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

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COLOUITT 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

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

COMBINED STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGSIFUND BALANCES

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS 8

E

COMBINED STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

10

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

13

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

28

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

32

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

34

COLOUITI COUNTY BOARD OF EOUCAnON -TABLEOFCONTENTS-

SECTION I

FINANCIAL

ADOmONAL FINANCIAL INFORMAnON

EXHIBITS

COMBINING STATEMENTS

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

36

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

38

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

40

2 SCHEDULE OF STATE REVENUE

42

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

45

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

46

5

BY SITE

47

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

COLOUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSEll. '\'. HINTON
STATE AUQITOR (4()4) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washmgton Street, S w., SUite 214
Atlanta, Georgia 30334-8400
May 15, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Colquitt 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 of the Colquitt County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our oplmon.
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:

200lARL-14

* 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 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 of the Colquitt County Board of Education as of June 30, 2001, and the results of its operations and the cash flows of its Internal Service and nonexpendable trust funds for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 to the general-purpose financial statements, during fiscal year 2001, the Board of Education changed its method of accounting to include revenues and expenditures associated with Federal donated commodities in its general-purpose financial statements. This change is in accordance with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated May 15, 2002, on our consideration of the Colquitt 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 should be read in conjunction with this report in considering the results of our audit.
2001ARL-14

Our audit was perfonned for the purpose of fonning an opinion on the general-purpose financial statements of the Colquitt County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the fmancial 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 infonnation has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infonnation 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 pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
w~
Ru ell W. Hinton State Auditor
RWH:as 2001ARL-14

COLQUIlT COUNTY BOARD OF EDUCATION

EXHIBIT "A"

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPES TRUST FUNDS

$

244,356.28 $

12,217 53

932,62641

177,664 04

75137

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

S 5,558,81894 $ 7,807,18083

11,559,768 44

11,080,00767

2,539,588 71

3,325,357 61

20,46728 13.79049

27,97319 11,580.10

$

7,299.74736

7,299,74736

5,433,01224

5,400,252 64 417,97890

5,400,25264 417,97890

9,316,98776 478,77660

$ 1,176,982 69 $

190,63294 $

13,117,97890 S 32,810,41276 $ 37,480,858 00

S

18.354 10

$

18,354 10

$

142,48791 $

147,337 18

646.76212

649,06029

7,124 18

90,59375

18,354 10

34,472.59

238,26024

820,651 80

59,53279

575,01796

3617

$

417,97890

417,97890

478,77660

12,700,00000

12,700,00000

14,750,00000

$

13,117,07890 $ 14,230,536 39 S 17,545,91015

$ 1.158.62859

$

75,00000

000 $ 1,158,626 59 $

115,63294 190.63294

$ 1,158,628 59 $

905,50163

93,62336
7.299,74736 75,00000

226,36536 6,91308 16,00000
5,433,012 24 75,00000 77,738 82

20,467.28 13,79049 4,647.94801

27.97319 11,56010 9,214,509 50 83,30500

73,70593 5,198,96535

75,39319 3,781,673 74

$ 18,579,876 37 $ 19,934,94585

$ 1,176,982 69 $

190,63294 $

13,117.978 90 S 32.810,41276 S 37.480,856 00

3

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 39,447,599.39

6,060,052.28

$ 4,221,4n.35

13,897,471.16

231,072 n

2,553,570.99 $

$ 4,452,550.12 $ 61,958,693.82 $

$ 5,47946

39,447,599.39 $ 6,060,052.28 13,897,471.16 2,559,050 45

36,301,915.03 5,844,579.75
13,855,79514 2,750,801.51

5,47946 $ 61,964,173.28 $ 58,753,091.43

$ 36,020,888.47

1,991,979.51 1,004,485.12 1,185,165.94
845,089.93 $ 2,932,356.41
562,299.02 4,625,191.23 2,112,155.34
173,903.57 135,76771 3,604,530.39
15,867.20 60,550.33 5,366,325.29

$ 2,050,000.00 535,275.00 540.00

2,148,1n.70 563,164.55 54000

$ 2,585,815.00 $ 63,348,437.71 $

$ 1,866,73512 $ -1,389,74389 $

$ 36,020,88847 $ 32,975,754.31

4,642.87

1,991,979.51 1,004,485.12 1,185,165.94
849,732.80 2,932,356.41
562,299.02 4,625,191.23 2,112,155.34
173,903.57 135,767.71 3,604,530.39
15,867.20 60,550.33 5,366,325.29

2,548,79744 1,260,858.89 1,126,604 41
725,89524 2,904,997.83
880,392.60 4,367,911.48 1,955,385.41
159,90907 104,396.15 3,384,917.63
16,83587 45,887.93 6,691,220.69

2,148,1n.70 563,164.55 54000

84,95644 701,376.66
1000

4,642.81 $ 63,353,080 58 $ 59,936,108.05

836.59 $ -1 ,388,907.30 $ -1 ,183,016.62

$

37,380.00

686,052.53

-939,179.49

$

-215,746.96

$ 1,866,735.12 $ -1,605,490.85 $

5,433,012.24

18,841,381.21

-7,505.91 2,230 39

$

37,380.00 $

36,300.00

686,052.53

617,597.90

-939,179.49

-617,597.90

$

-215,746 96 $

36,300.00

836.59 $ -1,604,654.26 $ -1,146,716.62

n,139.21

18,918,52042

20,062,433 22

-7,505.91 2,230.39

-1,491 13 4,294.95

$ 7,299?4738 $ 17,230,61484 $

n,97580 $ 17,308,590 64 $ 18,918.52042

-5-

COLQUITT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - INON-GMP 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

S 36,078,990 07 S 37,200,324 78

9,156,967.00 486,32821

9,675,99381 838,77801

Total Revenues

S 45,722.285 28 S 47,715,096 60

EXpENplTURES

CUlTent Instrudlon Support Services Pupil SelVlces Improvement of Instrudlonal SeIVlC8S Educa!lonal Media SelVlces General Administration School Admlnlstrabon Busmess Administration Ma,ntenance and Operabon of Plant Student Transportation SelVlceS Central Support SelVlceS other Support SelVlC8s Food SelVlces Operation Enterpnse Operabons Community ServiceS Operaltons
Caprtal Outlay Debt SeIVlC8

S 31,453,434 65 S 31,396,97908

1,637,221 20 923,61404
1,182,01389 356,62917
2,924,435.91 890,18208
4,611,304 78 1,948,385 22
169,97582 90,49917 62,09779

1,559,896 05 892,057.65
1,185,16594 494,92765
2,932,356 41 562,29902
4,564,154 62 2,110,721.80
173,90357 96,44098 71,554 33 15,86720

101,61754

76,643.89 103,721 36

Total Expenditures

S 46,351,411 26 S 46,236,689 55

Excess of Revenues over (under) Expenditures

S -629,12598 S 1,478,407 05

OTHER FINANCING SOURCES IUSES)

Other Sources Other Uses

S 302,18500 S

29,196 14

-649.84589

-939,17949

Total other Fmsncmg Sources (Uses)

S -347,66089 S 909,98335

Excess of Revenues and Other Fmanang Sources over (under) Expendlturas and other FinanCIng Uses

S -976,786 87 S

568,42370

FUNP BAlANCE JULY 1 2000

3,431,491 10

3,488,821 67

Food Inventory - Net Change In Penod Donated CommodrtJes Purchased Food

FUNP BALANCE JUNE 30 2001

S 2,454.704 23 S 4,057,24537

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

S 1,999,866 00 S 2,052,591 21

5,623,77490

6,060,052 28

899,80000

1,037.99212

S 8,523,440 90 S 9,150,63561

S 4,216,33300 S 4,623,909 39

426.71400 125,65700

432,08346 112,42747

339,78900

350,16228

54,53200 30,00000

61,036 61 1,43354

42,10200 3,302,130 90

39,32673 3,532,976 06

56,717 00

60,55033

22,34589

S 8,593,97490 S 9,236,251 76

S -70,534 00 S -85,61615

S 87,74500 S 132,13539

S 87,74500 S 132,13539

S 17,211 00 S 46,51924

241,908.39

114,59390

-7,50591 2,23039

S 259,"939 S 155,83762

The notes to the general-purpose finanCIal statements era an Integral part of thiS statement -7-

COLQUln COUNlY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS/FUND BALANCES
PROPRIETARY FUND lYPE - INTERNAL SERVICE FUND FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30. 2001

OPERATING REVENUES
Charges for Services
OPERATING EXPENSES
Current Support Services Administration Scholarships Workers' CompensatIon Claims
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Bank Service Charges Interest Earned
Total Nonoperating Revenues! (Expenses)
Net Income (Loss) Before Operating Transfer
OPERATING TRANSFERS IN
Transfers From Other Funds
Net Income (Loss) for the Year
RETAINED EARNINGS/ FUND BALANCE JULY 1

PROPRIETARY FUNDlYPE INTERNAL SERVICE FUND

FIDUCIARY FUND

NONEXPENDABLE TRUST

CLASS OF 1988

MCKEE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

$

86,586.64 $

0.00 $

000

$

106,18193

$

38,518.83

$

144,700 76 $

$

58,114 12 $

355.71 $
355.71 $ -35571 $

2,549.40
2,54940 -2,54940

$

58,11412 $

$

58,11412 $

$

0.00 $

37280 $ 37280 $
17.09 $

3,044 52 3,044.52
49512

253,12696

$

253,126.96 $

905,50163

17 09 $ 6,39217

495.12 51,84714

RETAINED EARNINGS/ FUND BALANCE JUNE 30

$ 1,158,62859 $

6,409 26 $ _ _..;;5;,;;;20;;.,3.4.2-.=;2.6..

The notes to the general-purpose financial statements are an integral part of this statement
-8-

EXHIBIT"D"

lYPE
FUNDS ODOM
SCHOLARSHIP FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $

86,58664 $

.......::;0.:::;00:::.,.

$

106,181.93 $

108,126.62

$

1,88551

4,790.62

6,054 00

38,51883

129,715.43

$

1,88551 $

149,49138 $

243,896.05

$

-1,88551 $

-62,904.74 $

-243,896 05

$

-12.03

$

3,106.64 $ _ _..:.64.:..;,6::.::3:.:;8':.:;08:::.,.

56,531.21

$

3,10664 $

64,638.08 $ _ _....::5;..::;6"",5,-,-19:....:.:18:;...

$

1,221.13 $

1,733.34 $

-187,37687

253,12696

$

1,221.13 $

254,860.30 $

-187,376.87

52,684 49

1,016,42543

1,203,802 30

$

1,271,285 73 $

-9-

COLOUln COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2001

Cash Flows from Operating AdlvilJes, Cash Received from Contnbutions to Self-Insurance Employee Benefits cash Paid tor Administrative Costs Cash Paid for Scholarships Cash Paid for Worker's Compensation Claims
Net Cash Provided (Used) by OperalJng ActiVitieS
Cash Flows from Noncapltal Financing Actlvilles' Operallng Transfers-In from Other Funds
Net cash Provided (Used) by Noncapilal Flnancmg Adivilles
Cash Flows from Invesllng Activitles' Interest Received on Investments Purchase/Sale ot Investments (Net) Cash Paid for Bank service Charges
Net Cash Provided by Investment ActiVities
Net Increase (Decrease) In Cash
Cash and Cash EqUivalents - July 1

PROPRIETARY FUND TYPE INTERNAL SERVICE FUND

FIDUCIARY FUND

NONEXPENDABLETRUST

CLASS OF 1988

MCKEE

SCHOLARSHIP

SCHOLARSHIP

FUND

FUND

$

86.586,64

-106.181.93

$

-54.63732

$

-74.23261 $

-355,71 $

-2.54940

-35571 $

-2.54940

$

253,126,96 $

$

253.12696 $

$

58,11412 $

5.55895

0,00 $ 000 $ 383,88 $

0,00 0.00 3,135.03

$

63,673.07 $

$

242,567.42 $

$

1,788.86 $

38388 $ 2817 $
35571 $

3,13503 58563
2.54940

cash and Cash Equivalents - JUr18 30

$

244.356.28 $

383.88 $

3.135.03

Reconcihallon of Operating Income to Net Cash Provided (Used) by Operating AetJVltles' Operating Income (Loss) Increase (Decrease) in Claims Payable
Net cash ProVided (Used) by Operating Activities

$

-58.11412 $

-16.11849

$

-74.23261 $

-355.71 $

-2,54940

-35571 $

-2 154940

The notes to the general-purpose financial statements are an Integral part of this statement. - 10-

EXHIBIT"E"

TYPE FUNDS
OooM SCHOLARSHIP
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 3D, 2001

JUNE 30, 2000

$

86,586.64

-106,181.93 $

-108,126.62

$

-1,885.51

-4,790.62

-6,054 00

-54,637.32

-130,014.36

$

-1,88551 $

-79,023.23 $

-244,194 98

$

0.00 '$

253,126.96 $

000

$

000 $

253,126.96 $

0.00

$

3,199.00 $

64,832.03 $

56,361.19

5,558.95

-122,94707

-12.03

$

3,199.00 $

70,390.98 $

-66,597.91

$

1,31349 $

244,494 71 $

-310,792.89

$

2,380.67 $

7,074.64 $

317,867.53

$

251,569.35 $ _ _.....:7.,.0;;,;,7,;;,4~64_

$

-1,885.51 $

-62,904.74 $

-243,896.05

-16,11849

-298.93

$

-79,023.23 $ _ _-,;,2.4.4..,.1.9.4;";,,,;;;9.8.

- 11 -

COLQUITf COUNTY BOARD OF EDUCATION

EXHIDIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Colquitt County Board of Education (School District) was established under the laws of the 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.

- 13-

COLoum COUNTY BOARD OF EDUCATION

EXHIBIT "F"

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.
PROPRIETARY FUND TYPE - the fund used to account for activities of the School District similar to those found in the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the School District.
INTERNAL SERVICE FUND - the fund used to account for Workers' Compensation contributions and expenditures.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
NONEXPENDABLE TRUST FuNDS Class of 1988 Scholarship Fund and McKee Scholarship Fund - the funds used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarships to graduating seniors of the Colquitt County High School.
Odom Scholarship Fund - the fund used to account for an endowment ofwhich the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarships to graduating seniors ofthe Colquitt County High School and awards to be made to fifth graders at Jack Mack Odom Elementary School.
EXPENDABLE TRUST FUNDS Demott Scholarship Fund. Goff Scholarship Fund, Millsap Scholarship Fund and Pippin Scholarship Fund - the funds used to account for scholarships to be made to graduating seniors of Colquitt County High School.

- 14-

COLQUITT COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30; 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 detennined by its measurement focus. All governmental and expendable trust 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 of these funds present increases (i.e., revenues and other financ.ing 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.
All proprietary and nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Governmental and expendable trust 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.
Expenditures are generally recognized when the related fund liability is incurred.

- 15 -

COLQUITT COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NQTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in late May 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 of the 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.
The accrual basis ofaccounting, as required by generally accepted accounting principles, is utilized by proprietary and nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Colquitt County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. Proprietary fund budgets were prepared and utilized as a management tool to assess the operations of the internal service funds. 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 ofgeneral 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 20-2-1 67(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.

- 16-

. . :' ~ . ,"
COLOUITI COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL-PURPOSE ANANCIAL STATEMENTS
JUNE 30, 2001

EXHffirr "F"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(l) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.

- 17 -

COLQUITT COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Colquitt County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 19,2000 (levy date). Taxes were due on December 10, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Colquitt 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 $5,332,725.33.

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

School Operations

.8..2 mills

SALES TAXES

Local Option Sales Tax revenue during the fiscal year amounted to $4,235,674.91 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation ofthe School District.

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 $4,221,477.35 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $13,389,343.88 has been collected or on December 31,2003, whichever occurs first.

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

- 18-

COLOUTIT COUNTY BOARD OF EDUCATION

EXHmIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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.
For fiscal year 2001, the School District began accounting for donated food commodities by recording revenues and expenditures associated with donated food commodity items received and consumed by the School District. The reporting of the revenues and expenditures associated with donated commodities is a change in accounting principles.
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-Tenn 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-Tenn Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.

- 19-

COLoum COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value ofsuch 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. Ifa 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 of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

- 20-

COLOUITf COUNTY BOARD OF EDUCAnON

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intennediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $12,041,523.24. The amounts of the total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with

securities held by the School District or by the School District's agent in the

School District's name.

'

Category 2 - Cash collateralized with securities held by the pledging financial institution's

trust department or agent in the School District's name.

Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized

with securities held by the pledging financial institution, or by its trust

department or agent but not in the School District's name.)

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

Risk Category

Bank Balance

1

$ 3,723,235.31

2

410,923.57

3

7,907,364.36

Total

$12,041.523.24

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $8,882,104.40 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists ofGeorgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not

- 21 -

COLOUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value, The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements'. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.
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 ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.
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, motor vehicle liability, or 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 of claims brought against members ofthe 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) and automobile risks. Payment of excess insurance for the system varies by line of coverage.

- 22-

COLQUITr COUNTY BOARD OF EDUCATION

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE-FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

The School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the Internal Service Fund to each user fund on the basis of the percentage of that 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 expense and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of$l,OOO,OOO.OO loss per occurrence, up to the statutory limit.

Changes in the workers' compensation claims liability during the last two fiscal years are as follows:

2000 2001

Begmning of Year Liability

Claims and Changes in EstImates

Claims Paid

End ofYear Liability

$ 34,771.52 $ 129,715.43 $ 130,014.36 $ 34.472.59 $ 34.472.59 $ 22.400.34 $ 38,518.83 $ 18,354.10

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

Changes in the unemployment compensation claims liability during the last two fiscal years are as follows:

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

5,288.31 $

5,288.31 $

0.00

$

0.00 $

1,687.26 $

1,687.26 $

0.00

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

Position Covered

Amount

Superintendent Each Employee (per Loss)

$ 100,000.00 $ 300,000.00

- 23-

COLQUITT COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: OPERATING LEASES

Colquitt County Board ofEducation has entered into various leases as lessee for copiers, computers and modular buildings. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $369,514.06. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2002 2003 2004

$ 243,596.83 247,474.87 183,279.00

Total

$ 674.350.70

CAPITAL LEASES The Colquitt County Board ofEducation has entered into various lease agreements as lessee for air conditioning, equipment and computers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

Note 6: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1998 Gener~Government-Series 1999

3.9% 3.9%

$ 7,750,000.00 4,950,000.00

$12,700,000.00

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

- 24-

COLOUfIT COUNTY BOARD OF EDUCAnON

EXHffiIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1,2000

$ 478,776.60 $14,750,000,00 $15,228,776,60

Additions Capital Leases

37,380.00

37,380,00

Deductions Debt Retired

98.177,70 2,050,000.00 2.148.177.70

Balance June 30, 2001

$ 417,978.90 $12,700,000,00 $13,117,978.90

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

Obligation Bonds

Total Debt

2002 2003 2004 2005 2006

$ 131,391.37 $ 3,186,772.50 $ 3,318,163.87

117,526.87 3,285,662.50 3,403,189.37

101,343.60 3,395,892.50 3,497,236.10

101,343.60 3,889,392.50 3,990,736.10

16,890.60

16,890.60

Total Principal and Interest $ 468,496,04 $13,757,720.00 $14,226,216,04

Deduct: Imputed Interest

50,517.14

Net Present Value of Future Minimum Lease Payments $ 417,978.90

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $880,153.05 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$711,685.81

- 25-

COLoum COUNTY BOARD OF EDUCATION

EXHffirr "FI!

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,2001

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $37,619.24

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 $130,848.00

Note 8: SIGNIACANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2000.

Project

Unearned Executed Contracts

Charlie A. Gray Middle School Renovations Willie J. Williams Middle School Renovations Jack Mack Odom Elementary School Renovations

$ 2,250,102.67 7,039.86
348,312.24

$ 2,605.454.77

The amounts described in this note ate not reflected in the general-purpose financial statements.

Note 9: 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 of routine School District operations. The ultimate disposition of these proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.

- 26-

COLOUITf COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 10: ACCUMULATED EMPLOYEES' LEAVB

Twelve month employees of the School District earn two weeks leave annually. Eleven month employees ofthe School District earn one week ofleave annually. Maximum accumulation allowed is four weeks. Upon retirement or termination of employment employees are paid for unused leave, up to the maximum accumulation allowed, at their current rate ofpay. See Note 1 - Compensated Absences

Note 11: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 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%

$ 3,639,483.43 $ 3,459,760.60 $3,471,046.40

- 27-

cOLquln 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

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

325,091.07 $

255,614.72

4,288.23

20,467.28 13,790.49

Total Assets

$

363,637,07 $===25=5:,6=14=".7..2=

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

$

35,203.37 $

172,596.08

46,550.42 209,064.30

$

207,799.45 $

255,614.72

$

20,467.28

13,790.49

121,579.85 $

000

$

155,837.62 $

0.00

Total Uabilities and Fund Equity See notes to the general-purpose financial statements.
- 28-

$

363,637.07 $ ===-=25=501::,6=14=".7.2. =

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

580,705.79 $

491,856.03

$

816,157.57

820.445.80

848.904.85

20,467.28 13,790.49

27,973.19 11 ,560.10

$

816,157.57 $ 1,435,409.36 $ 1,380,294.17

$

483,161.38 $

483.161.38 $

378,709.07

60,734.12

142,487.91

147.337.16

265,101.74

646,762.12

649,060.29

7,124.16

7,124.16

90,593.75

36.17

36.17

$

816,157.57 $ 1,279.571.74 $ 1,265,700.27

$

6,913.08

16,000.00

$

20,467.28

13.790.49

27,973.19 11.560.10

$

0.00

121,579.85

52,147.53

$

0.00 $

155,837.62 $

114,593.90

$

816,157.57 $ 1,435,409.36 $ 1,380,294.17

- 29-

COLQUIn 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 BUSiness Administration Maintenance and Operation of Plant Student Transportation ServiceS Other Support Services Food Services Operation Community Services Operations
Debt Service PrinCipal Interest
Total expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In
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

- 30-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

230,002,00 $ 1,822.58921

2,334,395 25

1,037,992 12

$ 3,602,389 37 $ 1,822,58921

$ 1,570,567 98 179,378,07 11,454.90 76,876.69 14,55968

$ 3,532,976,06

18,192,89 4,15300

$ 3,532,976.06 $ 1,875,18321

$

69,41331 $

-52,594.00

$

8,18386

$

1901

28,41014

$

1901 $

36,594.00

$

69,43232 $

-16,00000

91,68082

16,00000

-7,505,91 2,230,39

$

155,837.62 $

0,_.0.0...

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 2,052,591.21 $ 1,963,845.50

$ 3,725,657.03

6,060,052.28

5,844,579.75

1,037,992.12

888,695.60

$ 3,725,65703 $ 9,150,63561 $ 8,697,12085

$ 3,053,341.41 $ 4,623,909.39 $ 4,351,532.76

252,705.39 100,972.57
273,285.59
46,476.93 1,433.54
39,326.73
60,55033

432,08346 112,427.47
350,162.28
61,036.61 1,433.54
39,32673 3,532,976.06
60,55033

413,930.78 119,32324
1,276.67 336,30054
188.32 117,938.77
55,529.14 33,004.21 3,327,41645 45,887.93

18,192.89 4,153.00

9,760.32 2,23940

$ 3,828,092.49 $ 9,236,251.76 $ 8,814,32853

$

-102,435.46 $

-85,616.15 $

-117,207.68

$

8,183.86 $

9,76032

$

95,522.38

123,951.53

79,957.45

$

95,522.38 $

132,13539 $

89,71777

$

-6,913.08 $

46,519.24 $

-27,489.91

6,91308

114,593.90

139,279.99

-7,505.91 2,230.39

-1,491.13 4,294.95

$

0.00 $

155,837.62 $ _.....1.",;",1.4,.5.9..3..9..0..

- 31

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undeslgnated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$ 1,069,836.48 $

13,907.48

4,931,833.56

$ 1,069,836 48 $ 4,945,741.04

$

238,260.24

59,532.79

$ _---..:2::::9:.:.7J.:7.,.;:.93::.,.:.:::.;03::...

$ 4,647,948.01

$ 1,069,836.48

000

$ 1,069,836.48 $ 4,647,948.01

$ 1,069,836.48 $ 4,945,741.04

See notes to the general-purpose financial statements. - 32-

EXHIBIT "I"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $

0.00 $ 1,083,743.96 $ 5,066,285.85

4,931,833.56

5,666,084.31

709.689.60

$

0.00 $====-===0;,;:.00.... $ 6,015,577.52 $ 11,442,059.76

$

241,436.60

$

238,260.24

820,651.80

59,532.79

575,017.96

$

297,793.03 $ 1,637,106.36

$ 4,647,948.01 $ 9,214,509.50 83,305.00

$

0.00 $

=O."'"OO~

1,069,836.48

507,13890

$

0.00 $

---'0;;.;.;.0:.;:0'_ $ 5,717,784.49 $ 9,804,953.40

$

000 $==-======,O;,;;'OO:==, $ 6,015,577.52 $ 11,442,059.76

- 33-

COLQUITI 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 Other Funds Total Revenues
EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements 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

REGULAR

BOND PROCEEDS

$

5.185.54 $

440,542.55

$

5.185.54 $

440,542.55

$

4.588.96 $

705,155.89

3.967,926.63

$

4,588.96 $ 4,673,082.52

$

596.58 $ -4.232,539.97

$

562,101.00

$

-334,021.52

$

562,101.00 $

-334,021.52

$

562,697.58 $ -4,566,561 49

507,138.90

9,214,509.50

$

1,069,836.48 $ --=..;4~,64~7~,94;;;,;8~.0~1:.:

See notes to the general-purpose financial statements. - 34-

EXHIBIT"J"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

78,854.40 $

115,829.00 $

194,683.40 $

709,689.60

445,728.09

706,284.07

$

78,854.40 $

115,829.00 $

640,411.49 $ 1,415,973.67

$

709,744.85 $

5,250.00

$

112,862.96 $

499,146.96

4,579,936.55

6,608,649.90

$

112,862.96 $

499,146.96 $ 5,289,681.40 $ 6,613,899.90

$

-34,008.56 $

-383,317.96 $ -4,649,269.91 $ -5,197,926.23

$

34,008.56 $

300,012.96 $

896,122.52 $ 1,809,570.26

-334,021.52

-1,271,929.81

$

34,008.56 $

300,012.96 $

562,101.00 $

537,640.45

$

0.00 $

-83,305.00 $ -4,087,168.91 $ -4,660,285.78

0.00

83,305.00

9,804,953.40

14,465,239.18

$

0.00 $==a::===0.=00... $ 5,717,784.49 $ 9,804,953.40

- 35-

COLQUln COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

NONEXPENDABLETRUSTFUNDS

ENDOWMENT FUNDS

CLASS OF 1988

MCKEE

ODOM

SCHOLARSHIP SCHOLARSHIP SCHOLARSHIP

FUND

FUND

FUND

DEMon SCHOLARSHIP
FUND

$

383.88 $

3,135.03 $

3,694.16 $

1.000.00

6,000,00

49,000.00

50,000,00

25.786.28

25.38

207,23

211.46

109.05

Total Assets

$

6,409.26 $

52,342.26 $

53,905.62 $--==-=26=.8..9.=5=.3.3...

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undesignated

6.000.00 $ 409,26

19,000.00 $ 33.342.26

50.000.00 3.905.62 $ _----'2=6""'.8=9.;;;.;5..;;;.;33:;.-

Total Fund Equity $

6,409.26 $

52.342.26 $

53,905.62 $ ......==-'2~6~,8..9.=5.=33=

See notes to the general-purpose financial statements. - 36-

EXHIBIT"K"

EXPENDABLE TRUST FUNDS

GOFF SCHOLARSHIP

MILLSAP SCHOLARSHIP

FUND

FUND

PIPPIN SCHOLARSHIP
FUND

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

2,228.52 $

1,000.29 $

775.65 $

12,217.53 $

9,933.86

34,754.49

12,123.27

177,664.04

177,053.30

146.98

51.27

751.37

1,075.85

$

37,129.99 $

1,000.29 $

12,950.19 $ 190,632.94 $ 188,06301

$

37,129.99 $

1,000.29 $

$ 12,950.19

15,000.00 $ 115,632.94

75,000.00 113,063.01

$

37,129.99 $

1,000.29 $

12,950.19 $ 190,632.94 $ 188,063.01

- 37-

COLQUln COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2001

REVENUES
Other Funds
EXPENDITURES
Current Support Services General Administration
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

DEMon SCHOLARSHIP
FUND

GOFF SCHOLARSHIP
FUND

$

1,566.81 $

2,15940

$

1,000.00 $

1,424.59

$

566.81 $

734.81

26,328.52

36,395.18

FUND BALANCE JUNE 30

$

26,895.33 $ ===3=7:!:::1,=29=.=9.9...

See notes to the general-purpose financial statements. - 38-

EXHIBIT ilL"

MILLSAP SCHOLARSHIP
FUND

PIPPIN SCHOLARSHIP
FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

1,000.00 $

753.25 $

5.479.46 $ _ _-=2:=;9J.:,5~16.~.:.;38=_

$

1,218.28 $

1,000.00 $

4,642.87 $ _ _--=2J.:,8=21,;..:.:.;33=_

$

-218.28 $

-246.75 $

836.59 $

26,695.05

1,218.57

13,196.94

77,139.21

50,444.16

$

1,000.29 $

12,950.19 $

77,975.80 $ ......,==7.7..=,1=39:..;2..1=

- 39-

COLQUIU 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

Agnculture. U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of Education Food and Nutntlon Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutntlon Program Food 5elVlceS Summer Food SelVlce Program for Children

10553 10555

NIA $ 570,62579

N/A

1,612,614 55 $

(2) 3,381,64484 (3)

10559

N/A

49,377 01

49,553 32 (3)

Total Child Nutnllon Cluster

$ 2,232.617 35 $

3,431,19816

O1her Programs PaSS-Through From Georgia Department of Education Food and Nutntlon Program Food Dlstnbullon Program (1) Fresh Produce Program (1)

10550

NIA

10550

NIA

70,494 90 31,28300

70,494 90 31,28300

Total U S Department of Agnculture

S 2,334.39525 $

3.532,97606

Educallon, U S Department of SpeCial Education Cluster Pass-Through From Georgia Department of Educallon IndiViduals WIth Dissbllllles Education Act Part B - SpeCial Educallon Flow Through Preschool Capacity Building Improvement Grant

84027 84173 84173

N/A $ 644,90231 $

N/A

19,75108

NIA

19,761 09

645,244 47 (3) 19,751 08 19,761 09

TotalSpeclal Education Cluster

$ 684,41448 $

684.75664

Q1her Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Educallon Act

TItle I

Accountability Grants

84 348

N/A

Grants to Local Educational AgenCIes

84 010

N/A

TItle I!

Eisenhower ProfeSSional Development

84 281

NIA

Title III

Technology Literacy Challenge Fund Grants

84 318

NlA

TItle VI

Class Size ReduCllon

84 340

N/A

Innovative Education Program StrategieS

84 298

N/A

Goals 2000

State and Local Educallon Systemic Improvement Grants 84.276

N/A

Vocational Education - BaSIC Grants to States

High School Program

BaSIC Grant

84 048

N/A

Pass-Through From Southwest Georgia Regional

Mental Health, Mental Retardation and

Substance Abuse Board

Safe and Drug- Free Schools

84 188

NIA

Pass-Through From Board of Regents of the University System

of Georgia

Title I! Teacher Quality Enhancement Grants

84 336

N/A

69,81645 1.907,50656
40,53301 127,29407 276,95325 65,05800
2,82700
82,01472

69,81645 1,907.50656
40,53301 127,29407 276.95325
65,05800 3,08002 (3)
82.029 72 (3)

20,00000

20,00000

6,91308

-40 -

CObQUITT COUNTY BOARP OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENPEP JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY pROGRAM/GRANT
Education. U S Department of Other Programs Pass-Through From Bemen County Board of Educabon dIbIa Southern Pine Migrant Educabon Agency Elementary and Secondary EducalJon Act T,Ue I Migrant EducalJon
Total U S Department of Education
JUstice. U S Department of PasS-Through From Chlldran and Youth CoordlnalJng Councll CommunrlJes in Schools expansion
Labor. U S Department of Pass-Through From Georgia Department of Labor Job Training Partnership Act WoridorcelnvestmentAct
Total U S Department of Labor
Defense, U S Department of Direct Department of the Navy ROT C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84 011

N/A $ $ 3.565.021 10 $ _--::3""5:;.:.7""3",,,54,,,,3::...::.06,,-

16540

N/A $

22,36974 $

22.369 74 (4)

17 250 17,259

N/A $ N/A
$

16,86146 $ 81 ,02089

16,86146 86,044 64 (3)

97,882 35 $ _ _...;1:.;:0=.2"",9.::.06::...:.;10,,-

$

40,38384 $

129,273 59 (3)

Total Federal FinanCIal Assistance

$ 6,060,05228 $ _ ......7.1.3.6..1...,,;;,06..8 .5.5..

= N/A Not Available
Notes to me Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food DlslnbulJon and Fresh Produce Programs represent the Federally aSSigned value of nonmonetary assistance for donated commodllJes receIved and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included In the 2001 National School Lunch Program
(3) Expenditures for thiS program Include State, and/or Other Funds Expenditures are not maintained by fund source
(4) Includes Federal AsSistance of $22.36974 proVided to subrecrplents
MajOr Programs are ldenlJfied by an astensk (0) In front of the CFDA number
The accompanYing schedule of expenditures of Federal awerds Includes the Federal grant actMty of the ColqUitt County Board of Education and IS presented on the modified ateNal baSIS of accounbng which Is the same baSIS of accounbng used In the presentalJon of the general-purpose finanCIal statements

See notes to the general-purpose financral statements

- 41 -

COLQUITT COUNTY BOARD OF EDUCATION SCHEPUlE OF SooE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCYJEUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

EducalJOn, Georgia Department of

Quality BaSIC Educallon

Direct InstructIOnal Cost

Kindergarten Program

$

Kindergarten Program - Early Intervenbon Program

Pnmary Grades (1-3) Program

Pnmary Grades Early Intervenbon (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

HlQh School General Educabon (9-12) Program

Vocabonal Laboratory (9-12) Program

Students WIth Disabilities

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedl8l Educabon Program

A1temalJVe EducalJOn Program

EnglISh Speakers of Other Languages (ESOl)

Medl8 Center Program

Staff and ProfeSSIonal Development

Indirect Cost

Categoncal Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

PnnClpal Supplements

Vocabonal SUpeMSOrs

M1Qrant Educabon

Educalton Equallzabon Funding Grant

Food ServIces

VocabonalEducabon

Other Stale Programs

At-RISk Summer School Program

EnVIronmental Sctenca Program

Health Insurance

Mentonng Program

Preschool HandlC8pped Program

Remedial Summer School

Teachers' Rebrement

lottery Programs

Computers In the Classroom

Excepbonal Growth-Captlal Outlay

1,517,81600 675,38800
3,900,984 00 2,221,21900 2,305,98500 4,211,872 00 3,654,147,00 1,100,11700
1,261,81800 1,474,971 00
472,836 00 146,40900 633,68200 693,979.00 327,76800 307,09100 764,783 00 214,572 00 4,551,446 00
943.55900 301,266 00 169,46100
34,732.00 41,42400
8,71900 3,797,10600
$ 249,796 98
12,471 78 75000
711,68581 4,25000
93,91300 3,24400
37,61924

$ 1,517,81600 675,38800
3,900,984 00 2,221,219 00 2,305,98500 4,211,872 00 3,654,147 00 1,100,117 00
1,261,81800 1,474,97100
472,836 00 146,40900 633,68200 693,97900 327,76800 307,09100 764,78300 214,57200 4,551,44600

230,00200
169,244 00 $ 115,829.00

943,55900 301,26600 169,46100
34,73200 41,42400
8,71900 3,797,10600
230,00200 249,796 98
12,471 78 75000
711,685.81 4,25000
93,91300 3,244 00
37,61924
169,244 00 115,82900

Human Resources, GeorgI8 Department of Second Step Violence PreventlOl1

24,264.00

24.264 00

GeorgI8 State FlnallClng and Investment CommiSSion Reimbursement on Construcllon Projects

78,854 40

78,854 40

Office ot School Readiness Pre-KJndergarten Program

1,653,345 21

1,653,345 21

Office of Treasury and Fiscal ServiceS Public School Employees Rebrement

130,84800

130,84800

- 42-

COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENPED JUNE 30. 2001

SCHEDULE "2"

AGENCY/fUNpING
CONTRACTS Educallon, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAl

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

76.93265

61,39932

$

76.93265

61,39932

$ 371200,32478 $ 2,052,591 21 $ 194,68340 $ 39:447,59939

See nOles to the general-purpose finallClal stalements

- 43-

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

The acqulnng of real property for new

facilities, renovating, repalnng,

Improving and equiPPing eXIsting

school bUildingS, other building and

facilities, including furniture and

eqUipment, acquinng property for new

school facilities and system-wJde

technology acquisitions and

improvements. The expenditure limit for the project IS $23,600,000.00

$ 23,6100.00 $ 23,600,000.00 $ 5,285192.44 $ 7,187,28581

Ongoing

(1) The Schoof DIStrict's original cost estimate as specified In the resolutton calling for the Imposillon of the Local Option Sales Tax.

(2) The School Distncl's current estimate of total cost for the projed. Includes all cost from project Inceptron to completion

(3) The votera of Colquitt County approved the imposition of a 1% sales tax to fund the above proJed and retire associated debt. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the proJect.

(4) In addition to the expenditures shown above, the School Dlstnet has ,ncurred mterest to provide advance funding for the above projed as follows:

Prior Years

$

671,125.00

Current Year

535,275.00

Total

$ 1,206,40000

see notes to the general-purpose finanCial statements

-45 -

COLaUITT COUNTY BOARD OF EDUCATION GENERAL FUND - gUALlTY BASIC EDUCATION PROGRAM (gBEl
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 InstruetJonal Programs

Klndergarten 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

Vocalionallaboratory (9-12) Program

Students with DIsabilities

Category II

Category III

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Ahema\Jve Educallon Program

English Speakers of Other languages (ESOL)

1.718.541.00 $ 735,62400
4,248,910.00 2,419.327.00 2.511,653 00 4,587,524 00 3,980.056 00 1,198.235.00 3.655,353.00
690.199.00 755.873.00 357.001.00 334,47900

1,728.37676 $ 743,334.24
4,782,212.65 2,143.994.19 2,470.624.95 5.123,462.25 4,560,749.00 1,189.297.46
1.289,172.80 1,798,823.36
331,070.39 94,683.85
600,869.04 917.313.58 440.570.16 260,82503

34,149.25 $ 13.69379 95,131.32 37,558.90 58,587.11 145,333.18 197,026.95 219,879.58
22.06961 51.654.53 14,101.16
8,315.32 15.189.85
8,713.23 10,10212 15,370.65

1.762.52601 757,028.03
4,877,343 97 2.181,55309 2,529,21206 5,268.79543 4,757,775.95 1,409,177.04
1,311,24241 1,850,477.89
345,171.55 102,999.17 616,058.89 926,026.81 450,672.28 276,195.68

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

27,192,77500 $ 28,475,379 71 $ 946.876.55 $ 29,422,256.26

Media Center Program Staff and Professional Development

832,99300 233,71000

939.894.80 45,829.24

173,970.21 190,58113

1,113,86501 236,410.37

TOTAL aBE FORMULA FUNDS

$

28,259,478.00 $ 29,461,103.75 $ 1,311,427.89 $ 30.772,53164

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

see notes to the generalllurpose finanCial statements

-46 -

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

SCHEDULE "5"

Doerun Elementary School Jack Mack Odom Elementary School Norman Park Elementary School Colquitt County High School Funston Elementary School Wright Elementary School Stringfellow Elementary School Charlie A. Gray Middle School Okapilco Elementary School Cox Elementary School Hamilton Elementary School Willie J. Williams Middle School Sunset Elementary School Vereen Multipurpose Center Program for Exceptional Students Central Office (Altemative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share,

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

779,869.00 $

940,380.52

1,955,291,00

1,916,213,88

1,753,908.00

1,809,474.26

6,463,557.00

7,412,488.57

1,159,271.00

1,056,449.09

1,581,590.00

1,621,495.12

1,239,201.00

1,284,622.41

2,863,369.00

3,233,508,09

1,179,972.00

1,228,327.98

1,571,805.00

1,719,511.84

875,695,00

977,871.88

3,345,553.00

3,613,603.21

2,066,693.00

2,080,370,53

412,029.63

115,909.25

357,001.00

$ 27,192,775.00 $ 29,422,256.26

See notes to the general-purpose financial statements. - 47-

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

Rl'S!>I.L W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa!.hmgton Street. S.w.. Suite 214 Atlanta, Georgia 30334-8400
May 15,2002

Honorable Roy E. Barnes, Governor Members ofthe General Assembly Members of the State Board of Education
and Superintendent and Members of the Colquitt 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 Colquitt County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated May 15,2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Colquitt 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 ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Colquitt County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Colquitt County Board ofEducation'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-635l-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 normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-635l-0l-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Colquitt 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,
~~n~'~ State Auditor
RWH:as 2001YB-41

RUSSELL \\'. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washmglon Streel. S w.. SUlle 214
Allanta. Georgia 30334-8400
May 15,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members ofthe Colquitt County Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULARA-I33
Ladies and Gentlemen:
Compliance
We have audited the compliance of Colquitt CountyBoard of Education with the types of
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular
A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Colquitt County Board ofEducation'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 Colquitt County Board of Education's management. Our responsibility is to express an opinion on Colquitt County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; 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 Colquitt 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 Colquitt County Board ofEducation's compliance with those requirements.
200ISA-IO

In our opinion, the Colquitt County Board ofEducation 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 Colquitt 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 Colquitt 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 ofthe 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 ofone 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 ofperforming 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 of the management, members of the Colquitt 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,
~~
Ru ell W. Hinton State Auditor
RWH:as 2001SA-IO

SECTIONID . AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6351-98-01 FS-6351-99-03 FS-63 51-00-0 1

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

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6351-00-01

The School District has decided not to pursue the recording ofgeneral fixed assets in the accounting records because of the costs related to getting these values established.

SECTION IV FINDINGS AND QUESTIONED COSTS

COLQillrr 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 Colquitt County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Colquitt County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Colquitt County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Colquitt County Board ofEducation 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 Colquitt County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 OCa) of OMB Circular A-I33 The Colquitt County Board ofEducation's audit did not disclose audit findings required to be reported by section .5lO(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food S~ices - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 10.559 Food and Nutrition Program - Food Services - Summer Food Service Program for Children
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Colquitt County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
- 1-

COLQUITT 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-6351-01-0l The Colquitt County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include but may not be limited to date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-