::;A '-\9c~>" ' 'R\ f;il. ~-p,' ., . . . " ' ,, , . ~.,... ~ J', .., ,, " " " ., ,, " , " r -' "" .' /. ~ '. ,\ .' ., ' ,, '. " ., -, ,, k~;l~~~ <,' . I. ':r , , ......... {A " ", ,~.~ "" >'., " " , ~.... ~. ':'STATE OF GEORGIA' ~," ", ", "-:,., " ." "DEPARTM'ENT'OF AUDITS' AND ACCO,lINTS " ,, , , ,, ..', <, ," ..\' ) '" , .~.: " ~ ~. ......... ., ., ~. \ I ~ '. ,. , , .... ' '., "" " , ,0 o, .. ' ~' " .' ", 0, ,>, .o ' . "", '.,,', ';..- ~ ',. .~ '. '. ", " .' , , " " ' ;... " , ~ . _ ' ... ~I " , " .,' ,1 ,. . ,, ::, ... " , " ,0 ," ," " ".' , " ,' " ," " ,, '. t ~ .~ ,1 .' " ,, ~. :. " ,,, o " " 0, .' , " .0 ," ." .' " ", " "' "' , ' ,, " , ,"J ", " -'<", ,, . ," , r "' ," ., ' /" '. .," , " ,cOLuMBIA COUNTY BOARD' OF' EDUCAnON '-' " ~ t' ' . ',)': " -' ,, , " " , . ., .," ," . APPLING, GEORGIA " " , , '0' ,, , .' " , ," \' REPORT ON'AUDIT, l' , ' .,': ," ,OF THE FINANCIAL STATEMENTS' '0 ' ,. ,. " FOR .THE FISCAL YEAR' ENDED JUNE '30: 2002 " "'~ "; ,' . " " , r ", ," ., ' .;.. J '. ." " , ,, . ,I' , " ," , ", . ", " ,. ..."'..,. " " " --, \ , ", " ,(R. ussell W. .,Hlnton ",'" State 'Aud!t~r " " ., . " , '.' ." , , ,', ., ;., , ,", ) ,\ ,I " I, ., ' , '" " " " .,~, " " " ," , , \' " ., .' o " " . . .; " ,, " ;. ", .,, " , "', ,I " " ,, , '. \. COLUMBIA COUNTY BOJ\RD OF EDUC AnON - TA~LE OF CON rrNTS - SECrJON I FINANCIAL INDI PENDENT AUDIl OR'S COMBINED REPORT ON BASIC FINANCIAL STATEMFNTS AND SUPPLEMENTARY INFORMATION - ~CHEDULE OF EXPENDITURES or fl:DfRAL A WARDS REQUIRFD SUPPLEMENTARY INFORMATION MANAGEMENTS DISCUSSION AND ANALYSIS EXIIIIlII S BASIC HNANCIAL STA I LMFNTS DlSTRIC1-WIDE rINJ\NCIAL STA rEMEN'l S A STATEMF-N 101' NET ASSETS 3 B STATEMENT OF ACTIVITIf-.S 4 FUND FINANCIAL STATEMENTS C BALJ\NC[ SHEET GOVFRNMENTAL fUNDS 6 D RECONCILIA nON OF THE GOVERNMEN I AL FUNDS BJ\LANCE SHFET 10 THE STATEMENT OF NET Assns 7 I. STATEMEN I OF REVl:NUFS. EXPENDITURES AND CIIANGES IN FUND BALANCES GOVERNMENTALF-UNDS 8 F- RECONCILIA liON OF I HE GOVERNMEN I AL fUNDS Sl An.MENT OF REVENUES, EXPENDITURES AND CHANGES IN fUND BALANCES TO THE STJ\TEMENT OF ACTIVITIES 9 G STA rEMENT OF NET Assns PROPRIETARY F-UNDS 10 H STA1 EMENT Of REVENues. EXPENSfS AND CHANGES IN Nl: I ASSEl S PROPRIETARY FUNDS II Sl A II:Ml:NT OF CASH FLOWS PROPRIETARY FUNDS 12 J STATEMFN r or rIDUCIJ\RY NET ASSETS FIDUCIARY FUNDS 13 "- NOTES 10 rHE BASIC FINANCIAL STATEMENTS 14 COLUMBIA COUNTY BOARD OF EDUCATION - TABLE Of CONTENTS- SIoCTION I FINANCIAL SCHr.DULES REQUIRED SUPPLEMENTARY INfORMATION SCHEDULE Of REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL GENERAL FUND 33 SUPPLEMENTARY INFORMATION 2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 34 3 SCHEDULE OF STATE REVENUE 36 4 SCHEDULE OF APPROVI:.D LOCAL OPTION SALES TAX PROJECTS 38 ALLOTMENTS AND I:.XPI:.NDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 5 BY PROGRAM 40 6 BY SITE 41 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON IN fER!l.AL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDII OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WI fH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE 10 EACII MAJOR PROGRAM AND ON INTER!l.AL CONTROL OVI:.R COMPLIANCE IN ACCORDANCE WlTIJ OMB CIRCULAR A-133 SECTION III AUDITEI:.'S RESI'ONSf 10 PRJOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS COLUMHlA COUNTY BOARD OF eDUCAnON - TABLe or CONTEN I S - SEC nON IV FINDINGS AND QUEsnONfD COSTS SCIIEDULE OF FINDINGS AND QUESTIONED COS rs SECTION I FINANCIAL {l'''11 I W. HI'/ I 0;.1 STATE mOITon (4(j.!) r;SG 21'" DEPARTMENT OF AUDITS AND ACCOUNTS 2')4 \V..l~hJng:ton SlrcC:l, S y,.' ~Ultc.: 21..t AtlJnl.J (Jt:'(lrgl.1 3011l-l'H-I)() May 16,2003 Honorable Sonny Perdue. Governor Members of the General Assembly Member; of the Stale Board of EducatIOn and Supenntendent and Members ofthc Columbia County Board of Education INDEPENDEN r AUDITOR'S COMBINED REPORT ON BA,.SIC FTNANCIAL STATEMEI\TS AND SUPPLEMENTARY INFORMA liON - SCHEDULE O~ EXPE"JDITl TRES OF FEDERAL AWARDS Ladle~ and Gentlemen We have audIted the accompanYing financIal statements of the governmental activItIes. each major fund. and the aggregate remaining fund InfonnatlOn (ExhIbIts A through K) ofthe ColumbIa County Board of EducatIon. a~ of and for thc year ended Junc 30, 2002. whIch collectively compnse the Board'., ba~lc finanCIal statements as II~ted In the table of conlent~ These financial statements are the re~ponslbility of the ColumbIa County Board of EducatIOn's management Our responsIbility IS to cxprc~s opinIons on these financIal statements bascd on our audit We conductcd our audit In accordance wIth audIting standards generally acccpted In the United Stales ofAmerica and the standards applicable to financIal audits contained In Governmcnt Auditing Standards.lssucd by the Comptroller General of the United States Those standards reqUIre that we plan and perfonn the audit to obtaI n reasonable assurance about whether the financIal statements are free of matenal mIsstatement An audit Includes examining. on a test baSIS. eVidence supporting the amounts and dl~clo~ures In the finanelal statements An audIt also Includes assessing the accountmg pnnclples used and SIgnificant estimates made by management. as well as evaluating the overall finanCial statemcnt pre~entatlon We believe that our audit proVides a reasonable basIS for our opinIons. In our opinIOn. the finanCIal statements referred to abovc present fmrly. In all matenal respects. the respectIve pOSItIon ofthe governmental actIVItIes, each major lund. and the aggregate remaining fund InfornJatlon of the Columbia County Board of EducatIon. a~ 01 June 30. 2002. and the respective changes m finanCial pO>ItlOn and cash fiows thereof for the year then ended In conforrnIty With accounting pnnclples gencrally acceptcd In the United Statcs of Amenca 2002-34ARL-II As discussed m Notc 2 to thc basic financial statements. dunng fiscal year 2002, the Board consohdatcd Its mdlvldual school actiVity accounts for inclUSIOn m the baSIC financial statements Thl~ change IS m accordance With generally accepted accountmg pnnclplcs As descnbcd m Notc 2. thc Columbia County Board of Education has Implemented a new financial reportmg model as requIrcd by proVisions of Governmental Accountmg Standards Board Statement No. 34. Balle IlI/anclal Statements - alld Afanagement'~ DISCUSSUl1l and Analyns - for State and Local Government~. as of Junc 30, 2002 In accordance With Government Audltmg Standards, we havc also Issued our report dated May 16. 2003. on our conSideration of the Columbia County Board of Education's mternal control over financial reportmg and our tests of ItS comphance WIth certam prOVIsions of laws, regulatIOns, contracts and grants That report IS an mtegral part of an audit perfonned m accordance With Government Audlllng Standards and should be read in conjunction WIth thiS report m considering thc re~ults of our audit Management's Discussion and AnalySIS and the Schedule of Revenues, Expenditures and Changes m Fund Balances - Budget and Actual. as presented on pages I through 'I. and page 33 respectively. are not a reqUired part of the baSIC finanCial statcments but are supplementary mfonnatlOn reqUired by the Govcrnmental Accountmg Standards Board We have applied certain limited procedures.....hlch conSisted pnnclpally of mqulrles of managemcnt regardmg the method~ of measurement and pre~ntatlOn of the required supplementary mfonnatlOn However, we did not audit the mformatlon and express no opmlOn on It. Our audit wa~ conducted for the purpose of fonnmg opmlOns on the financial statements that collectively compnse the Columbia County Board of Education's basiC financial statements The accompanymg supplementary mfonnatlOn which con~lst of Schedules 2 through 6, which mcludes the Schedule of I::xpendltures of Federal Awards as reqUired by U.S Office of Management and Budgct CIrcular A-133. Audits olStates. Local Governments. and Non-Profit OrgamzatlOllS. are not a reqUired part of the basiC financial statements. Such mfonnatlon has been subjected to the audltmg procedures applied m the audit of the ba~lc financial statements, and m our opmlOn. IS falTly ~tated. m all matena\ respects, m relatIOn to the basiC finanCial statements taken as a whole. A copy of thiS rcport has been filed as a pennanent record m the office of the State Auditor and madc avallablc to thc press of the State, as proVided for by OffiCial Code of Georgia Annotated sectIOn 506-24 Respectfully submitted, RWHgp 2002-34ARL-11 State Auditor COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 The dlscu~slon and analysIs of ColumbIa County School Dlstnct's financial perfonnance provides an overall review of the School Dlstnct's financial actIVIties for the fiscal year endcd June 30. 2002 Thc Intcnt of thIs diSCUSSIOn and analysIs IS to look at the School Dlstnct's financial perfonnance as a whole, readers should also review the notes to the basiC finanCial statements and financial statements to enhance their understandIng of the School Dlstnct's financial perfonnance Financial Highlights Key financial highlights for 2002 are as follows Thc school system Issued $16 millIon In general obligatIOn bonds in 2002 to build one elementary school. one middle school. high school classroom addlllOns, and roof replacements The school system refinanced the 1992 general oblIgatIOn bonds for a net present value saVIngs of approximately $300.000. The school system Implemented a $2 millIon teacher and administrative salary Increa~e for 2002 based on a salary study In the spnng of 200 I lbe school system upgraded sevcral admmlstratlve poSItiOns and mcreased the local teachcr supplcment by $1.000. The School Systcm mcreased the teacher supplement in order to be more competitive for teachers In the local market The school system received additIOnal fundmg from the state for three new state mstructlOnal grants for a total of $875,000 Net assets Increased $11.3 million. whIch represents a \3% incrcase from 2001 The total mcrease was due to governmcntal actiVities SInCC the board has no busmess-type activIties General revenues accountcd for $56 5 millIon m revenue or 40% of all revenues Program speCific revenues m thc fonn of charges for services, grants and contnbutlons accounted for $851 mtliion or 60% of total revenues 01'$1416 millIon lbe Board had $\30 3 millIon m expenses related to governmental actiVities, only $85.1 million of these expenses were offset by program specific charges, grants or contnbutlons General revenue (pnmanly property and sales taxes) of $565 mtliion was adequatc to proVide for thesc programs Among major funds, the general fund had $128.8 mtliion m revenues and $1244 millIon In expenditures The gencral fund balance mereased to $31 7 million from $27 6 millIon Overview of the Financial Statements ThiS annual report consists of a sene~ of finanCial statcments and notcs to those statements Thcsc statement~ are organized so thc reader can understand Columbia County School System ill> a finanCial whole, or as an entire operating entity The fiscal year ended June 30, 2002 IS the first year of Implcmcntation of GASB 34 Therefore, pnor-year data IS not available but Will be provldcd In sub~equent years COLUMBIA COUNTY BOARD OF EDlICATION MANAGEMENT'S D1SCllSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Table 1 surnmanzes the major fcatures of thc dlstnct's financial statements, mcludmg the portIOn of the dlstnct's actiVities they covcr and the types of mformatlon they contam Table I Major Features of the DIStrIct-Wide and Fund FmanclBl Statements DI~trlct-v.lde ~tatcmen[ .. lund" manclal Statcmt..nlfi Government fund .. Propnetar) r un prepared financial statement~ followmg GASB Statement 34. cost of ~ervlcc comparisons to fi~al year 2001 are not available Tablc 4 Govcrnmcntal Activities Iotal Cost of Services fiscal Year 2002 Nct Cost of Scrvlce~ Fiscal Year 2002 In~trucllOn Support Sen Ices Pupil Sen'lces Impron:ment of Instruclional Sen Ice~ Lducalional Media Services General Administration School Admlnl~tratlon Bu~me~s AdmInlstralion Malntenancc and Operation of Plant Studcnt Transportallon Scrvlces Central Support Services Other Support Servlee~ OperatIOns of Non-InstructIOnal Services Community Services Food Scrvlce~ Inten:~t on Short-Term and Long-l crm Debt $ 86.859,649 2.931.457 2,704,997 3.048.368 1.571.562 7.259,226 1.214,225 7.865.616 5.038.558 720.927 188.010 2.234.083 6.102.040 2.609.711 $ 26.292.034 1,869,491 1.765,848 1.319.617 -489.997 4.186,951 1,193.098 2.841.775 2.547.324 719.992 181,122 56.104 82.292 2.609,711 Total Expenses $130.348,42,2 $ 45.175,32~ In~truetlOnal expenses Include aclivltles directly dealing v, Ith the teachmg of pupils and thc interaction bctween teacher and pupil Pupil Services are actIVIties deSigned to assess and Improve the well being of students and III ~upplcment the teaching process. Improvement of instructIOn are aetlvllIes which are deSigned prImarily for lli>SlstIng instructIOnal stall In planning. dcvelopIng and evaluating the proccss of providing challenging learnmg expcnence~ for students. Educallonal media I~ dlrcctIng. managing and operatmg educational medIa ~enters COLliMBIA COUNTY BOARD OF EDllCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Gencral admmlstratlon establishes and admmlster; policy for operatmg thc local school system School admmlstratlon mcludcs pnnclpals. asSiStant pnncipals and clencal staff who admmlster the school operations Bu~mess admlOistratlOn mcludes the financial and warehousc operations of the school dlslnct Mamtenancc and opcratlon of plant activities involvc keepmg thc school grounds. bUlldmgs and equipment m an effective workmg condition Student transportatIOn mcludcs activities mvolved with the conveyance of students to and from ~chooI. a~ well as to and from school actiVities, as proVided by state law Central support mcludes personnel servlccs, strategic plannmg and public relations actiVIties Other support ~ervlces mclude all othcr support services Commumty servlccs are student actiVity accounts used 10 collect money from students for \'3nou~ fundralsers for the school The procccds are spent on media center matenals. mstrucllonal supphes and other school needed ~upphcs rood services prepares and ~rve~ breakfast, lunch and snacks to the students of the school system Interest mvolves the transactIOns asSOCIated with the payment of Interest related to the school systcm's outstandmg bonds Although program rcvenues make up a majonty of the revenue. the School Dlslnct IS still depcndent upon ta" revenues for governmental actiVities Over 30 % of mstructlonal activities arc supported through taxes and other general revenues. for all governmental activitIes general revenuc support IS 43 % The School District's Funds The School Dlstnct's governmental funds are accounted for usmg the modified accrual basiS of accountmg All governmental funds had total revenues of $141,837.885 and expenditures of $149.013,154 The net change m fund balance for the year was slgmficant m the gcneral fund and the capital projects funds, which had an mcrcase of $4,183.959 and $10,478,463, respecllvely The general fund operations budget was antlclpatmg an mcrease of $2 mllhon The remammg mcrease was due to under expendltun:~ m vanous functIOns The mcrease m capital projects was due to the Issuance of $16 mIlhon m bonds VII COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30. 2002 General Fund Budgeting Highlights The School District's budgct I' prepared accordIng to Georgia law The most slgmficant budgeted fund I~ the General Fund The General Fund consIsts of the general operations, special revenue grants and school nutntion program Dunng 2002, the Board amended Its General Fund budget numerous times. which resulted In IncreasIng revenue budget by $3.4 millIon or 2 8% and IncreasIng expenditure hudget by $1 6 millIon or I 3% The Increase in the revenue budget IS due to amendIng the budget for the tinal tax digest and federal and state grants The origInal revcnue and expenditure budgets only refleci the antIcIpated fundIng for federal and state grants and arc amended to reflect the final award The School Dlstnct uses site-based budgetIng and the budgetIng systems are deSigned to tightly control total site budgets but to proVide fleXibilIty for SltC management This IS the first year the School Dlstnct Included the student activity funds in the finanCial statements The majority of the vanances between the final budget and actual expenditures In 2002 are due to the student actIvIty funds of $3 I mIllIon ThIs explaInS the major difference, In final budget for revenue ($44 mtliion Increase) and ell.pendltures ($1 7 mIllIon Increase) vs the actual amounts for General Fund The school system also budgeted a surplus of $2 millIon In General Fund Capital Assets At the end of the fiscal year 2002, the School District had $106,402.375 Invested in land. construction In progress, bUildIngs, equipment and buses SInce thIS IS the first year the Board has been reqUired to prepare finanCial statements follOWIng GASB Statement 34, capital asset comparisons to fiscal year 2001 are not available Table 5 Capital Assets (Net of Depreciation) Governmental Actlvltle~ FIscal Year 2002 Land Construction In Progress BUildings and BUildIng Improvements EqUipment Land Improvements $ 3,429,182 9.604.852 82,483.672 \ 0.840,46\ 44,208 Totdl $106.402,3 75 VIII COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 Overall capital assets mcreased $9 million from fiscal year 200 I to fiscal year 2002 Increases m capital assets (bUlldmgs and bUlldmg Improvements. eqUipment and land improvements) were offset by depreCIation expense for the year Most of the equIpment purcha~ed dunng fiscal year 2002 was for classroom computers for the schools and departments The mcrea~e m land Improvements was playground eqUipment for an elemcntary school The school ~ystem added $3 mIllion m classroom addlllons to three c1ementary schools In 2002 The majority of the mcrease m con~tructlOn m progres~ was for a ncw middle school. a new elementary school and c1a~sroom addItions for three hIgh schools. All of these projects were completed m 2003 Debt At June 30. 2002 the School Dlstnct had $56 million m general obligation bond~ outstandmg with $3 9 mIllion due wlthm one year The voters of Columbia County approved the Issuance of $16 mllhon of general obhgatlon bonds on March 20. 200 I The bond proceeds were used to bUild one new mIddle school, one new elementary school, hIgh school classroom addItIOns, replacing school roofs and purchasmg technology equIpment The School Dlstnct also refinanced the 1992 general obhgatlOn bonds for $6.1 55,000 for a net prescnt value savmgs of $300.000 The school sy~tem currently has an asSIgned ratmg of "AA" from Standard & Poor's The voters of ColumbIa County approved on March 18. 1997 the Iir~t one percent salcs tax for educatIOnal purposes for live yean, (July. 1997 - June. 2002) On March 20. 200 I the voters approved the second one perccnt sales tax for education purposes for another five years (July. 2002 - June. 2007) The School Board no longer leVIes a debt mIllage. mstead the proceeds from the sale~ tax IS used to pay the debt Table 6 summarlzcs general operation bonds and compen~ated ab~ences outstandmg Table 6 Outstanding Debt and Compensated Absences at June 30 FIscal Year 2001 Fiscal Year 2002 Compen~ated Absences $ 201,771 $ 264.823 General Obhgatlon Bonds 43.540.000 56.220.000 Total $ 43.74L771 $ 56.484,8.23. IX COLUMBIA COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 The Incrcase In compensated absenccs was due to a change In board policy, which Increased the number of vacatIOn days an employee can earn In one year At June 30. 2002. the School Dlstnct's overall legal dcbt margIn was $170,395.641. Current Financial Issues and Concerns The ColumbIa County School Dlstnct is finanCially stablc The School Dlstnct's current operatIng millage IS 17 18, which produces approximately $2.2 mIllion per mill The tax digest has contInued to grow at an average rate of 6 8% over the last five years The reSldcntIal communIty IS contInuIng to grow IncreasIng the tax dlge~t at a stcady ratc The ColumbIa County Tax CommlsslOncr's office collects laAes for the School Dlstnct and the average collcctlon rate has been 97% over the la~t fivc years The School Dlstnct doe~ not antlclpatc any SignIficant changes In the local tax digest In the Immcdlate future The School Dlstnct contInues to grow with an average Increase of 222 students per ycar over thc last five years 1 hc School Distnct plans to construct additIonal schools In the ncxt several years to accommodate the growth and reduce ponable elassrooms at vanou~ schools Thc School Dlstnct plans to fund the addlllonal capital outlays with the one percent local sales tax revenue and state capital outlay grants The Quality BasIC EducatIOn Act was enacted Into law by thc 1985 ~sslon of the GeorgIa General Assembly The Act set out the provIsions for educatIOnal fundIng for grade~ kIndergarten through twelve In the State of Georgia The fundIng IS based on ~tudcnt count~ WIth the expectatIOn that local ~chool dlstncts fund part of the cost with local tax mOnIes The School Dlstnct receives approximately 64% of thc reqUIred funds for general operatlOn~ from the State The School Dlstnct .... 111 recclve $1.686,000 less in fundIng for 2003 and $1,959.234 less tor 2004 from the State The reductIons In State fundIng are due to the economIc do....ntum In the State and It IS unelear how long the fundIng reductions Will last Currently the School Dlstnct ha~ adequatc rcserves for 2003 and 2004 to handle the reductIOn In fundIng from the Statc Contacting the Board's Financial Management ThiS finanCIal report IS deSigned to proVide our CItIzens, taxpayers, Investors and credltor~ wah a general overview of the School Dlstnct's finances and to show the School Dlstnct's accountability for the money It receIves. If you have questions about thiS report or need additIOnal finanCial InfonnatIon contact Pat Sullivan. Controller at Columbia County Board of EducatIon, 6426 Pollards Pond Road, Appling, GeorgIa 30802 or email at psullIvan@ccboc net COLUMBIA COUNtY BOARD OF I DUCATION COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS JUNE 30 2002 ASSETS Cash and Cash EqUlva\e'nls Investments Accounts ReceIvable, Net Taxes State Government Federal Government Other PrepaKlltems Inventones Caprtal Assets Land Construction In Progress Land Improvements BUildings and BUilding Improvements EqUipment Less Accumulated Depr8CIatlon Total Assets LIABILITIES Accounts Payable Selanes Peyable Expired Grant Balances Payable Contracts Payable Retalnages Payable Deposrts and Deferred Revenues Lon9-Term LtablhlJes Due Within One Year Due In More Than One Year Total Llabllrtles NET ASSETS Invested In Caprtal Assets, Net of Related Debt Restncted for Bus Replacement Continuation of Federal Programs Debt Service Caprtal Pro)8C1S Unrestncted Total Net Assets Totaillablhties and Net Assets The notes to the baSIC finanCIal statements are an Integral part of thiS statement - 3- EXHIBIT "A" GOVERNMENTAL ACTIVITIES $ 8,296 832 03 45,981 88963 2,880,329 B3 1195209229 476 18391 65,512 10 61 60B 70 88 200 07 3,429 18200 9,604,852 22 46,534 34 111,780,75522 22 294,72924 ~0,753,678 16 $ 176,185,02342 $ 5,90306651 11,76208036 1795 1 946,75900 683,35383 11102299 3,945,000 00 52,539,823 41 $ 76,891 ,12405 $ 58,597201 30 136 897 76 1,985,353 94 333731 94 8,672 406 34 29,568.30809 $ 99.293.899 37 COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30 2002 EXPENSES CHARGES FOR SERVICES GOVERNMENTAL ACTIVITIES Instruclton Support ServiceS Pupil ServiceS Improvement of Instructional Services Educational Media Services General Administration School Administration Busrness Administration Maintenance and Operation of Plant Student Transportation SelVlC6s Central Support Sennces Other Support ServIces Operations of Non-Instructional Services Community Services Food Services Interest on Short-Term and Long-Term Debt $ 86,859,649 24 $ 2,931,456 46 2,704,996 67 3,048,367 77 1,571,562 00 7,259,22639 1,214,22495 7,865,61601 5,038,55854 720,92743 188,01009 2234,08355 6,102,039 96 2,609,71060 121,57484 275709 60 5,558 50 2,148,03353 3,426,744 68 Total Governmental Acltvllles $ 130,348,42966 $ 5,977,621 15 General Revenues Taxes Property Taxes For Maintenance and Operations For Debt Services Railroad Cars Sales Taxes SpeCial Purpose Local Option Sales Tax For Debt Sennces For Capital Projects Intangible Recording Tax Real Estate Grants and ContnbutlOns not Restncted to SpeCIfic Programs Investment Earnings Miscellaneous Total General Revenues Change In Net Assets Net Assets - Beginning of Year Net Assets - End of Year The notes to the baSIC financial statements are an Integral part of thiS statement - 4- EXHIBIT "B" PROGRAM REVENUES OPERATING CAPITAL GRANTS AND GRANTS AND CONTRIBUTIONS CONTRIBUTIONS NET (EXPENSES) REVENUES AND CHANGES IN NET ASSETS $ 57,98944569 $ 1056,18389 698,97248 1,721,02670 1,782,944 36 3,034,02699 4,972,700 96 1,723,589 94 673938 1 13268 2,424,934 13 $ 75,413,697 20 $ 2,456,594 21 $ 3,781 07 240,17601 7,72362 2,90594 38,24821 21,12733 45,58164 767,644 95 93583 14839 28,81352 168,06857 3,781,74929 $ -26,292,034 50 -1,869 491 50 -1,765,848 18 -1,319,61745 489,99790 -4,186,951 19 -1 193,097 62 -2841,77491 -2,547,32365 -719,99160 -181,12232 -56 10382 -82,29258 -2,609,71060 -45 175,36202 $ 35,803 028 66 -341 14 12,384 38 5,753,11423 4,276,568 03 1,544,983 02 261,994 66 6612,07216 1,214,888 19 1,017,550 11 $ 56,496,242 30 $ 11 320,88028 87,973,01909 $ 99,293,899 37 -5- COLUMBIA COUNTY BOARD OF EDUCATION BAlANCE SHEET GOVERNMENTAL FUNDS JUNE 3Q 2QQ2 EXHIBIT "C" ~ Cash and Cash EqUIvalents Investments Accounts Receivable Net Taxes State Govemment Federal Government Other Prepaid Items Invenlones Tetal Assets LIABILITIES AND FUND BAlANCES LIABILITIES Accounts Payable salanes Payable Expired Grant Balances Payable Contracts Payable Retatnages Payable Deposits and Deferred Revenue Total uablhttes FUND BAlANCES ReseNed for Bus Replacement Contmuatlon of Federal Programs Debt servICe Inventones Capllal Projects Unreserved UndaSl9naied Reported m General Fund Tolal Fund Balances Totaillabdmes and Fund Batances GENERAl FUND DISTRICT WIDE CAPITAl PROJECTS FUND DEBT SERVICE FUND TOTAl S 4,292730 13 $ 3334,47256 S 281 81948 $ 7,909 Q22 17 33234,456 21 11,878 Q26 92 4936979 45,16185292 1 774,04ll68 945931200 476183 91 85 512 lQ 21686 7Q 68,2QQ Q7 1,81122728 2,492780 29 13518 3 585.4Q3 14 11 952,Q92 29 476,18391 65512 lQ 21 686 7Q 68,200 Q7 $ 49,392,1218Q $ 19,516,507Q5 $ 331,32445 $ 69,239,9533Q $ 5,754 068 82 11,762 Q8Q 36 17 95 S 111,Q2299 1,946 759 00 683 353 83 $ 17,627,190 12 $ 2,83Q, 112 83 S 5754,06882 11,762,Q8O 36 1795 1 946,75900 68335383 111 ,Q22 99 $ 2Q,257,302 95 $ 136 897 76 $ 136,89776 1917,15387 1,917153 87 $ 331 32445 331,32445 68 200 Q7 68,200 Q7 $ 16886,394 22 16886,394 22 29,642,679 98 29,642,6799B $ 31,764,931 68 $ 16,886,394 22 $ 331.32445 $ 48,982,650 35 $ 49.392,12180 $ 19.516,507 Q5 $ 331,32445 $ 69,239,95330 The notes to the baSiC finanoal statements are an Integral part of thiS statement 6 COLUMBIA COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS JUNE 30 2002 EXHIBIT "0" Total Fund Balances Governmental Funds (Exhibit "e") Amounts reported for Governmental ActlVlttes In the Statement of Net Assets are different because Capital Assets used In Governmental Aetlvlbes 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 Caprtal Assets Some of the School DlStnd's property lax revenues WIll be collected after year end but are not avaIlable soon enough to pay for the ament penod's expendllures An Internal servlce fund IS used by the School Dlstnct's management to account for the wo,.xers compensatJon fisk finanCing related actlYlltes The assets and liabilities of the Internal service fund are reported wrth governmental actIVIties Long-Term liablhttes, including bonds payable are not due and payable In the current penod and therefore are not reported as liabilities In the funds Long-Tenn Laabilltles at year-end consist of Bonds and Nolos Payable Compensated Absences Tolal Long-Term L"'b'lrbes $ 48,982650 35 S 3429,18200 9604,85222 46,534 34 111 780,75522 22294,72924 -40,753,67816 106,40237486 -705,07331 1 098770 88 S -56 220 000 00 -264,82341 -56,484 823 41 Net Assets of Govemmental AdMttes (ExhibIt "A") S 99,293,899 37 The notes to the ba~ finanaal statements are an Integral part of this statement -7- COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED JUNE 30 2002 EXHIBIT "E'" REVENUES PJOPOrtYTaxes SaleS Taxes Slate Funds FederaJ Funels Charges for 5efv1c:es InveStment EarT'l:lllQs MIscellaneous Total Revenues EXPENDITURES Cumont InstructJon Support SeMCOS Pupil ServICes Improvement of Instructk:>nal SeMces Educabonal Media SeIVlC8S General Admllllstrabon School AdminIStration BUSlOBSS AdrT'llnlStrabon Mamtenance and OperatIon of Plant Slullent Transpol1abOn ServICes Central Support ServIces Other Support servIceS Communrty 5ervIces Food Servtces Operation CaplIaI Oullay Debt SeIVlCeS Call PremllJt11 on Bonds PrinCIpal Interest 70tal Expendrtures Excess 01 Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Acaued Interest on Bonds SOld Proceeds of Retundmg Bonds Par Value Proceed& 01 Long-Term Debt TrBl'l5fera In TllIl1sfers Out Total Other Fmanong Sources (Uses) Net Change In Fund Balaoc:es Fund Balances - Begulntng GENERAL FUND DISTRICTWIDE CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTAL $ 35866 8043 45 $ 1 04571 $ 3586786916 1,606 977 66 $ 427656603 5,75311423 11 836 659 94 77,52517647 2601,13629 60126 312 76 5626088 66 5626.086 66 570191155 570191155 768,11971 35394018 259230 1.144.652 19 1.263,43930 70.93189 1.334,371 19 $ 128.778,556 62 $ 7.302,57639 $ 5.756.75224 $ 141,837,885 45 $ 804 295 757 98 $ 47494300 $ 804 770 700 98 2945.58700 2 n9.151 97 2987,250 76 1 5'2,334 06 7 206 228 14 94591342 7,85207067 448109807 732 894 32 187.nl 13 2,260 21353 8289,37430 121 50756 $ 9.14200 1171735395 115.43781 2945.58700 2.n9 151 97 2.987.250 78 1.51233406 7 206.228 14 1.182,858 59 7,681,21287 448109807 732 894 32 187721 13 2260.21353 6289 374 30 1171735395 11560000 9,47500000 2,538.574804 115600 00 9475000 00 2,538,574804 $ 124,445.59557 $ 12.322,94851 S 12.244,61245 $ 149,013.154 53 $ 4.332,961 25 $ -5.020.370 12 $ -6.487.86021 $ -7.175.26908 $ 44,464 24 S 44 464.24 $ 18 000.000 00 1800000 $ -149.00231 -519.16705 615500000 51916705 615500000 1800000000 53716705 -668 16936 $ -149.00231 $ 15,498.83295 $ 6,718.63129 $ 22.068,461 93 $ 4 183,958 94 $ 10,47646283 $ 230771 08 $ 1489319265 27,560.97274 6.407.931 39 100.553 37 34.089,45750 Fund Balances - Endlng $ 31 764,931 68 $ 18,886.394 22 $ 33'.32445 $ ~,982J650 35 The notes to the ba!UC finanaal statements are an Integral part of thIS statement -6- COLUMBIA 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 2002 EXHIBIT or" Tolal Net Change In Fund Balances Governmental Funds (Exhibit '"E~) S 14893,19285 Amounts reponed for Governmental AdMbes In the Statement of Achvmes are different because Capital Outlays are reported 85 expenditures 11 Governmental Funds However III the Statement of ActiVIties the cost of capUal assets rs allocated over their estimated useful ~ves as depreCIation expense In the current penod these amounts are Caprtal Outlay Depredation Expense ExC8S& of Capital Outlay over DepreoattOn Expense S 1388258285 -4,6,434 90 923814795 Because some property taxes WIll not be collected for several months after the School D1strld's fiscal year ends they are not considered ftava,lable- revenues -19216552 In the Statement of Ac:tJvlbeS only the galll on the exchange/sale of land and eqUipment IS reported whereas In the Governmental Funds, the entire proceeds from the eXchange/sale Increase finanCIal resources Thus the mange In net assets differs from the change In fund balances by the cost of the land/carrying value of the eqUIpment sold -20280210 Bond Proceeds provide current finaooal resources to Governmental Funds however ISSUIng debt Increa6eS Long-Term Liabilities In the Statement of Net Assets In the current penod proceeds were received from General Obllgahon Bonds Issued Refunding Bonds Issued Tolal Bond proceeds S -1600000000 -6 155,000 00 -22,15500000 Repayment of Iong-temJ debt I~ reported as an expenditure In Govemmental Funds but the repayment reduces Long-Term lJablhlJes In the Statement of Net Assets In the current year these amOllnt~ COfl5lSt of Bond Pnoopal Retirements 9475000 00 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 aetJvrtles conSIst of lnaease In Compensated Absences -63,05281 An Internal Service Fund IS used by the School Dlstnct's management to account for the workers' compensahon nsk finaoong related activities The net revenue of the Intemal ServIce Fund IS reported WIth governmental actlvlbes 327,55991 Change In Net Assets of Governmental AetlvlbeS (ExtllM "81 $ 11 :32 880 28 1 The notes to the baSIC finanlAal statements are an Irrtegral part Of this 6tatement 9- COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS PROPRIETARY FUNDS JUNE 30, 2002 ASSETS Current Assets Cash and Cash Equivalents Investments Prepaid Items Total Current Assets LIABILITIES Current L,abllrtles Accounts Payable NET ASSETS Unrestncted TotalLJablhlles and Net Assets EXHIBIT"G" INTERNAL SERVICE FUND $ 387,809 86 820,036 71 39,92200 $ $ 1,098,770 88 $ The notes to the basIc finanCIal statements are an Integral part of thiS statement - 10 - COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS PROPRIETARY FUNDS YEAR ENDED JUNE 30, 2002 EXHIBIT "H" OPERATING REVENUES Charges for ServiceS OPERATING EXPENSES Contractual Services Insurance Claims and Expenses Total Operatrn9 Expenses Operatrng Income NONOPERATING REVENUES (EXPENSES) Interest and Investment Revenue Income Transfers In Changes ,n Net Assets Total Net Assets - Beginning Total Net Assets - Ending INTERNAL SERVICE FUND $ 275,709 60 $ 79,894 81 69,49319 $ 149,38800 $ 126,321 60 $ 70,236 00 $ 196,55760 131,00231 $ 327,55991 771,21097 $ 1,098,77088 The notes to the baSIC finanCIal statements are an Inte9ral part of thiS statement - 11 - COLUMBIA COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30 2002 CASH FLOWS FROM OPERATING ACTIVITIES Cash ReceIVed from Charges for ServlCSS Cash Paid for Excess WorlI" revenue from property ta'l.e~ - 15 - COLUMBIA COUNTY BOARD OF EDUCAnON NOTES TO THE BASIC FINANCIAL STATFMENTS JUNE 30, 2002 EXIIlBIT "K" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES IS recognized m the fiscal year for which the taxe~ are lencd Rcvenue from sales taxes IS recognized m the liscal year m wluch the underlymg transactIOn (sale) takes place Revenue from grants and donations IS recognized m the fiscal year m which all ehglblhty requirements have been satisfied. The School DI~tnct uses funds to report on ItS finanCial poSitiOn and the results (If Its operations. l- und accountmg IS deSigned to demonstrate legal compliance and to aid fmanclal management by ~egregatlng transactions related to certam governmental functIOns or activities, A fund IS a separate accountmg entity With a self-balancmg set of accounts Governmental funds are reported usmg thc current financial resourccs measurement focus and the modified accrual basiS of accounting Under thiS method, revenues are recognized when measurablc and avaIlable The School Distnct considers all revenues reported m the governmental funds to be available If they are collected '\\'1thin 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 mcurred, except for pnnclpal and mterest on general long-tenn debt, chums and Judgments, and compensated absences, whIch are recognized as expendllUrcs to the extent they have matured Capital asset acquIsitIOns are reported as expenditures m governmental funds Proceeds of general long-tenn habIlitles and acqUisitions under capital leases are reported as other financmg sources The School Dlstnct funds certam programs by a combmation ofspecific cost-reimbursement grants, categoncal grants. and general revenue~. Thus, when program COSL~ are mcurred, there arc both re~tncted and UItrestncted net assets available to tinance the program It IS the School Distnet's pohcy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenue~ A substantial number of personnel of the School Dlstnct were employed for a one hundred and ninety day penod beguuung m August 200 I and ending in early June 2002, Employment contracL~ for thesc employment penods typically specify that compensation be paid m twelve equal monthl) payments beginnmg m September 200 I and endmg in August 2002 State grants to fund the State's share of these contracts are disbursed to the School Dlstnet in the same twelve month penod In accordance '\\1th generally accepted accounting pnnclples, salary and fnnge benefit costs and the related revenue from the State to fund these contracts are recorded m the fiscal penod covered by the~ financial statemenb RESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND In pnor ye~, the finanCial activIties of thc School Dlstnct's School Food Scrvlces Fund, Lottery I'rogram~ and Fedeml Program~ werc reported as Special Revenue I unds These funds had a combmed fund balance of$2,32I,837 66 at July 1,2001 For fiscal year 2002, these funds have been reported as part of the General Fund In additIOn, governmental fund activity from the vanous - 16- COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30. 2002 EXHIBIT "K" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES school actiVIty accounts, whIch were not reportcd in the pnor year's financial statement~, have been reported wIthin the General Fund for fiscal year ended June 30. 2002 The governmental fund actIVIty of the vanous school activity accounts had a fund balance of $750.664 22 at July 1,2001 Thl~ change IS In accordance with generally accepted accounting pnnclples General fund Balance July 1,2001 $ 24,508,470 86 Add Funds Consolidated \\-lth Gencral Fund School Food Services Fund School ActIVIty Account - Governmental ActiVity 2,321,83766 750,664 22 General Fund Balance July I, 200 I (Restated) $ 27.58Q,972.74 CHANGES IN ACCOUNTING PRINCIPLES The Columbia County Board of Education has Implemcnted a new finanCIal reportIng model as reqUired by proVISIOns of Governmental Accounting Standards Board Statement No 34, BaSIC Fmanclal Statements - and Management's D,scunllJn and Analysl\ - for Stale and Local G()vernment~, as of June 30, 2002 The provIsIOns ofGASB Statement No 34 reqUire the Inclusion ofa Statement ofNet Assel~ The clement~ compnslng Net Assets - BegInnIng Include the follOWing General Fund (Restated) July 1,2001 Capital Projects Fund Debt ServIce Fund $ 27,580,972 74 6,407,931 39 100,55337 Governmental Funds (Rcstated) July 1,2001 Capital Assets Balance July I, 2001 Construclion In Progress AdJ ustments to Pnor Year Balance Accumulated DepreCiatIOn Property Tax Revenue TIming Differences Bonds and Notes Payable Compensated Absences Internal Sen ice Fund $ 34,089,457 50 $129,847,75741 2,797,07005 1,019,823.64 133,664,651 10 -36,297,62209 -512,90779 -43,540,000 00 -201,77060 771.21097 Net Asset\ Beglnmng (See ExhIbIt "13") $ 87973..019,09 - 17 - COLUMBIA COUNTY BOARD OF EDUC A110N NOTFS 10 THE BASIC FINANCIAl STATEMEN rs JUNE 30,2002 EXHIBI r "","" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS C;u,h and cash eqUIvalents consist ofcash on hand, demand deposits and short-tcnn Investments With original matuntles of three month~ or less from the date of acquisition In authorIl'ed finanCial InSlltullons Georgia Law~ OCGA 45-8-14 authOrize the Board to depo~1t its funds In one or more solvent banh or Insured Federal saVings and loan assoclatlon~ INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School DlstrIet In nonparticipating Intcrest-earnIng contracts (~uch as certificates ofdepOSit) and repurchase agreements are reported at cost PartiCipating Interest-eamIng contracts and money market Investments With a matumy at purcha~e of one year or le~s are reported at amortized cost Both participating Interest-eamlng contracts and money market Investments With a matunty at purchase greater than one year and equity Investment~ are reported at fair value The OffiCIal Code of GeorgIa Annotated SectIOn 36-83-4 authonzes 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 rund, may be Invested In the follOWing: (I) ObligatIons Issued by the State of Georgia or by other states. (2) ObligatIon, Is,ued by the United States government. (3) ObligatIons fully In~ured or guaranteed by the United States government or a United State, government agency, (4) Obligations of any corporatIon of the United States government. (5) Pnme banker's acceptance" (6) The Local Government Investment Pool admInistered by the State of Georgla. Office 01 Treasury and FIscal ServIces. (7) Repurchase agreements, and (8) Obligations of other politIcal SUbdiVISIOns of the State of Georgia RECEIVABLES Recelvable~ consi~t of amount~ due from property and sales taxes, grant relmbur,ements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables - 18 - COLUMBIA COUNTY BOARD OF EDUCAliON NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 LXHIBIT "K" Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES dIsclosed from mfonnatlOn avatlable ReceIvables arc recorded when either the asset or revenue recogmllon cntena has been met. Receivablcs recorded on thc basic financial statements do not mcludc any amounts which would necessitate the need for an allowance for uneollecllble recelvablcs PROPERTY TAXES Thc Columbia County Board of CommissIOners fill.ed the property tax levy for the 200 I ta'l. dlgcst year (calcndar year) on August 21, 2001 (levy date), Taxes were due on Novcmber 30,2001 (hen date) Taxes collected wlthm the current fiscal year or withm 60 days after year-end on the 200 I tax digest are reported as revenue m the governmental funds for fiscal year 2002 The Columbia County Tax Commlssioncr btlls and collects thc property taxes for the School Dlstnct, Withholds 25% of taxes collected as a fee for tax collcction and remits the balance of taxes collectcd to the School Dlstnct Property tax revenues, at the fund reportmg level, during the fiscal ycar ended June 30, 2002, for mamtenance and operations amounted to $35,854,459 07 and for school bonds amountcd 10$1.04571 The tax millage rate leVied for the 2001 tax year (calendar year) for the Columbia County Board of EducatIOn was as follows (a mill cquals $1 per thousand dollars of assessed value), School OperatIOns l1.J! mills SALES TAXES Special Purpose Local Opllon Sale~ Tax revcnue dunng the year amounted to $10,029,682 26 and IS to be used for capital outlay for educatIOnal purposes or debt service lbls sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years INVENTORIES FOOD INVENTORIES On the dlstnct-wlde finanCial statements, mventones of donated food commodilles uscd m the preparation ofmcals are reported at their Federally asslgncd value and purchased foods mventones are reported at cost (first-in, first-out) The School Dlstnct use., the consumptIOn method to account for Invcntones whereby donated food commodities are recorded as an as,ct and as revenue when recclvcd, and expen~s are recorded as the mventory Items are used Purchased foods are recorded as an a~~et when purchased and expenses arc recorded as the mventory Items are used On the fund ,tatcments, mventones of governmental funds are reponed at cost (first-m, first-out) The School District uses the consumption mcthod to account for mventones whereby an asset IS recorded whcn purchased and expendItures are recorded when mventory items are used - 19 - COLUMBIA COUNTY BOARD OF EDUCAnON NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30. 2002 EXHIBIT "K" Note 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PREPAID ITEMS Payments made to vendors for services that will benefit periods subsequent to June 30. 2002, are recorded as prepaid Items. eAPITAL ASSETS Capital assets purchased, includmg capital outlay costs, are rccorded as expenditures In thc fund financIal statements at the tIme of purchase On the Dlstnct-\\1de financial statements, all purchased capital assets are valued at cost where hlstoncal records are aVailable and at estImated hlstoncal cost based on appraisals or deflated current replacement cost where no historIcal records CXlst Donated capital assets are recorded at fair market value on the date donated DIsposals are deleted at depreciated recorded cost. fhe cost of nonnal maintenance and repaIrs that do not add to the value of assets or matcrIally extend the useful lives of the asscts IS not capitalIzed DepreciatIon IS computed USIng the straight-line method The School Dlstnct does not capitalize book collectIOns or works ofart Capitalization threshold~ and estimated useful lIves of caPital as'>ets reported In the Dlstnct-\\1de statement~ are as follows' CapitalizatiOn Policv Estimated Useful Life Land $ Land Improvements $ BuildIngs and Improvements $ Computers, TelevlSlons. Laser Disk Players. Digital Cameras and Video Cameras Momtors, Pnnters, Scanners and Band Equipment $ All Other Equipment $ 1.00000 1,00000 1.00000 ALL 10000 1,000 00 N/A 10 years 60 years 5 to 20 years 5 to 20 years 5 to 20 years DepreCIation IS used to allocate the actual or estimated hlstoncal cost of all capital assets over estimated useful lives GENERAL OBLIGATION BONDS The School District Is~ues general obligatIOn bonds to proVide funds for the acquisition and construction of major capital faCilities Bond Issuance costs are recogmzed In the finanCial statemen~ dunng the fiscal year bonds are Issued In additIOn. general oblIgation bonds have been ISSUed to refund eXistIng general obligatIOn bonds 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 - 20- COLUMBIA COUNTY BOARD or EDUCATION NOTES TO THE BASIC r1NANCIAL STA n:MENTS JUNe 30, 2002 f XHIBIT ",,"" Notc 3 DEPOSITS AND INVESTMENTS COl LA I CRAI 1/ATION OF DEPOSITS Ofliclal Cod~ of Gcorgm Annotated (OCGA) Section 45-8-I:! provlde~ that there ~hall not be on depOSit al any tIme many depoMtory for a tlmc longer than tcn days a !>um of money which has not bccn secured by surety hond, hy guarantee ofmsurance, or by collateral I hc aggregate of the face value of such surety hond and the market valuc of secUrltlCS pledged shall bc equal to not less than 110 percent of thc public tunds bemg secured after the deduction of the amount ofdeposit msurancc If a depOSitory elects the pooled method (OCGA 45-8-13 I) the aggregate of the markct value ofthe '>Ccuntles pledged to secure a pool of public funds ~hall bc not les~ than 110 percent ofthe dally pool balance OCGA SectIOn 45-8-11 (b) proVIdes an officer holdmg public fund~ may, In hI' dIscretion WUlve thc rcquIrement for secunty In the ca~e of operating funds placed m demand depo!>1t chcckmg ac~ount~ Acceptable secunty for depOSits consIsts of any onc of or any combinatIOn of thc follOWing ( I) Surety hond signed by a surety company duly qualified and authonzcd to transact bu~me% Within the State of Georgia (2) In~urance on accounls provided by the f'ederal DepoSit Insurance Corporation, (3) Bonds. blll~, notes, certificates of mdebtedness or other direct obligatIOns of the United States or of the State of Georgia, (4) Rond" bills, notes, certificates of Indebtedncss or other obligallon~ 01 the countlc, or mUnicipalities of the State of Georgia, (5) Dond., of any public authonty created by the laws of the Stale of Georgia, provldmg that the statute that created the authonty authonzed the use of the honds for thiS purpo,c, (6) Indu~tnal revenuc honds and honds ofdevelopmcnt authontles created by the laws ofthc State of Georgia, and (7) Bonds. bills, notcs, certificates of Indebtedness, or other obligation, of a subMdlary corporation of the Umted State, government, whIch are fully guaranteed by the Umted Slate~ governmcnt both as to pnnclpal and Inlerest or debt obligatIons Issued by the Federal Land Bank, the I'ederal Home Loan Bank. the Federal Inlermcdlate Credit Bank. the Central Rank tor Cooperatives, thc Farm Credit Banks, the Federal Ilome Loan Mortgage A,soclallon, and the Federal National Mortgage ASSOClalLon CATEGORIZA liON OF DEPOSITS At June 30, 2002, the bank balances were $10,643,04509 rhe amounts ofthc total bank balanccs are claSSified mto three categones of credit nsk - 21 - COLUMBIA COUN ry BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT"K" Note 3' DEPOSITS AND INVESTMENTS Category 1 - Cash that IS Insured (e,g. Federal depository In~urance) or collateralized 'With secuntIes held by the School Dlstnct or by the School District's agent m the School Distnct's name, Category 2 - Cash collateralIZed With secunties held by the pledging financial institution's trust department or agent In the School District's name Catcgory 3 - Uncollaterallzed deposits (TIus mcludes any bank balance that is collateralized WIth secuntIes held by the pledging finanCial mstltutlon, or by Il~ trust department or agent but not m the School District's name) The School DI~tnct's deposits are classified by nsk category at June 30, 2002, as follows' RI~I.. CategorY Bank Balance 1 $ 615,12459 2 10,027,92050 3 000 Total $10.643.045,09 CATEGORIZATION OF INVESTMENTS Investments are classified as to nsk by the three categones descnbed below, Category I - Insured or registered, or secuntles held by the School Dlstnct or the School Dlstnct's agent m the School Dlstnct's name Category 2 - Unmsured or unregistered. WIth secuntIes held by the counterparty's trust department or agent In the School District's name. Category 3 - Umnsured or unregistered, With secunties held by the counterparty, or by ItS trust department or agent but not In the School Dlstnct's name At June 30. 2002, the carrying value of the School District's total investments wa~ $45.161.852 92 which I~ matenally the same as fair value The mvestments are clasSified as to nsk categones as follows J ",nc Q(IgH..5f.ment Lommon ~tocl Local Go.. emment Invc~lment Pooh. Total Investments RI~k Categoric" 2 $ 112.820.40 $ CllIT)mg Fair 3 Amount VaIUl. 000 $ 112,82040 S 112,82040 45,cl49 032 52 45,049,032 52 S:1~JRI,&~ S4.l161852.92 - 22- COLUMBIA COUNTY BOARD or EDUC A liON NOTES TO THE RASIC FINANCIAL STA rEMENTS JUNE 30. 2002 EXIIIBlT "K" Note 3 Dl::POSIl S AND INVESTMENTS The carrYing amounts shown abovc Include~ amounts mamtaIned In an Investment pool by the State of Georgia. Office of I rea~ury and FI~cal Services In "hlch the School Dlstnct owns no Idenlifiahle ~ecuntles The Investment policy oflhe Stale of Georgia. Office ofTrea~ury and fiscal Scrvlce~ for the Local Government Investment Pool (Pnmary LlqUldlly Portfolio) does not provide for Invc~tment In denvatlvc:s or simIlar Investments A descnpllon ofthc Pnmary LiqUidity Portfolio IS a~ lollows The Pnmary LiqUidity Portfolio con~l~ts of GeorgIa Fund I. which I~ a eomhmatlOn local and ~tatc government mve~tment pool, and Fund 6 Georgia ~und lIs a stahle net as~t value mvestment pool which follows Standard and Poor's cntena for AAAm rdted money market funds The pool IS not rcglstered wllh the Secunlies and Exchange Comml~~lon ~ an Investment company hut doe~ operate GeorgIa Fund I In a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and IS conSidered to be a 2a-7 lI"e pool The pool's pnmal) obJectlve~are ~tety of capital. mvestmcnt mcome. IIqUldlly and dlverslficallon whIle mamtaInIng pnnclpal ($1 00 per share value) Net asset value IS calculated wcekly to en~ure ~tabllIty The pool dlslnbutes earnings (net of management fees) on a monthly basiS and values partiCipant'. shares sold and redeemed based on $1 00 per share Pooled cash and cash equIvalents and mvestment~ are reported at cost. which approxlmatcs fair \ aluc I he pool docs not Is~ue any legally bmdIng guaranlees to support the value of the ~hares PartiCipation In the pool I~ voluntary and depOSits eonsl~t of funds from local governments. operating and trust funds of Georgia's state agencies. college~ and umversltles. and current operdlIng fund~ of the State of Georgia's General Fund Inve~tment~ In Georgia Fund I and Fund 6 arc directed toward short-tenn mstruments such a~ U S Treasury obligatIOns. secuntles Issued or guaranteed as to pnnclpal and mterest hy the U S Government or any of ItS agencies or mstrumentalilles. ban"cr'~ acceptances and repurchase agreements The weighted average matunty of GeorgIa Fund I may not excccd 60 days The weighted average matunty for Georgia Fund I on June 30. 2002. wa~ 0 12 years fhe average Inve~tmenl duration for Fund 6 on June 30. 2002. wa~ 0 75 yea~ Nole 4 NON-MONE I ARY TRI\NSACTIONS The School Dlstnet receives food eommodllles from the Umted State~ Department of Agnculture (USDA) for school breakfast and lunch program~ 'I hese eommodltlcs are recorded at their r ederally a~~lgned value See Note 1 - Inventories Note 5 CAPITAL ASSETS The fullowmg 1\ a ~ummary of ehange~ In the Capital Asset~ dunng the fiscal year - 23 - COLUMBIA COUNTY BOARD OF EDUCATION NOTES TO THE BASIC ~ INANCIAL STATEMENTS JUNe 30, 2002 EXHIBIT "K" Note 5 CAPITAL ASSETS Governmental ACllVltlc:~ Capital J\~t ... Not Bemg Depreciated Land Construction In Progress TUl,Jl Capital "",sset .. \lot Bemg Depreciated Capital A..,\et... Bcmg lJ.epreclatcd BUlldmgs and ImprOvemenl J. 2001 Increases Dccrca~ ... Balances June 30. 2002 S 2.K92.67 I 38 S 6'14.79376 S -158.283 14 S 3.429,18200 2 797.070.05 9 604,852" -2.797.07005 9.1>04.852 22 S 5,689.741 43 SI0,299.64598 S -2.955.353 19 S 13,OJ4.034 22 SIOK.029.92956 S 3,750.82566 SIII,780 755 22 19,944,980 II 2,58264692 S 232,89779 22.294 729 24 46534 J4 4653434 27,026.477 00 9271,14509 2,270.606 25 2,37150191 2326.74 -188,378 K3 29,297,083 25 11.454,268 17 2,32674 S 91 677.2K7 58 S 1m 572.02 S -44 518.96 S 93.368.34064 S 97 J67,O~2JU 512.015 21800 S~.~ S,I,IIMOf.ill...8!l Current ycar depreciation expense by fimctlOn is as follows Instruction Support ServIces Pupil ServIces Improvements of instructional Services EducatIOnal Media Services General Admmlstratlon School Admmlstration Busmess AdmInistratIOn Mamtenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Commumty ServIces Food Services $ 3,513,830,34 $ 6,751.26 18,664 27 13,790 84 5,18868 68,29373 37,72371 81,38787 545,327.28 \,67097 26796 5\,44771 830,51428 300,09028 $ 4644:434.90 Note 6 RESTRICTED ASSETS SpeCial Purpose Local Option Sales Tax (SPLOST) and property tax leVied specifically for retIrement of outstandmg bond prmcipal. interest and paymg agent's fees (Debt Service Funds) are reported as rcstncted assets m the Statemcnt ofNet Assets because their use IS limited by applicable bond covenants or statutory proVisions Rcstrlcted assets at June 30, 2002. were as follows - 24- COLUMBIA COUNTY BOARD Of EDUCAnON NOTES 10 lHE BASIC fINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "K" Notc 6 RESTRICTED ASSETS CapItal Projects Bond Proceeds Restncted Cash and Cash EqUivalents Debt ServIces CapItal AcquIsItIons Restncted Investments Debt ServIces CapItal A~qUlsltlons $ 8.414,341 78 CapItal Projects SPLOST Proceeds $ 61,94716 $ 3,137,332 91 Debt ServIce Funds $ 281,81948 $ 49.36979 Note 7 IN1 ERFUND TRANSFERS Interfund transfers for the year ended June 30, 2002, con~l~tcd ofthc follOWing I ransfer to Transfers From Distnct- WIde CapItal General Projects Fund Fund CapItal Projects GSFIC Debt Service Fund All Others $ 18,00000 $ 519,16705 131,00231 " otal $ l42.Q.Q2,1l $ 'i 1..2,1 67,05 Transfers are used to move property tax revenues collected by the General Fund to (I) the DIStrICtWIde Capital Projects Fund as reqUired match or supplemental funding source for capItal construction projccts, (2) to move bond capltalIzcd Intcrcst to the Debt Servlcc Fund for paymcnt of bonds, and to (3) move funds as necdcd to the School Dlstnct's Internal Service Fund Note 8 RISK MANAGEMENT The School Dlstnct IS exposed to varIOus n~ks of lo,s rclatcd to torts, theft of, damage to, and destruction of assets, errors or omISSIOns, job related Illness or Injunes to employees, acts of God and uncmploymcnt compensation The School Dlstnct partiCIpate' In the GeorgIa School Boards ASSOCiatIon RIsk and Insurancc Managemcnt Systcm, a publIc cntlty nsk pool organIzed on JuJy I, 1994, to develop and adminIster a plan to reduce nsk of loss on account of general lIabIlIty, motor vehIcle IIahllIty. or property - 25 - ,------------------------- ---- COLUMBIA COUNTY BOARD OF EDUCAnON NOTES TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT "K" Note 8 RISK MANAGEMENT damage, mcludmg safety engmeenng and other loss prevention and control technIques. and to adminIster one or more groups of self-msuranee funds, mcludmg the processmg and dcfense of claIms brought agaInst members of the system The School Dlstnct pays an annual premIUm to thc system for Its gcneral msurance coverage Additional coverage IS prOVIded through agreements by the sy~1em "'"Ith other comparues according to their specIalty for property, boIler and machmery (mcludmg coverage for flood and earthquake), general lIabIlIty (includmg coverage for sexual harassment, molestation and abuse) and automobIle nsks Payment of excess insurance for the system varies by Ime of coverage. The School Dlstnct has establIshed a lImited nsk management program for workers' compensation claIms A premIUm IS charged when needed by the Internal ServIce Fund to the General Fund to cover actual claIms and to bUild a level of retamed earnmgs, A premium is charged by the Internal Servlcc Fund to the SpecIal Revenue Fund - School Food Services Fund to cover actual clalms l'he School Dlstnct accounts for claIms WIth expense and liabilIty bemg reported when it IS probable that a los~ has occurred, and the amount of that loss can be reasonably estimated An excess coverage m~urance polIcy covers mdlvldual claIms m exccss of $250,000 00 loss per occurrence, up to the statutory lImit Changes m the workcrs' compensation claIms lIability dunng the last two fiscal years are as follows 200\ 2002 Begmnmg of Year Llab,lny ClaIms and Changes m EstImates Claims PaId End of Year LiabIlity $ 197,16944 $ 239,43883 $ 192JlO223 $ 244,60604 $ 244,60604 $ 69,493 19 $ 165,101 54 $ 148,99769 l'he School Dlstnctl~ self-msured WIth regard to unemployment compensation claIms The School DistrIct accounts for claIms WIthin the General Fund WIth expenditures and lIabilIty bemg reported when It IS probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated Changes m the unemploymcnt compensation claims lIabIlity dunng thc last two fiscal yea~ are as follows Begmnmg of Year Llabllltv ClaIms and Changes m l'sllmates Claims Paid End of Year Llabllltv 200\ 2002 $ 000 $ 6,85984 S 6,85984 $ 000 $ 000 $ 5,05208 $ 2,072 00 $ 2,98008 The School Dlstnct h~ purchased surety bonds to proVIde addItional msurance coverage as follows' - 26- COLlJMIlIA COUNTY BOARD or LOUCATlON NOTLS 10 TIlE BASIC r1NANCIAL S rATEMI'NTS JUNI: ,0, 2002 EXIIIBII "K" Nole 8 RISK MANAGEMI:.NT PO~ltlon Covered Amount Supenntendent All Employees $ 50,00000 $ 200,00000 Note 9 LONG- rERM DI:.B r COMPI:.NSATED ABSENCES Compensatcd abscnccs rcpre~ent obligatIOns of the School Dlstnct relating to employees' nghts to rCCClvc compen~uon for future absences based upon service already rendcred This obligation relatcs only to ve~tlng accumulating leave In whIch payment IS probable and ean be reasonably c~Umatcd 1 he Sehool Dlstnct usc~ the vc~tlng method to compute compensated absence~ GENl,RAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are a~ follows PUroo~e Intere~t Rates Amount General Governmcnt - Scnes 1976 General Government - Refunding - Scne~ 1993 General Government - RcfundIng - Senes 1994 General Government - Sencs 1994A Gcncml Government - Refunding - Series 1998 General Government - Scne~ 200 I General Government - Refunding - Senes 200lA General Government - Senes 2002 600% - 6 75% 275% - 4 90% 280% - 5 20% 350% -7 00% 310%-435% 350% - 4 00% 350% - 4 00% 300%-400% $ 2,090,000 00 4.565.000 00 7,710,00000 10,750.000 00 9.540.000 00 9.500,00000 5.565.00000 6.500.000 00 $.if!.ZZQ.Q.QQ,OQ The Lhange~ In Long-Term Debt dunng thc fiscal ycar ended June 30, 2002, wcre as follow, - 27- COLUMBIA COUNTY BOARD OF LDUCATION NOTES TO I HE BASIC FINANCIAL STA rEMENTS JUNr 30, 2002 I:XHIBIl "K" Note 9 LONG-TERM DEB r Governmental Funds General Compensated ObligatIOn Ab~enees (\) Bonds Total Balance July 1.2001 $ 000 $43,540.000 00 $43.540,00000 Retroactl ve Restatement of Pnor Year Balance~ 201.77060 201.77060 Balanec July I. 2001 Restated $ 201,77060 $43,540.00000 $43.741,77060 Additions Annual Leave Earned GO Bond~ 346,561 82 346,561 82 22,155,00000 22,155,000 00 Deductions Annual Leavc Utilized Debt Retired 283.50901 9,475,00000 283.50901 9,475,00000 Bal,mec June 30, 2002 $ 264,823 41 $5.-6.220,000,00 $~,484,823.4 ! Portion of Long-Term Debt Duc wltbln One Year $ 000 $ 3,945,00000 $ 3,945,00000 II) I hI. portIon ul Compensated Ab\ences due Ytllhm one )c:ar has been dctcnnmed to be ImmatcnallO the ha...lc finam.IJI 'llalemc:nlS At Junc 30, 2002. payments due by fiscal year whIch Includes pnnclpal and Interest for these Items are a~ follows FI~cal Ycar Fnded June 30 General Obligation Debt Pnnclpal Intere~t 2003 2004 2005 2006 2007 2008-2012 2013 Total Pnnclpal and Intere\t $ 3,945,000 00 7,160,000,00 7,595,000 00 7,450,00000 6,455,000 00 20,715,00000 2,900,00000 $ 2.637,605 00 2,402,587 50 2,094,790 00 1.764.15500 1.442,322 50 3,491,49250 126.15000 $i6,220,000,QQ $U959, 102,~ - 28 - COLUMBIA COUNTY BOARD OF EDUCATION NO I ES TO THI:, UASIC FINANCIAl STATEMENTS JUNE 30, 2002 EXHIBIT"K" t-JOlC 10 PRIOR YEAR DEFEASEM[NT OF DEBT In fiscal ycar 1999, the School DI~trlct defeased certam gcneral oblIgation bond~ by placmg the procceds of ncw bond~ m an Irrevocable trust to provldc for all futurc debt ~CrvICC paymcnb on the old bonds Accordmgly, the trust account as~ct~ and the lIabilIty for thc defeased bonds are not mcluded m thc School District's basic financial ~tatcmen~ At June 30. ~002. $8.810,00000 01 bonds are out~tandmg and are conSidered defea~ed Note II ON-BEHALf PAYMENTS I he Board ha~ recognized revenues and costs m the amount of $1,165.240 70 for hcalth In~urancc and retirement contributIOns paid on the Board's behalf by the follOWIng Statc AgenCies Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certlficd Pcr~onnel In thc amount of $983.418 70 Otrlce of Treasury and Fiscal Servlce~ Paid to thc Public School Employees Rctlrement System ror PublIc School Employec~ Retlremcnt (PSERS) Employer's Cost In the amount of $181.822 00 Note 12' SIGNIFICAN r COMMITMf:NTS I hc follOWIng IS an analysIs of ~IgnlficantoutstandIng construction or renovation contracts executed b) thc School ()1~trlCt a~ of Junc 30. 2002. together with fundmg aVailable - 29- COLUMBIA COUNTY BOARD OF EDUCATION NOTFS TO THE BASIC FINANCIAL STATEMENTS JUNE 30, 2002 EXHIBIT"K" Note 12 SIGNIFICAN r COMMITMENTS ProJcct Uncarned Executed Contmcts Fundmg Available From Statc 03/02S-636-0 I 0 03/02S-636-0 II 03/02S-636-012 03/02S-636-0 13 03/02S-636-0 14, SA 01 S-636-053 03/02S-636-o 15, SA 0 I S-636-052 ADA Projects Blue Rldgc Elementary School Roof Electncal Upgrades Energy Managcment Harlem High School Roof Llghtmg - South Columbia Elementary SPLOST Pavmg Projects Whileboards $ 775.54034 844,262 18 1,759,11485 555,99639 6.053.97797 5,332,606 87 55,99546 266,285.25 102,00000 149,15000 33,132.67 66.53088 175,40073 15,21856 $ 223,83305 422,68063 733,46641 255,15639 3,920,063 58 3,454,820 65 $16,185.212.15 $ 9,010,020}1 The amounts descnbed m thiS note arc not reflected m the basIC financial statements Note 13 CONTINGENT LIABILITIES Amounts receIved or rccelvable pnnclpally from the Federal government are subject to audit and review by grantor agenclcs. ThIS could result m requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms The School Dlstnct beheves that such dIsallowances. If any, Will be Immatenal to Its overall financIal posItIOn The School Dlstnct IS a defendant in various legal proceedmgs pertammg to matters incldcntal to the performance of routme School Dlstnct operatIons Thc ultimate dIspoSitIOn of these proceedmgs IS not presently determmable, but IS not believed to be matenal to the basiC financial statcments. Note 14. ACCUMULATED EMPLOYEES' LEAVE Thc School DI~tnct's admmlstratlve staff and ccrtam other full-time employees carn one day per month of annual leave Annual leave may be accumulated to a maxImum of 20 days, and upon rellrement or tcrminatlon of employment an amount based on unused leave, up to the maxImum accumulatIOn. IS paid to employees at the current rate of pay at the time oftermmallon or retIrcment See Note I - Compensated Absences - 30- COLUMBIA COlJN fV AOARD OF LDUCATION NOTE~ TO TilE BASIC FINANCIAL STATEM~_NTS JUNE 30, 2002 EXIIII:lI f "K" Note 15 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PI AN DESCRIPTION Suhstantlally all teachers. admmlstratlve and clcncal per~onncl employed by local school systems arc covcred by thc f eachers Retirement System of GeorgIa (fRS l. which IS a co~t-shanng multiple cmployer defined benefit pen~lon plan 1 RS provides service retlrcment. disabilIty retlremcnt and survivors benefits for ItS members m accordance With State ~tatute The Teacher~ Retirement Sy,tcm of Georgia Issues a separate stand alone financIal audit report and a copy can be obtamed from the GeorgIa Department of Audits and Account~ 1 RS CON rRIBU nONS REQUIRFD AND MADE Fmploycc, of the School Dlstnct who arc covcred hy TRS arc required by State statute to contnbute 5% of their gros~ earnmgs to TRS The School DistrIct make~ monthly employer contnbutlons to I RS at rates adopted by the TRS Board of Trustee, m accordance with State ,tatute and as advised by their independent actuary Thc rcqulTed employcr contrIbutIOn rate IS 924% and cmployer contnbutlons for the current fi>eal year and the prccedmg two fiseal years arc as follows' Fiscal Year Percentage ContrIbuted ReqUired ContnhutlOn 2002 2001 2000 100% 100% 100% $ 6,671.612 76 $ 7.251.170 18 $ 6,805,858 91 - 31 - COLUMBIA COUNTY BOARD OF EDUCATION GENERAL FUND SCHEDULE OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED JUNE 30 2002 SCHEDULE "1" REVENUES Property Taxes sales Taxes State Funds Federal Funds Charges lor selVlces Investment Earnmgs Miscellaneous Total Revenues EXPENDITURES Current Instruetlon Support SelVlces Pupil Services Improvement of Instrucbonal Services Educabonal Media ServICeS General Admlnlstrahon School Admlnlstratlon BUSiness AclmmlslralJon Maintenance and OperatIOn of Plant Student Transportabon Services Central Support servICeS Other Support serv,ces Community SSlVlces Food ServICeS OperatIOn Total Expend,tures Excess of Revenues over (undet') Expenditure$. OTHER FINANCING USES OlherUses Net Change ,n Fund Balances Fund Balances - Beglnmng Fund Balances - Ending NONAPPROPRIATED BUDGETS ORIGINAL FINAL ACTUAL AMOUNTS S 3527500000 S 36 496 360 00 S 35.866.843 45 1.806.977 68 74760 59100 76.259 375 00 77 .525.17647 5.770.608 00 6480.963 00 582608866 366994000 366994000 5.701.911 55 1 365 000 00 1.365 000 00 766.11971 113.00000 113.000 00 1.263.439 30 S 120.854.13900 $ 124.284.638 00 $ 128.778.556 82 $ 8258375800 $ 83.752 399 00 S 84 295 757 98 3049291 00 311292200 280264300 877.294 QQ 7365.38500 966 062 00 8.611 006 00 4590 164 00 70713300 580000 300000 6.427.002 QQ 3.173465 QQ 3167093 QQ 2.807333 QQ 91917000 7365 385 QQ 96606200 8.586 006 QQ 4.646162 QQ 707133 QQ 186731 QQ 5000 QQ 6.460.760 00 2.94558700 2729.15197 2987250 78 1.512334 06 7206.22814 945.91342 785207087 4.481.098 07 732.894 32 187.72113 2280.21353 6.289.37430 $ 121.103.460 QQ $ 122.744.71900 $ 124.445.59557 $ -249.321 00 $ 1.539.919 QQ S 433296125 -280.000 00 -298.000 00 -149.00231 S -529 321 00 S 1.241.91900 $ 4.18395894 24.870.636 12 24.870.636 12 27.580.972 74 $ 24.341,31512 $ 26,112.55512 $ 31,764.93168 See notes to the baSIC finanCial statements - 33- COLUMBIA COUNTY BOARD OF EPUCATlON SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "2" FUNDING AGENCY PROGRAM/GRANT Agneullure U S Department of Chlk:l NutntJon Cluster Pass-Through From Georgaa Department of Education Food and Nublhon Program Food ServIces School Breakfast Program National Sd100l Lunch program Tolal Child Nutnbon Cluster Other Programs Pass-Through From Georgaa Department of EducatIOn Food and Nutntlon Program Food Dlstrlbutlon Program (1) Fresh Produce Program (1) Pass-Through From Office of Scnool Readll8SS Food and Nutrition Program Child and Adult Care Food Program Total U S Department of Agnculture Educauon U S Department of Speasl EducabOn Ctuster Pass-Through From Georgaa Deparb1lent of EdUC8bOn IndlVlCluals WIth DtsabllrtJ8S EducatIOn Act Part B . Spatial Education Flow Through Presdlool CapaCIty BUilding Improvement Total Special Education Cluster Other Programs Direct tmpadAid Pass-Through From Georgia Department of Edueaoon ComprehenSlVe School Reform Demonstration Proted Elementary and Secondary Education Ad. Tille I GranlS 10 local Educatklnal Agenaes Title II Eisenhower ProfesslOI1al Development Teacher Quality Enhancement Program TI1Ie III Technology Lrteracy Challenge Fund Grants Title VI Innovallve EdlJC8bon Program Strategies Class SIZe RedudlOJl Georgaa Elementary SchOOl Foreign Language Model Program Safe and Drug-Free Sdlools and Communrtles VocabOnal EducatIOn BasIC Grants '0 Stalu H'Ilh School Program Ba&&c Grant Total U S Department of Education CFDA NUMBER PASS THROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10553 10555 NlA S 227,17612 (2) NlA 1,399,060 65 S 5,921,91304 (3) S 1626 236 n S 5,921 91304 10550 10550 10558 NlA 293938 91 309,86203 NlA 56 452 28 56 452 28 NlA 209617 (2) S 1.978.72413 S 6,288,227 35 84 027 84 173 84 173 NlA S 1 344,39571 S 1 344 395 71 NlA 110,263 01 11026301 NlA 35,541 74 35,541 74 S 1,490 200 46 S 1 49020046 84 041 84 332 84 010 84 281 84 366 84 318 84298 84 340 84 29BA 84186 84 048 132968 n NlA 5500000 (4) 5500000 NlA 1 17421205 1 17421205 NlA 10254281 10254281 NlA -l; 345 75 NlA 12500000 12500000 NlA 7835900 7835900 NlA 278,551 27 278551 27 NlA 50 000 00 50 000 00 NlA 80,20298 8020298 NlA 112,74000 112,74000 S 3,673,431 57 S 3,546,808 55 - 34- COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2002 SCHEDULE 7' FUNDING AGENCY PROGRAM/GRANT Defense U S Department of Dlred Department of the Anny ROT C Program Departmenl of the Navy ROT C Program Total U S Depanment 01 Defense CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD S 14162361 $ 141,62361 32,309 15 3230915 $ 173,932 96 S _ _-,1.!c73~93",2",96",- Total Federal FlflanClal AsSIStance S 5,826,088 66 $ 10[008,968 86 NJA = Not Ava~able Noles to the Schedule of ExPendltyres of Federal Awards (1) The amounts shown for the Food Dlstnbuhon Program and Fresh PrOduce Program represent the Federally asstgned value of oonmonetary as$tstance for donated commod\!Jes recetved and/or consumed by the Schoo D!.slnct dunng the current fiscal year (2) Expenditures for the Chrld and Adult Care Food Program and the School Breakfast Program were not maintained separately and are mcluded In the 2002 NatIOnal School Lunch Program (3) Expenchlures for thiS program lndude State and/or Other Funds Expenditures are not maintaIned by fund source (4) Funds earned on It'llS program do not require reportlng of expernhlures Major Programs are identIfied by an astensk (*) U1 front of the CFDA number The Sdlool DlStnct did not proVIde Federal ASSIStance to any Subreapl8f1t The accompanymg sd1edule of expenditures of Federal awards mcludes the Federal grant acllVlty of the Columbia County Board of Education and IS presented on the moolfied accrual baSIS of accounting wtuch IS the baSIS of accountlllQ used In the presentation of the baSIC fananClal statements See notes to the baSIC finanCIal statements 35 COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDER JUNE 30 2002 SCHEDULE "3" AGENCY/FUNDING GRANTS EducatIon Georgia Department of Quality BaSIC EducatIon Direct Instrucbonal Cost Kindergarten Program Kindergarten Program - Ear1y Intervention Program Prrmary Grades (1-3) Program Prunary Grades - Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervenbon (4-5) Program Middle Grades (6-8) Program H'9h School General Educa~on (9-12) Program Voca~onal Laboratory (9-12) Program Students wrth Disabilihes Category I Category II Category III Category IV Category V Gifted Student - Category VI Remechal Educabon Program Alternative Education Program EnglISh Speakers of Other Languages (ESOL) Media Center Program 20 Days .AddloonallnstruCllOn Slaff and Professional Development IndIrect Cost Central Admlnlstratton School AdminIStration FaCIlity Maintenance and Operallons Categoncal Grants Pupil Transportation Regular Bus Replacement Nursing services PnnClpal Supplements Vocational SUperviSOrs Education EqualizatIOn Fundmg Grant Food ServICeS Vocational Education Other State Programs 4-8 Statewide After School Program K3 Statewlde Reading Program Health Insurance Indirect Cost (SCtlool of Excellence) Mentor Teachers Natlonal Teacher Certlficallon Outdoor Classroom Pay for Performance Post Secondary Op~ons Preschool HandICapped Program Teachers Rellrement GOVERNMENTAL FUND TYPES CAPITAL GENERAL PROJECTS FUND FUND TOTAL $ 465241535 24734909 11044 023 18 784 90917 611042639 401,82303 1056861666 9787260 56 1 542896 08 264,780 11 772,00051 3743,94040 728,46001 222,43574 1 138,71010 7437079 809 725 82 6781557 1 721 026 70 54106600 22972300 1 59954900 2959,266 99 4917,98200 1 708,73800 462,23200 364,17900 74,76000 64 802 00 524230400 446,21000 90,05700 146,61640 187,358 29 983,41870 200000 17,138 00 5,91600 1,sao 00 174,000 00 8,41400 21364900 30 527 46 $ 4652,41535 24734909 11044,02318 784,909 17 6110,42639 401,82303 10568,61666 9,787,26056 1 542896 08 264 780 11 77200051 374394040 728460 01 22243574 1 13871010 7437079 80972582 6781557 1 721 02670 54106600 22972300 1,59954900 2959266 99 491798200 1 708738 00 46223200 364 17900 74760 00 64,80200 5242,304 00 446,21000 9005700 146 616 40 18735829 98341870 2000 00 17138 00 591600 1 sao 00 174,00000 8,41400 213,64900 30,52746 - 38- COLUMBIA COUNTY BOARp OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 SCHEDULE "3" AGENCYIFUNDING GRANTS Education Georgia Department of Lottery Programs Asslstlve Technology Computers In the Classroom Georgia State FmanCing and Investment CommISsIOn Reimbursement on ConstructIOn Projects Office of School Readmess Pre~Klndergarten Program Office of Treasury and Fiscal ServiceS Public School Employees Retirement CONTRACT Education Georgia Department of ForelQn Language Model Program OTHER Commumty Affairs, Georgia Department of Local Assistance Grants GOVERNMENTAL FUND TYPES CAPITAL GENERAL PROJECTS FUND FUND TOTAL $ 2323300 465,42500 s 2323300 46542500 $ 260113629 260113629 1 403201 30 1 403 201 30 181,82200 181 82200 207208 00 207208 00 89,89707 89,89707 $ 77,525,17647 $ 2,601.13629 $ 80,126,31276 See notes to the basic finaooal statements - 37- .c..QiJJ.MBIA COUNTY BOARD OF EDUCATIQN SCHEDULE Of APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 SCHEDULE '4~ PROJECT Payment of Pnnopal and Interest on the OutStanding General ObllgatJon Bonds 01 the Dlstnct WhICh Fall Due From Odober 1 1997 Through October 1 2002 ThiS Does Not Include the Entire Amount of Sue:h Payments The Balance of Such Payments Shall be Made From Other Funds of the D1,tnct AcqUiSItion of Land In the Grovetown Area as a Site for Future SchooI(s) Renovauons and Improvements to the StadiUms at Evans Htgh School Lakeslde Hrgh SChOOl Greenbner High School and Harlem High School Construction of a New ....ddle School Replacement and Refurbtshment 01 FloomlQ at Belair Elementary School Evans Middle School 8f'O()j(wood Elementary SChool Gym Cotumbl8 Middle School North Har1em Elementary School North CohJmbla Elementary School Westmont Elementary SctIool Harlem Middle SChool and Grovetown Elementary School PavIng Pro}eClS at the Transportabon FaClirttes 01 the School O$f1CJ, the Mamtenance FaCl'lt~ of the School Dlstnd the Evans High School Track the Harlem High Sc:hool Track and the PSr1ttng Facllittea IOf Harlem High School Westmont Elementary School North CoIurTLb.a Elemenlsry School MartInez Elementary School Brookwood Elementary School Evans Elementary SCI100l Harlem MKfdle School COIumta Middle School and South Columbia Elementary SchOOl Electncal UpgradeS to Support AutomabOO In All Schools Purchase of Computers fOf AU Schools Replacement and Renovation of WIndow's at COlumbia MIddle School Evans Middle $dlOO1 Harlem MtddIe Schocrl and North Columbia Elementary School Facade UpgradeS at Martinez Elementary SchOol and H:artem Mld(I'Et SchOOl Replacement of Heating Ventllabon and AIr ConditiOning Systems and Roof of Evans Elementary SCI100l rv'Iodllicahons and RenovatlOfls at Crossroads Academy Alternative School AcqulSl1Jon and Installa1JOn of Energy Management ConlIOl Systems In All Schools ORIGINAL ESTIMATED COST (11 CURRENT ESTIMATED COST (21 AMOUNT EXPENDED IN CURRENT YEAR (31 (4) AMOUNT EXPENDED IN PRIOR YEARS (3) (4) PROJECT STATUS $ 29638"'3300 , 29636 43'3 00 $ 575311"'2'3 , 22514'3550'3 Onooo"ll 500 000 00 (51 46392600 36 073 82 Complete 1 850000 00 7200000 00 1,64986951 10677 929 03 231825 15798676 1847,55126 Complete 105199-4227 Ongoing 1400 000 00 673799 47 27'392300 399 876 47 Complete 1 400 000 00 1 400 000 00 2 000 000 00 2500 000 00 200000000 2500 000 00 7416320 30 000 00 514804800 970 576 98 Ongoing OngoU'lg 989972 00 Ongomg 750 000 00 00000000 413794 86 &00 000 00 2IDL6, " 413794 66 Com~e.. 200 854 00 Ongomg 525000 00 250 000 00 26356700 28100 00 2810000 Complete Compiele Complete 38 COl UMBIA COUNll' BOARD OF EDUCATlON SCHEDULE OF APPROVEQ LOCAL OPTION SALES TAX PROJECTS ~NQED JUNE 30 20~0~ SCHEDULE "'4 ORIGINAL ESTIMATED COST (11 CURRENT ESTIMATED COST (2) AMOUNT EXPENDED IN CURRENT YEAR (3) (4) AMOUNT EXPENDED IN PRIOR YEARS (3) (4) PROJECT STATUS Acqulnng ConStructing and EqUipping O!1e new Elementary School and one I"IeW Middle SctIool AddIng and EQUIpping ~ Cla33room, at EXI,brrg HlQh Sdlools AcqUlflng lafld for FuMe SChoOls Adding (0 Renavatmg Reparnng ImproVIng and EQUIpping Exrstmg School BtJlldHlgS alld OIMr BUildings and FaClhtles useful or des.lrable In connection therewith and Acqumng any necessary Prepeny therefore both Real and Personal and ACQUIring Instructional and Admlnrstratlve Technology Improvemen19 tor EXISIJng Schools and Acqulnng School Buses S 4206779500 S 42067795OO! 943004704 Ongomg Rellnng a portion of the SchoOl D1stnct's General Obligation Bonds dated September 1 1976 General Obll9a'lOO Retundll"l9 Bonds dated December 1 1992 General ObllgalJOn Refunding Bond s SC!rles 1993 General Obllgallon Refunding Bonds Series 1994 A and General Obllgabon School Refunditl9 Bonds Senes 1998 by pa)1Og or mall.l'\Q provIsIOn lor the payment of the pnnapal of anCl Interest on such bonCIs comang due on Apnl 1 2003 waugh OctOber 1 2007 27932,205 00 2793220500 Ongoing $ 11887500000 $ 119779.92587 $ 1694768759 $ 3789299669 (11 The SctIool Dlstnd s anginal ~t estlmate as sPeOfted In the resolubOn calling for the ImposrtlOn of the Local Option Sales Tax (21 The SChool Dls.\'rn:t's current e5tlmale of total cost for the pro,ects Indudes all cost from pro,ect Inception 10 com~n (3) The voters of Columbia County approved the ImpOSItIOn of a 1% sales tax 10 fund the above prOjects Amounts expended 1(If these proteds may mdude sales lax pl'oceeds state local property tax~ andlor ottler funds over the life of the pro,ted (4) In addition to the eXpenditures shown iltx:lVe the School Dlstnd has mcurred Interest expense to provide advanced funding for tt1e above prOjects as folbNs Prior Years s 276578 Current Year Total 000 s _ _..2~,;.:76",6~7.::.6 (5) Land was donated 10 the Board m December 1998 for the purpose of construCMg a school See notes to Ihe baSiC financial statement!; 39 COLUMBIA COUNTY BOARD OF EDUCATIQN GENERAL FUND. aUALITY BASIC EOUCATION PROGRAM lOBE) ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDER JUNE 30 2002 SCHEDULE "5" DESCRIPTION Direct InstrudJonal Programs Kmdergarten Program Kmdergarten Program-Ear1y Intervenhon Program Pnmary Grades (1-3) Program Pnmary Grades-Earfy Intervention (1-3) Program Upper Elementary Grades (45) Program Upper Elementary Grades-Earty Inlervenbon (04-5) Program Moddle School (6~) Program Htgh School General Educahon (9-12) Program Vocational laboratory (9-12) Program Students With Dlsabllrttes GalegOl)' I category II category 111 GalogOl)' IV Galogory V Gifted Student - Category VI Remedial Education Program Alternative Educabon Program English Speakers of Other Langual/OS (ESOL) TOTAL DIRECT INSTRUCTIONAL PROGRAMS Media Center Program Staff and ProfesSIOnal Development ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS SALARIES OPERATIONS TOTAL S 5.277 177 00 S 512924169 S 20197580 S 5331217 49 28762200 294 142 52 331803 29746055 12667758 00 1387534489 504 396 42 14379741 31 918784 00 917 121 44 1505894 932 18038 6947617 00 810232334 33384261 8436 16595 560 141 00 12081 60700 11 279929 00 1 755 14800 651631600 1 290,800 00 77 274 00 930 081 00 7874000 662 134 66 1325771905 12,831 221 77 1845551 72 35241972 98924284 496196704 200 404 39 158 307 38 127804378 10099249 1012594 20 15040555 1244193 709 022 53 1 034 558 34 22475166 8963 13 1362564 160 663 48 39796 87 101 326 83 29580 2165354 465016 67457659 13966,74158 13865780 11 207030338 361 382 85 100286848 512263052 240201 26 15830738 1 37937081 101 28829 1034 247 74 15505571 S 60 666 794 00 S 6611917847 S 339034171 S 69509 52018 1 977 861 00 350 901 00 2364 455 B8 108,&4161 36712857 253796 77 2731 584 45 362 638 38 TOTAL aBE FORMULA FUNDS s 62,995556 00 S B8 592 475 96 S 4011 26705 S 72 603 743 01 (1) Compnsed of State Funds plus lcx:al Frve Mill Share see notes to the ba6IC finanaat !Statements 40 - COLUMBIA COUNTY BOARD OF EDUCATION GENERAL FUNp - OUALITY BASIC EDUCATION PROGRAM (aBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30 2002 SCHEDULE "6" Greenbner Middle School Weslmont Elementary School Evans Middle School Harlem HI9h School Evans Elementary School Blue Rldge Elementary School lakeside HI9h School Brookwood Elementary School Stevens Creek Elementary School Riverside Middle School RIversIde Elementary School Greenbner HI9h School Harlem Middle School Lakeside Middle School Greenbner Elementary School Euchee Creek Elementary School Bel Air Elementary School Columbia Middle School Marllnez Elementary School North Columbia Elementary School Evans HI9h School North Harlem Elementary School Grovetown Elementary School South Columbia Elementary School Columbia County CrossRoads Academy Central OffIce (Allernatlve Education Program) Other AUXIliary FaCIlity TOTAL (1) Compnsed of Stale Funds plus Local FIve Mill Share ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE aBE PROGRAM COSTS $ 2,097,534 00 $ 2,49164936 2244 984 00 2615799 54 2,178,82900 260121517 2,717,961 00 3376,96279 1,530,62900 1904,046 62 2,653,862 00 3,04306088 4,211,977 00 4877,23861 2,486,08300 2,632,56334 2,727,41000 2,805,485 87 2,787,71800 3,351,671 74 2,922,691 00 3,146,78919 3,837,47100 4465,664 24 2588,15500 294552922 2,727,56700 3,115,14830 2,13364900 2,298,372 29 1,67019000 1,945,937 14 2,313,02600 2,541,695 93 2,088,598 00 2,387,10581 1,881,56000 2,286 10208 1,544,094 00 1786,11574 4651,938 00 5692594 07 1,932436 00 2,218,36383 1,91024700 2,168,982 71 1,898 104 00 2,15232672 546 69272 930,081 00 40,18304 72,22323 $ 60,666,794 00 $ 69 509,520 18 See notes to the baSIC financial statements - 41 - SECTION II COMPLlANCF AND INTERNAL CONTROL REPORTS (1I:-... ~11 W. HI:-'Io" '> lATE AlJ[liT(lFl fl().l.lr~ 2,", DEPARTMENT OF AUDITS AND ACCOUNTS 2"4 W..l.. hmg.lon ~lrLt.:l ~ W ~lI1lC :21.:1AIIJnIJ. GeorglJ 3OJ14-lWOO May 16.2003 Iionorable Sonny Perdue. Governor 1\1ember of the lieneral A~,>embly I\kmber of the State Board of Education and ~upcnntendl'nt and Members of the (,olumbta Lounty Aoard of l:ducallon REPOR I ON COMPI lANCE AND ON IN I ERNAL CON'I ROt OVLR rINI\NCIAI or gEPOR liNG BASED 01\ AN AUDIT FIN <\ '\'CIAL S I ATLME\: I S I'I-RroRMr:D 1'\1 ACCORDANCT WI n I GOVI::RNMtNT AUDITING S'I ANDARDS I ,Idle... and Gentlemen \h: hm e audiled the ba~le linanewl ~tatement~ of ColumbIa County Board of[,dueatlon a'> ofand for the ~ear ended June 30. 2002. and have I~~ued our report thereon dated May 16. 2003 We LOndueted our audit m accordance with audllmg ;tandards gencrally accepted m the IJl1Ited State~ of Amenla and thc ~tandards appllcablc to financial audlh contamed m Government Audltm!) Standard.... ",ued by the Comptroller General 01 the lll1lted State~ Lomphance A'> part of obt3ll1lng rea'>onabk as~urance about whether Columbia County Board of Educatlon'~ ha~ll finanCIal ~tatemenh are free of matenal ml~~tatement. we perlormed test... of It~ compllanle vv Ith certam provl~lon,> l,f law~. regulation'>. contracts and grant>. noncompllancc with whIch could have a dlrcct and matenaldlect on the determlllatlOn of tinanel3l ~tatement amount; However. prov Idmg an opmlon on complldnce with tho~e provIsion,> was not an (,bleetlve of our audit. and accordingly. we do not e'press ~ulh an 0p111l0n The re dl~c1osed no m~tance~ 01 nonlllmpllance that are reqUlrcd to be rcported under Government Audltmg Standard< Internal Control Over rmanclal Reportmg In plannmg and pcrlormmg our dud It. we conSidered ColumbIa County Board ofEducatlon\ mtemal lontrol over finanCial reportmg m order to dctennlllc our audltlllg procedures for the purpomg our 01'111 Ion on the baSIC financwl ,>tatemenlS and not to prO\ Ide a'>surance on the mtemal control O\er tinanclal reportlllg Ilo'vever, we noted a certam mailer IIlvolV'lng the IIlternal control over linanel3\ rcportmg and Its operation that v.e conSider to he a reportahle conditIOn Reportable 2002YB-41 cOnLlitlon~ Involve matters coming to our attentIOn rdatlng to slgmficant deliclcnclCs In the de~lgn or opcratlon of the Internal control ovcr finanCIal reporting that. In ourJudgment. could adversely alYect Columbia County Board of EducatlOn'~ability to record. process. summanze and report linanclal data con~l~tent with assertions of management In the financial statemcnts The reportahle condition IS de~cnhed In the accompanYing Schedule ofFlndlng~ and Questioned C()~ts as Item FS-6361-02- 01 A matenal wea"-nes, IS a condition In which the de'lgn or operation of one or more of the Intcrnal control componcnts does not reduce to a relatlvel) 10\\ level the n~"- that ml~statements In amount~ that \\ould he matenal In relatIOn to the baSIC financial statement~ being audited may ocwr and not be detected within a timely penod by cmployee~ In the normal cou~e "I performing their assigned functlon~ Our con~lderatlon of the Internal control over financial reporting would not nece~~ardy dl~cIose all malter~ In the Internal control that might be reportable conditions and. accordingly. would not necc~~nly disclose all reportable conditIOns that are also con~ldered to be matenal wcaknesses However. we conSider l!em ~ S-6361-02-0 I to be a matenal wca"-nes~ Thl> rcport IS Intended ~olcly for the Inlormatlon and u~c of the management. membcrs of thc Columbia County Board of FducatIOn. Federal awarding agencies and pass-through entltle~ and IS not Intendcd to be and should not be used hy anyone other than the~ ~peeIfied partle~ Respectfully ~ubmlttcd. -. ~.~ Ru ell W Hinton Statc Auditor RWII gp 2002YB-4\ tl"HI W.lhl'ol()~ >' STATE AU["lITon '_r,.:l} r;~r,. 1_ DEPARTMENT OF AUDITS AND ACCOUNTS '2)4 WJ'\hmgton ""treel ~ W 'lull\: ~ 14 A,ld"'d, ('Corgl,1 JtJ,,4-~4tJtJ May 16.2003 I lonorahk Sonny Perdue. Governor ~1cmhcrs ol the (Jeneral Assemhly t\kmhcr, 01 the State Board 01 Lducatlon and SuperIntendent and Members of the Columhla County Board of EducatIon KLI'ORT ON COMPLlANC!: WITII RFQl'lREMloNTS APPLICABI E TO EACII MA,.JOR PROGRAM -\ND ON I:--JTCR~'\L Cor-rt ROL OVER CO\1PLlN>1CE Il'\ ACCORDANCI, WITH OMB CIRCULAR A-I33 I adle., and Gentlemen ComplIance We have audited the complIance of Columhla County Board of Fducatlon with thc type, of LLlmpllanll: requlrcment~ de,cnbed In the US O/fiu: lif MlIllugemelll ulld BudKel (OMB) ('11 { /11m 1-133 ('ompllUll{ e Supplemelll that arc applIcable to each 01 Its malor redcrdl program~ lor the year cnded June 30. 2002 ColumhIa C{lunt) Board ofCducatlOn', major Federal program~ arc Identified In the Summa,! of Auduor'~ Re,ult, Section of the accompan) Ing Schedule 01 FmdIng., and Questioned Costs ComplIance with the requIrements of law,. n:gulatlon~. contract~ and grants applIeahle to each ofll'> major Federal program., IS the respon"bllIly ofColumhla Ctmnty Hoard of Education', management Our respon~lhllItyI~ to c"pre,s an opmlOn on Columhla County Board of r dueatlon's complIance ba,ed on our audIt We LOnducled our audit of complIance m accordance With audltmg standard, generally accepted m the tinued Stales of AmerIca. the ,tandards applIeah1c to financial audits eontamed m Govcrnment -\udltmg Standards. I"ued by the Comptroller General ofthc Umted ~tates. and OMB Circular A133. Audl" of .\101<.'1, Loull Go\'('rnm<.'nll, lIlld XVIl-Profil OrKtllu=ul/(}1l1 Those standard, and OMI3 Circular A-I33 requIre that we plan and perform the audit to obtam rea~onahle as~urance ahout whether noncompliance With the type, ofcomplIance rcqulrement' rclerred to above that could have a direct dnd materIal efku on a major Federal progmm occurred An audIt mclude, eXdmmmg. on a te,t ba".,. eVIdence ahout the Columbia County Board of Fducatlon', complIance wuh thosc reqUlrcments and perlorrnmg ,uch other procedures a, we considered nccessary m the clreum,tances We bellcve that our audll proVIdes a reasonable basiS for our opmlon Our audit does not pro\ Ide a Icgdl dcterrnmatlon on Columhla County Board of Educatlon\ complIance With those reqUIrements 2\l\l2SA-IO In our OpinIOn. the Columhla County Board olTducatlon complied. In all matcnal respect~. with the requlrcments referred to abo\ e that are applicable to each ollt~ major Federal program~ for the ye The auditor's opinIOn on the Columbia County Board of Educallon's report on complIance WIth reqUirements applIcable to major programs was unqualIfied 6 Audit Findings ReqUIred to be Reported bv Secllon .51O(a) ofOMB Circular A-133 The Columbia County Board ofEducallon's audit did not diSclose audit findings reqUired to be reported by secllon 51O(a) ofOMB Circular A-133 7 Malor Programs Fcderal awards audited as major programs are as follows 10550 Food and NutntlOn Program - Food Services - foood DIstribution Program 10550 Food and NutntlOn Program - Food Servlccs - Fre~h Produce Program 10553 Food and Nutntlon Program - Food Services - School Breakfast Program 10555 Food and Nutntlon Program - Food Scrvlces - Nallonal School Lunch Program 8 Type"A" Program Dollar Threshold The dollar threshold for type "1\" programs was $300,000.00 9 Low Rlsx Audltce Thc Columbia County Board of EducatIOn qualIfied as a low nsk audltee as defincd b) Secllon 530 of OMB Circular 1\-133 -I- rOLUMBlA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDED JUNE 30. 2002 II I'INANCIAL STATEMCN r FINDINGS AND OUES nONED COSTS CASH AND CASH EQUIVALENTS REVENUEJRECEIVABLES/RECEIPTS EXPENDITURES/LiABILITIESIDISI3URSEMENTS Inadequate Internal Control Procedures Reportable Condillon - Matenal Weakness Fmdmg Control Number FS-6361-02-01 Our exammatlOn of the pnnclpal's accounts disclosed weaknesses m mternal control a~ discussed below Ca~h and Cash EqUlvalent~ The bank reconcilIation funcllon IS not separated from the record keepmg and voucher payment functions Revenues/Receivables/Receipts DeposIt preparallon wa~ not separated from the rccord keepmg and cash custody functions Based on a sample of 50 Items. four receipts did not contam supportmg documentation ExpendlturesILlabllltles/Dlsbursements The check \\T1tmg function was not separated from the record keepmg or processmg of Signed checks , Four vouchers were charged to Incorrect acllvlty codes and one voucher did not indicate an actlVlty code These defiCienCies were a result of management's deCision to limit the number ofadmlnIstrallve staff made re~ponslble for the accounting functions and their failure to ensure establIshed controls were functIOnIng as deSigned Management should Implement additional procedures to ensure that the key accountmg funcllons of custody, record keeping and authorizatIOn are segregated Management'~ Response Each school has a local principal's account u~ed to collect money from students for vanous fundralsers for the school The proceeds are spent on medIa center matenab. mstructlonal supplIes and other school needed supplIes There IS lImIted admlnlstTallve staff to completely segregate all dutlcs related to the local pnnclpal account but there are accounting procedures all schools are reqUIred to follow Some of the procedures in place are - :! - COLUMBIA COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS YEAR ENDI::D JUNE 30, 2002 II FINANCIAL S rATEMENT FINDINGS AND QUESTIONED COSTS CASH A~D CASH EQUIVALENTS REVI::NUE/RECEIVABLI::S/RECEIPTS EXPI::NDITURESILIABILITIES/DISBURSfMENTS Inadcquate Internal Control Procedures Reportable Condition - Material WealJless Finding Control Number' rS-6361-02-01 All money IS recclpted by a teacher and then the bookl..eeper All money must be turned Into the office dally and deposIts mu~t be made dally If over $100 [hc pnnclpal receIves the bank statement unopencd and reVIews before forwarding to the bookl..eeper The bookkeeper reconciles the bank statement monthly and ties thc ending cash balance back to her monthly financial report A quarterly financIal report IS revlewcd and ~Igned by thc pnnclpal and forwarded to the central office for review Pre-numbered tickets are aS~lgned to the school~ to use for dance~, athletic events, plays, ctc All numbcrs are accountcd for and tied back to a ticket reconciliation report The principal has the only signature authonty on the checks and all cxpenses reqUired a recclpt or inVOice The school system's Internal audItor audits evcry local pnnclpal's account cach year The audIt report Includes an annual finanCial statement along With any devlatlOn~ from the county's accounting procedures 'I hc auditor and the controller go over the audIt report With the pnncipal If there arc ~Igmficant findings In the audit, the controllcr Will notc these In the annual pnnclpal's evaluatIOn III FI::DERAL A WARD FINDINGS AND OUESTIONED COSTS No matters wcre reported -3-