COLQUITT COUNTY BOARD OF EDUCATION 
MOULTRIE, GEORGIA REPORT ON AU-DIT 
OF THE FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED JUNE 30, 2007 
STATE OF GEORGIA 
DEPARTMENT OF AUDITS AND ACCOUNTS 
Russell W. Hinton State Auditor 
 
 COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
EXHIBITS 
 
BASIC FINANCIAL STATEMENTS 
 
DISTRICT-WIDE FINANCIAL STATEMENTS 
 
A 
 
STATEMENT OF NET ASSETS 
 
1 
 
B 
 
STATEMENT OF ACTIVITIES 
 
2 
 
FUND FINANCIAL STATEMENTS 
 
C 
 
BALANCE SHEET 
 
GOVERNMENTAL FUNDS 
 
4 
 
D 
 
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET 
 
TO THE STATEMENT OF NET ASSETS 
 
5 
 
E 
 
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES 
 
GOVERNMENTAL FUNDS 
 
6 
 
F 
 
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT 
 
OF REVENUES, EXPENDITURES AND CHANGES IN FUND 
 
BALANCES TO THE STATEMENT OF ACTIVITIES 
 
7 
 
G 
 
STATEMENT OF FIDUCIARY NET ASSETS 
 
FIDUCIARY FUNDS 
 
8 
 
H 
 
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS 
 
FIDUCIARY FUNDS 
 
9 
 
I 
 
NOTES TO THE BASIC FINANCIAL STATEMENTS 
 
10 
 
SCHEDULES 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
1 SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES - BUDGET AND ACTUAL 
 
GENERALFUND 
 
27 
 
SUPPLEMENTARY INFORMATION 
 
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
28 
 
3 SCHEDULE OF STATE REVENUE 
 
30 
 
 COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
FINANCIAL 
SCHEDULES 
SUPPLEMENTARY INFORMATION 
4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 5 ALLOTMENTS AND EXPENDITURES 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) BY PROGRAM 
 
Page 
32 33 
 
SECTION II 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
 
SECTION III 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 
 
 COLQUITT COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
SECTIONV MANAGEMENT'S RESPONSES SCHEDULE OF MANAGEMENT'S RESPONSES 
 
 SECTION I FINANCIAL 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
May 9, 2008 
 
Honorable Sonny Perdue, 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 BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen: 
We have audited the accompanying financial statements ofthe governmental activities, each major fund, and the aggregate remaining fund information (Exhibits A through I) of the Colquitt County Board of Education, as of and for the year ended June 30, 2007, which collectively comprise the Board's basic financial statements as listed in the table of contents. These financial statements are the responsibility ofthe Colquitt County Board ofEducation's management. Our responsibility is to express opinions on these financial statements based on our audit. 
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Colquitt County Board of Education's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 opinions. 
 
2007ARL-11 
 
 In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information ofthe Colquitt County Board ofEducation, as ofJune 30, 2007, and the respective changes in financial position thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. 
The Colquitt County Board of Education has not presented Management's Discussion and Analysis that accounting principles generally accepted in the United States of America has determined is necessary to supplement, although not to be part of, the basic financial statements. 
In accordance with Government Auditing Standards, we have also issued our report dated May 9, 2008, on our consideration of the Colquitt County Board of Education's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose ofthat report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be considered in assessing the results of our audit. 
The Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual, as presented on page 27, is not a required part of the basic financial statements but is supplementary information required by the accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods ofmeasurement and presentation ofthe required supplementary information. However, we did not audit the information and express no opinion on it. 
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Colquitt County Board of Education's basic financial statements. The accompanying supplementary information which consist of Schedules 2 through 5, which includes the Schedule of Expenditures of Federal Awards as required by U.S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements, and in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. 
A copy of this report has been filed as a permanent record in the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated section 50-6-24. 
Respectfully submitted, 
~ l<l.~ 
Russell W. Hinton, CPA, CGFM State Auditor 
RWH:gp 2007ARL-11 
 
 COLQUITT COUNTY BOARD OF EDUCATION 
 
 COLQUITT COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30, 2007 
ASSETS 
Cash and Cash Equivalents Investments Accounts Receivable, Net 
Interest Taxes State Government Federal Government Other Inventories Capital Assets Land Construction in Progress Land Improvements Buildings Equipment Less: Accumulated Depreciation 
Total Assets 
LIABILITIES 
Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable Long-Term Liabilities 
Due Within One Year Due in More Than One Year 
Total Liabilities 
NET ASSETS 
Invested in Capital Assets, Net of Related Debt Restricted for 
Continuation of Federal Programs Debt Service Capital Projects Unrestricted 
Total Net Assets 
Total Liabilities and Net Assets 
The notes to the basic financial statements are an integral part of this statement. -1- 
 
EXHIBIT"A" 
 
GOVERNMENTAL ACTIVITIES 
 
$ 
 
1,058,262.12 
 
15,717,774.71 
 
682.48 1,837,725.91 6,376,830.67 
839,493.42 34,443.47 85,523.83 
 
946,551.51 1,556,932.49 
47,870.00 98,902,299.68 
9,131,345.51 -18,228,532.58 
 
$ ====1=18='=30=7=,2=0=3=.2=2 
 
$ 
 
114,396.93 
 
8,024,260.44 
 
310,935.72 
 
145,150.03 
 
3,211,243.99 8,621,360.77 
 
$ 
 
20,427,347.88 
 
$ 
 
80,773,876.85 
 
295,594.38 7,423,175.10 
218,429.96 9,168,779.05 
 
$ 
 
97,879,855.34 
 
$ ==1=1=8,.,.30=7=,2===0=3=.2=2 
 
 COLQUITT COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES 
FOR THE YEAR ENDED JUNE 30, 2007 
 
GOVERNMENTAL ACTIVITIES 
Instruction Support Services 
Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt 
Total Governmental Activities 
General Revenues Taxes Property Taxes For Maintenance and Operations Railroad Car Tax Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Capital Projects Local Option Sales Tax Intangible Recording Tax Real Estate Grants and Contributions not Restricted to Specific Programs Investment Earnings Miscellaneous 
Special Items Loss on Demolition of Building 
Total General Revenues and Special Items 
Change in Net Assets 
Net Assets - Beginning of Year 
 
EXPENSES 
 
CHARGES FOR SERVICES 
 
$ 
 
52,018,931.30 $ 
 
3,269,623.52 2,471,272.21 1,692,259.26 1,071,644.50 3,934,845.78 
804,659.06 6,339,284.57 2,544,248.74 
436,711.85 390,369.71 
 
376,393.07 4,937,224.68 
201,030.61 
 
$ 
 
80,488,498.86 $ 
 
313,730.53 38,813.17 1,978.18 80,413.65 
149,822.35 39,620.55 
30,190.81 375,422.04 979,548.57 
2,009,539.85 
 
Net Assets - End of Year 
 
The notes to the basic financial statements are an integral part of this statement. -2- 
 
 EXHIBIT"B" 
 
PROGRAM REVENUES OPERATING GRANTS AND 
CONTRIBUTIONS 
 
CAPITAL GRANTS AND CONTRIBUTIONS 
 
NET (EXPENSES) REVENUES 
AND CHANGES IN NET ASSETS 
 
$ 
 
42,254,090.39 $ 
 
847,540.66 827,561.22 1,007,193.41 1,777,274.08 2,175,580.14 
15,885.01 2,575,929.92 
129,254.83 13,014.74 
179,504.41 
 
610.26 3,530,689.59 
 
$ 
 
55,334,128.66 $ 
 
384,971.78 $ 14,934.17 16,289.68 3,166.31 26,164.64 1,042.04 63,471.91 
401,293.00 
66,027.47 
977,361.00 $ 
 
-9,066,138.60 
-2,368,335.52 -1,641,732.81 
-588,362.52 708,795.89 -1,583,278.65 -787,732.01 -3,660,262.19 -2,013, 700.91 -423,697.11 -180,67 4.49 
-360.77 -360,959.05 -201,030.61 
-22, 167,469.35 
 
$ 
 
6,105,556.98 
 
22,502.20 
 
1,731,182.69 3,739,714.47 5,491,578.96 
139,769.51 45,105.91 10,272,250.00 784,073.89 1,651,107.73 
 
-283,653.61 
 
$ 
 
29 699,188.73 
 
$ 
 
7,531,719.38 
 
90,348,135.96 
 
$ =====97.d'::87=9=,8=5=5=.3=4 
 
-3- 
 
 COLQUITT COUNTY BOARD OF EDUCATION BALANCE SHEET 
GOVERNMENTAL FUNDS JUNE 30, 2007 
 
EXHIBIT"C" 
 
ASSETS 
Cash and Cash Equivalents Investments Accounts Receivable, Net 
Interest Taxes State Government Federal Government Other Inventories 
 
GENERAL FUND 
 
DISTRICTWIDE 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
$ 
 
915,036.99 $ 
 
143,225.13 
 
$ 
 
9,201,598.03 
 
3,358,339.11 $ 3,157,837.57 
 
682.48 1,092,999.51 5,800,762.67 
839,493.42 34,443.47 85,523.83 
 
576,068.00 
 
906,998.42 
 
1,058,262.12 15,717,774.71 
682.48 1,999,997.93 6,376,830.67 
839,493.42 34,443.47 85,523.83 
 
Total Assets 
 
$ 17,970,540.40 $ 4,077,632.24 $ 4,064,835.99 $===2=6=,1=13='=00=8=.6=3 
 
LIABILITIES AND FUND BALANCES 
LIABILITIES 
Accounts Payable Salaries and Benefits Payable Contracts Payable Retainages Payable 
Total Liabilities 
FUND BALANCES 
Reserved for: Continuation of Federal Programs Debt Service Inventories Capital Projects 
Unreserved Designated for Student Activities Designated for Self-Insurance Undesignated Reported in: General Fund 
Total Fund Balances 
 
$ 
 
69,619.51 $ 
 
44,777.81 
 
$ 
 
8,024,260.44 
 
310,935.72 
 
145 149.64 
 
$ 8,093,879.95 $ 
 
500,863.17 
 
$ 
 
$ 
 
210,070.55 
 
$ 
 
$ 3,358,339.11 $ 4,064,835.99 
 
85,523.83 
 
218,429.96 
 
261,243.40 2,062,215.12 
 
7,257,607.55 
 
$ 9,876,660.45 $ 3,576,769.07 $ 4,064,835.99 $ 
 
114,397.32 8,024,260.44 
310,935.72 145149.64 
8,594,743.12 
210,070.55 7,423,175.10 
85,523.83 218,429.96 
261,243.40 2,062,215.12 
7,257,607.55 
17,518,265.51 
 
Total Liabilities and Fund Balances 
 
$ 17,970,540.40 $ 4,077,632.24 $ 4,064,835.99 $===2=6=,1=13=,0=0=8=.6===3 
 
The notes to the basic financial statements are an integral part of this statement. -4- 
 
 COLQUITT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET 
TO THE STATEMENT OF NET ASSETS JUNE 30, 2007 
 
EXHIBIT"D" 
 
Total Fund Balances - Governmental Funds (Exhibit "C") 
Amounts reported for Governmental Activities in the Statement of Net Assets are different because: 
Capital Assets used in Governmental Activities are not financial resources and therefore are not reported in the funds. These assets consist of: 
Land Construction in Progress Land Improvements Buildings Equipment Accumulated Depreciation 
Total Capital Assets 
Some of the School District's property tax revenues will be collected after year-end but are not available soon enough to pay for the current period's expenditures. 
Long-Term Liabilities, including Bonds Payable, are not due and payable in the current period and therefore are not reported as liabilities in the funds. Long-Term Liabilities at year-end consist of: 
Bonds Payable Capital Leases Compensated Absences 
Total Long-Term Liabilities 
 
$ 17,518,265.51 
 
$ 
 
946,551.51 
 
1,556,932.49 
 
47,870.00 
 
98,902,299.68 
 
9,131,345.51 
 
-18,228,532.58 
 
92,356,466.61 
 
-162,272.02 
 
$ -6,295,000.00 -5,287,589.76 -250,015.00 
 
-11,832,604.76 
 
Net Assets of Governmental Activities (Exhibit "A") 
 
$ 97,879,855.34 
 
The notes to the basic financial statements are an integral part of this statement. -5- 
 
 COLQUITT COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
GOVERNMENTAL FUNDS YEAR ENDED JUNE 30, 2007 
 
EXHIBIT"E" 
 
REVENUES 
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation 
Capital Outlay Debt Services 
Principal Interest 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Transfers In Transfers Out 
Total Other Financing Sources (Uses) 
Net Change in Fund Balances 
Fund Balances - Beginning 
 
GENERAL FUND 
 
DISTRICTWIDE 
CAPITAL PROJECTS 
FUND 
 
DEBT SERVICE 
FUND 
 
TOTAL 
 
$ 6,312,741.25 5,676,454.38 $ 
56,062,502.34 9,945,169.31 2,009,539.85 428,884.19 1,651,604.62 
 
3,739,714.47 $ 
576,068.00 
199,674.72 
 
$ 
1,731,182.69 
155,514.98 
 
6,312,741.25 11,147,351.54 56,638,570.34 
9,945,169.31 2,009,539.85 
784,073.89 1,651,604.62 
 
$ 82,086,895.94 $ 4,515,457.19 $ 1,886,697.67 $ 88,489,050.80 
 
$ 50,856,234.34 
 
$ 50,856,234.34 
 
3,205,320.93 2,468,069.57 1,628,967.00 1,063,529.12 3,859,203.78 
800,488.49 7,497,041.57 2,833,822.09 
443,688.74 385,435.35 376,393.07 4,764,456.40 
$ 
 
5,875,300.06 
 
3,205,320.93 2,468,069.57 1,628,967.00 1,063,529.12 3,859,203.78 
800,488.49 7,497,041.57 2,833,822.09 
443,688.74 385,435.35 376,393.07 4,764,456.40 5,875,300.06 
 
52,410.24 6 049.35 
 
$ 2,950,000.00 
194,981.26 
 
3,002,410.24 201,030.61 
 
$ 80,241,110.04 $ 5,875,300.06 $ 3,144,981.26 $ 89,261,391.36 
 
$ 1,845,785.90 $ -1,359,842.87 $ -1,258,283.59 $ -772,340.56 
 
$ 1,775,397.45 $ -1,775,397.45 
 
$ 1,775,397.45 
-1,775,397.45 
 
$ -1,775,397.45 $ 1,775,397.45 
 
$ 
 
0.00 
 
$ 
 
70,388.45 $ 
 
415,554.58 $ -1,258,283.59 $ 
 
-772,340.56 
 
9,806,272.00 
 
3,161,214.49 
 
5,323,119.58 
 
18,290,606.07 
 
Fund Balances - Ending 
 
$ 9,876,660.45 $ 3,576,769.07 $ 4,064,835.99 $ 17,518,265.51 
 
The notes to the basic financial statements are an integral part of this statement. -6- 
 
 COLQUITT COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF 
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES JUNE 30, 2007 
 
EXHIBIT"F" 
 
Total Net Change in Fund Balances - Governmental Funds (Exhibit "E") 
Amounts reported for Governmental Activities in the Statement of Activities are different because: 
Capital Outlays are reported as expenditures in Governmental Funds. However, in the Statement of Activities, the cost of Capital Assets is allocated over their estimated useful lives as depreciation expense. In the current period, these amounts are: 
Capital Outlay Depreciation Expense 
Excess of Capital Outlay over Depreciation Expense 
Because some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered "available" revenues. 
In the Statement of Activities, only the loss on the demolition of a building and sale of equipment is reported, whereas in the Governmental Funds, the assets were expensed in the year of purchase. Thus, the change in net assets differs from the change in fund balances by the carrying value of the building demolished and equipment sold. 
Repayment of Long-Term Debt is reported as an expenditure in Governmental Funds, but the repayment reduces Long-Term Liabilities in the Statement of Net Assets. In the current year, these amounts consist of: 
Bond Principal Retirements Capital Lease Payments 
Total Long-Term Debt Repayments 
Some items reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in Governmental Funds. These activities consist of: 
Increase in Compensated Absences 
 
$ -772,340.56 
 
$ 7,852,666.27 -2,063,291.01 
 
5,789,375.26 
 
-184,682.07 
 
-284,150.49 
 
$ 2,950,000.00 52,410.24 
 
3,002,410.24 
 
-18,893.00 
 
Change in Net Assets of Governmental Activities (Exhibit "B") 
 
$ 7,531,719.38 
 
The notes to the basic financial statements are an integral part of this statement. -7- 
 
 ASSETS 
Cash and Cash Equivalents Investments 
Certificate of Deposit Accounts Receivable, Net 
Interest and Dividends 
 
COLQUITT COUNTY BOARD OF EDUCATION STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUNDS JUNE 30, 2007 
 
EXHIBIT"G" 
 
PRIVATE PURPOSE TRUSTS 
 
AGENCY FUNDS 
 
$ 
 
8,259.89 $ 139,136.08 
 
182,576.65 
 
33,911.56 
 
741.17 
 
Total Assets 
 
$ 191 577.71 $ 173,047.64 
 
LIABILITIES Funds Held for Others 
NET ASSETS Held in Trust for Private Purposes 
 
$ 173,047.64 $ 191,577.71 
 
Total Liabilities and Net Assets 
 
$ 191,577.71 $ 173,047.64 
 
The notes to the basic financial statements are an integral part of this statement. -8- 
 
 COLQUITT COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS 
FIDUCIARY FUNDS YEAR ENDED JUNE 30, 2007 
 
EXHIBIT"H" 
 
ADDITIONS Contributions Donors Investment Earnings Interest Total Additions 
DEDUCTIONS Scholarships Change in Net Assets 
Net Assets - Beginning 
Net Assets - Ending 
 
PRIVATE PURPOSE TRUSTS 
 
$ 
 
1,100.00 
 
8,473.27 
 
$ 
 
9,573.27 
 
7,797.78 
 
$ 
 
1,775.49 
 
189,802.22 
 
$ 191,577.71 
 
The notes to the basic financial statements are an integral part of this statement. -9- 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 1: DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY 
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 Board 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. 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF PRESENTATION 
The School District's basic financial statements are collectively comprised of the District-wide financial statements, fund financial statements and notes to the basic financial statements of the Colquitt County Board of Education. 
District-wide Statements: The Statement ofNet Assets and the Statement ofActivities display information about the financial activities ofthe overall School District, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange transactions. 
The Statement of Activities presents a comparison between direct expenses and program revenues for each function of the School District's governmental activities. 
 Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Indirect expenses (expenses of the School District related to the administration and support ofthe School District's programs, such as office and maintenance personnel and accounting) are not allocated to programs. 
 Program revenues include (a) charges paid by the recipients ofgoods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. 
Fund Financial Statements: The fund financial statements provide information about the School District's funds, including fiduciary funds. Eliminations have been made to minimize the double counting ofinternal activities. Separate statements for each category (governmental and fiduciary) are presented. The emphasis of fund financial statements is on major governmental funds. 
 
- 10 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The School District reports the following major governmental funds: 
 General Fund is the School District's primary operating fund. It accounts for all financial resources ofthe School District, except those resources required to be accounted for in another fund. 
 District-wide Capital Projects Fund accounts for financial resources including Special Purpose Local Option Sales Tax (SPLOST) and grants from Georgia State Financing and Investment Commission to be used for the acquisition, construction or renovation ofmajor capital facilities. 
 Debt Service Fund accounts for taxes (sales) legally restricted for the payment of general longterm principal, interest and paying agent's fees. 
The School District reports the following fiduciary fund types: 
 Private Purpose Trust funds report various trust arrangements to provide scholarships to various individuals. Some under which principal and interest may be expended, and some where only income can be spent and principal must be invested and preserved intact. 
 Agency funds account for assets held by the School District as an agent for various funds or individuals. 
BASIS OF ACCOUNTING 
The basis ofaccounting determines when transactions are reported on the financial statements. The District-wide governmental and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, sales taxes, grants and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year in which the underlying transaction (sale) takes place. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
The School District uses funds 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. 
 
- 11 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
Governmental funds are reported using the current financial resources measurement focus and the modified accrual basis ofaccounting. Under this method, revenues are recognized when measurable and available. The School District considers all revenues reported in the governmental funds to be available if they are collected within sixty days after year-end. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt and compensated absences, which are recognized as expenditures to the extent they have matured. Capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term liabilities and acquisitions under capital leases are reported as other financing sources. 
The School District funds certain programs by a combination ofspecific cost-reimbursement grants, categorical grants, and general revenues. Thus, when program costs are incurred, there are both restricted and unrestricted net assets available to finance the program. It is the School District's policy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. 
CASH AND CASH EQUIVALENTS 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Official Code of Georgia Annotated Section 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
( 1) Obligations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
- 12 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(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. 
 
The School District does not have a formal policy regarding investment policies that address credit risks, custodial credit risks, concentration ofcredit risks, interest rate risks or foreign currency risks. 
 
RECEIVABLES 
 
Receivables consist of amounts due from property and sales taxes, 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 basic 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 2006 tax digest year (calendar year) on July 31, 2006 (levy date). Taxes were due on December 10, 2006 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2006 tax digest are reported as revenue in the governmental funds for fiscal year 2007. 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, at the fund reporting level, during the fiscal year ended June 30, 2007, for maintenance and operations amounted to $6,290,239.05. 
 
The tax millage rate levied for the 2006 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 
 
8.662 mills 
 
- 13 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SALES TAXES 
Local Option Sales Tax revenue, at the fund reporting level, during the fiscal year amounted to $5,491,578.96 and was recorded in the General Fund. Local Option Sales Tax is to be used for the maintenance and operation of the School District. 
Special Purpose Local Option Sales Tax, at the fund reporting level, during the year amounted to $5,470,897.16 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. 
INVENTORIES 
FOOD INVENTORIES On the basic financial statements, inventories of donated food commodities used in the preparation ofmeals are reported at their Federally assigned value and purchased foods inventories are reported at cost (first-in, first-out). The School District uses the consumption method to account for inventories whereby donated food commodities are recorded as an asset and as revenue when received, and expenses/expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenses/expenditures are recorded as the inventory items are used. 
CAPITAL ASSETS 
Capital assets purchased, including capital outlay costs, are recorded as expenditures in the fund financial statements at the time of purchase (including ancillary charges). On the District-wide financial statements, all purchased capital assets are valued at cost where historical records are available and at estimated historical cost based on appraisals or deflated current replacement cost where no historical records exist. Donated capital assets are recorded at estimated fair market value on the date donated. Disposals are deleted at depreciated recorded cost. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized. Depreciation is computed using the straight-line method. The School District does not capitalize book collections or works of art. During the fiscal year under review, no events or changes in circumstances affecting a capital asset that may indicate impairment were known to the School District. 
Capitalization thresholds and estimated useful lives of capital assets reported in the District-wide statements are as follows: 
 
- 14 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
Capitalization Policy 
 
Estimated Useful Life 
 
Land Land Improvements Buildings and Improvements Equipment 
 
$ 5,000.00 
 
NIA 
 
$ 5,000.00 
 
25 years 
 
$ 5,000.00 25 to 60 years 
 
$ 5,000.00 7 to 25 years 
 
Depreciation is used to allocate the actual or estimated historical cost of all capital assets over estimated useful lives. 
 
GENERAL OBLIGATION BONDS 
 
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond issuance costs are recognized in the financial statements during the fiscal year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the Statement of Net Assets. 
 
NET ASSETS 
 
The School District's net assets in the District-wide Statements are classified as follows: 
 
Invested in capital assets, net of related debt - This represents the School District's total investment in capital assets, net ofoutstanding debt obligations related to those capital assets. To the extent debt has been incurred but not yet expended for capital assets, such amounts are not included as a component of invested in capital assets, net of related debt. 
 
Restricted net assets - These represent resources for which the School District is legally or contractually obligated to spend resources for bus replacement, continuation of Federal programs, debt service and capital projects in accordance with restrictions imposed by external third parties. 
 
Unrestricted net assets - Unrestricted net assets represent resources derived from property taxes, sales taxes, grants and contributions not restricted to specific programs, charges for services, and miscellaneous revenues. These resources are used for transactions relating to the educational and general operations of the School District, and may be used at the discretion of the Board to meet current expenses for those purposes. 
 
Note 3: DEPOSITS AND INVESTMENTS 
 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not 
 
- 15 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 3: DEPOSITS AND INVESTMENTS 
been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 .1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. 
Acceptable security for deposits consists of any one 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 
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
CATEGORIZATION OF DEPOSITS At June 30, 2007, the bank balances were $5,444,599.58. The amounts ofthe total uninsured bank balances are classified into three categories of custodial credit risk: 
Category 1 - Uncollateralized, Category 2 - Cash collateralized with securities held by the pledging financial institution, or 
by its trust department or agent in the School District's name, Category 3 - Cash collateralized with securities held by the pledging financial institution's 
trust department or agent but not in the School District's name. 
 
- 16 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 3: DEPOSITS AND INVESTMENTS 
 
The School District's uninsured deposits are classified by custodial credit risk category at June 30, 2007, as follows: 
 
Custodial Credit Risk Category 
 
Bank Balance 
 
1 
 
$ 
 
0.00 
 
2 
 
4,820,814.29 
 
3 
 
81,582.98 
 
Total 
 
$4,902,397.27 
 
CATEGORIZATION OF INVESTMENTS The School District's investments as of June 30, 2007, are presented below. All investments are presented by investment type and debt securities are presented by maturity. 
 
Investment Type 
 
Fair Value 
 
Investment Maturity 
 
1- 5 
 
6 - 10 
 
Years 
 
Years 
 
Debt Securities U. S. Treasuries Repurchase Agreements 
 
$ 3,358,339.11 
 
$ 3,358,339.11 
 
3,157,837.57 $3,157,837.57 
 
$ 6,516,176.68 $3,157,837.57 $ 3,358,339.11 
 
Investment Pools Office of Treasury and Fiscal Services Georgia Fund 1 
 
9,151,320.29 
 
Total Investments 
 
$15,667,496.97 
 
The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services is not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, 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. Additional information on the Local Government Investment Pool is disclosed in the State of Georgia Comprehensive Annual Financial Report. This audit can be obtained from the Georgia Department of Audits and Accounts at http://www.audits.state.ga.us/intemet/searchRpts.html. 
 
The Primary Liquidity Portfolio consists of Georgia Fund I which is not registered with the SEC as an investment company but does operate in a manner consistent with the SEC's Rule 2a-7 of the Investment Company Act of 1940. The investment is valued at the pool's share price, $1.00 per 
 
- 17 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 3: DEPOSITS AND INVESTMENTS 
 
share. The pool is an AAAm rated investment pool by Standard and Poor's. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2007, was 15 days. 
 
Interest Rate Risk Interest rate risk is the risk that changes in interest rates of debt investment will adversely affect the fair value of an investment. The School District does not have a formal policy for managing interest rate risk. 
 
Custodial Credit Risk Custodial credit risk for investments is the risk that, in the event ofthe failure ofthe counterparty to a transaction, the School District will not be able to recover the value ofthe investment or collateral securities that are in the possession of an outside party. The School District does not have a formal policy for managing custodial credit risk. 
 
At June 30, 2007, $6,516,176.78 ofthe School District's applicable investments were uninsured, are not registered in the name of the School District and are held by either the counterparty or the counterparty's trust department or agent, but not in the School District's name. 
 
Credit Quality Risk Credit quality risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The School District does not have a formal policy for managing credit quality risk. 
 
The investments subject to credit quality risk are reflected below: 
 
Rated Debt Investments 
 
Fair Value 
 
Quality Ratings Unrated 
 
Debt Securities Repurchase Agreements 
 
$3,157,837.57 $3,157,837.57 
 
Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in a single issuer. The School District does not have a formal policy for managing concentration of credit risk. More than 5% of the School District's investments are in Repurchase Agreements. These investments are 21 % of the School District's total investments. 
 
Note 4: 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 2 - Inventories 
 
- 18 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 5: CAPITAL ASSETS 
 
The following is a summary of changes in the Capital Assets during the fiscal year: 
 
Balances July 1, 2006 
 
Increases 
 
Balances Decreases June 30, 2007 
 
Governmental Activities Capital Assets, Not Being Depreciated: 
Land Construction in Progress 
 
$ 946,551.51 
 
$ 946,551.51 
 
12,179,425.53 $ 5,690,918.62 $16,313,411.66 1,556,932.49 
 
Total Capital Assets Not Being Depreciated $13,125,977.04 $ 5,690,918.62 $16,313,411.66 $ 2,503,484.00 
 
Capital Assets Being Depreciated Buildings and Building Improvements Equipment Land Improvements 
 
$82,795,136.29 $17,318,790.77 $ 1,211,627.38 $98,902,299.68 
 
8,196,973.97 1,108,498.54 174,127.00 9,131,345.51 
 
0.00 
 
47,870.00 
 
47,870.00 
 
Less Accumulated Depreciation for: Buildings and Building Improvements Equipment 
 
13,387,404.57 1,572,057.20 3,879,440.89 491,233.81 
 
927,973.77 14,031,488.00 173,630.12 4,197,044.58 
 
Total Capital Assets, Being Depreciated, Net $73,725,264.80 $16,411,868.30 $ 284,150.49 $89,852,982.61 
 
Governmental Activity Capital Assets - Net $86.851.241.84 $22.102.786.92 $16.597.562,15 $92.356.466.61 
 
Capital assets being acquired under capital leases as of June 30, 2007, are as follows: 
 
Governmental Funds 
 
Buildings and Improvements Less: Accumulated Depreciation 
 
$ 5,257,501.64 212,391.49 
 
$ 5,045,110.15 
 
Current year depreciation expense by function is as follows: 
 
- 19 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 5: CAPITAL ASSETS 
 
Instruction Support Services 
Pupil Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Food Services 
 
$ 1,117,151.72 
 
$ 53,489.42 58,344.41 11,340.72 93,713.36 3,732.25 227,336.04 261,693.85 
 
709,650.05 236,489.24 
 
$2,063,291.01 
 
Note 6: RESTRICTED ASSETS 
 
Special Purpose Local Option Sales Tax (SPLOST) and escrow account for payment of Qualified Zone Academy Bonds (QZAB) capital lease are restricted assets in the Statement of Net Assets because their use is limited by applicable bond covenants or statutory provisions. Restricted assets at June 30, 2007, were as follows: 
 
District-wide Capital Projects 
 
QZAB 
 
SPLOST 
 
Escrow 
 
Debt Service Funds 
 
Restricted Cash and Cash Equivalents: Capital Acquisitions 
Restricted Investments: Debt Services 
 
$ 143,225.13 $ 3,358,339.11 $3,157,837.57 
 
Note 7: INTERFUND TRANSFERS 
 
Interfund transfers for the year ended June 30, 2007, consisted of the following: 
 
Transfer to 
 
Transfers From General Fund 
 
District-wide Capital Projects 
 
$ 1,775,397.45 
 
Transfers are used to move property tax revenues collected by the General Fund to the District-wide Capital Projects Fund as required match or supplemental funding source for capital construction projects. 
 
- 20- 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 8: RISK MANAGEMENT 
 
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation. 
 
The School District 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 (including coverage for flood and earthquake), general liability (including coverage for sexual harassment, molestation and abuse), errors and omissions, crime and automobile risks. Payment of excess insurance for the system varies by line of coverage. 
 
The School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user program on the basis of the percentage of that program'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 expenses/expenditures 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 $350,000.00 loss per occurrence, up to the statutory limit. 
 
Changes in the workers' compensation claims liability during the last two fiscal years are as follows: 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
2006 2007 
 
$ 
 
0.00 $ 162,362.00 $ 162,362.00 $ 
 
0.00 
 
$ 
 
0.00 $ 156,835.00 $ 156,835.00 $ 
 
0.00 
 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenses/expenditures and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
- 21 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 8: RISK MANAGEMENT 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
2006 2007 
 
$ 
 
0.00 $ 31,795.00 $ 31,795.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
1,784.00 $ 
 
1,784.00 $ 
 
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 
 
Note 9: LONG-TERM DEBT 
 
CAPITAL LEASES The Colquitt County Board of Education has entered into various lease agreements, including a Qualified Zone Academy Bond, as lessee for equipment, computers and constructions projects. These lease agreements qualify as capital leases for accounting purposes, and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception. 
 
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. Typically, the General Fund is the fund used to liquidate this long-term debt. The School District uses the vesting method to compute compensated absences. 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
General Government - Series 2004 
 
1.1%-2.375% $ 6,295,000.00 
 
The changes in Long-Term Debt during the fiscal year ended June 30, 2007, were as follows: 
 
-22 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 9: LONG-TERM DEBT 
 
Capital Leases 
 
Governmental Funds 
 
General 
 
Compensated Obligation 
 
Absences (1) 
 
Bonds 
 
Total 
 
Balance July I, 2006 
 
$ 5,340,000.00 $ 231,122.00 $ 9,245,000.00 $ I4,816, I22.00 
 
Additions Annual Leave Earned . 
 
313,046.00 
 
313,046.00 
 
Deductions Annual Leave Utilized Debt Retired 
 
52,410.24 
 
294,153.00 
 
294,153.00 
 
2,950,000.00 3,002,410.24 
 
Balance June 30, 2007 
 
$ 5.287 589.76 $ 250 015.00 $ 6,295 000 00 $11 832.604.76 
 
Portion of Long-Term Debt Due within One Year 
 
$ 41,243.99 $ 
 
0.00 $ 3,170,000.00 $ 3,211,243.99 
 
(I) The portion of Compensated Absences due within one year has been determined to be immaterial to the basic financial statements. 
 
At June 30, 2007, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
 
Cagital Leases 
 
Princigal 
 
Interest 
 
2008 2009 2010 2011 2012 2013 - 2016 
 
$ 41,243.99 $ 43,712.93 46,329.65 49,103.02 52,042.41 
5,055,157.76 
 
17,215.60 14,746.66 12,129.94 9,356.57 6,427.18 3,301.83 
 
Total Principal and Interest 
 
$ 5,287,589.76 $ 63,177.78 
 
Fiscal Year Ended June 30 
 
General Obligation 
 
Debt 
 
Princigal 
 
Interest 
 
2008 2009 
 
$3,170,000.00 $ 135,981.00 
 
3,125,000.00 
 
72,581.00 
 
Total Principal and Interest 
 
$ 6,295,000.00 $ 208,562.00 
 
- 23 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 10: ON-BEHALF PAYMENTS 
The School District has recognized revenues and costs in the amount of $1,497,965.69 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 ofNon-Certified Personnel In the amount of $1,459,213.74 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $28,510.95 
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 $10,241.00 
Note 11: SIGNIFICANT 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 costs which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the basic financial statements. 
Note 12: SUBSEQUENT EVENTS 
On February 5, 2008, the voters ofColquitt County voted in favor ofa Special Purpose Local Option Sales Tax ofone percent to be imposed on all sales and uses in Colquitt County for a period oftime not to exceed 20 calendar quarters to raise not more than $36,000,000.00. The proceeds are to be used as stated on the Official Ballot of Colquitt County as follows: 
"For the purposes ofacquiring, constructing, renovating, repairing, improving and equipping existing school buildings, athletic facilities and other buildings and facilities useful or desirable in connection therewith, including the acquisition of all equipment and other real and personal property necessary therefore, including school buses and system-wide technology." 
 
- 24- 
 
 COLQUITT COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2007 
 
EXHIBIT "I" 
 
Note 12: SUBSEQUENT EVENTS 
 
This vote also approved the issuance of general obligation debt of the Colquitt County School District in the principal amount of$20,000,000.00 for the above capital outlay purposes. 
 
Note 13: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems 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 of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.28% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2007 2006 2005 
 
100% 100% 100% 
 
$4,061,722.12 $ 3,762,241.00 $ 3,575,438.00 
 
- 25 - 
 
 (This page left intentionally blank) 
 
 COLQUITT COUNTY BOARD OF EDUCATION GENERAL FUND 
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL 
YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "1" 
 
REVENUES 
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterprise Operations Food Services Operation 
Debt Service 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Other Sources Other Uses 
Total Other Financing Sources (Uses) 
Net Change in Fund Balances 
Fund Balances - Beginning 
 
NONAPPROPRIATED BUDGETS 
 
ORIGINAL (1) 
 
FINAL (1) 
 
ACTUAL AMOUNTS 
 
$ 
 
6,059,954.87 $ 
 
6,059,954.87 $ 
 
6,312,741.25 
 
5,702,200.00 
 
5,702,200.00 
 
5,676,454.38 
 
53,072,559.51 
 
53,986,175.64 
 
56,062,502.34 
 
9,496,589.76 
 
10,888,207.62 
 
9,945,169.31 
 
901,800.00 
 
901,800.00 
 
2,009,539.85 
 
219,500.00 
 
219,500.00 
 
428,884.19 
 
128,398.00 
 
128 398.00 
 
1,651,604.62 
 
$ 
 
75,581,002.14 $ 
 
77,886,236.13 $ 
 
82,086,895.94 
 
$ 
 
49,040,884.55 $ 
 
49,235,270.26 $ 
 
50,856,234.34 
 
3,087,681.11 1,446,582.17 1,481,484.80 
965,530.51 3,592,176.22 1,094,681.76 6,162,552.93 3,136,476.77 
450,839.30 352,518.23 
4,233,463.38 
 
2,984,629.79 2,873,430.01 1,497,305.38 1,159,938.22 3,572,335.86 1,094,712.76 6,445,492.93 3,209,855.81 
418,609.90 414,087.73 
4,233,463.38 
 
3,205,320.93 2,468,069.57 1,628,967.00 1,063,529.12 3,859,203.78 
800,488.49 7,497,041.57 2,833,822.09 
443,688.74 385,435.35 376,393.07 4,764,456.40 
58 459.59 
 
$ 
 
75,044 871. 73 $ 
 
77 139 132.03 $ 
 
80241110.04 
 
$ 
 
536,130.41 $ 
 
747 104.10 $ 
 
1,845,785.90 
 
$ 
 
1,184,322.04 $ 
 
-1,292,712.52 
 
$ 
 
-108,390.48 $ 
 
$ 
 
427,739.93 $ 
 
9,814 323.46 
 
1,184,322.04 
-997,712.52 $ 186 609.52 $ 933,713.62 $ 
9,814,323.46 
 
-1 775 397 .45 -1 775,397.45 
70,388.45 9,806,272.00 
 
Fund Balances - Ending 
 
$ 
 
10,242,063.39 $ 
 
10,748,037.08 $ ==9:!,8=7=6"'=,6=6=0=.4=5 
 
Notes to the Schedule of Revenues, Expenditures and Changes in Fund Balances Budget and Actual 
(1) Original and Final Budget amounts do not include budgeted revenues or expenditures of the various principal accounts. 
The accompanying schedule of revenues, expenditures and changes in fund balances budget and actual is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. 
 
See notes to the basic financial statements. 
 
- 27 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "2" 
 
FUNDING AGENCY 
PROGRAM/GRANT 
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food Services School Breakfast Program National School Lunch Program 
Total Child Nutrition Cluster 
Other Programs Pass-Through From Georgia Department of Education Food Donation (1) 
Total U. S. Department of Agriculture 
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Special Education Grants to States Preschool Grants 
Total Special Education Cluster 
Other Programs Pass-Through From Georgia Department of Education Education for Homeless Children and Youth English Language Acquisition Grants Enhancing Education Through Technology Program Hurricane Education Recovery Improving Teacher Quality State Grants Migrant Education Reading First State Grants Rural Education State Grants for Innovative Programs Title I Grants to Local Educational Agencies Vocational Education - Basic Grants to States 
Total U. S. Department of Education 
Defense, U. S. Department of Direct Department of the Marines R.O.T.C. Program 
Total Federal Financial Assistance 
N/A = Not Available 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
EXPENDITURES IN PERIOD 
 
10.553 10.555 
 
N/A 
 
(2) 
 
NIA 
 
$ 
 
4,125,346.99 
 
$ 
 
4,125,346.99 
 
10.550 
 
N/A 
 
131 475.37 
 
$ 
 
4,256,822.36 
 
84.027 84.173 
 
N/A $ N/A 
$ 
 
1,425,513.78 38013.73 
1,463,527.51 
 
84.196 84.365 84.318 84.938 84.367 84.011 84.357 84.358 84.298 84.010 84.048 
 
N/A N/A N/A N/A N/A N/A N/A NIA NIA N/A N/A 
$ 
 
40,000.00 79,902.72 92,370.77 (3) 620,643.72 489,057.12 159,232.46 285,498.35 25,061.46 3,157,515.71 104 733.60 
6 517,543.42 
 
$ 
 
53,389.59 
 
- 28 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "2" 
 
Notes to the Schedule of Expenditures of Federal Awards 
(1) The amount shown for the Food Donation Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the School District during the current fiscal year. 
(2) Expenditures for the funds earned on the School Breakfast Program ($817,432.26) were not maintained separately and are included in the 2007 National School Lunch Program. 
(3) Funds earned and expended in the prior period on the Hurricane Education Recovery program, in the amount of $76,780.00, do not require reporting of expenditures. 
Major Programs are identified by an asterisk (*) in front of the CFDA number. 
The School District did not provide Federal Assistance to any Subrecipient. 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Colquitt County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the fund financial statements. 
 
See notes to the basic financial statements. 
 
-29 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "3" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
CAPITAL 
 
GENERAL 
 
PROJECTS 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS Bright From the Start: Georgia Department of Early Care and Learning Pre-Kindergarten Program 
 
$ 2,494,606.95 
 
$ 
 
2,494,606.95 
 
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program 20 Days Additional Instruction Staff and Professional Development Indirect Cost Central Administration School Administration Facility Maintenance and Operations Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Migrant Education Education Equalization Funding Grant Food Services Vocational Education Amended Formula Adjustment Other State Programs Graduation Coaches Health Insurance K-8 Statewide Reading and Math Grants National Teacher Certification Preschool Handicapped Program Pupil Transportation-State Bonds Remedial Summer School ( Middle School) Teachers' Retirement 
 
3,349,787.00 73,556.00 
6,404,351.00 706,933.00 
2,688,314.00 390,480.00 
4,759,847.00 4,367,099.00 1,492,242.00 
92,571.00 1,288,505.00 2,925,876.00 
505,039.00 491,822.00 1,982,636.00 
8,598.00 390,190.00 575,526.00 899,543.00 269,949.00 175,730.00 
1,111,169.00 1,871,537.00 2,306,557.00 
1,162,957.00 101,293.00 12,000.00 157,175.00 28,381.00 18,859.00 17,637.00 
10,272,250.00 233,224.00 
1,066,521.01 -777,905.00 
40,075.00 1,459,213.74 
132,502.69 12,570.00 
144,589.00 300,000.00 
6,444.00 28,510.95 
 
3,349,787.00 73,556.00 
6,404,351.00 706,933.00 
2,688,314.00 390,480.00 
4,759,847.00 4,367,099.00 1,492,242.00 
92,571.00 1,288,505.00 2,925,876.00 
505,039.00 491,822.00 1,982,636.00 
8,598.00 390,190.00 575,526.00 899,543.00 269,949.00 175,730.00 
1,111,169.00 1,871,537.00 2,306,557.00 
1,162,957.00 101,293.00 12,000.00 157,175.00 28,381.00 18,859.00 17,637.00 
10,272,250.00 233,224.00 
1,066,521.01 -777,905.00 
40,075.00 1,459,213.74 
132,502.69 12,570.00 
144,589.00 300,000.00 
6,444.00 28,510.95 
 
- 30 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "3" 
 
AGENCY/FUNDING 
GRANTS Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
Office of Planning and Budget Georgia Council for the Arts 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
GOVERNMENTAL FUND TYPES 
 
CAPITAL 
 
GENERAL 
 
PROJECTS 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 576,068.00 $ 
 
576,068.00 
 
$ 
 
13,500.00 
 
13,500.00 
 
10,241.00 
 
10241.00 
 
$ 56,062,502.34 $ 576,068.00 $ 56,638,570.34 
 
See notes to the basic financial statements. 
 
- 31 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "4" 
 
PROJECT 
The acquiring, constructing, renovating, repairing, improving and equipping existing school buildings, athletic facilities and other buildings and facilities useful or desirable in connection therewith, including the acquisition of all equipment and other real and personal property necessary therefor, including system-wide technology. The expenditure limit for the project is $23,500,000.00. 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) 
 
PROJECT STATUS 
 
$ 23,500,000.00 $ 31,341,130.32 $ 6,070,281.32 $ 25,270,849.00 Ongoing 
 
(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax. 
(2) The School District's current estimate of total cost for the project. Includes all cost from project inception to completion. 
(3) The voters of Colquitt County approved the imposition of a 1% sales tax to fund the above project 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. 
 
See notes to the basic financial statements. 
 
- 32 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2007 
 
SCHEDULE "5" 
 
DESCRIPTION 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION {1) {2) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
Direct Instructional Programs 
 
Kindergarten Program 
 
$ 
 
Kindergarten Program-Early Intervention Program 
 
Primary Grades (1-3) Program 
 
Primary Grades-Early Intervention (1-3) Program 
 
Upper Elementary Grades (4-5) Program 
 
Upper Elementary Grades-Early Intervention (4-5) 
 
Program 
 
Middle School (6-8) Program 
 
High School General Education (9-12) Program 
 
Vocational Laboratory (9-12) Program 
 
Students with Disabilities 
 
Category I 
 
Category II 
 
Category Ill 
 
Category IV 
 
CategoryV 
 
Gifted Student - Category VI 
 
Remedial Education Program 
 
Alternative Education Program 
 
English Speakers of Other Languages (ESOL) 
 
3,526,706.00 $ 139,858.00 
6,748,303.00 857,070.00 
2,879,379.00 490,920.00 
 
3,757,319.54 $ 107,844.51 
6,678,724.31 1,160,510.11 3,435,633.31 
502,853.08 
 
5,096,397.00 4,663,499.00 1,594,382.00 5,628,078.00 
 
6,399,276.42 6,012,801.66 1,377,112.59 
 
1,993,685.00 52,422.00 
417,038.00 597,223.00 
 
2,361,786.36 3,037,106.69 
378,131.16 14,600.80 
994,167.54 
794,409.70 678,617.56 
 
74,081.49 $ 1,072.62 
211,676.14 13,141.85 
147,475.35 5,228.24 
301,796.71 464,122.09 290,823.37 
573.72 16,866.69 48,220.62 13,882.76 12,453.88 50,799.62 
3,406.05 111,867.80 
5,537.53 
 
3,831,401.03 108,917.13 
6,890,400.45 1,173,651.96 3,583,108.66 
508,081.32 
6,701,073.13 6,476,923.75 1,667,935.96 
573.72 2,378,653.05 3,085,327.31 
392,013.92 27,054.68 
1,044,967.16 3,406.05 
906,277.50 684,155.09 
 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
 
$ 
 
34,684,960.00 $ 37,690,895.34 $ 1,773,026.53 $ 39,463,921.87 
 
Media Center Program Staff and Professional Development 
 
961,506.00 189,963.00 
 
1,192,973.25 42,753.72 
 
260,000.02 165,249.55 
 
1,452,973.27 208,003.27 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
35,836,429.00 $ 38,926,622.31 $ 2,198,276.10 $ 41, 124,898.41 
 
(1) Comprised of State Funds plus Local Five Mill Share. (2) Allotments do not include the impact of the State amended formula adjustment. 
 
See notes to the basic financial statements. 
 
- 33 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
May 9, 2008 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Colquitt County Board of Education 
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
Ladies and Gentlemen: 
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information ofColquitt County Board ofEducation as ofand for the year ended June 30, 2007, which collectively comprise Colquitt County Board of Education's basic financial statements and have issued our report thereon dated May 9, 2008. 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. 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered Colquitt County Board ofEducation's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose ofexpressing an opinion on the effectiveness of the Colquitt County Board of Education's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Colquitt County Board of Education's internal control over financial reporting. 
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. 
2007YB-30 
 
 A control deficiency exists when the design or operation ofa control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affect the Colquitt County Board of Education's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement ofthe Colquitt County Board of Education's financial statements that is more than inconsequential will not be prevented or detected by the Colquitt County Board of Education's internal control. We consider items FS-6351-07-01 and FS-6351-07-02 in the accompanying Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial reporting. 
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement ofthe financial statements will not be prevented or detected by the Colquitt County Board of Education's internal control. 
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph ofthis section and would not necessarily disclose all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that none of the significant deficiencies described above are material weaknesses. 
Compliance and Other Matters 
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 grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 
We noted certain matters that we have reported to management of Colquitt County Board of Education in a separate letter dated May 9, 2008. 
Colquitt County Board ofEducation's response to the findings identified in our audit is described in the accompanying Schedule ofManagement's Responses. We did not audit Colquitt County Board of Education's response and, accordingly, we express no opinion on it. 
2007YB-30 
 
 This report is intended solely for the information and use of the finance committee, management, members ofthe 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, ' 
~th.~ 
Russell W. Hinton, CPA, CGFM State Auditor 
RWH:gp 2007YB-30 
 
 Russell W. Hinton 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
270 Washington Street, S.W., Suite 1-156 Atlanta, Georgia 30334-8400 
May 9, 2008 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Colquitt County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
Ladies and Gentlemen: 
Compliance 
We have audited the compliance of Colquitt County Board of Education with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2007. Colquitt County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of 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 of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance 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 of Education's compliance with those requirements. 
2007SA-10 
 
 In our opinion, the Colquitt County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2007. 
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 ofexpressing our opinion on compliance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness ofthe Colquitt County Board of Education's internal control over compliance. 
A control deficiency in an entity's internal control over compliance exists when the design or operation ofa control does not allow management or employees, in the normal course ofperforming their assigned functions, to prevent or detect noncompliance with a type ofcompliance requirement of a Federal program on a timely basis. A significant deficiency is a control deficiency, or combination ofcontrol deficiencies, that adversely affects the entity's ability to administer a Federal program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a Federal program that is more than inconsequential will not be prevented or detected by the entity's internal control. 
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected by the entity's internal control. 
Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. 
This report is intended solely for the information and use of the finance committee, management, members ofthe Colquitt County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. 
Respectfully submitted, 
~l~~to~~s' s State Auditor 
RWH:gp 2007SA-10 
 
 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 COLQUITT COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2007 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-6351-05-01 FS-6351-06-01 
 
Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Finding Control Number: FS-6351-06-01 
 
Management has provided additional training for the school bookkeepers using the established guide and procedures manual. Management has converted their school activity account software in fiscal year 2008 to allow bank reconciliations and general ledger review ofschool activity accounts at the Central Office on a monthly basis. Management is in the process of reviewing each school's job duties and assignments of personnel as well as compensating controls that are in place with the goal of having the proper separation of duties and compensating controls in place by the beginning of fiscal year 2009. 
 
PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
No matters were reported. 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2007 
 
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 unqualified. 
 
2. Significant Deficiencies in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Colquitt County Board of Education disclosed financial statement significant deficiencies related to the following control categories. 
 
Cash and Cash Equivalents Revenues/Receivables/Receipts 
 
Expenditures/Liabilities/Disbursements Financial Reporting 
 
None of the significant deficiencies described above are considered to be material weaknesses. 
 
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. Significant Deficiencies in Internal Control Over Major Programs The audit report for the Colquitt County Board ofEducation did not disclose any significant deficiencies 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 .510(a) ofOMB Circular A-133 The Colquitt County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133. 
 
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food Services - School Breakfast Program 10.555 Food Services - National School Lunch Program 84.011 Migrant Education Program 
 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $324,832.66. 
 
9. Low Risk Auditee The Colquitt County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. 
 
- 1- 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2007 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6351-07-01 
 
Condition: 
 
This is a repeat finding (FS-6351-04-01, FS-6351-05-01, and FS-6351-0601) from the years ended June 30, 2004, June 30, 2005, and June 30, 2006, respectively. The accounting procedures of the School District were insufficient to provide for adequate internal controls over the school activity accounts. 
 
Criteria: 
 
The School District's management is responsible for designing and maintaining internal controls that provide proper separation of duties and reasonable assurance that transactions are processed according to established procedures. 
 
Questioned Cost: NIA 
 
Information: 
 
Cash and Cash Equivalents  The bank reconciliation function was not separated from the record keeping and voucher payment functions.  The bank reconciliation did not include evidence of approval by someone other than the person performing the bank reconciliation.  Six of sixteen bank accounts were not accurately reconciled to the general ledger. 
 
Revenues/Receivables/Receipts  Deposit preparation was not separated from the record keeping and cash custody functions.  Based on a review of ten items, the following deficiencies were noted: 1) Five receipts were not supported by adequate documentation, and 2) three receipts could not be traced to the general ledger. 
 
-2 - 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2007 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
CASH AND CASH EQUIVALENTS REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Accounting Procedures over School Activity Accounts Significant Deficiency Finding Control Number: FS-6351-07-01 
 
Expenditures/Liabilities/Disbursements  The check writing function was not separated from the record keeping or processing of signed checks.  Based on a review of ten items, the following deficiencies were noted: 1) Two vouchers did not have any supporting documentation, 2) three vouchers included sales tax, and 3) three vouchers could not be traced to the general ledger. 
 
Cause: 
 
The School District has not assigned responsibilities to achieve appropriate separation of duties nor utilized management oversight of the incompatible activities to properly safeguard assets. These deficiencies were a result of management's failure to ensure that internal controls were established, implemented and functioning at the school level. 
 
Effect: 
 
Errors and/or irregularities may not be detected in a timely manner. 
 
Recommendation: 
 
The School District should implement procedures to ensure that the key accounting functions of custody, record keeping and authorization are separated and/or utilize management oversight of these incompatible activities. Additionally, management should revise and monitor controls to provide reasonable assurance that transactions are processed according to established procedures. 
 
FINANCIAL REPORTING Inadequate Controls over Financial Reporting Significant Deficiency Finding Control Number: FS-63 51-07-02 
 
Condition: 
 
The School District's controls did not identify all significant accounting adjustments. 
 
-3- 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2007 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINANCIAL REPORTING Inadequate Controls over Financial Reporting Significant Deficiency Finding Control Number: FS-63 51-07-02 
 
Criteria: 
 
Management is responsible for having adequate controls over the financial reporting process, which not only includes proper recording oftransactions to the general ledger, but extends to accurate preparation and presentation ofthe financial statements, including note disclosures. 
 
Questioned Cost: NIA 
 
Information: 
 
The Governmental Accounting Standards Board (GASB) Statement 34 reporting model requires the presentation ofboth fund level and entity-wide level statements in the School District's financial statements. During the audit, correcting entries were proposed by the auditor and accepted by the client to properly present the entity's financial statements. 
 
Cause: 
 
The School District's control procedures failed to capture all liabilities in the financial statements presented for audit. 
 
Effect: 
 
The financial statements were not properly prepared in accordance with generally accepted accounting principles. 
 
Recommendation: 
 
The School District should strengthen internal controls over the financial statement reporting process to ensure that activity is properly recorded in the general ledger; to verify that financial statements properly reflect activity reported in the general ledger; and to include a monitoring process to evaluate the accuracy of the financial statements presented for audit. 
 
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
No matters were reported. 
 
-4- 
 
 SECTIONV MANAGEMENT'S RESPONSES 
 
 COLQUITT COUNTY BOARD OF EDUCATION SCHEDULE OF MANAGEMENT'S RESPONSES 
YEAR ENDED JUNE 30, 2007 
Finding Control Number: FS-6351-07-01 
We concur with this finding. Management has provided additional training for the schools bookkeepers using the established guide and procedures manual. Management will continue to provide additional training. Management converted student activity account software in fiscal year 2008 and brought the bank reconciliation function to Central Office eliminating problems with separation of duties for Cash and Cash Equivalents. Management is working to ensure proper separation of duties with compensating controls and more management oversight for Revenues/ Receivables/Receipts and Expenditures/Liabilities/Disbursements to eliminate this finding by fiscal year 2009. 
Finding Control Number: FS-6351-07-02 
We concur with this finding. Procedures will be implemented to ensure that internal controls over the School District financial statement reporting process is properly recorded and kept at accepted accounting standards (GASB 34). Management had sent out an RFP for professional consultant services to provide training and financial statements for fiscal year 2008. 
Contact Person: Alana Bolin, Comptroller Phone: (229) 890-6224 Fax: (229) 890-6246 E-mail Address: abolin@colquitt.kl2.ga.us