Crisp County Board of Education, Cordele, Georgia, report on audit of the fiscal year ended June 30, 2002

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,CRISP COUNTY':SOARD OF EDUCATION

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REPORT 'ON AUDIT

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. Russell W., H, inton'

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CRISP COUNTY BOARD or EDUCATION - 1 ABLE or CONTENTS -

SECIION I

FINANCIAL

I"JDFPENDENT AUDITOR'S COMl3lNED RLPOR r ON GENFRAL-PURPOSE FINANCIAl STA1 lMENTS AND SUPPLEMENTARY INFORMA nONSCHEDULI. or EXPENDITURES OF rEDERAL A WARDS

FXHIBITS

GENERAl -PURPOSE FINANCIAL STATEMENTS

COMBINED SfATEMENTS - OVERVIEW

A

COMBINLD BALANCE SHEET

ALI FuND TYPES AND ACCOUN I GROUP

B

COMUINED STA rEMENT or RFVFNULS, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMEN rAL FUND TYPES

AND EXPENDABLE TRUST FUND

4

C

COMBINED STATEMEN1 or REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGE r AND ACTUAL

(NON-GAAP BASIS)

GfNERAL AND SPECIAL RFVENUE rUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL HNANCIAL INFORMATION

COMBINING STATr.ML:NTS

SPECIAL REVENuE FUND

E

COMBINI"'G BALANCE SHEET

20

~

COMBINING Sl ATr.MENT O~ REVENUES, Expr NDITlIRES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS I-UND

G

COMBINING BALANCE SHEET

24

H

COMl3fNlNG STATEMrN r or REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCr.S

25

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCIIEDULr. or STATr RL:VENUr.

28

3 SCHEDULF OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

ALLOTMENTS AND EXPENDITURr.S

GENERAL FUND - QUALIl Y BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

l3Y SITr.

33

CRISP COUN1 Y BOARD or EDUCATION - 1 ABLE or CO"J rEN rs -
SEC110N II COMPLIANCE AND INTERNAl CONTROL REPORTS REPOR r ON COMPLIANCE AND ON INH.RNAL CONTROL OVER FINANCIAL REPOR riNG BASED ON AN AUDIT OF FINANCIAL S I ATEME!'lTS PERFORMFD IN ACCORDANCI, WITH GOVERNMENT AUDITING STANDARDS REPOR I ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACII MAJOR PROGRAM AND ON INTLRNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
SECTION III AUDII EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUES I 10NED COS IS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COS1 S
SE:.CIION IV FINDINGS AND QUESTIONED COSTS SClIEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

{\"'H I W. HIN ION
..,TlIIl AUr>lTon
(~041 (,~ }l'"

DEPARTMENT OF AUDITS AND ACCOUNTS
2,-1 W.I\hmghln SIrt..'C( ~ W ~U1Il.' '214 1\11./111.1 GL'or!;,,J ml~4-X4fH)
June 20. 2003

Iionorabic 'ionny Perduc. Governor 'vlemhcr... 01 the General A~...embly tv1cmhcr, 01 the Slate Roard 01 Educallon
and SuperIntendent and Member~ 01 the Cnsp (ounty Board of Educallon
NDEPENDEN 1 AUDITOR'S COMBINED REPORT ON GENERAl -PURPOSE
fiNANCIAl. STATEMEN rs AND SUPPLEMI:N I ARY INFORMATION -
SCHI:DUL[ Of EXPI I\DITURES or- fI:DfRAL AWARDS
Ladlcs and (ientlemen
We havc audued the accompanYIng geneml-purpo...e financlal ...latements of the Cnsp County Board 01 Education. a... of and for the year ended June 30, 2002. a, lI...ted In the table of eontent... The~e gcncral-purpo,e financIal statements are the re~pon~lbilltyof the Cn~p County Board ofl:ducatlOn's managcmcnt Our rc~pon~lbillty I~ to e'(pre~, an opInion on these general-purpo~ financial ,tdtement~ h~ed on our audn
We conducted our audit In accordance "nh auditIng standard~ generally acccptcd In thc United States 01 Amenca and the standard, applIcable to financIal audlt~ conlaIned In Government AudItIng Standard.,. I~~ued by the Comptrollcr General of the United Slate, Those ,tandard, require that we plan and perform thc audit to obtaIn rea;onable as~urance about whether the finanCial statement~ are frce of matenal mlsstatcment An audIt Includes examInIng. on a tcst basIS. eVidence supportIng thc amoums and dl'>c1osures In the financial statemenl'> An audit al ...o Include~ as...e~~mg the accounllng prInciple' u,ed and Significant e'tlmatcs made by management. a~ well as e\ aluatIng the overall financial ,tdtemem pre,entatlOn We belIeve that our audn proVides a reasonable basIS for our opInion
A~ de~cnbcd In the notc~ to the gencral-purpo,e tinancIaI statements. the Board of [ducallon'~ finanCIal statemem, havc been prepared U~Ing certaIn accountIng practlce~ and polICies whIch. In our opInion. vary In ,ome re~pects from generally accepted accountIng pnnclple~ These variances are descnhcd a> Il)llow~

2002ARI -13

rhe general-purpose financIal statements of the Board of Education did not contaIn a General Fn;ed Asset~ Account Group to account for property and equipment mmed by thc Board of Education which should be Included to conform to generally accepted accountIng prInclplcs
School activity accounts maIntaIned at the IndiVidual schools arc not Included In the gcneml-purpose financial statements ro conform to gencrally accepted accountIng pnnclple~. the~e account~ should he Included In the general-purpose finanCIal
~tatements
The Board of I-,ducatlon did not recognIze as expendlturcs. In the year cnded June 30. 2002. a portion 01 salane~ and the correspondIng employer's co~t of related bcnetit~ earned for contractual ser\'lce~ completed pnor to June 30. 2002 Also funds received. subscquent to June 30. 2002. from the GcorgIa Dcpartment of Education for the State's share of these unrccorded ~lanes and related bcncfits wcre not recorded as revenue In the year under review Conversely. the SImilar expenditures and related revenues for contractual ~ervlces completed pnor to June 30. 2001. were Improperly recorded In the year ended June 30. 2002 10 conform to generally accepted accountIng pnnclples. revenues should be recorded when available and measurable and e'l.pendlture~ should be recorded when Incurred. rather than when fund~ arc received or disbursed
I he aggregate effects on the general-purpo~e finanCial statement~ of these vanances or omiSSIOns have not been determIned. but are belIeved to be matenal
In our opinIon. except for the effects on the general-purpose finanCial statements of the malleI"'> referred to In the precedIng paragraph. the general-purpose finanCial statements referred to above present fomly. In all matenal respects, the finanCial positIOn of the Cnsp County Board of EducatIOn as of June 30. 2002. and the re~ults of ItS operations for the year then ended, In eonfllrrnlty With accountIng prInCiples gencrally accepted In the Unttcd States of Amenca
In accordance With Government AuditIng Standards. we have also Issued our report datcd June 20. 2003. on our conSideration of the Cnsp County Board of EducatIOn's Internal control over finanCial reportIng and our tcst~ of ItS complIance With certaIn provl~lons oflaws, regulatlon~.contracts and grant~ That report I~ an Integral part of an audit performed In accordance With Government AuditIng Standards and ~hould bc read In conjunction With thiS report In eonsldenng the results of our audit
Our audit wa~ performed for the purpose of formIng an opInion on the general-purpose finanCial ~tatement~ of the Cnsp County Board of Education taken as a whole The accompanYIng combInIng statement~ (Exhibits E through H) and thc finanCial ~hedule~ (Sehedule~ I through 5). which Includes the Schedulc of E'l.pendltures of Federal Awards a~ reqUired by U S Office of Management and Budget Circular A-133, Audas o(Slalcv Local Governmenls, and Non-Profil Orgam=allOnI, are presented for purposes of additIOnal analySIS and are not a required part of the general-purpose finanCial >tatemenlS Such Information has been subjected to the auditIng procedures applIed In the
2002ARL-13

audit of the general-purposc financIal statements and In our opinIon. cxcept for the effects of the mailers rcfcrred to In the third paragraph. such information I~ fairly statcd. In all matenal re~pects, In relatIOn to the general-purpose financial statements taken as a whole
A eopy of this report has been filed as a permanent record In the office of the State Auditor and mddc available to thc prc~s of the State. as proVided for by OffiCial Code of Georgia Annotated Seelton 506-24
---Respectfully submilled.

RWHgp 2002ARL-13

R sell W Hinton State Auditor

CRISP COUNTY BOARD OF EDUCATION

CRISP COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002

ASSETS
Cash and Cash EqUivalents
Investments
Accounts Receivable
Inventones Food Donated Commochlles Purchased Food
Amount to be Provided In Future Years For Payment of Contract - Cordele Office BUlldlf19 Authonty

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

27259286 $ 3266 032 95

$ 4,43502859

318,366 42

218,07664

615,91558

673,44394

38 77120 20190 23

Total Assets

$ 4,653,105 23 $ 1,265,836 29 $ 3939,47689

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Retalnages Payable Deferred Revenue Contract - Cordele Office BUilding AUlho"ty
Total Laablhbes
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For lnventones Food Donated CommodrtJes Purchased Food For SPLOST PrOjects Unreserved DeslQnated for Self-Insurance Undeslgnated
Total Fund EqUity

$ 2,95341379 303,92276 $

177 17378 $ 434 935 82
30,92647

$ 3,257,336 55 $

643,036 07 $

48,09335 1105578
59,14913

$

$

81,93352

1,313,83516

$ , ,395,768 68 $

38,77120 20,19023
$

3,880 327 76

563,836 79 622,80022 $

000 3,880,32776

TotalllabllltJes and Fund EqUity

$ 4,653,10523 $ 1,265,836 29 $

The notes to the general-purpose finanCial statements are an Integrat part of thIS statement - 2-

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUND

$

000 $

323820

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$ 3541,864 01 $ 2,122,51748

4,753,395 01

2,864,17974

1,50743616

1,286 342 46

38,771 20 20190 23

34,10315 18,28138

_ _ _ _ _ $ 3,650,000 00

3,650,000 00

3,935,00000

$

000 $

3,23820 $ 3,650.000 00 $ 13,511,656 61 $ 10,260,42421

$ 2,95341379 $

753,42689

529,18989

912,596 11

43493582

382,71438

11,05578

30,926 47

12263267

$ 3,650,00000

3,650,000 00

3.935,00000

$ 3,650,000 00 $ 7,609,52175 $ 6,106,37005

$

000 $

3,23820

$

000 $

3,238 20

$

31,454 51

$

38,771 20

20190 23

3880 327 76

34 10315 18,281 38 2,082,67325

81,93352 1,880,91215

146,306 89 1,841,234 98

$ 5,902,134 86 $ 4,154,05416

$

000 $

323820 $ 3,650,00000 $ 13511,656 61 $ 10,260,42421

-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 2002

REYENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instructlon 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 Cap.tal Outlay Debt Service
Pnnclpal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) ExpendItures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other FmancII'9 Sources (Uses)
Excess of Revenues and Other FinanCing Sources over (under) ExpendItures and Other Financing Uses
FUND BALANCE JULY 1
Fooo I') entory - Net Change tn Pened Don!..: .::d CommoditieS Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 19956,979 20 $ '4347565
5,60080368 352721 16
S 26,05397969 $

2,666,92028 $ 4,738,37235
499,67904
7,904,971 67 $

1'0,55775 2,570,370 14
2,680,927 89

$ 17 531 67432 $
986,04368 662395 22 609 28518 3B6 18547 1,86724211 204 862 31 2,321 57052 1,094 229 85
1516900 281 41073

4'1038057
96594859 25266279
16805364
6811168 117,301 37
7899827 2'40,04324
$

',017,51707

$ 25,960,068 39 $

$

93,91' 30 $

7,921 500 15 $ -'6,52848 $

1,017,51707 1,663,41082

$

$

-'63.496 95

$

-183496 95 $

$

-6958565 $

, 465,354 33

29,25326 $

134,24389

29,25326 $

134,24369

12,72478 $ 603498 54

1,797654 51 2082,67325

466605 '.908 as

FUND BALANCE JUNE 3Q

$ 1 395,768 68 $

622,BOO 22 $ _~3;:;68=0.,3.;:;2=7.7.6;;.

The notes to the general-purpose financial statements are an mtegral 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, 2002

JUNE 30, 2001

5 22,7~,457 23

488184800

5

55350750

8,72468132

852,400 20 5

5

55350750 $ 37,193,386 75 5

5
5,39237

22,7~,457 23 5
4,881,84800 8,724681 32
857,79257

2181063846 3917,58041 8,875,038 79 653,938 76

5,39237 $ 37.198.77912 $ 35,257,196 42

$ 21 842,054 89

1 951,99227 915,05801 609 28518 554 23911
1,86724211 204 862 31
2409,68220 1211,53122
15,16900
380,40900 S
2140,04324 1 017,517 07

S

285,00000

267,98250

52500

285,00000 26798250
52500

$

553,50750 $ 35,452,59311 $

$

000 $ 1 740,79384 $

$ 21842054 89 $ 20687,87230

468221

195199227 91505801 609 28518 554 23911
186724211 204,86231
2409,68220 1,211,531 22
15,16900 385,091 21 2,140,04324 1,017,51707

1,463,92323 883,13168 578,74541 54202706
1,832,960 16 197,29542
2,163,90614 1,050,48984
14,67550 313,93942 1,993,302 11 2,255,690 40

28500000 26798250
52500

27000000 284 992 50
22500

4.68221 $ 35,457,27532 $ ~,513 17597

71016 $ 1,741,50380 $

744,02045

$

163496 95

-163,496 95

$

000

$

163496 95 $

-163,496 95

$

000 $

51 75521 -51,75521
000

$

000 $ 1,74079384 $

71016 $ 1,741,50380 $

744 020 45

000

4151,52612

2,52804

4,154,054 16

3432751 78

468805 1,908 85

4,668 05 1,908 85

-20,18727 -2,530 80

s

000 $ 5,896 896 66 $

5,902,1~86 $

4,154,05416

- 5-

CRISP COUNTY BOARD Of EpUCATION COMBINED STATEMENT Of REVENUES EXPENDITURES AND CHANGES IN fUND BALANCES
BUDGET AND ACTUAl (NON-GMP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBlrc

REVENUES
State Funds Federal Funds Taxes
Other Funds
Total Revenues
EXPENDITURES

GENERAL FUND

BUDGET

ACTUAL

S 19,70227507 S 19956 979 20

14347565

562420800

5600 803 68

175,91300

352721 16

S 25502396 07 S 26,053,97969

Current InstruebOn Suppon SeMces
Pupil servICeS
Improvement of InstruebOnal ServICeS EducabOnal Mecha Services GenelClI AdmlnlStraboI"l School AdmJl"IIstratlon Business !VjmanlStrabon Maintenance and Operatron of Plant Student Transportation SeMCeS central Support Services Other Support Services Food Sel'Vlces ()peratton

S 1732368727 S 17 531 674 32

868 738 69 648 442 00 610 624 00 39796600 1 871 59300 20204900 2316594 00 103938200
1626700 16986800

986 043 68 68239522 609 28518 386 18547 1 86724211 204 862 31 232' $7052 1 094,229 85
15,16900 28141073

Total Expenditures

$ 25,485,21096 S 25960,06839

Excess 0' Revenues over (under) Expenditures

S

1718511 S

93,911 30

OTHER FINANgNG SOURCES fUSES)

Other Sources Other Uses

$ 188 "57 00 -21900000 $

-163496 95

Total Other Flnanong Sources (Uses)

S -30 543 00 $ -163,496 95

Excess 0' Revenues and Other FmBnClng Sources over (under) ExpenditUres and Other Flnanang Uses S

-13,35789 S

-6958565

FUND BALANCE JULY 1 200 1

1324 97B 07

1,465,354 33

Adyustments Food Inventory - Net Change In Penod
Donated ComrTlClOtles Purd1ased FOOd

-30 376 54

FUND BALANCE JUNE 30 2002

S '28124364 $ 1,39576868

SPECIAl REVENUE FUND

BUDGET

ACTUAL

S 226342200 S 2666 920 28 543554254 4738,372 35

455,86964

499,67904

S 8154 834 18 S 7904 971 67

S 441526600 S 411038057

1060 029 00 37282800

965 948 59 25266279

15982483

168 053 64

11259200 176480 00

8811168 117 30137

5773100 2,161620 45

78,998 27 2,140,04324

S 8,516,371 28 S 7,921,500 15

$ -361,53710

-1652848

S 190,20500 S -159,66200
S 30 543 00 $

29 253 26 29 253 26

$ -33099410 S 12,72478

67584805

60349854

31 76776

466805 1908 85

S 376,621 71 S 622,80022

The notes to the general-purpose final"\Clal statements are an Integral part of thiS statement - 6-

CRISP COUNTY BOARD OF EDUCA TION

EXHIBI f "D"

NOTES TO fHI:. GI NERAL-PlJRPOSE FINANCIAL STATEMEN1S

JUNE 30, 2002

Note 1 SUMMARY Of SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
1 he Cnsp County Board of l-A1ucatlOn (School Dlstnct) wa~ e~tablished undcr thc laws of the State of Gcorgla and operates under the gUIdance of a school board elected by the voters and a Supenntendent appointed by thc Board The School Dlstnct IS orgamzed as a separate legal enllty and ha~ the power to levy taxes and Is~ue bonds It~ hudget IS not ~ubJeet to approval by any other enllty Aeeordlngly, the School Dlstnct IS a pnmary government and consIsts of all thc orgamzatlOn~ that compose Its legal cnllty
FlI:"lD ACCOUNTING
I he School Dlstnct use~ funds and an account group to report on liS financIal poslllon and thc resul~ of lis operations I-und accounting IS deSIgned to demonstratc legal complIancc and to aId financIal management by segregating transacllons relatcd to ccrtaln governmental functions or activIties A fund IS a scparate accounting enllty With a ~lf-balanclng set of accounts An account group IS a linanclal reporting devlcc deSigned to proVide accountability for ccrtaln assets and IIabllIlles that are not recorded In the funds because they do not dIrectly affect expendable aVlIIlable finanCIal resources
General Fixed A~sets are recorded a~ expendItures In the vanou~ funds at the time ofpurcha~e A General FiXed Assets Account Group tS not presently maintained hy the School Dlstnct To contorm to generally accepted accounllng pnnclples, a General fixed Assets Account Group should be maintained for reporting the cost of assets acqUIred by governmental fund type~
Although "school activity accounts" arc malnlalned al the Indlv Idual schools, neIther the assets, IIabllItics and fund eqUIty, nor the revenues, ell.pendllures and change~ In fund balances of these accounts are reflected In these finanCIal statements To conform to generally accepted accounting prinCiples, thcse accounts should he recorded In the general-purpose finanCial statements
The general-purpose finanCial statemcn~ account for all State. Federal, raxe~ and Other fund~ under control of the School Dlstnct, In compliance WIth generally accepted accounting pnnclples applicahle to governmental umts, unless otherv.lse disclosed In these notes Fund~ and the account group presented In thl~ rcport are as follows
GOVERNMENTAL FUND TYPES - are uscd to account for all or most of the School DI~tnct's educational actmtles Governmental Fund Types Include
GENERAL fUND - the fund used to account for all financlUl resources of the School Dlstnct except those reqUlrcd to be accounted for In another lund These transactions relate to resources obtalncd and used for services proVided hy a board of education

-7-

CRISP COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO 1 HE GENERAL-PURPOSE FINANCIAL STATEMENl S

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revcnue sources (othcr than for major capital proJccts) that are Icgally restncted to expenditures for speCified purposes These fund~ are receIved pnmarily from the Georgia Department of [ducatlon and from the Federal government to accomplI~h spcclfic educatIOnal objectives
CAPI rAI. 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 forthe accumulation of resources for. and the payment of, general long-tenn pnnclpal. 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 mdlvlduals, pnvatc orgamzatlOns, other govcrnment umts and/or other fund~ Thl~ fund Includes
EXPENDABLE 'I RUST FUND Hospitality Fund - the fund used to account for contnbutions and expenditures ofpnvate funds which are deSignated to be used for the purchase of refreshments at the Supenntendent'~ discretion
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportIng deVIce used to account for an agreement WIth the Cordele Oflice BUilding Authonty for the finanCIng of thc constructIon of vanous sehool faCIlIties
BASIS OF ACCOUNTING
1 he accountIng and finanCial reportmg treatment applIed to a fund IS detennIned by Its measurement locu~ All governmental and expendable tru~t funds are accounted for USIng a current financial resources measurement focus. WIth this measurement focus, only current assets and current IIahllltles generally are Included on the balance sheet. OperatIng statcments of these funds pre~nt Increases (I e , revenue~ and other financmg sources) and decreases (I e , expenditures and other financmg u~e~) In net current assets TheIr reported fund balance IS conSidered a measure of available ~pendable resources
LlabllltlCS which are expected to be financed from available spendable re~urces arc reported as lIahllitles In the governmental fund~ Other liabIlIties. whIch are not expected to be financed from available spendable resource~. are reported m the General Long-Tenn Debt Account Group
Governmental and expendable trust fund~ arc accounted for USIng the modified accrual b~ls of accountmg under whIch
-8-

CRISI' COUNTY BOARD m EDlJCAnON

L\HI8II "D"

NOl ES TO THE GENERAL-I'URPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Notc I SUMMARY OF SIGNII'ICANT ACCOUNTING POLICIES
Rennues are recogmzed when su~cepl1ble to accrual (I e , whcn thcy become both measurable and avaIlable) "Measurable" means the amount of the transaCllon can be detcrmlncd and "avallahle" mean~ collcctlble within the currcnt penod or soon enough thcreafter to be used to pay lIabllIlIes of the current period I he School District conSiders recelvablt:s collected WIthin sIxty days after yearend to be available Property taxes. sales taxes and Interest are conSidered to be ~u~cepl1ble to accrudl Nonexchange transaCl1ons, In which the School District gIves (or recelvcs) value Without dIrectly receiving (or giVing) cqual value In exchangc. Include property taxes. local option ~ales taxcs, Intergovernmental grants and donations Revenue for property taxes IS recognized In the fiscal year for which thc taxes arc leVIed Revenue from sales taxes IS recogmzed In the fiscal year the re~ourccs are recclved or su~eptlbleto accrual Revenue from grants and donations IS recognized In the li~cal ycar In whIch all elIgIbIlIty reqUIrements have been satl~ficd.
Expenditures are gcnerally reeogmzcd when the related fund lIabIlIty IS Incurred
A departure from the above defimtlons IS the accounting treatment afforded the tinal two payment; on General Fund teachers' and hus dnvel">' contract~, and the rcsource~ available from the GcorgIa Department of EducatIOn for the State's share of these contracts Dunng fi~cal year 2002, a substantial number of pe~onnelof the School Dlstnct were employed for a onc hundred and ninety day penod beginning In August 2001 and ending m early June 2002 Pe~onnel contracts for thIS employment pcnod speCIfy that compensatIOn be paId In twelve equal monthly payment~ beglnmng In September 200 I and ending In August 2002 State grants to fund the State's share of these contracb were disbursed from thc GeorgIa Departmcnt of Education to the School Dlstnct In thc same twelve months As of Junc 30, 2002. compensatIOn under these employment contracts had been earned, hut two of the twelve monthly payments. due for July and August 2002. had not been made Pa}ment~ for thesc t\\O months were made and recorded as expenditures b} thc School Dlstnct subsequent to June 30,2002 Also, the State's portIOn of the compensation paid In July and August 2002 wa~ received and recorded as revenue In the fiscal year subsequent to June 30, 2002 Com'e~e1y. thc ~Imllar expenditures and related revenues for contractual services completed pnor to June 30, 200 I, were recorded In the year ended June 30. 2002 Generally accepted accounting pnnclples reqUIre that revenue~ be recorded when available and me~urable and that ellopendllures be recorded when Incurrcd, rather than whcn funds are rccelved or dlsbu~ed
BUUGET
The CrI~P County Board of EducatIOn's budget IS a complete finanCIal plan for the School Dlstnct'" fiseal year and IS based upon e~tlmates of ellopendltures together With probable funding sources 'Iberc IS no ~tatutory problbltlon regarding overexpendlture of the budget at any level The budget for all governmental fund~ is prepared by fund, function and object fhe legal level of budget control wa~ establI~hed by the Board at the aggregate level Thc budget for governmental funds was prepared on a baSIS other than generally accepted accountIng prlnclplcs

-9-

CRISP COUNl Y HOARD OF EDUCAnON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STA rEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUl\T1NG POLICIES
The budget process begins when the School Dlstnct's administration prepare~ a tentative budget for the Board's approval After approval of thIs tentative budget b) the Board. such budget is advertised at least once in a newspaper of gcneral circulation In thc locality. At the next regular meeting of the Board after advertisement, the Board reeelvcs comments on the tentative budget, makes rcvlslOns as necessary and adopts a final school budget Thl~ final budget IS then submitted. In accordance wIth provlslOn~ 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 dunng the year All unexpcndcd budget authonty lap~c~ at fiscal year-end
CASH AJ'ljD CASH EQUIVALENTS
COMPOSITION OJ- DEPOSI rs
Cash and cash eqUIvalents consIst of cash on hand, demand deposits and short-tcrm Investments WIth onglnal matuntles of three months or less from the date of acqUisition In authonzed finanCial institutions Georgia Laws OCGA 45-8-14 authonze the School Dlstnctto deposit ItS funds In one or more solvcnt banks or Insured Federal savings and loan aSSOCiatIOns
INVESTMENTS
COMPOSIlION OF INVESTMENTS Investments made by the School Dlslnct In nonpartIcipating Interest-earning contracts (such a~ certificates of deposit) and repurchase agreements are reported at cost PartiCipating interest-earntng contracts and money markct Investments With a matunty at purchasc of one year or less are reported at amortized cost Both partIcipating interest-earning contracts and money marlct Investments WIth a matunty at purchase greater than one year are reported at faIr value The Official Code of Georgia Annotated Section 36-83-4 authonzes the School Dlstnctto Invest ItS funds and In selecting among optlOn~ for Investment or among institutIOnal bids for depoSits, the highest rate ofreturn shall be the obJcctlve. glvcn eqUIvalent condItions of safcty and liquidity Funds may be Invested In the follOWing
( I) OblIgations Issued by thc State of Gcorgla or by other state~,
(2) Obligations Issued by the Untted States government.
(3) Obligations fully insured or guarantced by the Umted States government or a Untted Statesgovenunentagency,
(4) Obligations of any corporatIOn of the Untted States government.
(5) Pnme banker's acceptances,
(6) The Local Govenunent Investment Pool adminIstered by the State of Georgia Office of Trcasury and FI~cal ServIces,
- 10-

CRISP COUNl Y BOARD or EDUCATION

EXHIBII "0"

NO I ES 1 () IIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreemcnts, and

(8) ObhgatlOm of other pohllcal subdlvl,lons ot the State of Georgia

RECEIVABLES

Receivables consIst of grant reimbursements due on Federal. State or othcr grants for expenditure, madc but not rClmbursed and other recclvable, dl>elo>ed from InfOrmallOn available Recelvable~ are recorded when elthcr the a%et or revenue recognitIOn Criteria has been met Receivables recorded on the gencral-purpo,e financial statement~ do not Include any amounts which would ncce,>Itate thc need for an allowancc for uncollectible receivables

PROPERTY TAXES

I he CrI,P County Board ofCommlsslone~ fixed the property tax levy for thc 2001 tax dlge~t year (calendar ycar) on September 27, 200 I (Icvy date) Taxes werc duc on December 20, 2001 (hen date) Taxcs collccted within the current fi>eal year or v.ilhIn 60 day, after year-end on the 2001 tax digest are rcported a~ revenue In fiscal ycar 2002 The CriSP County Tax Commissioner bills and collects the property taxes for the School DistriCt, withholds 2 5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School District Propcrty tax revenue~ dUring the ti,cal year ended June 30, 2002 lor maintenance and operallon~ amounted to $5.4')2,377 83

I he tax millage rate leVied for thc 2001 tax year (calendar year) for thc CriSP Count) Board of Education wa~ as follows (a mill equals $1 per thousand dollars of asse~sed value)

School Operallons

15.892 mills

~ALES fAXES

SpeCial Purpose I,ocal OptIOn Sales rax rcvenuc dUring the ycar amounted to $3,123,877 64 and IS to be used for capilal outlay for educational purposes or debt servIce Thl, sales tax wa~ authOrized by local relerendum and the ,ales tax must be re-authorIzed at least every five years.

INVENTORIES

rOOD INVENTORIES InventOries of donated food commodilles used In the preparatIOn of meals arc reported on the ComhIned Balance Sheet at their Federally a~slgned value Purchased foods Inventones arc reported on the Combined Balance Sheet at cost (lirst-In, lirst-out) Donated food eommodille, are recorded as revenues and expenditures at the lime commodity Items arc recclved Purchased foods inventOries are recorded a~ expenditures at thc time of purchase The mventOrIe., reported on the balance ,heet

- II -

CRISP COUNTY BOARD OF EOUCAnON

EXHIBIT "0"

NO rES TO I HE GENERAL-PURPOSE FINANCIAL STATEMEN I S

JUNE 30, 2002

Note L SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for donated food commodities and for purchased foods are equally offset by reservatIOns of fund balance which mdlcates that these amounts do not constItute "available spendable resources" even though they are a component of net current assets
COMPENSATED ABSENCES
Compensated absences represent obhgations of the School Dlstnct relatmg to employees' nghts to receive compensation for future absences based upon service already rendered This obligallon relates only to vestmg accumulatmg leave m which payment IS probable and can be reasonably esllmated No hablhty has been recorded m the mdlvldual funds for the current portion of thiS obligation as thIS amount IS deemed Immatenal to the gcneral-purpose finanCial statements
AddItIOnally, thc dollar value of accumulated compensated absences at June 30, which Will be payable from future resources has not been recorded m the General Long-Term Debt Account Group a~ thl~ liability IS also deemed to be Immatenal to the faIT presentation of these finanCial statements
GENERAL LONG-TERM DEBT
Recorded m the General Long-Term Debt Account Group IS the School Dlstnct's liability for a contractual obligallon With the Cordele Office BUlldmg Authonty for the acquISItion and constructIOn of maJor capltallacllilles
INTERFUND TRANSACTIONS
The School Dlstnct has the followmg types of mterfund transaCtIOns
Reimbursements ofexpenditures millally made from a fund that are properly applicable to anothcr fund arc recorded as expenditures m the reimbursing fund and as reductIOns of expenditures m the Iund that IS reimbursed
Operating transfers are recorded for all mterfund transactions other than rClmbursements
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose finanCial statements are captioned "Memorandum Only" to mdlcate that they are prcsented only to facilitate finanCial analysb Data In these columns do not present financial posItIOn or results of opemtlons m conformity WIth generally acccpted accountmg pnnclples Neither are such data comparable to a consolidallon Interfund elimmallon~ havc not been made m the aggregation of this data

- 12 -

CRISP COUNl Y BOARD OF r:DUCATION

EXHIBIT "D"

NOTES TO THr: GENERAL-PURPOSr: r1"JANCIAL STATEMrNT~

JUNE 30. 2002

Note 2 DEPOSITS Al\il) INVI:SI MEI'TS
COLl t\ rERALI/ AlION OF DEPOSITS Olliclal Code of Georgia Annotated (OCGA> SectIOn 45-8-12 provlde~ that there shall not be on depo\lt at any time m any depository for a I1me longer than ten days a sum of money which has not been sccured by surety bond. by guarantee of msurance. or by collateral The aggregate 01 the face \ alue of such surety bond and the market value of secunl1es pledged shall be equal to not less than 110 percent of the public funds bemg ~ecured after the deducl10n ofthe amount ofdeposit mSUrdnce If a depository c1eet~ the pooled method (OCGA 45-8-13 1) the aggregate of the market \alue ofthe \Ccuntle~ pledged to secure a pool of public funds ~hall be not les~ than 110 pen.ent ofthe daJly pool balance OCGA Secl10n 45-8-11 (b) provides an officer holdmg public fund~ may. m hiS dl~erctlon. walv<: the r<:qUlrement for ~eunty m the ea~e ofoperatmg fund~ placed m demand deposit cheekmg accounts
Acceptable ~cunty for deposits eonsl~ts of anyone of or any eombmal1on of the followmg
(I) Surety bond signed by a surety company duly quahfied and authon.led to transact bu\mess wlthm the State of Georgia.
(2) Insurance on accounts proVided by the Federal ])epo~lllnsuranee Corporal1on.
(3) Bonds. hills. note~. certificates ofmdebtedness or other direct obllgal1ons of the UIlIted States or of the State of Georgia.
(4) Bond~. bJib. note~. eertlficate~ of indebtedness or other obhgatlOn~ of the counties or mUIllelpahl1es of the State of Georgia.
(5) Bonds of any puhlle authonty created by the laws of the State of Georgia. provldmg that the statute that created the authOrIty authonzed the use of the bonds for this purpo~.
(6) Industnal revenue bonds and bonds of development authonl1es created hy the laws of the State of Georgia. and
(7) Bonds. bills. notes. certificates of mdebtedness, or other obllgal1ons of a ~uhsldlary corporal1on of the LJIlIted States government. which are fully guardJ1teed by the LJIlIted States government both as to pnnelpal and mterest or debt ohllgatlons Issued by Ihe Federal Land Bank. the Federal Home Loan Bank. the Federal Intermediate Credit Bank. the Central Bank for Cooperal1ves. the Farm Credit Banks. the Federal Home Loan Mortgage ASSOCiation. and the Federal NatIOnal \1ortgage ASSOCiation
CA I [GORI" ATION Of DEPOSII S At June 30, 2002. the hank balances were $3,095,632 11 The amount~ ofthe total bank balanee~ are c1a~slfied mto three eategones of credIt n~k .

- 13 -

CRISP COUN I Y BOARD or EDUCATION
NOTE,> TO THE G~1'IERAL-PURPOSE FINANCIAL STA II:MENTS JUNr 30, :!OO:!

rXHlB1 r "D"

\lote 2 DCPOSII SAND INVES I MEI\ TS

Catcgory 1 - Ca,h that IS In~ured (e g. ~cderal depo,ttory In~urance) or collaterahzed with secunltes held by the School Dlstnct or by the School Dlstnct's agent In the School Dlstnet', name
Catcgory 2 - Cash collaterahzed with sccuntle~ held by the pledging financial institution's trust departmcnt or agcnt In the School DI~tnct's name
Category 3 - Uncollaterahzed deposits (Th" Include~any bank balance that I~ collaterah7ed with ,CCUTlues held by the pledging financial Instltulton. or by IN tru,t dcpartment or agcnt but not In thc School DI,tnct's name)

I he School Dlstnct', deposits are classified b) nsk category at June 30, 2002, a~ follows

R"k Categorv

Bank Balance

$ 446.919 12 2.258.877 63 389.835 36

Total

CATfGORIZATlOI\ Of INVESTMCN1S At June 30.2002. the carrying value of the School Dlstnct's total Investments was $4,435.028 59 which IS matenally the same as faIr value Thl~ Inve,tment con,lstcd enurely of funds Inve~ted In the Local Government Investment Pool admInIstered by the Statc of Georgia. Office ofl rca~ury and F"cal Sen'lces which are not required to be categonzed since the School Dlstnct did not own any ,pcclfic Identifiable ~ecunltc, In the pool The Inve,tment poliCy of the State ofGcorgla Oflicc 01 I rea~ury and FI~cal Servlccs for the local Government Inve~tment Pool (Pnmary LiqUidity Portloho) does not proVide for Investment In denvaltves or SImilar Inve~tment, A descnptlon of the
Pnmary LiqUidity Portfoho IS as follows

The Pnmary Llquldtty Portfoho consIsts of Georgia ~und J. which IS a combinatIOn local and state gO\ernmcnt Inve,tment pool, and ~ und 6 Gcorgla Fund I \S a stable net asset value Investment pool which follows Standard and Poor's cntena for AAAm rated money market funds rhe pool" not rcgl~tered wtth the SEC as an Investment com pan) hut doe, operate Georgia Fund 1 In a manner conslstcnt with Rulc 2a-7 of the Investment Company Act of 1940 and IS con~ldercd to he a Rulc 2a7 hke pool I hc pool's pnmary obJccltVCS are ~afety of capItaL Investment Income. hqUldlty and dlveTSllicatlon while maintaining pnnclpal ($100 per share value) Net ~sct value IS calculated weeki) to en,urc stahlhty I he pool dlstnhute, earnings (net of management fees) on a monthly ba'is and value~ partlclpant'~ ~hares sold and redeemed based on $1 00 per ~hare Pooled ea,h and ea~h equl\'alent~ and Invcstment~ are reportcd at cost which approxlmatc, t:lIT value The pool docs not Issue any legall) binding guarantee, to support the value of the sharc, PartiCIpation In the pool
" voluntary and depoSits consIst of funds from local governments, operating and trust funds of Georgia's stale agencIes. collegc, and unn ersttle,. and current opcrating funds of the State of Georgia's Gcneral Fund

- 14 -

CRISP COUNTY BOARD m EDUCATION

EXHIBIT "D"

NOTES TO TIlE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS AND INVESTMENTS
Investmcnt~ In Gcorgla Fund I and Fund 6 are directed toward ~hort-terrn Instruments such as U S Treasury oblIgal1ons, ~ecurll1es Issued or guaranteed as to principal and mterest by the U S. Government or any of Its agencIes or mstrumentalIl1es, bankcr's acceptance~ and repurchase agreements Thc weIghted average matUrIty of GeorgIa Fund I may not exceed 60 days The wClghtcd average matunty for Georgia Fund I on Junc 30, 2002. was 0 12 years The averagc mvestment dural10n for Fund 6 on June 30, 2002, was 0 75 years
Note 3 NON-MONETARY TRANSACTIONS
The School Dlstnct receives food commodll1es from the Unltcd States Department of Agnculture (USDA) for school breakfast and lunch programs These commodll1es arc recorded at their Federally assigned value See Note I - Inventories
Note 4 RISK MANAGEMENT
The School Dlstnct IS exposed to varIOus nsb of loss related to torts, theft of. damage to, and destructIOn of assets. crrors or omiSSions, Job related 11Incss or mJuncs to employees, acts of God and unemployment compensatlon
The School Dlstnct has obtained commerCIal msurance for nsk ofloss assocIated With torts. errors or omlsslon~ and acts of God The School Dlstnct has neIther Significantly reduced coveragc for the,e n,ks nor mcurred losses (settlements) which excecded the School DIStnct'S Insurance coverage m any of the past three ycars
The School Dlstnct partIcIpates m the GeorgIa School Boards ASSOCIatIOn RIsk and Insurance Management System. a public enl1ty rI~k pool organized on July I. 1994. to develop and admmlster a plan to reduce nsk of loss on account of general liability, motor vehicle liabIlity, or property damage. mcludmg safety engmeerlng and other loss preventIon and control techniques, and to admml~ter one or more groups of self-m~urance fund" mcludmg the processmg and defense of claims brought agamst mcmbers of the ~ystem The School Dlstnct pays an annual premium to thc system for Its general msurance coverage AdditIOnal coverage IS proVIded through agreements by thc system with other companies accordmg to theIr specIalty for property, hOlier and machmery (mcludmg coverage for flood and earthquake), general liabIlity (mcludmg coveragc for sexual hara~~ment, mole~tation and abuse) and automobIle nsks. Payment of excess m~urance for thc sy~tem vanes by line of coverage
The School Dlstnct has cstablIshcd a IImlled nsk management program for workers' compensal1on 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 esl1mated claIms budgeted by management ba~d on known claims and pnor experience The School Dlstnct account, for claims with expendIture and liability being rcported when It IS probable that a los~ has occurred, and the amount of that los~ can be rea~onably estimated An exces~ covcrage msurance policy covers mdlvldual c1atms m exccss of $200,000 00 los~ per occurrcnce, up to the statutory limit
- 15 -

CRISP COUN fY BOARD OF EDUCATION

EXIIIBIT "0"

NOTES fa THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 4 RISK MANAGEMENT

Changes In the workers' compensalton claIms liability dunng the last two fiscal ycars are lll> follows

2001 2002

Beginning of Yea' Llabllltv

Claims and Changes In Estimate,

$

000 $ 22.54041 $

$

000 $ 51.40691 $

Claims Paid

End of Yea' L'dblilly

22,54041 $

000

51.40691 $

000

1 hc School DIMnct IS self-msured With regard to unemployment compensatIOn claims A prcmlUm IS charged when needed by the Gencral Fund to each user fund on the ba'is of the percentage of that fund'~ payroll to total payroll 10 order to cover esltmated claIms budgeted by management based on "nO\\;11 claIm, and pnor expenenee The School District account, for claIms With cxpendlture and liability bemg reported when it is probable that a los~ has occurred. and the amount of that loss can he n:a~onably eSllmated

Changes 10 the unemployment eompensalton claIms liabIlity dunng the last two fiscal years are as follows

2001 2002

Beginning
of Year
Llablhty

Cla,msand Change!> In Estimates

Claim!> Pa,d

Lnd of Yea' Llablht\

$

000 $ 23.49300 $ 23,49300 $

000

$

000 $

000 $

000 $

000

I he School District ha~ purchased surety bonds to provtde addlltonal insurance coverage a, lollows

Posllton Covered

Amount

Supenf1t~ndent
All Employees

$ 100,00000 $ 100,00000

Note 5 OPERATING LEASES

CriSP County Board of EducatIOn has entered mto various lelll>e~ a, le~see for copleN These lease~ are conSIdered for account109 purpo~sto be operating leases Lease cxpendltures for the year ended June 30, 200~, anllluntcd to $91,355 65 Future mmlmum lease payments for the'C lelll>es are a,
tollows

- 16 -

CRISP COUNTY BOARD or EDUCA nON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNI: 30, 2002

Note 5 OPERATING LEASES

Year Endmg

Amount

2003 2004 2005 2006 2007

$ 95,821 80 95.821 80 20.43935 13,58640 9.746 15

Total

$ 215.4l5..~

Notc 6 GEI\ERAL LONG-TFRM DFIH

CONTRACT - CORDELE OFFICE BUILDING AUTHORITY The School District entered
mto a contmct with the Cordclc Office BUlldmg Authority, dated July I, 1991, for the financmg of the con~tructlon ofvanous school facilltlcs Under the terms of the contract, the AuthOrity Issued $5,575,00000 m revenue bonds on behalf of the School DIstrict to finance the cost of acqumng. con~tructmg,furnlshmg and eqUlppmg a new high school to be oWllcd by the School Dlstnct and thc cost~ 01 makmg renovatl()n~ and modlficatlOn~ to eXlstmg schoob owncd by the School District The School DI~trlct ha~ contmctually agreed to make semi-annual payments. from Apnl 1. 1992 through October 1,20 II, to the Authonty sufliclent to retire pnnclpal and mterest on the bonds The obligation of thc School DIstrict I~ absolute and unconditIOnal so long as any of the bonds remam outstandmg Under the contmct. the Board of EducatIOn agreed to levy an annual tax on all taxable property wlthm the boundanes of the School DIStnCt, at such ratc~. wlthm any limits prescribed by law. ~ mdY bc ncce~sary to make paymcnts requm:d by the contmct

'I he changc~ m Geneml Long-Tcrm Debt dunng the fiscal year ended June 30, 2002, were a~ lollows

Contrdct Cordele Office BUlldmg Authorltv

Balance July 1,2001

$ 3,935,000 00

DcductlOns Paymcnts

285,00000

Balance June 30. 2002

$~O,OOQ.OO

At June 30. 2002, payments duc by fiscal ycar which mclude~ pnnclpal and mtcrcst for these Item~ arc as foll()w~

- 17 -

CRISP COUNTY BOARD 01 LDUCATION

EXIIIBII "D"

NOTES [0 THE GENrRAL-PURPOSE:. fiNANCIAL STATI:.MI:NTS

JUNE 10, 2002

Note 6 GENFRAL LONG-TERM DtB I

Fiscal Year Ended June 30

Contract Cordele Ollice BuIldmg AuthorItv

2003 2004 2005 2006 2007 2008 - 2011

$ 554,74250 554,91750 553.46750 555.52500 560,55000
2.250.450 00

Total PrinCipal and Interest

$ 5,029,652.50

Note 7 ON-BEHALF PAYMI:NTS

rhc School DIstrIct ha~ recognized revenues and expendlture~ In the amount of $384,221 17 for health Insura'~('~ and retirement contrIbutIOns paid on the School District's behalfby the follov.Ing State Agenci,,:;

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $330,493 17

Ollice of 1 reasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERSj rmployer's Cost In the amount of $53,728 00

Note 8 SIGNIFICANT COMMI rMENTS

The follOWing I~ an analySIS of significant outstanding construction or renovatIOn contract~ executed by the School DistrIct ~ of June 30, 2002, together With funding available

Prolect SA 01 S-640-170

Unearned Executed Contracts
$ ! 96,04l...29

Funding Available From State
$ 22 L2.Q!l.25

I he amounts descrIbed In thiS note arc not reOl:cted in thl: general-purpo~e tinanclal statements

- 18 -

CRISP COUNTY BOARD OF EDUCATION

rXHlRlT "D"

NOTrS fa THE GENERAL-PURPOSe FINANCIAl STATEMENTS

JUNF 30, 2002

I\ote 9 COI\ T1NGI:N r L1ABILlllbS

Amounb received or receivable pnnclpally lrom the I ederal government are ~ubleet to audIt and revlcw by grantor agencies Thl~ could re,ult In reque~ts for reimbursement to the gmntllr agency for any expendlture~ which are dIsallowed under grant terms I he School Dlstnct helleve~ that such disallowances. Ifany, will he Immatenal to Ih overall financial pO~ltlon

I he School DI,tnct I' a defendant In vanou, legal proceedings pertaining to matter~ Incldenlal to the pertormanle 01 routine School Dl>tnct Dperatlon~ I he ultimate dl~po~ItlOn of these proceeding, I~ not presently determInahle. hut IS not belle\'ed to he matenal to the general-purpo~e financIal
~tatement'
Note Ia ACCUMULATED EMPLOYEr',' LEA VE

The School DI~tnct's administrative stalf and certain other full-time employees earn ten day, of annual leave each year Annual leave may he accumulated to a ma.... lmum often day~ While the School DI,tnet doe~ not have a wntten poltey. It IS the practice of the School Dlstnct to pay cmployee~ an amount ha~ed on unused leave: up 10 the maXInlUm accumulation. at the currenl rate 01 pay. upon retirement or termination of employ ment Sec Note I - Compen,atcd Ab~ence~

I\ote II RETIREMlN I PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DFSCRIPTION Suh~tantlally all teacher~. administrative and c1encal per~onncl employed hy local ~chool dlstnct~ arc covered by the I eachers Retirement System of Georgm (TRS). which IS a cost-~hanng multiple employer ddined henefit pen~lOn plan TRS pro\ Ides service retirement. disabilIty retirement and ,un Ivor~ henctit, lor It~ memhcr~ In accordance With State ,tatute The Teacher~ Retirement Sy,tem of GcorgIa I~~ue~ a ~eparatc ,tand alone linanclal audIt report and a copy can be ohtaIned IrDm the Georgia Dcpartment of Audll~ and Accounh

TRS CON I RIBU liONS REQUIR[' [) AND MADE Employec~ofthc School Dlstnct who are covered hy TRS an: rcqulred by State statute to eontnhute 5% Df their gro" earnIng~ to I RS I he School DI~tnct ma"e~ monthly employer eOninhutlOn, to TRS at rate, adopted by the TRS Board of Trustees In aecordancc with State statute and as adVised hy their Independent actuary I he rcqulred employcr eontnhutlon rate I~ 924% and employ cr cOlltn butlOm for the current fiscal year and the preceding two lislal year> arc a~ follow~

Fiscal Year

Percentage Contnbuted

ReqUired Contnbutlon

2002 2001 2000

100% 100% 1000'0

$ 1.731,454 73 $ 2.031.3 70 64 $ 2,0 17.87627

- 19-

CRISP COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30 2002

ASSETS
Cash and Cash EquIvalents
Investments
Accounts ReceIVable
Inventones Food Donmed Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

351,12421 $

119,82438

31836642

43,08957

13,52344

38,77120 20,19023

Tolal Assels

$

771,541 63 $ _~1~3:;:3';;:134;:.7:.;8:;;:2_

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventones Food Donaled Commodities Purchased Food Unreserved Undeslgnated
Total Fund Equrty
Total LIabilities and Fund Equrty
See noles to the general-purpose finanCIal stalements
- 20-

$

46,89019 $

101,85122

33,541 22 99,806 60

$

148,74141 $

133,34782

$

38771 20

20,19023

563,83879 $

$

622,800 22 $

000 000

$

771,54163 $_~1:;;3::;:3":;:134;;:.7:..8:;;:2i;"

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30 2002

JUNE 30, 2001

$

470,94859 $

56928040

318,36642

296,844 88

$

559,30257

615,91558

426,04166

38,77120 20,190 23

34,10315 18,281 38

$

559,30257 $

1:464, 192 02 $ ==::,,1'.,;344=,5~5::,:1.;4;,:,7~

$

19835573 $

198,35573

96,74237

177,17378 $

235,70588

233,27800

434,93582

382,71438

30,92647

30,92647

122,63267

$

559,30257 $

841,391 80 $

741,05293

$

38,77120 $

34,10315

20,19023

18,281 38

$

---"-0",,00,--

563,838 79

551,11401

$

000 $

622,800 22 $ _----'60=3'-',4.:;98"-"-54'-

$

559,30257 $ 1,464,192 rL $ 1,344,55147

- 21 -

CRISP 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 SeNIceS General Admlmstrabon Maintenance and Operabon of Plant Student Transportabon Services Other Support ServiceS Fcod ServiceS Operallon
Total Expendrtures
Excess of Revenues over (under) Expendrtures
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 Penod Donated Commodrtles Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTIERY PROGRAMS

$

138 664 00 $ 1,016,688 28

1,514,42498

499,67904

$ 2,152,768 02 $ 1,016,68828

$

854,791 63

99,51866

34,63126 27,74673

$ 2,140,04324

$ 2,140,04324 $ 1,016,68828

$

12,72478 $

000

$

12,72478 $

000

603,49854

000

4,668 05 1,908 85

$

622,800 22 $_~==-o:0;:.;O:::O:..

See notes to the general-purpose finanCial statements - 22-

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,511,56800 $ 2,666,920 28 $ 2,550,208 24

3,223,94737

4,738,372 35

3,802,76961

499,67904

432,11347

S 4,735,51537 S 7,904,971 67 S 6,785,091 32

$ 3255,58894 $ 4110,38057 $ 3,67034250

866,42993 25266279 168,05364
53,48042 89,554 64 78,998 27

965,94859 252,66279 168,05364
88,11168 117,301 37
78,998 27 2,140,04324

644 520 98 22429360 22591499
62,909 83 30,24885 22,75607 1,990 349 79

S 4,764,768 63 $ 7,921,50015 $ 6,871 ,336 61

S

-2925326 $

-16,52848 $

-66,24529

29,25326

29,25326

51,75521

$

000 $

12,72478 $

-34,49008

000

603498 54

660,706 69

4,66805 1,90885

-2018727 -2,53080

$

000 $

622,800 22 $=~60=3.;:,4;::;98~54k

- 23-

CRISP COUNTY BOARD OF EDUCATION COMBINING BAlANCE SHEET CAPITAL PROJECTS FUND JUNE 30 2002

EXHIBIT "G"

ASSETS Cash and Cash EqUivalents AccOunts ReceIvable
Total Assets

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30 2002 JUNE 30 2001

S 33655304 92 S 33655304 92 S 1 550 7304 04

S

110,55775

562,886 19

673,44394

55396797

$

110,55775 S 392842111 S 4,03897886 $ 2,104,70201

LIAB'LITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Retalnages Payable
Total LlablNhes
FUND EQUITY
Fund Balances RMerved For SPLOST Projects Unreserved UndOSlgnale<l
Total Fund EquItY

$

99 501 97

S

99 501 97

$

4809335

4809335 $

2202876

1105578

11 05578

$

110,55775 S

4809335 S 158.651 10 $

22,02876

S 388032776 S 3,88032776 $ 208267325

$

000

000

000

000

$

000 $ 3880,32776 $ 3,880,327 76 $ 2,08267325

TotalLJablbhes and Fund Equity

$

11055775 S 3.928,421 11 $ 4,038 978 86 $ 2,104,70201

See notes 10 the general-purpose financial statements

24

CRISP COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BAlANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30 2002

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30 2001

REVENUES Slale Funds Taxes
Tatal Revenues EXPENDITURES

S

11055775

S 110,55775

S 2,57037014

2,570,370 14 S 2652,711 24

S

11055775 S 2570370 14 S 2,680,927 89 S 265271124

Caprtal Outlay

Land and Land Improvements

BUllchng and Building Improvements

S

Total Expenditures

S

Excess of Revenues over (under) Expenditures

S

S 110,55775

4053003 S 866,42929

4053003 976987 Q4 S 2,190,26299

11055775 S 906,95932 S 1,017,51707 S 2190,26299

000 S 166341082 S 1 663 410 82 S 472 448 25

OTHER FINANCING SOURCES Operating Transfers In

134,24369

134 243 69

Excess of Revenues and Other Financing Sources

over (under) Expenditures

S

FUND BAlANCE JULY 1

000 S 1,797654 51 S 1 797654 51 S 47244825

000

2,08267325

2,082,67325

1,610,22500

FUND BALANCE JUNE 30

S

.::0.::00:::,. S 3,880.32776 S 3,880.32776 S 2 082,673 25

See notes to the general-purpose finanCIal statements

25

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U S Department of Chlkt Nutnllon Cluster PassThrough From Georgia Department 01 Education Food and NutnUon Program Food services School Breakfast Program Nabonal SChool Lunch Program
Total Child Nutnbon Cluster
Other Programs Pass-Through From GeorgIS Department of Educabon Food and Nulntlon Program Food DlslnbulJon Program (1) Fresh Produce Program (1) Pass-Through From Southwest Geocgta Unrted Empowerment Zone Inc
Em~~ZoceP~ram
Total U 5 Department of Agncuhure
EducatIOn U S Department of 5peaal EducatIOn Cluster
Pass-fuough From Georgia Department of Education IndIViduals with DIsabilities Education Ad
Pan B - Speaal Education Flow Through Preschool Capacty BUilchng Improvement Severely Emotionally DIsturbed
Total Speaal Education Cluster
Other Prog.rams DIrect Impad AId 21 ~t Centul"j Commumty Leaml.ng Center Pass-Through From GeorgIS Department of Educabon Elementary and secondary Educabon Ad Trt18 I Grants to Local Educational Agendas T~1e II Eisenhower Professional Development Trtle VI IMovBtlve Education Program Strategies Class SIze ReduetJOn Goals 2000 State and Local Educahon Systemk Improvement Grants safe and Drug-Free SchoOls and Commumbes Vocational EducatIOn - BaSIC Grants to Slat8$ HlQh School Program Bastc Grant Pass-fuough From Georg18 Depanment of Human Resources safe and Drug-Free Schools and CommumtleS
Total U S Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY 10
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10553 10555

NlA $ 33215795

NlA

1 079201 12 $

$ 1,41135907 S

(2) 2,036 977 33 (3)
2036,977 33

10550 10550
10772

NlA

10022368

10022358

NlA

284223

284223

NlA

4042422

$ 1,554 849 20 $

4042422 218046746

84 027 84 173 84 173 84 027

NlA $ 41345399 $

NlA

188,88800

NlA

6517 00

NlA

22654959

$ 835408 58 $

41345399 188 888 00 (6)
6517 00 22654959
835408 58

84 041 84 287

14,75572 605272 07

(5) 605 272 07

84 010 84 281 84298 84 340
84 276 84186
84 048
84186

NJA

1 330,56593

1 330 565 93

NlA

34,25019

35,029 72 (3)

NlA

41,301 00

4130100

NlA

23212700

23212700

NlA

27,86710

2786710

NlA

38 834 00

6730773 (3,

NJA

78321 50

78321 50

NlA

30,76800

S 3289471 09 $

30 768 00 3283 968 63

26

CRISP COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDiTURES Of FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "'"

FUNDING AGENCY PROGRAM/GRANT
Defense U 5 Department of DIrect
Department of the Anny ROT C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

s 57,52771

(4)

Total Federal Fl.nanaal Asslstance

S 4881,64800 S

5464 436 09

NlA" Not AvaIlable

Noles to the Schedule of Exoendltures of Federal AwardS

(1) The amounts shown for the Food Dlsln'buhOn and Fresh Produce Programs represents the Federally assigned value of nonmonetary assIStance for donated commochbes received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately and are Included In the 2002 NatIOnal SChool Lunch Program
(3) Expenditures for thiS program tndooe Siale 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 $40 959 00 provided to 6Ubr'eClpl8nls

Major Programs are identified by an asterisk (.) In front of the CFDA number

The accompanymg schedule of expendlture& of Federal awards Ifldudes the Federal grant actiVIty of the Crisp County Board of EducalJon and Is presented on the modified accrual baSIS of accounting 'Nhlch IS the baStS of accounlJng used In the presentation of the general-purpose tinanaal statements

See notes (0 the general-purpose finanoal statements

- 27-

CRISP COUNTY BOARD OF EDUCATION
SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2002

SCHEDULE,

AGENCYffUNQIHG
GRANTS
Educauon Georg>a Departmenl 01
Quality BaSIC EduCabon Direct InstrudlOf'L8l Cosl KJndergarten Program KI1"1del'yarten Program - EaT1y InteNenbon Program Pnmary Grades (13) Program Pnmary GrCldes Eartv Intervention (1-3) Program upper Elementary Grades (4-5) Program Upper Elementary Grades Early I.ntervenbon (45) Prog<am Middle SChool (6-8) Program
HlQh SC:hooI General Educatk>n (Q-12) Program VocattonaJ Laboratory (9-12) Program Students wUh DlsablUDea
Cateoo<Y I Calegory II Category III Catego<y 1\1
C8tegoIyV GoftOd Studonl - C8tegoIy VI Remedial EducalJon Program
AllemalNe Educauon I'rog....
English Speakers at Olher Languages (ESOL) Speaal Edueabon Supplemental Speectl MedIa Center Program Twenty Days Addrbonal tnstruetron Staff and Professional Development lndlrect Cost Categoncal Gcants Pupil TransportatJon
Regu""
Bus Replacement Nursmg ServIceS Pnoopal Supptemerll Vcx:attonal SUpelVlS0"3 Mid-term Hold Harm~ Sparsrty Ectucabonal EqualiZ8llOll Formula FOOd Se<voces Vocaoonal EducatHJn Other Stale Programs -4-6 Statewide Aner Scttool Program K-3 Statewide Readlng Program Health Insuranc:e Mentor TeacherS
POS! secondary Oo1lons
Presdlool Handrcapped Program Severely Emotionally DIsturbed
LotIe<y I'rog....s
AssoslIve Tlldmology Computers In the Classroom
GeorgIa Sta1e Flnancmg end Investment Com"""",,," RetmburMmeru on ConstruelJon Protects
Goorglll School Ago C"'" Auooat>on The 3 00 Prqed
Office of SChool Readiness Pre-KJndergarten ProgllUTl
OffICe of Treasury and FIscal $erVICeB PublIC SChool Employees Relnmenl

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAl

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

S 113531400 3"14936 00
2603 363 00 72529300
112779500
701 gog1 00 221610500
1737 eoe 00
68536700
4156000 484,899 00 geO;36 00 157408 00
600100 238 17300 151 172 00 17057600
665700 361200 41457900 12665900 7608700 248127900

59239300 13174800
9713900 17 818 00 26 617 00 23'339000 20 000 00 164398500
S 144 527 00

138 664 00

39,13800 66 244 11 33049317
3672 00 207900

214,90500 1 296 663 00

862000 12187344

S 113531400 314936 00
260338300 72529300
112779500
70199100 221610500 173760800
68536700
41 56000 484 699 00 960936 00 157408 00
6001 GO 238173 00 151,172 00 17057600
685700 361200 41457900 126 659 00 7808700 2481 27900
59239300 131 74800
9713900 1781600 26 817 00 23339000 20 000 00 1 64398500 13866400 144 527 00
3913800 6824411 33049317
367200 207900 21490500 1 296 663 00
882000 121,87344

12726 47 53728 00

S 11055775 886 194 84

11055775 12726 47
88619484 5372800

28-

CRISP COUNTY BOARp Of EpUCATION SCHEPULE Of STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE~2'

AGENCYIFU~
CONTRACTS Educaoon Georgaa Departmenl of Georgia ReadIng Challenge Middle School Aner SchooUSummer Program

GOVERNMENTAL fUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s

1125523

5166 68

s

-1125523

5,165 68

S 19956 979 20 S 21666 920 28 $ 11055775 S 22734 457 23

See noIC5 to the generaJ-purpose fir'lancaal stalements

- 29-

CRISP COUNTY BOARD OF EDUCATION
SCHEDULE Of APPROVEP LOCAL OPTION SALES TAX PROJECTS
YEAR ENpED JUNE 30 2002

SCHEDULE '3~

PROJECT
The repayment of all pnncrpaJ and tnteresl coming due AprIl 1 1998 and thereaner the general Obltgatton debt evidenced by the Intergovemmental Contract dated as of July 1 1991 between the Cnsp County SChool Drstnct and the Cordele OffICe BUilding Authority tn the sum of $6 454 454 00
Funding of adclltJonal prOfEl'd$ tn the sum 01' $9 430 299 00 the remammg balance of the prOjected revenues to Illclude renovabOns and modemlzabon s of the audltonum and gymnasium bUlldangs at Cnsp County MIddle SChool and A S CtarX Elementary SChOOl Improvement of dnveways parking areas and drsJnage at audrtonums schools bus
Shop and warehoUses replacement of worn
out and I08nlClent heabnglcoolmg units ra rooting renovations Improvements rTIlllOr addrbOns and eqUiPPIng 01 exrstmg sctll:Jols of the Cnsp County School System bus shop bus ramps and canopies expand secunty and eIectronM:: surveillance systems for the high school and mo:ile SChOOl provtde metal storage bam foc agncutture program prOVIde: rTIII'l1mum of 3 networXed computers foc each classroom In the school system to Include all wmng fixtures other
technology replace worn out desks and
d\aJrs purchase of maintenance and suPPlY warehOuSe and acqUISIlJon 01 an property modernIze or reptace underground fuel storage Ianks at bus &hop replacement of press box IlQhrs poles and replacement
and expansIOn of bleachers at the present football f.etd Improve exISting baseball
track and band pracbce fields and facilities
Renovatrng and l'TlCX1emlzmg the audrtonums of the Cnsp County M!ddJe Sd'lOOI and A S CIa~ Elementary Sdlool adding to renovating repamng U'T1provmg and eqUipping exlstmg SChOOl bulldJngs or olher buildings or taallbeS useful 0/' deSU'abIe III connecbon therewdtl Including pa~lng areas present football stadium playgrounds and phySICal edueauon fields acqumng new school eQUIpment mdudng sd100l buses and olher SChool vehicles acqUlnng construe:bng and equlppmg new addJbonal daSSrooms athletic and storage faalrbeS acqumng any property necessary or desirable therefor bOth real and personal Illduetlng computer technology system-WIde the maximum amounl or the proJeCts to be paid WIth sales and use tax proceeds will be $18 000 000 00

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

S 645445400 S 645445400 $ 55350750 S 200313285 Ongomg

9430 299 00

9430 299 00

644764543 Ongomg

18000000 00 18,000,000 00

134 243 69

009"'9

S 33 1884 753 00 $ 33664 753 00 S 1 4BOA66 82 S 8450 778 28
(1) The SChool Dts.tncrs ongrnal cost estrmate as specrhed In the reso!ub(ln callmg for the Imposrtlon of the Local OptIon Sales Tax
(2) The Sdlool DlstnCfs Cl.llTent eabmata 01 total cost for tho proj8ct:s IndudeS all cost from PfOlect InCeption to comptenon
(3) The voters of Cnsp County approved the ImposrtJon of a 1% sales tax to fund the above pl'Of9CtS Arnounl5 expended for these prtlf8CtS may Include sales taK proceeds slate Ioca! property taKes and/or other funds over the Ide of the pro,ects

See notes to the genernl-purpose finanoal 5tatements

31

CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - DUALITY BASIC EDUCATION PROGRAM (aBE!
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30, 2002

SCHEDULE -4"

DESCRIPTION
Direct Inslrucbor1al Programs Kmdergarten Program Kindergarten Program-Earty InterventIOn Program Pnmary Grades (1-3) Program Pnma~ G'ades-Earl~ Intervenoon (1-3) Prooram Upper Elementary Grades (4-5) Program Upper Elementary Grades-Earty Inlervenbon (45) Program Middle School (6-8) Program High School General Educabon (9-12) Program Vocational Laboratory (9-12) Program Students WIth DIsabilities Category I Category II CateQOC"i III Category IV
GtIIed Student - Category VI
Remedaal EducabOn Program Alternabve EducatIOn Program
English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Medaa Center Program Staff and Professooa( Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE aBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

1 257458 00 $ 1246,66741 $

41 302 9B S 1 28797039

348 819 00

278,66185

2 :l65 39

28102724

2,883450 00

2,98665538

100,72805

3,08738343

80332500

704 36179

11 ~1 9B

71570375

1 24803900

1313,01005

5612987

1 36913992

778809 00 2,454 529 00 1924551 00
736 952 00 1 83240800
263 797 00 167436 00 188930 00
7,37300

~7 485 08 2536 936 15 2308017 82
766,57565
3584271 660606 61 91956381 195971 10 25539535 22951104 26231144
23306 66

251518 10992027 13247142 34 778 80
1074756 2123727
225980 300632 2998 29 12408 17

~9980 26 2848 856 42 2 44Q 489 24
801 354 45
3584271 671 354 17 94080'08 198 230 90 25840167 232509 33 27471961
23306 66

S

1489567600 $ 1507085990 S 544 211 33 $ 1561507123

45918300 84,272 00

53146668 6775684

68,766 15 32 9Il3 09

60023283 10071993

TOTAL aBE FORMULA FUNDS

$

1543913100 $ 1567008342 $ 64594057 $ 1631602399

(1) Compnsed at State Funds plus Local Frve Mill Share

See notes to tho genera\-purpose finanoal statements

- 32-

CRISP COUNTY BOARD OF EDUCATION GENERAL FUND - OUALITY BASIC EDUCATION PROGRAM (OBEl
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

Cnsp County High School Cnsp 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)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE OBE PROGRAM COSTS

$

3,566,281 00 $

415851564

3,082,96800

325196644

1,63382600

1488,40941

1,77590400

1 942,476 15

2,00160300

1,831,856 30

2,646 164 00

2,680,977 62

260.86967

188,930 00

$

14,895,67600 $ 15615.071 23

See notes to the general-purpose finanCIal statements - 33-

SECTION II COMPLIANCE AND fNTERNAL CONTROL REPORl S

h'''111 W. HIN10N
c:TATE AUt'! lOf-l
(~(j.l\ '3'-.(j 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
~).t \Vo.l...hlll!!ton ~lrc~1 ~ '1/1,' ~UI1C 21-1 1\11.ml..l, Gcorgl..l 3<)' 14-X4(M)
June 20 2003

Iionorahle Sonny Perdue. Governor Memher, of the General A~~embly
\kmhers of the State Board uf J- ducat IOn
and Superintendent and Memher, of the Cmp County Hoard of EducatIOn
RCPOR f ON COMPLIANCI A\jD 01\. IN fl:.RI\AL COI\TROL OVER FI~Al"CIAL
RL-I'ORTI"-'G BASI D 0:-< A0I AUOIT or FINANCiAl STA1EMENTS PERFORMED l\j
ACCORDANCC WITH GOVI-RNMI:N-I AUDITING STANDARDS
I adle' and Gentlemen
We ha\ e audlled the financial statement, of Crhp County Board of! ,dueatlOn a, of and for the year ended June ,0_ 2002. and have Is,ued our report thereon dated June 20. 2003 Thl, report wa' quail tied for Vdnou, departures from generally accepted accounting pnnclple,. as Identified In the dudllllr\ repon on the geneml-purpuse finanCial ,latements W conducted our audIt In accordance \~Ith dudItIng standard~ generally accepted In the llnIted Stall', of America and the 'tandards dppllcdhk 10 linanelaI audlh contamed m Government AudItmg St<1ndard,. Issued by the Comptroller General of the United States

\, pdn of obt<1mmg reaq)nahle a"uranee ahout whether Cn,p Cuunt) Buard ofEdue<1tlOn\ Iin<1nelal ~tatelllents arc tree of matenal misstatement. \w perfoffiled te~t~ of It> compliance With certain pro\ I>lOn, otlaw~. regulatIons, eontraet~ and grants. noncompliance With which could have a direct and material cfleet on the deternllnatlOn uf finanCial statement <1mount~ Ilowever. provldmg an opinion on compliance With tho>c proVISion' wa, not an ohJeetIve of our audIt. and aeeordIngl). we do not express such an opmlon fhe result~ oj our tests dl~lo,ed no In'lanees of noncompliance that arc reqUired to he reponed under Government "udItIng Standard,
Interndl <. ontrol Over rmanclal Reportmg
In planning and pertornllng our audIt. we l.On>ldered Cn,p Count) Board uf Fdueatllln\ mtern<11 control o-,er finaneldl reportmg murder to determme our audItmg procedures for the purpu,e of e'pre"mg our OpinIOn on the finanCial statemenh and not to prOVide a"uranee on the mlerndl
2002Y!3-40

control over financtal reporting Howcver, we noted certain mattcrs involving thc Internal control over financial rcportIng and Its opcrallon that wc con~lder to he rcportable condIl1ons Reportable conditions Involve matter, coming to our attcnlIon relating to ~lgnIficant deficlenclcs In the deSign or operation of the Intcrnal control over linancl3l reporting that, In our.ludgment could advcrsely allell Cn~p Count) Board of EducalIon's abl"t) to record, process, summan/e and report financial data con~l"ent wIth a"ertlon, 01 managemcnt In thc linanclal statemcnts Reportable condlllOns are descnbed In the acwmpanyIng Schcdule of Findings and Questioned Costs a, lIems FS-640 1-02-0 1 and I S-640 1-02-02
A matenal weakness \~ a cond\l1on m v..h\ch the desIgn or operallOn of one or more of the Internal control components does nol reducc to a rda\lvely low le\elthe n," that ml>stalements In amounts that would bc matcnal In relatIOn to the financial statements being audltcd may occur and not be detected \\Ilhm a tlmcly pcnod by cmployee~ In the normal course of pcrformIng thclr a%lgned functlOn~ Our con~lderatlOn ofthc Internal control over financIal reporting would not neeessanly dl~elose all mattcrs In thc Internal control that might be rcportahle condllIon~ and, accordIngl). would not nccessanly dlselose all reportable condllIons that are also consIdered to be matcnal wea"ne"e, Howcver, of the reportable condItIOn, descnbed above, wc consider lIem FS-M01-0202 to he a matenal wca"ncss
Thl~ report I' Intended ,olcl) for the informatIOn and u;e 01 thc management, membcrs of the Cnsp
County Board 01 Fdueatlon, r cderaldwardIng agenele~ and pass-through en\llles and IS not Intended
to be and ~hould not he used by anyone other than the~e ~peclfied parties
_ _~espectfully suhmlllcd,
W~
R ,ell W IIInton State AudItor
RWII gp 2002YB-40

lll~'~11 W.III"ION
STATE AUllllQH
( ".-11 ~~-{j :\7.:

DEPARTMENT OF AUDITS AND ACCOUNTS
~"4 W.......hm!!wn ~Irlcl ~ \V ~UII~ 214 Atl.lnl..l Gt:or!!I..l 30314-X400
June 20. 2003

Honorable Sonny Perduc. Governor Member, of the General /\>sembly Members of the State BIJ<lrd of Educallon
and Supermtendcnt and Members of the Cmp County Board of Educallon
REPORT ON COMPLIANCE WITH R[OUIREMFNTS APPLICABLE TO EACH MAJOR PROG RAM AND ON INTERNAL CONTROL OVER COMPLIANCI- IN ACCORDANCe WITII OMB CIRCULAR A-133
Ladles and Gentlemen
Compliance
We have audited the compliance of CriSP County Board of Education With the t) pe~ of compliance reqUirements de~crlbed In thc (J S Office of Management and Budget (OMB) C'trcu!ar .'1-133 Comp!lllnce Supplement that arc applicable to cach 01 It, major Fcderal programs for thc year ended
Junc 30. 2002 CrISp County Board of Educatlon's major r ederal programs arc Idenllfied In the
Summary 01 Auditor's Result~ SectIOn of the accompanYing Schedule of Fmdmgs and Quc~tlOned Costs Compliance with the requlremcnts of laws. regulallon~. contracts and grants applicahle to each of It~ major Federal programs IS the responSibility of CriSP County Board of Educallon'~ management Our responsibility IS to e"pre,s an opmlOn on CriSP County Board of I::ducatlon's complIancc ha~d on our audit
We conductcd our audit 01 compliance In accordancc with audltmg standard, generally accepted In the Umted State, of America. the standards applicahle to finanCial audits contamed m Governmcnt Audltmg Standards. Issued by thc Comptrollcr General of the United States, and OMB CIrcular A133 ..1udlt~ of State~. Loca! Governments. and Non-Profit ()rgam::atlOns Those standard, and OMB Clrwlar A-I33 require that we plan and perform thc audit to obtam rea~nable assurance about whether noncompliance With thc types ofcomplIancc requm:mcnts referred to abovc that could havc a direct and material effect on a major Federal program occurred An audit mcludes e"amInmg. on a tc~t baSIS. eVldcncc about thc Cn~p County Board of Education's compliance with tho>c rcqUirements and performing such othcr procedures as we considered necessary m the circumstances We believe that our audit proVides a reasonahle basiS for our 0plmon Our audit does not proVide a Icgal determmallon on Crisp County Board of Education', compliance With those reqUiremcnts
2002SA-IO

In our Opinion. the Cnsp County Board of EducatIon complied. In all matenal respects. with the reqUirements rcferred to abovc that are applicable to each of Its major Fcderal programs for the ycar endcd June 30. 2002
Internal Control Over Compliance
1 hc managcment ofCmp County Board of EducatIon IS responsible fore,tablIshlng and maintaining cffectlve Intcrnal control ovcr complIance with requlfement~ of laws, regulations. contracts and granL~ applIcable to Federal programs In planning and performing our audIt. we consldcrcd Cnsp County Board of Cducatlon'~Internal control over complIance With rcqulrements that could have a direct and matenal effect on a major Federal program In order to determine our auditing procedures for the purpo,e of expre,slng our opinion on complIance and to test and report on Internal control over complIance In accordance With OM13 Circular A-133
Our conSideratIOn of the Internal control over complIance would not necessanly dl>c1ose all mallers In the Internal control that might be matenal weaknesses A matenal weakness IS a condIlIon In whIch the design or operatIOn of onc or more of the Internal control components does not reducc to a relatively low level of nsk that noncomplIance With applIcable requlfements oflaws. regulatIon~. contracts and grants that would be matenal In relation to a major Federal program being audited may occur and not be detected WIthin a timely penod by employees In the normal course of performing their assigned functions We noted no mallers involVing the Internal control over complIance and It~ operation that we consIder to be matenal weaknesses
ThiS report I> Intended solely for the information and use of the management. members of the Cnsp County Board of Education. Federal awarding agencies and pass-through entItle, and IS not Intended to he and should not be u,ed hy anyone other than these speCified partIes
-- ~.~ ...Respectfully submitted. Rus II W Illnton State Auditor
RWHgp 2002SA-l0

sloe nON III AUDITEE'S RESPONSE TO PRIOR YEAR HNDlNGS AND QUr.STIONED COSTS

CRISP COUNTY BOARD OF EDCCA 1101\1 AUDII !:'E'S RESPONSE
SI TMMARY SCHEDULe OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002

PRIOR YI:AR FII\A:--JCIAL STATCMCN r r1NDlNGS ,,-ND QUES110NED COSTS

FINDING CONTROL NllMBER A;'I/D STATUS

FS-640 1-00-0 I FS-640 1-00-02 rS-640 1-0 1-0 I I S-640 1-0 1-02

Further Action Not Warranted Further ActIOn Not Wdrranted {;nre~olved - See Corrective Actlon!Responsc~ Unre~olved - See CorrectIve ActlOn!Respon~e~

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS G[NERALlEDGER Inadequate Separation of Duties hndmg Control Number rS-6401-01-01

We concur with thl~ findmg. however. due to current hudgetary constramts, the School District IS unable to hIre the additIOnal stalT reqUIred to clear thl~ findmg 1 he School DistrIct feel~ It has provided for the most appropnate a~slgnmentofduties with the number of per~onnel availahle to perform the accountmg functIOns With stafr limitatIOns thl~ findmg cannot he totally re~olved

GI:NCRAL IIXFD ASSETS l'a1lure to Maintain General Fixed As~ct~ Account Group rlndmg Control Number FS-640 1-01-02

We concur with thIS lind109 Due to current ~taffing Iimltatlon~ and budgetary con~lderations prohIbit109 the hlTlng of additIOnal adminIstrative stall. the School DI~lTJct ha~ deCIded not to pursue the recording of general fixed asset~ on the finanCial statements We .Ire loo"lng Into the Implementallon of thIS aceountmg ~tandard for fUlure
ImplementatIOn

PRIOR YI:AR I"EDER.I\L AWARD rINDINGS AND QUESTIONED COSTS

FINDlI\G CO\\lTROL NllMBER AND STATUS

I'A-640 1-00-01 FA-640 1-0 1-01

Further Action Not Warranted Unresolved - See Correctlvc ActlOn!Respol1.'>C~

- 1-

CRISP COUNTY BOARD OF EDUCATION AUDlT[['S RESPONSE
SUMMARY SCHEDULE or PRIOR Y[,AR rINDINGS AND OUESTIONED cos rs
YEAR ENDED JUNE 30, 2002
PRIOR YEAR r l:DERAL AWARD FINDINGS A~D OUES 1I0l'ED COSTS
CORRECTIVE ACTION/RESPONSES CASH MANAGEMENT ExcessIve Cash Balanee~ Reportable condition U S Department of Edueallon
1 hrough Georgia Department of Education
Fmdmg Control Number rA-6401-01-01 We concur wIth this findmg for fiscal year 2001 Procedures have been put mto place to momtor ea~h needs prior to eompletmg the DE Fonn 0147 "Monthly Report of Expenditure, and EstImated ReqUIrements for Grant Fundsll otus I'.otes"
-2-

SECTION IV f\NOINGS AND QUESTIONED COSTS

CRISP COUNTY BOARD Of EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COS fS
YEAR ENDED JUNI-. 30, 2002

SUMMARY OI- AUDI roR'S RESULTS

I \ pc of Report I~~ued on the: financial Statement~ The auditor's opinIOn on the Cnsp County Board of Educatlon'~ financial ;latements W.lS qualified for varIOus departures from generally accepted accounting pnnclples

2 Reportahle CondltlOn~ In Internal Control [)1,c1osed by the AudIt ofthc Financial Statement~ The audit report for the Cmp County Board of Education dlsclo~cd financIal statement reportahle: conditIOn; rclated to the follOWing control catcgone~

Cash and Cash [qUlvalent!> Gcncral h ,,"cd A~sets

Gcneral Le:dger

at thc re:portablc condItions descnbe:d above, Gene:ral hxed A%ets IS con~ldered to he: a
matenal weakness

3 Noncompliance: Matcnalto the FinanCial Statements fhe audIt of the Cn~p Count) Board of EducatIOn dl,c1osed no In~tances of noncompliance that were deemed to be: matcnal to the finanCial statements

4 Rcportable Condll1on~ In Internal Control Over Maim Programs "I he audit report for the Cnsp County Board of Educallon did not dl~c1o;e any reportable condltlOn~ In Internal control over major program,

5 Typc or Re:POrt Issue:d on Compliance: for MaJOr Program~ "' he auditor's Opinion on the Cnsp County Board of Educallon's report on compliance wllh requirement, applicable to major programs was unqualified

6 Audit flndlng~ Re:gulred to be Reported bv SectIon 51 O(a) of OMB Circular A- 13, The Cn,p County Board of Education', audit dl~c1oscd an audit finding requlre:d to he reportcd by sectIOn 51 O(a) ofOMB Circular A-133 rhlS audit finding I~ Included In section IV of thiS report

7 Malor Prollrams I cdcral awards audited as major programs arc a, follows 84 0 10 Elementary and Se:condary Education Act - Iltle I - Grants to Lo~al l,ducatlOnal Age:ncle, 84287 21" Century Commumty Learning Cenle:r

8 I\pe "A" Program Dollar Thre~hold The dollar thrcshold for type "A" programs wa~ $300,000 00

-I-

CRISP COUNTY BOARD OF EDUCAnON SCHEDULE OF FINDINGS AND OUESTIONFD COSTS
YEAR ENDED JUNE 30, 2002
SUMMAR Y OF ADDI [OR'S RbSULTS
9 Low Risk Audltcc 1be Cnsp County Board of Education qualified as a low nsk audltee based on a waiver granted by the U S Department of EducatIon
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH lcQUIVALENTS GENERAL LEDGER Inadequate Separation of Duties Reportable CondItIOn Repeated From Pnor Year finding Control Number FS-6401-02-01
The Cnsp County Board of Education dId not provide for adequate separation of dutle~ In the performance of certam accounting functIOns and related procedures "(be followmg defiCIenCies were noted
(I) Bank reconcIliations are reconCIled by someone directly connected to cash operations and arc not revIewed by an administrator Independent of cash operations.
(2) Someone independent of the general ledger posting function does not review Journal entries
I hese condltlon~ were a result of management'~deCISion to limIt the number of adminIstrative statT made responsible for accounting functIOns Management should penodlcally review thIS deCISion to determine If employees can be reassIgned to achIeve a hIgher degree of Internal controls With eXIsting statT
GENERAL FIXED ASSETS I allure to Maintain General FIxed A~sets Account Group Reportable Condition - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-6401-02-02
The Cmp County Board of EducatIOn dId not maintain a system-WIde General FIxed Assets Account Group WIthin the formal accounting records as required by generally accepted accounting pnnclples 11m. condItion results In the general-purpose finanCIal statements of the School Dlstnct being Incomplete and not In accordance With generally accepted accounting pnnclples Appropnate actIOn should be taken by the School DIstrict to est:lblish accountmg controls and procedures to proVide for mamtenance of a General Fixed Assets Account Group. The~ ~ubsldlary records should include an
-2-

CRISP COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND OUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL S1 A1 EMENT FINDINGS AND OUESTIONED COS1 S
GENERAL FIXED ASSETS fmlurc to Maintain Gencral Flxcd Assets Account Group Rcportable ConditIOn - Matenal Weakness Repeated From Pnor Year finding Control Number I S-6401-02-02
Inventory ofland, bUIldings and equlpmcnt owned by the School DIstrict and should Includc, but may not be Iimltcd to, date acquired, acqUIsItIOn cost, e~tlmated replacement cost. location and descnptlon Detailed rccords should be malntalncd of all additIOns and deletlOn~ to the General FIxed Assets Account Group
III FEDI:RAL AWARD FINDINGS AND OUESTIONED COSTS
CASH MANAGEMENT ExceSSIve Cash Balances Reportable CondItIOn U S Department of Education rhrough Georgia Dcpartmcnt of Education Repeated From Pnor Ycar Finding Control Number FA-6401-02-01
A revIew ofcash management procedures for the IndiViduals With Disabilities EducatIon Act - Part BSpecIal EducatIOn - Flow Through (CFDA 84.027), Preschool (CrDA 84 173) and Sevcrcly I:motlonally DIsturbed (CFDA 84027) programs dIsclosed the accumulatIOn of excessIve cash balances due to cash draws being made In advance of Immediate cash needs The Part B, SpecIal Education - Flow Through, Prcschool and Sevcrely Emotionally DIsturbed program~ maintained excessIve ending monthly cash balances for each of the twelve months of the year under rcvlew and had an e'l.ceSSIVc averagc monthly cash balance Internal controls should be implemented to en~ure that the School Dlstnct minimIZeS the time elapsmg between the transfer of funds from the Georgia Department of Education and dIsbursement of such funds by the School Dlstnct
-3-