Crawford County Board of Education, Roberta, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2002

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CRAWFORD COUNTY BOARD OF EDUCATION - TABLE OF CONTENtS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

CRAWFORD COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133

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

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.w. SUIte 214 Atlanta, GeorgIa 30334-8400
August 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Crawford County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATlONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Crawford County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Crawford County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Crawford County Board of Education as ofJune 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated August 5, 2003, on our consideration of the Crawford County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Crawford County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing
2002ARL-13

procedures applied in the audit ofthe general-purpose fmancial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such infonnation is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,
w~
ell W. Hinton Auditor
RWH:gp 2002ARL-13

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS (Memorandum Only) JUNE 30, 2002 JUNE 30, 2001

$

15,38674

$ 1,579,667.62 $ 2,311,517 52

1,556,956 68

1,917,963.11

989,496 34

591,48860

17,51475 6,754 96

11,788.44 4,935.72

$

38674

38674

15,57923

839,61326 451,324.89

839,61326 451,32489

924,420.77 327,06571

$

15,386 74 $

1,291,324 89 $ 5,441,71524 $ 6,104,75910

$

15,00000

$

$
451,32489 840,00000

111,20397 $ 338,78075
82,699 70
279,004 34
104,23783 451,32489 840,00000

64,672 15 74,37467 69,21819
6,508 72 292,413.60 311,597.40
327,06571 940,000 00

$

15,00000 $

1,291,32489 $ 2,207,251 48 $ 2,085,850.44

$

38674

000

$

38674

$

14,341 46

$

386.74

15,57923

17,51475 6,754 96
687,05417

11,78844 4,93572 1,404,352 66 848,900.74

2,522,75314

1,719,010.41

$ 3,234A6376 $ 4,018,90866

$

15,386 74 $

1,291,324 89 $ 5,441,71524 $ 6,104,75910

- 3-

CRAWFORD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Currant Instruction Support ServiceS Pupil Services Improvement of Instructional Services Educational Media Services General AdminIStration School Administration BUSiness Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
PnnClpal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 9,679,450 20 $
3,158,32999 318,77249
$ 13,156,55268 $

484,521.64 1,391,334 60
359,12608
2,234,982 32

$ 8,350,833.10 $ 1,002,31446

89,12295 250,27217 216,596 61 336,24305 988,552.34 134,04143 962,664.44 912,845.82

37,94369 201,34347
73,64255 19,38608

34,69597 42,405.00

1,006,793 43

146,59882 23,218.18

$ 12,488,08988 $

$

668,46280 $

2,341,42368 -106,441 36

$

270,85800

$

-145,91425

$

124,94375 $

$

793,406 55 $

1,636,636 79

145,91425
145,91425
39,47289 69,564.65
5,72631 1,81924

FUND BALANCE JUNE 30

$ 2,430,04334 $

The notes to the general-purpose finanCial statements are an Integral part of this statement -4-

116,583.09

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,168,67700
364,499.42 $ 175,77603
$ 1,708,95245 $

$
129,980.90 11403

11,332,648 84 $ 1,391,334 60 3,652,81031 853,78863

12,195,84914 1,510,43664 3,406,02073 649,21611

130,094.93 $ 17,230,58238 $ 17,761,522 62

$ 3,318,62985 $
$ 3,318,62985 $ $ -1,609,677 40 $

$ 9,353,14756 $ 8,479,865 13

127,066 64 451,61564 216,596 61 409,88560 1,007,938.42 134,04143 962,664.44 912,845.82
34,695.97 1,006,793 43 3,361,034 85

276,777 44 857,31339 196,41422 366,283.48 786,10605 122,86981 926,064.57 880,053.19
23,096 76 42,64989 1,035,093 37 3,397,45035

100,000.00 44,556.00
73142

246,598.82 67,77418 731.42

213,92893 61,948 20 98881

145,28742 $ 18,293,430 83 $ 17,666,90359

-15,19249 $ -1,062,84845 $

94,619.03

$ -1,609,677 40 $ 2,297,127.99

$

270,85800 $

284,559 00

145,91425

820,204.10

-145,91425

-820,20410

$

270,85800 $

284,55900

-15,192.49 $ 15,579.23

-791,990 45 $ 4,018,90866

379,178 03 3,632,675 87

5,726.31 1,81924

5,14258 1,91218

$

687,45059 $

38674 $ 3,234,463 76 $ 4,018,908 66

- 5-

CRAWfORD COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2902

EXHIBIT"Cn

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 9,457,44800 $ 9.679,450 20

2.892,641 03

3,158.329 99 318.77249

Total Revenues EXPENDITURES

$ 12,350.08903 $ 13,156,55268

Current Instruclion Support ServiceS Pupil SeMCeS Improvement of InstruClional Services Educallonal Mecha Services General Administration School Administration BUSiness Admlmstrallon Maintenance and OperalJon of Plant Student TransportatlOll Services Other Support ServiceS Food Servtces Operation
Capital Outlay Debt Service
Total Expenditures

$ 8,374.921 35 $ 8.350.833 10

51,62300 495.24175 222.78754 292,46395 873,69345 215.677 88 1,018,442 11 825,06366
29900

89,122 95 250,27217 216.596 61 336,24305 988,55234 134.04143 962.664 44 912,84582
34,69597

42.40500 169,817 00

$ 12,370,21369 $ 12.488,08988

Excess of Revenues over (under) Expenditures

$

-20,12466 $

668,46280

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

270,85800

-145,91425

Total Other FinanCing Sources (Uses)

$

124,94375

Excess of Revenues and Other FinanCing Sources over (under) Expenditures and Other FinanCing Uses $

-20,12466 $

793,406 55

FUND BALANCE JULY 1 2001

1.640,009 26

1,636,636 79

Food Inventory - Net Change In Penod Donated Commodities Purchased Food

FUND BALANCE JUNE 30 2002

$ 1,619.884 60 $ 2,430.043 34

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 52,07500 $ 484,52164 1.391,334 60

357.04702

359,12608

$ 409,122 02 $ 2,234.982 32

$ 66.71843 $ 1.002,31446

3,094 20

37,94369 201.34347

73,64255 19,386 08

986.27458

1.006,79343

$ 1,056,087 21 $ 2,341.42368 $ -646,96519 $ -106,441 36

$ 145.91425

$ 145,91425

$ -646.96519 $ -57.69092

39,472 89 69,564 65

5,726 31 1,81924

$ -704,656 11 $ 116,58309

The notes to the general-purpose finanCial statements are an Integral part of thiS statement -7-

---------------------

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Crawford County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To confonn to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confonn to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

CRAWFORO COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction ofmajor capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
- 9-

CRAWFORO COUNTY BOARD OF EOUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 200 I and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Crawford County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial
- 10-

",

CRAWFORD COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

- 11 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Crawford County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on September 18,2001 (levy date). Taxes were due on December 20,2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Crawford County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $3,158,329.99 and for school bonds amounted to $1,057.04.

The tax millage rate levied for the 2001 tax year (calendar year) for the Crawford County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15.0 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $493,423.28 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

COMPENSATED ABSENCES

Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.

- 12 -

CRAWFORD COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. 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 ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZAnON OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool of public funds shall be not less than 110 percent ofthe daily pool

- 13 -

CRAWFORD COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS
balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts,
Acceptable security for deposits consists of anyone of or any combination of the following:
(l) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $3,939,712.73, The amounts ofthe total bank balances are classified into three categories of credit risk:
Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)
- 14-

CRAWFORD COUNTY BOARD OF EDUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS

The School District's deposits are classified by risk category at June 3D, 2002, as follows:

Risk Category

Bank Balance

1

$ 200,000.00

2

0.00

3

3,739,712.73

Total

$ 3.939.712.73

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.

The School District has obtained commercial insurance for risk ofloss associated with torts, assets and errors or omissions. The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk in the past three years.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

2001 2002

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

2,539.42 $

$

0.00 $

0.00 $

Claims Paid

End of Year Liability

2,539.42 $

0.00

0.00 $

0.00

- 15 -

------------------------_._----- - - - -

CRAWFORD COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of$350,000.00 loss per occurrence, up to the statutory limit.

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

Position Covered Blanket Bond (All Employees)

Amount $ 250,000.00

Note 5: GENERAL LONG-TERM DEBT

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

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

Purpose General Government - Refunding - Series 1998

Interest Rate 4.74%

Amount $ 840,000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2001

$ 327,065.71 $ 940,000.00 $ 1,267,065.71

Additions Capital Leases

270,858.00

270,858.00

Deductions Debt Retired
Balance June 30, 2002

146,598.82

100,000.00

246,598.82

$ 451,324.89 $ 840,000.00 $ 1,291.324.89

- 16-

CRAWFORD COUNTY BOARD OF EOUCAnON

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2009

$ 169,817.00 $ 144,816.00 $ 314,633.00

147,557.92

139,839.00

287,396.92

124,232.86

144,862.00

269,094.86

59,461.35

144,411.00

203,872.35

143,723.00

143,723.00

289.434.00

289.434.00

Total Principal and Interest $ 501,069.13 $ 1.007,085.00 $ 1.508,154.13

Deduct: Imputed Interest

49,744.24

Net Present Value of Future Minimum Lease Payments $ 451.324,89

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $152,646.11 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of$130,585.1l

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $22,061 ,00

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

- 17 -

CRAWFORD COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7: CONTINGENT LIABILITIES
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
Note 8: SUBSEQUENT EVENTS
On November 5, 2002, the voters of Crawford County voted in favor of a Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition of the tax approved, as stated on the Official Ballot of Crawford County, is as follows:
"Shall a special one percent sales and use tax be reimposed in Crawford County for a period of time not to exceed 20 calendar quarters (5 years), beginning upon the exhaustion of the existing sales and use tax, for the purpose of raising not more than $3,500,000 ofnet proceeds by said tax, to be used for acquiring new land for future schools; acquiring, constructing, and equipping ofa new elementary school; adding to, renovating, repairing, improving, furnishing and equipping existing school buildings and other buildings and facilities useful or desirable in connection therewith included but not limited to, athletic/physical education facilities; systemwide technology improvements; acquiring any property necessary or desirable therefore, both real and personal and payment of a portion of principal and interest on the School District's General Refunding Bonds, Series 1998, the maximum amount ofthe projects to be paid with sales and use tax proceeds will be $3,500,000".
Note 9: ACCUMULATED EMPLOYEES' LEAVE
At retirement, an employee with a minimum of five years of full time service with the Crawford County Board of Education will be eligible to sell a maximum of 45 days of unused sick leave earned in Crawford County. Days will be bought back at half the current substitute pay for the position held by the employee at the time of retirement. An employee must have accumulated a minimum of 20 days to be eligible for this buy-back provision. See Note 1 - Compensated Absences
Note 10: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
- 18 -

CRAWFORD COUNTY BOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 10: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 687,808.73 $ 805,913.72 $ 733,775.82

- 19-

- - - - - - - - - - - - - - - - - - - ---_. - - _. - ..
CRAWFORD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

144,071.92 $

83,609.98

17,509.35

1,764.00

17,514.75 6,754.96

Total Assets

$

185,850.98 $ -===85:!:,3=7..3....9..8. ==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 20-

$

30,754.49 $

85,373.98

38,513.40

$

69,267.89 $

85,37398

$

17,514.75

6,754.96

92,313.38 $

0.00

$

116,583,09 $

0.00

$

185,850.98 $ ===8=5",",3=7=3.=98~

EXHIBIT "E"

FEDERAL
PROGRAMS

TOTALS

JUNE 3D, 2002

JUNE 3D, 2001

$

227,681.90 $

53,101 88

$

276,625.05

295,89840

217,272.55

17,514.75 6,754.96

11,788.44 4,935.72

$

276,625.05 $

547,850.01 $=====2=8=7=,O=98=.=59m,

$

87,80250 $

87,802.50 $

117,774.03

40,398.42

156,526.89

24,033.00

44,186.30

82,699.70

69,218.19

6,508.72

104,237.83

104,237.83

$

276,625.05 $

431,266.92 $

217,533.94

$

14,341.46

$

17,514.75

6,754.96

11,788.44 4,935.72

$

000

92,313.38

38.499.03

$

000 $

116,58309 $

69,564 65

$

276,625.05 $

547,850.01 $===2=8;,;"7,,,,",0;;;,;98;,;;.5=9=

- 21 -

CRAWFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Student Transportation Services Food Services Operatton
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

69,032.00 $

632,449.70

359,126.08

$ 1,060,607.78 $

415,489.64 415,48964

$

$ 1,006,793.43

$ 1,006,793 43 $

$

53,814.35 $

485,435.23 26,395.59 271.97 19,38608
531,488.87 -115,999.23

115,99923

$

53,814.35 $

0.00

55,22319

0.00

5,726.31 1,819.24

FUND BALANCE JUNE 30

$

116,583.09 $ ......===0;;,;.,;;;00=

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

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ .484,521.64 $

439,317.00

$

758,884.90

1,391,334.60

1,510,436.64

359.126.08

368,783.67

$

758,884.90 $ 2,234,982.32 $ 2,318.537.31

$

516,87923 $ 1,002,314.46 $

730.361.50

11,548.10 201.071.50
73,642.55

37,943.69 201.343.47
73,642.55 19,386.08
1,006,793.43

62,377.67 417,900.28 103.150.61
6,581.64 37.50
1,035,093.37

$

803,141.38 $ 2,341 ,423.68 $ 2,355.502 57

$

-44,256.48 $

-106,441.36 $

-36,965.26

29.915.02

145,914.25

$

-14,34146 $

14,341.46

39,472.89 $ 69,564 65

5.726.31 1,81924

70.204.10
33,238.84 29,27105
5,142.58 1,91218

$

0.00 $

116,583.09 $ ===6_9olC,5=64~65==

- 23-

CRAWFORD COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

396.42

_ _ _ _ _ _ $ _ _...::3:.:::8.:J3,<=6..:.;16:.:..0::.:0~

Total Assets

$

396.42 $===38::::::::i3,=6:::::16:::0=0=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retarnages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund EqUity
Total liabilities and Fund Equity

$

307,816.00

75,800.00

$

383,616.00

$

39642 $

$

396.42 $

0.00 000

$

396.42 $ = =.3.8.=:3=,6::::16=.0;;,;0...

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

196,21561 $

196,612.03 $ 1,612,991.46

600,004.16

600,004.16

1,067,963.11

170,988.74

554,604.74

220,184.42

$

967,208.51 $ 1,351,220.93 $ 2,901,138.99

$

307,816.00

$

1,15000

76,950.00

279,004.34

279,004.34 $

292,413.60

311,59740

$

280,154 34 $

663,770.34 $

604,011.00

$

687,05417 $

687,054.17 $ 1,404,352.66

848,900.74

0.00

396.42

43,874.59

$

687,05417 $

687,450.59 $ 2,297,12799

$

967,208.51 $ 1,351,220.93 $ 2,901,138.99

- 25-

CRAWFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 3D. 2002

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

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$ 1,168.677.00

$

92.68648

12.94535

$

92.686.48 $ 1.181.622.35

$

1,408.83

53.324.00

$

136.164 65

1.949.866.26

25.924.00

$

136.164.65 $ 2.030.523.09

$

-43,478.17 $

-848,900.74

$

-43,478.17 $

-848.900.74

43.874.59

848.900.74

$

396.42 $ =====0.=00==

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,168,677.00 $ 2,570,213.00

$

364,499.42

364,499.42

359,519.62

70,144.20

175,77603

129,137.19

$

434,643.62 $ 1,708,952.45 $ 3,058,869.81

$

489,413.95 $

490,822.78

53,324.00 $

97,499.66

660,078.16

2,746,109.07

3,299,950.69

2,450.00

28,374.00

$ 1,151,94211 $ 3,318,629.85 $ 3,397,450.35

$

-717,298.49 $ -1,609,677 40 $

-338,580.54

750,000.00

$

-717,29849 $ -1,609,677.40 $

411,419.46

1,404,352 66

2,297,127.99

1,885,708.53

$

687,054.17 $

687,45059 $ 2,297,127.99

- 27-

CRAWFORD COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET DEBT SERVICE FUND JUNE 30, 2002

EXHIBIT "I"

Cash and Cash Equivalents Accounts Receivable

DEBT SERVICE
FUND

SPECiAl PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

386 74 $

15,00000 $

15,386.74 $

15,553,82

2541

Total Assets

$

386 74 $

15,000 00 $

15,386 74 $ ==1~5~,5~79~23~

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable
FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undeslgnated
Total Fund EquJly

$

15,000 00 $

15,00000

$

38674

0.00 $

$

386 74 $

$ 000 000 $

38674 $ 000
38674 $

15,57923 000
15,57923

TotalllabihtleS and Fund Equtly

$

386 74 $

15,000.00 $

15,386 74 $===15~,5=7=9=23a..

See notes to the general-purpose finanCial statements

- 28-

CRAWFORD COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30, 2002

EXHIBIT "J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt service
Pnncipal Interest PaYJng Agent Fees
Total Expenditures
Excess of Revenues over (under) expenditures
FUND BALANCE JULY 1

DEBT SERVICE
FUND

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

1,05704 $

128,923,86 $ 129,98090 $ 140,844 58

11403

11403

53090

$ U7107 $ 128,923.86 $ 130,094,93 $ 141,37548

$ $ 15,632 14
73142
$ 16,36356 $
$ -15,19249 $
15,57923

100,000 00 $ 28,92386
128,923.86 $ 000 $ 000

100,00000 $ 44,556 00
73142
145,28742 $
-15,19249 $
15,57923

95,00000 49,05900
98881
145,04781
-3,67233
19,251 56

FUND BALANCE JUNE 30

$

38674 $

000 $

386 74 $=.....1=5=,5=7;:9.2..3=

See notes to the general-purpose financaal statements

- 29-

CRA~ORDCOUNTYBOARDOFEDUCAnON
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

Agnculture, U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of Educatton Food and Nutrillon Program Food serviceS School Breakfast Program Nallonal SChool Lunch Program

10553 10.555

Total Child Nutrillon Cluster

Other Programs Pass-Through From Georgia Department of Educallon Food and Nutnllon Program Food Distnbullon Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult care Food Program

10550 10,558

Total U S. Department of Agnculture

Education, U S Department of SpeCIal Educallon Cluster Pass-Through From Georgia Department of Education Individuals with DlsablhlJes EducalJon Act Part B - SpeCIal Education Flow Through Preschool CapaClly Building Improvement

84.027 84.173 84173

Total Spedal EducalJon Cluster

Other Programs Direct Elementary and Secondary Educallon Act Fund for the Improvement of Education Pass-Through From Georgia Department of Education Comprehensive School Reform DemonstralJon Project Elementary and secondary Education Act !llie I Grants to Local Educational AgenCies !llle II Eisenhower ProfeSSional Development TIlle VI Class Size Reduction Goals 2000 State and Local EducalJon Systemic Improvement Grants Vocational Education - BaSIC Grants to States High School Program Basic Grant

84 215K 84,332
84010 84 281 84.340
84 276
84 048

Total U. S Department of Educallon

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NlA $ 159,738.00

NlA

406,706.89 $

$ 566,444 89 $

(2) 951,11619 (3)
951,11619

NlA

55,677.24

55,677.24

NlA

10,327.57

$ 632,44970 $

(2) 1,006,79343

NlA $ 112,817.79 $

NlA

11,505.84

NlA

1,250 72

$ 125,57435 $

112,817,79 11,50584 1,25072
125,57435

98,97206

NlA

85,309.63

NlA

310,092,11

NlA

7,29053

NlA

43,380.06

NlA

52,53290

NlA

35,73326

$ 758,884 90 $

98,972,06 89,78751 (3)
310,09211 15,862.91 (3) 43,38006
58,301 98 (3)
35,73326 777,704 24

Total Federal Flnanclal Assistance
NlA = Not Available

- 30-

$ 1,391,334 60 $

1,784,497 67

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2002

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food DlStnbutlon Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year
(2) expenditures for the Child and Adult care Food Program and the School Breakfast Program were not maintained separately and are Included In the 2002 National SChool Lunch Program
(3) Expenditures for this program Include State. andtor Other Funds. Expenditures are not maintained by fund source
Major Programs are Identified by an astensk (*) In front of the CFDA number
The School Dlstnct did not provide Federal AsSistance to any SubreClpl8nt
The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Crawford County Board of Education and IS presented on the modified accrual baSIS of accounting which IS the baSIS of accounting used in the presentation of the general-purpose finanCial statements

See notes to the general-purpose financial statements

- 31 -

CRAWfORD COUNTY BOARP OF EPUCAUON SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCYIFUNDING
GRANTS Community AffairS, Georgia Department of Governor's Emergency Funds Local Assastance Grant
Education. Georgia Department of Quality BasIC Education Direct Instruc\Jonal Cost Ktndergarten Program Kmdergarten Program - Early InterventIOn Program Pnmary Gradas (1-3) Program Pnmary Grades - Early InterventIOn (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades -Early Intervenbon (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocabonal Laboratory (9-12) Program Students With Dlsablhtles Category I Grfted Student - Category VI Remedl8l EducatIOn Program Altemabve Education Program Media Genter Program Staff and ProfessIOnal Development Indirect Cost Twenty Day Addlbonallnstrucbon Categoncal Grants PUpil Transportabon Regular Bus Replacement Sparsity Nursing ServlCBS Pnnapal Supplements Vocallonal SUperviSOrs MId-term Adjustment Hold-Harmless Education Equahzabon Funding Grant Food Serw:es Vocallonal Educabon Other State Programs Health Insurance Middle School Mentonng Program Preschool HandlCBpped Program Remedl8l Summer SChool Lottery Programs Ass!sbve Technology Computers In the Classroom
Georgl8 State Financing and Investment CommiSSIon Retmbursement on Construction Pl'Oj8cts
Office of School Readiness Pre-KJndergarten Program
Office of Treasury and Fiscal ServiceS PubliC School Employees Rellrement
CONTRACT Education. Georgl8 Department of 4-5 Statewide After School Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

10,500 00

15,00000

$

10,500 00

15.00000

369,53200 100,41900 1,120,47000 233.98700 587.25800
110.45900 1.068.62800
823.19500 320,90300
1,132,690 00 131,06500 15,23200 77,71500 181,888 49 37.26209
1,256.817 00 55,110 DO

326,304 00 92,67800 20.000 DO 57,356 00 8.72500 13.477 00
168,92500 1,146,31100
$ -1,87815

69,03200

130,58511 4,00000 17.917 00 3,254 46

6.264 00 52,07500

369,53200 100.41900 1,120,47000 233,98700 587,258 00
110.45900 1.068.62800
823.19500 320,90300
1.132,69000 131.06500 15.23200 77.71500 181,888 49 37,26209
1,256.817 00 55.11000
326,304 00 92.67800 20,00000 57,356 00 8,72500 13.477 00
168.92500 1,146.31100
69,03200 -1,87815
130,58511 4,00000
17,917 00 3,25446
6,264 00 52,07500

$ 1,168,677 00 357,15064 22.06100

1.168,677 00 357,15064 22.06100

21.604 20

21,604 20

See notes to the general-purpose finanCIal statements

$ 9,679145020 $ 484,52164 $ 1,168,677 DO $ 11 ,3321648 64 - 32-

CRAWFORP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30, 2002

SCHEDULE "3"

PROJECT
Payments on bonded Indebtedness, Induding payments of principal and Interest on Crawford County School Dlstnct's Senes 1989 General Obllgalton Bonds (or any bonds Issued to refinance those bonds), from December 1, 1998 through and Indudlng June 1, 2003
Remodeling and renovating eXlsbng dassrooms, instructional and support space, parXlng areas and grounds. kitchens and lunchrooms, gymnasiums and providing fumlshing, equipment and fixtures for such areas, at eXlsbng school dlstnct facilitles, funding a construcIJon account to be used to escrow money to pay for a porbon of the cost of the future construcIJng and eqUiPPing of a new middle school. parXlng areas and grounds, Indudlng the acqUisition of any necessary real estate and paYIng expenses InCldenlthereto

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 727,000.00 $ 727,00000 $ 145,28742 $ 145,04781 Ongoing

3,373,000 00 7,278,457 62

3,182,46520 4,095,99242 Ongoing

$ 4,100.000.00 $ 8,005,457.62 $ 3,327,75262 $ 4,241.04023

(1) The School District's original cost estimate as speCIfied In the resolution calling for the Imposition of the Local Option Sales Tax
(2) The School Dlstnct's current esbmate of total cost for the projects. Indudes all cost from project Incepbon to complebon
(3) The voters of Crawford County approved the Imposition of a 1% sales tax to fund the above projects and retrre assoCiated debt Amounts expended for these projects may Indude sales tax proceeds, state, local properly taxes and/or other funds over the life of the projects

see notes to the general-purpose finanCial statements.

- 33-

CRAWFORD COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM laBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 3Q, 2QQ2

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervenbon (4-5) Program Middle School (6-8) Program Htgh School General Educabon (9-12) Program Vocallonallaboratory (9-12) Program Students with Disabilities Category I Category II category III Category IV Gifted Student - Category VI Remedial Educabon Program A1tematlve Education Program
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

$

4Q7,748 QQ $ 385,758 68 $

5.98317 $

391,741 85

11Q,804 00

189.82460

3,254 79

193,Q7939

1,236,345 00 1,284,55Q 74

28,91371

1,313,464 45

258,185 QQ

4Q1,13Q 87

2,99365

404,12452

647,990 00

668,046 28

16,16Q,Q9

684,206 37

121,882 QQ 1,179,141 00
9Q8,326.QQ 354,089 QQ 1,249,828 QQ
144,619,00 16,8Q7.QQ 85,752 QQ

1Q3,041.6Q 1,123.931 98
899,286.43 38Q,718 Q7
37,59812
651,82246 258,856 97 187,04864
26,QQ3.32 1Q5,8338Q

37,85245 65,417 QQ 49,12614
161,704 12 63232
92,484.59 1,2Q7 Q8 36743

1Q3,041 6Q 1,161,78443
964,7Q343 429,844 21
199,3Q224 63232
744,3Q7 Q5 26Q,Q64,Q5 187,416 Q7
26,Q03.32 1Q5,833.8Q

$

6,721,516 QQ $ 6,7Q3,452.56 $ 466,096 54 $ 7,169,549.1Q

204,18300 41,548 QO

163,286.84 4,528.36

50,76575 37,295,66

214,Q5259 41,824.Q2

TOTAL aBE FORMULA FUNDS

$

6,967,247.00 $ 6,871,267,76 $ 554,15795 $ 7,425,42571

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

See notes to the general-purpose finanCial statements.

- 34-

CRAWFORD COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

Crawford County Elementary School Crawford County High School Crawford County Middle School Eagle's Nest Crawford County CrossRoads Academy Central Office (Altematlve Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

3,400,569.00 $

3,677,110.12

1,644,405.00

1,741,602.86

1,590,790.00

1,432,396.30

11,040.63

105,833.80

85,752.00

201,565.39

$

6,721,516.00 $ =~7.l:::,1=69i::!:,54===9=.1=0

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

:USSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w. Suite 214 Atlanta, Georgia 30334-8400
August 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Crawford County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements of Crawford County Board of Education as of and for the year ended June 30,2002, and have issued our report thereon dated August 5, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Crawford County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Crawford County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Crawford County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6391-0201.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6391-02-01 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Crawford County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
RWH:gp 2002YB-41

USSELI. W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Slreet, S.W. Suite 214 Allanta, Georgia 30334-8400
August 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Crawford County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of Crawford County Board of Education with the types of
u.s. compliance requirements described in the Office ofManagement and Budget (OMB) Circular
A-i33 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2002. Crawford County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Crawford County Board of Education's management. Our responsibility is to express an opinion on Crawford County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perfonn the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a maj or Federal program occurred. An audit includes examining, on a test basis, evidence about the Crawford County Board of Education's compliance with those requirements and perfonning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal detennination on Crawford County Board of Education's compliance with those requirements.
2002SA-IO

In our opinion, the Crawford County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Crawford County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Crawford County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-l33.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the Crawford County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~.~.::is.
Ru ell W. Hinton Sta e Auditor
RWH:gp 2002SA-IO

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

CRAWFORD COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6391-00-03 FS-6391-01-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6391-01-01

The School District has elected not to account for the General Fixed Assets until the State's financial accounting software will accommodate doing so.

SECTION IV FINDINGS AND QUESTIONED COSTS

CRAWFORD COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Crawford County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Crawford County Board ofEducation disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit of the Crawford County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Crawford County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Crawford County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 O(a) of OMB Circular A-133 The Crawford County Board ofEducation's audit did not disclose audit findings required to be reported by section .51O(a) ofOMB Circular A-l33.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Crawford County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
- 1-

CRAWFORD COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6391-02-01 The Crawford County Board of Education failed to maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND OUESTIONED COSTS No matters were reported.
-2-