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

DOOLY 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

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

28

2 SCHEDULE OF STATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

DOOLY COUNTY BOARD OF EDUCATION
-TABLE OF CONTENTS-
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 WITII GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITII REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF.PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RussEu. W. H1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington S1reet. S.W., Suite 214 Atlanta, Georgia 30334-8400
August 27, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dooly County Board of Education

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

Ladies and Gentlemen:

We have audited the accompanying general-purpose financial statements ofthe Dooly 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 ofthe Dooly County Board ofEducation's

management. Our responsibility is to express an opinion on these general-purpose financial

statements based on our audit. .



We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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-14

* 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 aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material;
In our opinion, except for the effects on the general-purpose financial statements of the matters
referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Dooly County Board ofEducation as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
As discussed in Note 1 to the general-p'urpose financial statements, during fiscal year 2002, the Board of Education changed its method of accounting for the salaries of certain ten-month employees from a cash basis to modified accrual basis. This change is in accordance with accounting principles generally accepted in the United States of AmeJ:ica.
In accordance with Government Auditing Standards, we have also issued our report dated August 27, 2002, on our consideration ofthe Dooly County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Dooly County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through H) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S Office ofManagement and Budget Circular A-133,Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
2002ARL-14

A copy ofthis report has been filed as a pennanent record ih the office ofthe State Auditor and made

available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-

6-24.

.

Respectfully submitted,
~~~.::!;;:

RWH:gp 2002ARL-14

State Auditor

DOOLY COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

1,908,939.63 $

431,199.84 $

620,725.68

4,048,566.39

1,176,605.39

258,667.97

146,174.93

13,396.60 6,976.17

Total Assets

$ 3,085,545.02 $

710,240.58 $ 4,815,467.00

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Contracts Payable Deferred Revenue G1::neral Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

240,620.72 $

40,714.31

884,475.43

155,923.05

$

117,778.07

97,215.59

$ 1,125,096.15 $

293,852.95 $

117778.07

$

100,466.00

$

13,396.60

6,976.17

$ 3,378,969.09

620,889.16

1,859,982.87 $ 1,960,448.87 $

396,014.86 416,387.63 $

697,830.68 4,697,688.93

Total Liabilities and Fund Equity

$ 3,085,545.02 $

710,240.58 $

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

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4,815,467.00

EXHIBIT"A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

$ 2,960,865.15 $ 2,467,789.41

$

22.06

4,048,588.45

4,807,405.90

1,581,448.29

2,115,091.08

$

22.06

3 764 977.94

13,396.60 6,976.17 22.06
3,764,977.94

12,387.52 8,974.98
25,727.84
4,274,272.16

$

22.06 $

3,765,000.00 $ 12,376,274.66 $ 13,711,648.89

$

281,335.03 $

279,737.56

1,040,398.48

1,007,306.18

117,778.07

97,215.59

55,463.84

$

3,765,000.00

3,765,000.00

4,300,000.00

$

3,765,000.00 $ 5,301,727.17 $ 5,642,507.58

$

22.06

0.00

$

22.06

$

100,466.00

22.06 $

25,727.84

13,396.60 6,976.17
3,378,969.09 620,889.16

12,387.52 8,974.98
3,385,445.20 471,695.44
1,034,921.35

2,953,828.41

3,129,988.98

$ 7 074 547.49 $ 8,069,141.31

$

22.06 $

3,765,000.00 $ 12,376,274.66 $ 13,711,648.89

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

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

GENERAL FUND

SPECIAL REVENUE
FUND

$ 7,499,049.85 $ 123,856.99
3,494,283.29 106,222.64
$ 11,223,412.77 $

536,264.08 2,116,256.18
51,825.99
2,704,346.25

$ 6,974,989.40 $ 1,455,225.69

260,618.17 573,489.76 242,216.60 261,152.29 848,161.02 123,602.08 893,319.14 616,928.77
40,730.50 . 116,075.51
103,131.33 10,165.32

63,290.52 153,535.85
13,154.50 37,231.77
39,141.35 48,862.35
58,380.31 902,036.36

$ 11,064,579.89. $

$

158,832.88 $

2,770,858.70 -66,512.45

$

$

-80,365.04

$

-80,365.04 $

$

78,467.84 $

1,881,981.03

79,380.42
79,380.42
12,867.97 404,509.39
1,009.08 -1 998.81

FUND BALANCE JUNE 30

$ 1 960 448.87 $ ==4=1=6==,3=87===63==

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

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Onl:r'.l

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

313,402.25

$ 8,348,716.18 $ 9,467,696.87

2,240,113.17

2,162,739.14

141,106.38 $

788,906.19

4,424,295.86

4,440,027.31

85,678.06

174.70

243,901.39

725,897.60

$

540,186.69 $

789,080.89 $ 15,257,026.60 $ 16,796,360.92

$ 8,430,215.09 $ 9,388,185.33

$

50.00

1,600,355.43

323,908.69

263,372.86 .,

727,025.61

770,954.47

242,216.60

266,076.10

274,306.79

266,502.43

885,392.79

1,258,112.99

123,652.08

206,381.04 .

932,460.49

846,926.19

665,791.12

730,758.60

40,730.50

36,686.50

174,455.82

78,219.29

902,036.36 103,131.33

1,022,873.03 271,499.64

'"

1,610,520.75

239,421.69

$

535,000.00

279,786.67

535,000.00 279,786.67

$

1,600,405.43 $

814 786.67 $ 16,250,630.69 $ 15,645,970.16

$

-1,060,218.74 $

-25,705.78 $

-993,604.09 $ 1,150,390.76

$

984.62

$

984.62

$

-1,059,234.12 $

5,756,923.05

$

25,064.22

$

8Q,365.04

-80,365.04

4,300,000.00 159,184.34 -159 184.34

$

0.00 $ 4,325,064.22

-25,705.78 $ 25,727.84

-993,604.09 $ 8,069,141.31

5,475,454.98 2,595,006.48

1,009.08 -1 998.81

4,285.11 -5,605.26

$

4,697,688.93 $

22.06 $ 7,074,547.49 $ 8,069,141.31

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DOOLY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - /NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2002

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 7,396,656.00 $ 7,499,049.85

123,856.99

3,300,095.00

3,494,283.29

82,000.00

106,222.64

Total Revenues EXPENDITURES

$ 10,778,751.00 $ 11,223,412.77

Current Instruction Support Services . Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central ~upport Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay
Total Expenditur~s
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES /USES}

$ 7,445,587.00 $ 6,974,989.40

287,348.00 647,413.00 240,128.00 300,817.00 885,423.00 124,022.00 976,980.00 610,658.00
40,731.00 7,042.00

260,618.17 573,489.76 242,216.60 261,152.29 848,161.02 123,602.08 893,319.14 616,928.77
40,730.50 116,075.51

88,500.00 60,000.00

103,131.33 10 165.32

$ 11,714,649.00 $ 11,064,579.89

$ -935,898.00 $ 158,832.88

Other Sources Other Uses

$ -80,000.00 $

-80 365.04

Total Other Financing Sources (Uses)

$ -80,000.00 $

-80,365.04

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

$ -1,015,898.00 $

78,467.84

FUND BALANCE JULY 1. 2001 (Restated See Note 1) 1,521,772.23

1,881,981.03

Adjustments

-24.00

FUND BALANCE JUNE 30. 2002

$ 505,850.23 $ 1,960 448.87

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 494,745.00 $ 536,264.08 2,225,199.00 2,116,256.18

75,700.00

51,825.99

$ 2,795,644.00 $ 2,704,346.25

$ 1,419,142.00 $ 1,455,225.69

72,146.00 170,377.00

63,290.52 153,535.85

24,226.00 22,293.00

13,154.50 37,231.77

17,774.00 22,419.00

39,141.35 48,862.35

72,318.00 1,077,700.00

58,380.31 902,036.36

$ 2,898,395.00 $ 2,770,858.70 $ -102,751.00 $ -66,512.45

$ 81,500.00 $ 79,380.42 $ 81 500.00 $ 79 380.42

$ -21,251.00 $ 12,867.97

458,054.04

383,146.89

$ 436,803.04 $ 396,014.86

The notes to the general-purpose financial statements are an integral part of this statement. -6 -

! . t ' ....
DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30,'2002

EXHIBIT "D"

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Dooly County Board ofEducation (School District) was established under the laws ofthe 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 1s a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of 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.

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DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

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 accompl_ish 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.
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 funds are accounted for using a current financial resources measurement focus; With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as . liabilities in the governmental funds. Other liabilities, which are not expected to be financed from
available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis 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.
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DOOLY COUNTY Bo'ARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30; 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Expenditures are generally recognized when the related fund liability is incurred.

For fiscal year 2002, the School District changed its method of accounting for the final two' payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal.year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. Adjustments were also made for the similar salaries, benefits and related State revenues earned in fiscal year 2001 and recorded in fiscal year 2002.

The net effect of the above accounting treatment results in the accompanying financial statements reflecting expenditures for those salaries and benefits earned by employees during fiscal year 2002 and the related State revenue to fund these contracts. In addition, the fund balance at July 1, 2001, has been restated for salaries and benefits earned by ~mployees in fiscal year 2001 but not paid until July and August 2001 and for the related State revenue for these contracts. An analysis of this restatement is as follows:

General Fund Balance July 1, 2001

$2,045,504.10

Add: State Revenue Related to July and August 2001 Salary Payments Earned by Employees in Fiscal Year 2001

930,108.47

Deduct: July and August 2001 Salary Payments Earned by Employees in Fiscal Year 2001

-1,093,631.54

General Fund Balance July 1, 2001 (Restated)

$ 1,881,981.03

This change is in accordance with generally accepted accounting principles.

BUDGET

The Dooly County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the 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 ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with

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DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund. To facilitate comparison with the budget, the following adjustments have been made to fund balance as reflected on Exhibit "B" ofthis report:

Special Revenue
Fund

FUND BALANCE JULY 1,2001

$ 404,509.39

Adjustments Inventories - July 1, 2001 Food Donated Commodities Purchased Foods

-12,387.52 -8,974.98

Fund Balance July 1, 2001 (Budget Basis)

$ 383,146.89

Excess ~f Revenues and Other Financing Sources over (under) Expenditures a.-id Other Financing Uses

12,867.97

FUND BALANCE JUNE 30, 2002 (Budget Basis)

$ 396,014.86

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 insur:ed Federal savings and loan associations.

INVESTMENTS

COMPOS.ITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported

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DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest-rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) .Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the ~set 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 Dooly County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 16, 2001 (levy date). Taxes were due on January 31, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Dooly 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. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $3,437,189.61.
- 11 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

School Operations

15.75 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $930,012.57 and was recorded in the Capital Projects and Debt Service Funds. The State will terminate collection of this tax once an additional $4,225,726.11 has been collected or on December 31, 2005, whichever occurs first.

INVENTORIES

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

COMPENSATED ABSENCES

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

Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.

GENERAL OBLIGATION BONDS

The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are . recognized in the financial statements during the year bonds are issued. General obligation bonds

- 12 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS .

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Tenn Debt Account Group.

INTERFUND TRANSACTIONS

The School District has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another

fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the

fund that is reimbursed.



Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY -TOTAL COLUMNS

Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

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 ofthe 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 ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperati~g 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,

- 13 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $5,994,261.43 The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with

securities held by the School District or by the School District's agent in the

School District's name.



Category 2 - Cash collateralized with securities held by the pledging financial institution's

trust department or agent in the School District's name.

Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized

with securities held by the pledging financial institution, or by. its trust

department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2002, as follows:

Risk Category

Bank Balance

1

$ 300,000.00

2

402,372.89

3

5,291,888.54

Total

$ 5.994.261.43

- 14 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS

CATEGORIZATION OF INVESTMENTS Investments are classified as to risk by the three categories described below:

Category .1 - Insured or registered, or securities held by the School District or the School District's agent in the School District's name.
Category 2 - Uninsured or unregistered, with securities held by the counterparty's trust department or agent in the School District's name.
Category 3 - Uninsured or unregistered, with securities held by the counterparty, or by its trust department or agent but not in the School District's name..

At June 30, 2002, the carrying value of the School District's total investments was $1,855,032.29 which is materially thesame as fair value. The investments are classified as to risk categories as follows:

Type of Investment
U. S. Government
Local Government. Investment Pools Total Investments

Risk Categories

2

3

Carrying Amount

22 06 $

ooo $===="o"".o="'o $ 22.06 $

Fair . Value
22.06

1,855.010.23 1.855,010.23 $ I 855 032 29 $ I 855.032.29

The carrying amounts shown above includes amounts maintained in an investment pool by the State ofGeorgia, Office ofTreasury and Fiscal Services in which the School District owns no identifiable securities. The investment policy oftlle State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not. registered with the Securities and Exchange Commission as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 of the Investment Company Act ofl 940 and is considered to be a 2a-7 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 of the shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds ofGeorgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

- 15 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS

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 and unemployment compensation.

The School District has obtained commercial insurance for risk of loss associated with torts, assets

and errors or omissions. However, the errors or omissions policy excludes coverage for sexual

harassment and discrimination. The School District has neither significantly reduced coverage for

these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage

in any of the past three years.



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

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2001 2002

$

0.00 $

6 957.00 $

6 957.00 $

0.00

$

0.00 $

3,662.00 $

3,662.00 $

0.00

f

- 16 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $350,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

Superintendent Each Principal Each Assistant Principal Director of Elementary Education Federal Programs Director Assistant Superintendent Business Manager Assistant Principal - Director
of Special Education All Other Employees

$ 45,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00
$ 10,000.00 $ 5,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 2000

4.88%

$ 3.765,000.00

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

- 17 -

DOOLY COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July 1, 2001

.$ 4,300,000.00

Deductions Debt Retired

535,000.00

Balance June 30, 2002

$ 3,765,000.00

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

General Obligation
Bonds

2003 2004 2005 2006

$ 913,732.00 1,013,108.00 1,115,896.00 1,216,608.00

Total Principal and Interest

$ 4,259,344.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of$ 167,510.56 for

health insurance and retirement contributions paid on the School District's behalf by the following

State Agencies.

'

Georgia Department of Education P?id to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $145,094.56

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $22,416.00

- 18 -

1

I l,

DOOLY COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

EXHIBIT "D"

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.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the

performance ofroutine School District operations. The ultimate disposition ofthese proceedings is

not presently determinable, but is not believed to be material to the general-purpose financial

statements.



Note 8: ACCUMULATED EMPLOYEES' LEAVE

All twelve month employees ofthe Dooly County Board ofEducation earn annual leave at a rate of .8333 days per month. Annual leave may be accumulated up to ten days. Unused leave, up to the maximum accumulation, is paid to employees at their current rate_ of pay, upon retirement or termination of employment. See Note 1 - Compensated Absences

Note 9: RETIREMENT PLANS

. TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative arid 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 indepe~dent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 688,469.60 $ 841,806.95 $ 837,529.59

- 19 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

412,124.19 $

37,148.33

23,062.78

13,396.60 6 976.17

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

455,559.74 $===3=7=1=4=8..3.3. ==

$

7,016.07 $

8,179.20

32,156.04

28,969.13

$

39,172.11 $

37,148.33

$

13,396.60

6,976.17

396,014.86 $

$

416,387.63 $

0.00 0.00

$

455,559.74 $===3=7==1=48==33=

See notes to the general-purpose financial statements. - 20-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

449,272.52 $

450,432.68

. $ . 235,605.19

258,667.97

308,221.60

13,396.60 6 976.17

12,387.52 8,974.98

$

235,605.19 $

728,313.26 $==7=8=0=,0=16==78=

$

18,072.68 $

18,072.68 $

126,631.35

25,519.04

40,714.31

40,080.84

94,797.88

155,923.05

153,331.36

97,215.59

97,215.59

55,463.84

$

235,605.19 $

311,925.63 $

375,507.39

$

$ _ _ _----"o'"'".o'""'o_

$

0.00 $

13,396.60 $ 6,976.17

12,387.52 8,974.98

396,014.86

383,146.89

416,387.63 $ _ _4-""0'-"4.._,5_0_9_;;;.;.;.;;.;39c..

$

235,605.19 $

728,313.26 $==7=8=0=,0=16==78=

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current instruction Support Services Pupil Services Improvement of Instructional Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial stl\ltements.
- 22 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

62,478.00 $

473,786.08

802,865.06

49,561.27

$

914,904.33 $

473,786.08

$

351,223.09

44,768.53 7,420.74

17,509.32

39,141.35 13,723.05

$

902,036.36

$

902,036.36 $

473,786.08

$

12,867.97 $

0.00

$

12,867.97 $

0.00

404,509.39

0.00

1,009.08 -1 998.81

$

416,387.63 $====0==00=

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

536,264.08 $

507,907.66

$ 1,313,391.12

2,116,256.18

2,103,190.18

2,264.72

51,825.99

113,911.12

$ 1,315,655.84 $ 2,704,346.25 $ 2,725,008.96

$ 1,104,002.60 $ 1,455,225.69 $ 1,382,221.59

18,521.99 146,115.11
13,154.50 19,722.45
35,139.30 58,380.31

63,290.52 153,535.85
13,154.50 37,231.77
39,141.35 48,862.35 58,380.31 902,036.36

74,682.98 288,238.40
13,964.39 34,976.59
5,550.00 14,658.81 33,310.85 63,027.24 1,022,873.03
935.52

$ 1,395,036.26 $ 2,770,858.70 $ 2,934,439.40

$

-79,380.42 $

-66,512.45 $

-209,430.44

79,380.42

79,380.42

159,184.34

$

0.00 $

12,867.97 $

-50,246.10

0.00

404,509.39

456,075.64

1,009.08 -1,998.81

4,285.11 -5,605.26

$

0.00 "$

416,387.63 $

404,509.39 .

- 23 -

DOOLY 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
Cash Overdraft Contracts Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

BOND PROCEEDS

$

557,830.68 $

27,582.60

140,000.00

3,351,386.49

$

697,830.68 $ 3,378,969.09

$ 3,378,969.09

$ _ ___.;6:.:9:;.:.7.i.:,8;.:.30::..:.:::;68=-

$

697,830.68 $

0.00 3,378,969.09

$

697,830.68 $ 3,378,969.09

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

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 301 2002

JUNE 301 2001

$

5,227.35 $

30,085.05 $

620,725.68 $ 1,767,799.87

112,550.72

444,629.18

4,048,566.39

4,781,678.06

146,174.93

146,174.93

157,197.09

$

117 778.07 $

620,889.16 $ 4,815,467.00 $ 6,706,675.02

$ _ _ _1;..;.1..;...7'-'-7.;..;78;;.;..0:;..;7_ $ ---'1c...;.1..;...7'-'-77.;..;8;;.;..0:;..;7_

$ $ _ _1;;..;1..;..7i;.;..7.;...78;;.;...0.7. _

$

117778.07 $

949,751.97 949,751.97

$ 3,378,969.09 $ 3,385,445.20

$

620,889.16

620,889.16

471,695.44

1,034,921.35

$

0.00

0.00

697,830.68

864,861.06

$

0.00 $

620,889.16 $ 4,697,688.93 $ 5,756,923.05

$

117778.07 $

620,889.16 $ 4,815,467.00 $ 6,706,675.02

- 25-

DOOLY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation 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

$

18 776.74 $

58,763.98

$

18 776.74 $

58,763.98

$

186,791.74 $

$

186,791.74 $

$

-168,015.00 $

425.00 425.00 58,338.98

$

984.62

$

-64,815.09

$

984.62 $

-64,815.09

$

-167,030.38 $

-6,476.11

864,861.06

3,385,445.20

$

697,830.68 $ 3,378,969.09

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

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE. LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

313,402.25

$

313,402.25

$

141,106.38

141,106.38 $

469,858.32

8137.34

85,678.06

347,302.66

$

313,402.25 $.

149,243.72 $

540,186.69 $

817,160.98 .

$

$

291,920.74

1,121,217.95

$

1,413,138.69 $

$

-1,099?36.44 $

50.00 $

50.00 $

291,920.74 1,308,434.69

50.00 $ 1,600,405.43 $

149,193.72 $ -1,060,218.74 $

86,780.00 35,000.00 86,016.00 207,796.00 609,364.98

$

64,815.09

$

64,815.09

$ 4,300,000.00

$

65,799.71

1,029;694.00

-64,815.09

-1,081,680.89

$

984.62 $ 4,248,013.11

$

-1,034,921.35 $

1,034,921.35

149,193.72 $ -1,059,234.12 $

471,695.44

5,756,923.05

4,857,378.09 899,544.96

$

0.00 $

620,889.16 $ 4,697,688.93 $ 5,756,923.05

- 27 -

DOOLY 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

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553 . 10.555

N/A

$ 238,810.99

N/A

492,604.86 $

(2) 853,516.09 (3)

Total Child Nutrition Cluster

$ 731,415.85 $

853,516.09

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) Pass-Through From Office of School Readiness Food and Nutrition Program Child and Adult Care Food Program Pass-Through From Southwest Georgia United Empowerment Zone, Inc. Empowerment Zone Programs Rural Community Development Initiative
Total U. S. Department of Agriculture

10.550
10.558
10.772 10.446

N/A

48,520.27

NIA

22,928.94

N/A

59,487.42

N/A

9,203.72

$ 871,556.20 $

48,520.27
(2)
(4) (4! 902,036.36

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Capacity Building Improvement Grant

84.027 84.173

N/A

$ 170,789.69 $

NIA

2,695.00

170,789.69 2,695.00

Total Special Education Cluster

$ 173,484.69 $

173,484.69

Other Programs

Direct

Impact Aid

84.041

Pass-Through From Georgia Department of Education

Comprehensive School Reform Demonstration Project

Site Evaluation

84.332

N/A

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agencies

84.010

NIA

Title II

Eisenhower Professional Development

84.281

N/A

Title VI

Innovative Education Program Strategies

84.298

NIA

Class Size Reduction

84.340

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

NIA

Pass-Through From Georgia Department of

Human Resources

Safe and Drug-Free Schools and Communities

84.186

N/A

Pass-Through From Marion County Board of Education

d/b/a Two Rivers Migrant Education Agency

Elementary and Secondary Education Act

Title I

Migrant Education

84.011

N/A

2,065.51 226,000.00 658,374.62
23,428.04 18,708.00 93,362.00 54,981.56 16,116.58
22,454.94

(5) 226,000.00 658,374.62
23,428.04 18,708.00 93,362.00 57,246.28 (3) (4)
22,454.94

Total U. S. Department of Education

$ 1,288,975.94 $ 1,273,058.57

- 28 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Pass-Through From Children and Youth Coordinating Council Title V Delinquency Prevention Program
Defense, U.S. Department of Direct Department of the Army . R.O.T.C. Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.548

NIA

36,983.76

(4)

$ 42,597.27 $

121,977.69 (3)

Total Federal Financial Assistance
NIA = Not Available

$ 2,240,113.17 $ =====2,=29=7=,0=7=2=.6=2

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program.
(3) Expenditures for this program include State, 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.

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

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Dooly County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

- 29-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1)

$

4,755.00

$

4,755.00

Education, Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

Kindergarten Program - Early Intervention Program

Primary Grades (1-3) Program

Primary Grades - Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

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 Disabilities

Category I

Category II

Category Ill

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

Twenty Days Additional Instruction



Media Center Program

Staff and Professional Development

Indirect Cost

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Principal Supplements

Vocational Supervisors

Mid-term Adjustment Hold-Harmless

Defe_rred Summer Salaries (Prior Year)

Deferred Summer Salaries (Current Year)

Education Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

Health Insurance

Post Secondary Options

Statewide After School Program

Statewide Reading Program

Lottery Programs

Assistive Technology

Computers in the Classroom

252,216.00 233,513.00 638,918.00 587,964.00 396,425.00 302,596.00 814,583.00 657,799.00 328,066.00
5,526.00 123,965.00 225,059.00
5,699.00 18,796.00 34,501.00 65,961.00 43,630.00 46,058.00 145,561.00 27,148.00 1,173,947.00

373,992.52 100,466.00 48,820.00
6,618.00 13,477.00 54,244.00 -930, 108.47 798,004.00 487,211.00
$
91,183.22

62,478.00

145,094.56 99.00
17,738.40 29,503.38

4,762.00 41,525.00

252,216.00 233,513.00 638,918.00 587,964.00 396,425.00 302,596.00 814,583.00 657,799.00 328,066.00
5,526.00 123,965.00 225,059.00
5,699.00 18,796.00 34,50_1.00 65,961.00 43,630.00 46,058.00 145,561.00 27,148.00 1,173,947.00
373,992.52 100,466.00 48,820.00
6,618.00 13,477.00 54,244.00 -930, 108.47 798,004.00 487,211.00 62,478.00 91,183.22
145,094.56 99.00
17,738.40 29,503.38
4,762.00 41,525.00

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

$ 313,402.25

313,402.25

Office of Planning and Budget Challenge Program

20,000.00

20,000.00

Office of School Readiness Pre-Kindergarten Program

427,499.08

427,499.08

Office of Treasury and Fiscal Services Public School Employees Retirement

22,416.00

22,416.00

30-

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

.SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of After School Programs
Human Resources, Georgia Department of Family Connection

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 41,773.34 45,831.90

$ 41,773.34 45 831.90

$ 7,499,049.85 $ 536,264.08 $ 313,402.25 $ 8,348,716.18

(1) The purpose of these funds is to provide JROTC equipment at Dooly County High School.

See notes to the general-purpose financial statements.

31 -

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

SCHEDULE "3"

PROJECT
The acquisition and construction of a Pre-K through grade 8 elementary and middle school and for the renovation. repair and improvement of existing schools and later facilities and provide for the issuance of the Dooly County School District general obligation sales tax bond in the aggregate principal amount of $4,300,000.00

ESTIMATED ORIGINAL COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 5:625,597.00 $ 5.625,597.00 $ 1.413,613.69 $ 207,796.00 Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's C(!rrent estimate of total cost for each project. Includes all cost from project inception to completion.
(3) The voters of Dooly County approved the imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property taxes and/or other funds over the life of the project.
(4) In addition to the expenditures shown above,. the School District incurred current year interest expenditures in the amount of $279,786.67 to provide advanced funding for the above project as follows:

Prior Years $

0.00

Current Year

279,786.67

Total

$ 279,786:67

_See notes to the general-purpose financial statements.

- 33-

DOOLY 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 lnterventioi:, (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL)
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

$

290,693.00 $ 438,258.45 $

10,968.10 $

449,226.55

269,138.00

297,347.93

1,641.05

298,988.98

736,389.00 1,169,992.49

54,183.58 1,224,176.07

677,662.00

484,422.46

6,333.81

490,756.27

456,903.00

591,195.33

29,010.70

620,206.03

348,759.00
938,854.00 .758,151.00 378,115.00 415,206.00
21,663.00 39,764.00 76,024.00 50,287.00

294,101.74 168.32
1,158,659.95 995,651.34 479,308.78
316,588.86 347,714.95
15,818.97 71,632.51 59,800.94 14,484.87 53,958.36

916.36
44,971.11 78,092.81 27,157.13
7,720.78 5,204.38
474.29 404.36 64,956.20 1,063.61

295,018.10 168.32
1,203,631.06 1,073,744.15
506,465.91
324,309.64 352,919.33
15,818.97 72,106.80 60,205.30 79,441.07 55,021.97

$

5,457,608.00 $ 6,789,106.25 $ 333,098.27 $ 7,122,204.52

167,766.00 31,290.00

227,381.36 5,175.74

40,065.48 26,114.26

267,446.84 31,290.00

TOTAL QBE FORMULA FUNDS

$

5,656,664.00 $ 7,021,663.35 $ 399,278.01 $ . 7,420,941.36

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

See notes to the general-purpose financial statements.

34-

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

SCHEDULE "5"

SITE Dooly County High School . Dooly County Middle School Unadilla Elementary School Vienna Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,329,975.00 $

1,904,878.03

1,074,698.00

1,414,899.26

1,009,719.00

1,307,521.99

1,967,192.00

2,485,940.34

76,024.00

8,964.90

$

5,457,608.00 $ =====7=1,=22='=20=4=.5=2

..

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

SECTION II COMPLIANCE AND INTERNAL CONI'ROL REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
August 27, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dooly 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 ofDooly County Board ofEducation as of and for the year ended June 30, 2002, and have issued our report thereon dated August 27, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained iri Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Dooly County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts 3.l}d grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Dooly County Board of Education's internal control over financial reporting in order to detemiine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Dooly County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable conditi~n is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6461-02-01.
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-6461-02-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Dooly 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.
spectfully submitted,
~-~

RWH:gp 2002YB-41

State Auditor

RussE1.L W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
August 27, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Dooly 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 ofDooly County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Dooly County Boarcl of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Dooly County Board of Education's management. Our responsibility is to express an opinion on Dooly County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. 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 Dooly 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 Dooly County Board of Education's compliance with those requirements.
2002SA-10

Ir
In our opinion, the Dooly County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Dooly 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 Dooly 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 oh internal control over compliance in accordance with 0MB Circ,ular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members pfthe Dooly 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.
RWH:gp 2002SA-10

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

DOOLY 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-6461-00-0 I FS-6461-01-0 I

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-6461-01-01

We concur with this recommendation. The School District has begun to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. However, these procedures will not be placed in operation until fiscal year 2003.

SECTION IV FINDINGS AND QUESTIONED COSTS

, t.'1
DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS .
YEAR ENDED JUNE 30. 2002

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Dooly County Board of Education'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 Dooly. County Board of Educ~tion 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 ofthe Dooly County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Dooly 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 Dooly County Board ofEducation's report on compliance with

requirements applicable to major programs was unqualified. .

6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133

The Dooly County Board ofEducation's audit did not disclose audit findings required to be

reported by section .510(a) of 0MB Circular A-133.



7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

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

9. Low Risk Auditee The Dooly County Board ofEducation did qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.

- 1-

DOOLY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
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-6461-02-01 The Dooly County ~oard of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records s.hould 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 ali additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2 -