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

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GILMER 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

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

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN FUND BALANCES

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

8

E

STATEMENT OF CASH FLOWS

FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

11

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

CAPITAL PROJECTS FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

30

DEBT SERVICE FUND

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

33

GILMER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDillONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

34

2 SCHEDULE OF STATE REVENUE

36

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

39

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

40

5

BY SITE

41

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

SECTION III 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. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400
April 17, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gilmer 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 Gilmer County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Gilmer County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
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 m 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 ofmaterial 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 op1mon.
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:

2002ARL-13

* 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, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's 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, 2001, were improperly recorded in the year ended June 30, 2002. To conform to generally accepted accounting principles, revenues should be recorded when available and 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 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 of the Gilmer County Board of Education as of June 30, 2002, and the results of its operations and the cash flows of its nonexpendable trust fund 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 April 17, 2003, on our consideration ofthe Gilmer County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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 Gilmer County Board of Education taken as a whole. The accompanying combining statements (Exhibits G through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Orga!_Zizations, are presented for purposes of additional analysis and are not a required part of the
2002ARL-13

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 effects ofthe matters referred to in the third 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 ofGeorgia Annotated Section 506-24.
Respectfully submitted,
VJ~~
RWH:as 2002ARL-13

GILMER COUNTY BOARD OF EDUCATION

Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided m Future Years For Payment of Bond Debt Capital Lease Agreements
Total Assets

GILMER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30 2002

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ '1,356,579 77 $

339,804 92 $ 2,371,007 13

925,000 00

563,356 58

283,277 68

1,124,642 70

14,563 34 6,901 07

$

644 547 01 $ 4 420 649 83

LIABILmEs AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retamages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total Llabll1bes
FUND EQUITY
Fund Balances Reserved For Debt Service For Endowment Corpus For Expired Grant Balances/Questioned Costs For lnventones Food Donated Commod11Jes Purchased Food For Purpose of Bond Issue For State Capital Outlay Proiects Unreserved Designated for Self-Insurance Deficit Undes,gnated
Total Fund Equity

$

163,622 56 $

210,688 01 $

209,951 37

99,383 89

1,881 46

70,747 58 24,276 56

862,643 43 593,498 97

$

165 504 02 $

515,663 52 $ 1,555,526 29

$

$

28,584 86

1 725 847 47

$ 1 754 432 33 $

14,563 34 6,901 07
$

2,475,646 29 389,477 25

10741908 128,883 49 $

0 00 2,865,123 54

Total L1ab1hbes and Fund Equrty

$ 1,919,936 35 $

The notes to the general-purpose finane1al statements are an integral part of this statement

-2 -

644 547 01 $ 4 420 649 83

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE TRUST FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum On~l

JUNE 30, 2002

JUNE 30, 2001

$ 1,512,955 97 $

10,620 02

$ 5,590,967 81 $ 3,229,953 66

481,261 85

1,406,261 85

8,702,412 33

522,228 61

2,493,505 57

1,934:939 31

$

2,516,446 43

14,563 34 6,901 07
2,516,446 43

6,786 99 7,252 23
2,303,854 62

7,483,553 57 478 402 28

7,483,553 57 478 402 28

9,861,145 38 506,552 11

$ 2 516 446 43 $

10 620 02 $

10 478 402 28 $ 19 990 601 92 $ 2615521896 63

$

473,694 46 $

365,841 23

209,951 37

211,568 94

1,125,000 00

72,629 04

77,521 94

862,643 43

118,893 77

593,498 97

24,276 56

4,156 25

$

478,402 28

478,402 28

506,552 11

10,000,000 00

10,000,000 00

12,165,000 00

$

10,478,402 28 $ 12 715 096 11 $ 14 574 534 24

$ 2,516,446 43 $

10,000 00

0 00 $ 2 516 446 43 $

620 02 10 620 02

$ 2,516,446 43 $ 2,303,854 62

10,000 00

10,000 00

1,326 30

14,563 34 6,901 07
2,475,646 29 389,477 25

6,766 99 7,252 23 9,723,118 12

26,564 86 1,833,886 57

27,534 10 -214,047 70 112 537 73

$ 7 275 505 81 $ 11,978,362 39

$ 2 516 446 43 $

10 620 02 $

10 478 402 28 $ 1919901601 92 $ 2615521896 63

-3.

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrud1on Support Se1V1ces Pupil SelVlceS Improvement of lnstrucllonal Se1V1ces Educabonal Media Services General Adm1mstrat1on School Adm1mstra1ton Business Admlnlstrabon Maintenance and Operabon of Plant Student Transportation Se1V1ces Central Support Se1V1ces Other Support Se1V1ces Food SelVlces Operabon
Capital Outlay Debt SelVlce
Pnncipal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES {USES)
Premium on Bonds Sold Accrued Interest on Bonds Sold Proceeds of Refunding Bonds
Par Value Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory- Net Change in Penod Donated Commodities
Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 14,979,721 92 $ 87,646 06
9,104,517 76 385,627 21
$ 24,557,512 95 $

751,459 62 2,420,593.05
493,984 19
3,666,036 86

$ 15,899,278 33 $
663,51046 204,479 30 499,130 06 452,43849 1,564,581 63 443,964 34 1,617,303 25 1,106,96111
64,022 19 4,332 10 1,259 28

1,748,804 84 109,238.11 129,696 31 127,699 45
37,375.94 8,806 91
1,544,462 50

238,857 83 33,295 86

$ 22,793,414 23 $ $ 1,764,098 72 $

3,706,084 06 -40 047 20

$

210,708 00

$

-35187 09

$

175.520 91 $

35,187 09 35 187 09

$ 1,939,619.63 $ -185,187 30

-4,860 11 126,318 41

7,776 35 -351.16

FUND BALANCE JUNE 30
The notes to the general-purpose financial statements are an integral part of this statement -4-

$ 1,754.432 33 $ ==1,;;2=8;,;;,8~83~4,;,;9;..

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,124,642 70

$ 16,855,824.24 $ 14,375,714 01

2,508,239.11

2,099,450 35

$ 2,881,867.86

11,986,385.62

9,386,455 69

264,928 13

39,912 30

1,184,451 83

1,017,582 31

$

1,389,570 83 $

2,921,780 16 $ 32,534,900 80 $ 26,879,202.36

$ 8,247,565 41 $
$ 8,247,565 41 $ $ -6,857,994 58 $

$ 17,648,083 17 $ 16,342,115 20

772,748 57 334,175 61 499,130 06 580,137 94 1,564,581.63 443,964 34 1,617,303 25 1,144,337 05
64,022.19 13,139 01 1,545,721.78 8,247,565 41

739,935 75 262,75943 480,769 24 541,530 83 1,380,367 50 579,788 45 1,462,432 80 1,134,363 14
74,130 02 1,956.94
1,408,774 33 594,623 03

2,165,000 00 543,738 35 45000

2,403,857.83 577,034 21 45000

568,183 55 187,779.56
106000

2,709,188 35 $ 37,456,252 05 $ 25,760,569 77

212,591 81 $ -4,921,351 25 $ 1,118,632 59

$

12,349 85

13,947 19

10,000,000 00

$

210,708 00

222,556.00

35,187 09

52,778.29

-35 187 09

-52 778 29

$

210,708 00 $ 10,248,853 04

$ -6,857,994 58 $ 9,723,118.12

212,591 81 $ -4,710,643 25 $ 11,367,485 63

2,303,854 62

11,968,103 85

607,065.28

7,776 35 -351 16

-3,749 75 -2 697 31

$ 2,865,123 54 $ 2,516,446 43 $ 7,264,88579 $ 11,968,10385 -5-

GILMER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INON-GAAP BASIS\ GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT"C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
~PENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Adm1mstrallon Business Adm1mstrallon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES <USES)
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
F!,!NQ M!.ANCE JULY l 2001
Food Inventory - Net Change in Penod Donated Commod1t1es Purchased Food

GENERAL FUND

BUDGET

ACTUAL

$ 16,116,598 00 $
8,720,438 00 267,242 00

14,979,721 92 87,646 06
9,104,517 76 385 627 21

$ 25.104,278 00 $ 24,557,512 95

$ 18,066,783 00 $ 15,899,278 33

632,398 00 212,263 00 566,041 00 374,557 00 1,567,289 00 431,255 00 1,874,816 00 1,258,657 00
66,131 00
10,000 00 44,088 00

663,510 46 204,479 30 499,130 06 452,438 49 1,564,581 63 443,964 34 1,617,303 25 1,106,961 11
64,022 19 4,332 10 1,259 28
272.153 69

$ 25.104,278 00 $ 22,793,414 23

$

0 00 $ 1,764,098 72

$

210,708 00

-35 187 09

$

175 52091

$

0 00 $ 1,939,619 63

229,236 02

-185, 187 30

FUND !;!ALANCE JUNE ~o .1QQ2

$ 2291236 02 $ 1i7541432 33

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 681,614 00 $ 751,459 62

1,935,490 00

2,420,593 05

500,009 00

493 984 19

$ 3 117 113 00 $ 3,666,036 86

$ 1,398,204 00 $ 1,748,804 84

97,381 00 114,028 00

109,238 11 129,696 31

89,386 00

127,699 45

6,000 00
26,806 00 1,385,308 00

37,375 94
8,806 91 1,544,462 50

$ 3,117,113 00 $ 3 706 084 06

$

000 $ -40 047 20

$

35,187 09

$

35 187 09

$

000 $

-4,860 11

104,886 82

126,318 41

7,776 35 -351 16

$ 104 886 82 $ 128 883 49

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

GILMER COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002

EXHIBIT "D"

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Scholarships Operating Income (Loss)
NONOPERATING REVENUES Interest Earned Net Income
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

ENDOWMENT FUND
DR. EDWARDW WATKINS
SCHOLARSHIP FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30 1 2002

JUNE 30, 2001

$

0.00 $

0 00 $

0.00

$

0.00 $

0.00 $

50000

$

0.00 $

0 00 $

-500 00

361 48

361 48

608.75

$

361.48 $

361.48 $

108.75

10,258 54

10,258.54

10 149 79

$

10,620.02 $

10,620.02 $ ===1=0!=:,2=58=.5=4=

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

GILMER COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
FIDUCIARY FUND TYPE - NONEXPENDABLE TRUST FUND YEAR ENDED JUNE 30, 2002

EXHIBIT "E"

Cash Flows from Operating Activities: Cash Paid for Scholarships
Cash Flows from Investing Activities Interest Received on Investments
Net Increase in Cash
Cash and Cash Equivalents - July 1

ENDOWMENT FUND
DR EDWARDW. WATKINS
SCHOLARSHIP FUND

I

1r r

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 301 2002

JUNE 30, 2001

$

0.00 $

0.00 $ _ _ _ _-.::,50::.:0::....0::.:0:;_

$

361 48 $

361 48 $ _ _ _....;;6;.;;;.0~8..;_75~

$

361.48 $

361 48 $

108.75

10,258 54

10,258 54

10 149.79

Cash and Cash Equivalents - June 30

$

10,620 02 $

10,620 02 $ ===1=0!=,2:=58=.54=====

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

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Gilmer 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 1s 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 ofits 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 the 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.

- 11 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

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:
NONEXPENDABLETRUSTFUND Dr. Edward W. Watkins Scholarship Fund - the fund used to account for an endowment of which the corpus is to be invested and preserved intact with the resultant income to be used to provide scholarship aid to needy students within the School District's jurisdiction who might otherwise not be able to attend college.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding 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.
All nonexpendable trust funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
- 12 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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. Property taxes, sales taxes and interest are considered to be 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.
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 2002, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also, the State's portion of the compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. 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.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by nonexpendable trust funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
BUDGET
The Gilmer 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
- 13 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of the 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 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 and 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,

- 14 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 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 Gilmer County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 20, 2001 (levy date). Taxes were due on January 30, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Gilmer County Tax Commissioner bills and collects the property taxes for the Schogl District, withholds 2.5% of taxes 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, 2002 for maintenance and operations amounted to $9,025,796.50 and for school bonds amounted to $16,686.50.

The tax millage rate levied for the 2001 tax year (calendar year) for the Gilmer County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.00 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $2,865,181.36 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

- 15 -

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

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses 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, results ofoperations or cash flows 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 of money which has not
- 16 -

' !

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS
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 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.
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 Banlc, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, the Central Banlc for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2002, the banlc balances were $7,791,960.90. The amounts ofthe total banlc balances are classified into three categories of credit risk:

- 17 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS AND INVESTMENTS

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, 2002, as follows:

Risk Category

Bank Balance

1

$ 1,079,690.42

2

6,712,270.48

3

0.00

Total

$ 7,791,960.90

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $481,261.85 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 government 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.

- 18 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30,.2002

Note 2: DEPOSITS AND INVESTMENTS
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments 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, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years.
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 torts, assets, errors or omissions,job related illness or injuries to employees and acts of God (flood). The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.
The School District has elected to self-insure for all losses related to acts of God (earthquake). The School District has not experienced any losses related to this risk in the past three years.
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 ofthe percentage ofthat 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.
There were no changes in the unemployment compensation claims liability during the last two fiscal years. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years.
The School District has purchased surety bonds to provide additional insurance coverage as follows:

- 19 -

GILMER COUNTY BOARD OF DUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

Position Covered

Amount

Superintendent Principals

$ 50,000.00 $ 15,000.00 - $ 20,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Gilmer County Board of Education has entered into various lease agreements as lessee for school 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 Rates

Amount

General Government - Series 2001

3.70%- 4.00% $10.000.000.00

The changes in General Long-Term Debt during the fiscal year ended June 30, 2002, were as follows:

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2001

$ 506,552.11 $12,165,000.00 $12,671,552.11

Additions Capital Leases

210,708.00

210,708.00

Deductions Debt Retired

238,857.83 2,165,000.00 2,403,857.83

Balance June 30, 2002

$ 478,402.28 $10.000.000.00 $10.478.402.28

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

- 20 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2003 2004 2005 2006

$ 239,500.07 $ 2,471,230.00 $ 2,710,730.07 146,606.45 2,647,830.00 2,794,436.45 98,332.56 2,839,030.00 2,937,362.56 47,589.84 3,051,720.00 3,099,309.84

Total Principal and Interest $ 532,028.92 $11,009,810.00 $11.541.838.92

Deduct: Imputed Interest

53,626.64

Net Present Value of Future Minimum Lease Payments $ 478,402.28

Note 6: SHORT-TERM DEBT

The School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred.

Begmning Balance

Additions

Payments

Endmg Balance

Temporary Loans

$ 1,125,000.00 $ 4,275.0Q_Q_,_OO $ 5,400,000.00 $====0=.0-0

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $389,523.27 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$351,451.27

- 21 -

------------ --------------- ---

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 7: 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 $38,072.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

SN0lS-661-064 02G/0 1S-661-018 03G/02S-661-023 Gits Tennis Center

$ 3,720,542.91 $ 326,667.00

1,935,083.32

124,960.30

444,949.20

320,483.00

110,590.00

$6,211,165.43 $ 772111Q.3Q

The amounts described in this note are not reflected in the general-purpose financial statements.

Note 9: 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.

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.

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

- 22 -

GILMER COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

_ JUNE 30. 2002

Note 10: RETIREMENT PLANS

survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School 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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 1,342,521.21 $ 1,499,525.64 $1,433,736.09

- 23 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

191,724.76 $

91,306.69

18,571.62

14,563 34 6 901.07

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

231,760.79 $ ===9=1='3=06==69=

$

30,484 25 $

72,393.05

$

102,877.30 $

22,425.99 65,230.00
3,650 70
91,306 69

$

14,563 34

6,901.07

107 419.08 $

0.00

$

128 883.49 $

0.00

$

231,760 79 $===9=1=,3=06=69=

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

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

56,773.47 $

339,804.92 $

300,880.66

264,706.06

283,277.68

204,364.12

14,563.34 6 901.07

6,786.99 7,252.23

$

321A79.53 $

644 547 01 $ ===5=19=,2=84=.00=

$

157,777.77 $

210,688.01 $

134,160.64

72,328 32

209,951.37

211,568.94

67,096 88

70,747.58

43,079.76

24,276.56

24,276.56

4,156 25

$

321,479.53 $

515,663.52 $

392,965.59

$

$ _ _ _ _0_00_

$

0.00 $

14,563.34 $ 6,901.07

6,786.99 7,252.23

101r419 08

112,279.19

128,883 49 $ _ _1'-"2~6=,3-'-18;:;._4-'-1;....

$

321,479.53 $

644 547.01 $ ==5=1=9=,2=84==00=

- 25 -

- - - - - - - --

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil 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
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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

98,374.00 $

917,636.99

493,954.19

$ 1,509,965.18 $

653,085.62 653,085 62

$

570,955.93

59,788.22 3,046 04

27,954.09

$ 1,514,825 29

$ 1,514,825 29 $

$

-4,860.11 $

25924 835.75 662,839.27 -9,753 65

$

-4,860.11 $

126,318 41

7,776.35 -351 16

9,753 65
0 00 0 00

FUND BALANCE JUNE 30

$

128,883 49 $=====0=00=

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

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

751,459.62 $

694,509.95

$ 1,502,956.06

2,420,593 05

2,019,210.05

30.00

493,984 19

493,815 22

$ 1,502,986.06 $ 3,666,036.86 $ 3,207,535 22

$ 1,177,848.91 $ 1,748,804.84 $ 1,541,183.30

49,449.89 126,650.27
99,745.36
37,116.70 8,806.91
28,801.46

109,238.11 129,696 31
127,699.45
37,375.94 8,806 91 1,544,462.50

95,929 91 35,047.64
170.32 154,114.00
48015 5,268.81 7,786.46 1,956 94 1,399,319.60

$ 1,528,419 50 $ 3,706,084.06 $ 3,241,257.13

$

-25,433 44 $

-40,047.20 $

-33,721.91

25,433.44

35,187.09

39,430 51

$

000 $

-4,860.11 $

5,708 60

000

126,318.41

127,056.87

7,776.35 -351.16

-3,749 75 -2,697 31

$

0.00 $

128,883.49 $ ==1=2=6=,3=18=.4=1=

- 27 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$ 2,354,034.13 $

16,973.00

925,000.00

402,240 25

Total Assets

$ 3,279,034 13 $ ==4=1=9,!:2=13=2=5=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retamages Payable Due to Other Funds
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Proiects Unreserved Undesignated
Total Fund Equity

$

147 25

263,627 00

155,439.00

$

803,387 84

$

803,387.84 $

419,213.25

$ 2,475,646.29
0 00 $ $ 2,475,646 29 $

0 00 0 00

Total Liabilities and Fund Equity

$ 3,279,034.13 $ ==4=1=95,,2=13=.2=5=

See notes to the general-purpose financial statements. - 28 -

EXHIBIT"!"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

$

10.665.14

LOTTERY PROJECT

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 2,371,007 13 $ 1,141,621.97

925,000.00

8,702,412.33

1,124,642.70

1,124,642.70

2,840 79

390,482.45

803,387.84

$

10 665.14 $ 1,515,125.15 $ 5,224,037.67 $ 9,846,875 09

$

10,665.14 $

88,571.50 $

99,383.89 $

4,863.20

599,016.43

862,643.43

118,893.77

438,059.97

593,498.97

803,387.84

$

10 665.14 $ 1,125,647.90 $ 2,358,914 13 $

123,756 97

$ $ _ _ _ _0~00__

$

0.00 $

$ 389,477.25
000
389,477.25 $

2,475,646.29 $ 389,477.25
0.00
2,865,123.54 $

9,723,11812
000 9,723,11812

$

10 665.14 $ 1,515,125.15 $ 5,224,037.67 $ 9,846,875 09

- 29 -

-------------------------- --- - ----- - ---
GILMER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES ANO CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Professional and Technical Services Other Purchased Services Supplies Books, Textbooks and Periodicals Other Expenditures Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Premiums on Bonds Sold Proceeds from General Obligation Bonds
Par Value 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
See notes to the general-purpose financial statements.
- 30 -

BONO PROCEEDS

GEORGIA STATE FINANCING ANO
INVESTMENT COMMISSION

$

264,928.13 $

000

$

264,928.13 $

0.00

$

000 $

124,618.64

849.35

1,554,391 00

$

0.00 $ 1,679,858.99

$

264,928 13 $ -1,679,858 99

$ $ -7,512,399 96
$ -7,512,399 96 $

1,679,858.99 1,679,858.99

$ -7,247,471.83 $

0.00

9,723,11812

0.00

$ 2,475,646.29 $ =====-=0=.0=0=

EXHIBIT"J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ $ _ _ _ _=0..;;;..00=--
$ ______0..a...00=-- $

1,124,642 70 $ 1,124,642.70 $

1,124,642.70 264,928.13 $ _---'2=0:..;.7.:,04;,,.,;,,.;.;1.=22=-
1,389,570.83 $ _ ___,;2=..;:0_,7,L;;;,04....;...;.;1.=22=-

$

164,606.10

$

1,348.00 $

291,258 07 $

417,224.71

10,786 74

13,079.20

24,715.29

19,644 00

852.60

20,496.60

12,038.00

12,038 00

6,064,860.82 153,838.99

7,619,251 82 153,838 99

4,447.58
8,900.00 309,044 05

$

31 778.74 $ 6,535,927.68 $ 8,247,565 41 $

486,997.73

$

-31 778 74 $ -5,411,284 98 $ -6,857,994 58 $

-279,956 51

$

12,349 85

10,000,000.00

$

31,778 74 $ 5,800,762.23 $ 7,512,399 96

309,720 05

-7,512,399 96

-320,272.27

$

3177874 $ 5,800,762.23 $

0.00 $ 10,001,797.63

$

0.00 $

389,477.25 $ -6,857,994.58 $ 9,721,841.12

0.00

0.00

9,723,118.12

1 277.00

$====0=0=0= $

389,477.25 $ 2,865,123.54 $

- 31 -

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

EXHIBIT"K"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 301 2002

JUNE 301 2001

$

0.00 $ 1,512,955.97 $ 1,512,955.97 $ 1,765,497 03

481,261.85

481,261.85

522,228.61

522,228 61

538,357.59

Total Assets

$

0.00 $ 2,516,446 43 $ 2,516,446 43 $ 2,303,854 62

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 2,516,446 43 $
$ ____0._00_ - - - - -00-0

2,516,446.43 $ 000

2,303,854 62 000

Total Fund Equity $

0.00 $ 2,516,446 43 $ 2,516,446 43 $ 2,303,854 62

See notes to the general-purpose financial statements. - 32 -

GILMER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30. 2002

EXHIBIT "L"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

REVENUES

Taxes Other Funds

$

16,686 50 $ 2,865,181 36 $ 2,881,867 86 $ 1,911,960 77

-1,897 82

4181012

39,912 30

20,477 23

Total Revenues

$

14 788 68 $ 2,906,991 48 $ 2,921,780 16 $ 1,932,438 00

EXPENDITURES

Debt Service Pnncipal Interest Paying Agent Fees

$ 2,165,000 00
s 125,322 51

$ 418,415 84
450 00

2,165,000 00 $ 543,738 35 450.00

345,000 00 155,467 50
1,060 00

Total Expenditures

$ 2,290,322.51 $ 418,865 84 $ 2,709,188 35 $ 501,527 50

Excess of Revenues over (under) Expenditures

$ -2,275,533 83 $ 2,488,125 64 $ 212,591 81 $ 1,430,910 50

OTHER FINANCING SOURCES (USES}

Accrued Interest on Bonds Sold Operating Transfers In Operating Transfers Out

$

$ 1,342,077 08

$ 1,342,077 08

$ -1,342,077 08 -1 ,342,077 08

13,947 19

Total Other Financing Sources (Uses) $ 1,342,077 08 $ -1,342,077 08 $

0 00 $

13 947 19

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-933,456.75 $

1,146,048 56 $

212,591 81 $ 1,444,857 69

FUND BALANCE JULY 1

933,456 75

1,370,397 87

2,303,854 62

858,996 93

FUND BALANCE JUNE 30

$ ~===0==00= $ 2,516,446 43 $ 2,516,446 43 $ 2,303,854 62

See notes to the general-purpose financial statements

- 33 -

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

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

. 10 553 . 10 555

Total Child Nutnt1on Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutntion Program Food D1stnbut1on Program (1) Pass-Through From Office of Treasury and Fiscal Services National Forest Reserve Funds

10 550 10 665

Total U S Department of Agnculture

Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sab11it1es Education Act Part B - Special Education Flow Through Capacity Bu1ld1ng Improvement Preschool

. 84 027 . 84 027 . 84 173

Total Special Education Cluster

Other Programs Direct Appalachian Regional Comm1ss1on School Dropout Prevention Program Pass-Through From Georgia Department of Education Comprehensive School Reform Demonstration ProJect Elementary and Secondary Education Act Titlel Grants to Local Educational Agencies Titlell Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Title VII Immigrant Education Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant Pass-Through From Hall County Board of Education d/ble Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education

84 360 84 332
84 010 84 281 84 298 84 340 84 162 84 186
84 048
84 011

Total U S Department of Education

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$ 211,031 68

(2)

NIA

626,046 06 $

1,434,266 04 (3)

$ 837,077 74 $

1,434,266 04

NIA

80,559 25

80,559 25

NIA

25,628 90

(4)

$ 943,265 89 $

1,514,825 29

NIA

$ 299,711 10 $

NIA

6,389 00

NIA

28,927 00

$ 335,027 10 $

299,71110 15,342 21 (3) 39,203 97 (3)
354,257 28

10,240 00

10,240 00

NIA

50,000 00

50,379 48 (3)

NIA

604,126 10

604,126 10

NIA

25,037 88

25,037 88

NIA

17,098 57

17,098 57

NIA

76,855 83

76,855 83

NIA

62 96

62 96

NIA

15,91904

15,919 04

NIA

36,066 00

41,919 78 (3)

NIA

33,058 00

33 058 00

$ 1,203,491 48 $

1,228,954 92

- 34 -

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

SCHEDULE "1"

FUNDING AGENCY PRQGR8Ml~RAl!IT

CFDA NUMBER

Health and Human SeMces. U S Department of Pass-Through From Georgia Department of Human Resources Mental Health/Mental Retardation Substance Abuse and Prevention Grant Pass-Through From Ninth D1stnct Opportunity, Incorporated ProJect Head Start Pass-Through From Office of Planning and Budget Abstinence Educabon Block Grant

93 959 93600 93 235

Total U. S Department of Health and Human Services

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

N/A

$

35,647 98 $

NIA

299,464 58

NIA

26,369 18

$ 361,481 74 $

35,647 98 299,464 58
26 369 18 361 481 74

Total Federal Financial Assistance
N/A = Not Available

S 2,508,239 11 $ =-=3=,1=0=5=,2~6=1=9=5

Notes to the Schedule of Expendrtures of Federal 8wards

(1) The amounts shown for the Food D1stnbubon 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 School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program
(3) Expenditures for this program include State, and/or Other Funds Expenditures are not maintained by fund source
(4) Funds earned on this program do not require reporting of expenditures

MaJor Programs ere 1dent1fied by an astensk c) in front of the CFDA number

The School D1stnct did not provide Federal Assistance to any Subrec1p1ent

The accompanying schedule of expenditures of Federal awards includes the Federal grant actlVlty of the Gilmer County Board of Education end 1s presented on the modified accrual basis of accounting which 1s the basis of accounbng used in the presentation of the general-purpose financial statements

See notes to the general-purpose financial statements

- 35-

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

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Education, Georgia Department of Quahty Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early lntervenbon Program Pnmary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Early Intervention Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1hties I Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development 20 Additional Days Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Pnnapal Supplements Sparsity Grant Vocational Supervisors Educational Equahzat1on Funding Grant Food Services Vocational Education Other State Programs Environmental Science Program Grades K-3 Statewide Reading Program Grades 4-8 Statewide After School Program Health Insurance Special Education Low Incidence Grant Mentor Teachers Preschool Handicapped Program Lottery Programs AsStstive Technology Computers m the Classroom Exceptional Growth-Capital Outlay

$ 1,020,158 00 62,130 00
2,179,700 00 354,872 00
1,075,303 00
201,666 00 1,937,928 00 1,460,880 00
546,882 00
33,026 00 346,789 00 804,814 00 186,279 00
59,690 00 185,757 00
24,974 00 141,876 00 190,237 00 335,798 00
60,467 00 102,585 00 1,996,605 00

$ 1,020,158 00 62,130 00
2,179,700 00 354,872 00
1,075,303 00
201,666 00 1,937,928 00 1,460,880 00
546,882 00
33,026 00 346,789 00 804,814 00 186,279 00
59,690 00 185,757 00
24,974 00 141,87600 190,237 00 335,798 00
60,467 00 102,585 00 1,996,605 00

469,359 00 149,617 00
88,657 00 15,675 00 35,889 00 22,687 00 95,956 00
$ 98,374 00 114,366 74

750 00 48,781 96 34,089 60 351,451 27 48,893 00
8,874 00 45,176 00

3,216 30 90,375 00

$ 1,124,642 70

469,359 00 149,617 00
88,657 00 15,675 00 35,889 00 22,687 00 95,956 00 98,374 00 114,366 74
750 00 48,781 96 34,089 60 351,451 27 48,893 00
8,874 00 45,176 00
3,216 30 90,375 00 1,124,642 70

Office of the Governor School Attendance Support Grant

21,667 35

21,667 35

Office of School Read1riess Pre-Kindergarten Program

559,494 32

559,494 32

Office of Treasury and Fiscal Services Pubhc School Employees Retirement

38,072 00

38,072 00

- 36 -

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

SCHEDULE "2''

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Georgia Teacher of the Year
Human Resources, Georgia Department of Family Connecllon Grant

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

31,344 00

50,000 00

$

31,344 00

50,000 00

$ 141979?21 92 $ 751 459 62 $ 1,124,642 70 $ 16,8551824 24

See notes to the general-purpose financial statements

- 37 -

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

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

Retire previously incurred general obligation debt in a maximum amount of $1,500,000 00

$ 1,500,000.00 $ 1,500,000 00 $ 1,342,077 08

Completed

AcquIsibon, construction and equipping of a new elementary school in Gilmer County, the construction of add1t1onal classrooms and the adding to, remodeling, renovating, improving and equipping of classrooms, physical education, instructional and support space and grounds at Gilmer Middle School, Oakland Elementary School, Ellijay Pnmary Sclhool, and Gilmer High School, including furnishings, equipment and fixtures for such schools and other existing facilities within the School District, the construcbon of an agriculture facahty at Gilmer High School, and the purclhase of copiers, energy management systems, heating and air conditioning systems, lighting and s1m1lar equipment, and computers and other technology, and the remodeling and retrofitting of existing fae1hties to accommodate computers and other technology

13,500,000 00

13,500,000 00

8,247,565 41 $ 471 516 95 Ongoing

$ 15,000,00000 $ 15,000,00000 $ 9,589,64249 $ 471,51695

(1) The Sclhool District's original cost estimate as spec1f1ed in the resolution calling for the ImposIt1on of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the projects. Includes all cost from proJect inception to completion
(3) The voters of Gilmer County approved the ImposItIon of a 1% sales tax to fund the above proJects and retire assooated debt Amounts expended for these proiects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects

See notes to the general-purpose finanetal statements

- 39 -

GILMER COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE\
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Pnmary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Grades-Early Intervention (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 IV

CategoryV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

1,248,439 00 $ 76,032 00
2,667,450 00 434,282 00
1,313,054 00

1,121,073 04 $ 79,822.80
2,550,144.54 393,589 16
1,417,395 65

29,419.14 $ 740 43
92,720 28 5,663 73
41,146 74

1,150,49218 80,563 23
2,642,864 82 399,252 89
1,458,542.39

249,662 00 2,371,578 00 1,787,781 00
669,258.00 1,750,723.00

197,762 21 2,602,160 76 2,232,161 33
647,250.18

227,324 00 30,562 00 173,623 00
232,806 00

275,497 79 1,093,806 16
103,829.75 148,226 92 245,559 52
58,492 32 164,977 54 203,915 73

s 13,232,574 00 $ 13,535,665 40

3,806 82 97,065.63 128,827 44 58,597.23

201,569 03 2,699,226 39 2,360,988 77
705,847 41

74 34 11,575 79 115,754.72
860 36 531 94 2,865 29
28 32 8,966 28 1,559.94

74 34 287,073 58 1,209,560 88 104,690 11 148,758 86 248,424 81
58,520 64 173,943.82 205,475 67

600,204.42 $ 14,135,869.82

Media Center Program Staff and Professional Development

410,938.00 73,997 00

408,958 80 25,894 43

70,918 93 52,142 62

479,877 73 78,037 05

TOTAL QBE FORMULA FUNDS

$

13,717,509 00 $ 13,970,518 63 $ 723,265 97 $ 14,693,784 60

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

See notes to the general-purpose financial statements

- 40 -

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

SCHEDULE "5"

Ellijay Primary School Gilmer High School Gilmer Middle School Ellijay Elementary School Oakland Elementary School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

3,247,486.00 $

3,253,420 96

3,200,322.00

3,740,249 70

3,060,842.00

3,308,291.85

2,495,821.00

2,609,943 76

1,054,480.00

1,093,903.11

173,623 00

130,060 44

13,232,574 00 $ 14,135,869 82

See notes to the general-purpose financial statements. - 41 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa!>hmgton Street. S W, Suite 214 Atlanta, Georgia 30334-8400
April 17,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gilmer 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 Gilmer County Board ofEducation as ofand for the year ended June 30, 2002, and have issued our report thereon dated April 17, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. 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.
Compliance
As part of obtaining reasonable assurance about whether Gilmer 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Gilmer 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
2002YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable 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 Gilmer 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-6611-02-01.
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-6611-02-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Gilmer 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,
~W~

RWH:as 2002YB-41

State Auditor

RUSSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S. W. Suite 214 Atlanta, Georgia 30334-8400
April 17, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Gilmer County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofGilmer County Board of Education 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 of its major Federal programs for the year ended June 30, 2002. Gilmer County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings 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 Gilmer County Board of Education's management. Our responsibility is to express an opinion on Gilmer 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 of the United States; and 0MB Circular Al 33, 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 noncompliance with 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 Gilmer 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 Gilmer County Board of Education's compliance with those requirements.
2002SA-10

In our opinion, the Gilmer 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, 2002.
Internal Control Over Compliance
The management of Gilmer 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 Gilmer 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 of performing 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 Gilmer 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,
~. ,,00_~~
~sell W. Hinton State Auditor
RWH:as 2002SA-10

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6611-00-03 FS-6611-01-01 FS-6611-01-02

Further Action Not Warranted Unresolved - No Corrective Action Implemented Previously Reported Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6611-01-01

As ofJuly 1, 2002, the School District will begin to maintain a general fixed assets account group.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6611-01-01

Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Gilmer County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Fi~ancial Statements The audit report for the Gilmer 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 Gilmer 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 Gilmer County Board of Education 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 Gilmer County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 0(a} of 0MB Circular A-133 The Gilmer County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB 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.
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GILMER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS 9. Low Risk Auditee
The Gilmer County Board of Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133. 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-6611-02-01 The Gilmer 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 of the 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 of a 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 were reported.
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