Crisp County Board of Education, Cordele, Georgia, report on audit of the fiscal year ended June 30, 2001

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- TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUND

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

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

CRISP COUNTY BOARD OF EDUCATION - TABLE OF CONtENTS -
SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN
ACCORDANCE wrrn GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE wrrn REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE wrrn
OMB CIRCULAR A-133
SECTIONm AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RUSSELL W. HINTON
STATE AUDITOR
(404) 6562174

DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.w.. Suite 214
Atlanta. Georgia 30334-8400
July 16, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Crisp County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Crisp County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Crisp County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our oplmon;
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

200lARL-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, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also fund!i received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or "disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Crisp County Board ofEducation as of June 30, 2001, 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 July 16, 2002, on our consideration ofthe Crisp County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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 ofthe Crisp County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes. the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, 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 procedures applied in the
200 1ARL-13

audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information 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 permanent 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,
lA~
Ru ell W. Hinton State Auditor
RWH:gp 2001A.RL-13

CRISP COUNTY BOARD OF EDUCATION

r
I
CRISP COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Contract - Cordele Office Building Authority

qENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

Pr:;.OJECTS

FUND

FUND

$ 569,280.40 $ 1,550,734.04

$ 2,567,334.86

296,844.88

306,307.83

426,041.66

553,967,97

34,103.15 18,281.38

Total Assets

$ 2,873,642.69 $ 1,344,551.47 $==2:=,,=104==:,,7=02:=.0;;.1...

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue Contract - Cordele Office Building Authority
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

:

$

753,426.89

654,861.47 $ 235,545.88 $

382,874.38

122,632.67

$ 1.408,288.36 $ 741,052.93 $

22,028.76 22,028.76

$

31,454,51

$
146,306.89 1,287,592.93 $ 1,465,354.33 $

34,103.15 18,281.38
$

2,082,673.25

551 ,114,01 603.498,54 $

0.00 2,082,673.25

Total Liabilities and Fund Equity

$ 2,873,642.69 $ 1,344,551.47 $ ==2:=,,1=04==:,,7=02=.0=1...

The notes to the general-purpose financial statements are an integral part of this statement. -2-

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

$

0.00 $

2,503.04

25.00

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$ 2,122,517.48 $ 1,382,268.06

2,864,179.74

'2,571,265.47

1,286,342.46

1,083,334.30

34,103.15 18,281.38

54,290.42 20,812.18

- - - - - $ 3,935,000.00

3,935,000.00

4,205,000.00

$

0.00 $

2,528.04 $ 3,935,000.00 $ 10,260,424.21 $ 9,316,970.43

$

753,426.89 $

324,063.04

912,436.11

974,763.48

382,874.38

380,392.13

122,632.67

$ 3,935,000.00

3,935,000.00

4,205,000.00

$ 3,935,000.00 $ 6,106,370.05 $ 5,884,218.65

$

0.00 $

2,528.04

$

0.00 $

2,528.04

$

31,454.51 $

13,847.51

35,850.05

34,103.15 18,281.38 2,082,673.25

54,290.42 20,812.18 1,610,225.00

146,306.89 1,841,234.98

147,077.27 1,550,649.35

$ 4,154,054.16 $ 3,432,751.78

$

0.00 $

2,528.04 $ 3,935,000.00 $ 10,260A24.21 $ 9,316,970.43

-3-

CRISP COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED JUNE 30. 2001

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

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

r-UND

$ 19,260,430.22 $ 114,810.80
5,657,110.05 216,712.11
$ 25,249,063.18 $

2,550,208.24 3,802,769.61
$ 432,113.47
6l85,091.32 $

2,662,711.24 2,662,711.24

$ 16,997,529.80 $
819,402.25 658,838.08 578,745.41 316,112.07 1,832,960.16 197,295.42 2,100,996.31 1,020,240.79
14,675.50 288,470.18
2,952.32 65,427.41

3,670,342.50
644,520.98 224,293.60
225,914.99
62,909.83 30,248.85
22,756.07 1,990,349.79
$

2,190,262.99

$ 24,893,645.70 $

$

355,417.48 $

6,871,336.61 $ -86,245.29 $

2,190,262.99 472,448.25

$

$

-51,755.21

$

-51,755.21 $

51,755.21 51,755.21

$

303,662.27 $

1,161,692.06

-34,490.08 $ 660,706.69

472,448.25 1.610,225.00

-20,187.27 -2,530.80

FUND BALANCE JUNE 30

$ 1,465,354.33 $

603,498.54 $ 2,082.673.25

The notes to the general-purpose financial statements are an integral part of this statement. -4-

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 21.810.638.46

3.917.580.41

$

555,217.50

8,875,038.79

648,825.58 $

$

555,217.50 $ 35,252,083.24 $

$ 5,113.18

21,810,638.46 $ 3,917,580.41 8,875.038.79 653.938.76

20,816,580.69 3,741.597.20 8,318,745.03 745,171.20

5,113.18 $ 35.257,196.42 $ 33,622,094.12

$ 20,667,872.30

1,463,923.23 883,131.68 578,745.41 542,027.06
1,832,960.16 197.295.42
2,163,906.14 1,050,489.64
14,675.50 311,226.25 $ 1,993,302.11 2,255,690.40

$

270,000.00

284,992.50

225.00

270,000.00 284,992.50
225.00

$

555,217.50 $ 34,510,462.80 $

$

0.00 $

741,620.44 $

$ 20,667,872.30 $ 19,130,320.60

2,713.17

1,463,923.23 883,131.68 578,745.41 542,027.06
1,832,960.16 197,295.42
2,163,906.14 1,050,489.64
14,675.50 313,939.42 1,993,302.11 2,255,690.40

1,821,362.80 1,021,091.84
578,345.46 495,100.79 1,813,749.00 191,505.90 2,070,267.46 1,014,122.65
15,603.00 349,317.48 1,833,954.50 2,124,945.78

270,000.00 284,992.50
225.00

595,109.91 313,100.00
44.71

2,713.17 $ 34,513,175.97 $ 33,367,941.88

2,400.01 $

744,020.45 $

254,152.24

$

51,755.21

-51,755.21

$

0.00

$

51,755.21 $

54,395.87

-51,755.21

-54,395.87

$

0.00 $

0.00

$

0.00 $

741,620.44 $

2,400.01 $

744,020.45 $

254,152.24

0.00

3,432,623.75

128.03

3,432,751.78

3,196,374.53

-20,187.27 -2,530.80

-20,187.27 -2,530.80

-10,485.65 -7,289.34

$

0.00 $ 4,151,526.12 $

2,528.04 $ 4,154,054.16 $ 3,432,751.78

-5-

CRISP COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30, 2001

EXHIBIT "C

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 18,629,032,00 $
5,302,723,00 208.472.00

19,260,430,22 114,810,80
5,657,110,05 216,712.11

Total Revenues EXPENDITURES

$ 24,140,227.00 $ 25,249,063.18

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services central Support Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 16,172,879.00 $ 16,997,529,80

892,964,00 725,697,00 580,706,00 295,561,00 1,827,998,00 197,643.00 2,064,371,00 972,182,00 230,068,00 149,868,00
4,400,00 84,000,00

819.402,25 658,838.08 578,745.41 316,112,07 1,832,960.16 197,295,42 2.100,996,31 1,020,240,79
14,675.50 288,470,18
2,952,32 65.427,41

$ 24,198,337.00 $ 24,893,645,70

$ -58,110.00 $ 355.417.48

OTHER FINANCING SOURCES IUSES)

Other Sources Other Uses

$ 113,895.00 -113,895.00 $

Total Other Financing Sources (Uses) $

0.00 $

-51,755.21 -51,755,21

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-58,110.00 $

303,662.27

FUND BALANCE JULY 1, 2000

1,099,749.12

1,161,692,06

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

312,179,11

FUND BALANCE JUNE 30, 2001

$ 1,353,818.23 $ 1,465,354.33

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 1,617,425,00 $ 2,550,208,24 3,999,984,54 3,802,769,61

362,100.00

432,113.47

$ 5,979,509.54 $ 6,785,091,32

$ 2,768,932.40 $ 3,670,342,50

680,465,00 260,190.60

644,520,98 224,293,60

231,782,00

225,914,99

74.000.00 44,426,00
38,427,00 2,040,588.13

62,909,83 30,248,85
22,756,07 1,990,349.79

$ 6,138,811.13 $ 6,871 ,336.61 $ -159,301.59 $ -86,245.29

$ 126,976.52 $ -224,976.52
$ -98,000.00 $

51,755,21 51,755,21

$ -257,301.59 $ -34.490,08

673,879,57

660,706,69

53,827.74

-20,187,27 -2,530.80

$ 470.405.72 $ 603.498.54

The notes to the general-purpose financial statements are an integral part of this statement. - 7-

CRISP COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Crisp County Board ofEducation (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 ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts',' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be acco~ted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

; .~

..; ~ '

CRISP COUNTY BOARD OF EDUCAnON NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2001

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
EXPENDABLETRUSTFUND Hospitality Fund - the fund used to account for contributions and expenditures ofprivate funds which are designated to be used for the purchase.. of refreshments at the Superintendent's discretion.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - used to account for an agreement with the Cordele Office Building Authority for the financing of the construction of various school facilities.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements 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 and expendable trust funds are accounted for using the modified accrual basis of accounting under which:
-9- .

CRISP COUNTY BOARD OF EDUCATION

EXHmIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 detennined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30,2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Crisp County Board ofEducation'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.

- 10-

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200i

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(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 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 ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(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,
- 11 -

CRISP COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State of Georgia.

RECEIVABLES

Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Crisp County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on September 15,2000 (levy date). Taxes were due on December 20,2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Crisp County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $5,525,160.70.

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

School Operations

15.9 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,217,928.74 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $5,369,436.00 has been collected or on September 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories

- 12 - .

CRISP COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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.
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 LONG-TERM DEBT
Recorded in the General Long-Term Debt Account Group is the School District's liability for a contractual obligation with the Cordele Office Building Authority for the acquisition and construction of major capital facilities.
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 residual reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statementsare 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 ofthis data.

- 13-

CRISP COUNTY BOARD OF EDUCAnON

EXHmIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee 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 ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of anyone of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this pwpose,
(6) Industrial revenue bonds and bonds ofdevelopment 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, 2001, the bank balances were $3,203,345.41. The amounts ofthe total bank balances are classified into three categories of credit risk:

- 14-

CRISP COUNTY BOARD OF EDUCATION

EXHmIT "0"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

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

Risk Category

Bank Balance

1

$ 413,348.10

2

2,789,997.31

3

0.00

Total

$ 3,203.345.41

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $2,567,334.86 which is materially the same as fair value, This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard ~d Poor's criteria for AAArn rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification"while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

- 15 -

CRISP COUNTY BOARD OF EDUCATION

EXHIDIT "0"

NOTES TO mE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS
Investments in Georgia Fund I and Fund 6 are directed toward short-tenn instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund I may not exceed 60 days. The weighted average maturity for Georgia Fund I on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.
Note 3: NON-MONETARY TRANSACTIONS
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction ofassets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.
The School District 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 participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July I, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members ofthe system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage.
The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years.
The School District has established a limited risk management program for workers' compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the
- 16-

"r ; '. '

-."- ~;

CRISP COUNTY BOARD OF EDUCATION

EXHffiIT "0"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

amount of that loss can be reasonably estimated. An excess coverage insurance policy covers individual claims in excess of $200,000.00 loss per occurrence, up to the statutory limit.

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 77,228.23 $ 77,228.23 $

0.00

$

0.00 $ 22.540.41 $ 22.540.41 $

0.00

The School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis ofthe percentage ofthat fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

2000 2001

Beginning of Year Liabil!!y'-

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

7.447.88 $

7,447.88 $

0.00

$

0.00 $ 23.493.00 $ 23.493.00 $

0.00

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

Position Covered

Amount

Superintendent All Employees

$ 100,000.00 $ 100,000.00

Note 5: OPERATING LEASES

Crisp County Board ofEducation has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $90,155.40. Future minimum lease payments for these leases are as follows:

- 17 -

- - - - - ~------------------~...~---- ..-.~.~~.

CRISP COUNTY BOARD OF EDUCATION

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: OPERATING LEASES

Year Ending

Amount

2002 2003 2004 2005

$ 90,155.40 90,155.40 90,155.40 7,512.95

Total

$ 277,979,15

Note 6: GENERAL LONG-TERM DEBT

CONTRACT - CORDELE OFFICE" BUILDING AUTHORITY - The School District entered into a contract with the Cordele Office Building Authority, dated July 1, 1991, for the financing of the construction of various school facilities. Under the tenns of the contract, the Authority issued $5,575,000.00 in revenue bonds on behalf of the School District to finance the cost of acquiring, constructing, furnishing and equipping a new high school to be owned by the School District and the costs of making renovations and modifications to existing schools owned by the School District. The School District has contractually agreed to make semi-annual payments, from April 1, 1992 through October 1, 2011, to the Authority sufficient to retire principal and interest on the bonds. The obligation of the School District is absolute and unconditional so long as any of the bonds remain outstanding. Under the contract, the Board ofEducation agreed to levy an annual tax on all taxable property within the boundaries of the School District, at such rates, within any limits prescribed by law, as may be necessary to make payments required by the contract.

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

Contract Cordele Office Building Authority

Balance July 1,2000

$ 4,205,000.00

Deductions Debt Retired

270,000.00

Balance June 30, 2001

$ 3,935,000,00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

- 18 -

CRISP COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Contract Cordele Office Building Authority

2002 2003 2004 2005 2006 2007 - 2011

$ 552,982.50 554,742.50 554,917.50 553,467.50 555,525.00
2,811,000.00

Total Principal and Interest

$ 5,582,635.00

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $426,728.48 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$333,094.96

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $20,701.52

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 $72,932.00

Note 8: 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.

- 19-

CRISP COUNTY BOARD OF EDUCAnON

EXHffiIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 8: 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 9: SUBSEOUENT EVENTS
On March 19,2002, the voters of Crisp County voted in favor ofa Special Purpose Local Option Sales Tax referendum for educational purposes. The imposition ofthe tax approved by the voters, as stated on the Official Ballot of Crisp County, is as follows:
"Shall a special one percent sales and use tax for educational purposes be reimposed in Crisp County for a period 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 $18,000,000 of net proceeds by said tax, to be used for renovating and modernizing the auditoriums ofthe Crisp County Middle School and A. S. Clark Elementary School; adding to, renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable in connection therewith, including parking areas, present football stadium, playgrounds, and physical education fields; acquiring new school equipment, including school buses and other school vehicles; acquiring, constructing and equipping new additional classrooms, athletic and storage facilities; acquiring any property necessary or desirable therefore, both real and personal, including computer technology system-wide, the maximum amount ofthe projects to be paid with sales and use tax proceeds with $18,000,000."
Note 10: ACCUMULATED EMPLOYEES' LEAVE
The School District's administrative staff and certain other full-time employees earn ten days of annual leave each year. Annual leave may be accumulated to a maximum often days. While the School District does not have a written policy, it is the practice of the School District to pay employees an amount based on unused leave, up to the maximum accumulation, at the current rate of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences
Note 11: RETIREMENT PLANS
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.
- 20-

, -.'~'

CRISP COUNTY BOARD OF EDUCATION

EXHmIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 11: 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 ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 2,031,370.64 $ 2,017,876.27 $ 2,025,629.82

- 21 -

CRISP COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Inventories
Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EqUITY LIABILITIES
Accounts Payable Salaries 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. - 22-

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

344,958.48 $

137,850.00

296,844.88

47,414.83

3,057,00

34,103.15 18,281,38

$

741,602.72 $==1=4=0=,9:=0==:7.=00==

$

51,647.44 $

43,288,04

86,456.74

97,618.96

$

138,104.18 $

140,907.00

$

34,103,15

18,281.38

551.114.01 $

$

603,498.54 $

0.00 0.00

$

741,602.72 $==1=4=0=,9:=0==:7.=00==

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

86,471.92 $

569,280.40 $

531,238.05

296,844.88

281,623.10

375,569.83

426,041.66

399,243.52

34,103.15 18,281.38

54,290.42 20,812.18

$

462,041.75 $ 1,344,551.47 $ 1,287,207.27

$

140,610.40 $

235,545.88 $

246,108.45

198,798.68

382,874.38

380,392.13

122,632.67

122,632.67

462,041.75 $

741,052.93 $

626,500.58

$

35,850.05

$

34,103.15

18,281.38

54,290.42 20,812.18

$

0.00

551,114.01

549,754.04

$

0.00 $

603,498.54 $

660,706.69

$

462,041.75 $ 1,344,551.47 $ 1,287,207.27

- 23-

CRISP COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
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
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

133,204.00 $

1,426,392.29

432,113.47

$ 1,991,709.76 $

908,000.80 908,000.80

$

786,109.21

96,587.12

$ 1,990,349.79

$ 1,990,349.79 $

$

1,359.97 $

31,704.81 5,337.91
919,739.05 -11,738.25

$

1,359.97 $

624,856.64

-20,187.27 -2,530.80

11,738.25
0.00 0.00

$

603,498.54 $ ===~O::;:.O;;;,;O;;".

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

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,509,003.44 $ 2,550,208.24 $ 2,417,650.16

2,376,377.32

3,802,769.61

3,639,559.04

432,113.47

415,264.45

$ 3,885,380.76 $ 6,785,091.32 $ 6,472,473.65

$ 2,884,233.29 $ 3,670,342.50 $ 3,463,473.51

547,933.86 224,293.60 225,914.99
31,205.02 24,910.94 22,756.07

644,520.98 224,293.60 225,914.99
62,909.83 30,248.85 22,756.07 1,990,349.79

598,989.25 261,512.93 121,159.39
36,202.13 72,834.41 30,720.82 13,596.68 1,829,588.59

$ 3,961,247.77 $ 6,871 ,336.61 $ 6,428,077.71

$

-75,867.01 $

-86,245.29 $

44,395.94

40,016.96

51,755.21

11,991.30

$

-35,850.05 $

-34,490.08 $

56,387.24

35,850.05

660,706.69

622,094.44

-20,187.27 -2,530.80

-10,485.65 -7,289.34

$

0.00 $

603,498.54 $=~6~6;,;;;,0~,7=06=.6=9=

- 25-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total U. S. Department of Agriculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education' Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity BUilding Improvement Severely Emotionally Disturbed
Total Special Education Cluster
Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Elementary and Secondary Education Act TItle I Grants to Local Educational Agencies Title II Eisenhower Professional Development TItle VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocational Education Basic Grants to States High School Program Basic Grant
Total U. S. Department of Education
Defense, U. S. Department of Direct Department of the Army R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PEIUOD

10.553 10.555

NlA

$ 313,742.96

(2)

N/A

1,025,049.62 $

1,902,750.08 (3)

$ 1,338,792.58 $

1,902,750.08

10.550

N/A

87,599.71

87,599.71

$ 1,426,392.29 $

1,990,349.79

84.027 84.173 84.173 84.027

N/A

$ 315,185.96 $

N/A

154,000.00

NlA

8,556.00

NlA

91,351.00

$ 569,092.96 $

327,649.46 (3) 122,788.50 (6)
8,556.00 50,860.65
509,854.61

84.041

12,776.47

(5)

84.010 84.281 84.298 84.340
84.276 84.186
84.048

NlA

1,282,714.48

1,284,359.74

N/A

23,425.17

24,069.27

N/A

40,620.71

42,564.00 (3)

NlA

184,537.00

182,930.32

N/A

157,050.00

194,531.30 (3)

N/A

48,782.00

48,782.00

NlA

70,155.00

70,155.00

$ 2.389,153.79 $

2,357,246.24

$ 52,754.27

(4)

26

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Pass-Through From Children and You1h Coordinating Council Formula Grants

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PEHIOD

16,540

NlA

$ 49.280.06

(4)

Total Federal Financial Assistance

$ 3.917,580.41 $ 4,347,596.03

N/A = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution 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 School Breakfast Program were not maintained separately and are included in the 2001 National School lunch Program.
(3) Expenditures for this program include State, and/or Other Funds, Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures. (6) Includes Federal Assistance of $40,593,00 prOVided to subreclpients,

Major Programs are identified by an asterisk (*) in front of the CFDA number,

The accompanying schedule of expenditures of Federal awards indudes the Federal grant activity of the Crisp 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.

- 27-

i/
I

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001

SCHEDULE "2"

AGENCYIFUNDING

GRANTS Community Affairs, Georgia Department of Through Crisp/Dooly Development Authority Local Assistance Grant

Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category III Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplement Vocational Supervisors Migrant Education Educational Equalization Formula Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Mentor Teachers Preschool Handicapped Program Remedial Summer School Severely Emotionally Disturbed Teachers' Retirement Lottery Programs Computers in the Classroom

Georgia School Age Care Association

The 3:00 Project

.

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

4,000.00

$

4,000.00

1,076,601.00 328,717.00
2,488,195.00 888,725.00
1,481 ,856.00 2,044,844.00 1,946,087,00
578,652.00
63,183.00 557,154.00 983,242.00 215,450.00 217,598.00 328,464,00 166,352,00
6,492.00 418,456.00 110,477.00 2,498,849.00

516,913.00 141,730,00 100,199,00 18,324.00 22,157.00
1,025.00 1,355,679,00
$ 79,845,00
7,946.93 333,094,96
5,000,00 4,400,00
652.00
7,199.77
20,701.52

133,204.00
293,760.00 1,215,243.44
89,428.00

18,125.51

1,076,601.00 328,717.00
2,488,195.00 888,725.00
1,481,856,00 2,044,844.00 1,946,087.00
578,652,00
63,183.00 557,154,00 983,242.00 215,450.00 217,598.00 328,464.00 166,352.00
6,492.00 418,456.00 110,477.00 2,498,849.00
516,913.00 141,730.00 100,199.00
18,324.00 22,157,00
1,025.00 1,355,679.00
133,204.00 79,845.00
7,946.93 333,094.96
5,000.00 4,400.00
652.00 293,760,00
7,199.77 1,215,243.44
20,701.52
89,428.00
18,125,51

- 28-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Human Resources, Georgia Department of STAR Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia Reading Challenge Middle School After SchooUSummer Program Georgia's Reading First

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

21,000.00

$

21,000.00

$

818,572.80

818,572.80

72,932.00

72,932.00

42,006.14 24,203.39 63,902.00

42,006.14 24,203.39 63,902.00

$ 19,260,430.22 $ 2,550,208.24 $ 21,810,638.46

See notes to the general-purpose financial statements.

- 29-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENPED JUNE 30 2001

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS(~L

PROJECT STATUS

The repayment of all principal and interest coming due April 1, 1998, and thereafter the general obligation debt evidenced by the intergovernmental Contract, dated as of JUly 1, 1991, between the Crisp County School District and the Cordele Office Building Authority in the sum 01$6,454,454.00

$ 6,454,454.00 $ 6,454,454.00 $

555,217.50 $ 1,447,915.35

Ongoing

The exercise of purchase options under existing lease contracts for middle school E-Wing heating/cooling system, lights, ceiling and softball fieldltennis courts at the high school in the sum of $615,247.00

615,247.00

615,247.00

599,528.52 Completed

Funding of additional projects in the sum of $9,430,299.00, the remaining balance ofthe projected revenues, to include renovations and modernizations of the auditorium and gymnasium buildings at Crisp County Middle School and A. S. Clark Elementary School; improvement of driveways, parking areas and drainage at auditoriums, schools, bus shop and warehouses; replacement of worn out and inefficient heating/cooling units, re-roofing, renovations, improvements, minor additions and equipping of existing schools of the Crisp County School Systern, bus shop, bus ramps and canopies; expand security and electronic surveillance systems for the high school and middle school; provide metal storage barn for agriculture program; provide minimum of 3 networked computers for each classroom in the school system to include all wiring, fixtures, other technology; replace worn out desks and chairs; purchase of maintenance and supply warehouse and acquisition of all property; modernize or replace underground fuel storage tanks at bus shop, replacement of press box, lights, poles and replacement and expansion of bleachers at the present football field; improve existing baseball, track and band practice fields and facilities

9,430,299.00

9,430,299.00 2,190,262.99 4,257,382.44 Ongoing

$ 16,500,000.00 $ 16,500,000.00 $ 2,745,480.49 $ 6.304,826.31

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.
(3) The voters of Crisp County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

See notes to the general-purpose financial statements.

31 -

c-----------------------------------------------

CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - qUALITY BASIC EDUCATION PROGRAM (qBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE OBE PROGRA~ COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category II

Category III

Category IV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

1,197,505.00 $ 1,183,088.16 $

365,632.00

257,468.86

2,767,623.00 2,915,985.70

988,531,00

692,226,67

1,648,271,00

1,626,476,49

2,274,483.00

2,469,182.36

2,164,635.00

2,367,988.25

643,636.00

763,875,70

2,023,309.00

758,392.04

769,220.53

243,874.15

242,034.00

231,357.34

365,352.00

434,822.33

185,034.00

246,301,98

7,221.00

32,363,26

18,517,59 $ 4,294,91 86,529,74 2,355.39 44,254.19 125,012.71 108,337.36 83,781.28
7,608.59 22,908.44
970,20 3,486,39 4,214.89 10,106.12

1,201,605.75 261,763.77
3,002,515.44 694,582.06
1,670,730.68 2,594,195.07 2,476,325.61
847,656.98
766,000.63 792,128.97 244,844.35 234,843,73 439,037.22 256,408.10 32,363.26

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

14,873,266.00 $ 14,992,623.82 $ 522,377.80 $ 15,515,001.62

Media center Program Staff and Professional Development

465,449,00 122,884,00

506,032,53 35,811,18

62,989.76 94,860.78

569,022.29 130,671.96

TOTALOBEFORMULAFUNDS

$

15,461,599,00 $ 15,534,467.53 $ 680,228.34 $ 16,214,695.87

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

See notes to the general-purpose financial statements,

- 32-

CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - aUALlTY BASIC EDUCATION PROGRAM (aBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2001

SCHEDULE "5"

Crisp County High School Crisp County Middle School A. S. Clark Elementary School Blackshear Trail Elementary School Southwestern Elementary School J. S. Pate Elementary School CrossRoads Alternative Center Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

$

3,778,501.00 $

4,300,877.14

2,966,003.00

3,177,973.26

1,648,538.00

1,587,792.15

1,715,405.00

1,866,897.99

1,985,557.00

1,898,804.09

2,594,228.00

2,464,698.10

209,260.11

185,034.00

8,698.78

$

14,873,266.00 . $ 15,515,001.62

See notes to the general-purpose financial statements. - 33-

SECTIONll COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S. w., Suite 2 J4
Atlanta, Georgia 30334-8400
July 16,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Crisp 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 Crisp County Board ofEducation as of and for the year ended June 30, 2001, and have issued our report thereon dated July 16, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part ofobtaining reasonable assurance about whether Crisp County Board ofEducation'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 of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Rworting
In planning and performing our audit, we considered Crisp 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
2001YB-40
l

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 Crisp County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6401-01-01 and FS-6401-01-02.
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, of the reportable conditions described above, item FS-6401-01-02 is also considered to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Crisp County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~,.~
Ru 11 W. Hinton State Auditor
RWH:gp 2001YB-40

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.w., Suite 214 Atlanta, Georgia 30334-8400
July 16, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Crisp County Board of Education
REPORT ON COMPLIANCE WITH REOUIREMENTS 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 ofCrisp County Board ofEducation with the types ofcompliance
u.s. requirements described in the Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Crisp 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 Crisp County Board of Education's management. Our responsibility is to express an opinion on Crisp County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and OMB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Crisp County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Crisp County Board of Education's compliance with those requirements.
2001SA-I0

In our opinion, the Crisp County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management ofCrisp County Board ofEducation 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 Crisp County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe Crisp 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,
Q~\~d~s"elol Wo. .Hin.tonW.~ State Auditor
RWH:gp 2001SA-IO

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

CRISP COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND OUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6401-99-01 FS-6401-99-03 FS-6401-00-01 FS-640 1-00-02

Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

CASH AND CASH EQUNALENTS GENERAL LEDGER Inadequate Separation ofDuties Finding Control Number: FS-6401-00-01

We concur with this finding; however, due to current budgetary constraints, the School District is unable to hire the additional staff required to clear this finding. The School District feels it has provided for the most appropriate assignment ofduties with the number of personnel available to perform the accounting functions. With staff limitations this finding cannot be totally resolved.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6401-00-02

We concur with this finding. Due to current staffing limitations and budgetary considerations prohibiting the hiring ofadditional administrative staff, the School District has decided not to pursue the recording ofgeneral fixed assets on the financial statements.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6401-00-01

Unresolved - See Corrective Action/Responses

CORRECTIVE ACTIONIRESPONSES

We concur with this finding for Fiscal Year 2000. Procedures have been put into place to monitor cash needs prior to completing the DE Form 0147 "Monthly Report of Expenditures and Estimated Requirements for Grant FundslLotus Notes".

SECTION IV FINDINGS AND QUESTIONED COSTS

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Crisp County Board of Education's fmancial statements was qualified for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit ofthe Financial Statements The audit report for the Crisp County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents General Fixed Assets

General Ledger

Of the reportable conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit ofthe Crisp County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
0"
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Crisp 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 Crisp County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51O(a) ofOMB Circular A-133 The Crisp County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

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

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee The Crisp County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.

- 1-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
IT FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Separation ofDuties Reportable Condition Repeated From Prior Year Finding Control Number: FS-6401-01-01
The Crisp County Board of Education did not provide. for adequate separation of duties in the performance of certain accounting functions and related procedures. The following deficiencies were noted:
(I) Bank reconciliations are reconciled by someone directly connected to cash operations and are not reviewed by an administrator independent of cash operations.
(2) Someone independent of the general ledger posting function does not review journal entries.
These conditions were a result ofmanagement's decision to limit the number ofadministrative staff made responsible for accounting functions. Management should periodically review this decision to determine if employees can be reassigned to achieve a higher degree of internal controls with existing staff.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6401-01-02
The Crisp County Board ofEducation did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance 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 of all additions and deletions to the General Fixed Assets Account Group.
-2-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
ill FEDERAL AWARD FINDINGS AND OUESTIONED COSTS CASH MANAGEMENT Excessive Cash Balances Reportable Condition U. S. Department of Education Through Georgia Department of Education Repeated From Prior Year Finding Control Number: FA-6401-01-01 A review ofcash management procedures for the Individuals with Disabilities Education Act - Part B Special Education - Flow Through (CFDA 84.027), Preschool (CFDA 84.173) and Severely Emotionally Disturbed (CFDA 84.027) programs disclosed the cash draws were made in advance of immediate cash needs, resulting in the accumulation ofexcessive cash balances. The Part B - Special Education - Flow Through, Preschool and Severely Emotionally Disturbed programs maintained excessive ending monthly cash balances for eleven months ofthe year under review and had excessive average monthly cash balances. Internal controls should be implemented to ensure that the School District minimizes the time elapsing between the transfer of funds from the Georgia Department of Education and disbursement of such funds by the School District.
-3-