=iA 
 
A'ooo 
.,Z.\. 
 
' . !r '1,. -.. 
 
.. 
 
-' ,. 
 
l::~t,; ,; -: 
 
J)73 
:!001\., .J 
 '< 
... 
 
,, ' '}, 
 
,,, .... ,, 
' 
 
., 
 
.. '.,._ .. -:sTATEQ-FGi:o'ftG1A ~-,: . 
 
DEPARTMENT OF 'AUDITS. AND7ACCC)UNTS,' 
 
,'  , 
 
P 
 
' 
 
~ 
 
> 
 
I 
 
. '/, , . 
 
, . 
. ';' 
 
' . 
.... ,., ' 
 
., .....,,. 
 
, 
 
' 
' . 
.' . 
...-. 
. 
,,, 
 
, , . 
,. ' 
.' . 
 
,. 
. ' 
 
.,.' .. 
, . 
 
.' ., 
 
- 1'. 
 
' 
 
,- 
 
,-DOUGLAS,COUNTY'BOARD OF EDUCATION 
 
. oouGLASVllLE. 
 
~-'',. 
 
\ 
, 
 
,'..: 
 
' 
 
- 
 
G' E. ORGiA 
 
~. ~ 
 
'-: ,' REP0R,r'ON AUDIT' '::  ,,. 
 
.. , . ~of.THE FINA~t,AL srATEMENTs . , .. 
 
~'FOR THE I,. 
 
.: 
 
\ J 
 
FISCAL -  J\. 
 
YE' AR-ENDED 
 
 - 
 
,.  ' 
 
JUNE,  
 
30; 
 
200'< 
.- i' 
 
2 
 
i 
 
,J t 
 
,1, 
 
.. _ 
 
' 
 
,, ,i 
 
~ 
 
''- 
 
'>' .) ,', ,.._ -- 
 
, 
 
' ~ 
 
'\ ~ 
 
'(' 
 
, r 
,, . 
 
. ' 
, 
 
-. ' 
 
, 
 
.. 
 
Russe11vJ'. Hinton 
 
.' 
 
Stat~. Auditor 
 
. - 
 
 I 
. 
 
, 
\' 
,, ,,, 
' 
' . 
 
., 
 
,; 
 
,- 
 
, 
 
-, 
 
' 
 
 DOUGLAS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION! 
 
FINANCIAL 
 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
MANAGEMENT'S DISCUSSION AND ANALYSIS 
 
EXHIBITS 
 
BASIC FINANCIAL STATEMENTS 
 
DISTRICT-WIDE FINANCIAL STATEMENTS 
 
A 
 
STATEMENT OF NET ASSETS 
 
3 
 
B 
 
STATEMENT OF ACTNITIES 
 
4 
 
FUND FINANCIAL STATEMENTS 
 
C 
 
BALANCE SHEET 
 
GOVERNMENTAL FUNDS 
 
6 
 
D 
 
RECONCILIATION OF TIIE GOVERNMENTAL FUNDS BALANCE SHEET 
 
TO TIIE STATEMENT OF NET ASSETS 
 
9 
 
E 
 
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES 
 
GOVERNMENTAL FUNDS 
 
10 
 
F 
 
RECONCILIATION OF TIIE GOVERNMENTAL FUNDS STATEMENT 
 
OF REVENUES, EXPENDITURES AND CHANGES IN FUND 
 
BALANCES TO TIIE STATEMENT OF ACTIVITIES 
 
12 
 
G 
 
STATEMENT OF FIDUCIARY NET ASSETS 
 
FIDUCIARY FUNDS 
 
13 
 
H 
 
NOTES TO THE BASIC FINANCIAL STATEMENTS 
 
15 
 
SCHEDULES 
 
REQUIRED SUPPLEMENTARY INFORMATION 
 
SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES 
 
IN FUND BALANCES - BUDGET AND ACTUAL 
 
GENERAL FUND 
 
32 
 
2 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
33 
 
3 SCHEDULE OF STATE REVENUE 
 
35 
 
4 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
 
37 
 
 DOUGLAS COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- 
 
SECTION I 
 
FINANCIAL 
 
SCHEDULES 
 
SUPPLEMENTARY INFORMATION 
 
ALLOTMENTS AND EXPENDITURES 
 
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 
 
5 
 
BY PROGRAM 
 
38 
 
6 
 
BY SITE 
 
39 
 
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 PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
 SECTION I FINANCIAL 
 
 l11,,11,1 W. H",oN 
SIAT[ AUDITOR 
(404)656-21/4 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WJ.Shmgton Street,~ W Suuc 214 AtlJntJ, Gcorg1J 30334-R4t~l 
May 13, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Supenntendent and Members of the Douglas County Board of Educat10n 
INDEPENDENT AUDITOR'S COMBINED REPORT ON BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY JNFORMATlON-SCHEDULEOF EXPENDITURES OF FEDERAL AWARDS 
Ladies and Gentlemen 
We have audited the accompanymg financial statements of the governmental act1v11Ies, each maJor fund, and the aggregate remaming fund information (Exh1b1ts A through H) of the Douglas County Board of Educat10n, as of and for the year ended June 30, 2002, which collectively compnse the Board's basic financial statements as hsted in the table of contents These financial statements are the respons1b1hty of the Douglas County Board of Education's management Ourrespons1b1hty1s to express op1mons on these financial statements based on our audit 
We conducted our audit in accordance with auditing standards generally accepted in the Umted States of Arnenca and the standards apphcable to financial audits contamed in Government Aud1tmg Standards, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit includes examining, on a test basts, evidence supporting the amounts and disclosures in the financial statements An audit also mcludes assessmg the accounting pnnctples used and s1gmficant estimates made by management, as well as evaluating the overall financial statement presentation We beheve that our audit provides a reasonable basis for our opinions 
As discussed m Note 2 to the financial statements, management has not recogm;:ed in the governmental activities and general fund a portion ofsalanes and the corresponding employer's cost of related benefits earned for contractual services completed pnor 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 salanes and related benefits were not recorded as revenue in the year under review Conversely, the s1m1lar salary costs and related revenues for contractual services completed 
2002-34ARL-13 
 
 pnor to June 30, 2001, were improperly recorded m the year ended June 30, 2002. Accountmg pnnc1ples generally accepted m the Umtcd States ofArnenca require that revenues be recorded when available and measurable or earned, as appropnate, and that costs be recorded when hab1hhes are incurred, rather than when funds are received or disbursed The aggregate effects on the financial statements ofth1s vanancc or om1ss1on have not been determmed, but are beheved to be matenal 
In our op1mon, except for the effects of not properly rccogmzmg revenues and costs for certam salanes m the governmental ac1Iv11Ies and general fund as descnbed m the proceedmg paragraph, the financial statements referred to above present fairly, mall matenal respects, the financial pos1t1on of the governmental achv1t1es and general fund of the Douglas County Board of Education, as of June 30, 2002, and the respective changes m financial pos11Ion thereof for the year then ended m conformity with accountmg pnnc1ples generally accepted m the Umted States of Arnenca 
In add11Ion, m our op1mon, the financial statements referred to above present fairly, m all matenal respects, the respective fmancial position of the capital proJects fund, the debt service fund, and the aggregate remammg fund mformatlon of the Douglas County Board of Education, as of June 30, 2002, and the respechve changes m financial pos1t1on thereof for the year then ended m conforrmty with account.mg pnnc1ples generally accepted m the Umted States of Amenca 
As discussed m Note 2 to the basic financial statements, dunng fiscal year 2002, the Board completed a comprehensive inventory of Its capital assets and consohdated its md1v1dual school act1v1ty accounts for mclus1on m the basic financ1aJ statements These changes are m accordance with generaJly accepted accountmg pnnc1ples 
As descnbed m Note 2, the Douglas County Board of Educallon has implemented a new financial reportmg model as required by prov1s10ns of Governmental Accountmg Standards Board Statement No. 34, Basic Fmanc,a/ Statements - and Management's D1scuss1on and Analysis - for State and Local Governments, as of June 30, 2002 
In accordance with Government Auchtmg Standards, we have aJso issued our report dated May 13, 2003, on our cons1derat1on of the Douglas County Board of Education's internal control over financial report.mg and our tests of its comphance with certam prov1s1ons of laws, regulations, contracts and grants. That report 1s an mtegral part of an audit performed m accordance with Government Aud1tmg Standards and should be read m conJuncllon with this report m cons1denng the results of our audit 
Management's D1scuss10n and Analysis and the Schedule ofRevenues, Expenditures and Changes m Fund Balances - Budget and Actual, as presented on pages I through 1x and page 32 respechvely, arc not a reqmrcd part of the basic financial statements but arc supplementary mformatlon required by the GovemmcntaJ Accountmg Standards Board We have applied certain hm1ted procedures, which consisted pnnc1pally of mqumes of management rcgardmg the methods of measurement and presentation of the reqmred supplementary mformallon However, we did not audit the mformallon and express no op1mon on 11 
2002-34ARL-13 
 
 Our audit was conducted for the purpose of forming op1mons on the financial statements that collecl!vcly compnse the Douglas County Board of Educat10n's basic financial statements The accompanying supplementary informatJon which consist of Schedules 2 through 6, which includes the Schedule of Expenditures of Federal Awards as reqmred by U S Office of Management and Budget Circular A-133, Audm ofStates, Local Goiernments, and Non-Profit Orgam=at1011s, are not a reqmred part of the basic financial statements Such informallon has been subjected to the auditing procedures apphed in the audit of the basic financial statements, and in our opin10n, except for the effects of the matters referred to m the third paragraph, such informal!on, 1s fairly stated, in all material respects. in relation to the basic financial statements taken as a whole 
A copy ofth1s report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated secl!on 506-24 
Respectfully submitted, 
r;)P.= QJl. ~. <l::l.. ~ ;us~ll W Hinton State Auditor 
RWH h'P 2002-34ARL-l 3 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
The d1scuss1on and analysis of the Douglas County Board of Educallon's financial performance provides an overall review of the Board's financial acllv1tJ.es for the fiscal year ended June 30, 2002 The mtent of this d1scuss1on and analysis 1s to look at the Board's financial performance as a whole; readers should also review the financial statements and the notes to the basic financial statements to enhance their understand.mg of the Board's financial performance 
Financial Highlights 
Key financial highlights for fiscal year 2002 are as follows 
 The Governmental Accountmg Standards Board (GASB) issued GASB Statement 34 on June 30, I999, requmng governments to comply with a new report.mg model for financial statements Based upon total revenues, the Douglas County Board of Educat10n was a Phase One implementer, and was reqmred to implement GASB Statement 34 begmnmg m fiscal year 2002 
 Due to this bemg the 1mplementallon year for GASB Statement 34, many compansons are not available that will be available for fiscal year 2003 
 The Board's financial status improved substanllally dunng fiscal year 2002 In total, net assets mcreased $25 6 m1lhon, which represents a 44 percent mcrease from fiscal year 200 I . This total mcrease was due to governmental act1v1lles smce the Board has no busmess-type acllv1hes. 
 General revenues accounted for $72 2 m1lhon m revenue or 45 percent of all revenues Program specific revenues m the form of charges for services and sales, grants and contnbullons accounted for $88 5 m1lhon or 55 percent of total revenues. Total revenues were $160 7 m1lhon 
 The Board had $135 0 milhon m expenses related to governmental achv1hes, only $88.5 m1lhon of these expenses were offset by program specific charges for services, grants or contnbullons General revenues, pnmanly taxes, of $72 2 m1lhon were adequate to provide for these programs 
 Among maJor funds, the general fund had $135.0 m1lhon m revenues and $127 2 m1lhon m expenditures The general fund's balance mcrcased to$ 14 5 m1lhon from $6 7 m1lhon. 
Using the Basic Financial Statements 
This annual report consists of a senes of financial statements and notes to those statements These statements are organized so the reader can understand the Douglas County Board of Education as a financial whole, or as an entire operatmg enllty 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
The Statement of Net Assets and Statement of Act1V1t1es provide information about the actIVItles of the whole Board, presenting both an aggregate view of the Board's finances and a longer-term view of those finances The fund financial statements proVIde the next level of detail For governmental funds, these statements tell how services were financed in the short-term as well as what remains for future spendmg The fund financial statements also look at the Board's most s1gn1ficant funds with all other non-maJor funds presented in total m one column In the case of the Douglas County Board of Educallon, the general fund 1s by far the most s1gn1ficant fund 
Reporting the Board as a Whole 
Statement ofNet Assets and Statement ofActivities 
While these documents contam the large number of funds used by the Board to provide programs and act1v1t1es, the view of the Board as a whole looks at all financial transactions and asks the quest10n, "How did we do financially dunng fiscal year 2002?" The Statement ofNet Assets and the Statement of Act1V1t1es answer this question These statements mclude all assets and all liab1lmes using the accrual basis of accounting s1m1lar to the accounting used by most pnvatesector companies This basis of accounting takes into account all of the current year's revenues and expenses regardless of when cash 1s received or paid 
These two statements report the Board's net assets and changes m those assets ThIS change m net assets 1s important because 11 tells the reader whether, for the Board as a whole, the financial position of the Board has improved or d1m1mshed The causes of tlus change may be the result of many factors, some financial, some not Non-financial factors mclude the Board's property tax base, fac1hty conditions, reqmred educational programs and other factors 
In the Statement of Net Assets and the Statement of Achv1!Jes, the Board has one d1stmct type of achv1ty 
 Governmental Act1v111es - All of the Board's programs and services are reported here mcludmg mstruct10n, support services, operation and maintenance of plant, pupil transportation, food service, after school program, school achv1ty accounts and vanous others 
Reporting the Board's Most Significant Funds 
Fund Financial Statements 
Fund financial reports provide detailed mfonnat10n about the Board's maJor funds. The Board uses many funds to account for a mullltude of financ1al transactions However, these fund financial statements focus on the Board's most s1gmficant funds The Board's maJor governmental funds are the general fund, the Spec1aJ Purpose Local Opl!on Sales Tax capital projects fund, and the debt serVIce fund 
11 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
Governmental Funds Most of the Board's achv1t1es are reported m governmental funds, which focus on how money flows mto and out of those funds and the balances left at year-end avatlable for spending m future penods These funds are reported usmg an accounting method called modified accrual accounting, which measures cash and all other financial assets that can readily be converted to cash. The governmental fund statements provide a detatled short-term view of the Board's general government operations and the basic services It proVJdcs Governmental fund mformahon helps you determme whether there are more or fewer financial resources that can be spent m the near future to finance educat10nal programs The relationship (or differences) between governmental activities (reported m the Statement of Net Assets and the Statement of Act1v1hes) and governmental funds 1s reconciled m the financial statements Fiduciary Funds The d1stnct 1s the trustee, or fiduciary, for assets that belong to others, such as school clubs and orgamzattons w1thm the school acUVJty accounts The d1stnct 1s responsible for ensunng that the assets reported m these funds are used only for thetr mtended purposes and by those to whom the assets belong The d1stnct excludes these achv1hes from the d1stnct-w1de financial statements because 11 carmot use these assets to finance its operations 
The Board as a Whole The perspective of the Statement of Net Assets 1s of the Board as a whole Table 1 provides a summary of the Board's net assets for fiscal year 2002 Smee tlus 1s the first year the Board has been required to prepare financial statements followmg GASB Statement 34, net asset compansons to fiscal year 2001 are not available. 
Ill 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYS[S FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
 
Table 1 Net Assets (in Thousands) 
 
Governmental Achv111es Fiscal Year 2002 
 
Assets Current and Other Assets Capital Assets, Net 
 
$ 54,548 132,226 
 
Total Assets 
 
$186,774 
 
Liabilities Current and Other L1ab1ht1es Long-Term L1ab1hties 
 
$ 22,248 81,220 
 
Total Liabilities 
 
$103,468 
 
Net Assets Invested m Capital Assets, Net of Related Debt Restncted Unrestncted 
 
$ 50,806 19,611 12,889 
 
Total Net Assets Total net assets mcreased $25 6 m1lhon 
 
$ 83.306 
 
Table 2 shows the changes m net assets for fiscal year 2002 Smee th.ts 1s the first year the Board has been reqmred to prepare financial statements followmg GASB 34, revenue and expense compansons to fiscal year 2001 are not available 
 
IV 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
 
Table 2 Change in Net Assets 
(In Thousands) 
Revenues Program Revenues Charges for Services and Sales Operatmg Grants and Contnbut1ons Capital Grants and Contnbul!ons 
Total Program Revenues 
General Revenues Taxes Property Taxes For Mamtenance and Operations For Debt Servtce Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Servtce For Capital ProJects Intangible Recordmg Tax Grants and Contnbulions not Restricted to Specific Programs Investment Eammgs Miscellaneous 
Total General Revenues 
Total Revenues 
Program Expenses 
Instruction Support Servtces 
Pupil Servtces Improvement of lnstruct1onal Servtces Educational Media Servtces General Adm1mstratlon School Admm1stratlon Busmes~ Admm1strat1on Mamtenance and Operation of Plant Student Transportation Servtces Central Support Services Other Support Servtces Operations ofNon-Instruct1onal Servtces Enterpnse Operations Food Services Interest on Short-Term and Long-Term Debt 
Total Expenses 
Increase m Net Assets 
V 
 
Governmental Aclivtlies Fiscal Year 2002 
$ 4,450 77,915 6,095 
$ 88,460 
$ 40,227 2,141 12 
10,156 7,258 1,814 
6,231 1, I 11 3.231 
$ 72,181 
$160,641 
$ 86,129 
3,078 3,158 3,246 1,245 8,164 1,299 8,717 4,775 2,772 
538 
759 7,604 3.510 
$134,994 
$ 25 47 
 
 DOUGLAS COUl'iTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
 
Golernmental Activities 
 
Instruction compnses 63 8 percent of governmental program expenses Interest expense compnses 2 6 percent of governmental program expenses Interest expense was attnbutablc to the outstanding bonds for capital proJects 
 
The Statement of Acllv1t1e5 shows the cost of program services and the charges for services and grants offsetting those services Table 3 shows, for governmental ac11v11Ies, the total cost of services and the net cost of services That 1s, 1t 1den1Ifies the cost of these services supported by tax revenue and unrestnclcd State entitlements Smee this 1s the first year the Board has been required to prepare financial statements following GASB Statement 34, cost of service compansons to fiscal year 200 I are not available 
 
Table 3 Governmental Activities 
(in Thousands) 
 
Total Cost of Services Fiscal Year 2002 
 
Net Cost of Services Fiscal Year 2002 
 
lnstrucl!on Support Services 
Pupil Services Improvement of Instructional Services Educational Media Services General Admm1strat1on School Admm1strat1on Business Adm1mstrat1on Maintenance and Opcrat10n of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-Instructional Services Enterprise Operations Food Services Interest on Short-Tenn and Long-Tenn Debt 
Total Expenses 
 
$ 86,129 
3,078 3,158 3,246 1,245 8,164 1,299 8,717 4,775 2,772 
538 
759 7,604 3,510 
SJ J4,22:I 
 
S 22,614 
2,186 2,419 1,386 -865 4,995 1,299 3,978 1,812 2,772 
467 
-26 -I 3 3 510 
$ :16,~~4 
 
Although program revenues make up a maJonty of the revenues, the Board 1s still dependent upon ta:x revenues for governmental ac\Iv1t1es Over 26 3 percent of mstruc\Ion acl!v1t1es are supported through taxes and other general revenues, for all governmental ac1Iv1t1cs general revenue support 1s 34 5 percent 
 
VI 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
The Board's Funds 
The Board's governmental funds are accounted for usmg the modified accrual basis of accountmg Total governmental funds had revenues and other financmg sources of $170 3 m1lhon and expenditures and other financmg uses of $174 0 m1lhon. There was a decrease of S12 3 m1lhon m the capital proJccts fund due to capital funds on hand bemg expended. The general fund had an mcrease of $7 8 m1lhon and the debt service fund had an mcrease of $ 8 m1lhon The positive change m the fund balance of the general fund for the year md1cates that the Board was able to meet current costs from current revenues The Board has one Non-MaJor Governmental Fund which 1s used to account for the Perpetual Trust of Wmston Elementary The corpus of this trust 1s mvested m stocks, which decreased m value dunng fiscal year 2002 The non-maJor governmental fund md1cates a negative change of $3,023 related to this decrease m market value 
General Fund Budgeting Highlights 
The Board's budget 1s prepared accordmg to Georgia law The most s1gmficant budgeted fund 1s the General Fund. 
Dunng the course of fiscal year 2002, the Board amended its general fund budget as needed The Board uses site-based budgetmg The budgetmg systems are designed to lightly control total site budgets but provide flex1b1hty for site management 
For the General Fund, the final budgeted revenues of $127 2 m1lhon exceeded the ongmal budgeted amount of $124 7 m1lhon by $2 5 m1lhon ThIS difference was due to an mcrease m state revenues budgeted The actual revenues of $135 0 milhon exceeded the final budgeted amount by $7 8 m1lhon Conservative budgetmg for property taxes, sales taxes and state funds more than offset any shortfalls m other revenue categones 
The final budgeted expenditures of $123 6 milhon exceeded the ongmal budgeted amount of $122 8 m1lhon by $ 8 m1lhon This difference was due to an mcrease m mstructlon of $2 4 m1lhon, a decrease m pupil services of $1.5 milhon, and a decrease m improvement of mstrucuonal services of $ I m1lhon The decreases to pupil services and improvement of mstruchonal services were due to a reclassification of expenditures from those catcgones to the mstructlon category The actual expenditures of $127 2 exceeded the final budgeted amount by $3 6 m1lhon This was pnmanly due to the mclus10n m our financial statements of the actual amounts of school activity accounts winch were not mcluded m our budgeted amounts 
General Fund revenues exceeded expenditures by $7 8 m1lhon The Board has made a concerted effort to raise fund balance m antlc1pat10n of future needs, and this result 1s evidence of their work 
Vil 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 
 
Capital Assets and Debt Administration 
 
Capital Assets 
 
At the end of fiscal year 2002, the Board had $132 2 milhon mvested m capital assets, all m governmental acllv1nes Table 4 md1cates balances at June 30, 2002 Smee this 1s the first year the Board has been reqmred to prepare financial statements followmg GASB Statement 34, capital asset compansons to fiscal year 2001 are not available 
 
Table 4 Capital Assets (Net of Depreciation, in Thousands) 
 
Governmental Acllv1hes Fiscal Year 2002 
 
Land Construction m Progress Bmldmgs and Improvements Eqmpment Land Improvements 
 
$ 14,418 32,877 77,408 7,228 295 
 
Total 
 
$132,226 
 
The pnmary mcreases occurred m Bmldmgs and Improvements and m Construction m Progress Due to the ongomg growth m the county, the Board has numerous construcllon proJects mcludmg new bmldmgs, additions and renovations. 
 
Debt 
 
At June 30, 2002, the Board had $93.7 mllhon m bonds outstandmg with $12 5 m1lhon due w,thm one year Smee this 1s the first year the Board has been required to prepare financial statements usmg GASB Statement 34, debt compansons to fiscal year 2001 are not available At June 30, 2002, the Board's overall legal bondmg authonty was $222,627,779 The Board mamtains an Aa2 bond ratmg with Moody's and an AA bond ratmg with Standard & Poor's 
 
Current Issues 
 
Douglas County. and the Douglas County School System, has suffered economic setbacks m hne with a state and national economy that 1s declmmg m growth Sales tax revenue growth 1s lower than anticipated, and a shortfall is expected m total collect10ns under the current Special Purpose Local Opllon Sales Tax m11lative Capital proJects are bemg evaluated and re-pnontlzed m hght of the current revenue shortfall However, m spite of the economy, the county's economic 
 
VIII 
 
 DOUGLAS COUNTY BOARD OF EDUCATION MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE FISCAL YEAR ENDED JUNE 30, 2002 outlook continues to be healthy. The ta'l digest increased 80 percent between 1997 and 2002, including growth, reassessment and reappraisals Population growth 1s continuing at an extremely high rate The number of bmlding permits issued increased 79 percent from 2001 to 2002 The population growth 1s expected to be reflected in school system enrollment growth for several years to come, and 1s a s1gm ficant factor in the Board's annual budget and planrung processes Contacting the Board's Financial Management This financial report 1s designed to provide our c1ttzens, taxpayers, investors, and creditors with a general overview of the Board's finances and to show the Board's accountab1hty for the money 11 receives If you have qucst10ns about this report or need add1t10nal information, contact Kay R. Turner, CPA, Chief Financial Officer at the Douglas County Board ofEducalton, 9030 Highway 5, Douglasv11le, Georgia 30134 You may also email your questions to kay_tumer@douglas kl2 gaus. 
IX 
 
 DOUGLAS COUN1Y BOARD OF EDUCATION 
 
 DOUGLAS COUNTY BOARD OF EDUCATION STATEMENT OF NET ASSETS 
JUNE 30. 2002 
ASSETS 
Cash and Cash Equivalents Investments Accounts Receivable, Net 
Taxes State Govemmen1 Federal Government Other lnventones Capital Assets land Construction ,n Progress land Improvements Bwld1ngs and Bwldlng Improvements Equipment Less Accumulated Depr0C1abon 
Total Assets 
LIABILITIES 
Accounts Payable Salaries Payable Expired Gram Balances Payable Contracts Payable Retalnages Payable Long-Term Llab1hhes 
Due Within One Year Due m More Than One Year 
Total L1ab1llbes 
NET ASSETS 
Invested m Capital Assets, Net of Related Debt Restncted for 
Bus Replacement Cont1nuahon of Federal Programs Debt Service Capital Projects Permanent Funds Unrestricted 
Total Net Assets 
Total L1ab1hhes and Net Assets 
The notes to the basic financial statements are an integral part of this statement -3- 
 
EXHIBIT"A" 
 
GOVERNMENTAL ACTIVITIES 
 
$ 
 
6,123,591 59 
 
36,418,032 49 
 
4,224,734 07 5,242,428 79 1,329,849 79 
216,333 33 993,172 04 
 
14,417.858 00 32,876,542 00 
302,779 00 101,601,170 00 
13,323,976 00 -30,296.687 00 
 
$ 18617731780 10 
 
$ 
 
5,607,353 46 
 
982,987 41 
 
3,832 82 
 
2,237,202 08 
 
961.405 30 
 
12,455,000 00 81,220,000 00 
 
$ 103 467 781 07 
 
$ 50,805,959 37 
644,507 85 718,318 20 2,021,988 30 16,179,970 72 
47,00000 12,888.254 59 
$ 83,305,999 03 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
STATEMENT OF ACTIVITIES 
FOR THE YEAR ENDED JUNE 30, 2002 
 
EXPENSES 
 
CHARGES FOR SERVICES 
 
GOVERNMENTAL ACTIVITIES 
lnstruclJon Support Services 
Pupil Services Improvement of lnstrucllonal Services Educational Media Services General Adm1mstraUon School AdmlmstraUon Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Operations of Non-lnstruct1onal Services Enterprise Operations Food Services Interest on Short-Term and Long-Term Debt 
Total Governmental Activities 
 
s 86,129,160 02 $ 
3,077,612 OB 3,158,596 96 3,246,578 45 1,245,401 71 8,163,581 05 1,298,511 54 8,716,764 53 4,774,565 70 2,771,820 96 
537,88861 
759,437 64 7,604,294 58 3,510,037 32 
s_.,.,1.3,4.1,.9,9_41251 15 $ 
 
General Revenues Taxes Property Taxes For Maintenance and Operabons For Deb1 Services Railroad Cars Sales Taxes Special Purpose Local Option Sales Tax For Debt Services For Cap,tal PrOJecls Intangible Recording Tax Grants and Contnbu\1ons not Restncled to Specific Programs Investment Earnings Miscellaneous 
 
Total General Revenues 
 
226,523 61 
785,406 22 3,437,737 86 4449,667 71 
 
Change m Net Assets Net Assets - Beginning of Year 
 
Net Assets - End of Year 
 
The notes to the basic financial statements are an integral part of this statement -4 - 
 
 EXHIBIT"B" 
 
PROGRAM REVENUES 
 
OPERATING 
 
CAPITAL 
 
GRANTS AND 
 
GRANTS AND 
 
CONTRIBlJTIONS CONTRIBlJTIONS 
 
NET (EXPENSES) REVENUES 
AND CHANGES IN NET ASSETS 
 
$ 59,403,317 34 $ 
882,061 10 407,756 68 1,671,088 33 2,005,579 66 3,168,595 05 
4,655,023 00 1,884,392 55 
70,753 36 
3,766,435 18 
$ 77,915,002 25 $ 
 
3,885,611 29 $ 8,981 08 
331,601 91 189,223 82 104,536 85 
83,640 10 1,078,418 38 
413,537 16 
61095155059 $ 
 
-22,613,707 78 
-2,186,569 90 -2,419,238 37 -1,386,266 30 
864,714 80 -4,994,986 00 -1,298,51154 -3,978,101 43 -1,811,754 77 -2,771,820 96 
-467,135 25 
25,968 58 13,415 64 -3,510,037 32 
-46,534,030 60 
 
$ 
 
40,226,527 69 
 
2,140,807 70 
 
11,51914 
 
10,156,187 54 7,257,963 37 1,814,178 75 6,231,279 91 1,111,057 37 3,231,032 34 
 
$ 
 
72,180,553 81 
 
$ 
 
25,646,523 21 
 
57,659,475 82 
 
s ___8_,31.,_30_5_1.999=_0_3 
 
-5- 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
BALANCE SHEET 
GOVERNMENTAL FUNDS 
JUNE 30 2002 
 
ASSETS 
Cash and Cash Equivalents Investments Accounts Rece,vable, Net 
Taxes State Government Federal Government Other lnventones 
 
GENERAL FUND 
 
DISTRICTWIDE 
CAPITAL PROJECT 
FUNDS 
 
s 2,867,494 39 $ 1,311,342 20 
12,275,068 72 24,075,131 86 
 
1,266,645 95 390,209 59 
1,329,849 79 216,333 33 993,172 04 
 
3,008,509 07 4,852,219 20 
 
Total Assets 
 
$ 1913381773 81 $ 331247,202 33 
 
UABILIJIES AND FUND BALANCES 
LIABIUTIES 
Accounts Payable Salanes Payable Expired Gram Balances Payable Con1racts Payable Reta1nages Payable 
Total Liabilities 
FUND BALANCES 
Reserved for 
Bus Replacement ConUnuaUon of Federal Programs Debt Service Inventories Capital Pl'Ojects Questioned Costs Pennanent Funds Unreserved Designated for Self-Insurance Designated for Equlpmen1 Purchase Undeslgnated Reported m 
General Fund Permanent Funds 
Total Fund Balances 
 
$ 3,831,796 30 $ 1,775,557 16 982,987 41 3,832 82 2,237,202 08 961,405 30 
$ 4,818,616 53 $ 4 974 164 54 
$ 644,507 85 337,216 22 993,172 04 $ 28,273,037 79 22,863 09 
185,318 28 59,464 24 12,277,615 56 
$ 14,520,157 28 $ 28,273,037 79 
 
Total Uabllrties and Fund Balances 
 
$ 1913381773 81 $ 33,247,202 33 
 
The notes to the basic financial statements are an integral part of this statement -6 - 
 
 EXHIBIT "C" 
 
DEBT SERVICE 
FUNDS 
 
NONMAJOR GOVERNMENTAL 
FUNDS 
 
TOTAL 
 
$ 1,943,034 29 $ 15,445 53 
67,164 73 
 
1,720 71 $ 6,123.591 59 52,386 38 36,418,032 49 
4,342,319 75 5,242.428 79 1,329,849 79 
216,333 33 993,172 04 
 
54 107 09 $ 54.665.727 78 
 
$ 5,607,353 46 982.987 41 3,832 82 
2,237.202 08 961,405 30 
$ 9,792,781 07 
 
$ 2,025,644 55 $ 
$ 2,025,644 55 $ $ 2.025.644 55 $ 
 
$ 
47,000 00 
 
644,507 85 337,216 22 2,025,644 55 993,172 04 28,273.037 79 
22,863 09 47,000 00 
 
185,318 28 59,464 24 
 
7 107 09 
 
12,2TT.615 56 7 107 09 
 
54107 09 $ 44,872,946 71 
 
54107 09 $ 54.665.727 78 
 
-7 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS 
JUNE 30 2002 
 
EXHIBIT" " 
 
Total Fund Balances - Governmental Funds (Exhibit c) 
Amounts reported for Governmental Ac!Jvlhes ,n the Statement of Net Assets are different because 
Capital Assets used In Governmental Activ1bes are not financial resources and therefore ere not reported in the funds These assets consist of 
Land Construction In Progress Land Improvements Bu11d1ngs Equipment Accumulated Deprooallon 
Total Gaprtal Assets 
Some of the School District's property tax revenues will be collected after year end but are not ava~able soon enough to pay for the rurrent period's expenditures 
Long-Term Llablllbes, Including Bonds Payable, are not due and payable ,n the current penod and therefore are not reported es hab!lbes In the funds Long-Tern, 1Jab1llbes at year-end consist ot Bonds Payable 
 
$ 44,872,946 71 
 
$ 14.417,858 00 32,878,542 00 302,779 00 
101,601,170 00 13,323,976 00 -30.296.687 00 
 
132,225,638 00 
 
-117,585 68 
 
-93,675.000 00 
 
Net Assets of Governmental Activities (Exhlbrt "A") 
 
$ 83,305,999 03 
 
The notes to the basic financial statements are an integral part of ttus statement 
-9- 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS 
YEAR ENDED JUNE 30 2002 
 
REVENUES 
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Current lnstructlon Support Services Pupil Services lmprovemen1 of lnstrucllonal Services Educational Media Services General Administration School Adm1mstrabon Business Adm1rnstrat10n Maintenance and Operallon of Plant Student Transportation Services Central Support Services Other Support Services Enterpnse Operabons Food Services Operabon 
Capital Outlay Debt Services 
Pnncipal Interest 
Total Expendrtures 
Excess of Revenues over (under) Expenditures 
OTHER FINANCING SOURCES 
Accrued ln1erest on Bonds Sold Proceeds of Long-Term Caprtal-Related Debi Prermums on Bonds Sold 
Total Other Financing Sources 
Net Changs m Fund Balances 
Fund Balances - Beginning 
 
GENERAL FUND 
 
DISTRICTWIDE 
CAPITAL PROJECT 
FUNDS 
 
s 39,894,041 18 s 1,723,987 85 
76,654,123 21 7,939,524 82 4,449,667 71 
311,189 53 4,026,987 86 
 
7,257,963 37 4,852,219 20 
787,956 53 
 
s $ 134,999,522 16 
 
12,898,13910 
 
s 82,972,785 70 
 
3,077,612 08 3,158,596 96 3,070,259 78 1,147,994 31 8,163,581 05 
s 1,166,033 24 
8,886,399 73 4,225,611 93 2,771,820 96 
537,888 61 759,437 64 7,267,185 83 
 
162,254 30 1,292,605 00 
33,772,191 71 
 
s $ 127,205,207 82 
 
35,227,051 01 
 
$ 7 794 314 34 $ -22,328,911 91 
 
$ 9,445,000 00 551 786 45 
s 9,996,786 45 s 7,794,314 34 $ -12,332,12546 
 
6,725,842 94 
 
40,605,163 25 
 
Fund Balances - Ending 
 
s $ 1415201157 28 
 
281273:37 79 
 
The notes to the basic flnarte1al statements are an integral part of thlS statement 
- 10 - 
 
 EXHIBIT "E" 
 
DEBT SERVICE 
FUNDS 
 
NONMAJOR GOVERNMENTAL 
FUNDS 
 
TOTAL 
 
$ 2,123,683 55 10,246,378 44 
14,933 93 $ 10 00 
$ 12,385,005 92 $ 
 
$ -3,022 62 
 
42,017,724 73 19,228,329 66 81,506,342 41 7,939,524 82 
4,449,667 71 1,111,05737 4,026,997 86 
 
-3 022 62 S 160,279,644 56 
 
$ 
 
$ 
 
5,357 00 
 
7,470,000 00 4,067,830 02 
s 11,543,187 02 $ 
$ 841 818 90 $ 
 
$ 
 
6,006 25 
 
$ 
 
6 00625 
 
$ 847,82515 $ 
 
1 177 819 40 
 
$ 2,025,644 55 $ 
 
000 $ 82,972,785 70 
3,077,612 08 3, 158,596 96 3,070,259 78 1,147,994 31 8,163,581 05 1,333,644 54 8,886,399 73 5,518,216 93 2,771,820 96 
537,888 61 759,437 64 7,267,18583 33,772,191 71 
7,470,000 00 4,067,830 02 
000 $ 173,975,445 85 
s -3 022 62 -13,695,801 29 
 
$ 
 
6,006 25 
 
9,445,000 00 
 
55178645 
 
$ 10,002,792 70 
 
-3,022 62 $ -3,693,008 59 
 
5712971 
 
48,565,955 30 
 
54 107 09 $ 44 872 946 71 - 11 - 
 
 ---- - --- - - - - - - - 
DOUGLAS COUNTY BOARD OF EDUCATION RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF 
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES 
JUNE 30 2002 
 
EXHIBIT"F" 
 
Total Net Change on Fund Balances - Governmental Funds (Exhibit "E") 
 
$ -3,693,008 59 
 
Amounts reported for Governmental Activ1bes on the Statement of Act1vrt1es are dlfferen1 because 
 
Capital Outlays are reported as expenditures on Governmental Funds However, In the Statement of Activrt10S, the cost of Capital Assets 1s allocated over their esbmated useful lives as deprec,abon expense In the current period, these amounts are 
 
Capital Outlay Depreciation Expense 
Excess of Caprtal Outlay over Depreciation Expense 
 
$ 34,063,483 00 -3,110.081 00 
 
30,953,402 00 
 
Because some property taxes will not be collected for several months after the School District's fiscal year ends, they are not considered "available" revenues 
 
361,129 80 
 
Bond proceeds provide current financial resources to Governmental Funds, however, ,ssu,ng debt increases Long-Temn Uab1lrt10s 1n the Statement of Net Assets In the current penod, proceeds were received from 
 
General Obhgabon Bonds Issued 
 
-9,445,000 00 
 
Repayment of long-temn debt 1s reported as an expendrture 1n Governmental Funds, but the repayment reduces Long-Temn Uablllt1es In the Statement of Net Assets In the current year, these amounts consist of 
 
Bond Pnnc,pal Rebrements 
 
7,470,000 00 
 
Change on Net Assets of Governmental ActlVlbes (Exh1brt "B") 
 
$ 251646,523 21 
 
The notes to the basrc financial statements are an integral part of this statement 
- 12 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
STATEMENT OF FIDUCIARY NET ASSETS 
FIDUCIARY FUNDS JUNE 30. 2002 
ASSETS Cash and Cash Equivalents 
LIABILITIES Funds Held for Others 
 
EXHIBIT"G" 
AGENCY FUNDS 
$ 329,217 97 
$ 329,217 97 
 
The notes to the basic financ:al statements are an integral part of th:s statement - 13 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note I DESCRIPTION OF SCHOOL DISTRICT AND REPORTING ENTITY 
REPORTING ENTITY 
The Douglas County Board of Education (School D1stnct) was established under the laws of the State of Georgia and operates under the gmdance of a school board elected by the voters and a Supenntendent appomted by the Board The Board 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity Accordmgly, the School D1stnct 1s a pnmary government and consists of all the organizations that compose its legal en!ity 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
BASIS OF PRESENTATION 
The School D1stnct"s basic financial statements arc collectlvely compnsed of the D1stnct-w1de financial statements, fund financial statements and notes to the basic financial statements of the Douglas County Board of Education 
District-wide Statements: The Statement of Net Assets and the Statement ofActivities display mformatlon about the financial activities of the overall School D1stnct, except for fiduciary act1V1tles. El1.1runat10ns have been made to mm1m1ze the double countmg of mtemal achv1t1es Governmental activities generally are financed through taxes, mtergovemmental revenues, and other nonexchange transactions 
The Statement of Activities presents a companson between d1rect expenses and program revenues for each function of the School D1stnct"s governmental activities 
 D1rect expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function Ind1rect expenses (expenses of the School D1stnct related to the admm1stratlon and support ofthe School D1stnct"s programs, such as office and mamtenance personnel and accountmg) are not allocated to programs 
 Program revenues mclude (a) charges paid by the rec1p1ents of goods or services offered by the programs and (b) grants and contnbut1ons that are restncted to meetmg the operational or capital reqmrements of a particular program Revenues that are not classified as program revenues, mcludmg all taxes, are presented as general revenues 
Fund Financial Statements: The fund financial statements provide mformatlon about the School D1stnct"s funds, mcludmg fiduciary funds Separate statements for each category (governmental and fiduciary) are presented The emphasis of fund financial statements 1s on maJor governmental funds, each displayed m a separate colunm All remammg governmental funds are aggregated and reported as nonrnaJor funds 
 
- 15 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHIBIT "H" 
 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
The School D1stnct reports the followmg maJor governmental funds. 
 General Fund 1s the School D1stnct"s pnmary operatmg fund It accounts for all financial resources of the School D1stnct, except those resources reqmred to be accounted form another fund 
 D1stnct-w1de Capital ProJects Fund accounts for financial resources mcludmg Bond proceeds, grants from Georgia State Fmancmg and Investment Comm1ss1on and Special Purpose Local Oplion Sales Tax proceeds to be used for the acqu1s11Ion, construclion or renoval!on ofmaJor capital fac1ht1es. 
 Debt Service Fund accounts for taxes (property and sales) legally restncted for the payment of general long-term pnnc1pal, mterest and paying agent"s fees 
The School D1stnct reports the followmg fiduciary fund type 
 Agency funds account for assets held by the School D1stnct as an agent for vanous funds, governments or mdiv1duals 
BASIS OF ACCOUNTING 
The basis of accountmg determmes when transacllons are reported on the financial statements The D1stnct-w1de governmental act1v1t1es financial statements are reported usmg the economic resources measurement focus and the accrual basis of accountmg Revenues are recorded when earned and expenses are recorded at the time hab1hlies are mcurred, regardless of when the related cash flows take place Nonexchange transaclions, m wluch the School D1stnct gives (or receives) value without dJTectly rece1vmg (or givmg) equal value m exchange, mclude property taxes, sales taxes, grants and donalions. On an accrual basis, revenue from property taxes 1s recogmzed m the fiscal year for which the taxes are leVIed Revenue from sales taxes 1s recogmzed m the fiscal year m which the underlying transacl!on (sale) takes place Revenue from grants and donallons 1s recogmzed m the fiscal year m which all ehgib1hty reqmrements have been satisfied 
The School D1stnct uses funds to report on its financial pos11Ion and the results of its operations Fund accountmg 1s designed to demonstrate legal comphance and to aid financial management by segregatmg transactions related to certam governmental functions or act1v11Ies A fund 1s a separate accountmg entity with a self-balancmg set of accounts 
Governmental funds are reported usmg the current financial resources measurement focus and the modified accrual basis of accountmg Under this method, revenues are recognized when measurable and available The School D1stnct considers all revenues reported m the governmental funds to be available 1f they are collected w1thm sixty days after year-end Property taxes, sales taxes and mterest are considered to be susceptible to accrual Expenditures are recorded when the related fund 
- 16 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
hab1hty 1s mcurred, except for pnnc1pal and mterest on general long-term debt and claims and Judgments which are recob'll1zed as expenditures to the extent they have matured Capital asset acqms1t10ns are reported as expenditures m governmental funds. 
The School D1stnct funds certain programs by a combmallon ofspecific cost-reimbursement grants, categoncal grants, and general revenues Thus, when program costs are mcurred, there are both restricted and unrestncted net assets available to finance the program It 1s the School D1stnct's pohcy to first apply grant resources to such programs, followed by cost-reimbursement grants, then general revenues. 
A departure from the above defimllons 1s the accountmg treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Educat10n for the State's share of these contracts Dunng fiscal year 2002, a substanllal number of personnel ofthe School D1stnct were employed for a one hundred and runety day penod begmnmg m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensallon be paid m twelve equal monthly payments beginnmg m September 2001 and endmg m August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Educallon to the School D1stnct m the same twelve months As of June 30, 2002, compensallon 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 costs by the School D1stnct subsequent to June 30, 2002 Also, the State's portion of the compensallon paid m July and August 2002 was received and recorded as revenue m the fiscaJ year subsequent to June 30, 2002 Conversely, the similar costs and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002 Generally accepted accountmg pnnc1ples reqwre that revenues be recorded when earned or available and measurable as appropnate and that expenditures or expenses as appropnate be recorded when mcurred, rather than when funds are received or disbursed 
RESTATEMENT OF PRIOR YEAR FUND BALANCE - GENERAL FUND 
In pnor years, the financial ac1Iv11Ies of the School D1stnct's School Food Services Fund, Lottery Programs and Federal Programs were reported as Special Revenue Funds. These funds had a combmed fund balance of$758,967 57 at July 1, 2001 For fiscal year 2002, these funds have been reported as part of the General Fund In add11Ion, governmental fund ac1Iv1ty from the vanous school acllv1ty accounts, which were not reported m the pnor year's financial statements, have been reported w1thm the General Fund for fiscal year ended June 30, 2002 The governmental fund acllv1ty of the vanous school act1V1ty accounts had a fund balance of$823,335 60 at July 1, 2001 This change 1s m accordance with generally accepted accountmg pnnc1ples 
 
- 17 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHIBIT"H" 
 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
General Fund Balance July I, 2001 
 
$ 5,143,539 77 
 
Add Funds Consolidated with General Fund School Food Services Fund School Activity Account - Governmental Activity 
 
758,967.57 823,335 60 
 
General Fund Balance July I, 2001 (Restated) 
 
$ 6,725,842,94 
 
CHANGES IN ACCOUNTING PRINCIPLES 
 
The Douglas County Board of Education has implemented a new financial reporting model as required by prov1s1ons of Governmental Accounting Standards Board Statement No 34, Basic Financial Statements - and Management's D1scuss1on and Analysis - for State and Local Governments, as of June 30, 2002 
 
The prov1s1ons of GASB Statement No. 34 require the mclus1on of a Statement of Net Assets The elements compnsmg Net Assets - Begmrung mclude the followmg: 
 
General Fund (Restated) July I, 2001 Capital ProJects Fund Debt Service Fund Permanent Fund 
 
$ 6,725,842 94 40,605,163.25 1,177,819 40 57 129 71 
 
Governmental Funds (Restated) July I, 2001 Capital Assets Accumulated Deprec1at1on Property Tax Revenue T1mmg Differences Bonds and Notes Payable 
 
$ 48,565,955 30 128,458,842 00 -27, 186,606 00 -478,715 48 -91,700,000 00 
 
Net Assets Begmmng (See Exhibit "B") 
 
$ 57,659,475,82 
 
CASH AND CASH EQUIVALENTS 
 
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term mvestments with ongmal matunlles of three months or less from the date of acquisition m authonzed financial mstltutlons Georgia Laws OCGA 45-8-14 authonze the Board to deposit its funds m one or more solvent banks or msured Federal savmgs and loan assocrnt:tons 
 
- 18 - 
 
 DOUGLAS COUNTY BOARD OF EDUCA TJON NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHIBIT "H" 
 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
INVESTMENTS 
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg interest-eaming contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Part1c1pating interest-earrung contracts and money market investments with a matunty at purchase ofone year or less are reported at amortized cost Both part1c1pating interest-earmng contracts and money market investments with a matunty at purchase greater than one year are reported at fair value The Official Code of Georgia Annotated Sect10n 36-83-4 authonzes the School D1stnct to invest its funds In selecting among op!tons for investment or among instltullonal bids for deposits, the highest rate ofreturn shall be the obJec!tve, given eqmvalent cond1t1ons of safety and hqmdlty. Funds may be invested in the following 
(1) Obhgal!ons issued by the State of Georgia or by other states, 
(2) Obhgations issued by the Uruted States government, 
(3) Obhga!tons fully insured or guaranteed by the Umted States government or a Umted States government agency, 
(4) Obhgations of any corporat10n of the Uruted States government, 
(5) Pnme banker's acceptances, 
(6) The Local Government Investment Pool adm1mstered by the State of Georgia, Office of Treasury and Fiscal Services, 
(7) Repurchase agreements, and 
(8) Obhgallons of other poh!tcal subd1v1S1ons of the State of Georgia 
RECEIVABLES 
Receivables consist of amounts due from property and sales taxes, grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from informa!ton available Receivables are recorded when either the asset or revenue rccogrul!on cntena has been met Receivables recorded on the basic financial statements do not include any amounts which would necessitate the need for an allowance for uncollecl!ble receivables 
 
- 19 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHIBIT "H" 
 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
PROPERTY TAXES 
 
The Douglas County Board of Comm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 14, 2001 (levy date). Taxes were due on December 14, 2001 (hen date) Taxes collected within the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m the governmental funds for fiscal year 2002 The Douglas County Tax Cormmss1oner bills and collects the property taxes for the School D1stnct, withholds I 00% of taxes collected as a fee for tax collection and rermts the balance of taxes collected to the School D1stnct Property tax revenues, at the fund reporting level, dunng the fiscal year ended June 30, 2002, for maintenance and operations amounted to $39,882,522.04 and for school bonds amounted to $2,123,683 55 
 
Tax millage rates levied for the 2001 tax year (calendar year) for the Douglas County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value) 
 
School Operations School Bonds 
 
I 8 55 mills __21.mills 
 
~mills 
 
SALES TAXES 
 
Special Purpose Local Option Sales Tax revenue dunng the year amounted to $17,414,150 91 and 1s to be used for capital outlay for educational purposes or debt service This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years 
 
INVENTORIES 
 
CONSUMABLE SUPPLIES On the D1stnct-w1de financial statements, consumable supplies are reported at cost (first-in, firstout) The School D1stnct uses the consumption method to account for the consumable supplies inventory whereby an asset 1s recorded when supplies are purchased and expenses are recorded at the time the supplies are consumed 
 
FOOD INVENTORIES On the D1stnct-w1de financial statements, inventories of donated food commod1Ues used in the preparation of meals are reported at their Federally assigned value and purchased foods inventones are reported at cost (first-in, first-out) The School D1stnct uses the consumption method to account for invcntones whereby donated food commod1tles are recorded as an asset and as revenue when received, and expenses are recorded as the inventory items are used Purchased foods are recorded as an asset when purchased and expenses are recorded as the mventory items are used 
 
- 20 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
On the fund statements, mvcntones of governmental funds are reported at cost (first-m, first-out). The School D1stnct uses the consumption method to account for mventones whereby expenditures are recorded when mventory items are used 
 
CAPITAL ASSETS 
 
Capital assets purchased, mcludmg capital outlay costs, are recorded as expend1rures m the fund financial statements at the time of purchase On the D1stnct-wide financial statements, all purchased capital assets are valued at cost where lustoncal records are available and at estimated lustoncal cost based on appraisals or deflated current replacement cost where no lustoncal records exist Donated capital assets are recorded at fair market value on the date donated Disposals are deleted at depreciated recorded cost The cost ofnormal maintenance and repairs that do not add to the value of assets or matenally extend the useful lives of the assets 1s not cap1tahzed Depreciation 1s computed usmg the stra1ght-lme method The School D1stnct does not cap1tahze book collections or works of art 
 
Cap1tahzat1on thresholds and esllmated useful lives of capital assets reported m the D1stnct-w1de statements are as follows 
 
Cap1tahzat1on Pohcy 
 
Estimated Useful Life 
 
Land Land Improvements Bmldmgs 
Temporary Permanent Building Improvements Equipment 
 
ALL $ 10,000 00 
$ 10,000.00 $ 50,000 00 $ 10,000 00 $ 10,000 00 
 
NIA 20 years 
25 years 50 years 7 to 30 years 4 to 12 years 
 
Depreciation 1s used to allocate the actual or esl!mated h1stoncal cost of all capital assets over estimated useful hves 
 
GENERAL OBLIGATION BONDS 
 
The School D1stnct issues general obhgallon bonds to provide funds for the acqms1t1on and construction of maJor capital fac1h11es Bond issuance costs are recogmzed m the financial statements dunng the fiscal year bonds are issued In addition, general obhgallon bonds have been issued to refund ex1stmg general obhgal!on bonds General obhgat10n bonds arc direct obhgallons and pledge the full faith and credit of the government The outstandmg amount of these bonds 1s recorded m the Statement of Net Assets 
 
- 2I - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBJT"H" 
 
Note 3 DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sechon 45-8-12 provides that there shall not be on deposit at any lime many depository for a lime longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofmsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of secunlles pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduclion ofthe amount ofdeposit msurance If a depository elects the pooled method (OCGA 45-8- 13 I) the aggregate ofthe market value ofthe secuntles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe dally pool balance OCGA Sect10n 45-8-1 I (b) provides an officer holdrng pubhc funds may, m !us discretion, waive the reqwrement for secunty rn the case ofoperatmg funds placed rn demand deposit checkmg accounts. 
Acceptable secunty for deposits consists of any one of or any combrnalion of the followmg 
(1) Surety bond signed by a surety company duly qualified and authonzed to transact busrness withm the State of Georgia, 
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporalion, 
(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgalions of the Umted States or of the State of Georgia, 
(4) Bonds, bills, notes, certificates of mdebtedness or other obhgal!ons of the counlles or mumc1pahlies of the State of Georgia, 
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose, 
(6) Industnal revenue bonds and bonds of development authonlies created by the laws of the State of Georgia, and 
(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgat10ns of a subs1d1ary corporation of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgalions issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperal!ves, the Farm Credit Banks, the Federal Home Loan Mortgage Assoc1at1on, and the Federal Nalional Mortgage Assoc1alion 
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were S9,476,536 82. The amounts ofthe total bank balances are classified mto three categones of credit nsk 
 
- 22 - 
 
 DOUGLAS COUNfY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note 3 DEPOSITS AND INVESTMENTS 
 
Category I - Cash that 1s msured (e g, Federal depository msurance) or collaterahzed with secunt1es held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name 
Category 2 - Cash collaterahzed with secunlles held by the pledgmg financial mslltut10n's trust department or agent m the School D1stnct's name 
Category 3 - Uncollaterahzed deposits (This mcludes any bank balance that 1s collaterahzed with secun!Jcs held by the pledgmg financial mslltut10n, or by its trust department or agent but not m the School D1stnct's name ) 
 
The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows 
 
Risk Category 
 
Bank Balance 
 
I 
 
$2,727,520 44 
 
2 
 
1,537,139 49 
 
3 
 
5,211,876 89 
 
Total 
 
$ 2 476.536.82 
 
CATEGORIZATION OF INVESTMENTS 
Investments are classified as to nsk by the three categones descnbed below 
 
Category I - Insured or registered, or secunlles held by the School D1stnct or the School D1stnct's agent m the School D1stnct's name. 
Category 2 - Umnsured or unregistered, with secunlles held by the counterparty's trust department or agent m the School D1stnct's name 
Category 3 - Unmsured or unregistered, with secunt1es held by the counterparty, or by its trust department or agent but not m the School D1stnct's name 
 
Funds mvested m an mvestment pool managed by another govcrnrnent are not reqwred to be categonzed unless the mvestmg enttty owns specific, 1denttfiable mvestment secunt1es m the pool 
 
At June 30, 2002, the carrymg value of the School D1stnct's total mvestments was $36,231,277 73 which 1s matenally the same as fair value The mvestments are classified as to nsk categones as follows 
 
- 23 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note 3 DEPOSITS AND INVESTMENTS 
 
Type of Investment 
 
Risk Catcgon~ 
 
2 
 
] 
 
Carrymg Amgypt 
 
Fair Value 
 
U S Government 
 
$ 
 
Investment Portfolio 
 
Account 
 
$ 52,386 38 
 
Repurchase Agreements 
 
Total 
 
$ 52 386 38 s 
 
000 $ 43,497 59 $ 43,497 59 $ 43,497 59 
 
4 J!i~1J 
 
52,386 38 
 
52,386 38 
 
4,168,406 73 4,l!iMQ!i 1~ 
 
000 5421190432 S 4,264,290 70 S 4,264.290 70 
 
LocaJ Government Investment Pools 
 
31,966,987 QJ J1,222 21 Q~ 
 
Tota] Investments 
 
SJQ ~12ZZ Z3 SJQ 23 I 2ZZ Z3 
 
The carrymg amounts shown above mcludes amounts mamtamed m an mvestment pool by the State of Georgia, Office ofTreasury and Fiscal Services m which the School D1stnct owns no identifiable secunties The mvestment pohcy of the State of Georgia, Office ofTreasury and Fiscal SeTVIces for the Local Government Investment Pool (Pnmary L1qmd1ty Portfolio) does not provide for mvestment in denvatlves or smnlar mvestments A descnptlon ofthe Pnmary L1qmd1ty Portfoho 1s as follows. 
 
The Pnmary L1qmd1ty Portfoho consists of Georgia Fund 1, wluch 1s a combmation local and state government mvestment pool, and Fund 6 Georgia Fund l 1s a stable net asset value mvestment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool is not registered with the Secuntles and Exchange Comm1ss1on as an mvestment company but does operate Georgia Fund l ma manner consistent With Rule 2a-7 of the Investment Company Act of 1940 and 1s considered to be a 2a-7 hke pool The pool's pnmary obJect1ves arc safety of capital, mvestment mcome, hqmd1ty and d1vers1ficat1on wlule mamtammg pnnc1pal ($1 00 per share value) Net asset value 1s calculated weekly to ensure stabihty The pool d1stnbutes earnmgs (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 eqmvalents and mvestments are reported at cost, which approxrmates fair value The pool does not issue any legally bmdmg guarantees to support the value of the shares Partic1pat1on m the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and uruvers1ties; and current operating funds of the State of Georgia's General Fund 
 
Investments m Georgia Fund I and Fund 6 are dITected toward short-term mstruments such as U S Treasury obhgatlons. secuntJes issued or guaranteed as to pnnc1pal and mtcrcst by the U S Govenirnent or any of its agencies or mstrumentahties, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was O 12 years The average mvestment durat10n for Fund 6 on June 30, 2002, was O75 years 
 
- 24 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT "H" 
 
Note 4 NON-MONETARY TRANSACTIONS 
 
The School D1stnct receives food commod1t1es from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at thelf Federally assigned value See Note 1 - Inventories 
 
Note 5 CAPITAL ASSETS 
 
The followmg 1s a summary of changes m the Capital Assets dunng the fiscal year. 
 
Balances 
July I. 2001 
 
Increases 
 
Dccrea~s 
 
Balances June 30. 2002 
 
Governmental Act1v1t1es Cap1Ia1 Assets, 1"01 Bemg Dcpreclllted 
Land Construction m Progress 
 
$ 13,017,610 00 S 1,400,248 00 
 
$ 14.417,858 00 
 
6,370,468 00 26,739.057 00 $ -232.983 00 32,876.542 00 
 
Tola! Cap11al Assets Not Bemg Depreclllted $ 19,388.078 00 $28.139.305.00 S -232.983 00 $ 47,294.400 00 
 
Cap11al Assets Bemg Depreciated Iluildmgs and Bmldmg Improvements Equipment Land Improvements 
 
SIOl.309,351 00 $ 291,819 00 $ 
 
7,761,413 00 5,562,563 00 
 
000 
 
302.779 00 
 
0 00 $101.601,170 00 13,323,976 00 302.779 00 
 
Less Accumulated Depreciation for Bmldmgs and Buildmg Improvements Equipment Land Improvements 
 
22,142,868 00 5,043,738 00 000 
 
2,050,580 00 1,051,932 00 
7 569 00 
 
Tolal Cap1Ial Assets, Bemg Depreciated, Net$ 81,884.158 00 $ 3,047.080 00 $ 
 
24,193,448 00 6,095,670 00 7 569 00 
0 00 $ 84.931,23~ 00 
 
Governmental Activity Capital Assets - Net SJQl 272 236 QQ S3J 186 38~,QQ S -232 983 00 5132 225 638 00 
 
Current year deprec1at10n expense by function 1s as follows 
 
Instruction Support Services 
Educational Media Services General Adm1mstratlon Mamtenance and Operation of Plant Student Transportation Services Food Services 
 
$ 2,189,050 00 
 
$ 121,285 00 67,004 00 53,610 00 414 071 00 
 
655,970 00 265,061 00 
 
$3,110,081,00 
 
- 25 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note 6 RESTRICTED ASSETS 
 
Special Purpose Local Option Sales Tax (SPLOST) and property tax levied spec1fically for retirement ofoutstandmg bond pnnc1pal, mtcrest and paymg agent's fees (Debt Service Funds) and the Endowment Corpus ofPermanent Funds are reported as restncted assets m the Statement ofNet Assets because their use 1s hm1ted by applicable bond covenants, statutory prov1s1ons or trust agreements Restncted assets at June 30, 2002, were as follows 
 
Capital ProJects SPLOST Proceeds 
 
Debt Service Funds 
 
Permanent Fund 
 
Restncted Cash and Cash Eqmvalents Debt Services Capital Acqu1s1t10ns 
Restncted Investments Debt Services Capital Acqms11tons Permanent Fund 
 
$ 1,943,034 29 $ 1,311.342 20 
$ 15,445 53 $24,075,131 86 
$ 
 
47,000 00 
 
Note 7 RISK MANAGEMENT 
 
The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destruct10n of assets, errors or om1ss10ns, Job related illness or mJunes to employees, acts of God, unemployment compensation and v1s1on plan 
 
The School D1stnct has obtained commercial msurance for nsk ofloss associated with torts, assets and errors or om1ss10ns The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the Board's msurancc coverage many ofthe past three years 
 
The School D1stnct has elected to self-msure for aJl losses related to acts of God. The School D1stnct has not expenenced any losses related to this nsk m the past three years 
 
The School D1stnct has established a lnruted nsk management program for workers' compensation claims. A premmm 1s charged when needed by the General Fund to each user program on the basis of the percentage of that program's payroll to total payroll m order to cover estimated claims budgeted by management based on known claims and pnor expenence The School D1stnct accounts for claims with expenses/expenditures and hab1htybemg reported when 111s probable that a loss has occurred, and the amount of that loss can be reasonably estimated. An excess coverage insurance pohcy covers md1v1duaJ chums m excess of $250,000 00 loss per occurrence, up to the statutory hm1t 
 
- 26 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHIBIT"H" 
 
Note 7 RISK MANAGEMENT 
 
Changes m the workers" compensation claims hab1hty dunng the last two fiscal years arc as follows 
 
2001 2002 
 
Begmmng of Year Liab1hty 
 
Claims and Changesm Esllmatcs 
 
Claims Paid 
 
End of Year Liabthty 
 
$ 
 
000 $ 207.691 24 $ 207.691 24 $ 
 
0 00 
 
$ 
 
000 $ 172 986 79 $ 172,986 79 $ 
 
000 
 
The School D1stnct 1s sclf-msured with regard to unemployment compensahon chums The School D1stnct accounts for clrums withm the General Fund. Clrums are accounted for with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably eslimated 
 
Changes m the unemployment compensalion claims hab1hty dunng the last two fiscal years are as follows 
 
2001 2002 
 
Begmmng of Year Liab1hty 
 
Claims and Changes m Estimates 
 
$ 
 
s 000 
 
12.116 00 $ 
 
$ 
 
0 00 $ 10.423 00 $ 
 
Claims Paid 
 
End of Year Liab1hty 
 
1211600 $ 
 
0 00 
 
10.423 00 $ 
 
0 00 
 
The School D1stnct 1s self-msured with regards to v1s1on clrums The School D1stnct accounts for clrums w1thm the General Fund with expenditures and hab1h!ies bemg reported when 1t 1s probable that a loss has occurred and the amount of that loss can be reasonably estimated 
 
Changes m the v1s10n claims hab1hty dunng the year are as follows 
 
2001 2002 
 
Begmnmg of Year Liab1hty 
 
Claims and Changes m Esllmates 
 
$ 
 
s 0 00 $ 115 270 00 
 
$ 
 
0 00 $ 123.083 90 $ 
 
Claims Paid 
 
End ofYear L1ab1hty 
 
115.270 00 $ 
 
0 00 
 
123,083 90 $ 
 
0 00 
 
The School D1stnct has purchased surety bonds to provide add1llonal msurance coverage as follows 
 
Pos1lion Covered 
 
Amount 
 
Supenntendent All Other Employees 
 
$ 200,000 00 $ 500,00000 
 
- 27 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT "H" 
 
Note 8 SHORT-TERM DEBT 
 
The School D1stnct issues tax ant1c1pat1on notes m advance of property tax collections, depos1tmg the proceeds m its General Fund T111s short-term debt 1s to provide cash for operations untll property tax collect10ns are received by the School D1stnct Article IX, Section V, Paragraph V of the Constltu!Jon ofthe State ofGeorgia hm1ts the aggregate amount ofshort-term debt to 75 percent of the total gross mcome from taxes collected m the preccdmg year and requires all short-term debt to be repaid no later than December 31 of the calendar year m wluch the debt was mcurred 
 
Short-term debt ac!iY1ty for the fiscal year 1s as follows 
 
Tax Ant1c1pat10n Notes 
 
Begmmng Balance 
 
Issued 
 
Redeemed 
 
Ending Balance 
 
s__,.o,..,o,.o $6,000,000,00 $6,000,000,00 $___....0.,0..0.. 
 
Note 9 LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING General Obhgatlon Bonds currently outstanding are as follows 
 
Pumose 
 
Interest Rates 
 
Amount 
 
General Government - Refundmg- Senes 1993 General Government - Senes 1995 General Government - Senes 1997 General Government - Refundmg - Scnes 1999 General Government - Senes 2001 General Government - Senes 2002 
 
4 2%- 5 65% 4 35%- 5 85% 
40%-50% 310%-50% 3 625% - 4 0% 
30%-50% 
 
$26,755,000 00 4,805,000 00 3,815,000 00 18,855,000.00 30,000,000 00 9.445.000 00 
 
$93,675,000,00 
 
The changes m Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows 
 
- 28 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30. 2002 
 
EXHIBIT"H" 
 
Note 9 LONG-TERM DEBT 
 
Governmental Funds General 
Obhgallon Bonds 
 
Balance July I, 2001 
 
$91,700,000 00 
 
Additions GO. Bonds 
 
9,445,000 00 
 
Deductions Debt Retired 
 
7,470,000 00 
 
Balance June 30, 2002 
 
$93,675,000,00 
 
Port10n of Long-Tenn Debt Due WJthm One Year 
 
$12,455,000 00 
 
At June 30, 2002, payments due by fiscal year wluch mcludes pnnc1pal and mterest for these items are as follows 
 
Fiscal Year Ended June 30 
 
General Obhgallon 
 
Debt 
 
Pnncmal 
 
Interest 
 
2003 2004 2005 2006 2007 2008 - 2012 2013 - 2015 
 
$12,455,000 00 9,115,000 00 12,890,000 00 14,765,000 00 17,445,000.00 21,085,000.00 5,920,000 00 
 
$ 3,153,358 76 3,917,807 52 3,488,365 02 2,882,165.02 2, I97,320 02 4,089,390 08 581,318 78 
 
$93.675.000,00 $20.309.725.20 
 
Note 10. PRIOR YEAR DEFEASEMENT OF DEBT 
 
In fiscal year 1999, the School D1stnct defeased certam general obhgat1on bonds by placmg the proceeds of new bondsman irrevocable trust to provide for all future debt service payments on the old bonds. Accordmgly, the trust account assets and the hab1hty for the defeased bonds are not included m the School D1stnct's basic financial statements At June 30, 2002, $13,050,000 00 of bonds are outstandmg and are considered defeased 
 
- 29 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO THE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHIBIT"H" 
 
Note 11 ON-BEHALF PAYMENTS 
 
The Board has recogmzed revenues and costs m the amount of$ I, I 08,059 39 for health msurance and retuement contnbut1ons paid on the Board's behalf by the followmg State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department of Commumty Health For Health Insurance ofNon-Certified Personnel In the amount of $920,544 39 
 
Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Rellrement (PSERS) Employer's Cost In the amount of$187,515 00 
 
Note 12 SIGNIFICANT COMMITMENTS 
 
The followmg 1s an analysis ofs1gmficant outstandmg construction or renovation contracts executed by the School D1stnct as of June 30, 2002, together with fundmg available 
 
Unearned Executed Contracts 
 
Fundmg Available From State 
 
SA 0IS-648-054 SA 0IS-648-055 SA 0IS-648-056 L1th1a Spnngs High School Gymnasium New Manchester Elementary 
 
$ 209,509 88 258,532 00 30,920 04 
1,986,451.99 I, I56,348 35 
 
$ 391,608.00 67,890 30 98,022 00 
 
$ 3,641,762:76 $ 55?:520,30 
The amounts descnbed m this note are not reflected m the basic financial statements 
 
Note 13 CONTINGENT LIABILITIES 
 
Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies. This could result m requests for reimbursement to the grantor agency for any costs which are disallowed under grant terms The School D1stnct beheves that such d1sallowances, 1f any, will be 1rnmatenal to its overall financial pos1l!on 
 
The School D1stnct 1s a defendant m var10us legal proceedmgs pertaimng to matters mc1dental to the performance ofroutme School D1stnct operations The ultimate d1spos1l!on ofthese proceedmgs 1s not presently determmable, but 1s not beheved to be matenal to the basic financial statements 
 
- 30 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION NOTES TO TIIE BASIC FINANCIAL STATEMENTS 
JUNE 30, 2002 
 
EXHJBIT"H" 
 
Note 14 SUBSEQUENT EVENTS 
 
In the subsequent fiscal year, the School D1stnct issued general obligation refundmg bonds m the amount of$26,720,000.00 dated October I, 2002 The proceeds from these bonds will be used for refundmg a portion of Senes 1993 School Bonds and pay expenses mc1dent thereto 
 
Note 15 RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, adm1mstrat1ve and clencal personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-shanng multlple employer defined benefit pension plan TRS proVIdes service retirement, d1sab1hty retirement and survivors benefits for its members m accordance with State statute The Teachers Rct1rement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts. 
 
TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% ofthe1r gross earnmgs to TRS The School D1stnct makes monthly employer contnbutlons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by the1r mdependent actuary The reqmred employer contnbution rate 1s 9 24% and employer contnbutlons for the current fiscal year and the precedmg two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contnbuted 
 
Requ1red Contnbutlon 
 
2002 2001 2000 
 
100% 100% 100% 
 
$ 6,680,400.16 $7,593,472 56 $7,529,015.59 
 
- 3I - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
 
SCHEDULE 1 
 
GENERAL FUND 
SCHEDULE OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 
 
BUDGET AND ACTUAL 
 
YEAR ENDED JUNE 30. 2002 
 
REVENUES 
Property Taxes Sales Taxes State Funds Federal Funds Charges for Services Investment Earnings Miscellaneous 
Total Revenues 
EXPENDITURES 
Currenl Instruction Support Services Pupil Services Improvement of lnstructiooal SeMCes Educabonal Media Services General Administration School Adm1nlstrabon Business Administration Maln1enance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Enterpnse Operations Food Services Operabon 
Total Expendrtures 
Excess of Revenues over (under) Expend1lures 
Fund Balances - Beginning 
Fund Balances - Ending 
 
NONAPPROPRIATED BUDGETS 
 
ORIGINAL 
 
FINAL 
 
ACTUAL AMOUNTS 
 
s s s 38,914,982 00 
 
38,914,982 00 
 
39,894,041 18 
 
1,723,987 85 
 
71,511,510 00 
 
73,994,188 00 
 
76,654,123 21 
 
3,057,730 00 
 
3,057,730 00 
 
7,939,524 82 
 
7,066,985 00 
 
7,066,985 00 
 
4,449,667 71 
 
300,000 00 
 
300,000 00 
 
311,189 53 
 
3,837,910 00 
 
3,837,910 00 
 
4,026,987 86 
 
s s 124,689,117 00 $ 127,171,79500 134,999,522 16 
 
s $ 77,590,148 00 $ 79,977,368 00 
 
82,972,785 70 
 
4,501,528 00 2,622,027 00 3,208,956 00 1,079,574 00 8,076,513 00 1,151,41800 9,639,442 00 4,473,041 00 3,070,157 00 
7,369,380 00 
 
3,029,602 00 2,426,444 00 3,276,706 00 1,079,574 00 8,076,513 00 1,151,418 00 9,639,442 00 4,473,041 00 3,070,157 00 
7,369,380 00 
 
3,077,612 08 3,158,596 96 3,070,259 78 1,147,994 31 8,163,581 05 1,166,033 24 8,886,399 73 4,225,611 93 2,771,820 96 
537,888 61 759,437 64 7,267,185 83 
 
s $ 122,782,184 00 123,569,645 00 $ t27,205,207 82 
 
s s s 1,906,933 00 
 
3,602, 150 00 
 
7,794,314 34 
 
3,426,068 00 
 
4,215,498 00 
 
6,725,842 94 
 
$ 
 
See notes to the basic finanCJal statements 
 
- 32- 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDER JUNE 30 2002 
 
SCHEDULE "2" 
 
FUNDING AGENCY 
PROGRAM/GRANT 
Agriculture, U S Department of Child Nutrit\on Cluster Pass-Through From Georgia Oeparbnent of Education Food and Nutnbon Program Food Services Schoo1 Breakfast Program 
Nabonal School Lunch Program Pass-Through From Office of School Readlness 
Food encl Nutrttlon Program Summer Food SeMCe Program for Chlldren 
Total Clnltl NulnbOn Cluster 
Other Programs Pass-Through From Georgia Deparbnent of Education Food and Nubttlon Program Food Dlstrlbubon Program ( 1) Fn,gh Produce Program (1) 
Total U S Department of Agriculture 
Education, U S Department of Special Education CkJster Pass-Through From Georgia Department of Educabon Individuals With D1:sab11ibeS Education Act Part B - Special EducallOn Flow Through Capacity Building Improvement Praschool 
Total Special Education Cluster 
Other Programs 
Dln>et Foretgn Language Assistance 
Pass--Through Frcm Georgia Deparbnent of Education Comprehensive School Reform Demonstration Prcjoct Elementary and Secondary Education Act Title I Grants to Local Educabonal Agenctes Title II Eisenhower Professlonal Development TiUe VI Innovative Education Program Strategies Class Size Reduction Safe and Drug-Free Schools and Communities Vocational Education  Basic Grants to States High School Program Basic Grant 
Total U S Department of Educabon 
Health and Human S8rv\ces U S Department of Pass--Through From Georgia Department of Human Resources Block Grants fo, Prevention end Treatment of Substance Abuse Grant-m-Ald 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
10 553 10 555 
10 559 
 
NIA $ 616,862 83 
 
NIA 
 
2,073,052 00 $ 
 
(2) 6,818,422 22 (3) 
 
NIA 
 
73,854 52 
 
$ 2,763,769 35 $ 
 
73 854 52 6,892,276 74 
 
10 550 10 550 
 
NIA 
 
435,967 60 
 
NIA 
 
63.221 00 
 
$ 3,262,957 95 $ 
 
387,681 22 63 221 00 
7 343 178 96 
 
64 027 64 027 64 173 
 
NIA $ 1,810,144 62 $ 
 
NIA 
 
33,361 81 
 
NIA 
 
86,876 86 
 
$ 1 930,383 29 $ 
 
1,810,144 62 33,361 81 86 876 86 
1,930,383 29 
 
64293 64 332 
64 010 64 281 64 298 64 340 64 186 
64 048 
 
171,488 00 
 
171,488 00 
 
NIA 
 
119,600 03 
 
119,600 03 
 
NIA 
 
1,695 794 97 
 
1,695,794 97 
 
NIA 
 
68,005 32 
 
68,005 32 
 
NIA 
 
78,587 00 
 
78,587 00 
 
NIA 
 
313 558 00 
 
313 558 00 
 
NIA 
 
82,764 90 
 
82,764 90 
 
NIA 
 
145 199 00 
 
$ 4,605,380 51 $ 
 
145 199 00 4,605,380 51 
 
93959 
 
NIA 
 
s 25,000 00 $ 
 
25 000 00 
 
 33  
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "2" 
 
FUNDING AGENCY PROGRAM/GRANT 
Defense, u S Department of Direct Department of the Manne Corps R O T C Program 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES IN PERIOD 
 
$ 46 186 36 
 
(4) 
 
Total Federal Financial Aaalstmce 
 
$ 7,9391524 82 $ 1197355947 
 
NIA = Not Available 
 
Not8s to thft Schedufe of &pendrfums of Federal Awards 
 
(1) The emounta ahown for the Food OlstributJOn Program and the Fresh Produce Program represent the Federally assigned value of monetary assistance for donated commocllbes recelV8d and/or consumed by the system during the current fiscal year 
(2) Expendltun,s for the School Breakfast Program were not mamtamed separately and ere Included In Iha 2002 Nebonel School Lunch Program 
(3) Expenditures for lhrs program incfude State, and/or Other Funds Expenditures are not matntalned by fund source 
(4) Expenditures on this program were not mallllarned by fund source 
 
Major Programs ere ldentlf:ed by an asterisk (') :n front of the CFDA number 
 
The School Dlslncl did not prowle Federal Assistance lo any Subreclplonl 
 
The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Douglas County Board of Education and Is presented oo the modified accrual basis of account.mg which 1s the basis of accountmg used tn lhe presentation of the basic flnenclal statements 
 
See notes to the bask: fanane&aJ statements 
 
 34 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
SCHEDULE OF STATE REVENUE 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE 3 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
CAPITAL 
 
GENERAL 
 
PROJECTS 
 
FUND 
 
FUND 
 
TOTAL 
 
GRANTS Educabon, Georgia Department of Quality Baste Education 
Direct lnstnJcttonaf Cost 
Kmdergarten Program Kindergarten Program - Earty lntervenbon Program Pnmary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Earty Intervention (4-5) Program Middle Grades (6-8) Program High School General Educahon (9-12) Prag-am VocalKlnal Laboratory (9-12) Program Students wtth Dlsab1lltles 
Gategory I Category II Gategory Ill Gategory IV CategoryV Gifted Student - Category VI Remechal Educabon Program Altsmattve Education Program Enghsh Speakers of Olher Languages (ESOL) Macha Center Program Twenty Days Add1bonal lnstrucllon 
Staff and Professional Development 
Indirect Cost Central Admlnlstrabon School Aclmm1stratlon Facillty Maintenance and Operations 
Gategoncal Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnnapal Supplements VocatK>nal Supervtsors 
Educabon EquaNzation Funding Grant Food SeMces Vocahonal Educahon 
Other State Programs Apprenbceshlp Program Health Insurance Mentor Teadlers Nabonal Teadier CertJfication 
Pay for Performance 
Preschool Handicapped Program School Snack Special Education Support Cost Statewkle After School Program Statewide Reading Program Sb.Jdent Achievement Tulbon for the Multi-Handicapped Lottery Programs Asslstive Technology 
Computers n the Classroom 
Excepbonal Growth-Capita! OuUay 
 
$ 3,798,916 00 938,352 00 
9,458,622 00 2,463,224 00 4,987,520 00 1,345,072 00 8,861,790 00 7,579,276 00 3,152,651 00 
470,990 00 945,856 00 4,755,109 00 946,15000 110,975 00 2,302,828 00 166,866 00 716,908 00 199,799 00 1,612,010 00 487,311 00 307,759 00 
1,909,171 00 3,093,115 00 4,655,023 00 
1,655,741 00 432,402 00 346,212 00 74,925 00 133,874 00 
3,937,255 00 483,878 00 188,059 79 
45,000 00 920,544 39 
21,267 00 6,284 00 
390,000 00 252,370 00 
19,599 23 63,000 00 144,043 25 196,823 73 58,330 98 100,915 36 
39,708 58 430,100 00 
$ 
 
$ 373 201 50 
 
3,798,916 00 938,352 00 
9,458,622 00 2,463,224 00 4,987,520 00 1,345,072 00 8,861,790 00 7,579,276 00 3,152,651 00 
470,990 00 945,856 00 4,755,109 00 946,150 00 110,975 00 2,302,828 00 166,866 00 716,908 00 199,799 00 1,612,010 00 487,311 00 307,759 00 
1,909,171 00 3,093,115 00 4,655,023 00 
1,655,741 00 432,402 00 346,212 00 74,925 00 133,874 00 
3,937,255 00 483,878 00 188,059 79 
45,000 00 920,544 39 
21,267 00 6,284 00 
390,000 00 252,370 00 
19,599 23 63,000 00 144,043 25 196,823 73 58,330 98 100,915 36 
39,708 58 430,100 00 373,201 50 
 
- 35 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION 
SCHEDULE OF STATE REVENUE 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE 3 
 
AGENCY/FUNDING 
GRANTS 
Georgia State Flnanong and Investment Comrmss1.on. Reimbursement on Construcbon Protects 
Office of Sci1ool Readmass Pre-Kindergarten Program 
Office of Treasury and F\seal Servu::es Public School Employees Retlrement 
CONTRACT Education, Georgia Department of Foreign Language Model Program 
OTHER Community Affairs, Georgia Department of Local ~tance Grant 
 
GOVERNMENTAL FUND TYPES 
 
CAPITAL 
 
GENERAL 
 
PROJECTS 
 
FUND 
 
FUND 
 
TOTAL 
 
$ 4,479,017 70 $ 4,479,017 70 
 
$ 1,007,773 90 
 
1,007,773 90 
 
187,515 00 
 
187,515 00 
 
208.208 00 
 
208,208 00 
 
45 000 00 
 
45 000 00 
 
$ 76,654,123.21 $ 4,852,219 20 S 81,506,342 41 
 
See notes to the baSlc financial statements 
 
-36- 
 
 DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF AP PROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30 2002 
 
SCHEDULE 41 
 
PROJECT 
 
Foodmg the repayment ol pnnc,pal and interest on the Sdiool Dmrlct's Sanes 1986 Bonds completely as they mature, the prinapal end interest on the School Dlstrk:rs Series 1993 Bonds matunng JallU8,Y 1 1998 through end Including January 1, 2003, end the pnnopal and interest on the Sdlool District's Serles 1995 Bonds matunng Janua,y 1, 1998 ttvough and Including Jenua,y 1, 2003 
 
Foodmg the ecqu.lsltlon, construcbon and aqU1pping of phase II ol lhe new high school e ntrW rmddle school and a new 
 
- 
 
school tho pcn:hase ol 
 
land for future sc:hoola and renovabon.S 
 
and addrtJons to 8Xl81.Jng sdlools, 
 
mctudmg tho ac:qursrtJon of an 
 
necessa,y property 
 
Fundlng the repayment of pnnapal and and Interest on the School Dt&tnct's Sanes 1983 Bonds matunng July 1, 2003 through and 1ncludtng July 1, 2007, and tho prfnclpal 
and mterest on the School Diatr1ct's 
Series 1999 Bonds maturing January 1, 2003 ttvough and Including 
January 1, 2007 
 
Funding the ac:q.il:sltion and tnstatlatlon o1 ntrW technology and equipment at all educational faCllrtres the acqulSlbon construction 11nd equipping of three new schools and the purchase of land lo be used as sites for future educ:al!Onal taa~bes and add1tlona renovabOns and modlrttations to eldstlng educallonal facillbe:s and the acqulSltJon of new school buses and transporta!Jon equipment 
 
ORIGINAL 
ESTIMATED 
COST 111 
 
CURRENT ESTIMATED COSTS(2) 
 
AMOUNT EXPENDED IN CURRENT YEAR (3) (4) (5) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) (4) 
 
PROJECT STATUS 
 
S 34 000 000 00 S 34,000,000 00 S 2,313,723 13 S 17,907 741 78 Ongoing 
 
29 000 000 00 
 
43,641 247 32 
 
4,233,205 76 39,408,041 56 Ongoing 
 
30,000,000 00 
 
30 000 000 00 
 
Ongoong 
 
79,000,000 00 
 
79 000 000 00 
 
30 83159095 
 
111451886 38 Ongoing 
 
S 172 000 000 00 S 186,641,247 32 $ 37,378,519 64 S 58:461,689 72 
 
(1) The School Dieb1ct's onglnal cost estimate es speaflecl In the reso1ubon caning lor tho mpo6ltlOn of the Local Opbon Sales Tax 
 
(2) The School Dmtnc:t's c;:,..mint estimate of total cost far the ~eds lncludos all cost from profDCI tnceptloo lo complebon 
 
(3) The voter, ol Douglas County approved the lmposibon of a 1% aales tax lo fund the above pro,ects encl retire associated debt Amounts expended far these pro,ects may Include sales tax proceeds state local property taxes and/or other flnds over the hfe of the prQf8d& 
 
(4) In adcl1hon to the expenditures shown ebow the School DtStnct has incurred interest to provkJe advance h.Jncllng 
for the above prqoct& as follows 
 
PnorYears 
 
S 198291459 
 
Curren1 Year 
 
1360118 75 
 
Total 
 
$ 3 343 033 34 
 
(5) The Sanes 1966 Bonds and a poruon of the Sanes 1995 Bonds -were retired ttvough the l58'e of 
Serles 1999 Refunding Bond lasue The Sdlool Ourtrk:t wlll ut1lae the SPLOST proceeds budgeted for th1s ~ . plus any excess SPLOST proceeds to retre the Senes 1999 Retll1dlng Bond Issue 
 
See notes to the basic flnandal statements 
 
- 37 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM taBE) 
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002 
 
SCHEDULE 5 
 
DESCRIPTION 
Direct lnstructlonal Programs Kindergarten Program Kindergarten Progrem-Ear1y Intervention Program Primary Grades (1-3) Program Primary Grades-Eany Intervention (1-3) Program Upper Elementery Grades (4-5\ Program Upper Elementery Grades-Earty Intervention (4-5\ Program Middle School (6-8) Program High School General Educatlon (9-12) Program Vocational Laboratory (9-12) Program Studan!B wrth Dlsabllltla& category I ca1egory II category 111 catagory IV Category V Gifted Student - category VI Remecllal Educatlon Program Attemabve Education Program English Speakers ol Other Language, (ESOL) 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
Media Center Program Staff and Prcfeaslonal Development 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
s 
 
s s s 4,378,566 00 
 
4,440,094 77 
 
172,647 52 
 
4,612,742 29 
 
1,081,529 00 
 
904,039 99 
 
11,906 35 
 
915,946 34 
 
10,901,850 00 10,511,597 14 
 
636,13112 
 
11,147,728 26 
 
2,839 072 00 2 143,557 33 
 
39,074 90 
 
2,182,632 23 
 
5,721,736 00 6,456,923 96 
 
434,448 31 
 
6,891,372 27 
 
1,577,10500 10,213,951 00 8,735,747 00 3,633 692 00 8,332,113 00 
2,654,200 00 192,327 00 826,296 00 2301285 00 
 
967,312 83 9,172,545 23 9,121,188 50 2,849,377 26 
320,909 04 960,380 26 6,081,077 01 613,141 61 
51,410 53 3,104,749 94 
612,752 59 748,890 52 2491645 20 
 
10,647 18 689,451 74 863,78049 357,370 58 
18,925 59 22,693 45 118,523 29 29,882 28 6,969 03 54,490 03 
1,61177 29,565 74 
540944 
 
977,960 01 9,861,996 97 9,984,968 99 3,206,747 84 
339,834 63 983,073 71 6,199,600 30 643,023 89 
58,379 56 3,159,239 97 
614,364 36 778,456 26 2551054 64 
 
$ 
 
s s 61,318,469 00 59,309,593 71 $ 3,503,528 81 
 
62,813,122 52 
 
1,857,974 00 354 721 00 
 
2,565,609 07 154 943 47 
 
428,405 05 2181828 84 
 
2,993,914 12 373 772 31 
 
TOTAL QBE FORMULA FUNDS 
 
s 
 
6315311164 00 S 62 030 046 25 S 415076270 $ 66,180,808 95 
 
(1) Compnsed of State Funds plus Local FIV8 M~I Shara 
 
See notes to the baslc financial statements 
 
- 38 - 
 
 DOUGLAS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE} 
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002 
 
SCHEDULE "6" 
 
SITE 
Chapel Holl High School Yeager Middle School Lithia Spnngs Comprehensive High School Arbor Station Elementary School Fairplay Middle School Dorsett Shoals Elementary School Alexander High School Chestnut Log Middle School Factory Shoals Elementary School South Douglas Elementary School Bnght Star Elementary School Holly Spnngs Elementary School New Manchester Elementary School Chapel Holl Elementary School Sweetwater Elementary School Mirror Lake Elementary School Burnett Elementary School Eastslde Elementary School Boll Arp Elementary School Winston Elementary School Beulah Elementary School Turner Middle School Lrthoa Spnngs Elementary School Chapel Holl Middle School Douglas County High School Mount Carmel Elementary School Stewart Middle School Annette Winn Elementary School CrossRoads High School CrossRoads Middle School Central Office (Alternative Educabon Program) 
TOTAL 
(1) Compnsed of State Funds plus Local Five Moll Share 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
3,215,509 00 $ 
 
3,282,061 05 
 
48,12806 
 
4,467,617 00 
 
4,958,380 72 
 
2,194,656 00 
 
2,210,691 38 
 
2,453,912 00 
 
2,434,393 49 
 
1,821,174 00 
 
1,856,825 61 
 
4,297,155 00 
 
4,526,901 39 
 
2,864,729 00 
 
2,795,777 79 
 
1,938,409 00 
 
1,909,113 59 
 
1,789,545 00 
 
1,755,090 35 
 
1,983,723 00 
 
1,917,086 24 
 
1,951,565 00 
 
1,988,656 21 
 
60,551 80 
 
2,043,033 00 
 
2,066,688 38 
 
2,289,586 00 
 
2,398,466 44 
 
79,247 28 
 
2,253,882 00 
 
2,343,243 92 
 
2,184,182 00 
 
2,410,348 38 
 
1,717,155 00 
 
1,808,803 32 
 
1,865,673 00 
 
1,936,858 53 
 
1,568,035 00 
 
1,517,819 40 
 
2,401,278 00 
 
2,469,371 61 
 
1,644,724 00 
 
1,616,822 60 
 
2,986,344 00 
 
2,816,808 34 
 
4,116,585 00 
 
4,500,010 87 
 
2,051,849 00 
 
2,036,188 46 
 
2,706,189 00 
 
2,672,600 79 
 
1,685,664 00 
 
1,648,823 15 
 
731,310 48 
 
14,913 47 
 
826,296 00 
 
1,13942 
 
$ 61,31846900 $ 62,813,122 52 
 
See notes to the bas,c financial statements 
 
- 39 - 
 
 SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 IJ<,<,~ LI W HINTON 
STAT[ ALJO,TOR (404\ 56 71 / 1 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 Wa.:;hmgton ~tr~I SW ~uth: 214 AtlJntJ Gcorg1J 10334-841Xl 
May 13, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education 
and Supenntendent and Members of the Douglas 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 Douglas County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated May 13, 2003 This report was quahfied for a departure from generally accepted accountmg pnnc1ples, as 1denllfied m the auditor's report on the basic financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of Amenca and the standards apphcable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States 
Comphance 
As part of obtammg reasonable assurance about whether Douglas County Board of Education's financial statements are free of material misstatement, we performed tests of its comphance With ccrtam prov1s1ons oflaws, regulat10ns, contracts and grants, noncomphance with which could have a direct and matenal effect on the detcrmmat10n of financial statement amounts However, prov1dmg an opm10n on comphance with those prov1S1ons was not an obJcchve of our audit, and accordmgly, we do not express such an op1mon The results ofour tests disclosed no mstances ofnoncomphance that are reqmred to be reported under Government Aud1tmg Standards 
Internal Control Over Fmanc1al Reportmg 
In plannmg and performmg our audit, we considered Douglas County Board ofEducat10n's mternal control over financial rcportmg m order to determme our aud1tmg procedures for the purpose of expressmg our opm1on on the financial statements and not to provide assurance on the mternal 
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 eond1tton. Reportable conditions involve matters coming to our attention relating to s1gruficant defic1enc1es in the design or operation ofthe internal control over financial reportmg that, m ourJudgment, could adversely affect Douglas County Board of Education's ab1hty to record, process, surnrnanze and report financial data consistent with assertions of management in the financ1aJ statements The reportable condition 1s descnbed in the accompanying Schedule of Findings and Questioned Costs as item FS-6481-02-01 
A matenal weakness 1s 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 nsk that misstatements in amounts that would be matenal in relation to the financial statements being audited may occur and not be detected within a timely penod by employees in the normal course of performmg their assigned functions. Our consideration of the internal control over financial reporting would not necessanly disclose all matters in the internaJ control that might be reportable conditions and, accordingly, would not necessanly disclose all reportable cond1ttons that are also considered to be matenal weaknesses. However, we consider item FS-6481-02-01 to be a matenal weakness 
This report 1s intended solely for the informat1on and use of the management, members of the Douglas County Board of Education, Federal awarding agencies and pass-through entitles and 1s not intended to be and should not be used by anyone other than these specified parties 
--~Respectfully submitted, 
 
RWHgp 2002YB-41 
 
Hinton State Auditor 
 
 t,',M.LI. W. HINTON 
S lATE AUOITOn 
/4C4) G56-217A 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
254 WJ,hmgton Street, SW Suite 214 AtlJnta, Gcorg1J 30334-8400 
May 13, 2003 
 
Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEdueat1on 
and Supenntendent and Members of the Douglas County Board of Edueahon 
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 
Comphance 
We have audited the comphance of Douglas County Board of Educahon with the types of comphance reqmrements descnbed m the US Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are apphcable to each of its maJor Federal programs for the year ended June 30, 2002 Douglas County Board ofEducatton's maJor Federal programs are 1denllfied m the Summary of Auditor's Results Sectton of the accompanymg Schedule of Fmdmgs and Questioned Costs Comphance with the requtrcments of laws, regulattons, contracts and grants apphcable to each of its ma3or Federal programs 1s the respons1b1hty of Douglas County Board of Education's management Our respons1b1hty ts to express an op1mon on Douglas County Board of Education's comphance based on our audit 
We conducted our audit of comphance m accordance with aud1tmg standards generally accepted m the Umted States of Amenca, the standards apphcable to financial audits contamed m Government Au<l1tmg Standards, issued by the Comptroller General of the Umted States, and 0MB Circular A133, Audas of States, Local Governments, and Non-Profit Orgamzanons. Those standards and 0MB Circular A- I 33 requtre that we plan and perform the audit to obtam reasonable assurance about whether noncomphance with the types ofcomphance reqmrerncnts referred to above that could have a direct and matenal cfTect on a maJor Federal program occurred An audit includes examinmg, on a test basts, evidence about the Douglas County Board of Education's comphance with those requirements and performing such other procedures as we considered necessary m the circumstances We beheve that our audit provides a reasonable basts for our opmton Our audit does not provide a legal determinatton on Douglas County Board of Educahon's comphance with those requirements 
2002SA-40 
 
 In our opm1on, the Douglas County Board of Education complied, mall matenal respects, with the requirements referred to above that arc applicable to each of1ts maJor Federal programs for the year ended June 30, 2002 However, the results of our aud1tmg procedures disclosed an mstance of noncomphance with those reqwrements, which 1s reqmred to be reported m accordance with 0MB Cucular A-133 and which 1s descnbed m the accompanymg Schedule ofFmdmgs and Questioned Costs as item FA-6481-02-01 
Internal Control Over Comphance 
The management of Douglas County Board of Education 1s responsible for establishmg and mamtammg effective mtemal control over comphance with reqmrements of laws, regulations, contracts and grants apphcable to Federal programs In plarmmg and performmg our audit, we considered Douglas County Board ofEducat10n's mtemal control over comphance with reqmrements that could have a direct and matenal effect on a maJor Federal program m order to deterrnme our auditing procedures for the purpose of expressmg our op1mon on compliance and to test and report on mtemal control over comphance m accordance with 0MB C1TCular A-133 
We noted certam matters mvolvmg the mtemal control over compliance and its operation that we consider to be reportable cond1t1ons Reportable conditions mvolve matters commg to our attention relatmg to s1gmficant defic1enc1es m the design or operation ofthe mternal control over comphance that, m our Judgment, could adversely affect the Douglas County Board of Educat10n's ab1hty to adrmmster a maJor Federal program m accordance with applicable reqmrements oflaws, regulations, contracts and grants The reportable condition 1s descnbed m the accompanymg Schedule of Fmdmgs and Quesl!oned Costs as item FA-6481-02-01 
A matenal weakness 1s a cond11!on m which the design or operal!on of one or more of the mternal control components does not reduce to a relal!vely low level of nsk that noncompliance with the applicable reqmrements oflaws, regulal!ons, contracts and grants that would be matenal m relation to a maJor Federal program bemg audited may occur and not be detected w1thm a l!mely penod by employees m the normal course ofperforrmng their assigned functions Our cons1derat1on of the mternal control over compliance would not necessanly disclose all matters m the mternal control that might be reportable cond11!ons and, accordmgly, would not necessanly disclose all reportable cond11!ons that are also considered to be matenal weaknesses However, we believe the reportable cond11!on descnbed above 1s not a matenal weakness. 
This report 1s mtended solely for the mformal!on and use of the management, members of the Douglas County Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties 
---Respectfully submitted, 
w.~ 
ell W. Hmton State Auditor 
RWHgp 2002SA-40 
 
 SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
 
 DOUGLAS COUNTY BOARD OF EDUCAITON 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-6481-99-0 I FS-6481-00-02 FS-6481-0 I -0 I 
 
Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Prev10usly Reported Corrective Action Implemented 
 
 SECTION IV HNDINGS AND QUESTIONED COSTS 
 
 DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
 
I SUMMARY OF AUDITOR'S RESULTS 
 
I Type of Report Issued on the Fmanc,al Statements The auditor's opinion on the Douglas County Board ofEducation's financial statements was qualified for a departure from generally accepted accounting pnnc,ples 
 
2 Reportable Conditions in Internal Control Disclosed by the Audit of the Fmancial Statements The audit report for the Douglas County Board of Education disclosed financial statement reportable conditions related to the followmg control categones 
 
Revenues/Rece1vables/Rece1pts 
 
Expend1tures/Liab1!1t1es/D1sbursements 
 
All of the reportable conditions descnbed above are considered to be matenal weaknesses 
 
3 Noncompliance Matenal to the Financial Statements The audit of the Douglas County Board of Education disclosed no instances of noncompliance that were deemed to be matenal to the financial statements 
 
4 Reportable Conditions in Internal Control Over Ma1or Programs The audit report for the Douglas County Board ofEducation disclosed a reportable condition m internal control over maJor programs for the following compliance reqwrement 
 
Activities Allowed or Unallowed 
 
The reportable cond1t1on descnbed above 1s not considered to be a matenal weakness 
 
5 Type of Report Issued on Compliance for Ma1or Programs The auditor's op1ruon on the Douglas County Board of Education's report on compliance with reqmrements applicable to maJor programs was unqualified. 
 
6 Audit Findmgs Regmred to be Reported by Sect10n 5 lO(a) ofOMB Circular A-133 The Douglas County Board of Education's audit disclosed an audit finding reqmred to be reported by section 5IO(a) ofOMB Circular A-133 This audit findmg 1s included in section IV of this report 
 
7 Ma1or Programs Federal awards audited as maJor programs are as follows IO 553 Food and Nutntlon Program - Food SefV!ces - School Breakfast Program IO 555 Food and Nutntlon Program - Food Services - Nat10nal School Lunch Program IO 559 Food and Nutntlon Program - Food Services - Summer Food Service Program for Ch, !dren 84 340 Elementary and Secondary Education Act - Title VI - Cass Size Reduction 
 
-I- 
 
 DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2002 
I SUMMARY OF AUDITOR'S RESULTS 
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $345,488 06 
9 Low Risk Aud1tec The Douglas County Board of Education quahfied as a low nsk aud!tee as defined by Section 530 ofOMB Circular A-133 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
REVENUES/RECEIVABLES/RECEIPTS EXPENDITURES/LIABILITIES/DISBURSEMENTS Inadequate Separatlon of Dulles Reportable Condition - Matenal Weakness Fmdmg Control Number FS-6481-02-01 
Our exammatlon of the pnnc1pals' accounts disclosed weaknesses m mtemal control as discussed below 
Revenues/Rece1vables/Rece1pts - Deposit preparation was not separated from the record keepmg funct10ns 
Expenditures/Liabilit1es/D1sbursements - Based on a test of 100 items, sixty voucher packets mcluded purchase request forms which were dated and approved after the mvo1ce date 
These defic1enc1es were the result of management's dec1s1on to limit the number of adrmmstrauve staff made responsible for accounting functions and failure to ensure established controls were functlonmg as designed Management should implement procedures to ensure that key accounting functions ofcustody, record keepmg and authonzatlon are segregated Add1t1onally, controls should be revised and momtored to proVIde reasonable assurance that transactions are processed accordmg to established procedures 
Management's Response 
Due to fundmg constramts, it 1s not feasible to lure additional staff responsible for accounting functions While the deposit preparation functlon 1s not separated from the recordkeepmg function, controls are m place to provide management with some assurance that funds collected are properly accounted for by school staff Management will contmue to momtor compliance with established procedures related to receipts and disbursements, and will contmue to work with pnnc1pals that are m non-compliance to correct any defic1enc1es 
-2- 
 
 DOUGLAS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30. 2002 
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
ACTIVITIES ALLOWED OR UNALLOWED Disallowed Meal Reimbursements Reportable Condition Nonmatenal Noncomphance Questioned Cost $22,863 09 U S Department of Agnculture Tirrough Office of School Readmess Fmdmg Control Number FA-6481-02-01 
The Office ofSchool Readmess conducted a review ofthe 2002 Summer Food Service Program for Children report dated August 13, 2002 The program review revealed that the meals served did not contam all of the four required meal components m accordance with 7 CFR 225 16 Lunch meals were served without milk USDA gu1delmes as outhned m 7 CFR 225 16, require the sponsor to provide a complete meal with the four required meal components 8oz milk, 2 servmgs offnnt/full strength fn11t1uice or vegetable, gram and meat/meat altemahve This deficiency resulted m 12,917 lunch meals bemg disallowed with a total cost of $22,863 09 
This cond1t10n occurred because management failed to perform adequate site momtonng to ensure that the Summer Food Service Program part:Jc1pants were meetmg program comphance gu1delmes The School D1stnct should implement procedures to ensure that all sponsors are servmg creditable meals. 
Management's Response 
The School D1stnct has appropnate procedures m place to ensure that all sponsors serve creditable meals The 2002 Summer Food Service Program for Cluldren offered milk as required with the meals served However, many cluldren chose not to take the milk that was offered Management beheved 1t to be a better use of funds to allow children to take only the milk they would dnnk, and not waste taxpayer money throwmg away unopened milk Management has d1scontmued this program 
-3-