," ~ I ,~. ,-, " ~ .' " -, ~ ... ~ '. ., " ,' ," . ,, ' -" -~ .; , ", .-, ," " " , " '. -- , ..~ ',' " ," " ~. " ( " -,, 't ' _,', f~ ..' ", " " ,, '. " ,"' ," ,, ,\ " . , " .,' , > ,. , ,, ," ,,,-~:~ , ,' , ,'" .~ ...., ,~ ,\ ... ,',' " ,, , " .-, '. ' ,, ,, " ,, ', " ': ," " '.. . , , , , ','" " " '- ", ", ,, ,, " " , "<,'' "" t.- " 1 '. " , "" " -: .' - ... 1 ' 1 ., ~ I ':, r'.', " ~ .. " "COFFEE COUNTY BOARD OF EDUCATION, " " ," " . ., " ,, , , .r ", " , ., .' " " '. " " ,, ,. .' j .. "," DOUGLAS; GEORG,IAi .' ' .." '. ,\ ,, ," " , , " REPORT ON AUDIT" " , " OF THEBNANCIAL STATEMENTS, " " . ",. ,F.9~~TH~.-F,S.(;~~, Y7~,~ ~~D~,D,~~t:JE ~O.,"200~, :' " , ," ',. .~ " , '. ". ," ,, -" ::' ,, ' .. " ,' ,'. ., " ..,~ '." , h" .. . " :", ", 'R,u.,'s~ell W. " Hlflton' " , " J ,'State Auditor ,' ., ", ,, " ,,,-'", ,, ..' ." . .'" " " ." " ":. I -' . -," , ., " " " ", '. ,. " '. . ,. \, ", " ," " " <, " '" .' ,. ,., " ,- " " ,, " " ", '. <- , .' " " .. .' 1 " COFFEE COUNTY BOARD or I:DUCAT10'l - TABLE or CONTFN IS - SECTION I FINANCIAL INDEPI:NDENT AUDITOR'S COMBINED REPORT ON GENI:RAL-PURPOSE FINANCIAL STA I EMENTS AND SUPPLEMENTARY INFORMATlONSCHEDULE m EXPENDITURES OF FEDI:RAL AWARDS FXHIBITS GENERAL-PURPOSE FINANCIAL STA I LMENTS COMBINED STATEMENTS - OVERVIEW A COMBINED BALANCL- SHFET ALL FUND rYPES AND ACCOUN1 GROUP 2 B COMBINED STATEMENT OF REVENUI:S, EXPENDITURES AND CHANGES IN rUND BALANCES ALL GOVERNMENTAL rUND I YPES 4 C COMBINED STATEMENT or REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND AC I UAL (NON-GAAP BASIS) GENERAL AND SPECIAL REvrNUE FUNDS 6 D NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STA I EMEN1 S 7 ADDITIONAL ~INANCIAL INrORMA nON COMBINING Sl A1 FMENTS SPECIAL REVENUE FUND I: COMBINING BALANCE SHEE1 18 F COMBINING STA I EMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCF SHEET H COMBINING STATEMENT OF REVENUES, EXPENDITURLS AND CHANGES IN rUND BAI ANCES 24 DEBT SLRVICL rUJ\lD I COMBINING BALANCE SHEET 26 J COMBINING STATEMENT or REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 27 SCHI:DULES SCHI:DULE OF EXPENDITURI:S or I'EDERAL AWARDS 28 2 SCHEDULE OF STATE REVENUE 30 3 SCIIEDULE OF APPROVI:D LOCAL OPTION SALES TAX PROJECTS 31 COFfEE COUNTY BOARD OF EDUCATION - TABLE m CONTENl S- SECTION I fiNANCIAL ADDITIONAL FINANCIAL INWRMATION SCHLDUI ES ALLOTMENTS AND I XPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 32 5 BY SITE 33 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COM PI lANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPOR flNG BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERWRMED IN ACCORDANCE WITII GOVERNMENT AUDITING S I ANDARDS RLPORT ON COMPLIANCE WITH REQUIREMFNTS 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 QUESTIONE:.D COSTS SUMMARY SCHEDULE OF PRIOR YEAR HNDlNGS AND QUI:.S flONED COSTS SFCTION IV FINDINGS AND QUESTIONfO COS1 S SCIIEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL RU.,SEI I. W. HIN10N STA.TE AUDITOR (4;)41 ~ 2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washonglon Streel, S W ~ulte 214 Alldnw, Georgld 30334-!\400 June 5. 2003 Iionorahle Sonny Perdue, Governor Member~ of the General Assembly Member~ of the State Board of Lducatlon and Supenntendent and Members of the Coffee County Board of Education INDFPF1\ID~:-.JT AUDITOR'S CO~1BINED RfPORl ON Gr:J\ERAL-I'URPOSI-. rs FINANCIAL STATEMEN AND SUPPLEMEN I ARY INfORM'"nON - SCHEDULI:. Of EXPEl\;DITURES Of FEDERAL'" WARDS Ladles and Gentlemen We have audited the accompany109 gencral-purpose financIal statements of the Coffee County Board 01 \-:ducatlon. a., of and for the year ended Junc 30. 2002. a~ listcd 10 thc table of contents The~c general-purpose financial Matcments are the responsibility ofthe Coffee County Board of Education's management Our respon~lbillty I~ to expres, an opmlon on these general-purpo~e financial statements bascd on our audtt E...cept a~ dl~cussed 10 the 1'0110'" 109 paragraph. we conductcd our audit 10 accordance With audttmg standard., gcnerally accepted 10 thc United State~ of Amenca and the ~tandard~ applicable to financIal audIts contamed In Government AudItmg Standards, Is~ued by the Comptroller Geneml of the UnIled States Those standards require that we plan and perform the audtt to obtam rea~onable assurance about whether the financial statements are free of matenal mIsstatement An audIt Include~ exammmg. on a teM baSIS. eVIdence ~upportmg the amounts and disclosures 10 the financial statement~ An audit dI..O mcludes assessing the accounting pnnclples ~ and sIgmficant estimates made by management. as ",ell a~ e\aluatmg the ovemll finanCial ~tatement prc~ntatlon We believc that our audtt proVides a reasonable ba~ls for our opinIOn We did not observe the takmg of either the Federal donated commodities mventory or purcha.,ed foods mventory at June 30. 2002. nor could we satl.,fy ourselve, a~ to the accuracy of the amounts ~tated a~ mventonc~ through alternallvc procedures 2002ARL-13 A~ dcscnbed m the note~ 10 the general-purpose financIal statements, thc Board of Education's tinancl3l statements have been prepared usmg certam aeeountmg practIce, and p(llIcle~ which, In our OpinIOn, \ ary In some respects from generall} accepted accounting pnnclples These vananee, are described as follows The general-purpose financial statements of the Board of Education did not eontam a Generall'lxed Assets Account Group to account for property and cqUlpment owned by the Board of Education which should be mcluded to conform to generally accepted accounting principles School activIty account, maintamed at the indIVidual schools arc not Included m the general-purpose finanCial statemcnts To conform to generally accepted accounting pnnclples, these accounts should be mcluded m the general-purpose finanCial statements The Board 01 I:ducatIon did not recognLle as expenditures, m the year ended June 30. 2002, a portion of ,a1anes and the corresponding employer'~ cost of related benefits earned for contractual services completed prior to June 30, 2002 Abo funds n.:celved. ,ubsequent to June 30. 2002, from the Georgia Department of EducatIon for the State's share of these unrecorded >alanes and related benefits were not recorded as revenue m the year under review Conversely. the SImilar expendItures and related revenues for contractual servIces completed pnor to June 30, 2001, were Improperly recorded m the ycar ended June 30, 2002 To conform to gencrally accepted accounting pnnclples, revenues should be recorded when a\ allablc and measurable and e'l.pendItures should be recorded when Incurrcd, rather than when funds are recelvcd or disbursed The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determmed. but are believed to be material In our opmlon. except for the effects of such adjustments, If any, on the SpeCIal Revenue Fund, as might have been determmed to be necessary had we been able to satisfY ourselves as to the accuracy of the food scrvlce Inventones as discussed In the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to m the precedIng paragraph. the general-purpose finanCial statemenL<; referred to above present fairly. m all matenal re~pecL<;, thc finanCial pOSItIon of the Coffee County Board of EducatIon as ofJune 30. 2002. and the results of It, operatIons for the year then ended, In conformity "'lth accounting pnnelples generally accepted In the United States of Amenca In accordance With Government AuditIng Standards. we have also Issued our report datcd Junc 5. 2003. on our conSideration ofthe Coffee County Board of EducatIOn's Internal control over finanCIal reporting and our tests of ItS compliance With certain proVISions of laws. regulatIOns. contracts and grants That report IS an Integral part of an audIt performed In accordance With Government Auditing Standards and ,hould be read m conjunctIon WIth thiS report In consldenng the results of our audIt 2002ARL-13 Our audIt was performed lor the purpose 01 forming an opinion on thc general-purpose financial statements of the ColTee County Board of Education taken as a whole The accompanYing combining statemcnts (r,xhlblt~ E through J) and thc financial schedule~ lSchedules I through 5). which Include~ the Schcdulc of E'l.pcndIturcs of I-ederal A\\ards as requIred by U S Office of Management and Budget CIrcular A-I33. Audas of State,I, Local GO\'f!rnment~, and Non-Profit Orxam=atlOm. are presented for purposcs of addillonal analySIS and arc not a required part of the gcneral-purposc finanCIal statcment~ Such informatIOn has been subjected to thc audIting procedures apphed In the audit of the general-purpose financIal ~tatcmcnls and In our OpiniOn, except for the effect of adJustments, Ifany. on the SpeCial Revenue Fund, as might have been dctcrmmed to be neccssary had we been able to sall~fy ourselves as to the accuracy of the food service mventones as discussed m thc third paragraph, and except for the effects of the matters referred to m thc fourth paragraph. such informatIOn IS falrl) stated. mall matenal respecl~. m relallon to the general-purpose finanCial statcments taken a~ a whole A copy of this report has been filcd as a permanent record In the office of the Statc Auditor and made avatlable to the pre~s of the Statc. as proVided for by OffiCIal Code of Georgia Annotated Secllon 506-24 RWH gp 2002ARL-13 ~.~~ Rus II W Hmton Sta e AudItor COFFEE COUNTY HOARD OF EDUCATION COFFEE COUNTY BOARD OF EDUCATION COMBINED BAlANCE SHEET ALL FUNp TYPES AND ACCOUNT GROUP JUNE 30 2002 ASSETS Gash and Gash EqUIvalents Accounts Receivable Inventones Food Donated Commodities Purchased Food Amount Available In Debt SeMC8 Fund Amount to be Provided In Future Years For Payment of Bond Debt capital Lease Agreements GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PR~ECTS FUND FUND $ 4,61295227 $ 2,329,830 16 $ 6,650,90841 473,608 49 78,44930 3760 25 53,18990 29 639 95 Total Assets $ 5.086:560 76 $ 2,491 ,109 31 $ 6,654,668 66 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retatnages Payable Deferred Revenue Capital Lease Agreements General ObIlgabon Bonds Payable Tota\ liabilities FUND EqUITY Fund 8atances Reserved For Debt SaMee For Inventones Food Donated Commodlbes Purchased Food FO( SPLOST PfOIects EO( Stale Gapltal Outlay Projects Unreserved UndOSlgnaled Total Fund EqUity $ 194,906 22 591 011 44 1943940 $ 4,61567 173,64582 14,185 90 $ 609,972 73 $ 187,831 72 $ 53 189 90 29,63995 $ 6,397,12594 6971100 $ 5086 560 76 1 598,30673 000 $ 5,086,560 76 $ 1,681,136 58 $ 6,466,836 94 TotalLJab1ltbes and Fund Equity $ 5,086,560 76 $ 2,491 ,10931 $ 6,654,66866 The notes to the general-purpose financial statements are an Integral part of thiS statement -2- EXHIBIT "A" DEBT SERVICE FUND 366,798 51 4893 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2002 JUNE 30, 2001 $ 13,960 489 35 $ 13,828,39583 55586697 1226,76341 $ 366,84744 53,18990 29,63995 366,84744 59256 53 3794541 357,760 63 50315256 4369723 50315256 4369723 76223937 60,11619 $ 366,84744 $ 913,69723 $ 15,512,88340 $ 16,332,477 37 $ 194 906 22 $ 18342116 591,01144 532,79800 1943940 25,87295 17384582 577,396 75 14,18590 461567 864433 $ 4369723 43,69723 60 116 19 870,00000 870,000 00 1 120 000 00 $ 91369723 $ 1,91150168 $ 2,508,249 38 $ 366,84744 000 366,84744 $ 36684744 S 357,760 63 53 189 90 2963995 6,397 12594 6971100 59256 53 37,94541 7,634,43578 6,684 86749 5,734,82964 $ 13,601,38172 S 13 824,227 99 $ 366,84744 $ 91369723 $ 15,512 883 40 $ 16:332,477 37 3- COFFEE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002 REVENUES Slate Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current InstructIOn Support SeMees Pupil ServlCeS Improvement of Instructional Sel'V1ces Educabonal MedIa ServIces General Admlnlstrahon School Admlnlstrahon BUSIness AdmlnrstratlOn Maintenance and Operatton of Plant Student Transportallon ServiceS Central Support SeMees Other Support servICes Food ServiceS Operallon Capital Outlay Debt Service Pnnclpal Interest PaYIng Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) OperatlllQ Transfers In Operabng Transfers Out Total Other FinanCing Sources (Uses} Excess of Revenues and Other FlnanclrlQ Sources over (under) Expenditures and Other FinanCing Uses FUND BALANCE JULY 1 Food Inventory - Net Change 10 Paned Donated Commodlhes Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 35,372 681 58 $ 1 161 90 10,266,181 33 758,230 95 $ 46,398,25576 $ 2022,78359 5997,348 23 851,91344 8,872,04526 $ 31,629,67574 $ 2,231,27346 1,58953782 1,227,91391 44717721 2,554,86540 396,71295 3027,12595 1,954,094 64 20931303 122,88325 81000 3,998,801 28 635,56890 530,79955 125,66927 91787 1,07011 10,61229 3,539571 14 16,41896 4,13704 $ 45,391 ,939 36 $ $ 1,006,316 4Q $ 8,643,01041 29,034 85 $ $ -134,099 18 $ 134,09918 $ 48,78578 48,78578 $ 872,21722 $ n 820 63 4,214,343 54 1617,688 04 -6,066 63 ~,30546 FUND BALANCE JUNE 30 $ The notes to the general-purpose finanClsl statements are an Integral part of thIS statement - 4- 1.681,136 58 EXHIBIT "B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 S 3,76025 $ 124,354 22 $ 128,11447 $ $ 63,76985 7,377 40 37,395,46517 $ 5,998,510 13 10,333,711 43 1,741,87601 36,955,81531 5,157,72395 10,623,97302 1,922,668 28 71,14725 $ 55,469,56274 $ 54,660,18056 $ 1 107,80799 $ $ 1,107,80799 $ S -979.69352 $ $ 35,628477 02 $ 33045494 63 2866,84236 2 100,33737 1,22791391 572,84648 2,554,865 40 396,71295 3,028,043 82 1,955164 75 209,31303 133,49554 3540,381 14 1,107,80799 2,366,906 98 1,720,61608 1,179,47590 488,36203 2,625580 15 336,83062 2785,94050 1,886,74558 200,30341 275,134 86 3,404,850 86 3,782,34516 250,000 00 84,51980 75936 266,41896 88,656 84 75936 250,18314 110,580 36 75000 335,279 16 $ 55,678,036 92 $ 54,480,080 30 -264,13191 $ -208,47418 $ 180,100 26 $ $ -187,90532 $ -187,90532 $ 273.21872 $ 273.21872 $ 322,004 50 $ -322,004 50 000 $ 868,16586 -868,16586 000 $ -1 167,59884 $ 7,634 43578 9086 81 $ -208,474 18 S 180.100 26 357.76063 13,824,22799 13.629,094 81 -6.06663 -8.30546 941046 5.62246 $ 6,466,836 94 $ 366,84744 $ 13,601,38172 $ 13,824,22799 -5- COffEE COUNTY BOARD Of EPUCATION COMBINEP STATEMENT Of REVENUES EXpENDITURES AND CHANGES IN fUND BALANCES BUDGET ANp ACTUAL - (NON-GMP BASIS) GENERAL AND SPECIAl. REVENUE FUNDS YEAR ENDED JUNE 30 2002 EXHIBIT C GENERAL FUND BUDGET ACTUAL REVENUES State funds federal funds Taxes Other Funds Tolal Revenues EXPENDITURES $ 34 390,889 00 $ 35372681 58 10,000 00 1,16190 10265672 50 10266 181 33 500,000 00 758 230 85 $ 45,166,561 50 $ 46,398,25576 Current InstructIOn Support Services Pupil ServiceS lmprovemem of Ins\ruc'nonal SelVlCes EducatIOnal MedICI ServICes General AdmlnlstrallOn School Administration Buslness AanlnrstrahOn Maintenance and OperahOn of Plant Student TllInsporlallOn Services Central Support Serw:es Other Support SeMCeS food ServICeS Operallon Caprtal Outlay Debt service Total Expenditures E>:.ceS5 of Revenues Ovef (under) Expendl\Ufes ~FINANC!NGSOURCES (USES) Olher Sources Other Uses Total Olher Fmanclng Sources (Uses) S 32,89706710 S 31629 675 74 1 165980 37 '1425,04768 1253 142 10 4329183B 268836550 420600 71 342329524 1 98371095 273780 20 134 025 97 50,000 00 2,23127346 '1569,53782 1227,91391 44717121 2554 86540 398 712 95 302712595 1954 094 84 209 313 03 122 683 25 81000 20,556 00 $ 46 947,934 20 $ 45,391,939 36 $ -1181 3n 1Q S 1,006,316 40 S 400 000 00 S 503333 365,000 00 -139,13251 S 35,000 00 $ -134,099 18 Excess of Revenues anc:l Other FlIlanang Sources over (under) Expendt!:ures and Other frnancmg Uses ~EJlJlY1 2001 Adjustments Food Inventory - Net Change In PllfIOd. Donated GommodltteS Purchased Food $ -1 746 372 70 S 872 217 22 6033404 81 421434354 500000 FUND BALANCE JUNE 30 2002 S 4 1292.032 11 $ 5.086 560 76 SPECIAL REVENUE FUND BUDGET ACTUAL $ 186152452 $ 2022,78359 575301422 5997,34823 835,430 00 851,91344 $ 8,449,96874 S 8,872.04526 5 3716821 13 $ 3998801 2B 307353 59 87836300 83556890 530 799 55 13203960 12566927 100000 500000 6761658 3456 085 55 91787 107011 1061229 3539 571 14 S 8,562,279 45 $ 8,843,01041 5 -112,31071 $ 29,034 85 $ 4000000 S S 40,000 00 $ 53819 11 -5.03333 48,785 78 $ -72 310 71 $ 77 820 63 160768740 161768804 35 860 05 ~ 066 63 -8,30546 S 1.571.236 74 $ '1681.136 58 The notes to the general-purpose financial statements are an Integral part of thls statement -6- COFfEE COUNTY BOARD Of EDUCATION EXIIII3I1 "0" '10TES 101 HE GENERAL-PURPOSE FINANCIAL STATEMFNTS JUN I- 30. 2002 Not.: I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Cotlec County Board of EducatIon (School Dlstnct) was established undcr the laws ofthe State of Gcorgla and operatcs under the gUidance of a school board dectcd by the \otcr; and a Supenntendcnt appomted by th.: Board Thc School DI~tnct IS orgamzed as a ,cparatc legal entity and has the power to levy taxes and Is~ue bonds Its budget IS not ~ubJcct to approval by any othcr entity AccordIngly, thc School Dlstnct I, a pnmary government and consists of all the organizatIOns that compose It~ legal enllly FUND ACCOUNTING The School Dlstnct uses fund~ and an account group to report on It, financial posItion and the re,ults of It, opcratIon~ Fund accountIng IS deslgn.:d to dcmonstrate lcgal compliance and to aid finanCial management by ,cgrcgatIng tran~actlon, related to certaIn governmental functIOns or acllvlllcs A fund IS a separate accountmg entity With a ~elf-balancmg ~t of accounts An account group IS a finanCial reportmg devlcc dC,lgned to proVIde accountability for certam assets and lIabllltIcs that are not recordcd m the funds because they do not dIrectly affcct expendable avaIlable finanCial resources General hxed Assets are recordcd as expendltur.:s m the various funds at the tIme of purchase A General Fixed As!>Ct, Account Group IS not presently maIntaIned by the School Dlstnct To conform to generally accepted accountmg pnnclples, a General fixed Assets Account Group ,hould bc mamtaIned for reportIng the cost of a"ets acqUlr.:d by governmental fund type, Although "school actIvlty accounts" arc maIntaIned at the IndIVIdual schools, nelther the assets, liabilitIes and fund eqUIty. nor the r.:venues, expenditures and changes m fund balances of these accounts are reflected m these finanCIal statements To conform to gencrally accepted accountmg pnnclplcs, the~ accounts should he recorded In the general-purpose finanCIal statemcnts The general-purpose finanCial statements account for all State, Federal. Taxes and Other funds under control of the School Dlstnct, m compliance With generally accepted accountIng pnnclples applicable to governmental umts. unlcss otherwIse dl,closed m thc,e notes Funds and the account group pre,.:ntcd In thiS report are as follo\\s GOVERNMENTAL FUND TYPES - are used to account for all or mo~t of the School DI,trict's educatIOnal actiVities Governmental Fund Types mclude GENF:RAL FUND - the fund u~d to account for all finanCial re~ourccs of the School Dlstnct except those reqUIred to be accounted for m another fund The,e transactIOns relate to resources obtaIned and u~d for ,ervlces proVided by a board of educatIOn -7- COFfEE COlINTY BOARD OF fDUCA nON EXHIBIT "0" !';OTES TO THe GENERAL-PURPOSE FINANCIAL STA"I EMENTS JUNE 30, 2002 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the procceds of specIfic revcnue ~ources (other than for major capItal proJcctS) that arc legally restneted to expendlture~ for specIfied purposes These funds are receIved pnmanly from the Gcorgla Department of Education and from the Federal government to accomplish specific educational objectIves CAPITAL PROJECTS FUND - the fund used to account for financial rcsources to be used for the acqUIsitIOn or construction of major capItal facilities DEB r SERVICE FUND - the fund u~ed to account for the accumulatIOn ofresourees for, and the payment of, general long-term principal, Interest and paYing agent lee~ ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financIal reporting deVice used to account for gcneral obligation debt outstanding and capltalleasc obllgatlon~ BASIS OF ACCOUNTING The accounung and finanCial reporting treatment applied to a fund IS dctcrmmed by ItS measuremcnt focu~ All governmental funds are accounted l(lr usmg a current finanCIal resourees measurement focu~ WIth thIS measurement focus, only current assets and current lIabllltle~ gcnerally are mcluded on the balance sheet Operatmg statcments of these funds present mcrease~ (I e , revenues and other linancmg ~ourccs) and decreases (I e . expenditures and other financing uses) m net current assets Their reported lund balance IS considered a measure of avaIlable spendable resources Liabilities which are e"pected to be financed from available spendable resources are reported as liabilities m the governmental funds Other liabilities, which are not expected to be financed from a.. aIlable spendable re~urce~, art: reported m the General Long-Term Debt Account Group Governmental funds are accounted for usmg the modIfied accrual ba~l~ of accounting under which Revenues are recogm7ed when susceptible to accrual (I e , when they become both measurable and available) "Measurable" means the amount of the transaction can be determmed and "avaIlable" means collectible wlthm the current penod or soon enough thereafter to he used to pay liabilities of the current penod The School DI~tnct conSiders receivables collected Within sixty day~ after yearend to be avaIlable Property ta...es, sales taxes and mterest are conSIdered to be su~ceptlble to aCl-rual Nonexchange transactions, m whIch the School Dlstnct gIves (or receives) value Without dIrectly recelvmg (or giVing) equal value m exchange, mclude property taxes, local option sales taxes, mtergovernmental grants and donatIOns Revenue for property tall.es I~ recogmzed m the fi'lCal year for whIch the ta...es are leVIed Revenue from sales taxes IS recogmzed m the fi~al year the resources are receIved or susceptlblf to accrual Revenue from grants and donatIOns IS recob'l1lzed m the fi~cal year m which all eligibility requirements have been satlslied -8- COFFEE COUNTY BOARD OF EDUCA nON EXHIBIT "D" NOTCS TO THE GENERAL-PURPOSE FINANCIAL Sl ATEMENTS JUNE 30. 2002 Note I SUMMARY OF SIGNlrJCAN I ACCOUNTING POLICIES Expenditures are generally recogmzcd when the related fund lIablll1y IS mcurred A departure from the above defimtlOn~ I' the aeeountmg treatment afforded the final two payments on General Fund teacher;' and bus dnvers' contract~. and the resources available from the Georgia Department of Education for the State', ,hare of these contracts Dunng fiscal year 2002. a substanlIal number of personnel of the School Dlstnct werc employed lor a one hundred and nmcty day penod begmnmg m August 200 I and endmg m early June 2002 Personncl contracts for thiS cmployment penod specify that compensatIOn be paid m twelve equal monthly payments begmnmg m September 2001 and endmg m August 2002 State grants to lund the State's share of these contracts were dlsbur,ed from the Georgia Department of Edueallon to the School DlslTlct m the same twelve month~ As of June 30.2002. compensallon under the~ employment contracts had been earned, but two of the twelve monthly payment,. due for July and August 2002. had not been made Payments for these two months were made and recorded ~ expendl1ures by the School Dlstnct subsequent to June 30. 2002 Also. the State's portIOn of the compensation paid m July and August 2002 wa, received and recorded as revcnue m the fiscal year subsequent to June 30, 2002 Conversely. the ,Imllar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the ycar ended June 30, 2002 Generally accepted accountmg pnnelples require that revenues be recorded when aVailable and mcasurable and that ell.pendltures be recordcd when mcurred. rather than when fund, are received or disbursed BUDGET I he Coffee County Board of EducatIOn's budget IS a complete finanCial plan forthe School Dlstnct'~ fiscal year and " based upon estimates of e,pendlture~ together With probable fundmg sources ("here I~ no statutory prohlbtllOn regardmg overexpt:ndl1ure of the budget at any levcl The budget for all govcrnmental funds IS prepared by fund. funcllon and object The Icgal level of budget control was establIshed by the Board at the aggregate level The budget for governmental funds wa~ prcpared on a basiS other than generally accepted accountmg pnnclples The budget process begms when the School Dlstnct', admmlstratIon prepares a tentative budget for the Board', approval After approval of this tentative budget by the Board, such budget IS advertised at lea~t once m a newspaper of general Circulation m the localIty At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentative budget. makes revIsions as necessary and adopts a final school budget I hiS final budget IS then submitted. m accordance With pronslOns of the QualIty BaSIC Educallon Act. OCGA Section 20-2-167(c). to the Georgia Departmcnt of I'ducallon The Board may mcrease or dccrease the budget at any lime dunng the year All unexpended budget authonty lapses at fi~al year-end CASH AND CASH EQlJlVALENTS COMPOSITION OF DEPOSITS Cash and cash eqUivalents consist of cash on hand. demand depoSits and short-term m\'t:,tmenl~ with ongmal matunlIes of three mont~ or less from the date of aequ"ltlOn 10 authonzed finanCial -9- COfFEE COUNTY BOARD Of EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 3D. 2002 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES institutIOns Georgia Laws OCGA 45-8-14 authonze the School Dlstnct to deposit ItS funds In one or more Mllvent banks or Insured Federal savings and loan assocIations RECEIV ABLES Receivables consist of grant reimbursements due on Federal. State or other grants for expendItures made but not reimbursed and other receivables dlscloscd from InfOnnalIOn avaIlable Rccelvables arc recorded when either the asset or revenue recognItIOn cntena has been met ReceIvables recorded on the general-purposc financial statement~ do not Include any amounts whIch would necessitate thc need for an allowance for uncollectible receIvables PROPERTY TAXES The Coffee County Board of CommissIOners fixed the property tax levy for the 2001 tax dIgest year (calendar year) on October 2. 2001 (levy date) Taxes were due on December I. 2001 (hen date) 'I axes collected Within the current fiscal year or WIthIn 60 days after year-end on the 2001 tax dlge~t are reported as revenue in fiscal year 2002 The Coffee County Tax CommISSIoner bills and collects the property taxes for the School DI~triCt, \\lthholds 2,5% of taxes collected as a fee for tax collectIOn and remIts the balance of taxes collected to the School Dlstnct Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $10.218.934 84 and for school bonds amounted to $1.709 41 The tax millage rate leVIed for the 200 I 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 .LG...l5..5. mills SALES TAXES SpeCial Purpose Local Option Sales Ta" revenue dunng the year amounted to $65.820 69 and IS to be used for capital outlay tor educational purpose~ or debt servlCC ThiS sales tax was authonzcd by local referendum and the sales tax must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIFS Invcntorlcs of donated food commodities used In the preparatIOn of meab are reported on the Combined Balance Sheet at their Federally asslgncd valuc Purcha~ foods Inventoncs are reported on the Combined Balance Sheet at cost (first-In. fir~t-out) Donatcd food commodities are recorded a~ revenues and e"pendlture~ at the lIme commodity Items are receIved Purchased foods Inventones are recorded as expendlture~ at thc lImc ('fpurchase The Inventories reported on the balance ~hcet - 10- COFFEE COUNTY BOARD OF EDUCAnON EXHIBIT "D" NOTI:S TO 1 H~ GFNERAI -PURI'OSE FINANCIAL Sl ATEMENTS JUNI: 30, 2002 Notc I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES for donated food commodities and for purcha'ied foods are equally offset by rcservatlOns of fund balance whIch IndIcates that these amounts do not constitute "avaIlable spendable resources" evcn though they are a component of net current assets COMPENSATED ABSENCES Compensated ab,ences represent oblIgallons of the School Dlstnct relallng to employces' nghts to rccclvc compensallon for future absences based upon ~rvICC already rcndered I hIs oblIgatIOn relate, only to vesting accumulatIng leave In v.hlch payment IS probable and can be reasonably esllmated No lIabilIty ha.> bccn recordcd In the IndlVldual funds for the current portIOn of this oblIgatIOn a~ thl\ amount IS deemed Immatenal to the general-purposc financl3l statcments AddItionally, the dollar value of accumulated compensated ahsenccs at June 30, which will bc payable from futurc resources has not been recorded In the Gcneral Long-Tenn Debt Account Group as thIS lIabIlIty IS also deemed to be Immaterial to the faIr presentatIOn ofthese financl3l statemcnts GENERAL OBLIGATION BONDS 1 he School Dlstnct Issues gencral oblIgatIOn bonds to proVIde funds for thc acqUisItIOn and constructIon of maJor capItal facilities Bond premium, and dl~counts. as well as Issuance costs. are recogml:ed In the financial ~tatements durIng the year bond~ are Issued General oblIgation bonds are dIrect oblIgations and pledge the full faIth and credIt ofthe government The outstandmg amount ofthcsc bond, IS recorded In the General Long-Term Debt Account Group INTERFUND TRANSACTIONS The School Dlstnct has the followmg types of mterfund transactIOns Reimbursements ofexpenditures millally madc from a fund that arc properly applIcable to anothcr fund are recorded as expenditures In the reimburSIng fund and as reducllon~ of expenditures In the fund that IS rClmburscd Operating transfel"'i are rccorded for all Interfund tran~ctlOns other than relmbur~cmcnts MEMORANDUM ONLY - TOTAL COLUMNS Total columns on thc gcneral-purpose finanCIal statements are captIoned "Mcmorandum Only" to Indlcalt: that they are prcscnted only to faCIlItate finanCIal analySIS Data In the,c columns do not prcscnt finanCial pOSitIOn or re\ults of operations m conformity WIth generally accepted accountIng prmclples NClther arc such data comparablc to a consolIdallon Intcrtund elImInatIOns have not been madc In the aggregatIOn of thIS data - II - COFFEr COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GEl':ERAL-PURPOSE FINANCIAL STATFMENTS JUNF 30. 2002 Note 2' DEPOSITS COLLATERALIZATION OF DEPOSITS OffiCial Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on dcposlt at any lIme In any depo~ltory for a lIme longer than ten days a sum of money which ha.., not been secured by surety bond, by guarantec of Insurance. or by collateral I he aggregate of the face value of sueh surety bond and the market value of securltle~ pledged shall be equal to not less than 110 percent of the puhlIc funds being secured afterthe deductIOn ofthe amount ofdepo~ltInsurancc If a depoSitory elects the pooled method (OCGA 45-8- I 3 I) thc aggregate ofthe market value ofthe ~ecunlIcs pledged to secure a pool of public funds shall be not les~ than 110 percent ofthe dally pool balance OCGA Section 45-8-11 (b) provides an officer holding public funds may. In hIS dIscretIOn. waive the reqUirement for secunty In the case ofoperating funds placed In demand depoSit checking aecount~ A~ceptable secunty for deposits consists of anyone of or an} combinatIOn of the follo'Wing ( I) Surety bond signed by a ~urety company duly qualified and authonzed to transact bUSiness 'WIthin the State of Georgia, (2) In~uranee on accounts proVided by the Federal Deposit Insunmee CorporatIOn. (31 Bonds. bills. notes. certificates of Indebtedness or other dlfect obligations of the Umted States or of the State of Georgia. (4) Bonds. bIlls. notes, certificates of Indebtedness or other ohligations of the countle~ or mumcipalitles of the State of Georgia, (5) Bonds of any public authonty created by the laws of the State of Georgia. provldmg that the statute that created the authonty authonzed the use of the bonds for thiS purpose. (6) Industnal revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bilb. notes. certificates of Indebtedness. or other obligatIOns of a sub~ldIary corporallon of the Umted States government, which are fully guaranteed by the Umted States government both as to prinCIpal and Intere~t or debt obligations ISSUed by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Ban", the Central Bank for Cooperatives, the Farm Credit Ban"s. the ~ederal Home Loan Mortgage A~sociallon. and the Federal Nallonal Mortgage As~clatlon CATEGORIZATION OF DFPOSITS At June 30. 2002. the ban" balances were $17,578.906 47 The amounts of the total ban" balances are claSSified Into three eategones of credit nsk - 12- COFFEE COUNTY BOARD or EDUCATION EXHIBI r "0" NOn"S TO THI GENERAL-PlJRPOSF FINANCIAL STATEMEt-.TS JUNE 30, 2002 Note 2 DEPOSITS Category I - Cash that IS In~urcd (e g, Federal depOSitory Insurance) or collaterah.red with ~cuntles hcld by the School Dlstnct or by the School Dlstnct's agent In the School Dlstnct's name Category 2 - Cash collaterahzed with secuntles held by the pledging financial institution's tru~t department or agent In the School Dlstnct'~ name Category 3 - Uncollatemlized depOSits ([his Includes any bank balance that IS collaterahLed vmh ,ecuntles held by the pledging financial institutIOn, or by Its trust department or agent but not In the School District's name) The School DI~tnct's deposlt~ are classified by nsk category at June 30. 2002, as follows RI~h. CategoD' Bank Balance I $ 566,82292 2 5,823,773 08 3 11,188,31047 Total $lL571!.206.47 Notc 3 NON-MONETARY TRANSACTIONS The School Dlstnct receives food commodities from the Umted States Department of Agnculture (USDA) for school breah.fast and lunch program~ These commodltle~ are recorded at their Federally assigned value See Note I - Inventories Notc 4 RISK MANAGEMENT The School Dlstnet IS exposed to vanous nsks of loss rclated to torts, theft ot: damage to. and de~tructlon of assets, errors or oml~slOns, Job related Illness or mJunes to employee~, acts of God and unemployment compen~atlOn The School DI~tnet has obtamed commercial Insurance for nsh. of loss as~oclated with a%ets The School Dlstnct partiCipates m the Georgia School Board~ ASSOCIation R.1~k and Insurance Management System, a pubhe entity nsk pool orgamzed on July I, 1994. to develop and admmlster a plan to reduce nsk of loss on account of general habIlity and property damage. Includmg safcty cnglneenng and other lo~~ prevcntlOn and controltechmques. and to administer one or more group~ of ~elf-Insurancefunds. Includmg the processing and defense of chums brought agam~t membe~ of thc system The School Dlstnct pays an annual premium to the sy~tem for Its general Insumnce coveragc AdditIOnal coverage IS provldcd through agreement~ by the ~ystem With other companle~ according to their speCIalty for property, bollcr and machlncry (Including covcrage for flood and earthquah.e). and general habIllty (including coverage for se'l.ual harassment, mole~tatlon and abuse) Payment of exce~s In~urance for the ~y~tem varies by hne of coverage - 13 - COFFEE COUNTY BOARD OF EDUCATION EXHIBIT "D" NOfES TO THE GENERAL-PURPose FINANCIAL STATEMENTS JUNE 30, 2002 Note 4 RISK MANAGeMENT The School DI~tnct 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 of that fund's payroll to total payroll 10 ordcr to covcr esllmated claIms budgeted by management based on known clalm~ and pnor expenence fhe School Dlstnct accounts for clalm~ With expenditure and liability bemg reported wh.:n It IS probable that a loss has occurred, and the amount of that loss can be reasonably estimated Changes 10 the unemployment compen~tlon claims liabIlity durmg the last two fiscal years are as follow~ Beginning of Year I.labllltv ClaIms and Changes In Estlmale, Claims Paid End or Year L.lability 200\ 2002 $ 000 $ 000 $ 000 $- 000 $ 000 $ 2,23200 $ 2,232 00 $ 000 Ibe School District partlctpate> 10 the GeorgIa School Ooards ASSOCiatIOn Workers' Compensation Fund, a publIc entity nsk pool organl7ed on July I, 1992, to devclop, Implement, and admlmster a progmm of workers' compensation self-insurance for Its member organIzatIOns The School DI~tnct pay' an annual premIum to the Fund for ItS geneml Insumnce covemge Additional In~urance coverage IS proVided through an agreement by the Fund With the Umted Stale~ 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 IImll fhe School DIstrict has purchased surely bonds to proVIde additIOnal Insumncc covemge as follows PositIOn Covered Amount Supenntendent All Other Employees $ 100,000 00 $ 100,000 00 Note 5 GFNERAL LONG-TERM DEBT CArlTAL LEASES The Coffee County Board of EducatIOn ha~ entered Into "arIOU\ lease agreements a\ lessee for equipment These lease agreements qualIfy as eapltallea\Cs tor accounting purpo<;cS and, therefore, have been recorded at the pre<;ent value of the future minImum lease payments as 01 the date of their inception GENERAL OOLIGATION DEBT OUTSTANDING General Ol:-ligatlon Bonds currently outstanding are a~ follows - 14 - COffEE COUNTY BOARD OF EDUCAnON EXHIBIT "0" 1'IOTES TO I HE GFNERAL -PURPOSE IINANCIAL STA1 EMENTS JUNE 30, 2002 Note 5 GENERAL LONG-TERM DFHT Purpose Interest Ratc Amount General Governmcnt - Series 1980 85% $ 870,000,OQ The changes In Gcneral Long-Tenn Dcbt dunng the fiscal ycar cnded June 30, 2002, were as follows Caplla1 Lea~es General Obhgallon Bonds Total Balance July I, 2001 $ 60,116 19 $ 1.120.000 00 $ 1.180.116 19 Deducllons Debt Rel1I-cd 16,41896 250,000 00 266,41896 Balance June 30, 2002 $ 43,697.:U $ 810,000,00 $ 9! 3,697.2;1. At Junc 30, 2002, payments due by fiscal year which Include~ pnnclpal and interest for these Items are a~ follows Fiscal Year Ended June 30 Capllal Leases General Obhgallon Bonds Total Debt 2003 2004 2005 $ 20,55600 $ 332,47500 $ 353.031 00 20,55600 328,67500 349.231 00 6,851 98 323,17500 330,02698 Total Principal and Interest $ 47,963,98 $ 984,325,00 $ L03~288,98 Deduct Imputed Interest 4.26675 Net Prescnt Value of Future I'vlImmum Lease Payments $ 43.6.2Ill "lote 6 ON-BEHALF PAYMENTS rhe School DI~tnct ha~ recogm.led revenues and e:\pcndltures In the amount of $612.993 88 for health Insurance and rellrcment contnhutlOns paid on thc School Dlstnct's behalf by thc follOWing Stale AgenCies - J5 - COH FF COUNTY BOARD OF EDUCAliON EXHIBIT "D" NOTES TO THI:. GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 10. 2002 Note 6 ON-BEHALF PAYMeNTS Georgia Department of Education Paid to the Georgia Department of CommunIty Ilealth For Hcalth Insurance of Non-Certified Personnel In thc amount of $536.849 88 Officc ofTrea~ury and Fiscal Servlccs Paid to the Public School Employee~ Rctlrement System For Public School Employees Retirement (PSERS) Employer's Cost In thc amount of $76.144 00 Notc 7 SIGNlrICANT COMMITMENTS The follOWing IS an analysl~ of significant outstanding constructIon or renovation contract~ ext.'cuted by the School DistrIct ~ of June 30. 2002 Prolect Uncarned Executed Contracts East CofTee MIddle School/West Coffee Middle School RenovatIons EastSide Elemcntary School Addition Westside Elementary School AdditIon $ 125.44300 377,03578 528,04608 $ 1.030.524,86 The amounts deSCrIbed In thiS note are not reflected In the gcneral-purpose finanCial statements Note 8 CONTINGENT LIABILITIES Amounts received or recelvablc pnnclpally from thc Federal govcrnment are subject to audit and rcvlew by grantor agencies This could result In requcsts for rClmbursement to the grantor agency for an) expenditures which are disallowed under grant terms fhe School DIstnct believes that such disallowances. If any. WIll be ImmaterIal to It~ overall finanCial poSItIOn Note 9 ACCUMULATED EMPLOYEES' LEA VE Thc School Dlstnct'~ t'helve month profeSSIOnal per~onnel earn one and one-quarter days of sick and pcrsonalleavc cach month With a maximum accumulation of forty-five day~ Upon termmatIon of employment, all ~Ick and personal leave IS forfcItcd Upon retirement. twelve month employees Will be paid for unused accumulated jlersonalleave up to thc maximum accumulatIon allowed See Note I - Compensated Absences - 16 - COffEE COUNTY BOARD OF EDUCATION EXHIBIT "0" NOTES TO [HF GENERAL-PURPOSE FINANCIAL STATLMEN IS JUNF 30, 2002 Notc 10 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEOR.GIA (TRS) TRS PLAN DESCRIPTION Substantially all tcachers, admmlstratlve and c1cncal personnel employed by local school dmncts are eovcred by the Teacher~ Retirement System of Georgia (TRS). which IS a cost-shanng multiple employcr defined benefit pen~lOn plan TRS provldcs service rctlrement, dIsability retlremcnt and survlvor~ benefits for ItS membe~ m accordance wlth State ~tatUle The Teachers Retlrcment Sy~tem of Georgia issues a separate stand alone financial audit report and a COP) can be obtamed from the GcorgIa Department of Audits and Accounts TRS CONTRIBU110NS REQUIRED AND MADE Employees of the School District who are covercd by TRS are requIrcd by State statute to contnbute 5% of theIr gross earnmg~ to TRS The School Distnct makes monthl) employer contnbutlons to TRS at rates adopted by the TRS Board of Trustees m accordance with State Matute and as adVised by their mdependent actuary fhe rcqUlred cmployer contnbution rate IS 9.24% and employer eontnbutll>n~ for the current fiscal year and the precedmg two fi~cal years are as follows fIscal Ycar Percentage Contnbuted ReqUIred ContnbutlOn 2002 2001 2000 100% 100% 100% $ 2,855,684 93 $ 3,252,00 I 19 $ 3.007,39442 - 17 - COFFEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 ASSETS Cash and Cash Equ,valents Accounts Receivable Inventones Food Donated CommodrtJes Purchased Food Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salanes Payable EXPIred Grant Balances Payable Deferred Ravenue Total L,ab,hhes FUND EQUITY Fund Balances Reserved For Inventones Food Donated CommodrtJes Purchased Food Unreserved Undas,gnated Total Fund EqUity Total Liabilities and Fund EqUity SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 1,850,43991 $ 211,35581 3,99300 53,18990 29,63995 $ 1,933,269 76 $_~2~1~5..::,34~8~8~1:., $ 76,29739 $ 47,894 01 175,835 79 167,454 80 $ 252,13318 $ 215,34881 $ 53,18990 29,63995 1,598,306 73 $ 000 $ 1,681,136 58 $ 000 $ 1,933,269 76 $ ~=,;;2,;,;15::1,=34=8=.8_1~ See notes to the general-purpose financial statements - 18- EXHIBIT "E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 268,034 44 $ 000 $ 2,329,830 16 $ 2,052,365 20 74,45630 78,44930 218,85734 s 342,490 74 $ 53,18990 29,63995 59,256 53 37,94541 000 $ 2,491,10931 $ 2,368,424 48 $ 70,71482 247,72085 19,43940 4,61567 $ 342,490 74 $ 194,90622 $ 183,421 16 591,01144 532,798 00 19,43940 25,872 95 4,61567 8,644 33 $ 809,972 73 $ 750,73644 $ o00 $ $ 000 $ $ 342,49074 $ $ ----'0"-0"'0'-000 $ 53,18990 $ 29,63995 1,598,306 73 1,681,13658 $ 59,256 53 37,94541 1,520,486 10 1,617,688 04 000 $ 2,491,109 31 $ 2,368,42448 - 19 - COFFEE 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 Instruc1lonal Services Educational Med,a Services General Admlnlslrabon Schoot AdmInistration Maintenance and Operation of Plant Student Transportabon Services Other Support SeMCBs Food Services Operation Capnal Outlay 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 Penod Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general-purpose financIal statements - 20 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 228,244 00 $ 1,678,511 66 2,512,01592 846,91344 $ 3,587,173 36 $ 1,678,511 66 $ 1,513,18231 139,74735 24,511 89 $ 3,539,571 14 1,070 11 $ 3,539,571 14 $ 1,678,511 66 $ 47,60222 $ 000 $ 40,21841 $ 40,21841 $ 87,82063 $ 000 1,607,66804 000 -6,06663 -8,30546 $ EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ $ 3 485.332 31 5,000 00 $ 3,490,33231 $ 116,02793 $ 2.022,78359 $ 5.997.348 23 851 ,913 44 116,027 93 $_~8=.8=72=,0"45,2- 6 $ 1,998,994 19 5,153,970 68 839,67469 7992,63956 $ 2.369,775 79 $ 495,821 55 530.52435 101,15738 91787 10,61229 $ 3,508,809 23 $ $ -18,47692 $ 115.84318 $ 27520 116,11838 $ -90 45 $ 3,998.801 28 $ 635.568 90 530,799 55 125,66927 91787 1,070 11 10,61229 3,539,571 14 8,843,01041 $ 29,034 85 $ 3.534.337 80 445,951 14 354,87929 20.72702 26.57803 8.317 88 4,354 66 6,50061 65,585 39 3.399,71299 145,87500 8.012,81981 -20,180 25 $ 1351025 $ -5,03333 $ 8,47692 $ $ -10,00000 $ 10.000 00 9045 $ 9045 $ 53.81911 -5,03333 $ 48,78578 $ 85.93301 85.93301 000 $ 000 77.82063 $ 1.617,688 04 65,75276 1.536.902 36 -6.066 63 -6,30546 9,41046 5.62246 $ 000 $ 000 $ 1,681,13658 $ - 21 - COFFEE COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECiAl PURPOSE LOCAL OPTION SALES TAX $ 69,71100 $ 6,581,19741 3,760 25 $ 69,71100 $ 6,584,95766 LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable Retalnages Payable Total Liabilities FUND EQUITY Fund Balances Reserved For SPLOST Projects For State CapItal Outlay Projects Unreserved Undestgnated Total Fund Equity Total Liabilities and Fund EqUity $ 173,64582 14,18590 $ 187,831 72 $ 6,397,12594 $ 69,71100 000 000 $ 69,71100 $ 6,397,12594 $ 69,711 00 $ 6,584,957 66 See notes to the general-purpose financial statements - 22- EXHIBIT "G" LOTIERY PROJECT TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 000 $ 6,650,908 41 $ 7,766,07268 3,760 25 445,75985 $ 000 $ 8,211,832 53 $ 173,64582 $ 577,396 75 14,18590 $ 187,831 72 $ _----'5"'7-'-7"',3""96"-'-'75"-- $ 6,397 125 94 $ 7,634,43578 69,711 00 $ --"-0",00,,-- 000 000 $ 000 $ 6,468,836 94 $ 7,634,435 78 $ 000 $ 6,654,66866 $ 8,211,832 53 - 23- COFFEE COUNTY BOARp OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAl. PROJECTS FUND YEAR ENDED JUNE 30, 2002 REVENUES Slale Funds Taxes Other Funds Total Revenues EXPENDITURES Capital Outlay Land and Land Improvemenls BUilding and BUilding Improvements Equlpmenl Total Expendllures Excess of Revenues over (under) Expendrtures OTHER FINANCING SOURCES (USES) Operating Transfeffi In Operating Transfeffi Out Total Other FinanCing Sources (Uses) Excess of Revenues and Other FinanCing Sources over (under) Expendrtures and Other FinanCing Uses FUND BALANCE JULY 1 FUND BALANCE JUNE 30 GEORGIA STATE FINANCING AND INVESTMENT COMMISSION SPECIAL PURPOSE LOCAL OPTION SAl.ES TAX $ 000 $ 3,760 25 124,354 22 $ 000 $ 128,11447 $ 15,60240 $ 1.039,853 00 34,11410 $ 15.60240 $ 1,073.967 10 $ -15,60240 $ -945.85263 $ 85,31340 $ -291 ,45721 $ 85,31340 $ -291 ,45721 $ 69.711 00 $ -1,237,30984 000 7.634,43578 $ 69.71100 $ 6,397,12594 See notes to the general-purpose finanCIal statements - 24- EXHIBIT "H" LOTIERY PROJECT TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 000 $ 000 $ 2,535,46200 3,760 25 77,12290 124,354 22 315,54458 $ 000 $ 128,11447 $ 2,928,12948 $ 242,738 00 $ 18,23849 $ 1,073,693 89 3,360,163 02 34,11410 33,56914 $ 18,23849 $ 1,107,80799 $ 3,636,470 16 $ -18,238 49 $ -979,69352 $ -708,34068 $ 18,238 49 $ 103,551 89 $ 787,17659 -291,45721 -4,94374 S 18,23849 $ -187,90532 $ 782,23285 $ 000 $ -1,167,598 84 $ 73,89217 000 7,634,43578 7,560,54361 $ 000 $ 7,634,435 78 - 25- - -- - ------- COFFEE COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 2002 EXHIBIT "I" ASSETS Cash and Cash EqUivalents Accounts Receivable Tatal Assets FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undes,gnaled Total Fund Equity PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2002 JUNE JO, 2001 $ 366 798 51 $ 000 $ 366,798 51 $ 357,16897 4893 4893 59166 $ 366,84744 $ 000 $ 366,84744 $ ~....;;:3~57:.7:.::60=63::.. $ 366,84744 o00 $ $ 366,84744 $ $ "'0-"00"-- 366.84744 $ 000 357.760 63 000 000 $ 366,847 44 $_....:3~5~7.J_.60=63:;,. See notes to the generaJ..purpose financaal statements - 26- COFFEE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30 2002 EXHIBIT "J" PROPERTY TAXES FOR BOND DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30 2002 JUNE 30, 2001 REVENUES Taxes Other Funds Total Revenues EXPENDITURES $ 1,70941 $ 7377 40 $ 9,086 81 $ 62,060 44 $ 62,060 44 S 63,76985 $ 7,37740 71,14725 $ 341,99878 12,65385 354,65263 Debt Service PnnClpal Interest Pa'i1ng Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES S 000 $ 250 000 00 S 250,00000 $ 235,000 00 84,51980 84,51980 105,18750 75936 75936 75000 $ 000 $ 335,27916 $ 335,27916 $ 340,93750 S 9086 81 S -27321872 $ -264 131 91 S 1371513 Operating Transfers In 27321872 27321872 Excess of Revenues and Other Flnanang Sources over (under) Expenditures FUND BALANCE JULY 1 S 9086 81 $ 357760 63 000 $ 000 908681 $ 357,760 63 1371513 344,04550 FUND BALANCE JUNE 30 $ 366,84744 $ 000 $ 366,B-I7 44 S _ _3",5;:,7",760=6",3.. See notes to the general-purpose finanCial statements - 27 COFFEE COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" FUNDING AGENCY PRQGRAM/GRANT CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD Agocullure, U S Department of Chl\d NutntKln Clustef Pass-Through From Georgia Department of Education Food and Nutrilion Program Food ServICeS School Breakfast Program National School Lunch Program NaUonaI School Snack Program 10553 10555 10555 N/A $ 57524024 (2) NlA 171886635 $ 3,353 567 18 (3) NlA 19,08018 (2) Total Child Nutntlon Cluster $ 2313185 77 $ 3353,56718 OUler Programs Pass-Through From GeorQ18 Department of Educatlon Food and NutnlIon Program Food OtstnbutlOn Program (1) 10550 NlA Pass-Through From omce of SChool Readrness Food and Nutrruon Program ChJld and Adull Care Food Program 10558 NlA 186 003 98 1282519 186 003 98 (2) Tobi U S Department of Agnculture $ 2,512,01592 $ 3,539 571 14 CorporalJOn for National and Community ServICe Pass-Through From Okefenokee ReglOO8! Educaboll8l S..""c.. Af;je'n<:j Learn and Serve Amenca Sctlool and Commumty Based Programs 94004 NlA $ 50000 $ 50000 Education U S Department of Special EducalJOn Cluster Pass-Through From Georg1a Depanment of Educahon Inchvtduals IMth DlsabiUtles EducatIOn Ad. Part B - Speaal Education Capacity Budding Improvement Flow Thfoo9h Preschool 54 027 54 027 54 173 NlA $ 73,66200 $ NlA 71697348 NlA 6911069 7867427 13) 716,97348 6911069 Totsl SpecIal EducatIon Cluster S 859748 17 S 884 758 44 Other Programs Direct Impact AKI Pass-Through From Coastal PIalns RegIOnal Educational ServICe Agency d/bla Soolhem Ptne MI9rant EducatIOn Af;je'ncy Elementary and Secondary Education Act Title I Mtgrant Edue:atJon Pass-Through From Georgia DeparbTlent of EducalJon ComprehenSIVe School Reform Demonstrabon Protect Elementary and Secondary EducatIOn Act Tille I Grants to Local Educational AgencIeS TItle II Eisenhower ProfessIOnal Devek>pment Title III Technology LIteracy Challenge Fund Grants 54 041 84 011 54 332 54 010 54 281 54 318 1,16190 (4) NlA 96 210 22 96,21022 NlA 10500000 106 277 16 (3) NlA 1,688,927 64 1 688,92764 NlA 51 24733 51 24733 NlA 125,000 00 125,27688 (3) - 28- COFFEE CCUNTY BOARO OF EOUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARPS YEAR ENDED JUNE 30 2002 SCHEDULE "1 FUNDING AGENCY PROGRAM/GRANT EducallQ(l U S Department of Other Programs PassThrough From Georgaa Department of Education Elementary and Secondary Education Act Tlue VI Class Size Reduction IMOvatlVe EducatIOn Program Strategies Safe and Drug-Free Schools and Communities Vocahonal EducatJon - BaSIC Grants to States HIgh SchOOl Program BasIC Grant Tech Prep Educabon Total U S Department of EducatJon Health and HLman servIces U S Department of Pass-Through From Children and Youth Coordlnaung CounCil of Georgia Abstinence Educabon Block Grant CFDA NUMBER PASSTHROUGH ENTITY 10 NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84 340 84 298 84 186 84 048 84 243 N/A $ 27081500 S NtA 54 384 00 NtA 31 926 00 276,6923' (3) 54 686 57 (3) 32294 18 (3) NtA 10' 69700 NtA 80 401 00 '0209288 (3) 80,401 00 S 3,464 516 26 S 3476,864 6' 93235 NtA $ 21,477 95 $ 31 444 62 (3) Total Federal Flnanoal AsSistance $ 5 998 51 0 13 $ _...:.7""048"""o::380::::.3",7~ NlA ;: Not Available Notes to the SChedule of Exoenchtures of Federal Awards (1 ) The amounts shOwn for the Food Dlstnbubon Program represents lhe Federally assigned value at 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 lhe NatlOnal School Snack Program and the School Breakfast Program were not maintained separately and are rncluded In ltIe 2002 Nauonal School Lunch Program 3) ExpencMures for thtS program Include State, and/or Other Funds Expenchtures are not maintained by fund source 4) Expenditures on thiS program were not mall1l,alJ18d by fund source Major Programs are tdenlJfied by an astensk (..) In front of the CFOA number The School Dlstnct did not provide Federal Asslstance to any SubreClptent The accompanying schedule of expem:htures 01 Federal awards Includes the Federal grant acbvlly of ltIe Coffee County Board of EducatIOn and IS presented on the mochfl8d acaual basis oi accounlJng whICh IS the baSIS of accountlllQ used In the presentallon of the general-purpose finanCial statements See notes to the general-PlJl1Xlse financIal statements - 29- COFFEE COUNTY BOARD OF EDUCATION SCHEDULE Of STATE REVENUE YEAR ENDED JUNE 30 2002 SCHEDULE? AGENCYIFUNQl!iQ GRANTS Commundy Affairs GeorgL8 Department 01 local ASSIstance Grant Education, Georgia Department of Quality BaSlC Education 0wec1 InstructJonal Cost Kindergarten Program Kindergarten Program - Earty Intervention Program Pnmary Grades (1 3) Program Pnmary Grades - Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early interventIOn (4-5) Program Middle School (6-8) Program HlQh School General Educanon (9-12) Program Vocahonal Laboratory (9 12) Program Students 'NIlh Dlsablhlles Category I c..tegory II Category III Category IV CategoELL W. HINTON STATE AUDITOR 14(4)656-2\14 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street. S W SUite 214 Atlanta. Georgia 30334-8400 June 5. 2003 Ilonorable Sonny Perdue. Governor Memhers of the General A,~embly Members of the State Board of I::ducatlon and Supermtendent and Member, of the Coffee County Board of Education REPORl ON COMPLIANCE WITH REQUIRfMENTS APPLICABLE 10 EACH MAJOR PROGRAM AND Ol\lINTERNAL CONTROl OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCUI AR A-133 Ladle, and Gentlemen Compliance We have audited the compliance of Coffee County Board of EducatIOn With the types ofcompliance requlrement~ desenbed 10 the lJ S Office of Afana[{ement and Bud[{et (OA4B) Circular .1-/33 Comphance Supplement that are applicahle to each of Its major Federal program~ for the year ended June 30. 2002 Coffee County Board of Education's major Federal programs are Identified 10 the Summary of Auditor's Results SectIOn of the aeeompanymg Schedule of Fmdmg, and Questioned Co,ts Compliance With the requm:ment, of laws. regulation,. contracts and grant, applIeahle to I, each of ItS major Federal program, IS the responsibilIty of Coffee County Board of Educauon'~ management Our respon~lbillty to express an opmlOn on Collee County Board of Educauon's compliance ha,ed on our audit We conducted our audit of compliance 10 accordance With audltmg ~tandard~ generally accepled 10 the L mted State, of Amenea. the standard, applIcahle to financlaJ audit, contained 10 Government Audltmg Standard~. tued by the Comptroller General of the [JOlted States. and OMB Circular A133. Audas oj Stale~. Local Governmentl. and Non-Profit OrganizatIOns Those standards and 0\113 Circular A-ID reqUire that we plan and perform the audit to obtam reasonable a~suranee ahout whether noncompliance With the types ofcompliance reqUirement, referred to above that could have a direct and matenal effect on a major Federal program occurred An audit mcludes exammmg. on a te~t baSIS. endenee about the Coffee County Board of Edueauon'~ compliance with those requirements and performmg such other procedures a, we conSidered nece,sary m the ctrcumstances We belIeve that our audit proVides a reasonable baSIS for rur 0plmon Our audit docs not proVide a legal delermmatlOn on Coffce County Board of EducatIOn's compliance with thl)~ requirement, 2002SA-10 In our OpinIOn, thc Coffee County Board of Education complicd. In all matenal respects. with the requirements referred to above that are applIcable to cach of Its major Federal program~ for the year ended June 30, 2002 Internal Control Over ComplIance Thc management of Coffee County Board of EducatIOn IS rcspon~lble for e~tablIshlng and maintaining cffcctlvc mternal control over complIance wIth reqUIrements of law~. regulatIOns. contracl~ and grants applicable to Fcderal progr-dIllS In planning and performmg our audit. wc considered Coffee County Board of Fducatlon's Internal control over complIancc With requirements that could ha\ e a direct and matenal effect on a major Fcderal program m order to determme our audlllng procedures for the purpose of expressing our opmlOn on complIancc and to test and report on Intcrnal control over compliancc In accordance With OMB Circular A-133 Our consldcratlOn of the Internal control over complIancc would not neces~an ly dISclose all matters m the Internal control that might be matenal wealncsses A matcnal wealness IS a condItion In whIch the de~lgn or operatIOn of one or more of the mternal control components does not reduce to a relatively low level of risk that noncomplIance With applIcable rcqUlrements of law~, regulatIOns, contracts and grants that would be matenal In rclatlon to a major Federal program being audItcd may occur and not bc detected wlthm a timely penod by employees In the normal coursc of performmg their asSigned functIOns We noted no matters involVing the mternal control over compltance and Its opcratlon that we conSider to be matenal weakncsses Thl~ report IS Intended solcly for the mformatlOn and use of the management, members ofthe Coffee Count} Board of EducatIOn. Fedcral awardmg agenclcs and pas~-throughentities and IS not Intended to be and should not be used by anyone othcr than the'>C spcclfied partlcs .-_e;;;:spectfully submItted, W~~ Rus II W HInton State Auditor RWHgp 2002SA-1O SloCTION III AUDITEE'S RESPONse ro PRIOR YEAR FINDINGS AND QUES nONLD COSTS COFFEE COUNTY BOARD OF EDUCAnON AliDl1 EE'S RESPONSE SUMMARY SCI IEDULE OF PRIOR YEAR FINDINGS AND OUESTIONED COS rs YEAR ENDED JUNE 30, 2002 PRIOR YEAR HNANCIAL S I A Il:MEN r FrNDINGS AND OUESTIONED COSTS FINDING CONTROL NUMBER AND STATUS FS-6341-00-02 FS-634 1-0 1-0 I I'urther AclIon Not Warrantcd Unre~olved - Sec Corrective AClIon/Responses CORRECTIVE ACTIONIRESPONSES GENERAL FIXED ASSETS Failure to Maintain Geneml I'lxed Asset~ Account Group Fmdmg Control Number FS-6341-01-01 The management of the Coffec County Board of EducatIOn chooses not to mamtaln a systcm-wide General Fr\ed As~et~ Account Group Within the formal accounting record~ due to current staffing hmltalIon~, volume and cost SECTION IV FINDINGS AND QUESTIONCD COSTS COFfEE COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND OUESTIONCD COSTS YEAR ENDeD JUNE 30, 2002 SUMMARY OF AUDITOR'S RESULl S Ivpe of Rcport Issucd on the FInancial Statements Thc auditor's opinIon on thc Coffee County Board of Cducatlon's financial statemcnts was qualified for a scope limitation and for vanous departures from gcnerally accepted accountIng pnnclples 2 Reportable Conditions In Internal Control DIM:loscd bv 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 followmg control category General Fi:\ed Assets The reportable condItIon descnbed above IS considered 10 be a matenal weakness 3 Noncompliance Matenal to the FInancial Statements The audit of the Coffee County Board of Education disclosed no Instanccs ofnoncompliance that were deemed to be matenal 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 fvpe of Report Issued on Compliance for Major Program~ The auditor's opInIOn on the Coffee County Board ofCducatlon's report on compliance \\1th reqUirements applicable to major programs was unqualified 6 Audit FIndIngs ReqUired to be Reported bv SectiOn 510(a) ofOMB Circular A-I33 The Coffee County Board of Education's audit did not disclose audit findIngs reqUired to be reported by sectIOn 51 O(a) of OMB Circular A-133 7 Major Programs Federal awards audited as major programs are as follow~ 10553 Food and Nutrition Program - food Services - School Breakfast Program 10.555 Food and Nutntlon Program - Food Services - National School Lunch Program 10 555 Food and Nutntlon Program - Food ServIces - National School Snack Program 8 I ype "A" Program Dollar Thre~hold The dollar threshold for type "A" programs was $300,000 00 9 Low Risk Audltee The Coffee County Board of Education qualified as a low nsk audltec a~ de tined by SectIOn 530 ofOMB CIrcular A-133 -I- COFFEE COUNTY BOARD OF EDUC ATlON SCHEDULE or FINDINGS AND QUESTIQNED CQSTS YEAR eNDED JUNE 30, 2002 II FINANCIAL S rATEMENT FINDINGS AND QUESTIONED COS1 S GENERAL FIXED ASSETS Failure to Mamtam General FIxed Assets Account Group Reportable Condition - Matenal Weakness Repeated From Pnor Year Fmdmg Control Number rS-6341-02-01 The Coffee County Board of Education did not mamtam a system-wide General Fixed As~ets Account Group wlthm the formal aceountmg records as required by generally accepted accountmg prmclples TIlls conditIOn results m the general-purpo,e finanCial statements of the School Dlstnct bemg mcomplete and not m accordance With generally accepted accountmg prmclples Appropnate actIOn should be taken by the School Dlstnct to establi,h accountmg controls and procedure, to prOVide for mamtenance of a General ~ Ixed Assets Account Group These SUh~ldlary records ,hould mclude an mventory of land. hUlldmg, and eqUipment owned by the School Dlstnct and ,hould mclude, hut may not be limited to, date acqUired, acqUisition cost, estimated replacement cost, location and descnptlon Detailed records should be mamtamed for all additIOns and deletions to the General Fixed A,sets Account Group III FEDERAL AWARD FINDINGS AND QUESTIONED CQS1 S No matters were reported -2-