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EMANUEL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - SECTION I FINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED STATEMENTS-OVERVIEW A COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP 2 B COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDITIONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 24 DEBT SERVICE FUND l COMBINING BALANCE SHEET 26 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 27 SCHEDULES I SCHEDULE OF EXPENDITURES OF FEDERAL-AWARDS 28 2 SCHEDULE OF STATE REVENUE 30 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 33 EMANUEL COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS - Page SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION SCHEDULES EARNINGS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 34 5 BY SITE 35 SECTION IT COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL {t",',LI.I \\'. H1:-.10:-s STATE AUDITOR {JQ4) 656 217~ DEPARTMENT OF AUDITS AND ACCOUNTS 25..\ W,1,hmg1on Street.SW.. Sullc 214 A1l.in1a. Georgia 3033..\-8400 February 19, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Emanuel County Board of Education INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Ladies and Gentlemen: We have audited the accompanying general-purpose financial statements of the Emanuel County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Emanuel County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the finm1cial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. 2001ARL-13 As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows: * The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles. * School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements. * The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year, under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed. The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material. In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Emanuel County Board ofEducation as ofJune 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated February 19, 2002, on our consideration of the Emanuel County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. 2001ARL-13 Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Emanuel County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audas of States, Local Governments, and Non-Profit Orgamzations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effect of adjustments, 1fany, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inve11tories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code of Georgia Annotated Section 506-24. Respectfully submitted, ~~~ RWH:gp 2001ARL-13 State Auditor EMANUEL COUNTY BOARD OF EDUCATION EMANUEL COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001 ASSETS Cash and Cash Equivalents Accounts Receivable lnventones Food Donated Commod1t1es Purchased Food Amount Available in Debt Service Fund Amount to be Provided in Future Years For Payment of Bond Debt GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE .PROJECTS FUND FUND $ 2,816,137.52 $ 406,017 03 S 357,073 76 257,284.99 480,948 17 43,340.07 23,675.25 Total Assets $ 3,073,422.51 $ 953.980.52 $-==3=5=7_.o;.;,7=3=76= LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salanes Payable Expired Grant Balances Payable General Obhga!Jon Bonds Payable Total L1ab1ht1es FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Cont1nuat1on of Lottery Program For Debt Service For lnventones Food Donated Commod1lles Purchased Food For Purpose of Bond Issue For State Capital Outlay ProJects Unreserved Designated for Self-Insurance Undes1gnated Total Fund Equity $ 206,890 43 $ 213,595.08 6,312 14 427,715.51 272.74 $ 213,202 57 $ 641,583 33 $ 193,537.98 $ 43,340.07 23,675 25 72,706.97 2,593,974.99 $ 2,860,219.94 $ 245,381.87 $ 312,397.19 $ 357 073 76 357,073 76 Total L1ab1ht1es and Fund Equity $ 3,013i422.s1 $ 953,980.52 $===35;;,;7:1,;,0;,;,7~3,.,7=6 The notes to the general-purpose financial statements are an integral part of this statement. -2- EXHIBIT"A" DEBT SERVICE FUND $ 1,567,514 79 318,951 11 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000 $ 5,146,743 10 S 4,605,787 52 1,057,184 27 1,015,93801 $ 1,886,465 90 5,423,534 10 43,340 07 23,675 25 1,886,465 90 5,423,534 10 77,127.87 26,058.28 1,799,907.31 6,950,092.69 $ 1,886,465 90 $ 7,310,000 00 $ 13,580,942.69 $ 14,474,911 68 $ 420,485 51 $ 336,599 96 434,027.65 415,632.91 272.74 829 51 $ 7,310,000.00 7,310,000.00 8,750,000 00 $ 7,310,000 00 $ 8,164,785.90 $ 9,503,062 38 $ 1,886,465.90 0.00 $ 1,886,465 90 $ 193,537.98 $ 168,763 06 12,583.52 1,886,465.90 1,799,907 31 43,340 07 23,675.25 77,127 87 26,058 28 11,320.47 2.90 72,706 97 3, 196,430 62 74,528 38 2,801,557.51 $ 5,416,156.79 $ 4,971,849 30 $ 1,886,465.90 $ 7,310,000.00 $ 13,580,942 69 $ 14,474 911 68 -3- EMANUEL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDl'TURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Adm1rnstrat1or. Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Debt Service Principal Interest Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (UES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 Food Inventory - Net Change in Penod Donated Commod1t1es Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 21,802,988 59 $ 1,433,316 26 155,942 07 4,466,181 91 3,249,030.76 511,239 53 482,220 14 $ 25,719,200.95 $ 6,381,718.31 $ 17,672,223.20 $ 3,130,332.12 730,007.89 617,548.62 648,225.19 430,781.66 1,666,751.03 93,772.98 1,733,681.28 1,214,362 42 148,941.70 25,000.00 42,970.52 17,767.00 356,861.59 207,192 85 41,143.05 93,610.14 120,439.56 77,221.57 38,206.56 65,162 84 2,213,363.96 45,569.18 $ 25,042,033.49 $ 6,389.103 42 $ 677 167 46 $ -7,385 11 $ $ -500,038 60 $ -500,038.60 $ 38.60 38 60 $ 177,128.86 $ 2,683,091.08 -7,346 51 355,914.53 -33,787.80 -2,383 03 FUND BALANCE JUNE 30 $ 2,860,21994 $ 312,397.19 The notes to the general-purpose financial statements are an integral part of this statement. -4- EXHIBIT "B" CAPITAL PROJECTS FUND DEBT. SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 301 2001 JUNE 30, 2000 $ 23,236,304.85 $ 22,260,865 19 4,622,123.98 4,447,471.38 $ 1,875,037.56 5,124,068.32 5,082,144.27 $ 3,322.13 45,139 78 1,041,921 58 941,708.24 $ 3,322.13 $ 1,920,177.34 $ 34,024,418.73 $ 32,732,189.08 $ 20,802,555.32 $ 19,414,621.69 $ 279,184.75 1,086,869.48 824,741.47 689,368.24 524,391.80 1,787,190.59 93,772.98 1,810,902.85 1,252,568.98 148,941.70 90,162.84 2,256,334.48 342,520.93 1,473,181.39 784,197.74 669,051.53 530,234.73 1,778,327.25 132,316.39 1,830,913.26 1,243,596.65 101,472.59 86,142.67 2,310,238.35 1,819,711.85 $ 1,440,000.00 392,028.75 1,590.00 1,440,000 00 392,028.75 1,590 00 1,310,000.00 452,705.00 $ 279,184.75 $ 1,833,618.75 $ 33,543,940 41 $ 33,936,711 09 $ -275,862 62 $ 86,558.59 $ 480,478.32 $ -1,204,522.01 $ 500,000.00 $ 500,000 00 $ 500,038.60 $ 500,000.00 -500,038.60 -500,000.00 $ 0.00 $ 000 $ 224,137.38 $ 86,558.59 $ 480,478.32 $ -1,204,522.01 132,936.38 1,799,907.31 4,971,849.30 6,185,722.14 -33,787.80 -2,383 03 -9,379.31 28.48 $ 357,073.76 $ 1,886,465 90 $ 5,416,156.79 $ 4,971,849.30 -5- ------------------------------------------- EMANUEL COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL - !NON-GAAP BASIS} GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30. 2001 EXHIBIT "C" GENERAL FUND ACTUAL (BUDGET BUDGET BASIS) REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES s 21,333,294 97 $ 21,802,988 59 314,661 00 155,942 07 3,025,000 00 3,249,030 76 195,625 00 511,239 53 s 24,868,580 97 $ 25,719,200 95 Current I nstruct1on Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures $ 17,795,741 97 s 17,672,223 20 730,028 00 538,096 60 624,776 00 445,087.00 1,597,780.00 102,699 00 1,803,074 00 1,202,100 00 139,482 00 25,000.00 45,892 00 150,000 00 730,007 89 617,548 62 648,22519 430,781 66 1,666,751 03 93,772 98 1,733,681 28 1,214,362 42 148,941 70 25,000 00 42,970 52 17 767 00 $ 25,199,756 57 $ 25,042,033 49 s -331,175 60 $ 677 167 46 OTHER FINANCING SOURCES (USES) Other Sources Other Uses $ Total Other Financing Sources (Uses) $ -500,000 00 $ -500,000 00 $ -500,038 60 -500,038 60 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financmg Uses $ -831, 175 60 $ 177,128 86 FUND BALANCE JULY 1. 2000 2,615,318 70 2,683,091 08 AdJustments Food Inventory - Net Change m Penod Donated Commod1t1es Purchased Food 737 14 FUND BALANCE JUNE 30, 2001 $ 1i784,880 24 $ 2,860,219 94 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS) s 1,333,382 00 $ 1,433,316 26 4,247,517 00 4,466,181 91 444,600 00 482,220 14 $ 6,025,499 00 $ 6,381,718 31 $ 2,962,967 94 $ 3,130,332 12 366,830 00 234,998 86 41,130 00 112,958 00 52,069 00 356,861 59 207,192 85 41,143 05 93,610 14 120,439 56 12,385 00 36,150 00 77,221 57 38,206 56 69,208 00 2,349,000.00 65,162 84 2,213,363 96 4556918 $ 6,237,696 80 $ 6,389,103 42 $ -212, 197 80 $ -7 38511 $ 3860 $ 3860 $ -212,197 80 $ -7,346 51 371,762 48 355,914 53 9,851 13 33,787 80 -2,383 03 $ 169,415 81 $ 312,397 19 The notes to the general-purpose financial statements are an integral part of this statement. - 6. EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Emanuel County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity. FUND ACCOUNTING The School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally acceptect accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types. Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements. The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presente_d in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational acti"vities. Governmental Fund Types include: GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education. -7- EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GE1\TERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqmsition or construction of major capital facilities. DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. ACCOUNT GROUP GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources. Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. Governmental funds are accounted for using the modified accrual basis of accounting under which: Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have ,been satisfied. -8- EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in late May 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion of the compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed. BUDGET The Emanuel County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles. The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end. CASH AND CASH EQUIVALENTS COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial -9- EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES mstitutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. RECEIVABLES Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. PROPERTY TAXES The Emanuel County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 8, 2000 (levy date). Taxes were due on January 31, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 200 I. The Emanuel County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $3,241,035.96 and for school bonds amounted to $498.33. The tax millage rate levied for the 2000 tax year (calendar year) for the Emanuel County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value): School Operations 10.11 mills SALES TAXES Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,874,539.23 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $3,256,579.45 has been collected or on June 30, 2002, whichever occurs first. INVENTORIES FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet - 10 - EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets. GENERAL OBLIGATION BONDS The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. INTERFUND TRANSACTIONS The School District has the following types of interfund transactions: Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. Operating transfers are recorded for all interfund transactions other than reimbursements. MEMORANDUM ONLY -TOTAL COLUMNS Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2: DEPOSITS COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 11 Opercent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. - 11 - EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS Acceptable security for deposits consists of any one of or any combination of the following: (1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, (3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia, (4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia, (5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose, (6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and (7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $7,151,464.14. The amounts ofthe total bank balances are classified into three categories of credit risk: Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.) The School District's deposits are classified by risk category at June 30, 2001, as follows: EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 2: DEPOSITS Risk Category Bank Balance 1 $1,767,514.79 2 5,383,949.35 3 0.00 Total $ 7,151,464.14 Note 3: NON-MONETARY TRANSACTIONS The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories Note 4: RISK MANAGEMENT The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation. The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July I, 1994, to develop and administer a plan to reduce risk of loss on account of general liability, motor vehicle liability, or property damage, including safety engineering and other loss prevention and control techniques, and to administer one or more groups of self-insurance funds, including the processing and defense of claims brought against members of the system. The School District pays an annual premium to the system for its general insurance coverage. Additional coverage is provided through agreements by the system with other companies according to their specialty for property, boiler and machinery, general liability (including coverage for sexual harassment, molestation and abuse) and automobile risks. Payment of excess insurance for the system varies by line of coverage. The School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the General Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated. Changes in the unemployment compensation claims liability during the last two fiscal years are as follows: - 13 - EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 4: RISK MANAGEMENT 2000 2001 Begmnmg of Year L1ab1hty Claims and Changes m Estimates Claims Paid End of Year Ltabthty $ 0.00 $ 2 046.00 $ 2,046.00 $ 0.00 $ 0.00 $ 2,822.00 $ 2,822.00 $ 0.00 The School District participates in the Georgia School Boards Association Workers' Compensation Fund, a public entity risk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Fund for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Fund with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000.00 loss per occurrence, up to the statutory limit. The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Amount Superintendent All Others $ 100,000.00 $ 100,000.00 Note 5: GENERAL LONG-TERM DEBT GE1'.1ERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows: Purpose Interest Rates Amount General Government - Series 1995 General Government - Series 1997 3.90% - 5.65% 3.90% - 4.75% $ 4,375,000.00 2,935,000.00 $ 7.310.000.00 The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows: - 14 - EMANUEL COUNTY BOARD OF EDUCATJON EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 5: GENERAL LONG-TERM DEBT General Obligation Bonds Balance July 1, 2000 $ 8,750,000.00 Deductions Debt Retired 1,440,000.00 Balance June 30, 2001 $ 7.310.000.00 At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 General Obligation Bonds 2002 2003 2004 2005 2006 2007 - 201 I 2012-2016 $ 1,909,882.50 1,974,051.25 427,107.50 452,217.50 455,467.50 2,329,307.50 I ,931,057.50 Total Principal and Interest $ 9.479,091.25 Note 6: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $472,800.49 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies. Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $370,466.59 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $26,720.90 - 15 - EMANUEL COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERALPURPOSE FINANCIAL STATEMENTS JUNE 30, 200 I Note 6: ON-BEHALF PAYMENTS Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $75,613.00 Note 7: SIGNIFICANT COMMITMENTS The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001: Project Unearned Executed Contracts 653-001 653-002 $ 67,713.20 684.54 $ 68,397.74 The amounts described in this note are not reflected in the general-purpose financial statements. Note 8: CONTINGENT LIABILITIES Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position. Note 9: SUBSEQUENT EVENTS On September 18, 2001, the voters of Emanuel County voted in favor of a Special Purpose Local Option Sales Tax referendum for education purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of Emanuel County is as follows: "Shall a one percent sales and use tax be imposed in the Emanuel County School District for a period of time not to exceed twenty consecutive calendar quarters and for the raising of not more than $11,032,000.00 for the purpose of: (a) acquiring, construction and equipping the following capital outlay projects at a total maximum cost of$8,852,000.00 (i) new classrooms at Twin City Elementary (ii) renovation of the existing gymnasium and classrooms at Adnan School of Performing Arts (iii) a new gymnasium, paving and parking lot and building additions at Emanuel County Institute (iv) a new gymnasium, paving, auditorium renovations, parking lot renovations, building additions and heating and cooling systems replacement at Swainsboro High School (v) technology and equipment upgrades throughout the Emanuel - 16 - EMANUEL COUNTY BOARD OF EDUCATJON EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200 l Note 9: SUBSEQUENT EVENTS County School system (vi) connecting roads and bus ramps at Swainsboro School facilities (vii) physical education and sports facilities at all schools including resurfacing Swainsboro High School Track (viii) Swainsboro Middle School flooring renovations (ix) the acquisition, construction and equipping of new maintenance and transportation facilities (x) remodeling, renovating and improving all existing school district facilities, purchase of any necessary real property; acquiring furnishings, equipment and fixtures and paying expenses incident thereto, AND (b) the retirement ofpreviously incurred general obligation debt of the school system in the maximum amount of$2,180,000.00?" Note 10: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts. TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows: Fiscal Year Percentage Contributed Required Contribution 2001 2000 1999 100% 100% 100% $ 1,993,015.24 $ 1,940,790.17 $ 1,923,879.44 - 17 - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---- ------- ---- -- - - - - - - - EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Inventories Food Donated Commod1t1es Purchased Food Total Assets SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 332,464.66 $ 154,196.74 44,734.26 43,340.07 23,675.25 $ 444 214.24 $ 154,196.74 LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Total L1ab1lit1es FUND EQUITY Fund Balances Reserved For Continuation of Lottery Program For Inventories Food Donated Commod1t1es Purchased Food Unreserved Undes1gnated Total Fund Equity Total Liabilities and Fund Equity $ 26,146.83 $ 50,986.32 105,670.22 102,937.68 272.74 $ 131,817.05 $ 154,196.74 $ 43,340.07 23,675.25 245,381.87 $ 0.00 $ 312,397.19 $ 0.00 $ 444,214.24 $ 154,196.74 See notes to the general-purpose financial statements. - 18 - EXHIBIT"E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 486,661.40 $ 510,412.30 $ 367,445.84 $ 68,768.07 480,948.17 335,941.23 43,340.07 23,675.25 77,127.87 26,058.28 $ 367 445.84 $ 68,768.07 $ $ 42,349.43 $ 112,369.20 212,727.21 $ 367 445 84 $ 38,294.94 $ 24,092.73 6,380.40 68 768.07 $ 80,644.37 $ 213,595.08 427,715.51 272.74 722,227.70 $ 10,958.63 166,204.10 415,632.91 829.51 593,625.15 $ 0.00 $ $ 0.00 $ $ 367 445.84 $ $ 12,583.52 $ 0.00 0.00 $ 43,340.07 23,675.25 245,381.87 312,397.19 $ 77,127.87 26,058.28 240,144.86 355,914 53 - 19 - EMANUEL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Capital Outlay Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and Other Financing Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory - Net Change in Period Donated Commodities Purchased Food FUND BALANCE JUNE 30 See notes to the general-purpose financial statements. - 20 - SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 160,360.00 $ 1,079,235.57 1,575,958.59 482,220.14 $ 2,218,538.73 $ 1,079,235.57 $ 881,119.98 64,019.27 4,797.45 $ 2,213,301.72 54,044.15 63,177.11 24,661.13 $ 2,213,301.72 $ 1,091,819.09 $ 5,237.01 $ -12,583.52 $ 5,237.91 $ -12,583.52 343,331.01 12,583.52 -33,787.80 -2,383.03 $ 312,397 19 $====0===00= EXHIBIT "F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ $ 2,890,223.32 193,720.69 $ 1,433,316.26 $ 4,466,181.91 482,220.14 1,382,512.15 4,136,562.60 451,409.51 $ 2,890,223.32 $ 193,720.69 $ 6,381,718.31 $ 5,970,484.26 $ 2,166,154.28 $ 242,481.68 184,685.84 41,143.05 93,610.14 64,691.49 9,173.66 13,545.43 65,162.84 62.24 9 551.27 $ 2,890,261.92 $ $ -38.60 $ 83,057.86 $ 3,130,332.12 $ 2,808,951.99 50,360.64 17,709.56 1,703.92 4,870.80 36,017.91 356,861.59 207,192.85 41,143.05 93,610.14 120,439.56 77,221.57 38,206.56 65,162.84 2,213,363.96 45,569.18 414,684.60 78,604.20 41,046.00 106,154.41 92,433.79 72,156.02 86,816.11 61,142.95 2,271,663.48 12,658.20 193,720.69 $ 6,389,103.42 $ 6,046,311.75 0.00 $ -7,385.11 $ -75,827.49 38.60 $ 0.00 $ 0.00 38.60 0.00 $ 0.00 -7,346.51 $ 355,914.53 -75,827.49 441,092.85 -33,787.80 -2,383.03 -9,379.31 28.48 $ 0.00 $ 0.00 $ 312,397 19 $===-35=5:!:::,9=14==53== - 21 - EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated Total Fund Equity Total Liabilities and Fund Equity REGULAR BOND PROCEEDS $ 357,073.76 $ 0.00 $ 357 073.76 $=====0.=00= $ 357,073.76 $ _ _ _ _o==ooa... $ 357,073.76 $ _ _ _ _0::.,:.::..:00~ $ 357,073.76 $ ==-===0=00= See notes to the general-purpose financial statements. - 22 - EXHIBIT"G" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 0.00 $ 357,073.76 $ 132,933.48 119,661.20 $ 0.00 $ 357,073.76 $ =====2=5=2=,5=94.,.,.=68= $ _ _1.;..;1.;.9""'",6.a..58'"".3..;0'-- $ 11,320.47 2.90 $ 0.00 $ _ _3_5_7,._,0_73_._76_ 121,613.01 $ 0.00 $ 357,073.76 $ _ _1_3_2_,9_36_.3_8_ $ 0.00 $ 357,073.76 $ ==2=5=2=,5=94=.6=8= - 23 - --------- EMANUEL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 REVENUES State Funds Other Funds Total Revenues EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Equipment Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 FUND BALANCE JUNE 30 REGULAR BOND PROCEEDS $ 3 322.13 $ 0.00 $ 3,322.13 $ 0.00 $ 141,196.67 s 66,379.53 11 660.78 $ 219,236 98 $ $ -215,914.85 $ 11,320.47 11 320.47 -11 320.47 $ 451,375.60 $ 451,375.60 $ 235,460.75 $ 121,613.01 -11,320.47 11 320.47 $ 357,073 76 $====;;;,;0,;;;,00== See notes to the general-purpose financial statements. - 24 - EXHIBIT "H" GEORGIA STATE FINANCING AND INVESTMENT COMMISSION TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 2.90 $ 0.00 $ _ __..;:;.3"-",3=22=.-'-'13=- 11,192.95 $ 0 00 $ 3,322.13 $ _ _--'1-'-1"-"1.a..95"-".8.a..;5=- $ 141,196.67 $ 153,753.28 $ 48,627.30 126,327.30 1,599,647.37 11,660.78 $ 48,627.30 $ 279,184.75 $ 1,753,400.65 $ -48 627.30 $ -275,862.62 $ -1,742,204.80 $ 48,624.40 $ 500,000.00 $ 1,922,896.42 -1,422,896.42 $ 48 624.40 $ 500,000.00 $ 500,000.00 $ -2.90 $ 224,137.38 $ -1,242,204.80 2.90 132,936.38 1,375,141.18 $ 0.00 $ 357,073.76 $ ==1=3=2=,9=36=.3=8= - 25 - EMANUEL COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 EXHIBIT"!" ASSETS Cash and Cash Equivalents Accounts Receivable Total Assets FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undes1gnated Total Fund Equity DEBT SERVICE FUND SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30. 2000 $ 1,821.57 $ 1,565,693.22 $ 1,567,514 79 $ 1,476,751 67 196 50 318754.61 318,951 11 323,155.64 $ 2,01807 $ 1,884,447.83 $ 1,886,465.90 $ 1,799,90731 $ 2,018.07 $ _ _oa. ;. o.; ;. ;o;. . 1,884,447.83 $ 1,886,465.90 $ 1,799,907.31 o.oo o.oo o.oo $ 2,018.01 $ 1.884A47.83 $ 1,886,465.90 $ 1,799,907.31 See notes to the general-purpose fii:,anc1al statements. - 26 - EMANUEL COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES DEBT SERVICE FUND YEAR ENDED JUNE 30, 2001 EXHIBIT "J" DEBT SERVICE FUND SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 REVENUES Taxes Other Funds Total Revenues s s 498.33 $ 1,874,539 23 1,875,037 56 $ 1,969,51988 132 80 45,006 98 45,139 78 35,563.25 s s 631 13 $ 1,919,546 21 $ 1,920,177 34 2,005,083 13 EXPENDITURES Debt Service Pnnapal Interest Paying Agent Fees $ 155,000 00 $ 235,247.50 s 1,285,000.00 156,781.25 1 590 00 1,440,000 00 $ 392,028.75 1,590.00 1,310,000 00 452,705.00 Total Expenditures $ 390,247 50 $ 1,443,371.25 $ 1,833,618 75 $ 1,762,705 00 Excess of Revenues over (under) Expenditures $ -389,616 37 $ 476174 96 $ 86,558.59 $ 242,378.13 OTHER FINANCIN~ ~OURCES (USES} Operating Transfers In Operating Transfers Out Total Other Fmanang Sources (Uses) $ 390,247.50 $ $ 390,247 50 $ $ -390,247.50 -390,247.50 $ 390,247.50 $ -390,247 50 0 00 s 380,563.75 -380,563 75 0.00 Excess of Revenues and Other F1nanang Sources over (under) Expenditures and Other Fmanang Uses $ 631.13 $ 85,927.46 $ 86,558 59 $ 242,378 13 FUND BALANCE JULY 1 1,386 94 1,798,520 37 1,799,907.31 1,557,52918 FUND BALANCE JUNE 30 $ 2,018 07 $ 1,884,447 83 $ 11886,465.90 $ 1,799,907.31 See notes to the general-purpose financial statements - 27 - ------------------------------------- - ----- - EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30. 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutnt1on Program Food Services Summer Food Service Program for Children . 10 553 . 10 555 . 10 559 Total Child Nutnt1on Cluster Other Programs Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food D1stnbut1on Program (1) Pass-Through From Office of School Readiness Food and Nutnt1on Program Child and Adult Care Food Program 10 550 10 558 Total U S Department of Agnculture Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sabilit1es Education Act Part B - Special Education Capacity Building Improvement Grant Flow Through Preschool . 84 173 . 84.027 . 84173 Total Special Education Cluster Other Programs Pass-Through From Board of Regents of the University System of Georgia Elementary and Secondary Education Act Tltlell Teacher Quahty Enhancement Grant Pass-Through From First D1stnct Regional Educational Service Agency d/b/a Live Oak Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstralton ProJect Elementary and Secondary Education Act T1Ue I Adm1mstrat1ve Sate Evaluation Even Start Grants to Local Educatlonal Agencies Title II Eisenhower Professional Development Tltlefll Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction 84.336 84 011 84 332 84 010 84 213 84 010 84 281 84 318 84 298 84.340 PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD N/A $ 369,767 30 (2) N/A 1,080,294 00 $ 2,138,114 24 (3) N/A 45,152 20 !2) $ 1,495,213 50 $ 2,138,114 24 NIA 75,187 48 75,187 48 N/A 5,557.61 !2) $ 1,575,958 59 $ 2,213,301 72 N/A $ 8,553.29 $ NIA 517,445.73 NIA 38,678 00 $ 564,677.02 $ 8,553 29 517,445.73 38,678.00 564,677 02 NIA 40,000 00 37,082 20 NIA 14,712 33 14,712 33 N/A 18,740 09 18,740 09 N/A 12,900 00 12,900 00 N/A 185,553.69 185,591 15 (3) NIA 1,203,935 71 1,203,935 71 NIA 19,129 32 19,129 32 N/A 125,000 00 125,000 00 N/A 41,553.00 41,553 00 NIA 164,340 00 164,341 14 (3) 28 EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Education, U S Department of Other Programs Pass-Through From Georgia Department of Education Goals 2000 State and Local Educallon Systemic Improvement Grants Safe and Drug-Free Schools and Communilles Stewart B McKinney Homeless Assistance Act Education for Homeless Children and Youth Vocational Education - Basic Grants to States High School Program Basic Grant Total U S. Department of Education Defense, U S Department of Direct Department of the Army R O.T.C Program Health and Human Services, U S Department of Direct Early Head Start Program Justice, U S Department of Pass-Through From Office of the Governor Children and Youth Coord1nat1ng Council Youth Ennchment CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 84 276 84 186 84 196 84 048 NIA $ 150,000 00 $ NIA 19,602 00 NIA 12,400 00 150,000 00 19,602 00 12.400 00 N/A 86,308 00 86,308 00 $ 2,658,85116 $_-=-2:..;;.6.;;..;55;;.;,;,9:;.;.7....;.1....:;96~ OFA 93600 $ 75,008 30 $ _ _ _7~5:;;..,0:;..:0c;;,8....:;3~0 $ 303,012.25 $ _ _ _30_3-'-,0_1_2_2_5 16 540 NIA $ 9,293 68 $ _ _ _9-'-,2_9_3_6_8 Total Federal Financial Assistance NIA = Not Available $ 4,622.123 98 s==-5.2.5.~6-==.5=8=7=9~1 Notes to the Schedule of Expenditures of Federal Awards ( 1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod1t1es received and/or consumed by the system dunng the current fiscal year (2) Expenditures for the Child and Adult Care Food Program, Summer Food Service Program for Children and the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program (3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source MaJor Programs are identified by an asterisk (*) in front of the CFDA number The School D1stnct did not provide Federal Assistance to any Subrecip1ent. The accompanying schedule of expenditures of Federal awards includes the Federal grant act1v1ty of the Emanuel County Board of Education and 1s presented on the modified accrual basis of accounting which 1s the basis of accounting used in the presentation of the general-purpose financial statements See notes to the general-purpose financial statements - 29- EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001 SCHEDULE "2" AGENCY/FUNDING GRANTS Education, Georgia Department of Quality Basic Educa!Jon Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Early lnterven!Jon (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1h1Jes Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Altemat1ve Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnncipal Supplements Vocational Supervisors Migrant Educabon Mid-term AdJustment Hold-Harmless Education Equahzallon Funding Grant Food Services Vocational Education Other State Programs Apprenbcesh1p Program At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers Next Generabon Schools PayforPenormance Preschool Handicapped Program Remedial Summer School Teachers' Rebrement Lottery Programs Computers in the Classroom Office of School Readiness Pre-Kindergarten Program GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL s 979,644.00 101,255.00 2,759,309.00 409,737 00 1,414,204.00 134,516.00 2,280,777.00 1,990,580.00 772,246.00 52,481.00 1,203,639.00 1,328,734.00 427,737.00 102,030.00 276,013.00 185,429 00 434,209.00 122,207.00 2,858,954.00 $ 979,644.00 101,255 00 2,759,309 00 409,737.00 1,414,204 00 134,516 00 2,280,777.00 1,990,580.00 772,246.00 52,481.00 1,203,639.00 1,328,734.00 427,737 00 102,030.00 276,013 00 185,429.00 434,209.00 122.207.00 2,858,954.00 0 704,008.00 192,126 00 103,381.00 19,540.00 29,757.00 512.00 75,837.00 1,894,216.00 $ 95,844.54 160,360.00 35,000 00 8,865.91 370,466.59 5,000.00 97800 75,000.00 140,000.00 59,558.00 2,531.65 26,720 90 95,487.00 704,008.00 192,126.00 103,381.00 19,540 00 29,757.00 512.00 75,837.00 1,894,216 00 160,360.00 95,844.54 35,000 00 8,865.91 370,466.59 5,000.00 978.00 75,000.00 140,000 00 59,558 00 2,531.65 26,720.90 95,487.00 983,748 57 983,748.57 - 30 - EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30. 2001 SCHEDULE "2" AGENCY/FUNDING GRANTS Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Education, Georgia Department of Georg1a0s Reading Challenge Reading First Program Human Resources, Georgia Department of Extended Day and Summer Childcare Services Family Connection Substance Abuse Prevention and Treatment Office of the Governor Georgia Council for the Arts Georgia Challenge Grant Office of School Readiness Head Start Supplemental Funding GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL s 75,613 00 $ 75,613 00 42,332.00 $ 48,932 00 10,010 78 50,000 00 48,760 00 42,332 00 48,932 00 10,010.78 50,000.00 48,760.00 12,000.00 36,017 91 12,000.00 36,017 91 S 21,802,988.59 $ 1.433.316 26 $ 23,236,304 85 See notes to the general-purpose financial statements - 31 - EMANUEL COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30. 2001 SCHEDULE "3" PROJECT ORIGINAL ESTIMATED COST Pl CURRENT ESTIMATED COSTS !2) AMOUNT EXPENDED IN CURRENT YEAR !3! !4! AMOUNT EXPENDED IN PRIOR YEARS !3) PROJECT STATUS Acqu1nng, constructing and equipping the following capital outlay projects Adnan School, new Twin City Elementary School, renovation of the gymnasium at the exIstIng Adrian School, renovations, additions and improvements to Emanuel County Institute and Swainsboro High School, new school maintenance and transportation facilities, site preparation for a new Twin City Elementary School, pavement, equipment and site preparation for school bus loading and unloading areas at the schools located In the City of Swainsboro $ 8,705,000 00 $ 9,376,237 20 $ 22.802 90 $ 9,353,434 30 Completed Retirement of Debt 1,895,000 00 11895,000 00 390,247.50 961,570 00 Ongoing $ 101600,000 00 $ 11,2711237 20 $ 413,050 40 $ 101315,004 30 (1) The School D1stnct"s onginal cost estimate as specified in the resolution calling for the ImposItIon of the Local Option Sales Tax (2) The School D1stnct's current estimate of total cost for the projects Includes all cost from project inception to completion (3) The voters of Emanuel County approved the ImposItIon of a 1% sales tax to fund the above projects and retire associated debt Amounts expended for these projecls may include sales tax proceeds, state, local property taxes and/or other funds over the hie of the projects (4) In add1t1on to the expenditures shown above. the School D1stnct has incurred interest to provide advance funding for the above projects as follows Pnor Years $ 650,169 17 Current Year 156,781.25 Total $ 8061950 42 See notes to the general-purpose financial statements 33- EMANUEL COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE) EARNINGS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001 SCHEDULE "4" DESCRIPTION ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL Direct Instructional Programs Kindergarten Program s Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementa;y Grades (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1ht1es Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Allemat1ve Education Program 1,053,302 00 $ 108,868 00 2,966,776 00 440,545 00 1,520,535 00 144,630 00 2,452,264.00 2,140,248 00 830,30g 00 3,239,100 00 885,137 23 $ 220,509 86 2,463,341 05 866,045 21 1,885,717 93 166,237 78 2,725,971 78 2,939,605 81 710,658.05 109,701 00 296,767 00 199,371 00 1,213,323 30 1,057,148 35 209,828 76 127,982 03 15,896 36 318,604 17 s 8,963 66 2,936 94 38,204 72 4,968 78 21,063 87 4,063 94 44,919 33 141,620.80 75,658 28 894,100 89 223,446 80 2,501,545 77 871,013 99 1,906,781 80 170,301 72 2,770,8g1 11 3,081,22661 786,316 33 335 04 9,028 63 13,089 08 178 78 2,535 31 2,343 44 287 44 335 04 1,222,351 93 1,070,237 43 210,007 54 130,517 34 18,239 80 318,891 61 TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 15,502,416 00 $ 15,806,007 67 $ 370,198 04 $ 16,176,205 71 Media Center Program Staff and Professional Development 466,856 00 131,397 00 533,835 70 33,907 00 96,778 15 98,612 72 630,613 85 132,519.72 TOTAL QBE FORMULA FUNDS $ 16,100,669 00 $ 16,373,750 37 $ 565,588 91 $ 16,939,339 28 (1) Compnsed of State Funds plus Local Five Mill Share See notes to the general-purpose financial statements 34 EMANUEL COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) EARNINGS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" SITE Twin City Elementary School Swainsboro High School Swainsboro Middle School Swainsboro Primary School Swainsboro Elementary School Adrian School of Performing Arts Emanuel County Institute Emanuel County Preschool Center CrossRoads Alternative Central Office (Alternative Education Program) TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 1,795,985.00 $ 1,780,742.72 2,991,396.00 3,401,785.61 2,689,406.00 2,783,807.65 2,627,919.00 2,662,044.96 2,719,898.00 2,689,221.67 676,230.00 649,363.01 1,802,211.00 2,136,398.67 988.92 71,689.28 199.371.00 163.22 $ 15,502,416.00 . $ 16,176,205.71 See notes to the general-purpose financial statements - 35 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS l.1 1'iM:.1.1 \V. H1r-.. ror-.. STATE AUDITOR 1404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 2S--l Wa,hmg1on S1rcc1. SW. Sunc 214 A1lanta. Gl!orgia 3m34-X400 February 19, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Emanuel County Board of Education REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Ladies and Gentlemen: We have audited the financial statements of Emanuel County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated February 19, 2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with auditing standards gcner.ally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures. Compliance As part of obtaining reasonable assurance about whether Emanuel County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 2001YB-41 Internal Control Over Financial Reporting In planning and performing our audit, we considered Emanuel County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in our judgment, could adversely affect Emanuel County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6531-01-01. A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6531-01-01 to be a material weakness. This report is intended solely for the information and use of the management, members of the Emanuel County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. Respectfully submitted, ~.