Glascock County Board of Education, Gibson, Georgia, report on audit for the financial statements for the fiscal year ended June 30, 2001

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GLASCOCK COUNTY BOARD OF EDUCATION
- TABLE OF CONTENTS -
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SECTION I

FINANCIAL

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INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

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EXHIBITS

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GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS -OVERVIEW

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COMBINED BALANCE SHEET

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ALL FUND TYPES AND ACCOUNT GROUP

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COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

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CHANGES IN FUND BALANCES

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ALL GOVERNMENTAL FUND TYPES

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COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

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(NON-GAAP BASIS)

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GENERAL AND SPECIAL REVENUE FUNDS

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D NOTES TO THE GENERAL-PURPOSE .FINANCIAL STATEMENTS

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ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

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SPECIAL REVENUE FUND

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COMBINING BALANCE SHEET

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COMBINING STATEMENT OF REVENUES, EXPENDITURES

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AND CHANGES IN FUND BALANCES

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CAPITAL PROJECTS FUND

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COMBINING BALANCE SHEET

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COMBINING STATEMENT OF REVENUES, EXPENDITURES.

AND CHANGES IN FUND BALANCES

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FIDUCIARY FUND TYPE

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STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

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SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

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2 SCHEDULE OF STATE REVENUE

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3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

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GLASCOCK COUNTY BOARD OF EDUCATION

- TABLE OF CONTENTS -
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SE<;:TION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

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SCHEDULES

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EARNINGS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

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BYPROGRAM

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5

BY SITE

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SECTION II
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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 ID

AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

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SECTIONIV .

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FINDINGS AND QUESTIONED COSTS

SCHEDULE OF FINDINGS AND QUESTIONED COSTS

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SECTION I FINANCIAL


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: RussEu. \V. H1Nrnr-.

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STATE AUDITOR

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(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2:'i4 Washington Street. S.\V.. Suite 214 t\tlania. Georgia ~0.,.,4-X400
February 26, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Glascock County Board of Education

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE

FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION -

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SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

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Ladies and Gentlemen:

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We have audited the accompanying general-purpose financial statements of the Glascock 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 Glascock 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 in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reaso~able 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 opinion.

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:
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* The general-purpose financial statements of the Board of Education did not contain a

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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.

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* 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 include.cl in the general-purpose financial

statements.
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* The Board of Education did not recognize as expenditures, in the year ended

June 30, 200 l, a portion of salaries and the corresponding employer's cost of related

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benefits earned for contractual services completed prior to June 30, 2001. Also funds

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received, subsequent to June 30; 2001, from the Georgia Department of Education for

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the State's share of these unrecorded salaries and related benefits were not recorded as

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revenue in the year under review. Conversely, the similar expenditures and related

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revenues for contractual services completed prior to June 30, 2000, were improperly

recorded in the year ended June 30, 2001. To conform to generally accepted accounting

principles, revenues should be recorded when available and measurable and

expenditures should be recorded when incurred, rather than when funds are received or

disbursed.

The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.

In our opinion, except for the effects 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 Glascock County Board of Education as ofJune 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

In accordance with Government Auditing Standards, we have also issued our report dated February

26, 2002, on our consideration of the Glascock County Board of Education's internal control over

financial reporting and our tests of its compliance with certain provisions of laws, regulations,

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contracts, and grants. That report is an integral part of an audit performed in accordance with

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Government Auditing Standards and should be read in conjunction with this report in considering the

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results of our audit.

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Our audit was performed for the purpose of forming an opinion on the general-purpose financial

statements of the Glascock County Board of Education taken as a whole. The accompanying

combining and individual fund staterrients (Exhibits E through I) and the financial schedules

(Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required

by U.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

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required part of the 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

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opinion, except for the effects of the matters referred to in the third paragraph, such information is

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fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a

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whole.

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A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made

available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 50-

6-24.

Respectfully submitted,

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RWH:as 2001ARL-13

State Auditor

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GLASCOCK COUNTY BOARD OF EDUCATION

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GLASCOCK COUNTY BOARD OF EDU.CATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 76,901.85 $ 21,693.89

$ 1,287,632.91

436.35

28,603.01

21,035.30

22,589.34

1,942.10 1,478.50

Total Assets

$ 1,316,235.92 $ 101,357.75 $ 44,719.58

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Funds Held for Others General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacel'T)ent Funds For Continuation of Federal Programs For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Undesignated
Total Fund Equity

$

69,317.53

$ 3,961.19

20,850.52

23,868.96

100.00

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69,317.53 $ 48 780.67

$ 1,942.10 1,478.50 $ 44,719.58

$ 1,246,918.39

49 156.48

0.00

$ 1,246,918.39 $ 52,577.08 $ 44 719.58

Total Liabilities and Fund Equity

$ 1,316,235.92 $ 101,357.75 $ 44 719.58

The notes to the general-purpose financial statements are an integral part of this statement. -2-

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EXHIBl"("A"


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ACCOUNT

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DEBT SERVICE
FUND

FIDUCIARY FUND TYPE AGENCY FUND

GENERAL LONG-TERM
DEBT

TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000

$

75.52 $

11,018.82

$

109,690.08 $

312,984.35

87,170.99

1,375,240.25

1,990,533.94

72,227.65

61,471.37

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$ 87,246.51 32,753.49

1,942.10 1,478.50 87,246.51
32 753.49

2,652.17 1,332.52 . 145,259.63
29 740.37

$ 87,246.51 $

11018.82 $ 120,000.00 $ 1,680,578.58 $ 2,543,974.35

$

69,317.53

3,961.19 $

84,220.99

20,850.52

26,319.12

23,868.96

6,610.02

100.00

$

11,018.82

11,018.82

. 42,564.14

$ 120,000.00

120,000.00

175 000.00

$

11018.82 $ 120,000.00 $ 249117.02 $ 334 714.27

$ 87,246.51
0.00 $ 87,246.51

$

2,161.27

89.37

$

87,246.51

145,259.63

. 1,942.10 1,478.50
44,719.58

2,652.17 1,332.52 39,309.05

1,296,074.87 2,018,456.07

$ 1.431.461.56 $ 2,209,260.08

$ 87,246.51 $

11 018.82 $ 120,000.00 $ 1,680,578.58 $ 2,543,974.35

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GLASCOCK 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 Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
. Operating Transfers In _Operating Tran~fers 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 Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 2,537,846.00 $
776,280.00 106 489.16

272,876.83 613,415.05
77,684.82

$ 3,420!'615.16 $ 963,976.70

$ 2,108,882.63 $ 514,439.67

106,004.45 32,651.10 78,865.77 267,897.74 115,675.66 81,976.50 290,486.18 194,814.03
5,319.00

41,835.88 184,637.85
15,120.97 221,145.14

$ 3,282,573.06 $ 977 179.51 $ 138,042.10 $ -13,202.81

$ -843,066.00 $ -843,066.00

$ -705,023.90 $ 1,951,942.29

-13,202.81 66,343.98

-710.07 145.98

FUND BALANCE JUNE 30

$ 1,246,918.39 $

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

\ 52,577.08

EXHIBIT "B"

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CAPITAL PROJECTS
FUND

DEBT . SERVICE
FUND

TOTALS

(Memorandum Onl~)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 174,169.41 7 983.73 $
$ 182,153.14 $

$ 8,216.24

2,810,722.83 $ 613,415.05 950,449.41 200,373.95

2,534,652.84 532,266.86 909,537.53 203,887.14

8,216.24 $ 4,574,961.24 $ 4,180,344.37

$ 2,623,322.30 $ 2,288,452.12

$ 1,026,213.74

147,840.33 217,288.95
78,865.77 267,897.74 115,675.66
81,976.50 290,486.18 209,935.00
5,319.00 221,145.14 1,026,213.74

160,729.36 199,812.71
76,516.23 229,025.04
84,090.42 575.00
248,652.35 182,302.39
1,906.00 197,362.99 408,691.02

$ 55,000.00 10,220.00 1 009.36

55,000.00 10,220.00
1 009.36

55,000.00 13,190.00
1 033.66

$ 1,026,213.74 $ 66,229.36 $ 5,352,195.67 $ 4,147,339.29

$ -844,060.60 $ -58,013.12 $ -777 234.43 $

33,005.08

$ 843,066.00

$

843,066.00 $

181,908.04

-843,066.00

-181,908.04

$ 843,066.00 I

$

0.00 $

0.00

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$

-994.60 $ -58,013.12 $ -777,234.43 $

33,005.08

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145,259.63

2,209,260.08

2,176,480.06

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-710.07 145.98

-674.76 449.70

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44 719.58 $ 87 246.51 $ 1,431,461.56 $ 2,209,260.08

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GLASCOCK COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET 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

$ 2,420,517.00 $ 2,537,846.00

770,451.00

776,280.00 106,489.16

Total Revenues

$ 3,190,968.00 $ 3,420,615.16

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operali.on of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation

$ 2,112,933.15 $ 2,108,882.63

110,478.80 91,440.00 75,209.89
247,013.76 115,387.93 .41,646.00 28~.053.55 193,250.62
3,000.00 10,200.00

106,004.45 32,651.10 78,865.77 267,897.74 '115,675.66 81,976.50 290,486.18 194,814.03
5,319.00

Total Expenditures

$ 3,285,613.70 $ 3,282,573.06

Excess of Revenues over (under) Expenditures

$ -94,645.70 $ 138,042.10

OTHER FINANCING USES

Other Uses

-843,066.00

Excess of Revenues over (under) Expenditures and

Other Financing Uses

$

-94,645.70 $ -705,023.90

FUND BALANCE JULY 1, 2000

1 941 710.04 1,951,942.29

FUND BALANCE JUNE 30, 2001

$ 1,847,064.34 $ 1,246,918.39

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 101,886.00 $ 272,876.83 128,500.00 613,415.05

73,500.00

77,684.82

$ 303,886.00 $ 963,976.70

$ 364,292.87 $ 514,439.67

42,700.00 127,077.00

41,835.88 184,637.85

25,000.00 6,000.00

15,120.97

246,099.00 221,145.14 $ 811,168.87 $ 977,179.51 $ -507 ,282.87 $ -13,202.81

$ -507,282.87 $ -13,202.81 58,154.39 62,359.29
$ -449, 128.48 $ 49, 156,48

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

GLASCOCK COUNTY BOARD OF EDUCATION

EXH,,.IBIT"D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Glascock County Board of Education (School District) was established under the laws of the
a State of Georgia and operates under the guidance of 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 pnmary 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 th~ 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 acco~nting
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.

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GLASCOCK 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 (ot.her 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 funds 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.



. BASIS OF ACCOUNTING.

The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from availabre 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"

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GLASCOCK COUNTY BOARD OF EDUCATION NOTES TO.THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 2001

.EXHIBIT"D"

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, it:i 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 rec:ognized when the related fund liability is incurred.

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A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the G~orgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made.. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and re~orded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurr<;:d, ratherthan when funds are received or disbursed.

Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets

and liabilities.



BUDGET

The Glascock County Board of Education's budget is a complete financial plan .for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental fu~ds is prepared by fund, function and object. The legal level of budget control was established by the Board at the fund level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

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.EXHIBIT"D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

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JUNE 30, 2001

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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget process begins when the School District's administration-prepares a tentative budget for the Board's approval. After approval of this tentative bqdget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comme~ts 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 20-2-1_67(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.

The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual presents actual and budgeted data for the General Fund and Special Revenue Fund. To facilitate comparison with the budg!;!t, the following adjustments have been made to fund balance as reflected on Exhibit "B" of this report:

FUND BALANCE JULY 1, 2000
Adjustments Inventories - July 1, 2000 Food Donated Commodities Purchased Foods
Fund Balance July 1, 2000 (Budget Basis)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JUNE 30, 2001 (Budget Basis)

Special Revenue
Fund $ 66,343.98
-2,652.17 -1,332.52 $ 62,359.29
-13,202.81 $ 49,156.48

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash 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 of deposit) and repurchase agreements are reported at cost. Participating interest-earning

- 11 -

GLASCOCK COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

EXH IBIT"D"

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofGeorgia 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 ofreturn 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 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 Glascock County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 26, 2000 (levy date). Taxes were due on January 16, 2001 (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 Glascock 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 oper~tions amounted to $771,785.13.
- 12 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT"D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS



JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANTACCOUNTING POLICIES

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

School Operations

14.21 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 $174,169.41 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $338,648.40 has been collected or on June 30, 2002, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet 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 compom;nt 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 6fthese bonds is recorded in the General Long-Term Debt Account Group.

INTERFUND TRANSACTIONS

The School District has the following types of interfund.transactions:

Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.

Operating transfers are recorded for all interfund transactions other than reimbursements.

- 13 -

. GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT"D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 analys_is. Data in these columns do not present financial position or results of operations 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

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.

If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe

securities_pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

balance. OCGA Section 45-8-11 (b) provides an officer holding public filnds may, in his discretion,

wai_ve the requirement for security in the case of operating funds placed in demand deposit checking

accounts.



Acceptable secunty 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 ~hat 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

- 14 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

..

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association; and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $394,592.45. 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 collateraliz.ed 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.)

I
1.

The School District's deposits are classified by risk category at June 30, 2001, as follows:

1:
Risk Category

Bank Balance

1

$ 100,000.00

2

0.00

3

294,592.45

Total

$ 394,592.45

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $1,375,240.25 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 ofthe 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

- 15 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS



JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
which follows Stand~rd 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'sshares 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 an.d 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.
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 and job related illness or injuries to employees. 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 natural disaster. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years.

- 16 -

GLASCOCK COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

EXHIBIT "D"

JUNE 30, 2001

Note 4: RISK MANAGEMENT

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. 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:

Position Covered

Amount

Superintendent Principal

$ 25,000.00 $ 5,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1992

3.8%- 6.0% $ 120,000.00

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

General Obligation
Bonds

Balance July 1, 2000
;

i

Deductions

r :

Debt Retired

$ 175,000.00 55,000.00

!

Balance.June 30, 2001

.

$ 120.000.00

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

'
- 17 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

_ General Obligation
Bonds

2002 2003

$ 67,140.00 63,600.00

Total Principal and Interest

$ 130,740.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $45,919.92 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 Co~unity Health For Health Insurance of Non-Certified Personnel In the amount of $34,121.92

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School };:mployees Retirement (PSERS) Employer's Cost In the amount of $11,798.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis of significant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

Glascock County Schools K-12 Additions and Modifications

$ 16,795.00

The amount described in this note is not reflected in the general-purpose financial statements.

- 18 -

GLASCOCK COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS



JUNE 30. 2001

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the 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.

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

It

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%

$ 230,714.86 $ 206,279.35 $ 204,807.99


I
- 19 -

GLASCOCK COUNTY BOARD OF EDUCATION

COMBINING BALANCE SHEET



SPECIAL REVENUE FUND

JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 62,358.96 $

7,357.48

1,942.10 1 478.50
$ 6.5,779.56 $======7=3=57=.4=8=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue .
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Progr_ams 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 -

$ 1,801.33 $ 11,401.15

1,322.84 6,034.64

$ 13,202.48 $

7,357.48

$ 1,942.10 1,478.50
49,156.48 $
$ 52,577.08 $

0.00 0.00

$ 65,779.56 $ ====7,=3=57=.4=8=

r
1.'
!
"
!:

j:

EXHIBIT"E"

1;.

II

Ii

I.

!

I'

FEDERAL

TOTALS

1 .

PROGRAMS JUNE 30, 2001 JUNE 30, 2000

$

7,185.41 $

76,901.85 $

97,267.39

21,035.30

21,035.30

5,675.00

1,942.10 1 478.50

2,652.17 1,332.52

$ 28,220.71 $

101,357.75 $ ==1=06='=92=7=.0=8=

$

837.02 $

3,414.73

23,868.96

100.00

$ 28,220.71 $

3,961.19 $ 20,850.52 23,868.96
100.00
48,780.67 $

7,_653.96 26,319.12
6,610.02
40,583.10

$

89.37

$

1,942.10

1,478.50

2,652.17 1,332.52

$

0.00

49,156.48

62,269.92

$

0.00 $

52,577.08 $

66,343.98

$ 28,220.71 $

101,357.75 $ ==1=06='=92=7==.0=8=

- 21 -

GLASCOCK COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANC't:S
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 Maintenance and Operation of Plant Student Transportation Services Food Services Operation
Total Expenditures
Excess of Revenues 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

,$ 13,490.00 $ 194,097.83 116,856.88 77,684.82
$ 208,031.70 $ 194,097.83

$ 193,774.85

$ 221,145.14

322.98

$ 221,145.14 $ 1941097.83

$ -13,113.44 $

0.00

66,254.61

0.00

-710.07 145.98

$

52,577.08 $ = = = =0=.0= 0

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

EXHIBIT "F"

.

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

$ 65,289.00 $ 496,558.17

272,876.83 $ 613,415.05
77 684.82

$ 561847.17 $ - -9~ 63,9-76.70 $

198,667.40. 532,266.86
65,494.66
796,428.92

$ 320,664.82 $
41,835.88 184,637.85
14,797.99

$ 561,936.54 $

$

-89.37 $

89.37

514,439.67 $
41,835.88 184,637.85
15,120.97 221,145.14
977 179.51 $
-13,202.81 $
66,343.98

467,030.21
24,585.38 116,170.65
17,931.48 4,602.07 197,362.99
827,682.78
-31,253.~6
97,822.90

-710.07 145.98

-674.76 449.70

$

0.00 $

52,577.08 $ ===6=6=,3=43==98=

- 23 -

GLASCOCK COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001

.EXHIBIT "G';

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Accounts Payable FUND EQUITY
Fund Balances Reserved For SPLOST Projects Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

0.00 $

21,693.89 $

21,693.89 $

18,779.32

436.35.

436.35

5,648.01

22,589.34

22,589.34

32 496.70

$

0.00 $

44 719.58 $

44 719.58 $==5=6=,9=24==03=

$ 11 209.85

$

44,719.58 $

44,719.58 $

39,309.05

$

0.00

0.00

0.00

6 405.13

$

0.00 $

44 719.58 $

44 719.58 $

45 714.18

$

0.00 $

44 719.58 $

44,719.58 $ =~5=6=,9=2=4.=03==

See notes to the general-purpose financial statements.

-24"

GLASCOCK COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

.EXHIBIT"H"

Ii

CAPITAL PROJECTS FUND

I;

YEAR ENDED JUNE 30, 2001

1, I,

REGULAR

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

REVENUES

Taxes Other Funds

$ $ 2,000.00

174,169.41 $ 5 983.73

174,169.41 $ 7 983.73

157,635.88 9 200.70

Total Revenues

$ 2,000.00 $

180 153.14 $

182,153.14 $

166,836.58

EXPENDITURES

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment

$ $ 6,838.63

360,160.14 $ 639,669.38
19 545.59

360,160.14 $ 646,508.01
19 545.59

408,691.02

i
:I''

Total Expenditures

$ 6,838.63 $ 1,019,375.11 $ 1,026,213.74 $

408,691.02

j'.

Excess of Revenues over (under) Expenditures

$ -4,838.63 $

-839,221.97 $

-844,060.60 $ -241 854.44

1:

i,

OTHER FINANCING SOURCES {USES)

1;

Operating Transfers In Operating Transfers Out

$ $ -1,566.50

844,632.50 $

844,632.50 $ -1 566.50

181,908.04

Total Other Financing Sources (Uses)

$ -1,566.50 $

844,632.50 $

843,066.00 $

181 908.04

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -6,405.13 $

5,410.53 $

-994.60 $

-59,946.40

FUND BALANCE JULY 1 " i'.
11

1;

I'

FUND BALANCE JUNE 30

6,405.13

39,309.05

45 714.18

105,660.58

$

0.00 $

44 719.58 $

44 719.58 $

45714.18

See notes to the general-purpose financial statements.

- 25 -

GLASCOCK COUNTY BOARD OF EDUCATION

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

FIDUCIARY FUND TYPE - AGENCY FUND

-

YEAR ENDED JUNE 30, 2001

...EXHIBIT"!"

11 ,1;'
GLASCOCK COUNTY LIBRARY ASSETS
Cash and Cash Equivalents

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30 1 2001

$ 42,564.14 $ 9,915.00 $

41 460.32 $

11,018.82

LIABILITIES Funds Held for Others

$ 42,564.14 $ 9,915.00 $

41,460.32 $ ===1=1,=01=8.=82=

!. I

See notes to the general-purpose financial statements. - 27 -

GLASCOCK 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

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

. 10.553
. 10.555

NIA

$ 23,214.08

NIA

83,425.58 $

(2) 210,927.92 (3)

Total Child Nutrition Cluster

$ 106,639.66 $

210,927.92

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

NIA

10,217.22

10,217.22

Total U. S. Department of Agriculture

$ 116,856.88 $

221,145.14

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Severely Emotionally Disturbed

84.027 84.173 84.027

NIA

$ 65,896.83 $

NIA

6,785.21

N/A

1,394.00

65,896.83 6,785.21 1,394.00

Total Special Education Cluster

$ 74,076.04 $

.74,076.04

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I Accountability Grants Grants to Local Educational Agencies

. 84.348 84.010

N/A NIA

16,913.00 58,738.00

Title II

Eisenhower Professional Development

84.281

NIA

16,000.00

Title Ill Technology Literacy Challenge Fund Grants

. 84.318

N/A

125,000.00

Title VI Innovative Education Program Strategies Class Size Reduction

84.298

NIA

84.340

N/A

2,962.00 9,529.00

Goals 2000

State and Local Education Systemic Improvement

Grants

84.276

N/A

107,198.63

Safe and Drug-Free Schools.and Communities

84.186

N/A

2,204.00

Vocational Education - Basic Grants to States

High School Program Basic Grant

84.048

N/A

11,457.00

Pass-Through From Georgia Department of Human.

Resources Safe and Drug-Free Schools

M:186

N/A

36,213.00

16,913.00 58,738.00 16,000.00 125,000.00
2,962.00 9,529.00
107,198.63 2,204.00
11,457.00
36,213.00

Total U. S. Department of Education

$ 460,290.67 $

460,290.67

- 28-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U.S. Department of Pass-Through From Georgia Department of Human Resources Family Connection Program Block Grant for Prevention and Treatment of Substance Abuse
Total U. S. Department of Health and Human Services

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93.778 93.95,9

N/A

$ 3,480.50 $

N/A

32,787.00

'$ 36,267.50 $

3,480.50 32,787.00
36,267.50

Total Federal Financial Assistance N/A = Not Available

$ 613,415.05 $===7=17.,.,7=0==3=.3=1

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintc1ined separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Giascock County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

29

GLASCOCK 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 Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program . Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term Adjustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentoring Program Preschool Handicapped Program Remedial Summer School Lottery Programs Applied Technology Labs Computers in the Classroom
Human Resources, Georgia Department of Family Connection Program
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia"s Reading Challenge Reading First Program

See notes to the general-purpose financial statements.

- 30 -

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

95,716.00

12,260.00

313,558.00

92,753.00

139,749.00

226,774.00

184,007.00

101,278.00

60,262.00 130,979.00
29,211.00 87,942.00 29,438.00 20,095.00 47,909.00 13,391-.00 . 447,266.00

$

95,716.00

12,260.00

313,558 00

92,753.00

139,749 00

226,774 00

184,007.00

101,278.00

60,262.00 130,979.00
29,211.00 87,942.00 29,438.00 20,095.00 47,909.00 13,391.00 447,266.00

120,195.00 36,144.00 29,733.00 2,221.00 4,175.00 46,484.00
170,230.00 $
2,000.00

13,490.00

323.83 34,121.92
5,000.00 4,500.00 14,790.00 1,507.25

85,000.00 11,543.00

120,195.00 .36, 144.00 29,733.00
2.227.00 4,175.00 46,484 00 170,230.00 13,490.00 2,000.00
323.83 34,121.92
5,000.00 4,500.00 14,790.00 1,507.25
85,000.00 11,54300

50,000.00

50,000.00

97,554.83

97,554.83

11,798.00

11,798.00

22,029.oo

15,289.00

22,029.00 15,289.00

$ 2,537,846.00 $ 272,876.83 $ 2,810,722.83

GLASCOCK 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

Construction of additional classrooms, instructional and support space at Glascock Consolidated School, as well as remodeling and renovating existing classrooms, recreational fields, and grounds and to provide furnishings, equipment and fixtures for such areas $ 695,000.00 $ 1,446,199.00 $ 1.019,375.11 $ 423,531.02

Ongoing

Payment of principal and interest due on 1992 bonds

305,000.00

305,000.00

66,229.36

205,546.18 Ongoing

$ 1,000,000.00 $ 1,751,199.00 $ 1,085,604.47 $ 629,077.20

(1) The School District's original cost estimate as specified in the resolution calling for the imposition 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 Glascock C_ounty approved the imposition of a 1% sales tax to fund ~he above projects. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

i-
i

,.

See notes to the general-purpose financial statements.

- 31 -

GLASCOCK COUNTY BOARD OF EDUCATION

.

GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM /QBE)

EARNINGS AND EXPENDITURES - BY PROGRAM

YEAR ENDED JUNE 30. 2001

,,. SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle Grades (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category II

Category Ill

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

106,538.00 $ 13,646.00
349,012.00 103,241.00 155,550.00 252,415.00' 204,813.00 112,729.00 245,379.00
97,885.00 32,766.00 22,367.00

102,915.72 $ 32,838.86 260,997.30 92,612.32 217,474.57 327,411.95 249,642.02 132,128.93
150,611.25 60,520.24 112,309.42 39,636.29 60,489.78

15,850.53 $ 8,080.68 24,792.47 12,250.65 7,870.76 1,550.00 5,459.63 5,717.12
3,669.79 686.72
6,535.53
20.00

118,766.25 40,919.54 285,789.77 104,862.97 225,345.33 328,961.95 255,101.65 137,846.05
154,281.04 61,206.96 118,844.95 39,636.29 60,509.78

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

1,696,341.00 $ 1,839,588.65 $ 92,483.88 .$ 1,932,072.53

Media Center Program Staff and Professional Development

53,326.00 14,905.00

63,650.48 3,396.91

13,325.61 16,543.73

76,976.09 19,940.64

TOTAL QBE FORMULA FUNDS

$ 1,764,572.00 $ 1,906,636.04 $ 122,353.22 $ 2,028,989.26

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

See notes to the general-purpose financial statements.

- 32 -

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

.SCHEDULE "5"

SITE Glascock County Consolidated 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

$

1,673,974.00 $

1,871,562.75

22,367.00

60,509.78

$

1,696,341.00 $ ====1=,9=32=,0=7=2=.5=3

See notes to the general-purpose financial statements. - 33-

I
j;'
,' ' ,
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

I I
I

RussELL \\'. H1NTor-
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
. 254 Washington Street. S.W.. Suite 214 Atlanta. licurgia ~W~-1-X-100
February 26, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Glascock 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 Glascock County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated February 26, 2002. 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 auditiBg 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 Glascock 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 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.
. Internal Control Over Financial Reporting
In planning and performing our audit, we considered Glascqck County Board ofEducation'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
2001YB-40


control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. 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 Glascock County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6621-01-01 and FS-6621-01-02.
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 disc.lose all matters in the internal control that might be reportable conditions and, accorclingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider item FS-6621-0102 to be a material weakness.
This report is intended solely for the information and use of the management,.members of the Glascock 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.
---- Lo:4~ Respectfully submitted,
RWH:as 2001YB-40

.

RusSELL \\'. HINTON
I STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington S1ri.:i.:1. S.W.. SuilL' 214
Al lanta. (ii.:orgia 30334-8-Hl(l
February 26, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Glascock 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 of Glascock County Board of Education with the types of compliance requirements described in the US. Office ofManagement and.Budget (0MB) Cir:cular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Glascock County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Q~estioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Glascock County Board of Education's management. Our responsibility is to express an opinion on Glascock County Board of Education's compliance based on our audit.

We conducted our audit ofcompliance in accordance with auditing standards generally accepted in

1, '

the United States of America; the standards applicable to financial audits contained in Government

:

Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and

I

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

I
F

have a direct and material effect on a major Federal program occurred. An audit includes examining,

on a test basis, evidence about the Glascock 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 Glascock County Board ofEducation's compliance with those require?1ents.

2001S:A-30

In our opinion, the Glascock County Board ofEducation 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 Glascock 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 Glascock County Board of Education'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.
We noted a certain matter involving the internal control over compliance 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 compliance that, in our judgment, could adversely affect the Glascock County Board of Education's ability to administer a major Federal program in accordance with applicable requirements oflaws, regulations, contracts and grants. A reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FA-6621-01-01.
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 of risk that noncompliance with the applicable requirements oflaws, 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. Our considerati9n of the internal control over compliance 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 believe the reportable condition described above is not a material weakness.
This report is intended solely for the information and use ofmanagement, members ofthe Glascock County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:as 2001SA-30

State Auditor

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

GLASCOCK 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-6621-99-01 FS-6621-99-02 FS-6621-00-01 FS-6621-00-02 FS-6621-00-03

Further Action Not Warranted Further Action Not Warranted Partially Resolved - See Corrective Action/Responses Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS 'EMPLOYEE COMPENSATION EXPENDITURES/LIABILITIES/DISBURSEMENTS GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6621-00-01

Petty Cash has been discontinu'ed; however, the bank reconciliation function finding will not be resolved due to the limited number of central office staff members.

,

i

GENERAL FIXED ASSETS

Failure to Maintain General Fixed Assets Account Group

Finding Control Number: FS-6621-00-03

This finding will be resolved in Fiscal Year 2002 through contracting with Central Savannah River Area Regional Educational ServiceAgency to formulate a General Fixed Assets Account Group.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

F A-6621-00-01 F A-6621-00-02

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
yEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Glascock County Board ofEducation'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 Financial Statements The audit report for the Glascock County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Cash and Cash Equivalents

General Fixed Assets

Of the reporta~le conditions described above, General Fixed Assets is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit of the Glascock County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Glascock County Board of Education disclosed a reportable condition in internal control over major programs for the following compliance requirement.

Cash Management

The reportable condition described above is not considered to be a material weakness.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion: on the Glascock County Board of Education's report on compliance with requirements applicable .to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The Glascock County Board of Education's a'dit disclosed an audit finding required to be reported by section .51 0(a) ofOMB Circular A-133. This audit finding is included in section N of this report.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast I>rogram 10.555 Food and Nutrition Program - Food Services - National School Lunch Program 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.318 Elementary and Secondary Education Act - Title III - Technology Literacy Challenge Fund Grants

- 1-

GLASCOCK COUNTY BOARD OF EDUCATION



SCHEDULE OF FINDINGS AND QUESTIONED COSTS

YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Glascock County Board <:>f Education did not qualify as a low risk auditee as defined by Section .530 of 0MB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
CASH AND CASH EQUNALENTS Inadequate Internal Control Procedures Reportable Condition Repeated from Prior Year Finding Control Number: FS-6621-01-01
A review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control over Cash and Cash Equivalents as noted below:
The bank reconciliation function is not separated from the record keeping, check preparation, and deposit functions.
This condition was a result of management's decision to limit the number ofadministrative staff made responsible for the accounting functions and their failure to institute proper internal controls. The School District should review the accounting procedures in place, design procedures that would enhance segregation of duties and proper internal controls relative to the above control category and implement those procedures to strengthen the internal control over the accounting functions.
Management's Response:
The limited number of employees in the BOE. office prohibits resolution of this finding.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated from Prior Year Finding Control Number: FS-6621-01-02
The Glascock County Board of Education did not maintain a system-wi~e General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principle$. Appropriate action should be taken by the School District to establish accounting controls and procedures to

GLASCOCK COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

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-6621-01-02

provide for the 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 of all additions and deletions to the General Fixed Assets Account Group.

Management's Response:

This finding will be resolved during the current fiscal year FY 2002. The Glascock County BOE has contracted with CSRA RESA (or services from a Fixed Asset Analyst.

ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

CASH MANAGEMENT Inadequate Internal Control Procedures Reportable Condition U.S. Department of Education Through Georgia Department of Education Finding Control Number: FA-6621-01-01

A review of the School District's internal control policies and procedures noted deficiencies in

providing for adequate internal control over Cash Management for the Elementary and Secondary

Education Act - Title ill - Technology Literacy Challenge Fund Grants (CFDA 84.318) program.

Cash Management procedures disclosed that cash draws were made in advance of immediate cash

needs, resulting in the accumulation of excessive cash balances. This condition was a result of

management's failure to implement internal controls for monitoring compliance with Federal

guidelines. The School District should review the Federal compliance procedures in place, design

procedures which would enhance monitoring compliance with Federal guidelines and proper internal

controls relative to the above Federal compliance requirement and implement those procedures to

strengthen the internal control over Federal programs.



-3-