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

STATE OF GEORGIA DEPARTMENT OF AUDITS AND ACCOUNTS GA
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COFFEE COUNTY BOARD OF EDUCATION
DOUGLAS, GEORGIA REPORT ON AUDIT
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2001
Russell W. Hinton state Auditor

COFFEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

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

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

27

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

COFFEE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

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 OMB CIRCULAR A-133

SECTION III 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

:l'SSELL \\'. HI1'.TO,""
STATE AUDITOR 1404! 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
25.t Washington Street. Sw., Suite 214 Atlanta, Georgia 30334-X4()()
February 28,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Coffee 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 Coffee County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Coffee County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, 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. Those standards require that we plan and perfonn the audit to obtain reasonable assurance about whether the financial statements are free of material 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.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2001ARL-13

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:
* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and 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 Coffee County Board ofEducation as ofJune 30, 2001, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated February 28, 2002, on our consideration ofthe Coffee County Board ofEducation'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.
200 1ARL-13

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Coffee County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the 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 effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth 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.
espectfully submitted,
~..k
Ru sell W. Hinton Sta e Auditor
RWH:gp 2001ARL-13

COFFEE COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of: Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,652,788.98 $ 2,052,365.20 $ 7,766,072.68

561,554.56

218,857.34

445,759.85

59,256,53 37,945.41

$ 4,214,343.54 $ 2,368,424.48 $ =~8;;,;;,2=1~1=,8=3=2,=53==

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

183,421.16

532,798.00

25,872.95

$

8,644,33

577,396.75

$

750,736.44 $ _ _:::.:57~7-,-,,3:..:::9.:::;6.,,-75=--

$

59,256.53

37,945.41

$ 7,634,435.78

$ 4,214,343.54

1,520,486.10

0.00

$ 4,214,343.54 $ 1,617,688.04 $ 7,634,435.78

Total Liabilities and Fund Equity

$ 4,214,343.54 $ 2,368,424.48 $ =~8=o,2=1~1=,8=3=2.=53==

The notes to the generalpurpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

357,168.97

$ 13,828,395.83 $ 13,059,347.41

591.66

1,226,763.41

1,343,387.17

$

357,760.63

59.256.53 37,945.41
357.760.63

49,846.07 32,322.95
344,045.50

762,239.37 60,116.19

762.239.37 60,116.19

1,010,954.50 75.299.33

$

357,760.63 $

U80,116.19 $ 16,332A77.37 $ 15,915,202.93

$

183A21.16 $

120,277.25

532,798.00

512,054.43

25,872.95

56A55.11

577,396.75

135,920.00

15,102.00

8,644.33

16,000.00

$

60,116.19

60,116.19

75,299.33

1,120,000.00

1,120,000.00

1,355,000.00

$

1.180,116.19 $ 2.508.249.38 $ 2,286,108.12

$

357.760.63

0.00

$

357,760.63

$

6.183.02

$

357,760.63

344,045.50

59,256.53 37.945.41 7,634A35.78

49,846.07 32.322.95 7,560,543.61

5,734,829.64

5,636,153.66

$ 13,824,227.99 $ 13,629,094.81

$

357.760.63 $

1,180,116.19 $ 16,332A77.37 $ 15,915,202.93

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COFFEE COUNTY BOARD OF EDUCATION

COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

.

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30. 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educaticnal Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
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 Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 32.421,359.12 $ 3,753.27
10,204,851.34 754,795.16
$ 43,384,758.89 $

1,998,994.19 5,153,970.68
839,674.69
7,992,639.56

$ 29,511,156.83 $
1,940,955.84 1,365,736.79 1,158,748.88
461,784.00 2,617,262.27
336,830.62 2,781,585.84 1,880,244.97
200,303.41 209,549.49
5,137.89
15,183.14 5,372.86

3,534,337.80
445,951.14 354,879.29
20,727.02 26,578.03
8,317.88
4,354.66 6,500.61
65,585.39 3,399,712.99
145,875.00

$ 42.489,852.83 $

$

894,906.06 $

8,012,819.81 -20,180.25

$

$

-868,165.86

$

-868,165.86 $

85,933.01 85,933.01

$

26,740.20 $

65,752.76

4,187,603.34

1,536,902.36

9.410.46 5,622.46

FUND BALANCE JUNE 30

$ 4,214,343.54 $ 1,617,688.04

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

S 2,535,462.00
77,122.90 $ 315,544.58
$ 2,928,129.48 $

$
341,998.78 12,653.85

36,955,815.31 $ 5,157,723.95 10,623,973.02 1,922,668.28

31,197,217.68 4,920,426.26 14,891,624.11 1,776,473.73

354,652.63 $ 54,660,180.56 $ 52,785,741.78

$ 3,636,470.16 $

S 3,636,470.16 $

$

-708,340.68 $

$ 33,045,494.63 $ 29,248,372.93

2,386,906.98 1,720,616.08 1,179,475.90
488,362.03 2,625,580.15
336,830.62 2,785,940.50 1,886,745.58
200,303.41 275,134.88 3,404,850.88 3,782,345.16

2,777,068.96 1,929,916.07 1,166,417.46
472,485.98 2,405,794.96
306,594.41 2,723,103.99 1,764,635.77
202,824.58 145,532.12 3,246,230.12 1,256,251.88

235,000.00 105,187.50
750.00

250,183.14 110,560.36
750.00

344,738.72 137,266.59

340,937.50 $ 54,480,080.30 $ 48,127,234.54

13,715.13 $

180,100.26 $ 4,658,507.24

$

782,232.85

$

782,232.85

$

868,165.86 $

-868,165.86

$

0.00 $

48,816.98 -48,816.98
0.00

$

73,892.17 $

7,560,543.61

13,715.13 $

180,100.26 $

344,045.50

13,629,094.81

4,658,507.24 8,967,566.63

9,410.46 5,622.46

-2,718.51 5,739.45

$ 7,634,435.78 $

357,760.63 $ 13,824,227.99 $ 13,629,094.81

-5-

COFFEE 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, 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 31,650,917.00 $ 32,421,359.12

10.000.00

3.753.27

10.265,673.00

10.204.851.34

366,000.00

754.795.16

Total Revenues EXPENDITURES

$ 42.292.590.00 $ 43.384.758.89

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service

$ 29.026,472.42 $ 29.511.156.83

1,689.146.50 1,474.369.31 1.223.803.00
414.675.07 2.739.907.27
388.174.69 3,462.917.79 2.049.414.92
277.637.95 150.064.00
50.000.00

1.940.955.84 1.365.736.79 1.158.748.88
461.784.00 2.617 .262.27
336.830.62 2.781.585.84 1.880.244.97
200.303.41 209.549.49
5.137.89
20,556.00

Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)

$ 42.946.582.92 $ 42,489.852.83 $ -653.992.92 $ 894,906.06

Other Sources Other Uses

$ 198.000.00 -649,482.00 $

Total Other Financing Sources (Uses) $ -451,482.00 $

-868.165.86 -868.165.86

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ -1.105,474.92 $

26,740.20

FUND BALANCE JULY 1, 2000

5.209,427.64

4.187.603.34

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

606.65

FUND BALANCE JUNE 30. 2001

$ 4.104.559.37 $ 4.214.343.54

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,788,142.60 $ 1.998,994.19

4,795.121.00

5.153.970.68

780.280.00

839.674.69

$ 7.363.543.60 $ 7.992.639.56

$ 3.352,431.23 $ 3.534.337.80

321.333.25 362,480.01
5,446.00 26.613.12

445.951.14 354.879.29
20.727.02 26.578.03
8.317.88

7.000.00

4.354.66 6.500.61

43.059.99 3.173.230.70
160.000.00

65.585.39 3.399.712.99
145.875.00

$ 7.451.594.30 $ 8.012.819.81 $ -88.050.70 $ -20.180.25

$ 145.000.00 $ 85.933.01 $ 145.000.00 $ 85.933.01

$ 56.949.30 $ 65.752.76

1,499,493.68

1.536.902.36

-13.170.35

9,410.46 5.622.46

$ 1,543.272.63 $ 1,617,688.04

The notes to the general-purpose financial statements are an integral part of this statement. - 6-
_-_._- . ~_._----_.-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Coffee 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 a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

COFFEE COUNTY BOARD OF EDUCAnON

EXHffilT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

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

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_ - -._-_ ""--".

- . - ,..

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number of personnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Coffee 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 of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
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
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COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.

RECEIVABLES

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

PROPERTY TAXES

The Coffee County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 2,2000 (levy date). Taxes were due on December 1,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 200 1. The Coffee County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $10,163,848.74 and for school bonds amounted to $1,811.28.

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

School Operations

16.25 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $417,310040 and was recorded in the Capital Projects and Debt Service Funds. The School District has received the maximum amount of sales tax authorized and collection of this sales tax was terminated.

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

- 10-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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.
COMPENSATED ABSENCES
Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
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 of expenditures 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 of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.

- 11 -

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS
COLLATERALIZAnON 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 ionger than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws ofthe State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Horne Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Horne Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZAnON OF DEPOSITS At June 30, 2001, the bank balances were $16,763,152.78. The amounts of the total bank balances are classified into three categories of credit risk:

_._--_ - - - - - - - - - - - -- - - - - .. --~- ~---

"._,~ -~

..-

- 12 -

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINA ~~CIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS

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

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

Risk Category

Bank Balance

1

$ 557,168.21

2

7,059,984.57

3

9,146,000.00

Total

$16.763,152.78

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; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk of loss associated with assets.

The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 1994, to develop and administer a plan to reduce risk of loss on account of general liability and property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense ofclaims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse). Payment ofexcess insurance for the system varies by line of coverage.

- 13 -

COFFEE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

The School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat 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 School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered

Amount

Superintendent All Other Employees

$ 100,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Coffee County Board of Education has entered into various lease agreements as lessee for equipment. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

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

Purpose

Interest Rates

Amount

General Government - Series 1980

8.5%

$ 1.120,000.00

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

- 14-

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2000

$ 75,299.33 $ 1,355,000.00 $ 1,430,299.33

Deductions Debt Retired

15,183.14

235,000.00

250,183.14

Balance June 30, 2001

$ 60,116.19 $ 1.120.000.00 $ 1.180,116.19

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

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2002 2003 2004 2005

$ 20,556.00 $ 334,575.00 $ 355,131.00

20,556.00

332,475.00

353,031.00

20,556.00

328,675.00

349,231.00

6,851.98

323,175.00

330,026.98

Total Principal and Interest $ 68,519.98 $ 1.318.900.00 $ 1.387.419.98

Deduct: Imputed Interest

8,403.79

Net Present Value of Future Minimum Lease Payments $ 60.116.19

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $622,532.14 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$482,581.48

- 15 -

COFFEE COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: ON-BEHALF PAYMENTS
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $36,987.66
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$102,963.00
Note 7: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
Note 8: ACCUMULATED EMPLOYEES' LEAVE
The School District's twelve month professional personnel earn one and one-quarter days ofsick and personal leave each month with a maximum accumulation of forty-five days. Upon termination of employment, all sick and personal leave is forfeited. Upon retirement, twelve month employees will be paid for unused accumulated personal leave up to the maximum accumulation allowed. See Note 1 - Compensated Absences
Note 9: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

- 16 -

COFFEE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 9: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 3,252,001.19 $ 3,007,394.42 $ 2,941,271.31

- 17-

COFFEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$ 1,739,475.96 $

201,544.18

34,031.00

59,256.53 37,945.41

$

1,870,708.90 $ =~2;:;0;.;,1,;,;;,5;.;,44.;,;.=18=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

82,531.71 $

44,817.82

180,489.15

156,726.36

$

263,020.86 $

201,544.18

$

59,256.53

37,945.41

1,510,486.10 $

$ 1,607,688.04 $

0.00 0.00

$ 1,870,708.90 $ ===20;;,,1;.=;,5;;,,4=4=.1=8=

See notes to the general-purpose financial statements. - 18 -

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

111,345.06 $

0.00 $ 2,052,365.20 $ 2,102,190.80

184,826.34

218,857.34

55,616.33

59,256.53 37,945.41

49,846.07 32,322.95

$

296,171.40 $

0.00 $ 2,368,424.48 $ 2,239,976.15

$

56,071.63

195,582.49

25,872.95

8,644.33

$

286,171.40

$

183,421.16 $

118,564.25

532,798.00

512,054.43

25,872.95

56,455.11

8,644.33

16,000.00

$

750,736.44 $

703,073.79

$

10,000.00 $

$

10,000.00 $

$

296,171.40 $

$

6,183.02

$
0.00 0.00 $

59,256.53 37,945.41
1,520,486.10
1,617,688.04 $

49,846.07 32,322.95
1,448,550.32
1,536,902.36

0.00 $ 2,368,424.48 $ 2,239,976.15

- 19 -

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

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 School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
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.
- 20-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

220,624.00 $ 1,587,499.34

2,401,350.08

839,674.69

$ 3,461 ,648.77 $ 1,587 ,499.34

$ 1,408,816.04
125,016.83 33,722.10
21,836.62

$ 3,399,712.99

507.68

$ 3,399,712.99 $ 1,589,899.27

$

61,935.78 $

-2,399.93

$

61,935.78 $

1,530,719.34

9,410.46 5,622.46

2,399.93
0.00 0.00

$ 1,607,688.04 $=====O.=OO:=.

__ --_.-

.

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

8,967.85 $

2,752,620.60

$ 2,761,588.45 $

181,903.00 $ 181,903.00 $

1,998,994.19 $ 5,153,970.68
839,674.69
7,992,639.56 $

1,899,578.34 4,910,743.94
837,851.88
7,648,174.16

$ 1,954,901.17 $

320,934.31 309,374.88
20,727.02 4,741.41 8,317.88

4,354.66 5,992.93 65,585.39

145,875.00

$ 2,840,804.65 $

$

-79,216.20 $

170,620.59 $ 11,782.31
182,402.90 $ -499.90 $

3,534,337.80 $
445,951.14 354,879.29
20,727.02 26,578.03
8,317.88
4,354.66 6,500.61 65,585.39 3,399,712.99 145,875.00
8,012,819.81 $
-20,180.25 $

3,545,203.22
350,847.45 532,818.85
3,672.72 25,388.07 18,988.43
753.55
640.32 65,750.24 3,242,180.46
7,786,243.31
-138,069.15

83,033.18

$

3,816.98 $

6,183.02

499.90

85,933.01

32,397.34

0.00 $ 0.00

65,752.76 $ 1,536,902.36

-105,671.81 1,639,553.23

9,410.46 5,622.46

-2,718.51 5,739.45

$

10,000.00 $

0.00 $ 1,617,688.04 $ 1,536,902.36

- 21 -

COFFEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Accounts Receivable

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

155,743.25 $ 7,610,329.43

421,653.50

24,106.35

Total Assets

$

577,396.75 $ 7,634,435.78

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

577,396.75

$

577,396.75

$ 7,634,435.78

$

0.00

0.00

$

0.00 $ 7,634,435.78

Total Liabilities and Fund Equity

$

577,396.75 $ 7,634,435.78

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

EXHIBIT"G"

LOTIERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $ 7,766,072.68 $ 6,881,365.36

445,759.85

830,200.25

$

0.00 $ 8,211,832.53 $ 7,711,565.61

$

577,396.75 $

135,920.00

15,102.00

$

577,396.75 $ _ _1,-=5-:..1,-",0=22=.0;:;,.;0,--

$ 7,634,435.78 $ 7,560,543.61

$

-....:O::..:..;.O::..::O~

0.00

0.00

$

0.00 $ 7,634,435.78 $ 7,560,543.61

$

0.00 $ 8,211,832.53 $ 7,711,565.61

- 23-

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

REVENUES
State Funds Taxes Other Funds
Total Revenues EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

2,535,462.00

$

$

2,535,462.00 $

77,122.90 315,544.58
392,667.48

$

100,000.00 $

3,217,694.85

$

3,317,694.85 $

$

-782,232.85 $

142,738.00 137,524.43
33,569.14
313,831.57
78,835.91

$

782,232.85

$

$

782,232.85 $

-4,943.74 -4,943.74

$

0.00 $

73,892.17

0.00

7,560,543.61

$

0.00 $ 7,634,435.78

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

EXHIBIT "H"

LOTIERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $ 2,535,462.00

77,122.90 $ 4,711,135.98

315,544.58

269,557.30

$

0.00 $ 2,928,129.48 $ 4,980,693.28

$

242,738.00 $

117,290.64

$

4,943.74

3,360,163.02

955,899.88

33,569.14

183,061.36

$

4,943.74 $ 3,636,470.16 $ 1,256,251.88

$

-4,943.74 $

-708,340.68 $ 3,724,441.40

$

4,943.74 $

787,176.59 $

666,173.44

-4,943.74

-649,753.80

$

4,943.74 $

782,232.85 $

16,419.64

$

0.00 $

73,892.17 $ 3,740,861.04

0.00

7,560,543.61

3,819,682.57

$

0.00 $ 7,634,435.78 $ 7,560,543.61

- 25-

COFFEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 357,168.97 $

0.00 $

357,168.97 $

343,484.43

591.66

591.66

561.07

Total Assets

$ 357,760.63 $

0.00 $

357,760.63 $ ====3=4"",40:;,0"",45=.=50==

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 357,760.63 0.00 $

$
---'0::.,:..0=-=0'-

357,760.63 $ 0.00

344,045.50 0.00

Total Fund Equity

$ 357,760.63 $

0.00 $

357,760.63 $ ====3=4=,,4,=04,;,;5=.5~0=

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

_.. ... _.,---

COFFEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGE:.S IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001

EXHIBIT "J"

FUND BALANCE JUNE 30

$ 357,760,63 $

0.00 $ 357,760.63 $==3=4=4==,0=4=5.=50==

See notes to the general-purpose financial statements.

- 27-

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture. U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

10.553 10.555

N/A

$ 541.188.55

(2)

N/A

1.623,519.62 $ 3.229,493.72 (3)

Total Child Nutrition Cluster

$ 2,164,708.17 $

3,229,493.72

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

N/A

Pass-Through From Office of School Readiness

Food and Nutrition Program

Child and Adult Care Food Program

10.558

N/A

170,219.27 66,422.64

170,219.27 (2)

Total U. S. Department of Agriculture

$ 2,401,350.08 $

3,399,712.99

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool

84.027 84.173

N/A

$ 517,098.36 $

N/A

65,253.28

517,098.36 65,253.28

Total Special Education Cluster

$ 582,351.64 $

582,351.64

Other Programs Direct Impact Aid Pass-Through From Berrien County Board of Education d/b/a Southern Pine Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title III Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant

84.041
84.011
84.010 84.281 84.318 84.298 84.340 84.186
84.048

3,753.27

(4)

N/A

141,587.97

141,587.97

N/A

1,459,268.56

1,459,268.56

N/A

41,471.00

47,545.13 (3)

N/A

125,000.00

125,193.60 (3)

N/A

53,930.00

N/A

216,319.00

N/A

30,233.00

53,930.00 225,656.57 (3)
39,487.58 (3)

N/A

78,578.00

79,439.58 (3)

Total U. S. Department of Education

$ 2,732,492.44 $

2,754,460.63

- 28"_..- . - - - - - - - -

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services. U. S. Department of Pass-Through From Children and Youth Coordinating Council of Georgia Abstinence Education Block Grant
Justice. U. S. Department of Pass-Through From Children and Youth Coordinating Council of Georgia S.T.A.R. Program

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.235

N/A

$ 23,881.43 $

37.882.61 (3)

16.540

N/A

$

48,461.41 (3)

Total Federal Financial Assistance

$ 5.157,723.95 $===6,:;;,24.;,;0;,:..5;.,;1=7,;,;;.6==4

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are induded in the 2001 National School Lunch Program.
(3) Expenditures for this program include State. and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards indudes the Federal grant activity of the Coffee 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.

- 29-

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Children and Youth Coordinating Council of Georgia Abstinence Education Block Grant

$

8,967.85

$

8,967.85

Community Affairs, Georgia Department of Govemor's Emergency Funds (1)

$

10,000.00

10,000.00

Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Category V Gifted Student - Category VI Remedial Education Program Altemative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional DevelopmeOlt Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Environmental Science Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Vocational Technology Program Computers in the Classroom

1,597,483.00 661,423.00
3,644,326.00 2,194,926.00 2,181,527.00 3,958,867.00 3,064,996.00
932,561.00
45,009.00 916,t23.00 1,541,920.00 363,577.00
11,642.00 381,931.00 605,221.00 287,215.00
25,961.00 697,437.00 192,630.00 4,001,710.00

855,565.00 234,206.00 157,211.00
31,693.00 34,360.00 2,783,125.00
96,380.00
13,994.65 1,500.00
482,581.48 5,000.00
18,093.00 108,508.00
10,374.80 36,987.66

220,624.00
30,000.00 153,971.00

1,597,483.00 661,423.00
3,644,326.00 2,194,926.00 2,181,527.00 3,958,867.00 3,064,996.00
932,561,00
45,009.00 916,123.00 1,541,920.00 363,577.00
11,642.00 381,931.00 605,221.00 287,215.00
25,961.00 697,437.00 192,630.00 4,001,710.00
855,565.00 234,206.00 157,211.00
31,693.00 34,360.00 2,783,125.00 220,624.00 96,380.00
13,994.65 1,500.00
482,581.48 5.000.00
18,093.00 108,508.00
10,374.80 36,987.66
30,000.00 153,971.00

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 2,535,462.00

2,535,462.00

Human Resources, Georgia Department of Family Connection

59,358.53

59,358.53

- 30-

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
Public Health, Georgia Department of Tobacco Use Prevention Grant
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge ReadIng First Program
Human Resources, Georgia Department of Governor's Emergency Funds (2)

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 1,403,528.34 $ 102,963.00
5,000.00

$ 1,403,528.34 102,963.00 5,000.00

60,473.00 7,500.00

181,903.00

60,473.00 181,903.00
7,500.00

$ 32,421,359.12 $ 1,998,994.19 $ 2,535,462.00 $ 36,955,815.31

(1) The purpose of the funds are to purchase new musical instruments for West Coffee Middle School Band. (2) The purpose of the funds are to provide operating funds for Mary Hayes After School/Parenting Program.

See notes to the general-purpose financial statements.

- 31-

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2001

SCHEDULE "3"

PROJECT
Acquiring, constructing and equipping the following capital outlay projects at a total maximum cost of $11,299,425.00: (i) a new elementary school, (ii) renovations and improvements to Ambrose Elementary, Eastside Elementary, Westside Elementary, Satilla Elementary, West Green Elementary, Nicholls Elementary, Broxton Elementary, East Coffee Middle School, West Coffee Middle School, (iii) installation of air conditioning in the gymnasium and construction of new track and storage facilities at Coffee County High School and (iv) a new central office for the school system
The retirement of all previously incurred general obligation debt of the school system in a maximum amount of $2,700,575.00

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

$ 11,299,425.00 $ 11,299,425.00 $ 318,775.31 $ 7,260,070.00

2,700,575.00

2,700,575.00

340,187.50 1,042,267.50

PROJECT STATUS
Ongoing Ongoing

$ 14,000,000.00 $ 14,000,000.00 $ 658,962.81 $ 8,302,337.50

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Coffee County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may 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

COFFEE COUNTY BOARD OF EDUCATION GENERAL FUND - aUALITY BASIC EDUCATION PROGRAM (aBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

1,768,347.00 $ 732,167.00
4,034,113.00 2,429,688.00 2,414,858.00 4,382,296.00 3,392,819.00 1,032,305.00 3,186.123.00
422.780.00 669.954.00 317.935.00
28.737.00

1,714,925.59 $ 811,049.05
4,230,297.53 2.283,744.93 2,916,880.07 4,754,071.15 4,192,411.04
910.876.53
258.35 991.952.70 2.054,292.55 303.759.96
92.389.64 440.389.16 569,160.85 285.761.84
64.282.01

46,897.59 $ 13,541.91 186,211.07 22,728.44 121,809.38 121,164.79 182,071.96 255.780.63
1.175.28 12.083.35 32,909.85 6,775.12
312.53 12.383.85
8.069.99 5,770.14
226.00

1,761,823.18 824,590.96
4,416,508.60 2,306,473.37 3.038,689.45 4,875,235.94 4,374,483.00 1,166.657.16
1,433.63 1.004.036.05 2.087,202.40
310.535.08 92,702.17
452,773.01 577.230.84 291.531.98 64.508.01

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

24.812.122.00 $ 26,616.502.95 $ 1.029.911.88 $ 27.646,414.83

Media Center Program Staff and Professional Development

772,032.00 213,234.00

994.740.41 57,892.87

147,519.53 159,233.90

1,142.259.94 217.126.77

TOTAL aBE FORMULA FUNDS

$

25,797.388.00 $ 27,669,136.23 $ 1.336,665.31 $ 29.005.801.54

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

See notes to the general-purpose financial statements.

- 34-

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

SCHEDULE "5"

Indian Creek Elementary Satilla Elementary School Broxton-Mary Hayes Elementary Coffee County High School Eastside Elementary School Nicholls Elementary School West Coffee Middle School Ambrose Elementary School West Green Elementary School East Coffee Middle School Westside Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,855,416.00 $

2,974,109.59

2,027,020.00

2,160,336.56

1,159,836.00

1,189,117.65

5,498,562.00

6,956,649.12

1,990,355.00

2,209,067,43

1,097,960.00

1,206,743.10

3,278,841.00

3,532,204.02

1,110,634.00

1,152,894.52

1,176,814.00

1,214,711.26

2,071,655.00

2,381,397.59

2,227,094.00

2,669,183.99

317,935.00

$ 24,812,122.00 $ 27,646,414.83

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

{l'SSELL \V. HI:\T01'.
STATE AUDITOP, 1404" 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Slreet. SW.. Suite 214 Atlanta, Georgia 30334-X40()
February 28, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Coffee 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 Coffee County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated February 28,2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Coffee County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning and perfonning our audit, we considered Coffee County Board of Education's internal control over financial reporting in order to detennine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 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 our judgment, could adversely affect Coffee 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-634l-0l-0l.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the nonnal course of perfonning 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-634l-0l-0l to be a material weakness.
This report is intended solely for the infonnation and use ofthe management, members ofthe Coffee County Board of Education, 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.
espec/fully sUbm~~~~

RWH:gp 200lYB-4l

Ru sell W. Hinton State Auditor

~t'SSELL \V. H':-'T():-'
STATE AUDITOR
'404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 \Vashingtoll Street. SW" Suite '2 J4 Atlanta, Georgia 30334-S400
February 28, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Coffee County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofCoffee County Board ofEducation with the types ofcompliance requirements described in the Us. Office of Management and Budget (OMB) Circular A-I33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Coffee County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Coffee County Board of Education's management. Our responsibility is to express an opinion on Coffee County Board of Education's compliance based on our audit.
We conducted our audit of compliance 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 Coffee County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Coffee County Board of Education's compliance with those requirements.
200ISA-IO

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

RWH:gp 2001SA-IO

Ru ell W. Hinton State Auditor

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

COFFEE COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6341-99-02 FS-6341-00-0 1 FS-6341-00-02

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

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6341-00-02

The management of the Coffee County Board of Education chooses not to maintain a system-wide General Fixed Assets Account Group within the formal accounting records due to current staffing limitations, volume and cost.

SECTION IV FINDINGS AND QUESTIONED COSTS

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30,2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Coffee County Board of Education's financial statements was qualified for a scope limitation and 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 Coffee 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 ofthe Coffee County Board ofEducation 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 Coffee County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Coffee County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Coffee County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title 1- Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Coffee County Board of Education qualified as a low risk auditee based upon a waiver granted by the U. S. Department of Education.
- 1-

COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
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-634l-0 1-01 The Coffee County Board of Education did not establish a General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-