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FANNIN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES .

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

SCHEDULES

1 SCHEDULE OF EXPENDITIJRES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE

Page
2
4 7 8
20 22
24
26 28 29 31

FANNIN COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

SCHEDULES

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEWITHGOVERNMENTAUDITINGSTANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133

SECTION ID AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RussELL W. HtNTON
STATE AUDITOR (404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ,hrngton S1rcc1. SW.. Su11c 214 AtlJnlJ Georgia 30334-84()(1
March 5, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Fannin County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Fannin 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 Fannin 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 financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our 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.
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
2001ARL-13

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 include~ to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects 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 Fannin County Board ofEducation as ofJune 30, 2001, and the results ofits 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 March 5, 2002. on our consideration ofthe Fannin County Board ofEducation'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.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Fannin County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits E through I) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required byU. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effect of 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 ofthe food service inventories 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.
2001ARL-13

A copy ofthis report has been filed as a pennanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:as 2001ARL-13

State Auditor

FANNIN COUNTY BOARD OF EDUCATION
p

FANNIN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30. 2001

~ Ca~h and Cash Equivalents
Investments
Accounts Receivable
Due from Other Funds
lnventones Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided 1n Future Years For Payment of Bond Debt Capital Lease Agreements Compensated Absences
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2,377,742.80 $

178,838.93 $ 2,407,568.99

7,529,610 64

2,665,638 68

154,980 08

503,372 13

31,609.32 17,711 49

s $ 510431381 48

3831139 82 $ 10i4401551 76

bl~BILITll;S A~D FU~D EQUIIY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Due to Other Funds Funds Held for Others Capital Lease Agreements Compensated Absences General ObJ1gat1on Bonds Payable
Total Llabd1lles
FUND ECUIIY
Fund Balances Reserved
For Conllnuabon of Federal Programs
For Debt Service For lnventones
Food Donated Commodities Purchased Food
For Purpose of Bond Issue
For SPLOST ProJects Unreserved
Undes1gnated
Total Fund Equity

$ 1,056,393 15 $ 1,871,455.81

97,531.23 190,083.40
131 95

$

s 2,927,848 96

287,746 58

$

870.39

$ 2,115,532.52
s s 2, 115,532 52

31,609 32
17,711.49
s

9,627,073.53 503,372 13

45,202 04

310,10610

95,393 24 $ 10,440,551.76

Total Llabllrt1es and Fund Equity

$ 510431381 48 $

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

-2-

3831139 82 $ 1014401551 76

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

!Memorandum Onl:tl

JUNE JO, 2001

JUNE 30, 2000

$

27,188 52 $

000

$ 4,991,339 24 $ 2,117,630 72

7,529,610.64

3,323,990 89

2, 130,867 94

18,685 74

$

27,188 52

31,609.32 17,711 49
27,18852

29,200.96 14,179 97

9,472,811.48 444,64567 435 708 04

9,472,811.48 444,645.67 435,708 04

406,37044 370,890 55

$

271188 52 $

000 $

1013801353 71 $ 2612741615 29 $ 510871826 32

s 1,153,924.38 $

565,596.96

2,061,539.21

1,801,956.59

131.95

8,645.02

18,685 74

91.88

$

444,64567

444,645.67

406,370.44

435,708.04

435,708 04

370,890.55

9,500,000.00

9,500,000 00

$

s 10,380,353.71

13,595,949.25 $

3,172,237.18

$

27,18852

s 0.00

s

27,188.52 $

$

271188 52 $

0.00 000

s

870.39 $

27,188.52

500.00

31,609.32 17,711 49 9,627,073.53 503,372 13
2,470,840 66
s 12,678,666 04 $

29,200.96 14,179.97
1,871,708 21 1,915,589 14

s 0.00

1013801353 71 $ 2612741615 29 $ 510871826 32

-3-

------------------------------- -- --~=~----
FANNIN 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
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of lnstrucllonal Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Food Services Operatron
Capital Outlay Debt Service
Pnncipal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
QTHfiR FINANCIN@ 0!,!RCES (!,!SES)
Accrued Interest on Bonds Sold Proceeds from General Obhgabon Bonds
Par Value Capital Leases Operatrng 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 m Penod Donated Commod11tes Purchased Food
FUND BALANCE JUNE 30
The notes to the general-purpose financial statements are an integral part of this statement.
-4-

GENERAL FUND

SPECIAL REVENUE
FUND

$ 13,624,075.14 $ 2,511.15
6,021,125.88 901,622 63
$ 20,549,334.80 $

144,870.54 1,949,757.14
392,058 06
2,486,685 74

$ 13,445,180.89 $
543,519 61 285,869.06 519,751.20 367,217.89 1,453,093.14 150,123.46 1,636,199.70 1,286,419.22 43,671.48
1,782.78

1,252,364.86 9,918 47
59,423.68 10,830.68
206.92 1,385,795.81

171,692.77 23,424.08

$ 19,927,945.28 $

$

621,389.52 $

2,718,540 42 -231,854.68

$

209,968.00

$

-381,210 57

$ -171,242.57 $

217,210.57 217,210.57

$

450,146.95 $

1,665,385.57

-14,644.11 104,097.47

2,408.36 3,531.52

$ 211151532.52 $ -====-==-9=5mcl3:a93;,;.=24=-

EXHIBIT "B"

CAPITAL PROJECTS
FUN0

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

503,372.13

286,485.85 $

$

789,857.98 $

$ 588.52

13,768,945.68 $ 1,952,268.29 6,524,498.01 1,580,755.06

12,562,026.60 1,858,596.51 5,470,153.25 1,108,94760

588.52 $ 23,826,467.04 $ 20,999,723.96

$

159,412.32

$

$

159,412.32 $

$

630,445.66 $

$ 14,697,545.75 $ 12,948,466.79

553,438.08 345,292.74 519,751.20 378,048.57 1,453,093.14 309,535.78 1,636,199.70 1,286,626.14
43,671.48 1,387,578.59

823,994.30 400,971 44 479,473.91 332,755.42 1,401,213.61 141,613.15 1,468,039.26 1,179,358.99
38,839.57 1,279,939.25
10,000.00

0.00

171,692.77

175,510.91

23,424.08

16158.77

0.00 $ 22,805,898.02 $ 20,696,335.37

588 52 $ 1,020,569.02 $

303,388.59

$ $ 9,500,000.00
164,000.00
$ 9,664,000.00 $
$ 10,294,445.66 $ 146,106.10

26,600.00 $ '26,600.00 $

26,600.00
9,500,000.00 209,968.00 $ 381,210.57 -381,210.57
9,736,568.00 $

283,556.00 117,006.45 -117,006.45
283,556.00

27,188.52 $ 10,757,137.02 $

0.00

1,915,589.14

586,944.59 1,319,722.14

2,408.36 3,531.52

9,204.46 -282.05

$ 10,440,551.76 $

27,188.52 $ . 12,678,666.04 $ 1,915,589.14

.5.

FANNIN 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

$ 12,536,043 61 $ 13,624,07514

397,600 00

2,51115

5,536,472 00

6,021,125 88

75,000 00

901,622 63

Total Revenues

$ 18,545,115 61 $ 20,549,334 80

E2SPl;NDITURES

Current Instruction Support Services Pupil Services Improvement of lnstrucbonal Services Educabonal Media Services General Admm1strabon School Admm1strat1on Business Adm1mstrabon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operabon
Debt Service

$ 13,080,307 79 $ 13,445,180 89

740,565 45 312,012 76 517,591 00 329,099 64 1,392,700 00 152,946 36 1,573,431 96 1,282,124 00
50,000 00

543,519 61 285,869 06 519,751 20 367,217 89 1,453,09314 150,123 48 1,638,199 70 1,286,419 22
43,671 48

1,141 00

1,782.78 195,116 85

Total Expenditures

$ 19,431,919 96 $ 19,927,945 28

Excess of Revenues over (under) Expenditures

$

-886,804 35 $

621,389 52

OTHER FINANCIN~ SQ!.,!RCES (U~ESl

Other Sources Other Uses

$

209,988 00

$

-384,500 00

-381,210 57

Total Other Fmancmg Sources (Uses) $

-384,50000 $

-171,242 57

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ -1,271,304 35 $

450,146 95

FUND BAf.ANCE JULY 1 2000
Adiustments Food Inventory - Net Change in Period
Donated Commod1bes Purchased Food

1,893,602 78 38,711 48

1,685,385 57

EUND BE!LANCE JYNE ~Q. 20Ql

$

659 009 91 $ 211151532 52

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

144,809 00 $

1,588,849 31

347,080 00

$ 2,080,738 31 $

144,870 54 1,949,757 14
392,058 06
2,486,685 74

$

997,914 76 $

1,252,364 86

55,357 00 23,408 00

9,918 47 59,423 68

16,673 96

10,830 88

1,000 00
1,950 00 1,347,920 39

20892 1,385,795 81

$ 2,444,224 11 $ 2.718,540 42

$

-363,485 80 $

-231 ,854 68

$

220,500 00 $

217,210 57

$

220,50000 $

217,210 57

$

-142,985 80 $

100,852 94

5,997 23

-14,64411 104,097 47
2,408 36 3,531 52

$

-36 13563 $

951393 24

The notes to the general-purpose financial statements are an integral part of lh1s statement -7 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Fannin County Board ofEducation (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District 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 accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-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 acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. This fund includes:
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding, accrued compensated absences and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
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"
-9 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 l

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 t~es, 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.
Expenditures are generally recognized when the related fund liability is incurred.
A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically 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 are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Fannin County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with 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.

- 10 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
( 1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables
- 11 -

- - -- - - -- -- --- = ~ - - - -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Fannin County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 20, 2000 (levy date). Taxes were due on December 20, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Fannin 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 $5,948,174.43.

The tax millage rate levied for the 2000 tax year (calendar year) for the Fannin County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

~mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $503,372.13 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $16,446,627.87 has been collected or on March 31, 2006, 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 arer_~_~orded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

COMPENSATED ABSENCES

Compensated absences represent obligations of the School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation

- 12 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose financial statements.
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 ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa 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.
- 13 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
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 AtJune 30, 2001, the bank balances were $9,636,180.31. 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:

- 14 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 267,802.67

2

8,266,457.22

3

1.101.920.42

Total

$ 9,636,180.31

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $3,390,918.49 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy of the State of Georgia, Office of . Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state govemment investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.

- 15 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 has obtained commercial insurance for risk ofloss associated with assets. The School District has neither significantly reduced coverage for this risk nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years.

The School District participates in the Georgia School Boards Association Risk and Insurance Management System, a public entity risk pool organized on July 1, 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 ofthe 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 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. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

1,155.42 $

1,155.42 $

0.00

$

0.00 $

0.00 $

0.00 $

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

- 16 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 4: RISK MANAGEMENT

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 Other Employees

$ 200,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Fannin County Board of Education has entered into various lease agreements as lessee for buses. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception.

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

Purpose

Interest Rate

Amount

General Government - Series 2000

4.80% $ 9.500.000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as follows:

Balance July I, 2000
Add1t1ons Capital Leases Annual Leave Earned and Ut1hzed (Net) G. 0. Bonds
Deducnons Payments
Balance June 30, 2001

Capital Leases

Compensated Absences

General Obligation
Bonds

Total

$ 406,370.44 $ 370,890.55 $

0.00 $ 777,260.99

209,968 00

64,817.49

9,500,000.00

209,968.00
64,817.49 9,500,000.00

171.692 77

171.692.77

$ ~~56Z $ 435 708,04 $ 9 500 000 00 $10 380 353 71

- 17 -

---- --- -------~-~----

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 5: GENERAL LONG-TERM DEBT

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
2002 2003 2004 2005 2006 2007
Total Pnnc1pal and Interest
Deduct. Imputed Interest
Net Present Value of Future M1mmum Lease Payments
Note 6: ON-BEHALF PAYMENTS

Capital Leases

General Obhgat1on
Bonds

Total Debt

$ 183,190.22

$ 183,190.22

159,270.22 $ I, 125,000.00 1,284,270.22

I 10,933.18 1,405,000.00 1,515,933.18

47,315 45 1,895,000.00 1,942,3 I 5 45

2,390,000.00 2,390,000.00

2,685,000 00 2,685,Q00.OO

$ 500,709.07 $ 2 ~QQ QOO,QQ $ IQ OOQ 109 OZ

56,063 40

$ 444 645 61

The School District has recognized revenues and expenditures in the amount of $359,117.86 for health insurance and retirement contributions paid on the School District's behalfby 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 $277,849.94

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $30,858.92

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$50,409.00

Note 7: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

- 18 -

FANNIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: ACCUMULATED EMPLOYEES' LEAVE

The employees of the Fannin County School system earn 1 1/4 working days ofsick leave for each completed school month of service up to a maximum accumulation of 120 days. At retirement, employees are paid for all unused sick leave, up to the maximum accumulation at the rate ofone-half the amount paid to substitute personnel. When the Superintendent terminates employment, he may be paid at his daily rate for all unused sick leave up to a maximum of 40 days. See Note 1 Compensated Absences

Note 9: 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%

$ 1,394,892.84 $ 1,299,514.25 $ 1,280,731.97

- 19 -

FANNIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPE~ALREVENUEFUND JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
lnventones Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

163,333.24 $

14.46

14,420.74

31,609.32 17711.49

Total Assets

$

227,074.79 $ ===-=====14==46==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 20-

$

46,520.16

86,031.78

$

$

132,551.94 $

14.46 14.46

$

31,609.32

17,711.49

45,202.04 $

0.00

$

94,522.85 $

0.00

$

227,074.79 $ -=======--=======-=14=:;,;;46=

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

15,491.23 $

178,838.93 $

143,469.27

140,559.34

154,980.08

248,628.35

18,685.74

31,609.32 17 711.49

29,200.96 14 179.97

$

156,050.57 $

383,139.82 $ -====4=54-1,-=64=.2=9=

$

124,412.93

$

51,011.07 $

97,531.23

58,844.11

104,051.62

190,083.40

158,164.76

117.49

131.95

8,645.02

$

155,180.18 $

287,746.58 $

350,066.82

$

870.39 $

870.39 $

500.00

31,609.32 17,711.49

29,200.96 14,179.97

0.00

45,202.04

60,216.54

$

870.39 $

95,393.24 $

104 097.47

$

156,050.57 $

383,139.82 $ =-===-4=54===1,.6..4....=29=

- 21 -

FANNIN 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 General Administration Student Transportation Services Food Services Operation
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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

80,596.00 $

708,703.85

392,058.06

$ 1,181,357.91 $

64,274.54 64,274.54

$

27,787.17 $

64,274.54

1,385,795.81

$ 1,413,582.98 $

$

-232,225.07 $

64,274.54 0.00

217,210.57

$

-15,014.50 $

103,597.47

2,408.36 3,531.52

0.00 0.00

$

941522.85 $ ==-===-==o=-=oo==

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

EXHIBIT"F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

144,870 54 $

236,053.20

$ 1,241,053.29

1,949,757.14

1,850,100.37

392,058.06

388,548.60

$ 1,241,053.29 $ 2,486,685.74 $ 2,474,702.17

$ 1,160,303.15 $ 1,252,364.86 $ 1,279,643.97

9,918.47 59,423.68 10,830.68
206.92

9,918.47 59,423.68 10,830.68
206.92 1,385,795.81

21,039.41 42,581.94 20,004.20
1,260,072.11

$ 1,240,682 90 $ 2,718,540.42 $ 2,623,341.63

$

370.39 $ -231,854.68 $ -148,639.46

217,210.57

114,406.45

$

370.39 $

-14,644.11 $

-34,233.01

500.00

104,097.47

129,408.07

2,408.36 3,531.52

9,204.46 -282.05

$

870.39 $

95,393.24 $ ==1=04==0=97=-.4-==7=

- 23-

FANNIN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Purposes of Bond Issue For SPLOST Projects
Unreserved Undesignated
Total Fund Equity

REGULAR

BOND PROCEEDS

$

310,106.10 $ 2,097,462.89

7,529,610.64

$

310,106.10 $ 9,627,073.53

$ 9,627,073.53

$ _ _3_1_0~,1_0_6_.1_0_

0.00

$

310,106.10 $ 9,627,073.53

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

JUNE 301 2001

JUNE 30, 2000

$ 2,407,568.99 $

146,106.10

7,529,610.64

$

503,372.13

503,372.13

$

503,372.13 $ 10A40,551.76 $ ==1=4=6=-1,=06==10=

$ 9,627,073.53

$

503,372.13

503,372.13

0.00

310,106.10 $ _ _1;..;4..;a.6""",1.a.06".-....;1_0 _

$

503,372.13 $ 10A40,551.76 s-====-==1=4=6=,1=-06==10...

- 25-

-------------~==-----
FANNIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES Taxes Other Funds Total Revenues
EXPENDITURES Current Support Services Business Administration
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES
Proceeds from General Obligation Bonds Par Value
Operating Transfers In Total Other Financing Sources
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00

$

286,485.85

$

0.00 $

286,485.85

$

0.00 $

159,412.32

$

0.00 $

127,073.53

$ 9,500,000.00

$

164,000.00

$

164,000.00 $ 9,500,000.00

$

164,000.00 $ 9,627,073.53

146,106.10

0.00

$

310,106.10 $ 9,627,073.53

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

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

503,372.13 $

503,372.13 $

0.00

286,485.85

$

503,372.13 $

789,857.98 $ _ _ _ _0__."'--00'-

$ _ _ _ _o_.o_o_ $

$

503,372.13 $

159,412.32 $ _ _ _ _o=.o=oa.... 630,445.66 $ _ _ _ _o=.o=oa....

$ 9,500,000.00 164,000.00 $
$ 9,664,000.00 $

2,600.00 2,600.00

$

503,372.13 $ 10,294,445.66 $

2,600.00

0.00

146,106 10

143,506.10

$

503,372 13 $ 10,440,551.76 $==1=-4=6=,1=06===10=

- 27-

FANNIN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30. 2001

EXHIBIT"!"

RETIREE HEALTH INSURANCE FUND ASSETS
Cash and Cash Equivalents
LIABILITIES Funds Held for Others

BALANCE JUNE 30, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

91 88 $

1321754 $

13,309 42 $ ===-=0=0=0-=-

$

91.88 $

13 217.54 $

13,309 42 $===-==o...,.oo==

See notes to the general-purpose financial statements.

-28-

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agnculture, U. S. Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnbon Program Food Services School Breakfast Program National School Lunch Program

. 10 553
. 10 555

NIA $ 250,605.00

(2)

NIA

390,804 27 $ 1,346,288 40 (3)

Total Child Nutnt1on Cluster

$ 641,409 27 $ 1,346,288.40

Other Programs

Pass-Through From Georgia Department of Educabon

Food and Nutnbon Program

Food Distnbubon Program (1)

10.550

NIA

Pass-Through From Office of Treasury and Fiscal Services

National Forest Reserve Funds

10.665

NIA

67,294.58 2,51115

67.294.58 (4)

Total U.S. Department of Agriculture

$ 711,215.00 $ 1,413,582.98

Educabon, U S. Department of Speaal Educabon Cluster Pass-Through From Georgia Department of Educabon Individuals with Disabilities Educabon Act Part B - Speaal Educabon Capacity Building Improvement Flow Through Preschool

. 84.027 . 84.027 . 84173

NIA

$

7,498 00 $

NIA

278,49460

NIA

64,048.54

7,498 00 278,494.60 64,048.54

Total Special Education Cluster

$ 350,04114 $

350,04114

Other Programs

Pass-Through From Georgia Department of Education

Comprehensive School Reform Demonstration Project

84.332

NIA

Elementary and Secondary Education Act

Titlei

Grants to Local Educabonal Agencies

84.010

NIA

Trtiell

Eisenhower Professional Development

84.281

NIA

Tille Ill

Technology Literacy Challenge Fund Grants

84.318

NIA

Title VI

Class Size Reduction

84.340

NIA

lnnovabVe Educabon Program Strategies

84.298

NIA

Safe and Orug-Fi;ee Schools

84.186

NIA

Vocational Educabon - Basic Grants to States

High School Program

Basic Grant

84.048

NIA

92,708 86
498,916 84 22,TT6.23 136,337.03 80,05564 21,545.00 3,667.12
35,00543

92,708.86
498,916 84 21,905.84 136,837.03 80,055.64 21,545.00 3,667.12
35,00543

Total U.S. Department of Educabon

$ 1,241 ,053 29 $ 1,240,682.90

Total Federal Financial Assistance
NIA = Not Available

$ 1,952,268 29 $ 2,654,265 88

-29-

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food D1strlbubon Program represents the Federally assigned value of nonmonetary assistance for donated commodllles received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 NatJonal School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds Expendrtures are not maintained by fund source.
(4) Funds earned on this program do not require reportJng of expenditures.
MaJor Programs are 1dent1fied by an astensk (*) in front of the CFDA number
The School Distnd did not provide Federal Assistance to any Subreop1ent
The accompanying schedule of expenditures of Federal awards includes the Federal grant actMty of the Fannin County Board of Educallon and 1s presented on the modified acaual basis of accounting which 1s the basis of accounting used in the presentation of the general-purpose finanaal statements

See notes to the general-purpose finanaal statements.

- 30-

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30. 2001

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct lnstructJonal Cost Kindergarten Program Kindergarten Program - Ear1y Intervention Program
Pnmary Grades (1-3) Program Pnmary Grades - Ear1y Intervention (1-3) Program Upper Elementary Grades (4-5) Program
Middle School (6-8) Program
High School General Education (9-12) Program Vocational Laboratory (9-12) Program
Students with Disabilities Category I Category II category Ill category 1v categoryV Speaal Education - Supplemental Speech
Gifted Student - category VI Remedial Education Program Altemabve Education Program Media Center Program Staff and Professional Development Indirect Cost categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Prinapal Supplements Vocational Supervisors Deferred Summer Salaries (Pnor Year) Deferred Summer Salanes (Current Year) Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Computers in the Classroom
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACT Education, Georgia Department of Quality After School Programs

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 635,229.00 186,894.00
1,592,763.00 591,107.00
1,019,926.00 1,755,470.00 1,373,629 00
599,985.00
76,181.00 298,555.00 721,876.00 138,384.00 49,049.00
2,342.00 91,721.00 40,470.00 133,946.00 289,679.00 74,211.00 1,865,674.00

$

635,229.00

186,894 00

1,592,763.00

591,107.00

1,019,926.00

1,755,470.00

1,373,629.00

599,985.00

76,181.00 298,55500 721,876.00 138,384.00 49,049.00
2,342.00 91,721.00 40,470.00 133,946.00 289,679.00 74,211.00 1,865,674.00

458,555.00 152,586.00 77,253.00 12,964.00 23,120.00 -1,640,796.00 2,060,371.00 402,656.00
$
24,087.15
2,814.99 277,849.94
5,000.00 43,113.00
3,239.14 30,858.92

80,596.00 64,274.54

458,555.00 152,586.00 77,253.00 12,964.00 23,120.00 -1,640,796.00 2,060,371.00 402,656.00 80,596.00 24,087.15
2,814.99 277,849.94
5,000.00 43,113.00
3,239.14 30,858.92
64,274.54

50,409.00

50,409.00

102,903.00

102,903.00

See notes to the general-purpose financial statements.

$ 13,624,075.14 $ 144,870 54 $ 13,768,945.68 - 31 -

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001

SCHEDULE 3

PROJECT

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

PROJECT STATUS

Acquisibon of land and the constructJon and equipping thereon of a new aud1tonum and multi-purpose facility complex and the constructJon of add1bonal classrooms and the adding to, remodeling, renovating, improving and equipping of classrooms, phys\cal education, instrucbonal and support space and grounds of Blue Ridge Elementary School, West Fannin Elementary School, East Fannin Bementary School, Fannin County Middle School and Fannin
County High School, including
lunchrooms, equipment, fixtures for such schools and other eXlsbng facilities within the School DIstnct, and the purchase of copiers, energy management systems, heating and air condIboning systems, lighbng and similar equipment and computers and other technology, and the remodeling and retrofitbng of existing facilibes to accommodate computers and other technology.

$ 1619501000 00 $ 16,950,000 00 $

000 $

0.00 Ongoing

(1) The School Distnct's original cost estimate as specified in the resolution calling for the imposition of the Lcx:al Opbon Sales Tax.
(2) The School D1str1crs current estimate of total cost for the projects Includes all cost from project Inception to completion
(3) The voters of Fannin County approved the imposition of a 1% sales tax to fund the above projects and rebre associated debt Amounts expended for these pl'Of8Cls may include sales tax proceeds, state, local property taxes and/or other funds over the life of the PfOfecls.

see notes to the general-purpose flnallClal statements.

-33-

FANNIN COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM /QBE}
ALLOTMENTS 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 lnstructronal Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Pnmary Grades (1-3) Program

Pnmary Grades-Early lnterventron (1-3) Program

Upper Elementary Grades (45) Program

Middle Grades (6-8) Program

Middle School (6-8) Program

High School General Educatron (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabihtres

category 11

Category Ill

category IV

CategoryV

Gifted Student category VI

Remedial Education Program

Alternative Educatron Program

740,980 00 $ 218,007 00 1,857,923 00 689,513 00 1,189,72200

547,174 79 $ 214,952 67 1,985,193.13 657,352 68 1,501,215 75

2,047,718 00 1,602,309 00
699,870 00 1,500,543 00
106,991.00 47,208 00 156,245.00

2,212,893 34 2,097,862.08
631,216.72
628,493.51 545,186 46 25,446 75 44,505.76 136,329 33 65,592.81 152,108.50

10,005 85 $ 2,148 74
24,265.40 5,674 42
22,654 11 6,801.94 44,115 50 131,706 72 61,802 87
28,905.64
2,402 93 1,274 37

557,180 64 217,101 41 2,009,458 53 663,027.10 1,523,869.86
6,801.94 2,257,008.84 2,229,568.80
693,019.59
628,493.51 574,09210 25,446.75 44,505 76 138,732.26 66,867.18 152,10850

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$ 10,857,029.00 $ 11,445,524.28 $ 341,758 49 $ 11,787,282.n

Media Center Program Staff and Professional Development

337,905 00 86,565 00

390,177 84 23,820.92

65,781.96 77,475.93

455,959.80 101,296.85

TOTAL QBE FORMULA FUNDS

$ 11,281,499.00 $ 11,859,523.04 $ 485,016.38 $ 12,344,539.42

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

See notes to the general-purpose financial statements

- 34-

FANNIN COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE
YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE Fannin County High School Fannin County Middle School East Fannin Elementary School West Fannin Elementary School Blue Ridge Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,783,744.00 $- 3,352,805.39

2,716,523.00

2,817,913.13

1,743,142.00

1,838,508.93

1,804,374.00

1,963,852.54

1,653,001.00

1,808,740.85

156,245.00

5,461.93

$ 10,857,029.00 $ 11,787,282.77

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

1ussELL W. H1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ~hmgton Street, S W., Su11c 214 Atlanta. Georgia 3033-4-8400
March 5, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Fannin 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 ofFannin County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated March 5, 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 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.
We did not observe the taking ofeither 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 Fannin County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Fannin 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 ourjudgment, could adversely affect Fannin County Board ofEducation'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-6551-01-01.
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-6551-01-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Fannin County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 2001YB-41

State Auditor

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa'ihmgton Street. S W. Su11c 214 AtlantJ. Georgia 30334-8400
March 5, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Fannin County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COWLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofFannin County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Fannin County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Fannin County Board of Education's management. Our responsibility is to express an opinion on Fannin County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliancewith the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Fannin County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Fannin County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Fannin County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Fannin County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Fannin County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe Fannin County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
0 M-t. ~ . 1.04..:k ~sell W. Hinton State Auditor
RWH:as 2001SA-10

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

FANN1N COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6551-99-02 FS-6551-00-01

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6551-00-01

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the School District has decided not to pursue the recording of general fixed assets on the financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
I SUMMARY OF AUDITOR'S RESULTS
I. Type of Report Issued on the Financial Statements The auditor's opinion on the Fannin County Board of Education's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Fannin County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Fannin County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Fannin County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Fannin County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Fannin County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program- Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.027 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement 84.173 Individuals with Disabilities Education Act - Part B - Special Education Preschool
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
- 1-

. FANNIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee
The Fannin County Board of Education qualified as a low risk auditee based upon a waiver granted by the U.S. Department of Education. II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6551-01-01 The Fannin County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters 'Yere reported.
-2-