reportable cond111ons and, accordingly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses However, we consider item FS-6321-02-01 to be a matenal weakness. 
This report 1s intended solely for the informatwn and use ofthe management, members ofthe Clinch County Board of Education, Federal awarding agencies and pass-through enl111es and 1s not intended to be and should not be used by anyone other than these specified parties 
Respectfully submitted, 
- w.~--k 
 
RWHas 2002YB-41 
 
Sta e Auditor 
 
 {ll',,_~f.LL W. HINTON 
STATE MJDITOR /,.C4j 656-2 74 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington S1rcct, SW Suite 214 Atlanta, Georgia 30334-841>0 
Apnl 24, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Supenntendent and Members of the Chnch County Board of Educat10n 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
Ladies and Gentlemen 
Comphance 
We have audited the comphance ofClinch County Board ofEducation with the types ofcomphance requirements descnbed in the US Office of Ma11agemelll a11d Budget (Oli/B) Circular A-133 Compliance Supplement that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002 Chnch County Board of Educatlon's ma1or Federal programs are 1dcnt1fied in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs Comphance with the reqmrements of laws, rcgulatlons, contracts and grants apphcable to each of its maJor Federal programs 1s the respons1b1hty of Chnch County Board of Educat10n's management Our respons1b1hty 1s to express an opinion on Clmch County Board of Educat10n's compliance based on our audlt 
We conducted our audit ofcomphancc m accordance with auditing standards generally accepted in the Urutcd States of Amenca, the standards apphcable to financial audits containe<l in Government Audlting Standards. issued by the Comptroller General of the Umted States, and 0MB Cucular Al 33, Audas of States, Local Governments, and Non-Profit Orgamzatwns Those standards and 0MB CITcular A- 133 reqmre that we plan and perform the audit to obtam reasonable assurance about whether noncomphance with the types ofcompliance reqmrements referred to above that could have a direct and matenal effect on a maJor Federal program occurred An audit includes cxarmmng, on a test basis, evidence about the Clmch County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances We behcve that our audit provides a reasonable basis for our op1mon Our audit does not provide a legal determination on Chnch County Board of Education's compliance with those reqmrements 
2002SA-l0 
 
 In our opm1on, the Clinch County Board of Education complied, m all matenal respects, with the reqmrements referred to above that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002. 
 
Internal Control Over Comphance 
 
The management of Chnch County Board of Education 1s responsible for estabhshmg and mamtammg effective mtemal control over comphance with reqmrements of laws, regulat10ns, contracts and grants applicable to Federal programs In plannmg and perforrmng our audit, we considered Chnch County Board ofEducat10n's mtemal control over compliance with reqmrements that could have a d1rect and matenal effect on a maJor Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opm1on on compliance and to test and report on mtemal control over comphance m accordance with 0MB Circular A-133 
 
Our consideration of the mtemal control over compliance would not necessanly disclose all matters m the mtemal control that might be matenal weaknesses. A matenal weakness 1s a concht1on m wluch the design or operation ofone or more ofthe mtemal control components does not reduce to a relatively low level of nsk that noncompliance with apphcable reqmrements of laws, regulations, contracts and grants that would be matenal m relation to a maJor Federal program bemg audited may occur and not be detected w1thm a timely period by employees m the normal course ofperformmg their assigned functions We noted no matters mvolvmg the mtemal control over comphance and its operation that we consider to be matenal weaknesses. 
 
Tlus report 1s mtended solely for the mformatlon and use of the management, members ofthe Chnch County Board of Education, Federal awardmg agencies and pass-through entlt1es and 1s not mtended to be and should not be used by anyone other than these specified parties 
 
Respectfully submitted, 
 
~41,~ 
 
Ru 
 
Hmton 
 
State Auditor 
 
RWH.as 2002SA-10 
 
 SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 CLINCH 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-6321-00-01 FS-6321-01-01 
 
Further Act10n Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Frulure to Mam!3.Jn General Fixed Assets Accollilt Group Reportable Condition - Matenal Weakness Fmdmg Control Number. FS-6321-01-01 
 
The Chnch Collilty Board of Education 1s currently m the process ofsecurmg an agency to assist m 1dent1fymg all general fixed assets The general fixed assets will mclude an mventory oflands, bmldmgs and eqmpment owned by the Board ofEducation that exceeds $10,000 00. Each identified general fixed asset will be identified with a general descnptlon of the property, date acqmred, acqws1!Jon cost as well as any other areas that may be required or essen!Jal to the 1dentification of the property. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 CLINCH 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 Fmancial Statements The auditor's op1ruon on the Clinch County Board of Education's financial statements was quahfied for vanous departures from generally accepted accountmg pnnc1ples 
2 Reportable Cond1t1ons m Internal Control Disclosed by the Audit of the Fmancial Statements The audit report for the Clmch County Board of Education disclosed a financial statement reportable cond1t1on related to the followmg control category. 
General Fixed Assets 
The reportable condition descnbed above 1s considered to be a matenal weakness. 
3 Noncompliance Malena! to the Fmancial Statements The audit ofthe Clmch County Board ofEducation disclosed no instances ofnoncomphance that were deemed to be matenal to the financial statements 
4 Reportable Conditions m Internal Control Over Ma)Or Programs The audit report for the Clinch County Board of Education chd not disclose any reportable conditions m mtemal control over maJor programs. 
5 Type of Report Issued on Compliance for Ma1or Programs The auditor's opm1on on the Clinch County Board ofEducation's report on compliance With requirements applicable to maJor programs was unqualified 
6 Audit Fmdings Regmred to be Reported by Section .51 0(a) of 0MB Circular A-133 The Clinch County Board ofEducation's audit did not disclose audit findmgs reqmred to be reported by sechon .510(a) ofOMB Circular A-133 
7 Ma)Or Programs Federal awards audited as ma1or programs are as follows 10 553 Food and Nutntlon Program - Food Services - School Breakfast Program 10 555 Food and Nutntlon Program - Food Services - National School Lunch Program 
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00. 
9 Low Risk Aud1tee The Clmch County Board of Education qualified as a low nsk aud1tee as defined by Sechon 530 ofOMB Circular A-133 
- 1- 
 
 CLINCH 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 Cond11Ion - Matenal Weakness Repeated From Pnor Year Finding Control Number: FS-6321-02-01 The Chnch County Board of Education did not mamtam a system-wide General Fixed Assets Account Group w1thm the formal accounting records as required by generally accepted accounting pnnc1ples This cond11lon results in the general-purpose financial statements of the School D1stnct being incomplete and not in accordance with generally accepted accounting pnnc1ples Appropnate action should be taken by the School D1stnct to estabhsh accountmg controls and procedures to provide for maintenance of a General Fixed Assets Account Group These subs1d1ary records should include an inventory of land, buildings and eqmpment owned by the School D1stnct and should include, but may not be hm1ted to, date acquued, acqms1t1on cost, estimated replacement cost, location and dcscnptlon Detailed records should be maintained for all add1t10ns and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported 
-2-