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

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' STATE Of GEORGIA.

L :OEPARTM~ENT .O.F AUDITS AND. ACCOUNTS'

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< GO~DON ~OUNTY:BOAR?-.C~F EDUCATION-;. ' ... ., - '. CA~HOUN, .'GEORGIA

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REPORT ON,AUDIT .

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OF THE-FINANCIAL:stAT~MENTS . ,,

.FOR THE FISCAL 'YEAR ENDED-JUNE 30, 2002

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Russell' W. Hinton -, ' '
State_'Auditor
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GORDON 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

AND EXPENDABLE TRUST FUNDS

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 NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITTONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

31

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

33

GORDON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDffiONAL FINANCIAL INFORMATION

SCHEDULES

I SCHEDULE OF EXPENDmJRES OF FEDERAL AWARDS

34

2 SCHEDULE OF STATE REVENUE

36

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

37

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

38

5

BY SITE

39

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

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

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

w. {11~~tLL HtNTON
SlATE .fJJOITOA
(40-:l bS6-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa.shmgton Street. ~ W Suite 214 Atlanla. Georgia 30334-8400
May 27, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Gordon County Board ofEducation
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 accompanymg general-purpose financial statements of the Gordon County Board of Education, as of and for the year ended June 30, 2002, as listed m the table of contents These general-purpose financial statements are the rcspons1b1hty of the Gordon County Board of Educat10n's management Our respons1b1lity 1s to express an opm10n on these general-purpose financial statements based on our audit
We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of Amenca and the standards apphcable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States Those standards reqwre that we plan and perform the audit to obtam reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit mcludes exammmg, on a test basis, evidence supportmg the amounts and disclosures m the financial statements An audit also mcludes assessmg the accountmg prmc1ples used and s1gmficant estimates made by management, as well as evaluatmg the overall financial statement presentallon We believe that our audit provides a reasonable basis for our opm10n
As descnbed m the notes to the general-purpose financial statements, the Board of Educalion's financial statements have been prepared usmg certam accountmg practices and pohc1es wluch, m our op1mon. vary m some respects from generally accepted accountmg pnnc1plcs These vanances are descnbcd as follows

2002ARL-13

The general-purpose financial statements of the Board of Educalion 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 pnnc1ples
School activ1ty accounts maintained at the ind1v1dual schools are not included in the general-purpose financial statements To conform to generally accepted accounting pnnc1ples, 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 port10n of salanes and the corresponding employer's cost of related benefits earned for contractual services completed pnor to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department ofEducahon for the State's share of these unrecorded salanes and related benefits were not recorded as revenue in the year under reVIew Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accounting pnnc1ples, 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 vanances or om1ss10ns have not been determined, but are beheved to be matenal
In our op1mon, 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 matenal respects, the financial pos1bon of the Gordon County Board of Education as ofJune 30, 2002, and the results of its operations for the year then ended, in conformity with accounting pnnc1ples generally accepted in the Umted States of Amenca
In accordance with Government Auditing Standards, we have also issued our report dated May 27, 2003, on our cons1derahon ofthe Gordon County Board ofEducat10n's intemal control over financial reporting and our tests of its comphance with certain prov1s1ons oflaws, regulations, contracts and grants That report 1s an integral part of an audit performed in accordance with Government Auditing Standards and should be read in coniunchon with this report in cons1denng the results of our audit
Our audit was performed for the purpose of formmg an op1mon on the general-purpose financial statements of the Gordon County Board of Educahon taken as a whole The accompanying combinmg statements (Exhibits E through L) and the financial schedules (Schedules I through 5), which includes the Schedule of Expenditures of Federal Awards as required by U S Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Orgamzat1ons, are presented for purposes of add1honal analysis and are not a required part of the general-purpose financial statements Such mformation has been subJected to the aud1tmg
2002ARL-13

procedures apphed m the audit of the general-purpose financial statements and m our opunon, except for the effects of the matters referred tom the tlnrd paragraph, such mformat1on 1s fairly stated, mall matenal respects, m relation to the general-purpose financial statements taken as a whole.
A copy ofth1s report has been filed as a permanent record m the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Sechon 506-24
Respectfully subnutted,
~~.~_k Hmton State Auditor
RWHgp 2002ARL-13

GORDON COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equlvalents
Investments
Accounts Receivable
lnventones Food Donated Commod1bes 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

s 3 657,987 24 $

867,290 56 $

905,352 42

43,15898

487,611 54

345,443 26

30,443 23 11,50414

Total Assets

$ 4188 757 76 $ 125468119 $

9051352 42

UAB!UTIES AND FUND EOU!TY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Contracls Payable Retamages Payable Funds Held for Others General ObUgatlon Bonds Payable
Total L1ab1lrt18S
FUND EOUIJY
Fund Balances Reserved For Debt Service For lnventones Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital OuUay ProJects Unreserved Designated for Self-Insurance Undesignated
Total Fund Equity

$

161,68711 $

148 930 83 $

74,780 00

480 473 35

24,519 59

10,14488

11501263 31,14990

$

s 246 611 99

629 404 18 $

17068212

$

30,443 23

11,50414

$

734,670 30

$

94,962 86

3 B,47 182 91

$ 3 942 145 77 $

583 329 64 625 277 01 $

0 00 734 670 30

Total Llebllrtles and Fund Equity

$

s s _ 418815176

125468119

__.9"'0"'51"'35.,2_4.,2_

The notes to the generai.purpose financial statements ere an Integral part of this statement -2-

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2002

JUNE 30, 2001

s s 7,795,485 77

9,974 79

$ 13,236,090 78 $ 11,890,432 36

43,158 98

42,129 29

862,591 39

1,695,646 19

2,305,509 43

s

4,070,000 00

30,443 23 11,50414
4,070,000 00

24,122 16 12,15910 7,594,031 04
135 968 96

$ 865807716 S

9 974 79 S

$

335,137 53 $

412,19205

555,253 35

505,019 63

80 70

115,01263

17,19046

31,14990

s

4 070 000 00

10,144 88 4 070 000 00

7,425 10 7 730 000 00

$

4 070 000 00 $ 511669829 $ 8 671 907 94

$ 4,070,000 00
4 588 077 16 $
s 8 658 077 16 $
$ 865807716 $

9 974 79 9 974 79

s 4,070,000 00 $ 7,483,610 38

30 443 23 11,50414 734,670 30

24,122 16 12,15910 722,185 29 997,536 30

94,962 86 9,028,564 50

95,250 60 3,997,580 57

s 13 970 145 03 $ 13 332 444 40

9 974 79 $

4 070 000 00 $ 19,086,843 32 $ 22 004 352 34

- 3-

GORDON COUNTY BOARD OF EDUCATION
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current lnstrucllon Support ServK:es Pupil Services Improvement of Instructional Services Educational Mecha Services General Admmlstrabon School Admlnlstrabon Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Serv,ces Other Support Serv,ces Food Services Operabon Community Services Operabons
Gapltal Outlay Debt Service
Pnnapal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTt:fER FINANCING SO!,!RCES (!JSES}
Operabng Transfers In Operabng Transfers Out
Total Other Fmancmg Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenchtures and Other Fmancmg Uses
F!,!ND BALANCE J!,!LY 1
Food Inventory - Net Change m Penod Donated Commochbes Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL REVENUE

CAPITAL PROJECTS

FUND

FUND

s s 28,367,962 18
3,798 75 9,315,025 11
770 457 35
s 38,457,243 39 $

1,587,55518 3,349,989 81
988,933 79 $
5,926,478 78 $

42 537 99 42 537 99

$ 25,437,142 56 $
1,074,563 06 1,233,890 40
825,580 69 502,185 01 2,048,085 76 330,796 35 3,593,565 34 2,299,606 55 137,680 61
22,421 33
333,320 56 32,000 00

2,976,497 82
411,81443 103,407 57
15,565 95 2,320 50
39,602 52 16,163 95
5,447 09 2,382,268 46
s

1,027,589 28

s $ 37,870,838 22

s

586 40517 s

s 5,953,088 29 -26 609 51 s

1,027,589 28 -985 051 29

s

s

-55 868 39

s

-55 868 39 s

s

s 530,536 78

3,411,608 99

55,868 39

55 868 39

29,258 88 s
590,352 02

-985,051 29 1,719,721 59

6,321 07 -654 96

s 3 942 145 77 $

s25 211 01 s_ ....1_.34_..5_10_3::,:o..,

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

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

{Memorandum Onl;t}

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 29,955,517 36

3,353 788 56

$ 4,855,241 06

14,170,26617

201 236 91

2,003,166 04 $

s 5 056 477 97 s 49,482,738 13 $

$ 21 591 62

29,955,517 36 $ 3,353,788 56
14, 170,26617 2,024,757 66

26,706,926 12 2,955,203 91 14,665,453 06 2,435,354 72

21 591 62 $ 49,504,329 75 $ 46 762 937 81

s $ 28,413,640 38

1,486 377 49 1,337,297 97
841,14664 504,505 51 2,048,085 76 330,796 35 3,633,167 86 2,315,770 50 137,660 61
27,86842 2,382,268 46
333 320 56 1,059,589 28

s 3 660,000 00
332,431 85

3,660,000 00 332,431 85

s s s 3,992,431 85 48 843 947 64 s s 106404612 638 790 49 s

28,347 59 $ 28,441,987 97 $ 26,108,322 49

1,486,377 49 1,337,297 97
841,146 64 504,505 51 2,048,085 76 330,796 35 3,633,167 86 2,315,770 50 137,660 61
27,86842 2,382,268 46
333,320 56 1,059,589.28

1,289,158 78 1,250,376 41
806,794 91 483,748 28 1,965,634 18 269,567 60 3,371,730 67 2,077,292 01 134,245 74
24,648 76 2,253,176 69
323,538 25 2,809,314 17

3,660,000 00 332,431 85

3,190,000 00 466,575 00 397 50

28 347 59 $
-6 755 97 s

48,872,295 23 $
s 632,034 52

46,824,521 44 -61 583 63

$

55,868 39

-55 868 39

s

000

s s 1,064,046 12 s 638,790 49

7,594,031 04

13,315,713 64

6,321 07 -654 96

s

55,868 39 $

-55 868 39

s

0 00 s

8,777 30 -8 777 30
0 00

-6,755 97 $

s 632,034 52

-61,583 63

16,730 76

13,332,444 40

13,377,069 02

6,321 07 -654 96

13,23313 3 725 88

s 8,658,07716 $ 1396017024 S

997479 $ 1397014503 $ 13,332,44440

-5-

GORDON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BVOOET AND ACTIJAL - !NON-GAAP BASIS) GENERAL AND SPEClAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 27,320,645 00 $ 28 387,962 18

1,00000

3,798 75

8,821,956 00

9,315,025 11

1TT 660 00

770457 35

Total Revenues
EXPENPITTJRES

$ 36,121,281 00 $ 38,457,243 39

Current Instruction Support Serw:es Pupjl Services llll)rovement of lnstrucuona1 SeMces
Educational Media Sel'VIC8s
General Administration School Admnstrabon Business AdrmnistratJon Maintenance and Operation of Plant Student Transportabon Serv1ce5 Central Support SeMCeS Other Support SeMCes Food Services Opera1Jon Community S8MC8S Operations CapUal Outlay

$ 25,407,829 00 $ 25,437 142 56

1 116,682 00
1,301,128 00 825,638 00 488,233 00
2 037,9TT 00
314,515 00
3,554,552 00 2 244,291 00
131,835 00 24,900 00

1,074,583 06 1,233,890 40
825,580 69
502,185 01
2,00l,085 76 330,796 35
3,593,585 34 2,299 606 55
137,680 61
22,421 33

128,500 00

333,320 56 32,000 00

Total Expeooltu"'5

$ 37,576,080 00 $ 37,870,838 22

Excess of Revenues over (under) Expendrtures

$ -1.4541799 00 $

586 405 17

PlliER El~~!~ SOURCES fUSESl

Other Sou:es Other Uses

$ -27 000 00 $

-55 868 39

Total Other Financing Sources (Uses)

$ -27 000 00 $

-55 868 39

Excess of Revenues and Other Ftnanong Sources over (under) ExpendttlKeS and Other Financing Uses

$ -1,48179900 $

530,536 78

FUND BALANCE JULY 1 2001

2,331,799 02

341160899

FLJNl:2 BALANC~ JUNE ~ ~2

$

n 8501000 02 $ 31942 1145

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,380,667 00 $ 1,587,55518 3, 120,275 00 3,349,989 81

946 11600

988 933 79

$ 514471058 00 $ 51926.478 78

$ 2,830 813 00 $ 2,978,497 82

315,672 00 98,83800 33,230 00 3,000 00

41181443
103,407 57
15,565 95
2,320 50

15,643 00
19,735 00
2,151,449 00

39,802.52 18 183 95
5,447 09 2,382,268 46

$ 5,468,178 00 $ 5,953,088 29 $ -21 120 00 $ -28 609 51

$ 27,000 00 $ 55,868 39

$ 27 000 00 $ 55,868 39

$

5,880 00 $ 29,258 88

597 461 15

554 070 76

$ 603 341 15 $ 5831329 64

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

GORDON COUN1Y BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note l SUMMARY OF SIGNIFICA1'.'T ACCOUNTING POLICIES
REPORTING ENTITY
The Gordon County Board of Educat10n (School D1stnct) was estabhshed under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appomted by the Board The School D1stnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not subJect to approval by any other entity Accordmgly, the School D1stnct 1s a pnmary government and consists of all the organizations that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1t1on and the results of1ts opcrat10ns Fund accountmg 1s designed to demonstrate legal comphance and to aid financial management by segregatmg transactions related to certam governmental functions or activities. A fund 1s a separate accountmg entity with a self-balancmg set of accounts An account group 1s a financial reportmg device designed to provide accountab1hty for certain assets and hab1hlles that are not recorded m the funds because they do not directly affect expendable available financial resources
General Fixed Assets are recorded as expenditures m the vanous funds at the time of purchase. A General Fixed Assets Account Group 1s not presently maintained by the School D1stnct To conform to generally accepted accounllng pnnc1ples, a General Fixed Assets Account Group should be mamtamed for reportmg the cost of assets acquired by governmental fund types
Although "school ac1Iv1ty accounts" are mamtamed at the md1v1dual schools, neither the assets, hab1hues and fund eqmty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m comphance with generally accepted accountmg pnnc1ples applicable to governmental units, unless otherwise disclosed m these notes Funds and the account b'l'Oup presented m this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educauonal actJv11Ies Governmental Fund Types mclude.
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted form another fund. These transacllons relate to resources obtamed and used for services proVJded by a board of educallon

- 8-

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I 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 pnmanly from the Georgia Department of Educatton and from the Federal government to accomphsh specific educattonal obJecttves
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms1bon or constructton ofmaJor eap1tal fac1hbes
DEBT SERVICE FUND - the fund used to account for the accumulatton ofresources for, and the payment of, general long-term pnnc1pal, mterest and paymg agent fees
FIDUCIARY FUND TYPE - the funds used to account for assets held by a government umt ma trustee capacity or as an agent for md1v1duals, pnvatc orgaruzaltons, other government umts and/or other funds These funds mcludc
EXPENDABLE TRUST FUNDS Ratner Fund - the fund used to account for the pnnctpal and earmngs which may be expended to provide expenditures approved by trustees of the Ratner Foundatton for specific purposes
Gordon Central High School Scholarship Fund - the fund used to account for the pnnc1pal and earmngs which may be expended to provide scholarships to graduatmg semors from Gordon Central High School who will be attendmg post-secondary mstttuttons ofh.tgber leammg
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg deVJce used to account for general obhgat10n debt outstandmg
BASIS OF ACCOUNTING
The accountmg and financial reportmg treatment apphed to a fund ts determmed by its measurement focus All governmental and expendable trust funds are accounted for usmg a current financial resources measurement focus Wtth this measurement focus, only current assets and current hab1hlles generally are mcluded on the balance sheet Opcrattng statements of these funds present mcreases (1 e, revenues and other financmg sources) and decreases (1.e, expenditures and other financmg uses) m net current assets Thetr reported fund balance ts considered a measure of available spendable resources.
Liab1ht1es which are expected to be financed from ava1lable spendable resources are reported as hdh1ht1es m the governmental funds Other habthttes, which are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group

-9-

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
nJNE Jo. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental and expendable trust funds are accounted for usmg the modified accrual basis of accountmg under which
Revenues are recogmzed when susceptible to accrual (1 e , when they become both measurable and available). "Measurable" means the amount of the transaction can be deterrnmed and "available" means collectible w1thm the current penod or soon enough thereafter to be used to pay hab1ht1es of the current penod The School D1stnct considers receivables collected withm sixty days after yearend to be available. Property taxes, sales taxes and mterest are considered to be susceptible to accrual. Nonexchange transactions, m wluch the School D1stnct gives (or receives) value without directly rece1vmg (or givmg) equal value m exchange, mclude property taxes, local option sales taxes, mtergovernrnental grants and donations. Revenue for property taxes 1s recogmzed m the fiscal year for which the taxes are levied. Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogmzed m the fiscal year m which all ehgib1hty reqmrements have been satisfied
Expenditures are generally recogmzed when the related fund hab1hty 1s mcurred.
A deparrure from the above defimt10ns 1s the accountmg treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel ofthe School D1stnct were employed for a one hundred and ninety day penod beginmng m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensat10n be paid m twelve equal monthly payments beginnmg m September 2001 and endmg m August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m 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 D1stnct subsequent to June 30, 2002 Also, the State's portion of the compensallon paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002 Generally accepted accounting pnnc1ples reqmre that revenues be recorded when available and measurable and that expenditures be recorded when mcurred, rather than when funds are received or disbursed
BUDGET
The Gordon County Board of Educallon's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon esllmates of expenditures together with probable fundmg sources There 1s no statutoryproh1b11Jon regardmg overexpend1ture ofthe budget at any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was estabhshed by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accountmg pnnc1ples.
- 10 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget process begms when the School D1stnct's adm1mstratlon prepares a tentative budget for the Board's approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once ma newspaper of general c1Tculat1on m the locality At the next regular meeting of the Board after adverl!sement, the Board receives comments on the tentative budget, makes rev1s10ns as necessary and adopts a final school budget This final budget 1s then submitted, m accordance with prov1s1ons of the Quahty Basic Education Act, OCGA Sect10n 20-2-167(c), to the Georgia Department of Education The Board may mcrease or decrease the budget at any time dunng the year. All unexpended budget authonty lapses at fiscal year-end.

The Statement of Revenues, Expenditures and Changes m Fund Balances - Budget and Actual presents actual and budgeted data for the Special Revenue Fund To fac1htate companson with the budget, the followmg adjustments have been made to fund balance as reflected on Exlub1t "B" oftlus report.

Special Revenue
Fund

FUND BALANCE JULY 1, 2001

$ 590,352 02

Adjustments Inventones - July 1, 200 I Food Donated Commodities Purchased Foods

-24,122 16 -12.159 10

Fund Balance July I, 2001 (Budget Basis)

$ 554,070.76

Excess of Revenues and Other Fmancmg Sources over (under) Expenditures and Other Fmancmg Uses

29,258 88

FUND BALANCE JUNE 30, 2002 (Budget Basis)

$ 583.329.64

CASH AND CASH EQUIVALENTS

COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term mvcstmcnts with ongmal matunhes of three months or less from the date of acqms1hon m authonzed financial 1nst1tut1ons. Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or insured Federal savmgs and loan associations.

- 11 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg mterest-earrung contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Part:Jc1patmg mterest-earrung contracts and money market mvestments with a matunty at purchase ofone year or less are reported at amortized cost Both part1c1patmg mterest-earnmg contracts and money market mvestments with a matunty at purchase greater than one year are reported at farr value The Oflic1al Code of Georgia Annotated Sechon 36-83-4 authonzes the School Distnct to mvest its funds and m selectmg among ophons for mvestment or among mshtullonal bids for deposits, the highest rate ofreturn shall be the obJecuve, given eqmvalent cond1llons of safety and hqu1d1ty Funds may be mvested m the followmg
(I) Obhgat1ons issued by the State of Georgia or by other states,
(2) Obhgat10ns issued by the Umted States government,
(3) Obhgahons fully msured or guaranteed by the Uruted States government or a Umted States government agency,
(4) Obhgat10ns of any corporation of the Umted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adm1mstered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgallons of other pohllcal subdJv1s10ns 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 mformallon available Receivables arc recorded when either the asset or revenue recogrut10n cntena has been met. Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessitate the need for an allowance for uncollecllble receivables.
PROPERTY TAXES
The Gordon County Board ofComm1ss1oners fixed the property tax levy for the 200 I tax digest year (calendar year) on November 30, 2001 (levy date) Taxes were due on January 30, 2002 (hen date).
- 12 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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 Gordon County Tax Comrruss1oner bills and collects the property taxes for the School D1stnct, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $8,892,873.39 and for school bonds amounted to $1,894 23

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

School Operations

~mills

SALES TAXES
Special Purpose Local Option Sales Tax revenue dunng the year amounted to $4,853,346 83 and 1s to be used for capital outlay for educational purposes or debt service This sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES lnventones of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods inventones 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 inventones are recorded as expenditures at the time of purchase The inventones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

COMPENSATED ABSENCES
Compensated absences represent obligations of the School D1stnct relating to employees' nghts to receive compensation for future absences based upon service already rendered This obligation relates only to vesting accumulating leave in which payment 1s probable and can be reasonably estimated No hab1hty has been recorded in the ind1v1dual funds for the current portion of this obligation as this amount 1s deemed 1mrnatenal to the general-purpose financial statements

Add111onally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this hab1hty 1s also deemed to be 1mrnatenal to the fair presentation ofthese financial statements

- 13 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgat10n bonds to proVIde funds for the acqms1t1on and construct10n of maJor capital fac1ht1es. Bond premiums and discounts, as well as issuance costs, are recogmzed m the financial statements dunng the year bonds are issued General obhgalion bonds are direct obhgalions and pledge the full faith and credit ofthe government. The outstandmg amount of these bonds 1s recorded m the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School D1stnct has the followmg types of mterfund transact10ns
Reimbursements ofexpenditures 1m!ially made from a fund that are properly apphcable to another fund are recorded as expenditures m the re1mbursmg fund and as reductions of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all mterfund transaclions other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are capt10ned "Memorandum Only" to md1cate that they are presented only to fac1htate financial analysis. Data m these columns do not present financial pos1lion or results of operalions m conformity with generally accepted accountmg pnnc1ples Neither are such data comparable to a consohdalion. lnterfund ehmmatlons have not been made m the aggregation ofth1s 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 many depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate ofthe face value of such surety bond and the market value of secunlies pledged shall be equal to not less than 110 percent ofthe pubhc funds bemg secured after the deduclion ofthe amount ofdeposit msurance Ifa depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe secuntJes pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe da!lypool balance OCGA Sect10n 45-8-11 (b) provides an officer holdmg pubhc funds may, m his discretion, waive the reqmrement for secunty m the case of operatmg funds placed m demand deposit checkmg accounts
Acceptable secunty for deposits consists of any one of or any combmatlon of the followmg

- 14 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
(I) Surety bond signed by a surety company duly quahfied and authonzed to transact busmess withm the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgallons of the Umted States or of the State of Georgia,
(4) Bonds, bills, notes, cerhficates of mdebtedness or other obligallons of the counlles or mumc1pahlles of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose,
(6) Industnal revenue bonds and bonds of development authonlles created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgat1ons of a subs1d1ary corporallon of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgallons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperallves, the Farm CredJt Banks, the Federal Home Loan Mortgage Assocrnllon, and the Federal Nallonal Mortgage Assoc1at1on
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $13,848,930 20 The amounts ofthe total bank balances are classified mto three categones of credit nsk.
Category 1 - Cash that 1s msured (e g., Federal depository msurance) or collateral1zed with secunlles held by the School D1stnct or by the School D1str1ct's agent m the School D1stnct's name.
Category 2 - Cash collaterahzed with secunlles held by the pledging financial 1nslltuhon's trust department or agent m the School D1stnct's name
Category 3 - Uncollaterahzed deposits (This mcludes any bank balance that 1s collaterahzed with secunhes held by the plcdgmg financial mslltul!on, or by its trust department or agent but not m the School D1stnct's name )
The School D1stnct's deposits are classified by nsk category at June 30. 2002, as follows

- 15 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

1

$ 7,599,075 46

2

5,357,212 73

3

892,642 01

Total

$13.848.930.20

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value ofthe School D1stnct's total mvestmcnts was $43,158 98 winch 1s matenally the same as fair value This mvestmcnt consisted entirely offunds mvested m the Local Government Investment Pool adm1mstcred by the State of Georgia, Office of Treasury and Fiscal Services which are not reqmred to be categonzed smce the School D1stnct did not own any specific 1dent1fiable secuntles m the pool The investment policy of the State of Georgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qmd1ty Portfolio) docs not provide for investment in denvatlves or s1m1lar investments A descnpt1on of the Pnmary
L1qmd1ty Portfolio 1s as follows

The Pnmary L1qu1d1ty Portfolio consists of Georgia Fund 1, which 1s a combination local and state government investment pool, and Fund 6 Georgia Fund l 1s a stable net asset value investment pool \\h1ch follows Standard and Poor's cntena 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 1s considered to be a Rule 2a7 like pool The pool's pnmary obJectlves are safety of capital, investment income, liqmd1ty and d1vers1ficatJon while maintaming pnnc1pal ($1 00 per share value) Net asset value 1s calculated weekly to ensure stability The pool d1stnbutes earnings (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed based on $1 00 per share Pooled cash and cash eqmvalents and investments arc reported at cost which approximates fair value The pool does not issue any legally binding guarantees to support the value of the shares Part1c1pallon in the pool 1s voluntary and deposits consist of funds from local governments, operating and trust funds of Georgia's state agencies, colleges and umvers1t1es, and current operatmg funds of the State of
Georgia's General Fund

- 16 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
Investments 111 Georgia Fund I and Fund 6 are directed toward short-term mstruments such as U S Treasury obhgatlons, secuntles issued or guaranteed as to pnnc1pal and mterest by the U S Government or any of its agencies or mstrumentaht1es, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was 0 12 years The average mvestment duratJon for Fund 6 on June 30, 2002, was 0 75 years
Note 3 NON-MONETARY TRANSACTIONS
The School D1stnct receives food commod1t1es from the United States Department of Agnculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at therr Federally assigned value. See Note 1 - Inventories
Note 4 RISK MANAGEMENT
The School D1stnct ts exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets, errors or om1ss1ons, Job related illness or mJunes to employees, acts of God, unemployment compensation and a dental plan.
The School D1stnct has obtamed commercial msurance for nsk of loss associated with torts, assets and errors or offi1ss1ons The School D1stnct has neither significantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the School D1stnct's insurance coverage m any of the past three years
The School D1stnct has elected to self-msure for all losses related to acts of God. The School D1stnct has not experienced any losses related to thts nsk m the past three years
The School D1stnct 1s self-insured with regard to unemployment compensation claims A premmrn 1s charged when needed by the General Fund to each user fund on the basis of the percentage ofthat fund's payroll to total payroll m order to cover estimated claims budgeted by management based on known claims and pnor expenence The School D1stnct accounts for claims with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estunated The School D1stnct has not mcurred any hab1ht1es for unemployment compensat10n durmg the past two fiscal years
The School D1stnct 1s self-msured with regard to dental claims. The School D1stnct accounts for claims w1thm the General Fund with expenditures and hab1hty bemg reported when probable that a loss has occurred, and the amount of that loss can be reasonably estimated
Changes m the dental claims hab1hty dunng the last two fiscal years are as follows

- 17 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note4 RISK MANAGEMENT

Begmnmg of Year Liab1hty

Claims and Changcsm Estimates

Claims Paid

End of Year Liab1hty

2001

$

000 $ 263,093 41 $ 263,093 41 $

0 00

2002

$

0 00 $ 313 943 00 $ 313,943 00 $

0 00

The School D1stnct part1c1pates m the Georgia Education Workers' Compensat10n Trust, a pubhc entity nsk pool orgamzed on December I, 1991, to develop, implement and adm1mster a program of workers' compensation self-msurance for Its member orgaruzatlons The School D1stnct pays an annual premmm to the Trust for its general Insurance coverage Add1t1onal msurance coverage 1s provided through an agreement by the Trust with the Umted States F1dehty and Guaranty Company to provide coverage for potential losses sustamed by the Trust m excess of $350,000 00 loss per occurrence, up to $2,000,000 00

The School D1stnct has purchased surety bonds to provide additional Insurance coverage as follows

Position Covered

Amount

Supenntendent Each Assistant Supenntendent Each Pnnc1pal Duector of School Nutnt1on

$ 30,000 00 $ 5,000 00 $ 5,000 00 $ 5,000 00

Note 5 GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Senes 1997 General Government - Senes 1998

400%-435% 4.00%-4 35%

$ 1,355,000 00 2,715.000 00

S 4,070,000, 00
Voters have authonzed $22,500,000 00 m general obhgat1on debt for advance fund mg of Special Purpose Local Options Sales Tax Proceeds which was not issued as of June 30, 2002

The changes m General Long-Tcrrn Debt dunng the fiscal year ended June 30, 2002, were as follows

- 18 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENERAL LONG-TERM DEBT

Balance July 1, 2001

General Obhgatlon
Bonds
$7,730,000 00

Deduct10ns Debt Retired

3,660,000 00

Balance June 30, 2002

$ 4,070,000,00

At June 30, 2002, payments due by fiscal year which includes pnnc1pal and interest for these items are as follows

Fiscal Year Ended June 30
2003
Note 6 SHORT-TERM DEBT

General Obligation
Bonds
$ 4,247,208.15

The School D1stnct obtains temporary loans in advance of property tax collectlons, depositing the proceeds in its General Fund This short-term debt 1s to provide cash for operations until property tax eollectlons are received by the School D1stnct in January Article IX, Section V, Paragraph V of the Constitution of the State ofGeorgia hm1ts 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

Temporary Loans

Begmnmg Balance

Add1t10ns

Payments

Endmg Balance

$._____.o.,.o.,.o $ 600 ooo oo $ 600,000 oo s.__....,ljo.i.o~o

Note 7 ON-BEHALF PAYMENTS

The School D1stnct has recognized revenues and expenditures in the amount of $416,442 08 for health insurance and retirement contnbutlons paid on the School D1stnct's behalfby the following Slate Agencies

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $359.512 08

- 19 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 7 ON-BEHALF PAYMENTS

Office of Treasury and Fiscal ScrYJccs Paid to the Pubhc School Employees Rehrement System For Pubhc School Employees Rehrement (PSERS) Employer's Cost In the amount of $56,930 00

Note 8 SIGNIFICANT COMMITMENTS

The following 1s an analysis ofs1gmficant outstanding construction or renovation contracts executed by the School D1stnct as of June 30, 2002, together with fundmg available

Pro1ect

Unearned Executed Contracts

Funding Available From State

SAOIS-664-057 SAO I S-664-058

$ 4,532,766 42 $ 691,890.00

3.I 02,565 12

212.121 00

$ 7.635.331.54 $ 2!.!4,Q I l,Q;Q

The amounts descnbed in this note are not reflected m the general-purpose financial statements

Note 9 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are subject to audit and review by grantor agencies Tlus could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School D1stnct believes that such d1sallowances, 1fany, will be 1mmatenal to its overall financial position

Note IO ACCUMULATED EMPLOYEES' LEAVE

The School D1stnct's adm1mstrat1ve staff and certain other full-time employees earn up to 15 days per year of annual leave, based on the number of years ofserYJce, with a maximum accumulation of 20 days Upon terminatJ.on ofemployment or retirement, employees shall be paid, at the current rate of pay, for unused accrued leave up to the maximum accumulation See Note 1 - Compensated Absences

Note 11 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substanhally all teachers, adm1mstrat1ve and clencal personnel employed by local school d1stncts arc covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-shanng mult1plc

- 20 -

GORDON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 11 RETIREMENT PLANS

employer defined benefit pens10n plan TRS provides service rettrement, d1sab1hty retrrcment and survivors benefits for its members m accordance with State statute The Teachers Rettrement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% ofthe1r gross earnmgs to TRS The School D1stnct makes monthly employer contnbullons to TRS at rates adopted by the TRS Board ofTrustees m accordance with State statute and as advised by their mdependent actuary The reqmred employer contnbuuon rate 1s 9 24% and employer contnbut1ons for the current fiscal year and the precedmg two fiscal years are as follows.

Fiscal Year

Percentage Contnbuted

Reqmred Contnbutlon

2002 2001 2000

100% 100% 100%

$ 2,240,578 52 $2,457,743 63 $ 2,305,336 03

- 21 -

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

ASSETS Cash and Cash Equivalents Accounts Receivable Inventories
Food Donated Commod1bes Purchased Food
Total Assets

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

715,686 56 $

180,140 58

5,448 01

30,443 23 1150414

s

757 633 93 $ _ _1_0_5.,5...,88._5..,9._

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable
Total Llabllltles
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undeslgnated
Total Fund Equrty
Total Llablhtles and Fund Equity

$

28,10615 $

41,367 79

104,250 n

144,220 80

$

132.356 92 $

185.588 59

$

30,443 23

11,50414

583.329 64 $

0 00

$

625 2TT 01 $

0 00

s

757 633 93 s ___1_05_._5a_.a..5..9.., 1

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

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30. 2001

$

895,827 14 $

906,556 14

$

339,995 25

345,443 26

337,370 19

30,443 23 1150414

24,12216 12 159 10

s

339 995 25 $ 128321777 $

s

28,536 58 $

28,536 58

79,456 89

148,930 83 $

261,376 60

232,001 78

480,473 35

428,398 27

80 70

s

339 995 25 $

657 940 76 $

689 855 57

$

$ _ _ _ _ _0=-=00"-

s

0 00 $

30,443 23 $ 11,50414

24,12216 12,159 10

583 32964

554 070 76

625 277 01 $ -~5~9=0=,3=52~02~

$

339 995 25 $ 128321777 $ 112501201 59

23

GORDON 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 lnstrucllonal Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expendrtures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expendrtures
FUND BALANCE JULY 1
Food Inventory - Net Change 1n Penod Donated Commod1bes Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

177,680 00 $ 1,409,875 18

1,286,835 85

940.269 29

$ 2,404.785 14 $ 1.409.875 18

$ 1,303,340 18
58,011 69 3,558 44

39,602 52 1,08515

$ 2.375.526 26

4 277 20

$ 2.375,526 26 $ 1.409.875 18

$

29,258 88 $

000

$

29,258 88 $

000

590,352 02

000

6,321 07 -654 96

$ 625 277 01 s _____o_o.o.

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

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 1,587,55518 $ 1,690,641 76

$ 2,063,153 96

3,349,989 81

2,919,480 77

48 664 50

988 933 79

100721927

$ 211181846 $ 5,926,478 78 $ 5,617,341 80

$ 1,673,157 64 $ 2,976,497 82 $ 2,904,497 76

353,802 74 99,849 13 15,565 95 2,320 50
15,078 80 5,447 09 2 465 00

411,814 43 103,407 57
15,565 95 2,320 50 39,602 52 16,16395 5,447 09 2,382,268 46

314,076 42 65,074 15 3,759 95 2,789 77 15,401 32 9,868 72 1,648 51
2,253,176 69

$ 2 167 686 85 $ 5,953,088 29 $ 5,570,293 29

$

-55,868 39 $

-26,609 51 $

47,048 51

55 868 39

55 868 39

8 777 30

$

0 00 $

29,258 88 $

55,825 81

0 00

590,352 02

517,567 20

6,321 07 -654 96

13,233 13 3 725 88

$

0 00 $

525 21101 s_...,.5._9..,o.,_,3,_52_0_2._

- 25 -

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

ASSETS Cash and Cash Equivalents

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

771 161 52 $-~-1-34..._19__0_9_0_

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retamages Payable
Total L1ab1hbes
FUND EQUITY
Fund Balances Reserved For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undes,gnated
Total Fund Equrty
Total L1abllltles and Fund Equrty

$

24,519 59

11,971 63 $

103,041 00

31 149 90

$

36 491 22 $

13419090

s

734,670 30

000 $

0 00

$

734 670 30 $

000

$

s___ 111161 52

1_34..._19_o_90..,_

See notes to the genera~purpose financial statements - 26 -

EXHIBIT"G"

LOTTERY PROJECT

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

o oo $

905,352 42 $ 1 738 455 37

$

24,519 59 $

115,012 63

31 149 90

1,543 32 17,190 46

$

170 682 12 $ _ _ _1:..,8:.,.7:..,3:.,:3'-'7-=8-

$

s _ _ _~o~o~o~

$

000 $

734,670 30 $
o oo
734 670 30 $

722,185 29 997,536 30
000
1 719 721 59

$

o oo $

1 738 455 37

- 27 -

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

REVENUES
Other Funds
EXPENDITURES
Capital Outlay Professional and Technical Services Rents Other Purchased Services Supplies Dues and Fees Land and Land Improvements Building and Building Improvements Equipment
Total Expendrtures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES)
Operabng Transfers In Operabng Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expendrtures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer
FUND BALANCE JUNE 30

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

42 537 99 $

000

$

363,812 97 $

1,18750 5,800 00

148 683 81

$

519 484 28 $

$

-476 946 29 $

87.523 75 2,998 00
49,899 03 8,130 13
5.500 00 311.499 00
13 826 58
479 376 49
-479 376 49

$

$

-508 105 00

$

-508 105 00 $

$

-985,051 29 $

722,185 29

997 536 30

479,376 49 479 376 49
000 0 00

s 734 670 30 s _____o__oo_

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

EXHIBIT "H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

000 $

42 537 99 $ _ _1~50~,3=26~2_1_

$

22,869 90 $

474,206 62

2,998 00

49,899 03

8,130 13

1,187 50 $

2,782 50

11,30000

3,585 00

311,499 00

1,692,585 09

5 858 61

168 369 00

543 756 86

$

28 728 51 $ 1,027,589 28 $ 2,242,709 45

$

-28 728 51 $ -985,051 29 $ -2,092,383 24

$

28,728 51 $

508,105 00 $ 1,649,146 51

-508,105 00

-1 649 146 51

$

28 728 51 $

000 $

000

$

0 00 $ -985,051 29 $ -2,092,383 24

997,536 30

1,719,721 59

3,812,104 83

-997,536 30

000

$

000 $

734 670 30 $ 1 719 721 59

- 29 -

GORDON COUNTY BOARD OF EDUCATION
COMBINING BALANCE SHEET
DEBT SERVICE FUND JUNE 30. 2002

EXHIBIT"!"

ASSETS
cash and Cash Equvalents Accounts Recervable
Total Assets
FUND EOUIJY
Fund Balances Reserved For Debi Service Unreserved Undeslgnated
Total Fund Equity

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS
JUNE 30, 2002 JUNE 30, 2001

$ 115,148 50 $ 7,680,337 27 $ 7,795,485 77 $ 6,775,095 51

155 63

862 435 76

862,591 39

818,935 53

$ 115,304 13 $

$ 8,542,773 03 $
$ 115,30413 _ _ _ _o~o=o~

8,542,773 03 $ 115 304 13

7,483,610 38
11 o420 66

$ 115 304 13 $

See notes to the general-purpose financial statements

- 30-

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

EXHIBIT.r

REVENUES Taxes Other Funds Total Revenues
EXPENDITURES Debt Service Pnncipal Interest Paying Agent Fees Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$ 1,894 23 s 4,853,346 83 $ 4,855,241 06 $ 4,941,299 68

2 989 24

198 247 67

201,1!36 91

371 342 83

$ 4,883 47 $ 5,051,594 50 $ 5,056,477 97 $ 5,312,642 51

$

000 $ 3,660,000 00 $ 3,660,000 00 $ 3, 190,000 00

332,431 85

332,431 85

466,575 00

397 50

s

000 s 3,992,431 85 s 3,992,431 85 $ 3,656,972 50

$ 4,883 47 $ 1,059,162 65 $ 1,064,046 12 $ 1,655,670 01

110,420 66

7,483,610 38

7,594,031 04

5,938,361 03

$ 115,30413 $ 8,542,773 03 S 8,658,077 16 $ 7 594 031 04

See notes to the general-purpose financial statements

- 31 -

GORDON COUNTY BOARD OE EDUCATION
COMBINING BALANCE SHEET FIDUCIARY FUND D'PES
JUNE 30 2002

EXHIBIT "K"

~ Cash and Cash EQuivalenls

EXPENDABLE TRUST FUNDS

RATNER

GOROON CENTRAL HIGH SCHOOL

FOUNDATION

SCHOlARSHIP

TOTALS

JUNE 30. 2002

JUNE 30. 2001

$

360865 $

6 366 14 $

g 974 -rg s_ _~1.::6.:,758~7:.::6:.

LIABIUTIES AND FUND EQUITY

LIABtllIIES

Aa::oc<lts Payable

FUND EOVID'

Fund Balances Un""'8rved Undeslg\ated

$

360865 $

Total Llabll1tles end Fund Eqllty

$

360865 $

$

2800

6.366 14 $, _ ___,,9:.,,9e;74,._7Q"'-

16 730 76

636614 $

g 974 79 s____1,.5._1,.sa._,1_6

See notes to the general-purpose financial stetemonts

. 32.

GORDON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2002

EXHIBIT "L"

RATNER FOUNDATION

GORDON CENTRAL HIGH SCHOOL
SCHOLARSHIP

TOTALS YEAR ENDED
JUNE 30, 2002 JUNE 30, 2001

REVENUES Other Funds

$ 15,394 00 $

6 197 62 $

21 591 62 $

19 868 52

EXPENDITURES

Current

Instruction

$

Excess of Revenues over (under) Expenditures $

FUND BALANCE JULY J

20,847 59 $ -5,453 59 $ 9,062 24

7 500 00 $ -1,302 38 $ 7 668 52

28 347 59 $ -6,755 97 $ 16 730 76

4 310 50 15,558 02
1 172 74

FUND BALANCE JUNE 30

$

3,608 65 $

6 366 14 $

9 974 79 s_ _1_6_7_30....,7.6..

See notes to the general-purpose flnane&al statements

33

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agncullure, U S Department of Child Nutrttk>n Cluster Pass-Through From Georgia Department of Educabon Food and Nutr1tlon Program Food Services School Breakfast Program National School Lunch Program
Total Chlld Nutrttloo Cluster
Other Programs Pass-Through From Georgia Department of Education Food end NutrtUon Program Food Dislrlbutlon Program (1) Pesa-Through From Office of Treasury and Fiscal Service. Natlonal Forest Re&erve Funds
Total U S Department of Agriculture

CFDA NUMBER

PASS THROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

$ 295,098 33

(2)

NIA

871,219 62 $

2,255.006 36 (3)

s s 1,166,317 95

2.255,006 36

10 550 10 665

NIA

120,517 90

120,517 90

NIA

3 798 75

!4!

s 1.290 634 60 $

2 375,526 26

Educabon, U S Department of Special Educabon Cluster Pass-Through From Georgia Department of Education lndlvlduats with Olsabtllbe& Education Act Part B Special Educa11on Flow Through Preschool Capaaty Bu~dmg
Total Speaal Educatton Cluster
Other Programs Pas,-..Through From Georgia Department of Educabon Elementary and Secondary Educabon Act TIUe I Grants to Local Educational Agenciea Title 11 Eisenhower Professional Development
nue v1
lnnovabve Educabon Program Strategres
Class Size Reducbon
Goals 2000 State end Local Education SystemlC Improvement Grants
Stewart B McKinney Homeless Assistance Act Education for Homeless Chddren and Youth
Vocational Educabon - Baste Grants to Stales High School Program Basic Grant
Total U S Department of Education

64 027 64 173 64 027
64 010 64 281 64298 64 340 64 276 64 196 64 048

NIA

s $ 816,630 63

NIA

81,922 39

NIA

10 867 34

s 909,620 56 $

816,630 63 81,922 39 10,867 34
909,620 56

NIA

868,735 92

NIA

28,125 70

NIA

33,778 07

NIA

145,562 00

868,735 92
28,125 70
33,778 07 176,763 23 (3)

NIA

6 691 40

NIA

30,000 00

6,691 40 30,000 00

NIA

40,640 31

40 640 31

s 2,063,153 96 $

2,094.355 19

Total Federal Flnancial Assistance
NIA = Not Available

34.

s $ 3,353,788 56

4 469 881 4S

GORDON COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENPEP JUNE 30 2002

SCHEDULE 1

Notes to th9 Schedule of Expepdttures of Federal Awards
(1) The amounts shown for the Food DISblbubon Program represents the Federally a&Signed value of nonmonetary assistance for donated commochlles received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not mamtamed separately and are rncluded In the 2002 National School Lunch Program
(3) Expenditures for tills program include State, and/or Other Funds Expenditures are not maintained by fund source
(4) Funds earned on tt11s program do not require reporting of expenditures
Major Programs are Identified by an estensk r) In front of the CFDA number
The SChool Dlstnct did not provkte Federal Assistance to any SubreclpienL
The accompanying schedule of expenditures of Federal awards includes the Federal grant actMty of the Gordon 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 generai-.purpose financial statements

See notes to the general-purpose financaal statements

- 35 -

GORDON COUNTY BOARD OE EPUCAT'ON
SCHEDULE OE STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCY1FUNP1NG
GRANTS
EducaOon Georgia Department of
Oualrty Bas,c Educabon Direct lnstruc:ttonal Cost Kmdergarten Program Kindergarten Program - Ear1y Intervention Program Pl1mary Grades (1-3) Program Primary Grades - Earty lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Middle Sdlool (6-8) Program High School General Education (9-12) Program Vocauooal Laboratory (9-12) Program
Students with Drsabllrt,es
category I Ca1egory II Ca1egory Ill Ca1egory IV Ca1egoryV Gtflad Student - Category VI AltemabYe Education Program
Engieh Speak'"" of OU- Languages (ESOL) 20 Day, Addrtlonal lns1rudlon Macha Center Program Staff and Professional Developmen1 Indirect Cost
CategoncalGrants Pup~ TranSJX)rtatk)n Regular Bus Replacement Sparsity Nurvig Serw:es Principal Supplements Vocabonal Supervisors
Educabon Equallzat1on Funding Grant FoodSe!w:es Vocabonal Educabon OU- Sta1'1 Programs
Appn,nuc:eshlp Program Can,er High Schools Tha1 Work Envtronmental Saence Program Health Insurance Mentor Teachers Next Generabon Schools Preschool Handicapped Program Teachers' Retirement Lottery Programs Asslsltve Technology Computera 1n the Classroom
Office al School Readiness
~ r t e n Program
Offrce of Treasury and Fiscal S8T'VIC8S Publk: SdlOOI Emp\oye89 Rebn!tmont
CONTRACTS Educabon, Georgia Departmen1 of Georgia's Reachng First Georgia's Reading Challenge
Human Resources, Georgia Department ol Famdy Advocate Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 1 109,508 00 =.20300
2,667,542 00 1,672,567 00 2,456,609 00 3,455,491 00 2,461,684 00
771,429 00
64,736 00 389,491 00 2, 113,080 00 454,750 00
29 396 00 375,043 00 245,839 00 190,427 00 144,537 33 558,013 00 111,85400 3 442,601 00

$ 1,109,508 00 =.20300
2,667,542 00 1,672,567 00 2,458,609 00 3,455,491 00 2,461,684 00
771,429 00
64,736 00 389,491 00 2,113,08000 454,750 00
29,396 00 375,043 00 245,839 00 190,427 00 144,537 33 558,013 00 111,854 00 3 442,601 00

975,664 00 292,046 00
20,000 00 127,473.00 25,950 00
31,334 00 2,600,314 00
$ 53,677 00

177,680 00

35,000 00 1,960 00 75000
359,512 08 7,903 00 594 00
65,437 00 17,98316

14,443 16 145,00283

975,684 00 292,046 00
20,00000 127,473 00
25,950 00 31,334 00 2,600,314 00 177,680 00 53,677 00
35,000 00 1,98000 75000
359,512 08 7,903 00 594 00
65 437 00 17 983 16
14,443 16 145,002 83

1,250,429 19

1.250,429 19

56,930 00

56,930 00

70,715 57 54,887 25
13311179

70,715 57 54,867 25
133,111 79

See notes to the general--pu'pose finanaal statements

$ 28 367,962 18 $ 115871555 18 $ 29,955,517 36 - 36 -

GORDON 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)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3)(4)

PROJECT STATUS

AcqulsHlon, coostructlon and equipping
new school fec1IIUes and the renovating,
expanding and Improving or Belwood,
Falnnount, Red Bud, Swam and Tolbert Elementary Schools, Ashworth and Sonoravllle Middle Schools and Gordon Central High School, Including &peclfica.Uy but not hmrted to the acqulslbon of necessary land site work and paV1ng for sudl facilities,
the acquisition or pupil transportation
equipment and the acqulsibon and construction of classrooms, kitchen and cafeteria areas, physical education, media and technology labs and centers, together
with necessary equipment Including HVAC systems, technology, wmng, cabling end classroom equipment The capital outlay pl'Oj9cis shaU also Include the acqu1sltlon, construction, renovabon and equipping of bus maintenance and transportation faalllNls

$ 19622,14700 $ 2010881147 00 $ 1,027,589 28 $ 15,530,130 32

Ongoing

( 1) The School District's original cost asbmate as specified In the resolutlon callU1g for the 1mposlbon of the Local Option Sales Tax

(2) The School Olstr1ct's current e&tnnate of total cost for the prtlf9CI Includes all cost from pnJfeCI inception to complebon

(3} The voters of Gordon County approved the Imposition of a 1% sales tax to fund the above pl'Of8C1 and rebre
associated debt Amounts expended for this p ~ may tnclude sales tax proceeds, state, local property taxes end/or other funds over lhe hfe of the protect

(4) In addition to the expenditures shown above, the School Dislrlct hes incurred interest expense to pf'OV'lde advance funding for the above pro,ect as follows

Pnor Years

$ 1,859 280 63

Current Year

332,431 85

Total

See notes to the general-purpose finanoal slalements

- 37

GORDON COUNTY BOARD OF EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) ALLOTh1ENT AND EXPENDITURE - BY PROGRAM
YEAR ENDED JUNE 30. 2002

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Earty lntervenbon Program Primary Grac!ea (1-3) Program Primary Grades-Eany lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Gradas-Earty ln1elventlon (4-5) Program Middle School (6-8) Program High School General Educabon (9-12) Program Vocational Laboratory (9-12) Program S1udon1s wllh Dlsabicategory II ca1egory111 ca1ego,y1V categoryV Gifted Studonl - category VI Allernative Educabon Program Engl'6h Speaker.; of Other longuOQ88 (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Mecha Center Program Slaff end P-..1ona1 Developmont

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

1,231,253 00 $ 1,575 781 52 $ 95,337 97 $ 1,671,11949

801,450 00

436,497 05

19 404 51

455,901 56

2,960,251 00 2,854,430 17

185,080 64

3,039,510 81

1,856,098 00 1,526,006 34

35,154 18

1,581,160 52

1,466,646 00 2,116,279 80

124,301 46

2,240,581 26

1,259,529 00 3 834,662 00 2,731,805 00
856,07800 3,386,289 00
416,196 00 272,815 00 21132300

829,946 75 3,742,981 31 3,675,152 93
652,103 74
548,898 30 2,420,344 09
491 12 883 38 359,772 04 311,805 31 237,493 19

4,389 18 149,088 27 138,508 75
96,092 79
35,1TT 43 102,113 81
4,564 16 63,680 00
497 91

834,335 93 3,892,069 58 3,813,661 68
748,196 53
584,075 73 2,522,457 90
49112 883 38 364,336 20 375,485 31 237,991 10

$

s s s 21,284,395 00 21,288,667 04

1,053,391 06

22,342,058 10

619,244 00 124 127 00

670,583 96 95,722 79

145,756 15 34 197 34

816,340 11 129,920 13

TOTAL QBE FORMULA FUNDS

$

221027 i766 00 S 2210541973 79 $ 112331344 55 $ 23,2881318 34

(1) Comprised of State Funds plus Local Flve MIU Share

See notes to the generaj.purpose financial statements

- 38 -

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

SCHEDULE "5"

SITE
Tolbert Elementary School Red Bud Elementary School Sonorav1lle East Middle School Swain Elementary School Gordon Central High School Ashworth Middle School Belwood Elementary School Fairmount Elementary School Central Office (Altemabve Education Program) Other Auxlhary Faclllty
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,465,950 00 $

2,407,229 22

2,841,789 00

2,705,929 24

2,443,499 00

2,561,246 00

2,024,041 00

2,174,607 99

4,641,196 00

5,454,641 65

2,378,786 00

2,631,303 62

2,418,505 00

2,690,229 17

1,797,814 00

1,700,665 29

272,815 00

16 205 92

$

2112841395 00 $

See notes to the genera~purpose financial statements - 39 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Ji,SFLL W. HINTON
$TATE AUDITOR
(404) 656-217

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wd.shmglOn Street, ~ W Sunc 214 AtlJnla, Gcorg1J 30334-8400
May 27, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducat10n
and Supenntcndent and Members of the Gordon 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 Gordon County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated May 27, 2003 This report was qualified for vanous departures from generally accepted accounting pnnc1plcs, as 1denllfied in the auditor's report on the general-purpose financial statements We conducted our audit in accordance with auditing standards generally accepted in the Umted States of Amenca and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the Umted States
Compliance
As part of obtaining reasonable assurance about whether Gordon County Board of Education's financial statements are free of matenal misstatement, we performed tests of its compliance with certain prov1s10ns oflaws, regulallons, contracts and grants, noncompliance with which could have a d1rect and matenal effect on the determinallon of financial statement amounts However, providing an op1mon on compliance with those prov1s10ns was not an objective of our audit. and accordingly, we do not express such an op1mon The results ofour tests disclosed no instances ofnoncompliance that are reqmred to be reported under Government Auditing Standards
Internal Control Over Financial Reportmg
In planning and performing our audit, we considered Gordon County Board ofEducation's internal control over financial reporting in order to determine our aud1tmg procedures for the purpose of expressing our op1mon on the financial statements and not to proVIde assurance on the mternal
2002YB-41

control over financial reportmg However, wc noted a ccrtam matter mvolvmg the mtemal control over financial reportmg and its operation that we consider to be a reportable condJt10n Reportable cond1t10ns mvolve matters commg to our attention relating to s1gmficant defic1enc1es m the design or operation ofthe mtemal control over financial reportmg that, m ourJudgment, could adversely affect Gordon County Board ofEducation's ab1hty to record, process, surnmanze and report financial data consistent with assertions of management in the financial statements. The reportable condition 1s descnbed m the accompanying Schedule ofFmdmgs and Quest10ned Costs as item FS-6641-02-01
A matenal weakness 1s a condition m which the design or operat10n of one or more of the mtemal control components does not reduce to a relahvely low level the nsk that misstatements m amounts that would be matenal m relation to the financial statements bemg audited may occur and not be detected w1thm a hmely penod by employees m the normal course of perfonnmg their assigned functions Our consideration of the mtemal control over financial reporting would not necessanly disclose all matters m the mtcmal control that might be reportable cond1hons and, accordingly, would not necessanly disclose all reportable conditions that are also considered to be matenal weaknesses However, we consider item FS-6641-02-01 to be a matenal weakness.
This report 1s mtended solely for the mfonnatlon and use of the management, members of the Gordon County Board of Education, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,
~~w...:J:i'b;.
~ellW Hmton State Auditor
RWHgp 2002YB-41

lJ~tl I W. HINTON
STATE AUDITOR
(4:J,t) 656-217A

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street, SW Suite 214 AtlJnta, Georgia 30334-840()
May 27, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Educat10n
and Supenntendent and Members of the Gordon 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 ofGordon County Board ofEducat10n with the types ofcomphance reqmrements descnbed in the US Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of1ts maJor Federal programs for the year ended June 30, 2002 Gordon County Board of Educalion's maJor Federal programs are 1dent1fied in the Summary of Auditor's Results Sect10n of the accompanying Schedule of Findmgs and Qucslloned Costs Compliance with the reqmrements of laws, regulat10ns, contracts and grants applicable to each of its maJor Federal programs ts the respons1b1llty of Gordon County Board of Education's management Our respons1b1hty 1s to express an opin10n on Gordon County Board of Educalion's comphance based on our audit
We conducted our audit of compliance in accordance with auditing standards generaJly accepted m the United States ofArnenca, the standards applicable to financ1aJ audits contamed in Government Auditing Standards. issued by the Comptroller General of the United States, and 0MB C1Tcular Al 33, Audits of States, local Governments, and Non-Profit Organzzatwns Those standards and 0MB C1Tcular A-133 reqmre 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 d1Tect and matenal effect on a maJor Federal program occurred An audit includes examinmg, on a test basts, evidence about the Gordon County Board of Education's compliance with those rcqmrcments and performing such other procedures as we considered necessary in the circumstances We believe that our audit provides a reasonable basis for our optruon Our audit does not provide a legal determination on Gordon County Board of Education's compliance with those requirements
2002SA-I0

In our op1mon, the Gordon County Board of Education complied, mall matenal respects, with the reqmrements 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 Gordon County Board of Education 1s responsible for establishmg and mamtammg effective mternaJ control over compliance with rcqmrements of laws, regulations, contracts and grants applicable to FederaJ programs In plannmg and perforrnmg our audit, we considered Gordon County Board ofEducauon's mternaJ control over compliance with reqwrernents that could have a drrect and matenal effect on a maJor Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opinion on compliance and to test and report on mtemal control over compliance m accordance with 0MB Circular A-133
Our cons1derat10n of the mternaJ control over compliance would not necessanly disclose all matters m the mtemal control that might be matenaJ weaknesses A matenal weakness 1s a cond1t1on m winch the design or operation ofone or more ofthe mtemal control components does not reduce to a relatively low level of nsk that noncompliance with applicable requirements of laws, regula!ions, contracts and grants that would be matenal m rela!Jon to a maJor Federal program bemg audited may occur and not be detected withm a timely penod by employees m the normal course ofperforrnmg their assigned functions We noted no matters mvolvmg the mtemal control over compliance and its operation that we consider to be matenaJ weaknesses
This report 1s mtended solely for the mforrnatlon and use of the management, members of the Gordon County Board ofEducat1on, Federal awardmg agencies and pass-through entitles and 1s not mtended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~.., Ql~~~ - ;:+11 W Hmton State Auditor
RWHgp 2002SA-10

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

GORDON 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-6641-00-0 I FS-6641-01-0 I

Further Action Not Warranted Umesolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Fmdmg Control Nwnber FS-6641-01-01

In the past, due to staffing hm1tallons and budgetary cons1derallons proh1b1tmg the hmng of add1t1onal staff, the Gordon County Board of Education decided not to pursue the recordmg of fixed assets on the financial statements. However, plans are now to pursue the recordmg of fixed assets on the financial statements. The Gordon County Board of Educallon has purchased McAleer Fixed Asset Software package and began recordmg current purchases of fixed assets on Januacy I, 2002 The Gordon County Board of Education also contracted with Valuation Advisory Group, Incorporated to conduct an mventory and value fixed assets currently on hand This report will be complete by June 30, 2003, and will be used to record fixed assets for fiscal year 2003

SECTION IV FINDINGS AND QUESTIONED COSTS

GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY OF AUDITOR'S RESULTS
I Type of Report Issued on the Financial Statements The auditor's op1mon on the Gordon County Board of Education's financial statements was qualified for various departures from generally accepted accountmg pnnc1ples
2 Reportable Cond1t1ons m Internal Control Disclosed by the Audit of the Fmanc1al Statements The audit report for the Gordon County Board of Education disclosed a financial statement reportable condition related to the followmg control category
General Fixed Assets
The reportable cond1tion descnbed above 1s considered to be a matenal weakness
3 Noncompliance Matenal to the Fmanc1al Statements The audit of the Gordon County Board of Education disclosed no mstances of noncompliance that were deemed to be matenal to the financial statements
4 Reportable Cond1t10ns m Internal Control Over Ma1or Programs The audit report for the Gordon County Board of Education did not disclose any reportable conditions m mtemal control over maJor programs
5 Type of Report Issued on Compliance for Ma1or Programs The auditor's opm10n on the Gordon County Board ofEducation's report on compliance with requuernents applicable to maJor programs was unqualified
6 Audit Fmdmgs Reqmred to be Reported by Section 51 0(a) of 0MB Circular A-133 The Gordon County Board of Education's audit did not disclose audit findmgs reqmred to be reported by section 510(a) ofOMB Circular A-133
7 Ma1or Programs Federal awards audited as maJor programs are as follows 10 553 Food and Nutntlon Program - Food Services - School Breakfast Program IO 555 Food and Nutntlon Program - Food Services - National School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00
9 Low Risk Aud1tee The Gordon County Board ofEducation qualified as a low nsk aud1tee as defmed by Sect10n 530 ofOMB Circular A-133
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GORDON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
11 FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintam General Fixed Assets Account Group Reportable Condition - Matenal Weakness Repeat From Pnor Year Finding Control Number FS-6641-02-01
The Gordon County Board of Educat10n did not maintain a system-wide General Fixed Assets Account Group w1thm the formal accountmg records as reqmred by generally accepted accountmg pnnc1ples This cond1t1on results m the general-purpose financial statements of the School D1stnct bemg incomplete and not m accordance with generally accepted accounting pnnc1ples Appropnate action should be taken by the School D1stnct to establish accountmg controls and procedures to provide for mamtenance of a General Fixed Assets Account Group These subs1d1ary records should include an mventory of land, bu1ldmgs and eqmpment owned by the School D1stnct and should mcludc, but may not be hm1ted to, date acquired, acqu1s1t1on cost, estimated replacement cost, location and descnptlon Detailed records should be maintamed of all add1t1ons and deletions to the General Fixed Assets Account Group Management's Response
The Gordon County Board of Educat10n did not mamtain General Fixed Assets m the accountmg records as reqmred by generally accepted accounting pnnc1ples Due to staffing hm1ta!Jons and budgetary cons1derat1ons proh1b1tmg the hmng of add1t1onal staff, the Board chose not to pursue the recordmg of the general fixed assets on the financial statements for FY2002 However, the Board has purchased fixed asset trackmg software and began keepmg up with current year purchases on January I, 2002 Fixed assets have been evaluated and reports have been received and recordmg of fixed assets will be implemented m FY2003 records
llI FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
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