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

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r REPORT bN Audrr

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'OF THE FINANCIAL STATEMENTS

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- :FOR THE FISCAL-YEAR.ENDED JUNE 30, 12002

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ELBERT COUNTY BOARD OF EDUCATION - TABL[ OF CON fENTS -

SECTION I

FINANCIAi

INDFPf.NDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE flNANCIAL STATEMENTS AND SUPPLEMENTARY IN~ORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

f.XHIBITS

GENERAL-PURPOSE flNANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENULS, EXPENDll URES AND

CHANGES IN FUND BALANCES

ALL GOVERNMEN fAL FUND TYPES

4

C

COMBINED STATEMENT or REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - DUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUr FUNDS

7

D

COMBINED SI ATEMFNT OF REVENUCS, CXPENSES AND

CHANGES IN fUND BALANCES

flDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

8

I:.

COMBINED SfATEMENT OF CASH fLOWS

FIDUCIARY FUND TYPE - NON EXPENDABLE TRUST FUNDS

9

r NOTES TO THE GENERAL-PURPOSE FINANCIAL SfATEMENlS

I I

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPl:.CIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

ll

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF Rf.VENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

K

flDUCIARY fUND I YPE

COMBINING BALANCE SHEET

30

ELBERT COUNTY BOARD OF EDUCATION
- TABLE or CON I ENTS -

Page

SECTIOJ\J I

f INANCIAL

ADDITIONAL flNANCIAL INFORMATION

SCHEDULl:S

SCHEDULE OF EXPEND! IURES OF H-DI-RAL AWARDS

31

:! SCHEDULE OF~ !'ATE REVENUI:

33

3 SCH[DULF OF APPROVl:f) LOCAL OPTION SALES TAX PROJECTS

35

Al LOTMENTS AND EXPENDll URES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QRE)

4

BY PROGRAM

36

5

BY SITE

37

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER flNANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMl:NT AUDI rING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE rN ACCORDANCE WITI I 0MB CIRCULAR A-133

SECTION Ill AUDITEE'S RESPGNSE TO PRIOR YEAR I-IN DINGS AND QUESTIO"IED COSTS SUMMARY SCHEDULE OF PRIOR YEAR 1-INDINGS AND QliESTIONED COSTS

SECTION IV
FrNDINGS AND QUESTIONED cos rs
SCI IEDULF OF FINDINGS AND QUfSl IONED COS IS

SECTION I FINANCIAL

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DEPARTMENT OF AUDITS AND ACCOUNTS
2"4 \VJ,hmgton ",trcct ~ W ~UIIL 214 A.tl.mt.1 (u.. <1rg1.1 l03 l4-H400
Junc 24. 2003

Honorable Sonny Perdue. Governor Members of the General A,sembly Members of the State Board of l:ducat10n
and Supenntendent and Members of the l:.lbert County Board ofEducat10n
!"<DEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSf FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDUL[ OF EXPFNDITURES OF FED[RAI. AWARDS
Ladies and Gentlemen
We have audited the accompanying gcncral-purpo,e financial statements of the Flbert County Board of Education, a, of and for the year ended June 30. 2002. as listed in the table of contents These general-purpose financial statements are the respons1b1hty ofthe Elbert County Board ofl-ducatlon's
management Our respons1b1hty 1, to express an opinion on the,e general-purpose financial
\tatcments based on our audit
We conducted our audit m accordance with auditing ,tandards generally accepted in the Umted States of America and the standard, applicable to financial audit, contained in Government Auditing Standards. 1s,ued by the Comptrolh:r General of the United States I hose ,tandards reqmrc that we plan and perform the audit to obtain rea~nable assurance about whether the financial statements are free of material misstatement An audit include, examining. on a test bas,,. evidence ,upportmg the amounts and disclosures m the financial ,tatemcnts An audit also includes assessing the accounting pnnc1ples used and s1gmficant estimate, made by management. as well a, evaluating the overnll financial \tatcment presentation We behe\'e that our audit provides a reasonable bas1, for our opm1on
A\ described m the notes to the gem:ral-purpo,e financial statements, the Board of Education\ financial statements have been prepared usmg certain accounting practices and policies which. m our opinion. ,ary m some respect, from generally accepted accounting principles These variances are described a, follows

2002ARL-l3

The general-purpose financial statements of the Board of Educat10n did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of l:ducat1on which ,hould be included to conform to generally accepted accounting pnnc1ples
School acuv1ty accounts mamtaincd at the ind1v1dual schools are not included m the general-purpo,e financial statements To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statement~
The Board of Educat10n did not recognize as expenditures, in the year ended June 30. 2002. a portion of salanes and the corresponding employer's cost of related benefit~ earned for contractual ,ervice~ completed pnor to June 30, 2002 Also fund, received, subsequent to June 30, 2002. from the Georgia Department of Educalion for the State', share of thc,e unrecorded salanes and related benefits were not recorded as revenue in the year under review Conversely, the ,1milar expenditures and related revenues for contractual service, completed pnor to June 30. 2001, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accounting principles. revenues should be recorded when available and mea~urablc and expenditures should be recorded when incurred, rather than when funds are received or di\bursed
The aggregate effects on the general-purpose financial statements of these variances or omi,s10ns have not been determined, but arc believed to be matenal
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above pre~ent fairly, in all matenal re,pect,. the financial pos111on of the 1:lbert County Board ofEducat1on as of June 30, 2002, and the re~ult\ of its operations and the cash flows of Its nonexpendable trust funds for the }Car then ended, in conformity with accounting pnnciples generally accepted in the United States of Amcnca
In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2003, on our cons1derat1on ofthe Elbert County Board of Education', internal control over financial reporting and our tests of Its compliance v.1th certam provi,ions of laws, regulations, contracts and grants That report 1s an integral part of an audit performed in accordance with Government Auditing Standard, and ,hould be read in conJuncllon with this report in con~1denng the results of our audit
Our audu was performed for the purpo,e of forming an opinion on the general-purpose financial ,tatcmcnts ofthe Elbert County Board ofEducat10n taken a, a whole The accompanying combining statement\ (Exhibits G through K) and the financial schedules (Schedule~ I through 5), which includes the Schedule of Expenditure\ of Federal Awards a\ reqmrcd hy U S Office of Management and Budget Circular A-133, AuJ111 11fS1a1e,, local Governmenls, and Non-Profit Orgam=atwn.1. are presented for purpo~es of addltonal analysis and arc not a required part of the general-purpose
2002ARL-l3

financial stah:ment~ Such mfonnallon has been sub1ected to the aud1tmg procedures applied m the audll of the general-purpose financial statements and m our opinion. except for the dfccts of the matters relcrred to m the third paragraph. such mfonnat1on 1s fairly stated, mall matenal respects. m relation to the general-purpose financial ~tatement~ taken as a whole
A copy ofth1~ report ha~ heen filed as a permanent record m the office of the State Audllor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24
_,_...__l.l',cctfully ~ubm1tted.
~~
Hmton Stat Auditor
RWH as 2002ARL-13

ELBERT COUNTY BOARD OF EDUCATION

~!.B!iRT ~QU~I)'. I!QARQ Qf E121J~T!Q~
~QM~IN~D BALAN~E ~!:JE!iI
A!.!. FUNQ D:eE~ ANQ ~~~Ql.!til ~RQl!P
JUNE 30 2002

~ Cash and Cash Eqwvalents
lrwestments
Accounts Receivable
Prepaid Items
1nvenor1es Food Donated CommodJties Purchased Food
Amount Available tn Debt Service Fund
A.mount to be Prov1aed m FutUre Years For Payment o1 Bond Debt Caprtal Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

683 598 56 s

526 101 00 s 1 52-4 985 73

3 018,742 14

490 809 72

231 432 50

&40600 74

2 280 94

'2717017 9 50515

s 117668922 s

794 208 82 $ 5 384 328 61

LIABIL[TJES ANQ FUNQ EQIJ[IY
LIABILITIES
Cash Overdran Accounts Payable Salaries Payable Short-Term Debt Elt'Plred Grant Balances Payable Contracts Payable Reta1nages Payate Deferred Revenue Gapital Le~ Agreements General Ob\9abon Bonds Payable
Total L1abllrbes
FlJNP EQUITY
Fund Balances Reserved For Bus Replacement Fund.s For Debt Servtee For Endowment Corpus For lnventones Food Donated Commodtbes Purcna'Sed Food For Purpose of Bond Issue Unreserved Undesrgnated
Total Fund Equity

$

174917 $

55 222 '40

255 595 83

10 000 00

1 58711 $
2 929 64

49691117 343 689 57

$

1174917 $

315 334 98 $

840 600 7'4

s

224 018 '41

s
940 921 64
s 1 1B4 9,40 05 $

27 170 17 9 505 15
s
442 198 52
478 873 84 $

4 543 727 87 0 00
'4 543 727 87

Total Liab11rties and Fund Equity

s 1 176 688 22 s

The notes to the general P'P058 finanaal statements are an mtegral part of this statement

-2-

794 208 82 s 5 384 328 61

EXHIBIT ~A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST FUNDS

s

211 127 89 s

1 857 44

ACCOUNT GROUP GENERAL
LONG TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30 2002

JUNE 30 2001

$ 3 027 670 82 $ 1 101 278 83

783 204 26

30 803 39

3 832 749 79

8 776 272 54

340 320 82

1 903 163 78

4,016 957 95

2 280 94

5

1 414 652 97

27 170 17 9 505 15
1 414 652 97

31 964 95 13 335 27
2 029 417 04

8 375 3-47 03 1219854 17

8 375 347 03 121985-117

9 740 582 96 136424500

5 1 414 652 97 5

32 660 83 5

1100985417 5 19 812 394 82 s 27 094 074 54

s

100000

5

903 000 97

$

57 971 57

51 668 21

255 595 83

224 351 66

2 500 000 00

1 58711

371 75

49691117

343 689 57

s

1219854 17

9 790 000 00

12 92184 1 219 854 17 9 790 000 00

1111596
1 38,4 245 00
11 noooooo

s

1 000 00 s

11009854 17 $ 12 178 539 06 s 16 844 753 55

s 1 414 652 97
5

25 400 00

0 00
s 1 414 652 97 s

e 2eo 83 3166083

$

22401841 s

149 716 62

141465297

2029 417 04

25 400 00

25 400 00

27 170 17 9 505 15
4 543 727 67

31 984 95 13 335 27 7 554 792 66

1 389 380 99

444 674 45

s 5 7 633 655 56

10 249 320 99

s 1 414 652 97 s

32 660 83 s

11 009 854 17 s 19 812 394 62 s 27 094,074 5-4

3

ELBERT COUNTY BOARD Of EDUCATION COMBINED STATEMENT OF REVENUES EXPEN'TURES AND CHANGES JN FUND MLANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Taxes QI.her Fund&
Total Revenues
EXPENPITURES
Current Instruction Support Services Pupil Services Improvement of ln.strucbonal Services Educational Media SeMCeS General Adm1n1stral.Jon School Aclm1111strat10r1 BUSlness Admll'llslratlOO Mairrtenance and Operabon of Plant Student Transportabon ServlCes Central Support Services Other Support SeMces
Food Servoces Operaoon
Caprtal Outlay Debt Servtee
Pnnc,pal lnte<est Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditure,
OTHER FINANCING SOURCES fUSESl
Accrued Interest on Bonds Sold Proceeds from General Obbgation Bonds
Par Value Caprtal leases Operating Transfers In Operating Transfers Out
Total Other F1nenc1ng Sources (Uses)
Excess of Revenues and Other F,nencmg Sources over (under) Expenditures and Other F1nanong Uses
FUND BALANCE JULY 1
Food Inventory Net Change m Penod Doncated Commod111es ~sedFood
FUND BALANCE JUNE 30
The notes to the general-purpose finanaal statements are an Integral part of this statement -4 -

GENERAL FUND

SPECIAL
REVENUE
FUND

s 17 3S. 294 63 s
66 000 17 7 098 406 20
10969160
s 24 628 392 60 s

762 721 04 2 561 191 69
54g 625 93
3 873 538 66

s 16,174 216 41 s
664 206 72 521 596 53 B17 793 96 302 778 88 1 880 924 32 299 391 27 1 654 2-40 56 1 101 575 62
57 412 94 66 391 79
1 741 64

1672167 38
98 955 29 97 604 13 38 937 09 70 973 93 31 639 98
12 128 00 6 167 28
27 982 94 176941445

210,213 92 80 445 62

2 737 91 222 09

s s Z3 632 928 18

s

995 464 42 s

3 828 930 47 44 608 19

s

48 561 00

s

85 016 84

s

-36 455 84 s

15,016 84 15 016 84

s

959 008 58 s

59 625 03

205 931 47

427 893 71

-4 814 78 -3 830 12

s 1 164 940 05 S --a.7:.,;8"8'"7"'384--

EXHIBIT ~e-

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30 2002

JUNE 30 2001

s 3 024 620 50

$ 2114163617 $ 1734160324

s 1 910 729 94

2 627 191 86 9 009 136 14

2 360 -120 38 7,170 1-16 10

270 325 29

20 830 36

950 473 18

115876987

s 3 294 945 79 $ 1 931 560 30 $ 33 728 437 35 S 28 030 939 59

s 17 846 383 79 $ 16 820 366 64

s

3 775 31

6 302 235 27

763 162 01 619 200 66 656 731 05 373 750 81 1 912 56-C 30 303 166 58 1 666 368 56 1 107 742 90
5741294 94 374 73 1 771 156 09 6 302 235 27

722 219-12 608 326 37 641 087 14 367 931 35 1 855 238 91 393 808 66 267150094 1 226 433 89
43 464 43 149 486 92 1 76145244 2 251 492 22

s 1 980 000 00
634 779 37
1 545 00

2 192 951 83 71544708 1 545 00

1 888 316 00 287 575 09

s 6 306 010 58 s 2 616 324 37 s 36 384 193 60 s 31sa8100 42

s 301106A79 s

-684 764 07 s -2 655 756 25 s -3 657 760 83

$

15 997 14

s

-18 561 00

s

70 000 00

85 016 84

8 395 000 00 1 248 957 06 1 133 675 89

-85 016 84

-113367589

s

70 000 00 s

48 561 00 s 9 659 954 20

s -3 011 064 79 s
7 554 792 66

-614 764 07 s -2 607 195 25 $

202941704

10 218 034 88

6 002 193 37 4 218 643 29

-4 814 78 -3 830 12

-4 402 01 1 600 23

s 4 543 727 87 S 1 414 652 97 S 7 602 194 73 $ 10 218 034 88

- 5-

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

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

s 16 586 167 00
55 000 00 6 816 543 07
35 600 00

s 17,354,294 63
66,000 17 7,098 406 20
109 691 60

s S 23 493 310 07

24 628 392 60

EXPENDITURES

Current lnstrud1on Support Services Pupil Services Improvement of lnstrucbonal SeMces Educabonal Media Services General Adrrun1s.tratton School Adm1mstrabon Business Adm1rustratron Maintenance and Operatton of Plant Student TrunsportatJon SeMce:s Central Support Services Other Support Services Food Services Openrtlon
Debt SeMce
Total Expenditures
Excess of Revenues over (under) Expenditures

s s 15,765 529 33

16 174 216 41

704 598 00 533 296 00 630 973 00 328,638 00 1,936,337 74 270,410 00 1 84137700 1,304,064 00
'4,08300 65,393 00

664 206 72 521 596 53 617 793 96 302,776 88 1 880,924 32 299,391 27 1,654,240 56 1,101 57562
57 412 94 66 391 79
1 741 64 290,659 54

s s 23 424 699 07

23 632 928 18

s 6861100 s 995 464 42

OTHER FINANCING SOURCES (USES)
Other Sources
Other Uses
Total Other F,nanong Sources (Uses)

s

48,561 00

-85 016 84

s

-36 455 84

Excess of Revenues and Other Fuianong Sources

over (under) Expenditures and Other F1nanong

Uses

s

FUND BALANCE JULY 1 2001

Food Inventory Net Change in Penod Donated COmmod1bes Purdlased Food

6861100 s
0 00

959,008 58 205 931 47

FUND BALANCE JUNE 30 2002

s 6861100 S 116494005

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s

745 212 00 $

762 721 04

2 460 785 00

2 561 191 69

518 400 00

549 625 93

s 3 744 397 00 s 3,873 538 66

s s 1 752,838 00

1 672 167 38

117 059 00 141 004 00 25 599 00 77 281 00 32 795 00

98 955 29 97 604 13 38 937 09 70 973 93 31 639 98

14 828 00 9 000 00 1 926 00 25,000 00 1,575 171 00

12 128 00 6 167 28
27 982 94 1,76941445
2 960 00

s s 3 772 501 00

3 828 930 47

s

s -28 104 00

44 608 19

s

1501684

s

15 016 84

s

s -28 104 00

59 625 03

0 00

427 893 71

-4 814 78 -3 830 12

-28 104 oo s __4_1_0_0_13__84_

The nole$ to the general-purpose financial statements are an integral part of this statement -7 -

ELBERT COUNTY BOARD OF EDUCATION

EXHIBIT "D"

COMBINED STATEMENT OF REVENUES EXPENSES AND CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS

YEAR ENDED JUNE 30 2002

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Support Serv,ces Pupil Serv,ces Operating Income
NONDPERATING REVENUES Interest Earned Ne1. Income
FUND BAl,,ANCE JUL)'. l
FUND BALANCE JUNE 30

ENDOWMENT FUNDS

JOHN OLIN

JULIA COHEN

VICKERY

WOLFE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS !Memorandum Onl~)
YEAR ENDED JUNE 30, 2002 JUNE 30 2001

$

0 00 $

0 00 $

0 00 $

000

$

50000 $

50000 $

1,000 00 $

150000

$

-500 00 $

-500 00 $

-1,00000 $

-150000

546 15

828 57

1 374 72

1,682 34

$

4615 $

328 57 $

37472 $

182 34

14,028 67

17,257 44

3128611

31 103 77

$

14,074 82 $

1758601 $

s 31 660 83 _..,.;:3""1._2_86_1_1,.

The notes to the general-purpose financial statements are an integral part of th1s statement -8 -

ELBERT COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF CASH FLOWS FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "E"

Cash Flows from Operating Act1vIties Cash Paid for Scholarships
Net Cash Provided (Used) by Opera~ng Achvrttes
Cash Flows from lnvestmg Achv1bes Proceeds From Matunty of Investments Interest Received on lnvesbnents Cash Paid for Investments
Net Cash Provided by Investment Ad1v1hes
Net Increase (Decrease) in Cash
Cash and Cash Equrvalents - July 1

ENDOWMENT FUNDS

JOHN OLIN

JULIA COHEN

VICKERY

WOLFE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS (Memorandum Onl:tl
YEAR ENDED JUNE 30 2002 JUNE 30 2001

s

-500 00 s

-500 00 $

-1 000 00 $

-500 00

$

-500 00 $

$

14 028 67

546 15

-14 574 82

s

0 00

s

-500 00 $

500 00

-500 00 $

-100000 $

-500 00

s

14 028 67 $

54615

-14,574 82

32 952 99 3 057 38
-34 541 70

$ -500 00 $ 2 357 44

0 00 $ -1,00000 $ 2 857 44

1 468 67 96867
1 888 77

Cash and Cash Equrvalents - June 30

$

0 00 S

1 857 44 $

s__ 1 857 44

.;2;,;a;:;;5:;.7.;;44;;.

Reconc1l1ahon of Operating Income to Net

Cash Provided (Used) by Operating

Act1v1lles

Operating Income (Loss)

$

-500 00 $

-500 00 $

-1,00000 $

-1 500 00

Increase in Accounts Payable

1 000 00

Net Cash Provided (Used) by Operating

Ac:llvihes

$

-500 00 S

-500 00 $

-1 000 00 S --=-='5~00:;;.::0;;.,0

The notes to the general-purpose financial statements are an integral part of this statement . 9.

ELBERT COUNTY BOARD 01 EDUCATION

EXHIBll 'T'

NOTES TO THE GENERAL-PURPOSE rlNANCIAL STATEMFN1 S

JUNE 30, 2002

Note 1 SUMMARY 0~ SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Elbert County Board ofEducat10n (School D1stnct) was established under the laws ofthe State of Georgia and operates under the gmdance of a school board elected by the voters and a Superintendent appointed by the Board The School D1,tnct 1s organized a, a separate legal enllty and has the power to levy taxes and issue bonds Its budget 1s not subJect to approval by any other enllty Accordingly. the School D1stnct 1s a primary government and consist, of all the orgam.t.ation, that compose its legal enllty
lUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1t1on and the result~ of its operallons Fund accounting 1s designed to demonstrate legal compliance and to aid financial management by segregating transact10ns related to certam governmental funct10ns or ac1Iv11Ies A fund 1~ a ,eparate accounting enuty with a self-balancing set of accounts An account group 1s a financial reporting device designed to provide accountab1ht) for certain assets and hab1h11cs that are not recorded in the funds because they do not directly affect expendable available financial resources
General Fixed Asset~ are recorded a, expenditures in the various funds at the lime ofpurcha~e A General Fll,ed A%ets Account Group 1, not presently mamtained by the School D1stnct To conform to generally accepted accounting pnnc1ples. a General Fixed A,,cts Account Group ~hould be mamtained for reporting the cost of assets acquired by governmental fund types
Although "~chool act1v1ty accounts" arc maintained at the ind1v1dual schools, nenher the assets. hah1ht1es and fund equity. nor the revenues. expenditures and changes in fund balances of the,e accounts are reflected in thc,c financial statement~ Io conform to generally accepted accounting pnnc1ple~. these accounts should be recorded in the general-purpose financial statements
fhe general-purpose financial ~tatcmcnts account for all State. Federal, Taxes and Other funds under control of the School D1stnct, in compliance with generally accepted accountmg principle\ apphcahle to governmental umts, unles\ otht:rw1se d1sclo~d in these note, Funds and the account group presented in this report are as follow,
GOVERNME1'1AL FUND TYPES - arc used to account for all or mo,t of the School D1stnct\ educat1onal actl\'IUes Governmental Fund Types mclude
GENERAL FUND - the fund used to account for all financial resources of the School D1,tnct except those required to he accounted for in another fund Thc~c transactions relate to resourLt'\ obtained and used for services provided hy a board of educallon

- I1-

ELBERT COUNTY BOARD or EDUCATION

[XI IIBIT 'T"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY Of SIGNIFICANT ACCOUNTING POLICIES
SPECIAL R[Vl::NUE FUND - the fund u~ed to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restncted to expenditures for specified purposes These funds are received pnmanl} from the Georgia Department of Education and from the Federal government to accomplish specific educational obJecllves
CAPITAL PROJECTS FUND- the fund used to account for financ1aJ re,ources to be lL~ for the acqu1,1twn or constructwn of m3:1or capital fac1hlles
DEBT SERVICl: FUND- the fund used to account for the accumulation ofresource~ for. and the payment of. general long-term pnnc1pal. interest and paying agent fees
FIDUCIARY FUND TYPE - the funds used to account for assets held by a government umt in a tru~tee capacity or as an agent for ind1v1duals. pnvate orgamzallons. other government umts and/or other funds lb1s fund includes
NONEXPENDABLE TRUST FUNDS John Olin Vickery Scholarship and the Julia Cohen Wolfe Scholarship Funds - the funds =d to account for endowments of which the corpus 1s to be invested and preserved intact with the resultant income to be used to provide award, to high school students for future education
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device u~d to account for general obhgauon debt outstanding and capital lease obligations
BASIS OF ACCOUNTING
J'hc accounting and financial reporting treatment applied to a fund 1s determined by its measurement focus All governmental funds are accounted for u,ing a current financial resources mea~urcment focus With this measurement focus. only current assets and current liab1lit1es generally arc included on the balance sheet Operating statements of these funds present increases (1 e., revenues and other financing source,) and decreases (1.e. expenditures and other financing u,es) in net current assets Their reported tund balance 1s considered a measure of available spendable resources
L1ab1ht1es which arc expected to be financed from available spendable re~ources are reported as liab1h11e, in the governmental funds Other hab1lit1cs. which arc not expected to be financed from available spendable resource\, arc reported in the General Long-1 erm Debt Account Group
All nonexpendable trust funds are accounted for on a flow of economic re~ources measurement focus With this measurement tocu,. all assets and liab1hties ru.wc1ated with the operatwn ofthc,e funds are included on the baJance sheet Operating statements present increases (e g.. revenues) and decreases (cg. expenses) in net total assets

- 12 -

ELBERT COUNTY BOARD O~ FDUCATION NOTES.JO THE GENERAL-PU_RPOSf. I 1:--;ANCIAL STAT~MFNTS
JUNE 30, 2002

EXHll:lll "F"

Note I SUMMARY OJ SIGN!~ !CAN'! ACCOV~ I ING POLICIES
Governmental fund, are accounted for u~ing the modi lied accrual basis of accounting under which
Revenues arc recogmzcd when susceptible to accrual (1e . when they become both measurable and arn1lable) "Measurable" means the amount of the transaction can be determined and ''available" meam collectihle within the current pcnod or soon enough thereafter to be used lo pay hab1ht1e, of the current period The School D1stnct con~1der; rece1vabks collected within ,1xty days alter yearend to be available.: Property taxes. sale, ta:-.c, and interest are considered to be su,ccptible to accrual Noncxchangc transaction,. in which the ~chool District give, (or receives) value v.ithout directly receiving (or giving) equal value in exchange. include property ta;,.es. local option sale, taxes. intergovernmental grants and donallons Revenue for property taxes 1s recogmzcd in the fiscal year for which the taxes arc levied Revenue trom sales taxe~ 1s rccogmzcd in the fi,cal year the re~ources are received or suscepllble to accrual Revenue from grnnt, and donations 1s rccogmzed in the fiscal year in which all ehg1bility requirements have been satisfied
Expenditures are gencrall} recogmzed when the related fund hab1hty 1s incurred
A departure from the above dcfimt10n, 1s the accounting treatment afforded the final two payments on Genernl I und teachers' and bus drivers' contrncts. and the resource, available from the Georgia Department of Education for the State', ,hare of the,c contracts During fiscal year 2002. a suhstanllal number ofpeThonncl of the School District were employed for a one hundred and nmety day period beginmng in August 2001 and endmg m early June 2002 Per~onncl contract~ for th1, employment period specify that compensation be paid m twelve equal monthly payments beginmng in September 2001 and ending in Augu~t 2002 State grants to fund the State', share of these contracts v.crc disbursed from the Georgia Departmt:nt ot l:,ducat10n to the School District m the same twelve months As of June 30. 2002. compensat10n under these employment contract, had been earned. hut two of the twelve monthly pa)mcnts. due for July and August 2002. had not been made Payments for these two months were made and recorded as expenditures by the School District ~ubsequent to June 30. 2002 Also. the State's portion of the compen,atton paid in July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30. 2002 Conversely. the ,im1 lar expenditures and related revenues for contractual services completed prior to
June 30. 200 I. were recorded in the year ended June 30. 2002 Genernlly accepted accountmg
prmc1ple, require that revenues be recorded when available and measurable and that expenditure, be recorded when incurred. rnther than when fund~ are received or di,bur,ed
The accrual ba,i, of account mg, as reqmred by generally accepted accounting pnnc1ples. 1~ ut1h7ed by nonexpcndablc trust fund, Under the accrual basis of accounting. revenues are recorded when earned and e'l.penses arc recorded at the time hab1ht1e, art: incurred
BllDGET
lbc Elbert County Board of Educat10n's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1~ ba.cd upon estimates of expenditures together with probable li.mding sources There 1~ no statutory proh1b1t1on regarding ovcrcxpend1ture ot the budget at any level "lbe budget
- I3 -

ELBERT COUN rY BOARD OF LDUCJ\TION

EXHIBIT 'T"

NOTES TO I HE GFNLR~L-PURPOSE FINANCIAL STATEMENTS

JLNf 30, 2002

Note I SUMMARY OF SJGNIFTCAN I ACCOUNTING POLICIES
for all governmental funds 1s prepared by fund, funcuon and obJect. The legal lc\el of budget control was established b) the Board at the aggregate level The budget for governmental funds wa~ prepared on a basis other than generally accepted accounting pnnc1ples
The budget proce,, begms when the School Oi,tnct's admm1stmt1on prepares a tentalive budget for the Board's approval After approval ofth1s tentauve budget by the Board. such budget 1s advertised at least once ma newspaper of general c1rculauon m the locahty. At the next regular meetmg of the Board alter advertisement, the Board receives comment, on the tentauve budget. makes rev1s1ons as neces,ary and adopt~ a final school budget This final budget 1s then submlltcd. m accordance with prov1s1ons of the Quality Basic Educauon Act. OCGA Secuon 20-2-167(c). to the Georgia Department of Education. lbc Board may increase or decrease the budget at any time durmg the year All unexpended budget authonty lapses at fiscal year-end
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash eqmvalents consist of cash on hand. demand deposit~ and short-term investments wllh ongmal matun11e, of three months or less from ,he date ol acqms1t10n m authonzed financial mst1tut10ns Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more ,olvenl banks or msured Federal savmgs and loan as~oc1at1ons
INVESTMENTS
COMPOSI rION or INVESTMENTS
Investments made by the School D1s!nct m nonpart1c1patmg mterest-cammg contracts (such as
certificate~ of deposit) and repurchase agreements are reported at cost Partic1patmg mterest-earnmg
contrncts and money market investments with a matunty at purchase ofone year or less are reported at amortized cost Both paruc1patmg mterest-eammg contracts and mone) market investment~ with a matunty at purchase greater than one year are reported at fair value The Official Code ofGeorgia , Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and m selectmg among options for investment or among mslltut1onal bids for dcpo,1t,, the highest rate of return shall be the obJect1ve. given eqmvalent cond,uons of safety and liqmdity Funds may be mvested m the folio\\ mg:
(I) Obligations i,~ued by the State of Georgia or b) other states.
(2) Obhgat1on~ issued by the Umted Stale~ go\ernmcnt.
(3) Obligauons fully msured or guaranteed by the Umted State~ government or a l.imted States government agenc~.
(4) Obligations of any corporation of the Umtcd States government,
- 14 -

ELBERT COUNTY AOARD OF fDUCA"I ION

EXHIBll "F"

NOl r.S TO THE GENl:RAL-PURPOSE flNANCIAL STAIEMENTS

JUNF 30, 2002

Note I SUMMARY Of SIGNIFICANT ACCOUNl ING POLICIES

(5) Pnmc banker's acceptances,

(6) Ille Local Government lnve~tment Pool admm1stered by the State of Georgia, Office of I rca~ury and Fiscal Services.

(7) Rcpurcha,e agreements. and

(8) Obhgallons of other poht1cal subd1v1s1ons of the State of Georgia

RECEIVABLES

Receivables consist of grant reimbursements due on Federal. State or other grnnts for e-...pend1tures made but not reimbursed and other rccc1vablcs disclosed ti-om mforrnauon available Receivable~ arc recorded when either the asset or revenue recogmt10n cntena has been met Receivable~ recorded on the general-purpose financial statements do not mcludc an) wnounts which would necessitate the need for an allowance for uncollect1ble receivables

PROPERTY TAXES

The Elbert County Board of Comm1ss10ners fixed the property tax levy for the 200 I tax digest year (calendar year) on February 13. 2002 (levy date) Taxes were due on May 10, 2002 (hen date) Iaxes collected w1thm the current fiscal year or wllhm 60 days after year-end on the 200 I tax digest arc reported a~ revenue m fiscal year 2002 The Elbert County Tax Comm1~s1oncr bills and collecb the property taxes for the School D1stnct, withholds 2 5% of taxe~ collected as a fee for tax collecuon and remits the balance of ta-...es collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for mamtenance and opernuons amounted to $6,901,805 26

The ta-... millage rate levied for the 2001 ta-... year (calendar year) for the Elbert County Board of Educauon was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operauons

J_6.5J) mills

SALES TAXES

Special Purpose Local Opt10n Sales Tax revenue dunng the year amounted to $1,910,729 94 and 1~ to be uored for capital outld)' for educat10nal purprn,e~ or debt service I his sales ta-... was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

- I5 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO l HE GENERAL-PURPOSE FfNANCIAL STATEMENTS
JUNE JO, 2002

EXHIBI r "F"

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVI::,NTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value Purcha!>ed foods invcntories arc reported on the Combined Balance Sheet at cost (first-in. first-out) Donated food commodities are recorded a~ revenues and e\pend1tures at the time commodity item, arc received Purchased foods inventones are recorded as expenditures at the lime of purchase 1 he inventories reported on the balance sheet for donated food commod11lc~ and for purchased foods are equally offset by re~rvatwns of fund balance which indicates that these amounts do not constitute "available spendable resource~" even though they arc a component of net current asset,
PREPAID ITEMS
Payments made to vendor., for services that will benefit periods subsequent to June 30. 2002, are recorded as prepaid item,
COMPENSATED ABSENCES
Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered lb1s obhgauon relates only to vesting accumulating leave in which payment 1s probable and can be reasonably e~tlmatcd No hab1lity ha, been recorded in the ind1v1dual funds for the current portwn of th1~ obhgallon as this amount 1, deemed immaterial to the general-purpose financial statements
Add1t1onally. the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the Generdl Long-Term Debt Account Group ~ this hab1hty 1s abo deemed to be immaterial to the fair pre~ntatlon of these financial statements
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgallon bonds to pro,1dc funds for the acqms1t1on and constructwn of maJor capital fac1ht1es Bond premiums and discounts. as well as issuance costs, are recogmzed in the financial statements during the year bonds are issued General obl1gat1on bond, are direct obhgauons and pledge the full faith and credit ofthe government The outstanding amount of these bonds 1s recorded in the General Long-Term Debt Account Group
INTERFllND TRANSACTIONS
The School District has the following types of interfund transactwns

- 16 -

ELBERl COLIN rv BOARD or EDLCATIP..N

EXHIHI I "~"

NOTFS TO THI: urNrRAL-PlJRPOSE FINANCIAL STATEMENT::i

JllNE JO. 2002

Note 1 SUMMARY OF SIGNIFICAN I ACCOUl'\TING POLICIES
Reimbursements of expend1turcs/cxpcm,c, m1tially made from a fund that are properly apphcable to another fund are recorded as expend11ures/expensc, m the re1mbursmg fund and as reduction, ol expend1turc,/expenses m the fund that 1s rc1mbur,cd
Operating transfers are recorded for all mterfund transactwns other than reimbursements
MEMORA'IDUM ONLY - TOTAL COLUMNS
Total column, on the general-purpose financial statements arc captioned "Memorandum Onl)" to md1cate that they are presented only to fac1htate financial analys1, Data m these column, do not pre,cnt financial pos1twn. results of opcrallons or cash flows m confonrnty with generally accepted account mg pnnc1ple, Neither arc ,uch data comparable to a com,ohdauon Interfund ehmmatwn, have not been made m the aggregation ofth1, data
Note-, DEPOSITS AND INVESl MENTS
COLLATERALIZATION or DEPOSITS
Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on depo,1t at any ume many depository for a time longer than ten days a sum of money which ha, not bcc:n ,ecured by surety bond, by guarantee ofmsurancc. or by collateral The aggregate of the face value of ,uch surety bond and the marlet value of sccunlle, pledged shall be equal to not less than 110 percent of the pubhc fund, hcmg secured after the deduction of the amount ofdepo,1t msurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate of the marlet \ alue of the ,ecunllcs pkdged to secure a pool ofpubhc fund, ,hall be not less than 110 percent ofthe dail) pool balance OCGA Sectwn 45-8-11 (h) provide, an officer holdmg pubhc funds may. m hi, di,cret1on. "aive th..- requirement for ,ecunty m the case ofoperatmg funds placed m demand deposit chc:ckmg m:counts
Acceptable seeunty for dc:poslls consist, of any one of or an) combmat1on of the followmg
( I ) Suret) bond signed by a ,urety compan) duly qualified and authoned to transact busmcs, \\llhm the State of Georgia,
(2) In,urancc on account, provided by the Federal Deposit ln,urance Corporation.
(3) Bonds. bills. nok,. ecrt1ficates of mdebtedness or other dJrcct obhgatwns of the Urutcd State, or of the State of Georgia.
(4) Rond,, bills. notes. certificate, of mdebtedness or other obligations of the counties or murnc1paht1cs of the State of Georgia.
(5) Bonds of an) public authont) created by the laws of the State of Georgia. prov1dmg that the statute that created the authority authonzed the use of the bonds for th1, purpose.
- 17 -

ELBERT COUN I Y BOARD OF EDUCA rION NOTES 10 THE GENERAL-PURPOSE FINANCIA!--- STATEMENTS
JUNE 30, 2002

EXHIBIT "f"

Note 2 DEPOSITS AND INVESTMENTS

(6) lndu~tnal revenue bonds and bonds of development authonttes created by the laws of the State of Georgia, and

(7) Bonds, hills, notes, certificates of mdebtedm:ss. or other obhgattons of a ~ubs1dtaT) corporation of the Umted State, government, which arc fully guaranteed by the Umted States government both as to pnnc1pal and mtercst or debt obhgat1ons issued by the federal Land Bank. the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Ml>rtgage As,oc1atton, and tht: Federal National Mortgage As<;OCiat10n

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $6.987,025 26 The amounts ofthe total bank balances are cla,,1fied mto three categories of credit nsk

Category I - Ca~h that 1s insure<l (cg, Federal depo,1tory msurancc) or collaterahzed with secunttes held by the School Uistnct or by the School D1,tnct's agent m tht: School Distnct'~ name
Category 2 - Cash collateralized with securities held by the pledgmg financial msutut10n's trust department or agent m the School D1stnct', name
Category 3 - Uncollateralized deposit~ (Tt '.S mcludes any bank balance that is collateralized with sccurittes held by the pledgmg financial instttut1on, or by its trust department or agent but not in the School D1stnct's name )

The School D1stnct's deposits arc classified by nsl. category at June 30, 2002, a, follows

Risk Category

Bank Balance

$ 400,000 00

6,587.025 26

3

000

Total

$Ji,98],025.26

CAl l,GORIZATlO"l OF INVESTMENTS Investments are da,sificd as to n,I. b) the three catcgorie, descnbed bdow

Catcgor:, 1 - Insured or regi~tcred, or securities held hy the School District or the School D1stnct's agent in the School Distnct's name
Category 2 - Uninsured or unreg1,tered. with sccuntie~ held by the counterparty's trust department or agent m the School D1stnct's name
Category 3 - Uninsured or unregi~tered, with sccunt1e, held by the counterparty. or by its trust department or agent but not m the School Distnct's name

- 18 -

ELBERT COUN I_Y BOARD OF EDUCATION NOTES TO THE GEN[RAL-PURPOSF FINANCIAL STATFMFNTS
JUNE 30, 2002

EXHIBIT "F"

Note 2 DEPOSITS AND INVESTMENTS

At June 30. 2002. the carrying value of the School District's total inve~tment~ was $783,204 26 which 1~ materially the same as fair value The in\'cstmen~ arc class11ied as to nsk catcgonc, a, follows

Tvpc of lnve~tmcnt

CarT)1ng Amount

Fair Value

Investment, not SubJect to Categonzahon Mutual Fund~
Note 3 NO\1-MONE I ARY TRANSACTIONS

$ 78\218,26 $ 783.204.26

The School District receives food commod1ues from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at their Federally assigned value. See Note I - Inventories

Note 4 RISK MANAGEMENT

The School D1stnct 1s exposed to various nsks of loss related to torts, theft of. damage to, and de~truct10n of assets, errors or om1ss1ons, JOb related illness or inJunes to employees, acts of God and unemplo}mcnt compensation

The School D1,trict has obtained commercial in,urance for risk oflo as,ociatcd with torts. assets, errors or om1s~10ns and 10b related illness or inJuries to employee, I he School D1stnct has neither s1gmficantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three year,

The School District ha, elected to sclf-in,ure for all losses related to acts of God The School D1stnct ha~ not cxpcm:nced any lossc, related to th1~ nsk in the past three years

The School District 1, ~If-insured with regard to unemployment compcnsat10n claims The School D1~trict accounts for claims wllhin the same fund that the employee~ ~alary and benefits were paid Claims are accounted for wnh expenditurc and hab1hty being reported when 111, probable that a loss has occurred, and the amount of that loss can he reasonably e~Umated

Changes in the unemployment compensation claims hab1hty during the la,t two fiscal years are as follows

2001 2002

Beginnmg of Year L1ab1hty

Claims and Changes m Estimates

$

0 00 $

3 952 00 $

$

0 00 $

478 00 $

Claims Paid

End of Year L1ab1hty

3 952 00 $

0 00

478 00 $

0 00

- I9 -

ELBERT COUNTY BOARD OF EDUCATION NOTES TO THE Gl,,NERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30. 2002

[XHIRI I "F"

Note 4 RISK MANAGEMENT

The School D1,tnct has purchased a surety bond to provide add1t1onal insurance coverage as follows

Pos1t10n Covered

Amount

All employees

$ 100,000 00

Note 5 GENERAL LONG-TERM DEBT

CAPITAL LEASES The E:,lbcrt County Board ofEdueat10n has entered mto vanou, lease agreements as lessee for energy management. bu-,es and copiers 1 hesc lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the pre~nt value of the future mm1murn lease payments a, of the date of their mcept10n

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstandmg are as follows

Purpose

Interest Rates

Amount

General Government - Series 1997 General Government - Senes 2000

39%-50% 49%

$ 1,395,000 00 8,395.000 00

$ 9.790.000._QQ
The changes m General Long-Term Debt durmg the fiscal year ended June 30, 2002, were a, follow,

Capital Leases

General Obhgat1on
Bonds

Total

Balance July I, 2001

$ 1,384,245 00 $11,770,000 00 $13,154,245.00

Add1tion, Capital Leases

48,561 00

48,561 00

Oeduct10ns Oebt Retired
Balance June 30, 2002

212,951 83 I,980,000 00 2,1 CJ2,95 I 83
$ I,:? I2-~~4, I Z $ 9, 79Q.QQ0.0Q $ I1,002,B~:I- IZ

- 20-

ELBERT COUN rv BOARD OF EDUCATION

EXHIBIT 'T"

NOTES TO THE GENtRAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENERAL I.ONG-TERM DEBT

At June 30, 2002, payments due hy fiscal year which includes pnnc1pal and mterest for these items are as follow,

I 1scal Year [nded June 30

Capital Lea~e~

General Obhgallon
Bonds

fotal Debt

2003 2004 2005 2006 2007 2008-2012 2013
Total l'nnc1pal and Intcrc,t

$ 255,577 30 $ 1,871,920 00 $ 2,127,497.30

181,527 07 1,931.355 00 2,112,882 07

180,768 67 1,931,875 00 2,112.643 67

137.691 33 1,928.720 00 2.066,411 33

127.164 00 1.936,890 00 2.064,054 00

635,820 00 1,940,650 00 2.576.470 00

105,970 00

105.970 00

o,oo $ 1.624.518 37 $ U.54 ).4 I

$.l3, 165.,22,8,31

Deduct Imputed Interest

404 664 20

Net Present Value of Future
Mm1mum Lease Payments $.l,2 l9.854.17

'Jotc 6 SIIORT-TERM DEBl

rhc School D1stnct obtams temporal) loans m advance of property tax collectmns, depos1tmg the proceeds m Its General Fund This short-term debt 1, to provide cash for operations until property
tax collectmn~ are received by the School D1,tnct Article IX. Secllon V, Paragraph V of the
Consutullon of the State of Georgia hm1ts the aggregate amount of short-term debt to 75 percent of the total gro,, mcome from taxes collected m the precedmg year and requires all short-term debt to be repaid no later than December 31 of the calendar year m which the debt was mcurred

Begmnmg Balance

Add1t1ons

Payments

1:-.ndmg Balance

Temporary Loans

$~,500.000.0,Q $3,.000,000 00 $5,500 000.00 $_~_....Q.J..,O..,!l!

Note 7 ON-BEHALF PAYMENTS

1 he School D1,tnct has recognized revenues and expenditures m the amount of $365,319 52 for health msurance and retirement contnbullons paid on the School D1~tnct's behalf by the followmg State Agencies

- 21 -

ELBERT COUNl Y BOARD OF EDUCATION

EXHIBIT 'T"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STA I FMEN rs

JUNE 30, 200'.!

Note 7 ON-BEHALF PAYM!oNTS

Georgia Department of Educauon Paid to the Georgia Department of Community Health For Health ln~urance of Non-Certified Personnel In the amount of $324.044 52

Office ofTrea,ury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Co~t In the amount of $4 I,275 00

Note 8 SIGNIFICANT COMMITMENTS

The following 1s an analysis ofs1gmlicant outstanding construct10n or renovauon contracts executed by the School District as of June 30, 2002, together with funding available

Pro1ect

Unearned Executed Contracts

runding Available From State

01 LW/005-652-01

$ 6.756.990,35 $J,l5.1,233,5Z

The amounts descnbed in this note arc not reflected in the general-purpo,e financial statements

!'-Jote 9 CON rINGENT LIABILrI IES

Amoun~ received or receivable principally from the Federal government are subject to audit .;nd review by grnntor agencies This could result in requests for reimbursement to the grantor agene,y for any expenditures which are disallowed under grant terms. The School D1stnct believes that such d1,allowanccs. 1f any, will be 1mmatenal to its overall financial pos1uon.

The School D1stnct 1s a defendant m vanous legal proceedings pertaining to matters incidental to the performance of routine School District operauons The ultimate d1spos1tion of these proceeding, 1s not presently determinable. but 1s not believed to be material to the general-purpose financial statements

Note IO ACCUMULATED EMPLOYEES' LEAVE

In accordance with his contract, the Supenntendent, upon retirement or termination, will be compensated for accumulated unused sick leave to a maximum ofmnety (90) days and for unused vacauon leave to a maximum of ninety (90) days Inc Superintendent will be paid for each leave category at a rate of 11240th of his ~alary at the ume of reurement or termination See Note I Compensated Absences

- 22 -

ELBERT COUNTY BOARD OF EDUCAl ION

CXHll31T ''F"

NOTES TO THI' GENERAL-PURPOSE FINANCIALS I Al EMENTS

JUNE 30, 2002

Note I I RCTIREMENT PLANS

TEACHF:RS RETIREMENT SYSTEM OF GEORGIA (TRS)

fRS PLAN DESCRIPTION Sub~tantially all teachers. admm1strat1ve and clem:al personnel emplo) ed by local school d1stncts arc covered by the Teachers Retirement System of Georgia (TRS), which 1s a co,t-,hanng multiple employer defined benefit pens10n plan TRS provides service retirement. d1sab1hty retirement and surv1vo~ benefiL~ for its members m accordance with State statute !"he Teachers Retirement Sy~tem of Gcorgm issues a ~parate stand alone financial audit report and a copy can be ohtamed from the Georgia Department of Audit, and Accounts

TRS CONl RIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who are covered hy TRS are reqmred h) State statute to contnbutc 5% of their gross earnings to TRS The School D1stnct makes monthly employer contnbullons to 'I RS at rates adopted by the TRS Board of Trustees m accordance with State statute and as adv1~ed hy their mdependent actuary The reqmred employer contnbullon rate 1s 9 24% and employer contnbut1ons for the current fiscal year and the preceding two fiscal years are as follow,

Fiscal Year

Percentage Contributed

Required Contn bullon

2002 2001 2000

100% 100% 100%

$1.470.040 35 $ 1.693,656 64 $ 1.610,838 66

- 23 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
lnventones Food Donated Commod1l1es Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Dona1ed Commod1l1es Purchased Food Unreserved Undes1gnated
Total Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

499,226 25 $

69,056 24

48,751 52

9,588 38

27,170 17 9,505 15

~---==- $

584 653 09 $

78 644 62

$

6,730 54 $

99,048 71

s

105 779 25 $

17,364 54 56,765 99
1,584 45 2,929 64
78,644 62

$

27 170 17

9,505 15

442,198 52 $

$

478,873 84 $

000 000

Total L1ab1ht1es and Fund Equity
See notes to the genera~purpose financial statements - 24 -

$

5841653 09 $ --~7=8=,644~6_2_

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

568,282 49 $

476,879 01

s

173 092 60

231,432 50

251,676 34

27,170 17 9,505 15

31 984 95 13 335 27

s

17309260 $

836,390 31 $ = =7=73 ~875-5~7

$

42,181 49 $

42 181 49 $

70 243 83

31,12732

55,222 40

49,898 66

99,781 13

255,595 83

224,351 66

266

1,58711

371 75

2,929 64

1,11596

$

173,092 60 $

357,516 47 $

345,981 86

$

$ _ _ _ _~0~00~

$

000 $

27,170 17 $ 9,505 15

31,984 95 13,335 27

442,198 52

382,573 49

478,873 84 $ _ _4_2_7~8~9~3_7_1

$

17309260 $

836,390 31 $ _~7=7=3=8""75_5_7_

- 25 -

.-----------------------------------

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnstrucbonal Services Educahonal Media Services General Adm1nistrat1on School Admm1strabon Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operahon
Debt Serv,ce Pnnc,pal Interest
Total Expenditures
Excess of Revenues over (under) Expendrtures
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 Commochbes Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

119 886 00 $

1,160187 55

549 625 93

$ 1829699 48 $

642,835 04 642,835 04

$

557,967 14

33,485 91 1,773 95

$ 1,769,41445 66000

$ 1770,07445 $

$

59,625 03 $

30,956 58 12,128 00 6 167 28
207791 22209
644 77886 -1,94382

$

59,625 03 $

427,893 71

-4 814 78 -3 830 12

1 943 82
000 000

$

478,873 84 $ _ _ _ _ _0_00_

See notes to the general-purpose financ,al statements

-26 -

EXHIBIT "H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30 2002

JUNE 30, 2001

$

762,721 04 $

837 168 96

$ 1401,00414

2,561,19169

2,304 736 20

549,625 93

542 253 33

$ 1 401 004 14 $ 3,873,538 66 $ 3 684 158 49

$

s 1 114,200 24

1,672 167 38 $

1,608,502 47

65,469 38 95,830 18 38,937 09 70 973 93
68340
27 982 94

98,955 29 97 60413 38 937 09 70,973 93 31,639 98
12,128 00
6,16728 27,982 94 1769,41445

94,227 47 57,601 77
26,678 00
62,145 28 27 345 64
274 11 23 840 27 1 761 452 44

2,737 91 222 09

2 517 12
377 88

$ 1 414 077 16 $ 3,828 930 47 $ 3664 96245

$

-1307302 $

44 60819 $

19,196 04

13,073 02

15,016 84

1108 56

$

0 00 $

59 625 03 $

20 304 60

000

427,893 71

41039089

-4 814 78 -3 830 12

-4,402 01 1,600 23

$

000 $

478,873 84 $ _ _4_2_7_8_9_3_7_1

- 27 -

El8ERT COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 2002

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets

BOND PROCEEDS
s 1 524,985 73

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30, 2002 JUNE 30, 2001

s 1 524,985 73

3 018,742 14

3 018,742 14 $ 7 753 837 67

$

840 600 74

840,600 74

292 068 15

$ 454372787 S

840 600 74 S 5 384 328 61 S 8 045,905 82

LIABH ITIES AND FUND EQUITY

LIABILITIES

Cash Overdraft

Contrads Payable

s

Retamages Payable

Total Llabthhes

s

FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue Unreserved Undes19nated
Total Fund Equrty

$ 4,543 727 87 000 $
$ 4,543 727 87 $

496,911 17 s
343 689 57
840,600 74 $

s
49691117 343 689 57
840 600 74 s

491,11316 491,113 16

s 4 543 727 87 s 7 554,792 66

000

0 00

0 00

000 $ 4 543 727 87 s 7 554 792 66

Total L1ablllt1es and Fund Equity

$ 4 543,727 87 S

840 600 74 S 5 384 328 61 $ 8 045 905 82

See notes to the general-purpose finanaal statements

- 28 -

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

EXHIBIT"J"

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED JUNE 30 2002 JUNE 30 2001

REVENUES
State Funds Other Funds
Total Revenues

s s 270 325 29 s s 270 325 29

s 3,024 620 50

3 024 620 50

s 270 325 29

s 3 024 620 50 $ 3 294 945 79

41747361 417 473 61

EXPENDITURES
Current Support Servk:es Busmess Admmrstration
Caprtal Oullay Salanes
Employee Benefits Insurance Other Purchased SeMces Other Expenditures Land and Lend Improvements Buddmg and Bu1kt10Q Improvements Equipment
Total Expenchtures
Excess of Revenues over (under) Expenditures

s

3 775 31

150 000 03
30 986 46
s

967 322 34 37 563 64
s s 1 209 647 60 s s -939,322 51

s

s 3 775 31

185 089 99

19 100 00
2516 55 17 332 96
5 054 911 27 2 500 00

150 000 03 30 986 46 19 100 00
2 518 55 17 332 96
6 042 233 61 40 063 64

136 640 92
29 607 99
531 311 86 1 508 760 45
44 771 00

s s 5 096,362 78

6 306 010 56

2,436 562 21

s s -2 071 742 28

-3 011 064 79

2 019 108 60

OTHER FINANCING SOURCES CUSESl

Proceeds from General Obltgabon Bonds Par Value
Operabng Transfers In Operating Transfers Qui
Total Other Frnancmg Sources (Uses)

s s -2 071 742 28 s -2 071 742 28 s

Excess of Revenues and Other F1nancmg Sources

s over (under) Expendrtures and Other Financing Uses

-3 01106479 $

FUND BALANCE JULY 1

7 554 792 66

s 6 395 000 00

s 2 071 742 28

2 071 742 26

596 476 02

-2 071 742 26

1 729 043 35

s 2 071 742 26

0 00 $ 7 262 432 67

s s 0 00

-3 011,064 79

5 243 324 07

0 00

7 554 792 66

2 31146859

FUND BALANCE JUNE 30

s 4 543 121 67 s _ _ _ _.:o.:o.o'" s 4 543 121 67 s 7 554 192 66

See notes to the general-purpose finanoal statements

- 29-

ELBERT COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
FIDUCIARY FUND TYPE
JUNE 30 2002

EXHIBIT"K"

ASSETS Cash and Cash Equivalents Investments
Total Assets

NONEXPENDABLE TRUST FUNDS

ENDOWMENT FUNDS

JOHN OLIN

JULIA COHEN

VICKERY

WOLFE

SCHOLARSHIP SCHOLARSHIP

FUND

FUND

TOTALS JUNE 30, 2002 JUNE 30, 2001

$

1,857 44 $

1 857 44 $

2 857 44

$

14 574 82

16,228 57

30 803 39

29 428 67

S

14 574 82 $

18,066 01 $

32 660 83 $ ___3_,2.2.6_6_1_1;.

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable

s

FUND EQUITY

Fund Balances

Reserved

For Endowment Corpus

$

Unreserved

Undes,gnaled

Total Fund Equrty

s

500 00 $
1000000 s
4 074 82 14 074 82 $

500 00 $
15 400 00 $ 2 186 01 17 566 01 $

100000 $

100000

25,40000 $ 6,26083 31,660 83 $

25 400 00 586611
31,26611

Total Liab1l1ties and Fund Equrty $

14 574 82 $

1806601 $

32,660 83 $ _-'3"'2"'2=66===11:c

See notes to the genera~urpose financial statements

- 30 -

ELBERT COUN1Y BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE 1

FUNDING AGENCY PROGRAM/GRANT
Agncutture U S Department of Child Nutrition Cluster Pass-Through From Georgia Depanment of Education Food and NutnbOn Program Food SeMCeS Sdlool Breakfast Program NahOnal School Lunch Program Pass--Tlvoogh From Office of School Readiness Food and NutntlOll Program Summer Food Service Program for Children
Total Chnd Nutntton Cluster
Olher Programs Pass-Through From Georgia Department of Educatton
Food and NutnbOn Program
Food DistnbubOn Program (1)
Total U S Department of Agncutture
Educabon u S Department of Special Educal.Jon Cluster Pass-Through From Georgia Department of Educatton lndrv1duals wrth DIS8bdrttes Educabon Act Pan B - Speaal Educabon Flow Through Preschool Capacrty Build.mg Improvement
Total Speoal EducatJon Cluster
Other Programs
Pass-Through From Georgia Department or Educabon
Elementary and Secondary EducabOn Act Trtlel Grants to Local Educabonat Agenoes TIiie II Eisenhower Professional Development Title VI Innovation Program Class Slze Redudlon
Safe and Drug-Free Sdlools and COmmunrues Vocational EducatM:>n - BaSIC Grants to States
High School Program BaslcGran1
Total U S Department of EducatJon
Transponatlon U S Department of Pass-Through From Governor's Office of ~hway 5afety Youth for Highway Safety lm1Jab110 Grant Pftl:lect #410-Al..-02-139

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555
10 559

NIA

s 270 796 87

(2)

NIA

722 871 28 s

1,674,783 93 (3)

NIA

71 228 90

!2l

s 1 064 897 03 s

1 67 783 93

10 550

NIA

95 290 52

95 290 52

s 1 160 187 55 s

1170 074 45

84 027 84 173 84 173

NIA

s s 367 433 60

NIA

28 199 00

NIA

6 283 88

s $ 01,916 8

367 433 60 32 193 33 (3) 6 283 88
05 910 61

84 010 8-4 281 84 298 84 340 84 186
84 048

NIA

7 0 496 19

740 496 19

NIA

9 710 39

9,710 39

NIA

38 988 00

39 000 19 (3)

NIA

12 ,811 00

133 675 50 (3)

NIA

17 238 61

17238 61

NIA

68 045 7

68 045 ,47

s s 1 01 00 1

141407716

20600

NIA

s

581 90 s

581 90

- 31 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense, U S Department of Direct Department of the kmy R O T C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

s

65, 38 27

()

Total Federal Fmanaal Assistance
NIA = Not Available

s 25211s1 86 s_....,3_.1"a""'1_.1.,3..,51._

Nota to the Schedule of Expengltyres of Federal Awards
(1) The amounts shown ta the FOOd Disb1bUtion Program represents the Federally MSlgned value of nonmonetary
assistance for donated cornmod1bes recetVed and/or consumed by the system dunng the rurrent ftscal year (2) Expenditures for the Schoo( Breakfast Program and the Summer Food SeMce Program were not maintained
separately and are lllduded in the 2002 NabOnal School Lunch Program (3) Expenditures for this program nclude State, and/or Other Funds
Expenditures are not mainla.Jned by fund aource (4) ElCpend1tures on this program were not mamtalned by fund source

MaJor Programs are identified by en asterisk() in front of the CFOA number

The School D1stnc.1 did not provide Federal Assistance to any SubreaP181'11

The accompanying schedule of expenditures of Federal awards 1nclude5 the Federal grant actrv1ty of the Elbert County Board of Eoocatlon and 1s presented on the modified accrual basb of accounting wtnch 1s the basis of accounting used m the presentabOn of the general-purpose financial statements

See nom to the general-purpose flnanaal statemen~

- 32 -

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

SCHEDULE "2"'

8GENCYIFUNPING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS

Education, Georgia Department of

Quality BaSlC Education

Direct lnstrucbonal Cost Kllld~arten Program

s 771 491 00

Kllldargarten Program - Earty lntervenbon Program

366 121 00

Pnmary Grades (1 3) Progrem

1 783 789 00

Pnmary Grades - Earty lnterventron (1-3) Progr.!lm

676 496 00

Upper Elementary Grades (4-5) Program

996 912 00

Upper Elementary Grades (4 5) Program Early

tntorventron Program

487 912 00

Middle School (6-8) Program

2 088 794 00

High School General Educat10n (9-12) Program

1 658 660 00

VocatlOllal Laboratory (9 12) ProgrBm

615 024 00

Students With O.sabtlrbes

Category l

5 627 00

Category ll

638 750 00

Category Ill

639 021 00

Category IV

126 638 00

Category V

62 047 00

Gifted Student - Category V1

358 476 00

Remedtal EducatlOf'l Program

108 398 00

Altemative Eaucat1on Program

158 983 00

English Speakers of Other Languages (ESOLJ

80 408 00

20 Days Add1t1onel lnstrucoon

107 704 00

Media Center Program

351 778 00

Steff and Professional Devefopment

66 043 00

Indirect Cost

2 296 202 00

Categcmcal Grants

Pupil TransportabOn

Regular

627 932 00

Bus Replacement

178751 00

Sparsity

20 000 00

Nursing Servtees

87 654 00

Pnncipat Supplements

15 570 00

Vocat10nal Supervisors

24 821 00

EducabOn Equalization Fundrng Grant Food ServlCeS

1 335 776 00
s 11988600

Vocational Education

22 148 25

Olher Slate Programs

Apprentrcesh1p Program

35 000 00

Health Insurance

324 044 52

Mentor Teachers

3 519 00

Pay for Performance

60 000 00

Post Secondary Optron - Spnng

891 00

Preschool Handicapped Program

35 800 00

Lottery Programs

Assrst1ve Technology

3 800 43

Computers 1n the Classroom

92 275 00

s 771 491 00
366 121 00 1 783 789 00
676 496 00 996 912 00
487 912 00 2 088 794 00 1 658 660 00
615 024 00
5 627 00 638 750 00 639 021 00 128 638 00
62 047 00 358 476 00 108 398 00 158 983 00
80 408 00 107 704 00 351 778 00 66 043 00 2 296 202 00
627 932 00 178,751 00 20 000 00 87 654 00
15 570 00 24 821 00 1 335 776 00 11988600 22 148 25
35 000 00 324 044 52
3 519 00 60 000 00
891 00 35 800 00
3 800 43 92 275 00

Georgia State Financing and Investment Comm1ssl0fl Reimbursement on ConstructlOl'l Pru,ects

s 3 024 620 50

3 024 620 50

Office of School Readmess Pre-Kindergarten Program Resource CoordlNltor

513 273 70 33 485 91

513 273 70 33 485 91

Office of Treasury and FISCBI Servtees Pubbc School Employees Retirement

41 275 00

41 275 00

- 33 -

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

SCHEDULE"2"

AGENCY/FUNDING
CONTRACTS Educet10n Georgia Department of After School Programs Reading First Program
Georgia Children s Trust F"1d Commissron Second Step Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

31 807 23

59 065 63

4 966 00

$

31 807 23

59 065 63

4 966 00

$ 1735429463 S 76272104 S 302462050 $ 21141,63617

See notes to the general-purpose fin.!lncia1 statements 34 -

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

SCHEDULE "3"

PROJECT
Renovating repamng mochfymg expanding and equ1ppmg High School
Renovating repamng modifying expanding and equ1ppmg tour elementary schools and c:onstructJng physical educabon art and muSIC faclllbes at three of said schools
Local share tor constructing and equIppmg a new elementary school and acqumng land therefor
Renovabng repamng mcx:llfymg expanding and equ1pptng taalrttes at the Mtddle School Complex
Renovabng repainng modifying expanding and equrpping bus garage and acqumng land therefor
Acqumng constructmg 1nstall1ng fum1sh1ng and equipping a new middle school and acqu1nng praperty both real and personal necessary therefor and renovating repamng modifying expanchng and eqwppmg the Elbert County ComprehenS1ve High Sdlool five elementary sehools central office and bus shop

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(21

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS (3) (4)

PROJECT STATUS

s s $ 2 220 000 00

2 220 000 00

s 26,618 61

1 590 329 17 Completed

4,970 ODO 00

4 970 000 00

97 934 36

3 626 940 32 Ongoing

4 200 000 00

6 627 570 00

5 245 375 10 Completed

1 300 000 00

1 300 000 00

593,522 78 Completed

175,000 00

175 000 00

1,701 00 Ongoing

11 580 ODO 00

15 750 939 00

6 657 596 47

547 173 15 Ongoing

S 24 445 000 00 S 31 043,509 00 S 6 782 149 44 S 11605041 52

(1) The School 01stnct's original cost estimate as speofted m the resoh.ruon callmg for the 1mposmon of the Local OptJon Sales Tax

(2) The School D1stnc:t's current estimate of total cost for the proJects Includes all cost from proiect mceptron to completion

(3) The voters of Elbert County approved the lmposruon of a 1% sales tax to fund the above protects and retire associated debt Amounts expended for these Protects may include sales tax proceeds state local property taxes and/or other fuods over the life of the Protects

(4) In addrbon to the expenditures shown above the School OtSlnct has incurred interest to provide advance funding for the above pr(JfeciS as follows

Pnor Years

$ 116836667

Current Year

154 865 20

Total

$ 1323231 87

See notes lo the general-purpose flll8noal statements

35-

ELBERT COUNTY BOARD OF EDUCATION
GENERAL FUND QUALITY BASIC EDUCATION PROGRAM !QBE)
ALLOTMENTS AND EXPENDITURES BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1 l

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOT"-l

Dlred lnstrudional Programs

Kindergarten Program

s

Kllldergarten Program-Ear1y Intervention Program

Pnmary Gra!ies (1-3) Program

Pnmary Grades-Early lnterven11on (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Grades Ear1y lntervenbon (4-5)

Program

Middle School {6-8) Program

High School General Educallon (9-12) Program

Vocallonal Laboratory (9-12) Program

Students wdh Dlsab1lfhes

Category II

Gategory Ill

Galego,y fV

Ga1egory V

Gifted Student Category VI

Remechal Education Program

Altematlve Education Program

Eng~sh Speakers of Other Languages (ESOL)

861 661 00 $ 408 912 00 1,992 273 00 755 562 00 1111,54500

949,769 94 $ 277 823 51 2 196 917 72 946,970 35 161590866

546,819 00 2 332 926 00 1 852 520 00
686 906 00 1 844 136 00
400 374 00 121 067 00 177 565 00 89,806 00

368 337 87 2 783 208 73 2 459 636 46
591 685 84
723 831 03 915 835 10
77 876 31 65 25775 320 237 0, 69 084 10 199 082 65 86 216 99

s 12 761 48
1 693 72 4411275
8 814 02 42,069 28

962 531 42 279 517 23 2 241 030 47 955 784 37 1 657,977 94

2 114 01 78 059 91 95 538 99 68 478 68

370 451 86 2 861 268 64 2 555 175 45
660 164 52

4 182 26 5 941 52
752 84 1 306 72 7 014 21 1 196 21 2 476 52
214 91

728 013 29 921,776 62
78,629 15 66 564 47 327 251 25 70 280 31 20155917 86,431 90

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

12,982 072 00 $ 14 847 680 05 $ 376 728 03 $ 15,024 408 08

Macha Center Program Slaff and Profess10nal DP1J,... lopment

392 892 00 73 761 00

535 n1 82 41 561 85

71,27587 32,19939

607,0,7 89 73 761 24

TOTAL QBE FORMULA FUNDS

$

13 448 725 00 $ 15 225,013 72 $ 480 203 29 S 15 705 217 01

(1) Compnsed of State Funds plus Local Five M1U Share

See notes to the genera~purpose flnaooal statements

36-

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

SCHEDULE "5"

SITE
Doves Creek Elementary School Elbert County High School Blackwell Elementary School Elbert County Middle School Beaverdam Elementary School Falling Creek Elementary School Bowman Elementary School Central Office (Altematrve Educabon Program) Other Auxiliary Fac1hty
TOTAL
(1) Compnsed of State Funds plus Local F,ve Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,403,365 00 $

1435,77719

3,339,994 00

3,972,974 01

1296,54200

1,440,003 40

2,878 458 00

3,400,307 44

1405,92700

1,633,074 47

1,437,686 00

1,634 002 26

1,042,535 00

1,214 000 02

177,565 00

201,559 17

92 710 12

$

12,982,072 00 $ 15,024 408 08

See notes to the general-purpose finane1al statements - 37 -

SECTION II COMPLIANCE AND INTERNAL CONl ROL RFPORTS

R11ss111 W. H1N1t1:-.
<; IME AJJOlTQfl
I 104, F,5f; 'IJ l,1

DEPARTMENT OF AUDITS AND ACCOUNTS
254 w.1..,hrngton Sm:c1 ~ W ~unc 214 All.tntJ Gcorg:1.1 10.J34-X400
June 24, 2003

Honorable Sonny Perdue, Go\ernor ~em hers of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the [lbert County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CON fROL OVER FINANCIAi REPORTI\/G BASED ON AN AUDI! OF FINANCIAi STAflMENTS PERFORMED IN
ACCORDANCE WITII GOVf.RN\1f.Nl AUDITING s1 AN DAROS
Ladies and Gentlemen
We have audited the financial statements of Elbert County Board of Educat10n as of and for the year ended June 30, 2002, and have issued our report thereon dated June 24, 2003 fh1s report wa, qualified for various departures from generally accepted accounting pnnc1ples, as 1denufied in the auditor's report on the general-purpose financial ~tatements We conducted our audit in accordance with auditing ,tandards generally accepted in the United States of America and the ,tandard, applicable to financial audit, contained in Government Auditing Standard,, issued by the Comptroller General of the United States
Compliance
A, part of obtaining rca,onable as,urance about whether Elbert County Board of Educal10n', financial statements arc free ofmatenal misstatement, we;: performed tests of 1b compliance \\1th certain prov1,1ons oflaw,, regulation,. contract, and grants. noncompliance with which could have a direct and matenal effect on the dctermmat10n of financial statement amount, l lowever. prov1dmg an opinion on compliance with tho'>C prov1s10ns was not an obJecl1vc of our audit, and accordingly. we do not express such an opinion The results of our tests d1sclo,ed no instances of noncompliance that arc required to be reported under Government Auditing Standard,
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Elbert County Board of Education's internal control over financial rcporting in order to detenmne our aud1tmg procedures for the purpose ot expressing our opin10n on the financial statements and not to provide aurance on the internal
200:!YB-40

control over financml reporting Ho,,cver. we noted certam matters tn\'OlYing the mtemal control over financial reporting and 1h operation that we consider to be reportable cond1110ns Reportable cond111ons mvolYe matter, coming to our at1ent1on relating to s1gmficant defic1enc1e, in the design or operation of the mtcmal control over financtal reporting that, m ourJudgment, could advcr.,cly afkct 1:lbert County 13oard ofEducauon', ab1hty to record. process. summar1e and report financial <law consistent with a,sert1ons of managemt:nt m the financial statements Reportable cond1t1on, arc
r described m the accompanymg Schedule of mdmgs and Qucst10ncd Costs .is Items FS-6521-02-02.
fS-6521-02-03. lS-6521-02-04 and FS-6521-02-05
A mater1al weaknes, 1s a cond1t10n m which the dc,ign or operation of one or more of the mtemal control components doe, not reduce to a rclauvely low level the risk that misstatements m amounts that would be material m relation to the financial statement, bemg audited may occur and not ht: detected w1thm a umcly period by employees m the normal course of pcrformmg their a1gncd funcuons Our cons1dem11on of the mtt:mal control over tinancial reportmg would not necessaril} d1,close all matters m the mtemal control that might be reportable cond1110ns and, accordmgl}. would not necessanl} disclose all reportable cond1t1on, that are also considered to be matcnal weakne,ses However, ofthe reportable cond1t10ns descr1hed ahove. we consider item FS-6521-0205 to be a material weakness
This report 1s mtendcd ,olely for the mformat10n and use ofthe managemt:nl. member<; ol the Elbert County Board ofEducallon. Federal awardmg agencies and pas,-through en1111e, and 1s not mtended to be and should not be used by anyone other than the,e ,pec1fied parties

RWHas 2002YB-40

n e Audllor

1<1,,~11 W H1,1m,
S lAJ; AJJDIKn
f4').11 651:,, 1 {,1

()EPARTMENT OF AUDITS AND ACCOUNTS
254 WJ,hmton ~trc-ct SW ~uuc 214 1\tl.int.1 Gcorg:1.1 "1314-8400
June 24. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Member-, of the State Board of Education
and Superintendent and Mcmbcrs of the Elbert Count) Hoard of Education
REPOR r ON COMPLIANCE WI I H RFOUIREMENTS APPLICABLE TO EACH MAJOR
PROGRAM AND ON INTERNAL CON I ROL OVER COMPLIANCE IN ACCORDANCE Wll 11 0MB CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audited the compliance of Elbert County Board of Education with the types ofcomphance requm:ments descnbed m the US (}Jjice of .H11na!!,ement and Bud!!,et (0MB) C1rrnlar A-133 Comp/wme Supplement that are applicable to each of its maJor Federal programs for the year ended June 30. 2002 Ubert County Board of Education's maJor FcderJI program, are 1denufied in the Summary of Auditor\ Results Scct10n of the accompanying Schedule of Findings and Questwncd Costs Compliance with the requirement\ of laws. regulations. contracts and grant, applicable to each of its maJor Federal programs is the respon,ib1lity of 1:.lbcrt County Board of Educat10n', management Our re,pon,ib1lity 1s to cxpre,, an opin10n on Plbert County Board of fducat1on', compliance based on our audn
We conducted our audit of compliance m accordance with auditing standards generally accepted m the United States of America. the standards applicable to financial audit, contained in Government Auditing Standards. 1s,ued by the Comptroller General of the United States. and 0MB Circular Al 33, Auda, C!f Slates. Local Goiernmenls, and Non-Projil Orga111za1w111 Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtain reasonable assurJnce about v.hether noncompliance with the type, of compliance requirements referred to above that could have a direct and matcnal effect on a maJor ~cderal program occurred An audit mcludcs examinmg. on a test baS1s. evidence about the Flbert County Board of Education's compliance with tho,<!
requirements and performing such other proct:durcs a, we considered ncces,ary m the c1rcum,tance,
We believe that our audit provides a reasonable basis for our opinion Our audit doe, not provide a legal determmat1on on Elbert County Board of Education's comphancc with those reqmrement,
2002SA-30

In our opinion. the Elbert County Board of Education complied. in all matenal respects. with the reqmrements referred to ahove that are applicable to each of its maJor Federal programs for the year ended June 30. 2002
Internal Control Over Compliance
The management of Elbert County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of law~. ri:gulauons, contracts and grants applicabk to lederal program~ In planning and perforrning our audit. wc con~1dered Elbert County Board of Lducallon's internal control over compliance with reqmrements that could have a direct and matenal effect on a maJor Federal program in order to deterrnine our auditing procedures for the purpose of expressing our op1mon on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133
We noted certain matters involving the internal control over compliance and !ls operation that we consider to be reportable condition~ Reportable cond1t1ons involve matters coming to our attention relating to s1gmficant dcfic1enc1es in the design or operation of the internal control over compliance that. in our Judgment, could adversely affect tht: Elbert County Board of Educat10n's ability to administer a maJor Federal program in accordance v.1th applicable requirements oflaws. regulations. contracts and grants Reportable cond1t10ns arc descnbed in the accompan)1ng Schedule of Findings and Qucst10ned Costs as items FA-6521-02-03 and FA-6521-02-05
A matenal weaknes~ 1s a cond1t10n in which the design or operat10n of one or more of the internal control components does not reduce to a relatively low level of nsk that noncompliance with the applicable requirements oflaws. regulat10ns. contracts and grants that would be matenal in rclat10n to a maJor 1-ederal program being audited may occur and not be detected within a timely penod by employees in the normal cou= of pcrforrning their assigned funct10ns Our cons1derat1on of the internal control over compliance would not nccessanly disclose all matters in the internal control that might be reportable cond11Ions and, accordingly. would not neccssanly disclose all reportable conditions that arc also considered to be matenal weaknesses However. we believe none of the reportable cond11Ions descnbed above 1s a matenal weakne~~
This report 1s intended solely for the inforrnat10n and u~e ofthe management, members ofthe Elbert County Board of Education. Federal awarding agencies and pass-through entI11cs and 1s not intended to be and ~hould not be used by anyone other than these specified parties
Respectfully ~ubm1ttcd,
~-'1-- J:~:tll.w,0ii9i:ion k.. State Auditor
RWH as 200'.:SA-30

SECTION Ill AUDITEC'S RESPONSE TO PRIOR YEAR rINDINGS AND QUESTIONED COSTS

ELBERl COUNl Y BOARD OF [DUCA rION AUDITEE'S RFSPONSE
SUMMARY SCHEDULE OF PRIOR Yl::AR FINDINGS AND QUESTIONED COSTS YEAR ENDf:D JUNE 30, 2002

PRIOR YEAR FINANCIAL STA1 EM ENT FINDINGS AND QUESTIONED COSTS

FINDING CO1"TROL NUMBER AND STATUS

FS-6521-00-01 FS-6521-01-01 FS-6521-01-02 fS-6521-01-03

Further Acllon Not Warranted Previously Reported Correcllve Acuon Implemented Partially Resolved - See Correcllvc Acuon/Respon,es Unresolved - See Correcllve Act10n/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL LEDGER Failure to Mamtam Separate Accountab1hty Fmdmg Control Number FS-6521-01-02

l he school finance director was new to the pos1\1on dunng fiscal year 2001 and was not aware of this specific reqmrement The expendllures for the current fiscal year (2002) have been allocated to two Capital ProJects Funds

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Asset, Account Group Fmdmg Control Number FS-6521-01-03

l he School D1stnct has contracted with VRM \.1ax1mus to have a fixed as,ets mventory for purpose~ of complymg with current GAAP and with GASB 34.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6521-01-01

Partially Resolved - Sec Correcuve Ac11on/Responscs

CORRECTIVE ACTION/RESPONSES

AC I IVITIES ALLOWED OR UNALLOWED Inadequate Controls over Meal Count and Cla1mmg System hndmg Control Number FA-6521-01-0 I

The school food manager. the school food coordmator and the finance director have met and discussed improvements that could he made m the controls to ensure accurate count,

Sl'.CTION IV FINDINGS AND QUESTIONED COSTS

ELBERT COUN ry BOARD OF EDUCA rION
SCHEDULE or FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

SUMMARY OF AUDITOR'S RESULTS

Type of Report Issued on the Financial Statement~ The auditor's opinion on the [lbcrt County Board of Education's financial s1tement, wa~ qualified for vanous departures from generally accepted accounting principles

" Reportable Cond1t1ons in Internal Control Disclosed bv the Audit of the Financial Statements The audit report for the Elbert County Board of Education disclosed financial statement reportable cond1ttons related to the following control categorie~

L xpcnd1tures/L1ab1l1t1e!>ID1sburscment, General Ledger

Employee Compensa11on General fixed Assets

Of the reportable cond1t1ons de~ribed above. General Fixed Assets 1s con,1dered to be a material weakness

3 Noncompliance Malena! to the Financial Statements The audit of the Elbert County Board of Education d1sclo,cd no instances of noncompliance that were deemed to be material to the financial statements

4 Reportable Conditions in Internal Control Over MaJOr Programs The audit report for the Elbert County Board of Education disclosed reportable conditions in internal control o,er ma1or programs for the following compliance reqmrements

Allowable Costs/Cost Principles

None of the reportable conditions described above arc considered to be material weaknesse,

5 Type of Report Is~ued on Comphancc for Ma1or Program~ The auditor's opinion on the Elbert County Board of Education's report on compliance with requirements apphcable to maJor program~ was unquahfied

6 Audit Findings Required to be Reported by Sect10n 51 0(a) of 0MB Circular A-133 The Elbert County Board of Educat10n', audit disclosed audit findings reqmred to be reported by section SI0(a) ofOMB Circular A-133 These audit findings arc included in section IV of this report

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ELBERT COUNTY BOARD Of EDUCATlON SCHEDULE OF FfNDfNGS AND QUESl lONED COSTS
YEAR [NDED JUNE 30. 2002
SUMMARY OF AUDrI OR'S RESUL"l S
7 Maior Program, federal awards audited as maJor programs arc as tollows 84 0 IO Elementary and Secondar)' lducat1on Act - 11tle 1- Grants to Local Educational Agencies 84 027 lnd1v1duals with D1>ah1lit1es Education Act - Part B - Special Educauon flow 1 hrough 84 173 lnd1v1dual~ with D1sah1ht1es l::ducation Act - Part B - Special Education Preschool 84 173 lnd1v1duals with D1sabihllcs l::ducauon Act - Part B - Special Educauon Capacity Building Improvement
8 Tvpe "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300.000 00
9 Low R1~l Aud1tce Tht: Elbert County Board ofEducauon qualified as a low nsl aud1tee a~ defined by Section 530 of'OMB Circular A-133
11 FINANCIAL STATEMENT FINDfNGS AND QlJESTION[D COSTS
BUDGET AND BUDGET EXECUTION failure to Adopt a Balanced Budget Nonmatenal Noncompliance fmdmg Control Number FS-6521-02-01
A review of the budget process md1cated the Elbert County School District fatk-<l to adopt a balanced budget for its Special Revenue Fund as required by Chapter 32 of the Financial Management for Georgia Local Umts of Admm1strallon (fMGLUA) Chapter 32 ofFMGLUA states, "School board, mu~t adopt balanced budgets" This noncompliance was the result of the School D1stnct', failure to budget adequate revenue m various Lottery and I ederal Program Funds w1thm the Special Revenue rund Appropnate procedure~ should be estabh,hed and implemented by the School D1stnct to en,ure that budgets are prepared m accordance with requirements of FMGLUA
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ELBERT COUNTY BOARD or EDUCATION
SCHEDULE OF FINDINGS AND QUESTIONED COSTS Yl:AR ENDED JUNE 30, 200~
II FINANCIALS I ATEMENT FNDINGS AND QUESTIONED COSTS
1-.XPENDITURES/LIABILITIES/DISBURSEMl,NTS Lack of Documentation for Expenditures Reportable Cond1110n Nonmaterial Noncompliance Amount $ I0. I28 00 Finding Control Number fS-6521-02-02
The 2001-2002 Ycar End Reconc1hat1on Report. subm11ted to the Office of School Readiness for the Lottery Pre-Kindergarten program, included $10.128 00 of expenditure, that had been transferred from the General I- und No supporting documentation could be provided to substantiate the accuracy ofth1s transfer According to the Georgia Pre-Kindergarten Program School Year Prc-K Providers' Operating Guidelines." [he reconc1l iat1on report will include supporting docurnentat10n. 1frequcstcd, to verify that funds were spent in appropriate categories for their intended u,es" This deficiency occurred due to management's failure to comply with the above stated operating guidelines
The School D1,tnct should implement internal controls to en~ure that all expenditures charged to State funded programs are based on 1dent1fiablc transactions. The Office ofSchool Readine,s should review th,~ matter to determine 1f a reclaim of funds 1s appropriate
FMPLOYEE COMPENSATION Failure to Maintain Time and Attendance Record, Reportable Cond11ton Finding Control Number FS-6521-02-03
A review of personnel service cost charged to the New Elbert County Middle School Low Wealth ProJect #0ILW/00S-652-001 funded by the Georgia State Financing and Investment Comm1ss1on (GSFIC) revealed that no time or attendance records were maintained by employees. for capital outlay related ,erv1ces. as required by Chapters 11 and 41 of the financial Management for Georgia Local Umts of Administration (J-MGLUA)
Chapter 11 ofFMGLUA states. "Each employee 1s responsible for maintaining an accurate account of hours worked on a time sheet this time ~heet aids with the d1stnbut1on of payroll co~ts to appropriate cost centers " Chapter 41 state~. "Each capital proJect should be 1dent1fied separate!} ,o that all revenue's. expenditures. assets, hab1ht1es and equity including transfers can be traced to the proJcct" This deficiency in internal controls occurred because the School District disregarded State policy requirements
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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YFAR l::NDl:D Jl'NL 30, 2002
II Fl'.\IANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS EMPLOYEE COM PENSAl ION railurc to Mamtam Time and Attendance Records Reportable Condition l'mdmg Control Number rS-6521-02-03 The School District ,hould implement mtemal controls to ensure that employees. worl.,.mg on GSFIC funded capital outlay projects. prepare time and attendance records that document lime worked on each pro_1cct The Georgia Department of Education ,hould review this matter and determme 1f a reclaim ot funds 1, reqmred GENERAL Ll'DGER Failure to Mamtam Separate Accountab1hty Reportable Cond1t1on Repeated From Pnor Year fmdmg Control Number FS-6521-02-04 The Elbert County School District', capital outlay project act1v1ty. funded m part by the Georgia State Fmancmg and lmestment Comm1ss1on. was not mamtamed and designated by project name and number a, required by Chapter 41 of the Fmancial Management for Georgia Local l.Jmts of Admm1strat1on (FMGLUA) Extensive audit procedures were used to prepare the combmmg financial statements on a project basis ut1hzmg ,ource documentation available Chapter 41 of FMGLUA states. "Each capital project should be 1dent1fied separately so that all revenues. e,pcnd1tures. assets. hab1ht1es and eqmty mcludmg transfers can be traced to the pro_1ect" Th,~ deficiency occurred because management failed to follow fMGLUA gmdance concemmg the proper record mg of capital outlay project activity 1 he School D1stnct ,hould implement mtemal controb to ensure that capital outlay activity 1s accurately 1denufied and reported by project as reqmred
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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS failure to Maintain General Fixed Assets Account Group Reportable Cond1t10n - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-6521-02-05
The Elbert County School D1stnct did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as reqmred by generally accepted accounting pnnc1ples This cond111on results in the general-purpose financial ~tatements of the School D1stnct being incomplete and not in accordance with generally accepted accounllng pnnc1ples Appropnate action ;hould be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group These subs1d1ary records should include an inventory of land, bmldings and eqmpment owned by the School D1stnct and should include, but may not be hm1ted to, date acqmred, acqu1s111on cost. estimated replacement cost, locatwn and de~cnptwn Detailed records should be maintaincd of all add111ons and deletJons to the General Fixed Assets Account Group
Ill Fl-.DERAL AW ARD FINDINGS AND QUESTIONED COSTS
ACTIVITIES ALLOWED OR lJNALLOWED Inadequate Controls over Meal Count and Claiming System Reportable Cond111on U S Department of Agnculture Through Georgia Department of Educatwn Repeated From Pnor Year finding Control Number FA-6521-02-01
The Elbert County School D1stnct's internal controls over accurate meal counts for the Summer Food Service Program (CFDA #IO 559) were determined to be insufficient to en;urc that accurate monthly meab served were reported for reimbursement purposes In ;ome instances, daily meal receipt and actual meal count reports did not reconcile In addition, the daily meal count reports could not be reconciled to the monthly amount, reported for reimbursement As ;ct forth under 7CFR 225 9, the School D1stnct 1s reqmred to support accurate meal counts and records indicating the number of meals served by category and type to be ehg1blc for Federal re1mbur;ement for the Summer Food Service Program This deficiency occurred because management failed to establish internal controls over the accurate reporting of meals served at the numerous Summer Food Ser\1ce Program site locations The School District should establish and implement internal controls to ensure that all meal report.~ for delivery, receipts and meal counts are properly documented to reflect actual number of meals served by category and type before monthly reimbursement requests are submitted
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ELBERT COUNTY BOARD OF EDUCATION SCHEDULJ--. OF FINDINGS AND QUESTIONED COSTS
YEAR ENDl:D JUNE 30. 2002
IJI FEDERAL AWARD fINDINGS AND QUESTIONED COSTS
ACl IVITIES ALLOW[D OR t.;NALLOWED REPORTING Failure to Provide Accurate Meal Counting System Reportable Cond1t1on Nonmatenal Noncompliance U S Department of Agriculture Through Georgia Department of f.ducat10n fmdmg Control Number FA-6521-02-02
The Elbert County School D1stnct's internal controls over accurate meal counts for the Nal!onal School Lunch Program (CFDA #IO 555) were insufficient to ensure that daily meals served were accurately compiled and reported for reimbursement purposes Audit tests of the Fallmg Creek Elementary School's meal service 1dcnt1fied that actual pomt of service meal counts were being changed to reflect agreement with the daily attendance roster prepared by the Pnnc1pal's office
As set forth under 7 CFR 210 7(c), the School D1stnct 1s required to establish a lunch count ~ystem that ensures that the Claims for Reimbursement be based on lunch count~ that are taken dmly at the pomt of service fh1s deficiency occurred because management failed to establish mtemal controls over meal counts at the pomt ofservice The School D1stnct should establish and implement internal controls to ensure that meal counts are represental!vc of actual pomt of service act1v1ty
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not UIIh..:ed Reportable Cond11Ion U S Department of Educauon Through Georgia Department of Educat10n Amount $6,700 00 fmdmg Control Number FA-6521-02-03
A review ofspin funded salanes charged to the lnd1v1duals with D1sab1hues Educal!on AcL Part BSpcc1al Education, flow Through (CFDA #84 027) disclosed that employee time and attendance record~ were not bemg ullhzed as required by Chapter 41 of the Fmanc1al Management of Georgia Local Umts of Admm1stral!on (FMGLUA) This deficiency resulted m a quest10nt:d cost of $6,700 00 fh1s cond11Ion occurred because the School District did not have adequate control procedures in plact: to ensure that all spht funded salaries were charged to proper programs and accounts according to l!me and attendance records The School D1stnct should implement procedures to ensure that all spill funded salanes are charged to the accountmg records accordmg to l!me and attendance records as required by Chapter 41 ofthe FMGLUA The Georgia Department of Educauon should review this matter to deterrnme 1f a refund 1s appropnate.
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ELBERT COUNTY BOARD OF EDUCATION SCH[DULE OF FINDINGS AND QUESTIONED COSTS
YbAR ENDED JUNE 30, 2002
III FEDERAL AWARD FINDINGS ANO OU[STIONED COSTS
ALLOWABLE COSTS/COST PRINCIPLES Time and Attendance Records Not Utihzed Reportable Cond1t1on Nonmatenal Noncompliance LI S Department of Agriculture Through Georgia Department of Education Amount $20,840 00 finding Control Number FA-6521-02-04
/\ review of spill funded salanes charged to the National School Lunch Program (CFDA #10 555) d1~losed that employee time and attendance records were not being utilized as reqmred hy Chapter 41 of the Financial Management of Georgia Local Umts of Administration (FMGLUA) fh1s deficiency resulted ma questioned cost of$20,840 00 lb1s cond11ton occurred because the School D1stnct did not have adequate control procedures in place to ensure that all split funded salanes were charged to proper programs and accounts according to lime and attendance records The School D1stnct should implement procedures to ensure that all spht funded salancs are charged to the accounting records according to ttme and attendance records as rcqmred by Chapter 41 of the FMGLUA fhe Georgia Department of Educatton should review this matter to deterrnme ifa refund 1s appropriate
ELIGll3ILITY
rai Iure to Retain Records
Reportable Cond111on LI S Department of Educat10n Through Georgia Department of Education I inding Control Number FA-6521-02-05
The Elbert County School D1stnct's internal controls over records retcnt10n for the Elementary and Secondary Educatton Act - Title I - Grant~ to Local Educational Agencies (CFDA #84 010) were insufficient to en,ure that records documenting program compliance were kept to facilitate an effective audtt The School District was unable to locate supporting documentatmn 1dcn1Jfymg student rankmg and ehg1b1hty dcterrnmatton hstmgs for those students that part1c1pated m the Target<:d /\ss1stance program offered at Rowman Elementary School Spcc1fically, the School IJ1stnct could not provide documentatmn showing how students served were dcterrnmed to be ehg1ble b=d on ranl..ings using multiple, cducattonally-related, obJective cntena nor could the School D1stnct provide a h~tmg. rankmg the chg1blc students accordmg to need, based on these cntena
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ELBERT COUNTY BOARD OF EDUCATION SCHEDULE OF flNDINGS AND QUESTIONED COSTS
YEAR ENDED JUNF 30, 2002 Ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS ELIGIBILITY Failure to Retain Records Reportable Cond1t1on U S Department of Education Through Georgia Department of Education
rinding Control Number rA-6521-02-05
As set forth under 34 CFR 76.730 and 76 731, the School D1stnct 1s reqmred to keep records to facilitate an dTeetJve audit and to show Its compliance \\1th program reqmrement~ Thi~ deficiency occurred because management failed to implement adequate internal controls for safeguarding student elig1b1hty determination records The School District should establish and implement internal controls to en\ure that all records documenting program compliance are adequately safeguarded and maintained
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