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

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,_DEPARTMENJ OF AU..DITS:AND.ACCOUNTS

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' EFFINGHAM CO.UNTYBOA' RD OF EDUCATION-

SP~R INGFIELD,

GEORGIA
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REPORT ON AUDrr.
OF. THE FINANCIAL STA' TEMENTS-

FOR
-,:

T,,HE

FISCAL

YEA...R

ENDED

J. UNE

30.

2002



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,_,1
Russell W. Hinton State' Auditor _

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EFFINGHAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

Page

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORl ON GENERAL-PURPOSE ~ll'<ANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPFNDI fURES OF Fl:.DERAL AWARDS

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STAl EM ENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL flNANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL RLVENUE fUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN fUND BALANCES

26

DEBT SERVICI:. FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

SCHEDULES

I SCHEDULE OF EXPENDITURES OF fEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

EFFINGHAM COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALi fY BASIC CDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASCD 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 INl ERNAL CONTROL OVER COMPLIANCE IN ACCORDANCr WITI I 0MB CIRCULAR A-133

SECTION Ill
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED cos rs
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHf:DULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

{[1,,1 I I \V, HINl<l'i
STATr AUDITOfl (~04) F'>6- 1 1,-l

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.t..,hmgton Strt.:cl, ~ W Su1IC' 214 AtlJntJ. Ucorg1J 1(113 I-X4lKl
July 3. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Member; of the State Board of Education
and Superintendent and Members ot the Effingham County Board of l,:dueatlon
INDCPENDl:N I AUDI I OR'S COMBINED REPOR I ON GCNERAL-PURPOSE FNANCIAL Sl ATEMfNTS AND SUPPLr:MENTARY INFOR.\.1ATION SCHEDULF OF EXPENDITURES OF FEDCRAL AWARDS
Lad1e, and Gentlemen
We have audited the accompanying general-purpose financial statements of the Effingham County Board of Educatmn. as ol and for the year ended June 30, 2002. a, listed in the table of contents The,c general-purpose financial statement, arc the respons1b1ltty of the Ctlingham County Board ol Education's management Our respons1b1ltty 1s to express an opinmn on these general-purpose financial ,tatemcnts based on our audit
We conducted our audit in accordance with audmng standards generally accepted in the Umted States ofAmenca and the standards applicable to financial audit, contained in Government Auditing Standards. 1s,ued by the Comptroller General of the Umted States Those standard, require that wc plan and perlonn the audit to obtain rea,onable assurance about whether the financial statement, are free of matenal misstatement An audit includes examining. on a test bas,,. evidence ,upporting the amounts and disclosures in the finanual statement, An audit also includes a.scssing the a~counting pnnc1ples u,cd and ,1grnficant estimate, made by management, a, v.ell as evaluating the overall financial statement presentation We belte\e that our audit pro,1dcs a reasonable ba,1s for our opinion
As described in the notes to the general-purpo,e financial statement,. the Board of l:ducatlon', financial statements havo: been prepared using certam accountmg practices and policies which. m our opinion. val) in some respects from generally accepted accounting pnnc1ples These vananco:, are descnbed as follows

2002ARL-13

The general-purpose financial statements of the Board of Education did not contam a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accountmg principles.
School activity accounts mamtamed at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ple~. the,e accounts should be mcluded in the general-purpose financial statements
The Board of Educat10n did not recognize as expenditures. m the year ended June 30. 2002. a poruon of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30. 2002 Also funds received, subsequent to June 30. 2002. from the Georgia Department of Education for the State's ,hare of these unrecorded salaries and related benefits were not recorded as revenue in the year under review Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001. were improperly recorded m the year ended June 30. 2002 To conform to generally accepted accountmg principles, revenues should be recorded when avrulable and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed
The aggregate efTects on the general-purpose financial statements of these variance~ or om1ss1ons have not been dctcrmmed. but are believed to be matcnal
In our op1mon, except for the effects on the general-purpose financial statements of the matter, referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly. in all matenal respects, the financial position of the Effingham County Board of Education a, of June 30, 2002, and the results of its operations for the year then ended, m conformity with accounting prmc1ples generally accepted m the Umted States of America
In accordance with Government Aud1tmg Standards, we have also issued our report dated July 3. 2003. on our considerat10n of the Effingham County Board of Education's mtemal control over financial reponmg and our tests of its compliance with certam provisions of laws, regulations. contracts and grants That report 1s an mtegral part of an audit performed in accordance with Government Aud1tmg Standards and should be read in conJunct1on with this report in considering the results of our audit
Our audit was performed for the purpose of formmg an opm10n on the general-purpose financial statements of the Effingham County Board of Education taken as a whole The accompanymg combining statement~ (Exh1b1ts E through J) and the financial schedules (Schedules I through 5). which mcludes the Schedule of Expenditures of Federnl Awards as required by U S Office of Management and Budget Circular A-133, Audlls of States. Local Gmernment~. and Non-Profit Orgam=atwm, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements Such information has been subjected to the aud1tmg
2002ARL-13

procedure, applied m the audit ofthe general-purpose financial statements and m our opm10n. e'l.cept for the effects of the matters referred tom the third paragraph, ,uch mformatlon 1s fairly stated.mall matenal respects, m relallon to the general-purpose financial statements taken as a whole
A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Secuon 506-24

RWl-lgp 2002ARL-13

Hmton State Auditor

EfflNGHAM COUNTY BOARD OF EDUCA rtON

l;FFlN~tlaM CQU~TY aQBBO QF EDUCATIQN
QQM!iflNEQ 6ei~CE St::H;EI
8LL E!J~Q IYPES &ii:.! ACCQUNI GBQUe
JUNE 30 2002

~
Cash and Cash EqUtvalents
Investments
Accounts Receivable
Due from Other Funds
Inventories Food Donated Commod.,.. Purchased Food
Amount Avarlable rn Debt Serna, Fund
Amount to be Provided 1n Future Years For Payment ot Bond Debt Capital Lease Agreements Intergovernmental Contract
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 8,020 550 61 s

930 634 03 $ 5 509 206 <6

1 700 001 60

877 970 10

37 646 55

119026299

12 019 04

16 106 35

3< 628 37 1138631

s 8 910 539 75 S 1 030 301 61 $ 8 399 471 05

Lle.61LIIIES ~Q EUNQ EQUIIY
UABIL\JIES
Accounts Payable Salanes Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retain.ages Payable Due to Other Funds Deferred Revenue General Ob11gabon Bonds Payable Capital Lease Agreements Intergovernmental Contract Payable
Total uab11....
FUND EQUITY
Fund Balances Reserved
For Bus Replacement Funds For Debt SeMce
For GSBA Pro,ec! For Inventories
Food Donated Commod11:Jes
Purchased Food For Purpose of Bond Issue For SPLOSl' PrOjeci.S Unreserved Undes,gnated
Total Fund Equity

s 1 158 553 64 s
60 377 06
4 995 000 00

134 245 97 s
518 8<9 75

16 106 35 17 640 00

1173<698

18<,442 93
269 266 51 703 721 52

s 624767705 $

770 442 70 S 115743096

s

286 500 00

s

3< 628 37

11 386 31

$ 4 287 930 60

2 376 362 70
$ 2 662 862 70 s

213 8<4 23 259 858 91 $

2 954 109 49 7 242 040 09

Total L1abll1ties and Fund Equity

s $ 8 910 539 75

The notes to the general-purpose finanoal statements are &1n integral part of this statement

1 030 301 61 $

-2 -

8 399 471 05

DEBT
SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM
DEBT

TOTALS

{Memorandum Onl:t}

JUNE 30 2002

JUNE 30 2001

$

1 011 691 35

s 15 472 082 45 s 7 890 068 33

1,098 70

1 701 100 30

691 760 73

107,841 84

2 213 621 48

2 567 100 89

28 125 39

22 208 97

s

1108 313 60

34 628 37
1138631
1 108 313 60

10 923 30 10 898 25
527 946 03

19 351 686 40 2 317 914 59
85 000 00

19 351 686 40 2 317 914 59
85 000 00

11,152 053 97 3 518 205 02 160 000 00

s 1120631 89 S

s 22 862 914 59 $ 421323 858 89

2655116549

s

299 25

$

1,4n 541 79 s

2 064 568 44

579 226 81

426 137 51

4 995 000 00

4 995 000 00

9 227 59

269 266 51

316 354 43

703 721 52

155 871 89

12 019 04

28 125 39

22 208 97

s

20 460 000 00

134 986 98 20 460 000 00

39 599 75 11680000 00

2 317 914 59

2 317 914 59

3,518 205 02

85 000 00

85 000 00

160 000 00

s

12 318 29 S

22 862 914 59 s 31 050 783 59 s 23,387 173 60

$ 1 108 313 60
0 00
s 1 108 313 60

$

$

1,108 313 60

286 500 00

69,928 59 527,946 03 618 000 00

34 628 37 1138631 4 287 930 60
5 544 316 42 $ 11273075 30 $

10 923 30 10 898 25
1 330 685 50
595 610 22
3 163 991 89

$

1120631 89 S

s 22 862 914 59 S -12,323,858 89

26 551 165 49

-3 -

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

REVENUES
State Funds Federal Funds
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnstrucbonal Services Educallonel Media Servtees General Admimstrabon
School Adm1mstrat10n Business Adm1mstra1.Jon Maintenance and Operatton of Plant Student Transportation Servtees Food Services Operation Capital Outlay Debt Service Pnnapal Interest Paying Agent Fees
Total EJ(pendrtures
Excess of Revenues over (under) Expenditures
OT!::!ER FINANCING SOURCES (USES}
Accrued Interest on Bonds Sold Premium on Bonds Sold Proceeds from General Obhgahon Bonds
Par Value Capital Lesses Operabng Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other F1nancmg Uses
FUND BALANCE JULY 1
FoOO Inventory - Net Change m Penod Donated Commodlbes Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 37,665 257 36 $ 99 335 40
11 608 826 27 370 181 91
$ 49 743 600 94 $

1,307 348 60 4,144,64413
1 616 301 73
7 068 294 46

s 33,087,674 62 $
1,696 464 45 1,152,203 92 1 626,747 BO
621,13779 2,771,342 67
742,382 36 3 677,256 90 2,810,420 42
12,460 97
189,628 94 24,19712

3,225 652 42 40341467 64 335 60 166 429 99
28 445 34 311653110

s $ 48 213 917 98
$ 1,529,682 98 $

7.004 809 32 63 485 14

$

s

-1594030

$

-1594030 $

$

s 1,513,74268

1,14912002

1594030
1594030
79,425 44 156 240 34
23 705 07 488 06

FUND BALANCE JUNE 30

s 2 662 862 70 $ _ _,.25::,9"'8"'5_8.;;:9,;.,1

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

EXHIBIT ''B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

$ 3,281,025 21

$ 42,253,631 17 $ 36197,331 05

s 3,924172 00

2,350,441 82

4 243 979 53 17,883,440 09

3 534,296 06 16 328,19811

98 799 78

34 614 03

211989745

2,243 850 45

$

7 303 996 99 $

2,385,055 85 $ 66,500,948 24 $ 58.303 675 67

$

36 524 00

9,991 561 00 1,085 661 49 $
182,321 23
$ 11 296 067 72 $ $ -3 992.070 73 $

s $ 36,313,327 04

33 040,596 10

2,101,87912 1,216,539 72 1,626 747 80
787,567 78 2,771 342 67
778,906 36 3,677,256 90 2,638 865 76 3,116 53110 10,004,021 97

1846,66698 1060,62646 1556,40403
807,882 08 2 628,689 37
709,161 30 3 282,329 96 2,429,564 46 2,832,271 87 4 309,851 66

1,220,000 00 785 408 75 3 767 03
s 2 009 175 78
s 375 880 07

2 495 290 43 991,927 10 3 767 03
68.523 970 7B $
-2 023 022 54 $

2,117,215 72 1,010,180 79
2 640 14
57,634,080 92
669 594 75

$

$

98,30605

10 000, 000 00

-194 880 73
s 9,903 425 32 $

$

5911,354 59 $

1,330 685 50

9,606 77 $

9,606 77 98,306 05

194 880 73
s 204 487 50

10,000,000 00
s
210,821 03 -210 821 03
10,107,912 82 $

51700000 97 005 36 -97 005 36
517 000 00

580 367 57 $ 527,946 03

8,084,890 28 $ 3,163,991 89

1 186,594 75 2 003,797 83

23,705 07 488 06

-24 875 99 -1 524 70

$

7.242,04009 $

110831360 $ 11.27307530 $

3 163 991 89

-5 -

EFFINGHAM COUNIY BOARD OE EPUCAIION
COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES B1/DGET AND ACTUAL - (NON.GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002

EXHIBIT c;-

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrucbon Support SeMces Pupil Services
lrl"lpro'Jement of I ~ Ser-nces Educaltonal Mech.a Services
General Adm1mstrabon School Adm1n1straboo Bus1ness Adm1n1stration Mamtenance and Operation of Plant
Student Transportaton SeMces
Food Services Operation Capital Outlay Debt Service
Total Expendotures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Other Sources Other Uses
Total Other F1nanong Sources (Uses)
Excess of Revenues and Other F1nsnong Sources over (under) Expenditures and Otner Ftnancing Uses
FUND BALANCE JULY 1 2001
Food Inventory - Net Change in Penod Donated Commod11:Jes Ptm:hased Food

GENERAL FUND

BUDGET

ACTUAL

s 36 435 501 00 5 37 665 257 36
99 335 40 11,11350000 11 608 826 27
370 181 91
S 4754900100 S 49 743 600 94

s 32 330 996 00 $ 33,087 674 62

1 194,318 00 1685S..OO 1665472 00
545 614 00 3 011 439 00
457 559 00 3 601 881 00 2 773 594 00

1698464 45 1152 20392 1 626 747 80
621 137 79 2 771 342 67
742 382 36 3 677 256 90 2 610 420 42

282 584 00

12 460 97 213,826 06

$ 47,549 001 00 $ 48,213,~17 96

$

000 $ 1529682 98

$

15 940 30

s -15 940 30

$

s 0 00

1 513 742 68

1,325 445 42

1,14912002

FUND BALANCE JUNE 30 2002

S 1 325 445 42 S 2 662 862 70

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s s 2 575 606 00 1,307 348 60
3 751,495 00 4,144 644 13
250,000 00 1 616 301 73
s 6 577 301 00 $ 7,068,294 46

s $ 3 128 607 00 3,225 652 42

382 500 00 59,594 00

403 414 67 64 335 BO

149 360 00

166,429 99

7 240 00 2,850 000 00

28 445 34 3,116 53110

s $ 6 577 301 00 7,004,809 32

s

s 0 00

63 485 14

s 1594030

$ 1594030

s

s 0 00

79 425 44

244 843 38

156 240 34

23 705 07 488 06

S 244 843 38 S 2591858 91

The notes to the general-purpose fiNillooa\ statements ere an integral part of th1!! statement -6 -

HFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTFS ro 1 HE GENERAL-PURPOSE FINANCIAL STA1 IoMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Effingham County Board of Education (School D1stnct) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appointed by the Board The School D1stnct 1s organized as a separate legal entity and ha~ the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity Accordingly, the School D1stnct 1s a pnmary government and consists of all the organizations that compose its legal entity
FUND ACCOUNTING
The School Distnct uses fund~ and an account group to report on its financial pos1t1on and the results of its operations Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transact10ns related to certain governmental functions or activities. A fund 1s a separate accounting entity with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountab1hty for certain assets and liab1lit1es that are not recorded in the funds because they do not directly affect expendable available financial resources
General F1xcd Assets are recorded as expenditures in the vanous funds at the time of purchase A General Fixed A,sets Account Group 1s not presently maintaincd by the School Distnct To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types
Although "school activity accounts" are maintained at the ind1v1dual schools, neither the assets. liab1ht1es and fund equity. nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements To conform to generally accepted accounting principles. these account, should be recorded in the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1~tr1ct. in compliance with generally accepted accounting principles applicable to governmental umts, unless otherwise disclosed in these notes Funds and the account group presented in this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational activities Governmental Fund Types include
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for in another fund These transactions relate to resource, obtained and used for services provided by a board of education

- 7-

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNF 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceed~ of specific revenue sources (other than for major capital projects) that are legally restncted to expenditure~ for specified purposes These funds are received pnmarily from the Georgia Department of Educatmn and from the Federal government to accomphsh specific educatmnal obJectlves
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1s1tton or construction of maJor capital fac1littes
DEBT SERVICE FUND- the fund used to account for the accumulatton ofresources for, and the payment of. general long-term principal, interest and paying agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgatlon debt outstanding. capital lease obhgatlons and intergovernmental contracts
BASIS OF ACCOUNTING
The accounting and financial reporting treatment apphed to a fund is determined by its measurement focus All governmental funds are accounted for using a current financial resources measurement focus With this measurement focus, only current assets and current liabilit1es generally arc included on the balance sheet Operating statement~ of these funds present increases (1 e. revenue, and other financing ;ources) and decreases (1e , expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources
Liabiliues which are expected to be financed from available spendable resources are reported a~ hab1httes in the governmental funds Other hab1ht1es, which are not expected to be financed from available spendable resources. arc reported in the General Long-Term Debt Account Group
Governmental funds are accounted for using the modified accrual basis of accounting under which
Revenues are recognized when susceptible to accrual (1.c., when they become both measurable and available) "Measurable" means the amount of the transaction can be determined and "available" means eollecttble within the current penod or soon enough thereafter to be used to pay liab1ht1es of the current period The School Di,tnct considers receivables collected within sixty days after yearend to be available Property taxes, sales taxes and interest are considered to be susceptible to accrual Nonexchange transactmns, in which the School Distnct gives (or receives) value without directly receiving (or giving) equal value in exchange. include property taxes, local option sales taxes. intergovernmental grants and donatmns Revenue for property taxes 1s recognized en the fiscal year for which the taxes are leVIed Revenue from sales taxes 1s recognized in the fiscal year the resources are received or ,usceptlble to accrual Revenue from grants and donatmns is recognized in the fiscal year m which all ehgib1hty reqmremcnts have been satisfied
-8-

ErFINGHAM COUNTY BOARD OF EDUCATION

EX! IIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures arc generally recognized when the related fund liability 1s incurred
A departure from the above definitions 1s the accounting treatment afforded the final two payment~ 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 fi~cal year 2002. a substanual number of personnel of the School D1stnct were employed for a one hundred and nmety day penod begmning in August 2001 and ending in early June 2002 Personnel contracts for this employment penod specify that compensation be paid in twelve equal monthly payments beginmng in September 200 I and ending in August 2002 State grants to fund the State~ share of these contracts were disbursed from the Georgia Department of Educat10n to the School D1stnct m the same twelve months As of June 30, 2002. compcnsat10n 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 expenditure~ by the School D1stnct subsequent to June 30, 2002 Also. the State's port10n of the compensat10n paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30. 2002 Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30. 2001. were recorded in the year ended June 30. 2002 Generally accepted accounting pnnciplcs require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are rece1 ved or d1~burscd
BUDGET
The Effingham County Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and is based upon estimates of expenditures together with probable fundmg sources. There 1s no statutory prohibition regarding overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund, funct10n and obJect The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accounting pnnc1ples
The budget process begins when the School D1stnct's admin1stra11on prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once ma newspaper of general circulat10n in the locality At the next regular meeting of the Board after advertisement. the Board receive~ comments on the tentative budget, makes rev1s10ns as necessary and adopts a final ~hool budget This final budget 1s then submitted, in accordance with prov1s1ons of the Quahty Basic bducat10n Act, OCGA Section 20-2-167(c). to the Georgia Department of Educat10n. The Board may increase or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvestrncnt; with onginal matunt1es of three months or less from the date of acqu1s1110n in authonzed financial
-9-

ErFINGHAM COUNTY BOARD or EDUCATION

EXHIBIT "D"

NO fES TO THE GENFRAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY Or SIGNIFICANT ACCOUNTING POLICIES
instttuuon~ Georgia Law~ OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or insured Federal savings and loan a~<;0e1at10ns
INVESTMENTS
COMPOSITION OF JNVESTMEN1 S Investments made by the School D1stnct in nonparticipating interest-earning contracts (such as ceruficates ofdeposit) and repurchase agreements are reported at cost Partic1patmg mterest-earnmg contracts and money marl..et investments with a matunty at purchase of one year or less arc reported at amortized cost. Both part1cipatmg interest-earnmg contracts and money market investments with a matunty at purchase greater than one year are reported at fau value The Official Code ofGeorgia Annotated Sect10n 36-83-4 authonzes the School D1stnct to invest its funds and m selecting among options for investment or among m~titut1onal bids for deposits, the highest rate of return shall be the obJecUve, given equivalent cond1t1ons of safety and hqmdity. Funds may be invested in the following
(I) Obligations issued by the State of Georgia or by other states,
(2) Obhgahons issued by the Umted States government,
(3) Obhgat10ns fully insured or guaranteed by the Umted States government or a Umted States government agency,
(4) Obhgat10ns of any corporatton of the Umted 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) Obhgauons of other pohllcal subd1v1sions of the State of Georgia
RECEIVABLES
Receivable~ consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformation available Receivables are recorded when either the asset or revenue recogmt1on cntena has been met Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an a1!owance for uncollecuble receivables

- IO -

ErFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

"!OTES TO THE GENFRAL-PURPOSE FINANCIAL STATEMl:.NTS

JUNE 30, 2002

Note J SUMMARY OF SJGNIFJCANT ACCOUNTING POLICIES

PROPERTY TAXES

The Effingham County Board ofComm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on August 21. 2001 (levy date) Taxes were due on November 15. 2001 (hen date) Taxe~ collected withm the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002 The Effingham County Tax Comm1ss10ner b1lb and collects the property taxes for the School Distnct. withholds 2.5% oftaxe, collected as a fee for tax collecllon and remlls the balance oftaxes collected to the School D1stnct Property tax revenue~ dunng the fi~al year ended June 30. 2002 for maintenance and operallons amounted to $11,118.141 45 and for ,chool bonds amounted to $2,267.177 02

Tax millage rate, levied for the 2001 tax year (calendar year) for the Effingham County Board of Educat10n were a, follows (a mill equal~ $1 per thousand dollars of a,sessed value)

School Operallons School Bonds

13 300 mills 2 835 mill~
1_6_,J :15_ mII] S

SALES TA..XES

Special Purpose Local Opl!on Sales Tax revenue dunng the year amounted to $3.924.172.00 and 1s to be used for capital outlay for educat10nal purposes or debt service This sales tax was authonzed by local referendum and the ,ale~ ta, must be re-authorized at least every five years

INVENTORIES

FOOD INV!: NTORIES Inventories of donated food commodllies used in the preparallon of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods inventones arc reported on the Combined Balance Sheet at co,t (fir,t-in. fir,t-out) Donated food commod1t1e, arc recorded as revenue~ and cxpend11ures at the time commodity item, arc received Purchased foods inventoncs are recorded as expend!lures at the llme of purchase fhe inventones reported on the balance sheet for donated food commod111es and for purchased foods are equally offset by reservation, of fund balance which indicate, that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

GENERAL OBLIGATION BONDS

The School D1stnct 1s,ues general obhgat1on bonds to provide funds for the acqm,1110n and con,trm.,llon ofmaJor capital facihlles Bond premiums and discount,. a, well as issuance co~ts. are recogn17cd in the financial statement, dunng the year bonds arc issued Generd! obhgat1on bonds arc direct obhgat10ns and pledge the full faith and credit ofthe government The outstanding amount of these bonds 1s recorded in the General Long-1 erm Debt Account Group

- 11 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THf-, GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures 1rut1ally made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that 1s reimbursed
Operating transfers arc recorded for all interfund transactions other than reimbursements
MEMORANDUM ONLY - TOTAL COLUMNS
I otal columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial pos1t1on or results of operations in conformity with generally accepted accounting pnnc1plcs Neither are such data comparable to a consolidatlon Interfund eliminations have not been made in the aggrcgat10n of this data
Note 2 DEPOSITS AND INVESTMENTS
COi.LATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond. by guarantee of insurance, or by collateral The aggregate of the face value of such surety bond and the market value of secunties pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value ofthe secunues pledged to secure a pool of public funds shall he not less than 110 percent of the daily pool balance OCGA Section 45-8-11 (b) provides an officer holding public funds may. in his d1scret1on. waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following
( 1) Surety bond signed by a surety company duly qualified and authonzed to transact business wnhin the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporallon,
(3) Bonds, bills, notes, cerllficates of indebtedness or other direct obligatlons of the Umted States or of the State of Georgia.

- I2 -

EFFINGI 1AM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

(4 l Bonds, bills, notes. certificates of mdebtednes~ or other obligation, of the counties or mumc1pahues of the State of Georgia.

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

(6) lndustnal revenue bonds and bonds of development authonties created by the laws of the State of Georgia. and

(7) Bonds, bills, notes, certificates of indebtedness, or other obhgatlons of a subs1d1ary corporation of the Umted States government. which are fully guaranteed by the Umted States government both~ to pnnc1pal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank. the Federal Intermediate Credit Bank. the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal Nat10nal Mortgage Associat10n.

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $17.876.730 77. The amounts of the total bank balances are classified into three categories of credit nsk

Category I - Cash that 1s insured (e g. Federal depository insurance) or collaterahzed with securities held by the School D1stnct or by the School D1stnct's agent in the School D1stnct's name
Category 2 - Cash collateralized with secunlles held by the pledging financial ms11tut1on's trust department or agent in the School D1stnct's name
Category 3 - Uncollaterahzed deposits (This includes any bank balance that 1s collateral1zed with securities held by the pledging financial institution, or by its trust department or agent but not in the School D1stnct', name )

The School D1stnct's deposits are classified by risk category at June 30. 2002, as follows

Risi. Category

Bank Balance

$ 5.423,856.50

2

12,452.874.27

3

000

Iota!

$ l7,876 730,77

CATEGORIZA I ION OF INVCSTMENTS Investment, arc classified as to nsl.. by the three categones dcscnbed below

- 13 -

EFFINGHAM COUNTY BOARD or EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FfNANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

Category I - Insured or registered, or secunttes held by the School Dbtnct or the School District's agent m the School D1stnct's name
Category 2 - Umnsurcd or unregistered. With secunttcs held by the countcrparty's trust department or agent m the School Dtstnct's name.
Category 3 - Uninsured or unregistered. with secunttes held by the counterparty, or by its trust department or agent hut not m the School D1stnct's name

At June 30, 2002. the carrymg value of the School D1stnct's total mvestments was $1.701.100 30 which 1, matenally the same as fair value. The mvestments are classified as to nsk categones as follow~.

Jypc QI ln\lestmcnt

lnve,tmcnt Ponfollo

Account

s

L<x.,il (ul\emmi:nt Investment Pools

Total lmcstmenL.,

Risi,,. C;itcgonc,;; 2
000 $ 4 942 II $

Larrymg

I air

3

Amount

Value

qoo s 4 942 II s 5.369 11

1,696,158 19 I 696 158 19
s I WJ, l.QO 3ll s t,ZQl.~,z JO

The carrymg amounts shown above mcludes amounts mamtamed man mvestment pool by the State of Georgia. Office ofl reasury and Fiscal Services m which the School Dtstnct owns no tdenttfiable secunue, The mvestment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qutd1ty Portfolio) does not provide for mvestmcnt m denvattves or s1m1lar mvestments A descnptton of the Pnmary L1qu1d1ty Portfolio ts as follows

The Pnmary L1qu1d1ty Portfolio consists of Georgia Fund I, which ts a combmauon local and state government mvcstmcnt pool. and Fund 6 Georgia Fund I 1s a stable net asset value investment pool which follows Standard and Poor'~ critena for AAAm rated money market funds The pool is not registered with the Secunttes and Exchange Comm1ss10n as an mvestment company but does operate Georgia Fund I ma manner consistent With Rule 2a-7 of the Inve~tment Company Act of 1940 and 1s considered to be a 2a-7 like pool The pool's pnmary objective~ are ,afety of capital. mvestment mcome. liqutdtty and d1vers1fication while mamtainmg principal ($1 00 per share value). Net asset value 1~ calculated weekly lo ensure stability The pool dtstnbutes eammgs (net of management fee~) on a monthly basts and values participant's ,hare~ sold and redeemed ba,ed on$ I 00 per share Pooled cash and ca~h equivalents and investments are reported at cost which approximates fa,r value The pool does not 1,sue any legally bmdmg guarantees to support the value of the shares Part1c1patton m the pool is voluntary and deposits consist of funds from local governments. operatmg and trust fund~ of Georgia's state agencies. colleges and un1vers1ttes. and current operating funds ot the State of Georgia's General Fund

- 14 -

EFFINGHAM COUNTY BOARD OF EDUCATION

EXHIRIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS AND INVESTMENTS

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments ~uch a~ U S Treasury obligation~, secunlles issued or guaranteed as to pnnc1pal and interest by the U S Government or any of ,ts agencies or instrumentahtles, banker's acceptances and repurchase agreements The weighted average maturity of Georgia Fund I may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years The average inve,tment durauon for Fund 6 on June 30, 2002. was 0 75 years

Note 3 NON-MONETARY fRANSACTIONS

The School District receives food commod111es from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commodities are recorded at their Federally assigned value Sec Note 1 - Inventories

Note 4 INTERFUND ASSETS AND LIABILI I IES

Due to and due from other funds are recorded for interfund receivables and payables which anse from interfund transactions The following analysis summarizes the status of all interfund transactwns of the School District at June 30. 2002

Due From Other Funds

Due To Other Funds

General Fund Special Revenue Fund
School Food Service Fund Debt Service Fund

$ 12.019 04 $ 16,106 35

16,106.35

12.019 04

$ 28. l 2i.3,2 $ 28,125.39

Note 5 RISK MANAGEMI-.NT

The School D1smct 1s expo,ed to vanous risks of loss related to torts, theft of, damage to, and dcstruct10n of assets, errors or om1ss10ns. Job related illness or inJunes to employees; acts of God and unemployment compensation

The School District has obtained commercial insurance for nsk ofloss associated with torts. assets. errors or om1ss1ons,Job related illness or inJuries to employees and acts of God. The School D1stnct has neither s1gmficantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School D1stnct's in~urance coverage in any of the past three years

The School D1stnct i, self-in~ured with regard to unemployment compensat10n claims The School Oi,tnct accounts for claims Within the General Fund with expenditure and hab1hty being reported when 11 ,~ probable that a loss has occurred, and the amount of that loss can be reasonably estimated

- 15 -

EI-FINGHAM COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STA fEMENTS

JUNE 30, 2002

Note 5 RISK MANAGEMENT

Changes m the unemployment compensation claims hab1hty during the last two fiscal years are as follows

2001 2002

Begmnmg of Year Liab1hty

Claims and Changes m Esllmates

$

5 305 34 $

s 5 654 00

$

2 261 00 $

0 00 $

Claims Paid

End of Year L1ab1htv

8 698 34 $ 2 261 00 $

2,:?61 00 0 00

The School District has purchased surety bonds to provide add1tmnal msurance coverage as follows

Pos1tmn Covered

Amount

Superintendent Each Employee

$ 100.000 00 $ 50,000 00

Note 6 GENERAL LONG-TERM DEBT

CAPITAL LEASES The Effingham County Board of Education entered mto an agreement on October I. 1994, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school facihlies Under the terms of the lease agreement. the Board will make semiannual payments through January 15, 2005 This lease mcludes an annual renewal clause

The Effingham County Board ofEducation has entered mto lease agreements for buses. eqmpment and an mtergovernmental contract with the City of Spnngfield to finance a sanitary sewer system to
serve the schoob These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future mm1mum lease payments as of the
date of mceptmn.

GENERAL OBLJGATION DEBT OUTSTANDING General Obhgatmn Bonds currently outstandmg are as follows

Purpose

Interest Rates

Amount

General Government - Senes 1994 General Government - Senes 200 IA General Government - QZAB Sencs 2001B

4 20%- 6 25% 3.25%-4 00% 000%

$ I 0.460,000 00 5,800,000 00 4,200,000.00
$20.460.000,00

- 16 -

EFFINGHAM COUNTY BOA RO OF EDUCATION

EXIIIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIALS rATEMENTS

JUNE 30, 2002

Note 6 GENERAL LONG-TERM DEBT

The changes in General Long-Tenn Debt dunng the fiscal year ended June 30. 2002, were as follows

U,11,mcc Jul), I 2001
Add1t1ons GO Bonds
L>u:fuCIIOn\
Debt Retired
Balance June 30 2002

Lap1t::il
I.cases
$3,518 205 02

lntergO\c:mmental

C..cncntl

Contracl

Obl1gat1on

Trust Ct..n1ficatc"

Bonds

lotal

s 160,000 00 SI 1,680 000 00 SI 5,358 205 02

10 000 000 00 I0,000 000 00

I 200 290 43
S2.J 17,2),4,.59

75,000 IKI

I 220 000,00

2,495,290.43

S~Q\_)Q.l)Q S20,460,00:P~ $22.862,9 I4.52

At June 30. 2002, payments due by fiscal year which includes pnnc1pal and interest for these items are as follows

l-1~al Year fnded June 30
2003 2004 2005 2006 2007 2008 - 2012 2013-2015
rota) Pnnc1p.il and Interest
Ocdul.l Imputed
Interest
Nt..1. Present Value orruture >v1m1mum
I ea...,e Pa)-ment,;;
Note 7 SHORT-TERM DEBT

Capnal Leass,
s 940 560 80
822 793 76 820 531 26

Intergovernmental
Contract
Tru~1 Ccrt1ficatc:s

General Obligat1on
Bond,

s 91,885 00 S 2,096,857 50
l 922,145 00
3,908 862 50 3,898 668 75
I 901,337 50 3,726,875 00
4,200,000 00

Total llcht
S 3 129 303 30 4 744 938 76 4 729191 76 3 898 008 75 I 901 317 50 3,726,875 OU 4,200 000 QO

s S2 583 885 82

9188500 S2.1J!~4.746 25 $26 ll0..517 Q1

2~5 271.~l

6 885 00

S2,J IL21:P9 S 85,QOll Wl

The School D1~tnct issues tax ant1e1pallon notes and obtains temporary loans in advance ofproperty tax collection,. depositing the proceeds m its General rund This short-term debt 1s to provide ca~h for operatwns until property tax collcct10ns arc received by the School D1stnct Article IX, Section V. Paragraph V of the Conslltut10n ofthe State ofGeorgia hm1ts the aggregate amount ofshort-lenn debt to 75 percent of the total gross mcome from taxe, collected in the preceding year and requires all ,hort-tenn debt to be repaid no later than December 31 of the calendar year in which the debt was incurred

- I7 -

EH ING HAM COUNTY ROA RD OF FDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE~ INANCIAL STATEME'sl <;

JUNE 30, 2002

Note 7 SHORT-TERM DEBT

Tax Ant1c1pa11on Notes

Begmnmg Balanc~

Add1t1ons

Payments

Endmg Balance

Note 8 ON-BEHALF PAYMENTS

1 he School D1~tnct has recognized revenues and expenditures in the amount of $609.703 59 lor
health in~urance and retirement contnbut10ns paid on the School D1stnct's bc.:halfby the following State Agencies

Georgia IJepartment of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Cert1fied Personnel In the amount of $523,952 59

Office of rreasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Reurement (PSERS) Employer's Cost In the amount of $85,751 00

Note 9 SIGNIFICANT COMMITMEN rs

The following 1s an analysis of s1gmficant outstanding construct10n or renovation contracts executed by the School District as of June 30, 2002, together with funding available

Unearned Executed Contracts

Funding ,\va1lable From State

03G/02S-65 l-Ol 8 and SA 01S-651-015 03G/02S-65 l-019 and 02/01 S-651-013

$ 7,480,940 47 $2,586,160 71 1,243,831 48 1,259,015 00

$ B,724.771 25 $ 3.845,.175,.ll
I he amounts described in th,~ note are not reflected in the general-purpose financial statemi:nl~

Note IO CONTfNGENT LIABILI f'IES

Amounts received or receivable pnnc1pally from the Federal government are subject to audit and review by grantor agencies This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms The School D1stnct believes that such d1sallowances. 1f any, will be 1mmatenal to its overall financial pos1110n

- 18 -

EFFINGHAM COUNTY BOARD or EDUCATION

EXHIBI r "D"

NOl ES 10 THE GENl:.RAL-PURPOSE FINANCIAL STATFMENl S

JUNE 30. 2002

Note 10. CONTINGENT LIABILITIES

The School D1stnct is a defendant in vanous legal proceedings pertainmg to matters incidental to the performance of routine School D1stnct operallons The ulllmate d1spos1llon ofthese proceedings 1s not presently determinable, but 1s not believed to be material to the general-purpose financial statements

Note 11 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substanually all teachers. admin1strat1ve and clencal personnel employed by local school district~ are covered by the Teachers Rellrement System of Georgia ('fRS), which 1s a cost-shanng mulllple employer defined benefit pension plan TRS provide~ service reurement, d1sabihty rellrement and survivors benefits for Its members in accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who are covered by TRS are reqmred by State statute to contribute 5% ofthe1r gros~ earnings to TRS The School D1stnct makes monthly employer contnbullons to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary The reqmred employer contnbut1on rate 1s 9 24% and employer contnbut10ns for the current !heal year and the preceding two fiscal years are as follows

Fiscal Year

Percentage Contnbuted

Reqmred Contnbuuon

2002 2001 2000

100% 100% 100%

$2,981,411.76 $ 3,316,988.35 $ 3,142,296 36

- 19 -

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

ASSETS
Cash and Cash Equrvalents
Accounts Recervable
Due from Other Funds
lnventones Food Donated Commod11tes Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

s

401,007 53 $

112,049 03

16,10635

34,628 37 1138631

Total Assets

$

463,12s 56 s_~_1_12_04"-0_0_3

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total L1ab1hbes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes1gnated
Total Fund Equrty
Total L1ablhlles and Fund Equity
See notes to the general-purpose financial statements
- 20 -

$

40,465 69 $

162,803 96

21,642 43 90,406 60

$

203,269 65 $

11204903

s

34,628 37

11,38631

213 844 23 $

0 00

$

259,858 91 $

000

$

453 12s 56 s _ _ _11_2__04_s.0.=>3 1

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

417,577 47 $

930,634 03 $

860,507 30

37,546 55

37,546 55

16,10635

22,208 97

34,628 37 1138631

10,923 30 10,898 25

$

455 124 02 $

$

72,137 85 $

134,245 97 $

273,332 63

265,63919

518,849 75

426,137 51

9,227 59

117 346 98

117 346 98

39 599 75

$

455,124 02 $

770442 70 $

748 297 48

$

$ _ _ _ _-=0..:00;...

$

000 $

34,628 37 S 11,386 31

10,923 30 10,898 25

21364423

134 418 79

259 858 91 $ _ _--'1-=56=240-=-"-34-'-

$

455 124 02 $ 1:030,30161 $ _ _ _904-=5=3=7""8._2

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil SeMces Improvement of Instructional SeMces General Adm1rnstrat1on Student Transportabon Services Food Services Operation
Debt Service Pnncipal
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated CommodrtJes Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

240,544 00 $

1,066,804 60

1339,11081

1 616 301 73

$ 3,195,956 54 $ 1,066,804 60

$
$ 3,116,531 10

905,596 26
95,53911
40,614 78 25,898 00

$ 3116 53110 $ 1 067 648 15

$

79,425 44 $

-843 55

$

79,42544 $

156,240 34

23,705 07 488 06

84355
000 000

FUND BALANCE JUNE 30

$

259 858 91 $~~=~""0"'00..,

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

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30 2001

$

1,307,348 60 $

1,236,248 56

$ 2,805,533 32

4,144,644 13

3,448,162 27

1616301 73

1,566,813 05

$

2,805,533 32 $

7 068 294 46 $

6,249,223 88

$

2,320,056 16 $

3,225,652 42 $

2,803,366 73

307,875 56 64,335 80 125,815 21 2,547 34

403,414 67 64,335 80
166,429 99 28,445 34
3,116,531 10

276,380 32 44,251 62
224,587 01 28,185 99
2,832,271 87

3466 00

$

2,820,630 07 $

7,004,809 32 $

6,212,509 54

$

-15,096 75 $

63,485 14 $

36,714 34

15 096 75

15 940 30

97,005 36

$

0 00 $

79,425-44 $

133,719 70

000

156,240 34

48,921 33

23,705 07 48806

-24,875 99 -1 524 70

$

000 S

259 0sa 91 s_ _-=155=2=4=0=34,..

- 23 -

EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002

ASSETS Cash and Cash Equivalents Investments Accounts Rece,vable

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

S 4.287.930 60 $

615,914 77

506 485 29

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES Cash Overdraft Accounts Payable Contracts Payable Reta1nages Payable Total Liab1lllles
FUND EQUITY Fund Balances Reserved
For Purposes of Bond Issue
For SPLOST Projects Unreserved
Undes1gnated
Total Fund Equrty
Total L1abllrtJes and Fund Equity

$ 4.2e11eJo oo s _ _1"'.1""22_1._4_00...,_06a..

$

149.412 03

269,266 51

703 721 52

$ _ _1.,1~2=2~,400=~06=-

$ 4,287,930 60
ooo s____"'"o"'"oo=-
s 4,287,930 60 $ _ _ _ _~0~00=-
s 412a11030 60 s_ _1_1.1"'22=14-aao.o._os_

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

605,361 09 $

1,700,001 60

683 77170

LOTTERY PROJECT

TOTALS

JUNE 30, 2002

JUNE 30, 2001

0 00 $

5,509,206 46 $

165,296 20

1,700,001 60

687,852 36

1,190,262 99

1,383,211 30

$ 2,989,14039 $

0 00 $

8,399,471 05 $

2,236,359 86

$

35,030 90

$

35 030 90

$

$

184,442 93

269,266 51

703 721 52

$

115743096 $

125,362 53 308,085 51 316,354 43 155 871 89
905 674 36

$ 2,954,109 49

$ 4,287,930 60

2,954,109 49 $

1,330,685 50

ooo s____,,o_,o"'-o

000

000

$ 295410949 $

0 00 $

7,242,040 09 $

1,330,685 50

$ 2,989,14039 $

000 $

8,399,471 05 $

2,236,359 86

- 25 -

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

REVENUES
Stale Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Adm1rnstratIon
Capital Outlay Salanes Employee Benefrts Land and Land Improvements Building and Budding Improvements Equipment
Debt Service Pnncipal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES\
Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

3,024.328 21

$

86,328 05

$

86,328 05 $

3,024,328 21

$

36,524 00

$

409,740 22

8,134,353 20

425,661 49 19 133 71

$

36,524 00 $

8,988,888 62

$

49 804 05 $

-5,964,560 41

$

98,306 05

10,000,000 00

$ -5,860, 179 50

$ 4,238,126 55 $

5,964,560 41 5,964,560 41

$ 4,287,930 60 $ 000

000 000

FUND BALANCE JUNE 30
See notes to the general-purpose finanaal statements - 26 -

$ 41287193060 $-----0.::00.:;.

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

$

3,924,172 00

1247173

$

3,936,643 73 $

256,697 00 $ 256,697 00 $

3,281,025 21 $ 3,924, 172 00
98 799 78
7,303,996 99 $

1,595,540 68 3,689, 173 65
75410 35
5,360, 124 68

$

306,73940 $

513,426 12

660000 00 163 187 52

$

1,643,353 04 $

$

2,293,290 69 $

$

36,524 00

$

627,302 06

409,740 22 9,068,394 66
513,426 12

1,085,661 49 182,321 23

627,302 06 $ 11,296,067 72 $

-370,605 06 $ -3,992,070 73 $

64,300 22 14,160 66 518,000 00 3,377,698 21 204,557 11
716,338 51 226,926 73
5 121 981 44
238 143 24

$

$

-669 866 70

$

-669,866 70 $

$

1,623,423 99 $

1,330,685 50

$

98,306 05

370,605 06

10,000,000 00 $
6,335,165 47 -6,530,046 20

370 605 06 $

9,903,425 32 $

517,000 00 1,321,467 00 -1,321,467 00
517 000 00

0 00 $ 0 00

5,911,354 59 $ 1,330,685 50

755,143 24 575,542 26

$

295410949 $

000 $

7,242,040 09 $

1,330,685 50

- 27 -

EFFINGHAM COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 2002

EXHIBIT"!"

~ Cash and Gash Eqmvalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30. 2001

s s 909673 35

s s 102 018 00

1 011691 35

423,680 38

1098 70

109870

3908 37

107 841 84

107 841 84

100 357 28

Total Assets

S 101861389 S

102 018 00 S 1,1201631 89 S_..,:5::2.:,7"'94=6.::0;:..3

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Due To Other Funds
Total L1ab1llbes
FUND EQUITY
Fund Balances Reserved For Debt SeMce Unreserved Undesrgnated
Total Fund Eqwty

s s 12 019 04 s s 12 019 04

s 29925 s 29925

299 25 12 019 04
12 318 29

s s 1,006 594 85
000
s $ 1006594 85

s 101 718 75

1 108 313 60 !

000
s 101 718 75

000 1.10831360 !

527,946 03 0 00
527 948 03

Total L1ab1trttes and Fund Equrty

s s 110181613 89

s s___ 10201800

112063189

5a;2,..1.9..49=0.,3._

See notes to the general-purpose finane1al statements

28

EFFINGHAM COUNTY BOARD OF EDUCATION
COMBINING STATEMENT OF REVENUES EXPENDlTURES AND CHANGES 1N FUND BALANCES DEBT SERVICE FUND
YEAR ENDED JUNE 30 2002

EXHIBIT"J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30. 2001

REVENUES
Taxes
Other Funds
T01al Revenues

$ 2 350,1 82 $ 34 614 03
$ 2,385,055 85 $

0 00 $ 2 350,1 82 $ 2 122 695 73

34 614 OJ

77 957 87

0 00 $ 2.385,055 85 $ 2 200 653 60

EXPENDITURES

Debt Service Pnnapal Interest Paying Agent Fees
Total Expendllures
Excess of Revenues over (under) Expenchtures

$ 1 220 000 00 683 690 00 $ 2 717 03
$ 1 906 407 03 $
s 478 848 82 $

$ 101 718 75
1 050 00

1,220 000 00 $ 785,408 75 3 767 OJ

1,170,000 00 743,945 00 2 640 14

102.768 75 $ 2 OOll 175 78 $ 1 916 585 14

-102 768 75 $ 375 880 07 $ 284 068 46

OTHER FINANCING SOURCES (USESl
Acaued Interest on Bonds SOid Operal.Jng Transfers In
Total Other Rnanong Sources (Uses)

$

9,606 77 $

9 606 77

194.880 73

194 880 73

$

204 467 50 $ 204 467 50

Excess of Revenues and Other Financing Soufces over (under) Expenditures and Other Ftnancmg Uses
FUND BALANCE JULY 1

$ 478,646 82 $ 527 946 03

101,718 75 $ 0 00

580 367 57 $ 527 946 03

284 068 46 243 877 57

FUND BALANCE JUNE 30

$ 1,00659485 $

10111515 s 11108131380 s ___s2_1,.94..,_6_o_3

See notes to the general-purpose finanoal statements

- 29 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
l'.goculture U S Depanmenl o1 Direct Secondary l'.gocultural Educallon GranlS
Chrld Nutrtbon Cluster Pass-Through From Georg,a Department of Edocahon Food and Nutrtbon Program Food Services School Breakfast Program Nallonal Schc)oj Lcnch Program
Total Ch1ICI Nutntlon Cluster
Other Programs Pass-Through From Georgia Depanment of Education Food and NutrJbOn Program Food DISITil>ullon Program { 1)
T01al U S Department of l'.gnculture
Education U S Departmenl of Special Educabon Cluster Pass-Through From Georgia Department of EdlK:abOn lndMduals wrth Oisab!llbes Educabon Act Part B - SpeaaJ Educa1'0ll Flow Through Presdlool Capacity Budding lmprovemenl
Total Special Educaoon Cluster
Other Programs Pass-Through From Armstrong Atla.nbe State Un1Versrty HIie II Teacher Quality Enhancement Grants Programs Pass-Through From Georgia Department of Educatlon Comprehensive Sdlool Reform Demonstration Prt)feci: Elementary and Secondary Educabon Act Tltlel Even Stan GranlS lo Local Edocallonal Agencies Tille II El&eflhower Profes&100al Development Tlfle\11 Technology Literacy Challenge Fund Grants Title~ lnnovabve EdocabOn Program Strat8Ql&S Class Size Reducbon vocatkmal EducatJon - BaSIC Grants to States High School Program Ba:51cGrant
Total U S Department of EducalK>n

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 226

$

7 000 00 $

7 000 00

10 553 10 555

NIA $ 197 290 87

(21

NIA

950 508 35 $ 2 925 219 51 (4)

s 1 147 799 22 s

2 925.219 51

10 550

N/1'.

$ 191 311 59 $

191 311 59

$ 1,34611081 $ 3 123 531 10

84 027 84 173 84 027

NIA

s 823,512 76 $

NIA

72 881 00

NIA

32 376 00

s 928169 76 s

823 512 76 74 890 84 (4) 32 376 00
930,TT9 60

84 336 84 332
84 213 84 010 84 281 84 318 84 298 84 340
84 048

NIA

56,927 49

56 927 49

NIA

55 827 00

50,035 71 (4)

NIA

310,000 00

31038562 (4)

NIA

1,009 39911

100939911

NIA

26 61816

26 618 76

NIA

11451120

114 51120

NIA

43 028 00

46 460 08 (4)

NIA

180 664 00

185 536 90 (4)

NIA

79 788 00

79 975 60 (4)

s $ 2 805 533 32

2 820 630 07

30-

EFFINGHAM COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 3Q 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense U S Department of Direcl Depanment of the Air Force R O T C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

s 92 335 40

(3)

Total Federal Financial Assistance

s 243 979 53 s ___5 _9_44_1_s_1_11_

NIA= Not Available
Noten to the Schedule of Exoend1tures gf Federal Awards
(1) The lllllOUfll shown for the Food Dlstnbu11on Program iepresents the Federally assigned VBlue of nonmonetal'j
assrstence for donated commodrtles reG8fV8d and/or con&Umed by the system dl.rtng the o.rrent fiscal year (2) Expenditures for the School Breakfast Program were not maintained separately end ere included In the 2002
NatJonol School Lunch Program (3) Expenditures on this program were not maintained by fund source (4) Expenditures tor this program include State, and /or Other Funds

Major Programs are 1denbfied by an asterisk (j in front of the CFDA number

The School Dlstnd did not provide Federal Assistance to any Subreclpl8flt
The accompanymg schedule of expeodrtures of Federal awards indudes the Federal grant actrvity of the Effingham County Board of Education and is presented on the modified accrual ba&1s of accounting whteh IS the baSIS of accountng used m the presentaOon of the general-purpose finanaal statements

See notes to the general-purpose finanaal statements

- 31 -

EFFINGHAM COUNTY BOARP OF EPUCAT!ON SCHEDULE OF STATE REVENUE
YEAR ENPEP JUNE 30 2002

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Corrmunrty Affairs Georgie Department of Governor's Emergency Funds Local Community Grants
Educabon Georgia Department of Ouahty Basoc Educobon Direct lnatruc11onal Cost Kindefgarten Program Kindergarten Program - Earty lntervenuon Program Pnrnary Grades (1-3) Program Pnmary Grades - Earty lntervenbon (1-3) Program Upper Elementary Grades (4'-5) Program Upper Elementary Graoes Earty 1mervenbOn (4-5) Program Middle SchoOI (6-8) Program HIIJh School General EdUCclOOf'l (9-12) Program Vocabonal Laboratory (9-12) Program Students with D1sabil1bes Category I Category II Category Ill Cstego,y IV Category V G1nect Student - category VI Remedaal Educ:abon Program Attemabve Educa110n Program Eng"5h Speakers of Olher Languages (ESOL) 20 Days AddrtJOnal lnstrucbon Mecha Center Program Staff and Profe$S101l8.1 Development Indirect Cost Categoncal Grants Pupil Transportabon Regular Bus Re~menl Nursing Services Pnndpal Supplements Vocabona1 SupeMSOB Educabon Equalization Funding Grant Food Serv,ces Vocallonal Education Other State Programs Hearth Insurance Mentor Tead'lers Post Secondary Opbons Preschool Handicapped Program Statewide After School (4-8) Program Statewtde Reading (K-3) Program Lottery Programs AsSlstrve Techoology Computers 1n the Classroom Excep1:tonal Growth-Caprtal Outlay
Georgie State Financing and Investment Comm1SS1011
Reimbursement on Construcbon Profeds
Offlc:e of School Readiness Pre-Kmdergarten Program
Office of Treasury and Fiscal Sel"IIC8S Publlc School Employees Retrremenl

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

s

20 000 00

11500000

s

20 000 00

11500000

1629407 00 754 476 00
4 285 169 00 1420263 00 2 169 356 00
974 301 00 4 622,264 00 3-430,723 00 1698145 00
15811600 781 043 00 1848,63800 491 087 00
7129500 449 058 00
6171900 352 214 00
3161400 237 866 00 n4 30200 15120200 4 730 653 00

127583800 347 735 00 174 497 00
35 512 00 71 "430 00 3 261 571 00
s
353 817 00

240,544 00

523 952 59 2142000 3 6e3 00 92 519 00 88 206 97 71 437 80

14 959 00 206 300 00
s

256 897 00

1629407 00 754 476 00
428516900 1420,28300 2,169 358 00
974 301 00 4 622 264 00 3 430 723 00
1e98145 oo
15811600 78104300 1,648,638 00 491 087 00
7129500 449 056 00
6171900 352 214 00
31 614 00 237 868 00 774 302 00 15120200 4 730653 00
127683600 347 735 00 174 497 00 35 512 00 7143000
3 :2e1 571 00 2405-44 00 353 817 00
523 952 59 21 420 00 3 663 00 92 519 00 88 206 97 71 4'37 80
14 959 00 206 300 00 258 697 00

85 751 00

3 024 328 21 845,545 60

3,024,328 21 845 545 80 85 751 00

S 37 665 257 36 S 1 307 348 60 S 3 281 025 21 S 42 253 631 17

See notes to the general purpose frnenoal statements - 32

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

SCHEDULE ~y

PROJECT
Payments as reQutred under the
Pubhc Facll!bes Master Lease ot the
Ebenezer Elementary School u, order to taci1Jta1e the purchase of said fac:alrty

The construction remodeling fl.a'n:ishlng and eqU1ppmg of vanous SChools and e1hlebe facllrtlea Including acquh1ng necessary technology

The constn.Jcbng equippcr1Q !nd fumlSl'lu,g of a new elementary ,chool lO replace the present Spnngfield Central Elementary School a new
elementary school to replace the present Martow
Elementary School new dassroom Wings at Guyton and Sand HIii elementary &dlool.s and Ebenezer Middle School a new gymnasium and media center at Rll'\COO Elementary School, a new band room at South Effingham Middle

School -

physic.II educabonlsports

facllrtles at mlddle and high schools a new

m>d<lle school to ,eplace the present Effingham

County Middle School repiaclng aged roofs

and heabng/air concllbonlng unrts e11 noceuary

al all school d1stnct bu1k:l1ngs renovating/

rek>catng furrush1ng and equipping Atternatrve

School anstallmg air condrbonang units an

gymnasioo,s at Ebenezer Guyton Marlow and

Sand HLll elementary SChoolS and at South

Effingham Middle School installing addtbona1

playground equipment at all eiementary schools

renovating the Board of Educabon's Bus Shop,

installing bus washing equrpment replaang

maintenance veti1ctes and purc:haS1ng new

buses constructing an access road behind

Effingham County Plldle School renovabng and

mocl1fylng to the Board of Education's central

offices In Spmgfield purchasmg new textbooks

and instructK>nal equipment including band and

vocabonal eqU1pmerrt. 1n11talhng storage bt.nlchngs

at all llChools purdlasmg land for Effingham

County School DlStnCt operabona Including future

school srtes adding to remodeling renovatmg

trrq:WtMllQ and eQIJIPPlnV eX1Sting educal.lOnal

bUlktlngs propert!H and f8Clllbes of the school

dIstnct, acquInng any necessary personal end

real property and equipment, l:nciudlng computeB

and related technolOIJ'f copters energy management

systems, heatmg and a c:ondlUonmg systems,

hghbrlg tenang and paving sea.mty and safety

equipment and similar equipment at all Effingham

County Dl11tnct school5 inciuding Ebenezer

Elementary Effingham County High Effingham

County MlddJe Guyton Elementary, Marlow

Elementary Rincon Elementary Sand H1U

Elementary South Effingham Elementary South

Effingham Htgh, South Effingham Middle and

Spnngfield Centrat Elementary

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED
COST(2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

s s s <I 874 000 00

s 6 428 301 27

823 167 52

3 139 901 27 Ongoaig

10 126,000 00 16,717 268 42

1 746 729 22 12 257 282 37 Completed

35 000 000 00 3Q 095 917 00

6 669 526 98

Ong01ng

$ 501000,000 00 $ 62 2411-486 69 S 1125954372 $ 1539718364
( t) The School OmllCt's onganal cost estlmate as apeafled in the resotutJon calling tor the IIT1!X)Srbon of the Local Opt.Jon Sales Tax
(2) The School DIStnCt's current esbmate of total oost o, each prqect Includes all COllt from p.rqect rncepbon to complebon
(3) The Voters of Effingham County approved the lmposrtion of a 1% sales tax to fund the above Protedl Amounts expended for ttlese prOfeds may include sales tax proceed!, state local property
taxes and/or other funds over the life ot the pfOjects
See notes to the general-purpose final"ICIBI statements
- 33-

EFFINGHAM COUNTY BOARD OF EDUCATION
GENERAL FUND - OUALIJY BASIC EDUCATION PROGRAM IOBEl ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE""

DESCRIPTION
Oneel \nstrucbona1 Programs Klnde,varten Program Kndergarten Program-Early ln1ervenbo11 Program Pnmery Grades (1-3) Program Pnmary Grad..-Eerty lnleMtnbOn (1-3) Program Upper Elementary Grades ( -5) Program Upper Elementary Gra<les-Eerty lnteM!nbon ( -5) Program Middle Grades (6-8) Program Middle School (6--8) Program H,gh School General EducabOn (9-12) Program Vocatonal Lal>Oratory (9-12) Program Studen1s With IJlsablhbeS Ce1egoryl Cmegoryll Ce1egory Ill
ca1egor;rv
Ce10g0ry V Gifted Student - CalegOIY VI Remedial Educabon Program Al1ema11ve Educa111,n Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and ProfesalOllal Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

s

s s 1,809,635 00

1 710,306 31

s 52,903 89

1,783 210 20

837,928 00

920 350 10

115 25

920 465 35

4 759,1 5 00

921,483 98

208 79 O

5 130 233 38

1 577,357 00

1,808,45 90

1 808 5 90

2 08,11500

2 951,1 9 71

107 691 92

3 058,841 63

1,083 259 00
5 133526 00 3 610 191 00 188597500 3 no,1 2 oo
98,ntiOO
68 56 00 391 172 00
3511100

64 011 73 9 125 95
5,009 108 10 5 25 306 25 1 12 908 06
286,619 21 859 650 21 2 292 52960
83 95 06
331,58215 108 714 46 8136211
17 793 37

268 305 04 881 25
381,211 53 187, 59 12
3,959 17 17,732 04 5,650 53 8 951 71
8 6
11,07 03
2 00 5,820 07 1 120 60

6401173 317 30 99 5,013 969 35 5,835 517 78 1600,36718
290 578 38 877 382 25 2,338,180 13
92 905 77 8 6
3 2 656 18 109,138 46 467 18218
18 913 97

s

s s s 28 019 26 00

29 1 3, 10 26

1 306,038 01

30 49 46 27

659946 00 167 926 00

1 033,705 67 10184210

577,984 0 83,309 3

161189007 184 951 4

TOTAL QBE FORMULA FUNDS

s

2904730000 S 30278,75803 S 1,967,33175 S 3224608978

(1) Comprised of State Funds plus Local Five MrD Share

See notes to the general-purpose financial statemems

-3-

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

SCHEDULE "5"

SITE
South Effingham Elementary School Guyton Elementary School Spnngfield Central Elementary School Sandhill Elementary School South Effingham High School Effingham County Middle School Ebenezer Elementary School South Effingham Middle School Effingham County High School Marlow Elementary School Rincon Elementary School
The M Alternative School Program
Central Office (Alternative Educabon Program)
TOTAL
(1) Compnsed of State Funds plus Local F,ve Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,296,187 00 $

2,424,026 76

2,029,460 00

2,411,98299

2,450,596 00

2,597,467 98

1,674,651 00

1,837,498 22

3,136,735 00

3,724,589 96

3,366,147 00

3,409,183 50

2,131,260 00

2,133,372 29

2,987,046 00

3070,490 59

3,756,882 00

4,283,070 15

1,708,285 00

1,776,436 68

2,091,007 00

2,097,208 90

498,632 72

391,172 00

185 487 53

$

28,019,428 00 $ 30 449,448 27

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORl S

RllSSH I W. H1,10N
STATF AIJDITC)ll
(404\ 656-21,-1

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.1::,hmg1nn Street SW SmlL' l \4 AllJntJ Georg1..1 10114-8400
July 3, 2003

Honorable Sonny Perdue, Governor Member, of the General A,,cmbly Members of the State Board of Education
and Superintendent and Members of the Effingham County Board of Education
REPORl 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 Ellingham County Board of l:ducauon as ofand for the year ended June 30. 2002, and have issued our repon thereon dated July 3. 2003 I his repon was qualified for various depanures from generally accepted accounting principles, as 1dent1fied in the auditor', repon on the general-purpose financial ,tatements We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial aud1L, contained in Government Auditing Standards. 1,sued by the Comptroller General of the United States
Compliance
As pan of obtaining reasonable assurance about whether Ef!ingham County Board of Educallon\ financial statements an: fn:e of matcnal nusstatement, we perfomied tests of lls compliance with cenain prov1smns oflaws, regulatmns, contract, and grants, noncompliance with which could have a direct and material effect on the detem1inat1on of financial ,tatement amounts However, providing an opinion on compliance with those prov1,wn, was not an ob1ect1ve of our audit. and accordingly, we do not express such an opinion The results of our tests disclosed no in,tances of noncompliance that are required to be reported under Government Auditing Standards
Internal Control Over Financial Reponing
In planning and perfomiing our audit, we considered [ffingham County Board of Education's internal control over financial reporting in order lo detemiine our auditing procedures for the purpose of expressing our opinmn on the financial ,tatements and not to provide a,surancc on the internal
2002Yl3-41

control over financial reporting However. we noted a certam matter involving the internal control over financial reporting and its operation that we consider to be a reportable cond1t1on Reportable cond1t1on, involve matters coming to our attentmn relating to s1gmficant defic1enc1es in the design or opcratmn of the internal control over financial reporting that, in our judgment, could adversely affect Effingham County Board of Educatmn's ability to record, process, summanze and report financial data cons1,tent \\1th assertions of management in the financial statements The reportable cond1t1on is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6511-020 \
A matenal weakne~~ 1s a cond1uon in which the design or operation of one or more of the internal control component, docs not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal m relation to the financial statements being audited may occur and not be detected within a timely penod by employees in the normal coun,c of performing their assigned functions Our consideration of the internal control over financial reporting would not necessanly d1sclo,e all matters in the internal control that might be reportable conditions and, accordingly. would not necessanly disclose all reportable cond1tmns that are also con,1dered to be matenal weaknesses However, we consider Item FS-6511-02-0 I to be a matenal weakness
This report 1s intended solely for the information and u,e of the management, membe~ of the Effingham County Board of Education, Federal awarding agencies and pass-through entitles and is not intended to be and should not be used by anyone other than these specified parties
RWHgp 2002YB-41

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HINlON

5 JATr AJ.JOITOFl

(40,A) 6!,f,.. '174

DEPARTMENT OF Auorrs AND ACCOUNTS
2_5..i WJ,hm~ton ~tree! ~ W ~u1tc 214 AIIJnlJ, Gcorg1J 10314 8400
July 3. 2003

1lonorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Effingham County Board of Educallon
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE IO EACH MAJOR PROGRAM AND ON IN fERNAL CONTROL OVER COMP! JANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of Effingham County Board of Education with the types of compliance requirements descnbed in the US Office ofManagement and Budge/ (0MB) Circular A-133 Compliance Supplemen/ that arc applicable to each of its maJor Federal program, for the year ended June 30. 2002 Ellingham County Board ofEducation's maJor Federal programs are identified in the Summary of Auditor's Re~ults Sect10n of the accompanying Schedule of Findmgs and Questioned Cosl~ Compliance with the reqmrements of law;. regulations, contracts and grants applicable to each of its maJor Federal programs 1s the respons1b1lity ofl:Jfingham County Board of Education's management Our respons1b1lity 1s to e,prcss an opm10n on Effingham County Board of Educat10n'; compliance bru,ed on our audit
We conducted our audit of compliance in accordance with aud1tmg standards generally accepted m the United States of America, the standard; applicable to financial aud1h contained in Government Auditing Standards. issued by the Comptroller General of the United States. and 0MB Circular A133. Aud11., of Sia/es, Local Go1ernmen/1, and Non-Pro/ii Or1{am=altons I hose ;tandard; and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the type; ofcompliance requirements referred to above that could have a direct and material effect on a maJor Federal program occurred An audit includes exammmg. on a test ba~1;, evidence about the Ellingham County Board of Educat10n's compliance with those requirements and performing ;uch other procedures a; we con~1dered necessary m the circumstance; We believe that our audit provides a reasonable basis for our opm10n Our audit does not provide a legal determmat1on on Effingham County Board ofl:ducauon's compliance with those requirements
2002SA-10

In our opinion. the Effingham County Board of Education complied, in all matenal respects, with the
r reqmrements referred to above that are applicable to each of its maJor cderal programs for the year
ended June 30, 2002
Internal Control Over Compliance
The management of Effingham County Board of Education 1s responsible for cstablishing and maintaining effective mternal control over compliance with reqmrements of laws. rcgulat1ons. contracts and grants applicable to Federal program, In planning and performing our audit, we considered Effingham County Board of Educatwn's internal control over compliance with requirements that could have a direct and matenal effect on a maJor Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to tc,t and report on mternal control over compliance m accordance with 0MB Circular A-133
Our consideration of the mternal control over compliance would not necessanly disclose all matter. m the internal control that might be material weaknesses A matenal weakness 1s a cond1twn in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level of n,k that noncompliance with applicable requircmenl~ of laws, regulatwns, contracts and grants that would be material m rclatwn to a maJor Federal program being audited may occur and not be detected w1thm a timely penod by employees m the normal course of performing their a~s1gncd functions We noted no matters mvolving the mtemal control over compliance and 11> operation that we consider to be matenal weaknesses
Th1\ report 1s intended solely for the mformatwn and use of the management, members of the Effingham County Board of Education. Federal awardmg agencies and pass-through cnlit1es and 1s not intended to be and should not be used by anyone other than these specified parties

RWH gp 200'.!SA-10

Hmton State Auditor

SECTION Ill AUDll EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONFD COSTS

EFFINGHAM COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRJOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6511-00-0 I FS-6511-01-01 FS-651 1-01-02

Further Actton Not Warranted Further Act10n Not Warranted Unresolved - See Correcllve Act10n/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSEl S Failure to Maintam General Fixed Asset, Account Group Fmdmg Control Number FS-6511-01-02

In accordance with the reqmrements ofGASB 34, we will be mamtammg a General Fixed A~~ts Account Group m fiscal Year 2003

SECTION IV FINDINGS AND QUESTIONl:.D COSTS

EFFINGHAM COUNTY BOARD OF EDUCATION SCHEDULE OF f INDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY or AUDI rOR'S RESULTS
Type of Report Issued on the Financial Statements The auditor's op1mon on the Effingham County Board of Education', financial statements was qualified for various departures from generally accepted accounting pnnc1ples
2 Reportable Conditions in Internal Control Disclosed bv the Audit of the Financial Statements The audit report for the Effingham County Board of Educat10n disclosed a financial statement reportable cond1t1on related to the following control category.
General Fixed Assets
The reportable condition descnbed above 1s considered to be a matenal weaknes,
3 Noncompliance Matenal to the Financial Statements The audit of the Effingham County Board of Educat10n disclosed no instances of noncompliance that were deemed to be matenal lo the financial statements
4 Reportable Cond1t1ons in Internal Control Over Ma)Or Programs The audit report for the Effingham County Board of Education did not disclose any reportable cond1t10ns in internal control over maJor programs.
5 Tvpe of Report Issued on Compliance for Ma1or Programs The auditor's opinion on the Effingham County Board of Educallon's report on compliance wllh reqmrements applicable to maJor programs was unqualified
6 Audit hndings Required to be Reported by Section 51 0(a) of 0MB Circular A-133 l he Effingham County Board ofEducat10n's audit did not disclose audit findings rcqmred to be reported by sect10n 5\0(a) ofOMB Circular A-133
7 Ma1or Programs Federal awards audited as maJor program, are as follows IO 553 Food and Nutnllon Program - Food Service, - School Breakfa,t Program IO 555 Food and Nutnt10n Program - Food Services - National School Lunch Program 84 213 Elementary and Secondary l::ducauon Act - Title I - Even Start
8 Tvpc "A" Program Dollar Threshold l he dollar threshold for type "A" programs was $300.000 00
9 Low R1>k Aud1tee fhe Effingham County Board of Education qualified as a low nsk aud1tee a, defined by Section 530 of 0MB Circular A-I 33
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f.FFINGHAM CO8NTY BOARD OF EDUCATION SCH[DULE 01- HNDINGS AND'QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS failure to Maintain General Fixed Assets Account Group Reportable Cond1t10n - Malena! Weakness Repeated From Pnor Year rinding Control :'.\lumber. FS-6511-02-01 The Effingham County Board of Education dtd not maintam a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles Tht~ cond1t10n results m the general-purpose financial statements ofthe School D1stnct being incomplete and not in accordance with generally accepted accounting principles Appropriate action should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance ofa General Ft xed Assets Account Group These subs1d1ary records should mclude an inventory of land, bu1ldmg, and eqmpment owned by the School D1stnct, and should include, but may not be hm1ted to, date acquired, acqms1t10n cost, esttmated replacement cost. loca11on and descnptton Detailed records should be maintained of all add1t10ns and deletion. to the General Fixed Assets Account Group.
III FEDERAL AwARD FINDINGS AND QUESTIONED cos rs
No matters were reported
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