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 DECATUR COUNTY BOARD OF EDUCATION - 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 FUNDS 
 
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 
 
COMBINED STATEMENT OF REVENUES, EXPENSES AND 
 
CHANGES IN FUND BALANCES 
 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS 
 
8 
 
E 
 
COMBINED STATEMENT OF CASH FLOWS 
 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS 
 
9 
 
F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
11 
 
ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
SPECIAL REVENUE FUND 
 
G 
 
COMBINING BALANCE SHEET 
 
24 
 
H 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
26 
 
CAPITAL PROJECTS FUND 
 
COMBINING BALANCE SHEET 
 
28 
 
J 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
30 
 
FIDUCIARY FUND TYPES 
 
K 
 
COMBINING BALANCE SHEET 
 
32 
 
L 
 
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
EXPENDABLE TRUST FUNDS 
 
34 
 
 DECATUR COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - 
 
SECTION I 
 
FINANCIAL 
 
ADDITIONAL FINANCIAL INFORMATION 
 
SCHEDULES 
 
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
2 SCHEDULE OF STATE REVENUE 
 
3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
4 
 
BY PROGRAM 
 
5 
 
BY SITE 
 
Page 
35 37 39 40 41 
 
SECTION II 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
 
SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRJOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 {USSELL W. HINTON 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. SW Suite 214 Atlanta, Georgia 30334-8400 
July 21, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Decatur 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 of the Decatur County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Decatur County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. 
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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 opm1on. 
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: 
 
2002ARL-13 
 
 * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. 
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. 
* The Board of Education did not recognize as expenditures, in the year ended June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001. were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. 
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. 
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Decatur County Board of Education as of June 30, 2002, and the results of its operations and the cash flows of its nonexpendable trust funds 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 21, 2003, on our consideration of the Decatur County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Decatur County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing 
2002ARL-13 
 
 procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects ofthe 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 of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 506-24. 
espectfully s u b m i t t : ~ 
 
RWH:gp 2002ARL-13 
 
State Auditor 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET 
ALL FUND TYPES ANQ 8CCOUNT GROUP JUNE 30. 2002 
 
ASSETS 
Cash and Cash Equivalents 
Investments Accounts Receivable 
lnventones Consumable Supplies Food Donated Commod1t1es Purchased Food 
Amount Available 1n Debt Service Fund Amount to be Provided in Future Years 
For Payment of Bon<I Debt 
Total Assets 
 
GENERAL FUND 
 
GOVERNMENTALFUNDTYPES 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 269,127 96 $ 
 
8,229 50 
 
$ 6,195,543 54 
 
483,692 99 
 
9,503,086 56 
 
300,156 24 
 
631,523 51 
 
163.196 39 
 
18,753 32 
54.589 22 17,691 09 
 
$ 6,658,896 17 $ 1,475,378 09 $ 9,511,316 06 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retamages Payable Deferred Revenue General Obhgat1on Bonds Payable 
Total L1ab1ht1es 
FUND EQUITY 
Fund Balances Reserved For Arbitrage Rebate Tax For Debt Service For Endowment Corpus For Inventories Consumable Supplies Food Donated Commod1t1es Purchased Food For Purpose of Bond Issue Unreserved Designated for Equipment Purchases Designated for Capital Outlay Designated for Self-Insurance Undes1gnated 
Total Fund Equity 
 
$ 
 
115,263 09 
 
16,021 16 $ 125.016 37 $ 
 
53.970 00 
 
660,978 00 
 
1,379 32 
 
4,103 40 
 
$ 
 
186.633 57 $ 785,994 37 $ 
 
4,103 40 
 
$ 
 
163,196 39 $ 
 
300.000 00 900,000 00 120.126 35 4,988,939 86 
$ 6,472,262 60 $ 
 
18,753 32 
54,589 22 17,691 09 
$ 
 
8,923,918.59 
 
598,350 09 689,383 72 $ 
 
583,294 07 9,507,212 66 
 
Total Llab1hties and Fund Equity 
 
$ 6,658,896 17 $ 1,475,378 09 $ 
 
The notes to the general-purpose financial statements are an integral part of this statement 
 
-2 - 
 
9,511,316 06 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
FIDUCIARY FUND TYPES TRUST FUNDS 
 
ACCOUNT GROUP GENERAL 
LONG-TERM DEBT 
 
TOTALS 
 
!Memorandum Onl~l 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
15,271 46 $ 
 
6,036 46 
 
$ 
 
298,665 38 $ 
 
508,986 25 
 
3,275,858 10 
 
28.997 98 
 
19,487,179 17 
 
11,163,851 79 
 
715,512 81 
 
1,647,192 56 
 
1,415,435 31 
 
$ 
 
4,006,642 37 
 
181,949 71 
54,589 22 17,691 09 
4,006,642.37 
 
227,460.86 
44,118 32 16,286 60 
3,978,994 01 
 
9,498.357 63 
 
9,498,357 63 
 
2,946,005 99 
 
$ 4,006,642 37 $ 
 
35,034 44 $ 
 
s 13,505,000 00 
 
35,192,267 13 $ 20,301,139 13 
 
$ 
 
115,263 09 $ 
 
153,980 01 
 
145,140 93 
 
204,179 30 
 
714,948 00 
 
652,16915 
 
1,379 32 
 
11,59414 
 
103,999 38 
 
11,660 79 
 
$ 
 
13,505,000 00 
 
13,505,000 00 
 
6,925,000 00 
 
$ 
 
13,505,000 00 $ 14,481,731 34 $ 8,062,582 77 
 
$ 4,006,642 37 $ 
 
15,51856 
 
0 00 $ 4,006,642 37 $ 
 
19,515 88 35,034 44 
 
$ 
 
357,094 77 
 
$ 4,006,642 37 
 
3,978,994 01 
 
15,51856 
 
15,51856 
 
181,949 71 
 
227,460 86 
 
54,589 22 17,691 09 8,923,918 59 
 
44,11832 16,286 60 1,012,90995 
 
300,000 00 900,000 00 120,126 35 6,190,099 90 
 
200,000 00 
124,051 63 6,262,121 66 
 
$ 20,710,535 79 $ 12,238,556 36 
 
$ 4,006,642 37 $ 
 
35,034 44 $ 
 
13,505,000 00 $ 35,192,26713 $ 20,301,139 13 
 
-3- 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2002 
 
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 Adm1mstrat1on School Adm1mstratIon Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital Outlay Debt Service 
Pnncipal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES} 
Accrued Interest on Bonds Sold Premium on Bonds Sold Proceeds from General Obligation Bonds 
Par Value Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) 
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures and Other Financing Uses 
FUND BALANCE JULY 1 
 
GENERAL FUND 
 
GOVERNMENTAL FUND 
 
SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 25,950,825 13 $ 277,761 41 
7,367,054 91 860,273 14 
$ 34,455,914 59 $ 
 
1,512,12443 4,998,269 50 
$ 444,845 16 
6,955,239 09 $ 
 
364,699 38 -301,593 20 
63,10618 
 
$ 23,154,078 66 $ 
1,032,074 58 714,249 91 
1,133,136 39 329,04310 
2,117,95791 326,714 71 
2,432,208 02 1,495,684 71 
161,941 95 342,649 51 
 
3,424,906 91 
381,372 32 300,540 28 
151,35344 66,747 70 
$ 4,333 61 72,011 13 
102,115 60 2,589,430 70 
 
246,217 29 2,471,855 80 
 
$ 33,239,739 45 $ $ 1,216,17514 $ 
 
7,092,811 69 $ 2,718,073 09 -137,572 60 $ -2,654,966 91 
 
$ 
 
-234,035 92 
 
$ 
 
-234,035 92 
 
$ 
 
117,255 80 
 
9,900,000 00 234,035 92 
 
$ 10,251,291 72 
 
$ 
 
982,139 22 $ 
 
5,490,123 38 
 
-137,572 60 $ 826,956 32 
 
7,596,324 81 1,910,887 85 
 
FUND BALANCE JUNE 30 
 
$ 6,472,262 60 $ 
 
689,383 72 $ =~9;:,f,5=0==7~,2=12==66= 
 
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 FUNDS 
 
TOTALS 
 
(Memorandum Only) 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 27,462,949 56 
 
5,276,030 91 
 
$ 3,497,657 65 
 
11,229,411 94 
 
64,011 05 
 
1,067,536 15 $ 
 
$ 3,561,668 70 $ 45,035,928 56 $ 
 
$ 17,521 44 
 
27,462,949 56 $ 5,276,030 91 
11,229,411 94 1,085,057 59 
 
25,585,654 87 4,748,693 83 
11,227,458 63 1,812,193 86 
 
17,521 44 $ 45,053,450 00 $ 43,374,001 19 
 
$ 26,578,985 57 
 
1,413,446 90 $ 1,014,790 19 1,133,136 39 
480,396 54 2,184,705 61 
572,932 00 2,436,541 63 1,567,695 84 
161,941 95 444,765 11 2,589,430 70 2,471,855 80 
 
$ 3,320,000 00 240,718 78 1,060 00 
 
3,320,000 00 240,718 78 1,060 00 
 
$ 3,561,778 78 $ 46,612,403 01 $ 
 
$ 
 
-110 08 $ -1,576,474 45 $ 
 
$ 26,578,985 57 $ 24,950,934 88 
 
13,721 06 
 
1,427,167.96 1,014,790 19 1,133,136 39 
480,396 54 2,184,705 61 
572.932 00 2,436,541 63 1,567,695 84 
161,941 95 444,765 11 2,589,430 70 2,471,855 80 
 
1,550,358 75 1,039,39912 1,0TT,181 30 
427,653 29 2,128,622 85 
297,737 75 2,418,41119 1,476,199 83 
168,262 31 391,917 30 2,402,212 00 1,922,315.32 
 
3,320,000 00 240,718 78 1,060 00 
 
3,110,000 00 395,637 53 106000 
 
13,721 06 $ 46,626, 124 07 $ 43,757,903 42 
 
3,800 38 $ -1,572,67407 $ 
 
-383,902 23 
 
$ 
 
27,758 44 $ 
 
27,758 44 
 
117,255 80 
 
9,900,000 00 234,035 92 -234,035 92 
 
$ 
 
27,758 44 $ 10,045,014 24 
 
$ 
 
27,648 36 $ 8,468,539 79 $ 
 
3,978,994 01 
 
12,206,961 56 
 
$ 
 
27,758 44 
 
117,255 80 
 
9,900,000 00 234,035 92 $ -234,035 92 
 
$ 10,045,014 24 $ 
 
222,916 24 -222,916 24 
0 00 
 
3,800 38 $ 8,472,340 17 $ 
 
-383,902 23 
 
15,431 61 
 
12,222,393 17 
 
12,606,295 40 
 
$ 4,006,642 37 $ 20,675,501 35 $ 
 
19 231 99 $ 20,694,733 34 $ 12,222,393 17 
 
-5- 
 
 DECATUR 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 2002 
 
EXHIBIT "C" 
 
GENERAL FUND 
 
BUDGET 
 
ACTUAL 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 25,591,790 00 $ 25,950,825 13 
 
177,075 00 
 
277,761 41 
 
6,836,157 00 
 
7,367,054 91 
 
392,767 58 
 
860,273 14 
 
Total Revenues 
 
$ 32,997,789 58 $ 34,455,914 59 
 
EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School AdmImstratIon Business Adm1mstration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation 
Capital Outlay 
 
$ 23,546,196 00 $ 23, 154,078 66 
 
1,084,889 00 790,231 00 
1,037,921 00 363,352 00 
2,211,295 00 339,884 00 
2,590,503 00 1,597,835 00 
174 668 00 142,996 00 
 
1,032,074 58 714,249 91 
1,133,136 39 329,043 10 
2,117,957 91 326,714 71 
2,432,208 02 1,495,684 71 
161,941 95 342,649 51 
 
38,012 00 
 
Total Expenditures 
 
$ 33,917,782 00 $ 33,239,739 45 
 
Excess of Revenues over (under) Expenditures 
 
$ -919,992 42 $ 1,216,175 14 
 
OTHER FINANCING SOURCES {USES} 
 
Other Sources Other Uses 
 
$ 
 
76 512 00 
 
-248,590 00 $ 
 
-234,035 92 
 
Total Other F1nancmg Sources (Uses) 
 
$ -172,078 00 $ -234,035 92 
 
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other F1nanc1ng Uses $ -1,092,07042 $ 
 
982.139 22 
 
FUND BALANCE JULY 1, 2001 
 
5,259,177 49 
 
5,490,123 38 
 
FUND BALANCE JUNE 30 2002 
 
$ 4,167,107 07 $ 6,472,262 60 
 
SPECIAL REVENUE FUND 
 
BUDGET 
 
ACTUAL 
 
$ 1,575,847 00 $ 1,512 124 43 
 
5,063,689 00 
 
4,998,269 50 
 
501,500 00 
 
444,845 16 
 
$ 7,141,03600 $ 6,955,239 09 
 
$ 3,494,856 00 $ 3,424,906 91 
 
379,073 00 289,129 67 
 
381,372 32 300,540 28 
 
167,077 00 16,13400 
 
151,353 44 66,747 70 
 
61,149 00 44,262 00 
 
4,333 61 72,011 13 
 
120,239 00 2,518,137 00 
 
102,115 60 2,589,430 70 
 
$ 7,090,056 67 $ 7,092,811 69 $ 50,979 33 $ -137,572 60 
 
$ 
 
1,723 00 
 
$ 
 
1,723 00 
 
$ 52,702 33 $ -137,572 60 
 
790,508 79 
 
826,956 32 
 
$ 843,211 12 $ 689,383 72 
 
The notes to the general-purpose financial statements are an integral part of this statement -7 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES 
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30, 2002 
 
EXHIBIT"D" 
 
QPERATING REVENUES None Recorded 
OPERATING EXPENSES Current Scholarships Operating Income (Loss) 
NONOPERATING REVENUES Interest Earned Net Income (Loss) 
FUND BALANCE J!,!LY 1 
FUND BALANCE JUNE 30 
 
ENDOWMENT FUNDS 
 
GRAGG SCHOLARSHIP 
 
PENNY SCHOLARSHIP 
 
FUND 
 
FUND 
 
TOTALS (Memorandum On~) 
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 
 
$ 
 
0 00 $ 
 
0 00 $ 
 
0 00 $ 
 
0 00 
 
$ 
 
161 63 $ 
 
58544 $ 
 
747 07 $ 
 
977 96 
 
$ 
 
-161 63 $ 
 
-585 44 $ 
 
-747 07 $ 
 
-977 96 
 
125 33 
 
261 00 
 
386 33 
 
950 96 
 
$ 
 
-36 30 $ 
 
-324 44 $ 
 
-360 74 $ 
 
-27 00 
 
5,129 22 
 
11,033 97 
 
16,163 19 
 
16,19019 
 
$ 
 
5,092 92 $ 
 
10,709 53 $ 
 
15,802 45 $==1=6=1=63=19= 
 
The notes to the general-purpose financial statements are an integral part of this statement -8 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND 
YEAR ENDED JUNE 30, 2002 
 
EXHIBIT "E" 
 
Cash Flows from Operating Act1v1t1es Cash Paid for Scholarships 
Cash Flows from Investing Act1vrt1es Interest Received on Investments Net Purchase/Sale of Investments 
Net Cash Provided (Used) by Investment Activities 
Net Increase (Decrease) in Cash 
Cash and Cash Equivalents - July 1 
 
ENDOWMENT FUNDS 
 
GRAGG SCHOLARSHIP 
 
PENNY SCHOLARSHIP 
 
FUND 
 
FUND 
 
TOTALS (Memorandum On!}'.) 
YEAR ENDED 
JUNE 30, 2002 JUNE 30, 2001 
 
$ 
 
-161 63 $ 
 
-585 44 $ 
 
-747 07 $ 
 
-1,259 67 
 
$ 
 
125 33 $ 
 
261 00 $ 
 
386 33 $ 
 
95096 
 
36 30 
 
324 44 
 
360 74 
 
308 71 
 
$ 
 
161 63 $ 
 
58544 $ 
 
747 07 $ 
 
1,259 67 
 
$ 
 
0 00 $ 
 
0 00 $ 
 
0 00 $ 
 
0 00 
 
0 00 
 
0 00 
 
0 00 
 
0 00 
 
Cash and Cash Equivalents - June 30 
Reconciliation of Operating Income to Net Cash Provided (Used) by Operating Act1v1t1es Operating Loss Decrease in Accounts Payable 
 
$ 
 
0 00 $ 
 
0 00 $ 
 
0 00 $ ====0===00= 
 
$ 
 
-161 63 $ 
 
-585 44 $ 
 
-747 07 $ 
 
-977 96 
 
-281 71 
 
Net Cash Provided (Used) by Operating Act1v1t1es 
 
$ 
 
-161 63 $ 
 
-585 44 $ 
 
-747 07 $ ===1='2=59=6=7~ 
 
The notes to the general-purpose financial statements are an integral part of this statement . 9- 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
REPORTING ENTITY 
The Decatur County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. 
.' 
FUND ACCOUNTING 
The School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. 
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To 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 the School District's educational activities. Governmental Fund Types include: 
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
 
- 11 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction 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 TYPES - the funds 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. These funds include: 
NONEXPENDABLE TRUST FUNDS Gragg Scholarship Fund and Penny Scholarship Fund - the funds used to account for endowments of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to graduating seniors ofthe Decatur County School System. 
EXPENDABLE TRUST FUNDS Mock Fund and Kirbo Fund - the funds used to account for income received which is used to provide scholarship aid to graduating seniors of the Decatur County School System. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. 
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 of these 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. 
 
- 12 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets. 
Governmental and expendable trust funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
Expenditures are generally recognized when the related fund liability is incurred. 
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2002. a substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also. the State's portion of the compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. 
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. 
- 13 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BUDGET 
The Decatur County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. 
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the 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 of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following: 
(I) Obi igations issued by the State of Georgia or by other states, 
(2) Obligations issued by the United States government, 
 
- 14 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note l: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, 
 
(4) Obligations of any corporation of the United States government, 
 
(5) Prime banker's acceptances, 
 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
RECEIVABLES 
 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
PROPERTY TAXES 
 
The Decatur County Board ofCommissioners fixed the property tax levy for the 200 I tax digest year (calendar year) on September 25, 2001 (levy date). Taxes were due on December 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 200 l tax digest are reported as revenue in fiscal year 2002. The Decatur County Tax Commissioner bills and collects the property taxes for the School District and remits taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $7,320,517.82. 
 
The tax millage rate levied for the 200 l tax year (calendar year) for the Decatur County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): 
 
School Operations 
 
12.01 mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax revenue during the year amounted to $3,862,357.03 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years. 
 
- 15 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVENTORIES 
CONSUMABLE SUPPLIES Consumable supplies are reported on the Combined Balance Sheet at cost (weighted average). The School District uses the consumption method to account for the consumable supplies inventory whereby an asset is recorded when supplies are purchased and expenditures are recorded at the time the supplies are consumed. The consumable supplies inventory reported on the balance sheet is equally offset by a reservation of fund balance which indicates that it is not available for discretionary expenditure even though it is a component of net current assets. 
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). The School District uses the consumption method to account for both inventories. Donated food commodities are recorded as an asset and as revenue when received, and expenditures are recorded as the inventory items are used. Purchased foods are recorded as an asset when purchased and expenditures are recorded as the inventory items are used. 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. 
GENERAL OBLIGATION BONDS 
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS 
The School District has the following types of interfund transactions: 
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. 
Operating transfers are recorded for all interfund transactions other than reimbursements. 
 
- 16 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
MEMORANDUM ONLY - TOTAL COLUMNS 
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool of public 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 any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation. 
(3) Bonds, bills. notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, 
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, 
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and 
 
- 17 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
(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 Fann Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $6,122,291.51. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
Category I - 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, 2002, as follows: 
 
Risk Category 
 
Bank Balance 
 
I 
 
$ 303,774.44 
 
2 
 
4,547,193.61 
 
3 
 
1,271,323.46 
 
Total 
 
$ 6,122,291.51 
 
CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $19,487,179.17 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 
 
- 18 - 
 
 DECATUR COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT "F" 
 
Note 2: DEPOSITS AND INVESTMENTS 
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 of the 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 I, which is a combination local and state government investment pool, and Fund 6. Georgia Fund I is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm 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. 
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term 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 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years. 
Note 3: NON-MONETARY TRANSACTIONS 
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories 
Note 4: RISK MANAGEMENT 
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God, unemployment compensation and a dental plan. 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions,job related illness or injuries to employees and acts of God. The School District 
 
- 19 - 
 
 ,------------------------------------- - - 
 
DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 4: RISK MANAGEMENT 
 
has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years. 
 
The School District has established a limited risk management program for dental insurance claims. A premium is charged to covered employees. Additionally, a premium is charged by the General Fund to each user fund on the basis of employee participation in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditures and liability being reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. 
 
Changes in the dental insurance claims liability during the last two fiscal years are as follows: 
 
2001 2002 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
$ 
 
0.00 $ 176,940.58 $ 176,940.58 $ 
 
0.00 
 
$ 
 
0.00 $ 186,778.88 $ 186,778.88 $ 
 
0.00 
 
The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. 
 
Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: 
 
2001 2002 
 
Beginning of Year Liability 
 
Claims and Changes in Estimates 
 
Claims Paid 
 
End of Year Liability 
 
$ 
 
0.00 $ 
 
0.00 $ 
 
0.00 $ 
 
0.00 
 
$ 
 
0.00 $ 
 
792.00 $ 
 
792.00 $ 
 
0.00 
 
The School District has purchased surety bonds to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent Comptroller Bookkeepers Payroll Clerk All Employees 
 
$ 20,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 100,000.00 
 
- 20 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 5: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: 
 
Purpose 
General Government - Series 1997 General Government - Series 2002 
 
Interest Rates 
4.00% - 5.00% 3.00%-4.00% 
 
Amount 
$ 3,605,000.00 9,900,000.00 
 
$13 .505.000.00 
 
Voters have authorized $6,100,000.00 in general obligation debt for the acquisition, construction and equipping of capital outlay projects which was not issued as of June 30, 2002. 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows: 
 
General Obligation 
Bonds 
 
Balance July l, 2001 
 
$ 6,925,000.00 
 
Additions G.O. Bonds 
 
9,900,000.00 
 
Deductions Debt Retired 
 
3,320,000.00 
 
Balance June 30, 2002 
 
$13,505,000.00 
 
At June 30, 2002, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
Fiscal Year Ended June 30 
2003 2004 2005 2006 2007 2008 
Total Principal and Interest 
 
General Obligation 
Bonds 
$ 4,028,446.88 2,033,862.50 2, 108, 156.25 2,173,612.50 2,237,125.00 2,300,100.00 
$14.881.303.13 
 
- 21 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2002 
 
Note 6: ON-BEHALF PAYMENTS 
The School District has recognized revenues and expenditures in the amount of $478,227.07 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 $419,162.07 
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 $59,065.00 
Note 7: CONTINGENT LIABILITIES 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. 
Note 8: 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. 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
- 22 - 
 
 DECATUR COUNTY BOARD OF EDUCATION 
 
EXHIBIT "F" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30. 2002 
 
Note 8: RETIREMENT PLANS 
Fiscal Year 
2002 2001 2000 
 
Percentage Contributed 
100% 100% 100% 
 
Required Contribution 
$2,175,955.80 $ 2,485,282.33 $2,347,670.28 
 
- 23 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Consumable Supplies Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
208,456.23 $ 
 
141,428.63 
 
483,692.99 
 
24,955.99 
 
26,936.89 
 
18,753 32 
54,589.22 17,691.09 
 
Total Assets 
 
$ 
 
808,138 84 $ ==1,;.;6;,,;;;8,l,;;;,3;,;:;,65;;;~52;;,,, 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue 
Total Llab1hbes 
FUND EQUITY 
Fund Balances Reserved For Inventories Consumable Supphes Food Donated Commodities Purchased Food Unreserved Undes1gnated 
Total Fund Equity 
 
$ 
 
8,708 72 $ 
 
34,416.52 
 
110,046 40 
 
133,949 00 
 
$ 
 
118,755 12 $ 
 
168,365 52 
 
$ 
 
18,753 32 
 
54,589 22 17,691.09 
 
598,350.09 $ 
 
0.00 
 
$ 
 
689,383 72 $ 
 
000 
 
Total L1ab1ht1es and Fund Equity 
See notes to the general-purpose financial statements. - 24- 
 
$ 
 
808,138.84 $ ==1=6;;8:=,3ai=65====52= 
 
 EXHIBIT"G" 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
349,884 86 $ 
 
517,808.92 
 
483,692.99 
 
472,152 70 
 
$ 
 
579,630.63 
 
631,523 51 
 
468,140.54 
 
18,753.32 
54,589 22 17,691 09 
 
20,812 35 
44,118.32 16,286.60 
 
$ 
 
579,630.63 $ 1,556,134.99 $ 1,539,319 43 
 
$ 
 
80,756.90 $ 
 
80,756 90 $ 
 
22,944 42 
 
81,891.13 
 
125,016.37 
 
106,286 96 
 
416,982 60 
 
660,978 00 
 
571,470 94 
 
11,660 79 
 
$ 
 
579,630 63 $ 
 
866,751.27 $ 
 
712,363 11 
 
$ 
 
$ _ _ _ _o_._oo_ 
 
$ 
 
0 00 $ 
 
18,753.32 $ 
 
20,812 35 
 
54,589 22 17,691.09 
 
44,118.32 16,286 60 
 
598,350 09 
 
745,739 05 
 
689,383.72 $ _ _8=2=6.,_;:,9;.;::.56~32=- 
 
$ 
 
579,630 63 $ 1,556,13499 $ 1,539,319.43 
 
- 25 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Adm1mstrat1on 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 
FUND BALANCE JUNE 30 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
181,184 00 $ 1,330,940.43 
 
1,825,828 94 
 
444,845.16 
 
$ 2,451,858.10 $ 1,330,940 43 
 
$ 1,027,382.19 
221,184 88 7,813.02 
 
59,277 10 
 
$ 2,589,430 70 
 
14,293 46 98978 
 
$ 2,589,430.70 $ 1,330,940.43 
 
$ 
 
-137,572 60 $ 
 
0.00 
 
$ 
 
-137,572.60 $ 
 
826,956.32 
 
0.00 000 
 
$ 
 
689,383 72 $ = = = = =00=0 
 
See notes to the general-purpose financial statements. - 26 - 
 
 EXHIBIT "H" - 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 1,512,124 43 $ 1,330,936 26 
 
$ 3,172,440 56 
 
4,998,269.50 
 
4,483,085 56 
 
444,845.16 
 
461,008-47 
 
$ 3,172,440 56 $ 6,955,239.09 $ 6,275,030.29 
 
$ 2,397,524.72 $ 3,424,906 91 $ 2,958,658.86 
 
160,187 44 292,727 26 
151,353 44 7,470.60 4,333 61 
57,717.67 101,125 82 
 
381,372.32 300,540.28 
151,353 44 66,747.70 
4,333 61 72,011 13 102,115 60 2,589,430.70 
 
352,434.95 276,265 66 
3,064 14 146,579.24 
48,098.39 9,743 37 
57,665 31 61,163.95 2,402,212 00 
 
$ 3,172,440 56 $ 7,092,811 69 $ 6,315,885 87 
 
$ 
 
0.00 $ 
 
-137,572.60 $ 
 
-40,855 58 
 
1,551 24 
 
$ 
 
000 $ 
 
-137,572.60 $ 
 
-39,304.34 
 
0.00 
 
826,956.32 
 
866,260 66 
 
$ 
 
0.00 $ 
 
689,383.72 $ ==8=2=6=,9=56==32= 
 
- 27 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002 
 
-------- - 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
Total Assets 
LIABILITIES AND FUND EQUITY LIABILITIES 
Accounts Payable Contracts Payable Retainages Payable 
Total Llab1lit1es FUND EQUITY 
Fund Balances Reserved For Arbitrage Rebate Tax For Purposes of Bond Issue Unreserved Undes1gnated Total Fund Equity 
Total L1ab1ht1es and Fund Equity 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
1,308 44 $ 
 
6,921 06 
 
586,089.03 
 
8,916,997 53 
 
$ 
 
587,397.47 $ 8,923,918 59 
 
$ 
 
4,103.40 
 
$ 
 
4,103 40 
 
$ 8,923,918 59 
 
$ 
 
583,294.07 
 
0.00 
 
$ 
 
583,294 07 $ 8,923,918 59 
 
$ 
 
587,397 47 $ 8,923,918.59 
 
See notes to the general-purpose financial statements. - 28 - 
 
 EXHIBIT "I" 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
000 $ 
 
8,229 50 $ 
 
42562 
 
9,503,086.56 
 
1,994,741.07 
 
31,31468 
 
$ 
 
0.00 $ 9,511,316 06 $ 2,026,481 37 
 
$ 
 
4,103.40 
 
$ 
 
11,594.14 
 
103,999 38 
 
$ 
 
4,103 40 $ _ _1_1_5'-'-,5-'-93----'-52_ 
 
$ 
 
$ _ _ _ _0_00_ 
 
$ 
 
000 $ 
 
$ 8,923,918 59 
583,294.07 
9,507,212 66 $ 
 
357,094.77 1,012,909.95 
540,883 13 
1,910,887.85 
 
$ 
 
000 $ 9,511,316.06 $ 2,026,481.37 
 
- 29- 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002 
 
REVENUES 
Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Support Services Business Administration 
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES (USES) 
Premium on Bonds Sold Proceeds from General Obhgat1on Bonds 
Par Value 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 
FUND BALANCE JUNE 30 
 
REGULAR 
 
BOND PROCEEDS 
 
$ 
 
13,376 20 $ 
 
-314,969.40 
 
$ 
 
13,376 20 $ 
 
-314,969 40 
 
$ 
 
246,217 29 
 
$ 
 
12,485 40 
 
192,515 78 
 
1,387,904 59 878,950 03 
 
$ 
 
205,001 18 $ 2,513,071 91 
 
$ 
 
-191,62498 $ -2,828,041 31 
 
$ 
 
117,255.80 
 
$ 
 
234,035 92 
 
9,900,000 00 364,699 38 
 
$ 
 
234,035 92 $ 10,381,955 18 
 
$ 
 
42,410 94 $ 7,553,913 87 
 
540,883 13 
 
1,370,004 72 
 
$ 
 
583,294 07 $ 8,923,918 59 
 
See notes to the general-purpose financial statements. - 30 - 
 
 EXHIBIT "J" 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
YEAR ENDED 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
364,699 38 $ 
 
364,699 38 
 
-301,593.20 $ _ _2_2_0~,0_56_36_ 
 
$ 
 
364,699 38 $ 
 
63,106 18 $ _ _2_2_0~,0_56_._36_ 
 
$ 
 
246,217 29 
 
12,485 40 $ 
 
26,995 60 
 
1,580,420 37 
 
1,827,756 98 
 
$ 
 
0 00 
 
878,950 03 
 
$ 
 
000 $ 2,718,073 09 $ 1,854,752 58 
 
$ 
 
364,699 38 $ -2,654,966 91 $ -1,634,696 22 
 
$ 
 
117,255 80 
 
$ 
 
-364,699 38 
 
9,900,000 00 598,735 30 $ -364,699 38 
 
$ 
 
-364,699 38 $ 10,251,291 72 $ 
 
221,365 00 221,365 00 
 
$ 
 
0 00 $ 7,596,324 81 $ -1,413,331.22 
 
0 00 
 
1,910,887 85 
 
3,324,219 07 
 
$ 
 
0 00 $ 9,507,212 66 $ 1,910,887 85 
 
- 31 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2002 
 
ASSETS Cash and Cash Equivalents Investments 
 
NONEXPENDABLE TRUST FUNDS 
 
ENDOWMENT FUNDS 
 
GRAGG SCHOLARSHIP 
 
PENNY SCHOLARSHIP 
 
FUND 
 
FUND 
 
$ 
 
5,092.92 $ _ _ _1;..;;0-'-7'-,...;;.09==53:;_ 
 
Total Assets 
 
$ 
 
5,092.92 $ ===1=0=,7=09==53= 
 
FUND EQUITY 
Fund Balances Reserved For Endowment Corpus Unreserved Undes1gnated 
 
$ 
 
5,000 00 $ 
 
10,518.56 
 
92 92 
 
190.97 
 
Total Fund Equity 
 
$ 
 
5,092 92 $ ===.;.10~,,;.;70;;;9;,,;5;;;3;,., 
 
See notes to the general-purpose financial statements - 32 - 
 
 EXHIBIT"K" 
 
EXPENDABLE TRUST FUNDS 
 
SCHOLARSHIPS 
 
MOCK 
 
KIRBO 
 
FUND 
 
FUND 
 
TOTALS 
 
JUNE 30, 2002 
 
JUNE 30, 2001 
 
$ 
 
6,036 46 $ 
 
6,036.46 $ 
 
1,841 88 
 
$ 
 
13,195.53 
 
28,997.98 
 
29,752.92 
 
$ 
 
13,195 53 $ 
 
6,036 46 $ 
 
35,034 44 $ ====3=1,=59=4.=80= 
 
$ 
 
15,518.56 $ 
 
15,518 56 
 
$ 
 
13,195 53 $ _ _ _6-'-",0-"-36.;;...._46_ 
 
19,515.88 
 
16,076 24 
 
$ 
 
13,195.53 $ 
 
6,03646 $ 
 
35,034 44 $ -====31=,5=9=4 =80= 
 
- 33 - 
 
 DECATUR COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2002 
 
EXHIBIT "L" 
 
REVENUES Other Funds 
EXPENDITURES Current Support Services Pupil Services 
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1 
FUND BALANCE JUNE 30 
 
SCHOLARSHIPS 
 
MOCK 
 
KIRBO 
 
FUND 
 
FUND 
 
TOTALS YEAR ENDED JUNE 30. 2002 JUNE 30, 2001 
 
$ 
 
321 44 $ 17,200 00 $ 
 
17,521 44 $ 
 
8,787 21 
 
$ 
 
721 06 $ 13,000 00 $ 
 
$ 
 
-399 62 $ 4,200 00 $ 
 
13,595 15 
 
1,836 46 
 
13.721 06 $ 3,800 38 $ 15,431 61 
 
6,991 12 1,796 09 13,635 52 
 
$ 13,195 53 $ 6,03646 $ 
 
19,231 99 $==1=5=4=3=1=61= 
 
See notes to the general-purpose financial statements 
 
- 34 - 
 
 DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Serv1ces School Breakfast Program National School Lunch Program 
 
10 553 10 555 
 
NIA 
 
$ 422,555 34 
 
(2) 
 
NIA 
 
1,272,468 39 $ 
 
2,456,625 49 (3) 
 
Total Child Nutnllon Cluster 
 
$ 1,695,023.73 $ 
 
2,458,625 49 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Food and Nutntion Program 
 
Fresh Produce Program (1) 
 
10.550 
 
NIA 
 
Food D1stnbut1on Program (1) 
 
10 550 
 
NIA 
 
20,101 49 110,703 72 
 
20,101 49 110,703 72 
 
Total U S Department of Agnculture 
Education, U s Department of 
Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with Dlsab1ht1es Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement 
 
. 84 027 . 84 173 . 84173 
 
$ 1,825,828 94 $ 
 
2,589,430 70 
 
NIA 
 
$ 551,437 39 $ 
 
NJA 
 
48,566 06 
 
NIA 
 
10,675 00 
 
551,437 39 48,566 06 10,675 00 
 
Total Special Educallon Cluster 
 
$ 610,678 45 $ 
 
610,678 45 
 
Other Programs Direct Impact Aid Pass-Through From Chattahoochee-Flint Regional Educational Service Agency d/bla Two Rivers Migrant Education Agency Elementary and Secondary Education Act T1Ue I Migrant Educallon Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Tille I Grants to Local Educallonal Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class S12e Reduction Goals2000 State and Local Education Systemic Improvement Grants Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Georgia Department of Technical and Adult Education Adult Education 
 
84 041 
84 011 
. 84 010 
84 281 84 298 64 340 84 276 64 048 84 002 
 
Total U S. Department of Education 
 
461 79 
 
(5) 
 
NIA 
 
224,250 25 
 
224,250 25 
 
NIA 
 
1,822,231 32 
 
1,822,231 32 
 
NIA 
 
40,008 30 
 
40,008 30 
 
NIA 
 
48,385 00 
 
48,385 00 
 
NIA 
 
216,448 00 
 
216,446 00 
 
NIA 
 
10,13567 
 
10,135 67 
 
NIA 
 
96,587 00 
 
96,567 00 
 
NIA 
 
136,366 24 
 
!4) 
 
$ 3,207,552 02 $ 
 
3,070,723 99 
 
- 35 - 
 
 DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2002 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
Health and Human Services, U S Department of Pass-Through From Georgia Department of Technical and Adult Education Temporary Assistance for Needy Fam1hes 
Labor. U S Department of Pass-Through From Georgia Department of Labor Workforce Investment Act 
Defense, U S Department of Direct Department of the Air Force R O T C Program 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
93 558 
 
NIA 
 
$ 98,663 70 
 
(4) 
 
17 255 
 
NIA 
 
$ 101,716 57 $ 
 
101,716 57 
 
$ 42,269 68 
 
(4) 
 
Total Federal Finanaal Assistance 
NIA = Not Available 
 
$ 5,276,030 91 $ ==5='=76=1,.,,,8=7=1_26= 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commodrt1es 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 2002 Nallonal 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 
 
Ma1or Programs are 1dent1fied by an astensk () in front of the CFDA number 
 
The School District did not provide Federal Assistance to any Subrec1p1ent 
 
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Decatur County Board of Education and 1s presented on the modified accrual basis of accounbng which 1s the basis of accounting used in the presentation of the general-purpose finanaal statements 
 
See notes to the general-purpose financial statements 
 
- 36 - 
 
 DECATUR COUNlY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
GRANTS Educabon. Georgia Department of Ouahty Basic Educabon Direct Instructional Cost Kindergarten Program Kindergarten Program - Early lntervenbon Program Pnmary Grades (1-3) Program Pnmary Grades - Early lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocabonal Laboratory (9-12) Program Students wrth D1sablhties Category I Category II Category Ill Category IV CategoryV Speoal Educabon lbnerant Special Education Supplemental Speech Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Twenty Days AddrtJonal Instruction categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Mid-Term Hold Harmless Pnncipal Supplements Sparsity VocabonalSupeMsors Migrant Education Education Equahzat10n Funding Grant Food Services Vocational Education Other State Programs 4-8 Statewide After School Program Apprenbcesh1p Program Health Insurance K-3 Statewide Reading Program Mentor Teachers Next Generation Schools Outdoor Classroom Post-Secondary Option Preschool Handicapped Program Special Education Low Incidence Grant Lottery Programs Ass1st1ve Technology Computers in the Classroom 
Office of School Readiness Pre-Kindergarten Program 
Office of Treasury and Fiscal Services Pubhc School Employees Retirement 
Technical and Adult Education, Georgia Deparlment of Adult Educabon 
 
See notes to the general-purpose financial statements 
 
-37- 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
GENERAL 
 
REVENUE 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 1,362,325 00 448,781 00 
3,301,033 00 351,338 00 
1,815,315 00 219,134 00 
2,871,375 00 2,233,023 00 
969,960 00 
409,392 00 1,334,959 00 1,302,318 00 
140,559 00 53,843 00 355 00 1,064 00 
203,765 00 161,757 00 220,420 00 530,675 00 
99,072 00 3,267,475 00 
159,319 00 
 
$ 1,362,325 00 448,781 00 
3,301,033 00 351,338 00 
1,815,315 00 219,134 00 
2,871,375 00 2,233,023 00 
969,960 00 
409,392 00 1,334,95900 1,302,318 00 
140,559 00 53,843 00 355 00 1,064 00 
203,765 00 161,757 00 220,420 00 530,675 00 
99,072 00 3,267,475 00 
159,319 00 
 
887,480 00 232,829 00 121,764 00 108,485 00 
23,615 00 20,000 00 37,961 00 88,284 00 1,774,395 00 
$ 137,790 33 
 
181,184 00 
 
50,957 00 35,000 00 419,162 07 75,983 46 
918 00 75,000 00 
1,500 00 5,543 00 70,947 00 23,609 00 
 
10,873 00 207,096 81 
 
887,480 00 232,829 00 121,76400 108,485 00 
23,615 00 20,000 00 37,961 00 88,284 00 1,774,39500 181,184 00 137,790 33 
50,957 00 35,000 00 419,162 07 75,983 46 
918 00 75,000 00 
1,500 00 5,543 00 70,947 00 23,609 00 
10,873 00 207,096 81 
 
1,112,970 62 
 
1,112,970 62 
 
59,065 00 
 
59,065 00 
 
243,280 27 
 
243,280 27 
 
$ 25,950,825 13 $ 1,512,124 43 $ 27,4621949 56 
 
 DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE "3" 
 
PROJECT 
To pay the cost of acqumng 1nstruc1Jonal and admin1strat1ve technology improvements for exIstIng schools, adding to, renovating, repamng, improving and equipping existing school bu1ld1ngs and other buildings and fac1llt1es useful or desirable In connection therewith and acqumng any necessary property therefor, both real and personal all at a maximum cost of $18,200,000 00 
For the purpose of the acquIsItIon, construction and equipping of a new West Bainbridge Elementary School a new bus garage facility and a new central office facility 1nclud1ng necessary furnishings and equipment, add1t1ons, renovations and improvements at existing School District schools and related facilities useful or desirable In connection therewith and acqumng any necessary property therefor, both real and personal system-wide technology add1t1ons and improvements and the acquIsItIon of land for add11Jonal schools, all at a maximum cost of $28,000,000 00 
 
ORIGINAL ESTIMATED 
COST (1) 
 
CURRENT ESTIMATED 
COST(2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) 
 
PROJECT STATUS 
 
$ 18,200,000 00 $ 19,098,521 64 $ 1,631,773 37 $ 17,466,748 27 Ongoing 
 
28,000,000 00 28,000,000 00 
 
884,725 03 
 
Ongoing 
 
$ 46,200,000 00 $ 47 098,521 64 $ 2,516,498 40 $ 17,466,748 27 
 
(1) The School O1stncts original cost estimate as specified in the resolution calling for the ImposI1Jon of the Local Option Sales Tax 
(2) The School District's current estimate of total cost for each project Includes all cost from prOJect InceptIon to completion 
(3) The voters of Decatur 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 
 
- 39- 
 
 DECATUR COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE} 
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002 
 
SCHEDULE "4" 
 
DESCRIPTION 
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1ht1es Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Altemat1ve Education Program 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
Media Center Program Staff and Professional Development 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
$ 
 
1,536,076 00 $ 1,445,141 42 $ 
 
29,061 05 $ 1,474,202 47 
 
506,019 00 
 
491,751 98 
 
8,226 71 
 
499,978 69 
 
3,722,047 00 
 
3,655,008 25 
 
119,892 86 
 
3,774,901 11 
 
396,147 00 
 
249,325 20 
 
17,772 72 
 
267,097 92 
 
2,045,967 00 
 
2,198,355 17 
 
131,901 36 
 
2,330,256 53 
 
247,955 00 3,237,591 00 2,517,823 00 1,093,669 00 3,656,037 00 
229,754 00 182,388 00 248,532 00 
 
175,656 64 3,325,569 53 3,434,974 38 
861,444 43 
51,305 31 1,322,731 55 1,540,963 99 
281,456 66 14,892 30 
208,447 57 179,790 61 243,021 69 
 
11,853 11 244,410 94 244,306 25 107,435 74 
706 45 7,236 35 27,869 54 32,196 86 3,253 85 
240 61 11,923 99 
 
187,509 75 3,569,980 47 3,679,280 63 
968,880 17 70645 
58,541 66 1,350,601 09 1,573,160 85 
284,710 51 15,132 91 
220,371 56 179,790 61 243,021 69 
 
$ 
 
19,620,005 00 $ 19,679,836 68 $ 998,288 39 $ 20,678,125 07 
 
598,357 00 111,707 00 
 
625,860 36 66,689 39 
 
114,615 98 45,705 91 
 
740,476 34 112,395 30 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
20,330,069 00 $ 20,372,386 43 $ 1,158,610 28 $ 21,530,996 71 
 
(1) Comprised of State Funds plus Local Five Mill Share 
 
See notes to the general-purpose financial statements 
 
- 40 - 
 
 DECATUR COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE) 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002 
 
SCHEDULE "5" 
 
SITE 
Potter Street Elementary School Elcan-King Elementary School LIiiian E WIllIams Elementary School West Bainbridge Middle School Hutto Middle School Bainbridge High School John Johnson Elementary School Jones-Wheat Elementary School West Bainbridge Elementary School Decatur County CrossRoads Central Office (Alternative Education Program} Transportation Fac1ilty 
TOTAL 
(1) Comprised of State Funds plus Local Five Mill Share 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
1.722,190 00 $ 
 
1,767, 115 68 
 
1.971, 705 00 
 
1,887,417 18 
 
1,161,189 00 
 
1,205,012 84 
 
2,235,937 00 
 
2.366,369 65 
 
2,165.280 00 
 
2,229,438 35 
 
4,879,189 00 
 
5,678,871 45 
 
1,821,525 00 
 
1,808,643 98 
 
1,705,797 00 
 
1,773.210 74 
 
1,708.661 00 
 
1.719,085 84 
 
243,021 69 
 
248,532 00 
 
-62 33 
 
$ 
 
19,620,005 00 $ 20,678,125 07 
 
See notes to the general-purpose financial statements - 41 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 USSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S. W. Suite 214 Atlanta, Georgia 30334-8400 
July 21, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Decatur 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 Decatur County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated July 21, 2003 This report was qualified for various departures from generally accepted accounting principles, as identified m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States 
Compliance 
As part of obtaining reasonable assurance about whether Decatur County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance wtth 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 of our audit, and accordingly, we do not express such an opinion The results ofour tests disclosed no instances of noncompliance that are required to be reported under Government Auditmg Standards 
Internal Control Over Financial Reporting 
In planning and performing our audit, we considered Decatur County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 
2002YB-41 
 
 control over financial reporting However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgment, could adversely affect Decatur County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6431-02-01 
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses However, we consider item FS-6431-02-0 I to be a material weakness 
This report is intended solely for the information and use ofthe management, members ofthe Decatur County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties 
Respectfully submitted, 
~ ~-<li-~ Hinton State Auditor 
RWHgp 2002YB-41 
 
 USSELL W. HINTON 
STATE AUDITOR 
(404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Washington Street. S W. Suite 214 Allanla, Georgia 30334-8400 
July 21, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Decatur County Board of Education 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
Ladies and Gentlemen 
Compliance 
We have audited the compliance ofDecatur County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) C,rcular A-133 Compbance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002 Decatur 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 oflaws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Decatur County Board of Education's management Our responsibility is to express an opinion on Decatur County Board of Education's compliance based on our audit 
We conducted our audit of compliance in accordance with auditing standards generally accepted m the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Orgamzatwns Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types 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 Decatur 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 Decatur County Board of Education's compliance with those requirements 
2002SA-10 
 
 In our opinion, the Decatur County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2002 
Internal Control Over Compliance 
The management of Decatur County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs In planning and performing our audit, we considered Decatur 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 0MB 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 of one or more of the internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performmg 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 Decatur 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 
.--:il.;___ --- ~ Respectfully submitted, 
 
RWHgp 2002SA-10 
 
State Auditor 
 
 SECTION Ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DECATUR COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002 
 
PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
FINDING CONTROL NUMBER AND STATUS 
 
FS-6431-00-01 FS-6431-01-01 
 
Further Action Not Warranted Unresolved - See Corrective Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number FS-6431-01-01 
 
Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements 
 
 SECTION IV FINDINGS AND QUESTIONED COSTS 
 
 DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
I SUMMARY OF AUDITOR'S RESULTS 
Type of Report Issued on the Financial Statements The auditor's opinion on the Decatur County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles 
2 Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Decatur County Board ofEducation disclosed a financial statement reportable condition related to the following control category 
General Fixed Assets 
The reportable condition described above is considered to be a material weakness 
3 Noncompliance Material to the Financial Statements The audit of the Decatur County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements 
4 Reportable Conditions in Internal Control Over Major Programs The audit report for the Decatur 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 Decatur County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified 
6 Audit Findings Required to be Reported by Section 51 0(a) of 0MB Circular A-133 The Decatur County Board ofEducation's audit did not disclose audit findings required to be reported by section SIO(a) ofOMB Circular A-133 
7 Major Programs Federal awards audited as major programs are as follows 84 0 IO Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84 027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84 173 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84 173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00 
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 DECATUR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee 
The Decatur County Board ofEducation qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6431-02-01 The Decatur County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the fonnal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported. 
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