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

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-: ': GRE~NECO(JNT'(.BOARD,'OF EDUCATION.

GREENSBORo. ,

-G'EOR"GIA

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ofrHE FINANCIAL srArEM.ENrs'.. ,,

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' FOR THE FISCAL YEAR-ENDED iUNE 30, :2002

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Russ_ell-W: H\l')ton

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State Auditor '

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GREENE COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTTJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

II

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

26

2 SCHEDULE OF STATE REVENUE

28

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

GREENE COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -
SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCEwrnIGOVERNMENTAUDITINGSTANDARDS REPORT ON COMPLIANCE WTil-1 REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII 0MB CIRCULAR A-133
SECTION III AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION! FINANCIAL

{tJ<,.<,EU. W. HINTON
STATE AUDITOR (404\656-;,1;4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW ~u,tc 214 AtlJntJ, Georgia 30334-8400
Apnl 25, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducahon
and Supenntendent and Members of the Greene County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanymg general-purpose financial statements of the Greene County Board of Education, as of and for the year ended June 30, 2002, as hsted m the table of contents These general-purpose financial statements are the respons1bt!Jty of the Greene County Board of Education's management Our respons1b1hty 1s to express an opm1on on these general-purpose financial statements based on our audit
We conducted our audit m accordance with aud1tmg standards generally accepted m the Umtcd States of Amenca and the standards apphcable to financtal audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Uruted States Those standards require 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 accounting pnnc1plcs used and s1gruficant estimates made by management, as well as evaluatmg the overall financial statement presentation We beheve that our audit prov,des a reasonable basis for our op1mon
As descnbed m the notes to the general-purpose financial statements, the Board of Educatmn's financial statements have been prepared usmg certam accountmg practices and pohc1es wluch, m our opmton, vary m some respects from generally accepted accountmg pnnc1ples These vananccs arc descnbed as follows

2002ARL-l3

The general-purpose financial statements of the Board of Educat10n did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Educat10n which should be included to conform to generally accepted accounting pnnc1ples.
School acllv1ty accounts mainta1Ded at the 1Dd1v1dual schools arc not included m 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 Educallon did not recognize as expenditures, in the year ended June 30, 2002, a portion of salanes and the correspond1Dg 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 ofEducallon for the State's share of these unrecorded salanes and related benefits were not recorded as revenue in the year under review Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30, 200 I, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accountmg 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 f1Danc1al statements of these vanances or om1ss1ons have not been determ1Ded, but are believed to be matenal
In our opin10n, except for the effects on the general-purpose financial statements of the matters referred to m the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all matenal respects, the financial pos1hon of the Greene County Board of Educallon as ofJune 30, 2002, and the results of1ts operallons for the year then ended, in conformity with account1Dg pnnc1ples generally accepted ID the United States of Amenca
In accordance with Governrnent Auditing Standards, we have also issued our report dated Apnl 25, 2003, on our cons1dera11on of the Greene County Board of Educallon's internal control over financial report1Dg and our tests of1ts compliance with certain prov1S1ons oflaws, regulallons, contracts and grants That report 1s an integral part of an audit performed in accordance With Government Auditing Standards and should be read in conJunctJon With this report ID cons1denng the results of our audit
Our audit was performed for the purpose of forming an op1ruon on the general-purpose financial statements of the Greene County Board of Educat10n taken as a whole The accompany1Dg combin1Dg statements (Exlub1ts E through H) and the financial schedules (Schedules I through 5), which 1Dcludes the Schedule of Expenditures of Federal Awards as requrred by U S Office of Management and Budget Circular A-133, Audzts of States, local Governments, and Non-Profit Orgamzat1ons, are presented for purposes of add11lonal analysis and are not a required part of the general-purpose financial statements Such informallon has been subJected to the auditing
2002ARL-!3

procedures apphed m the audit of the general-purpose financial statements and m our op1mon, except for the effects ofthe matters referred tom the th1rd paragraph, such mformallon 1s fiurly 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 Offic1al Code ofGeorgia Annotated Secllon 506-24.

Respectfully submitted,

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(<l.<1~h

RWHas 2002ARL-13

State Auditor

GREENE COUNTY BOARD OF EDUCATION

GREENE COUND' BOARD QF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROlP JUNE 30 2002

Cash and Cash EqlJIValents
Investments
Accounts Recewable
Prepaod Items
lnventones Food Donated Commod1bes Purchased Food
Amount Available In Debi Service Fund
Amooot to be Provided In Future Years For Payment of Sood Debt
Capital Lease Agreement&
TotalAsaete

GENERAL
FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

834,333 88 $

105 474 85 $ 6,757,591 51

1,489,086 86

125,416 42

190,574 41

229 568 17

320 553 25

393,875 13

36,060 00

23,939 24 8 718 33

$ 2 58Q 048 71 $ 584 102 09 s __,~,"".:::2:.:04~1.:,o::;:s_

LIABILITIES AND FUND EOUIIY
LIABILITIES
Cash Overdraft Accounts Payable Salone, Payabla Expired Grant Balances Payable Contracts Payablo Rotanages Payable Deferred Revenue Capet.al Lease Agreements Ganeral O b i - Bonda Peyable
Total Llablllbes
FUND EQUITY
Fund Balance& Rese:ved For Debt Service For lnventor18s Food Donated Commodities Purchased Food For Purpose of Bond IS&Ue For State Gaprtal Outlay Projects UnreseMld Unclesignated
Total Fund EQIJlly

$

58 108 36 S

47,17332 $

99 984 80

220,35239

25087

1,349 87

$

59108 38 S 269 126 45 $ ___99=-='-'80"'-

$

23 939 24

8,718 33

$ 7,242,056 25

$ 215291940 35 $ 2,5291940 35 $

282 318 07 314 975 64 $

ODO 7,242,056 25

Total Liabl1rtles and Fund Equrty

$ 2~104871 $

584 102 09 $ 7 342 041 05

The notes to the g e n e r a ~ financial statements are en Integral part of this statement . 2.

DEBT
SERVICE
FUND

s

555 236 92

2.245 260 99

ACCOUNT
GROUP
GENERAL
LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30 2002

JUNE 301 2001

s 8 252.636 96 S

846,37215

4,050,338 68

4 928 565 48

943 996 55

938,768 75

36 060 00

41 918 00

s 2,600,497 91

23 939 24 8 718 33
2 800 497 91

21,201 40 6,498 09
2,544 203 05

8180,502 09 1 505 523 75

8 199 502 09 1,505,523 75

2 305 796 95 1 537 317 80

s 2 soo 40101 s 12 sos 523 1s s 2s,e21 1213 s1 s 13 111 641 67

$

s

206,266 48

220,352 39

25087

s 1.~.52375
11,000,000 00

134987 1,505,523 75 11000000 00

$ 12 505 523 75 $ 12 933 743 36 $

233 181 46 184,332 59 183,669 77
23 548 85 299,951 93 379 72211
1,537,317 80 4 850 000 00
7 691 724 51

s 2 800 497 91
000
s 2 800 497 91

s $ 2 BOO 497 91

2 544 203 05

23,939 24 8 718 33
7 242 056 25
2 1e1212sa -42
s 12 687 470 15 $

21 201 40
e 498 09
33 338 32 1714989
2,8571528 41
547991716

$ 2 800 497 91 $ 1~505,523 75 $ 25 821,213 51 $ 13 171 641 67

-3-

GREENE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OE BE\/ENUES EXPENPITUBES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002

REVENUES
State Funds Federal Funds Taxos Other Funds
Total Revenues
EXPENDITURES
Cooent Instruction Support SeMces Pup,ISeMCeS Improvement of lnstrudlonal SeMCSS Educational Media Services General Administrauon Sdlool Adm1rustrabon Business Admm1strab0n Maintenance encl Operat,on of Plant Student TransportabOn Servicos Central Support Servk:es Other Support Serw::es Food Services Opera1lon ConYnlnty Services Operabons
Caprtal Outlay Debt SeMCe
Pnoopal ln1erest
PaY'1IJ Agent Fees
Total Expendll\.nls
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES)
Acaued lnterttSt on Bonds Sold Premiun on Bonds Sold Proceeds from General Obbgation Bonds
ParValue Capital Leases Operating Transfors In Operating Transfers Out
Tola! Other F1nanang Sourcos (Uses)
Excess of Revenuos and Othor Financmg Sources over (under) Expendrtures and Other Flnanc:mg Uses
FUND BALANCE JULY 1
Food Inventory - Net Change In Penod
Donatocl Con'Wnod1tles Pun:hasod Food
FUND BALANCE JUNE 30
Tho notes to the general-purpose finanaa1 statements are an mtegral part of this statement
-4 -

GENERAL FUND

SPECIAi. REVENUE
FUND

$ 8,382,221 88 $ 63,261 85
7,851,487 35 262 206 81
$ 16 539 1n 89 $

669,750 72 2,692,977 23
87 060 54
3 449 788 49

$ 10,438,274 66 $
616,787 29 709,287 43 423,455 86 458,069 34 1,047,789 76 159 931 47 1,368,555 62 978,842 54 121,470 99
9,000 00 3,507 71 32,008 67

1,983,802-48
70,312 35 83,003 59
72,011 63 5,843 63
82,903 37 99967
88,592 84 1,119,80413
605 49

228 856 05 95,818 80

$ 16 69165619 $

$

-152 478 30 $

3 507 879 18 -58 090 69

$

197,062 00

$

-99 387 92

$

97 694 OB $

s

-54,784 22 $

2 584,724 57

67,804 92 67 804 92
9 514 23 300,503 33

2 737 84 2 220 24

$ 2,529,940 35 $

314 975 64

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

!Memorandum Q!!!y}

YEAR ENDED

JUNE 30. 2002

JUNE 301 2001

s

176,500 00

s s 9,208,472 60

9,515,597 05

s 486,004 62

1,521,250 00

2 756 239 08 9,858,741 97

2,409,776 39 8 736,404 98

120 795 73

211 08

470 274 16

1002634 26

s

s s s 783 300 35

1 521 461 08

22.293.n1 81

2166441268

s s 12 422 077 14

12,022 994 66

s

112 778 69

s

767,615 37

2268

687,099 64 792,291 02 423 455 86 530,080 97 1,053,633 39 272,710 16 1,368 555 62 1,06174591 122,493 34
97,592 64 1,123,31184
32,614 16 767,615 37

732,582 22 764 874 43 410 386 33 615,457 19 1,130,400 15 161,926 66 1,203,195 17 834,381 33 123,958 23
50,447 47 1,124,220 08
36,367 41 3,699,602 11

135000000 171 50000 55000

1 578,656 05 267 316 60 550 00

1,300,047 40 326,699 53 570 00

s

s s s 880 394 06

11522107268

2216021002 11

2415381110 37

s

s -97 093 71

s -61160

s -306 274 30

-2 673 697 69

s

s

5,405 60

7 259 664 62

31,76300 -8 169 67
s s 7,288,663 75

s 8 401 61
240,3351B 8,169 67
s 256 90646

6,401 61 5 405 60
7,500,000 00 197,062 00
s 107,537 59
-107 537 59
s 771086921

72 986 62 -72 986 62
0 00

s s 7,191 570 04

s s 256 294 66

7,402 594 91

-2,B73,697 69

50 486 21

2,544,203 05

5,479,917 16

8,347,967 36

2,737 84 2 220 24

6 960 52 -1 303 03

s s s s 712421056 25

2 BOO 497 91

12 887 470 15

5 479 917 16

. 5.

GREENE COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENPIIURES ANP CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - <NON-GAAP BASIS) GENERAL ANO SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds
Taxes
Other- Funds
Total Revenues

$ 8,752,016 00 s 8 362 221 88

11500000

83,261 65

7,480,221 87

7,851 487 35

525 500 00

262 206 81

s 16 872 737 87 s 16 539 177 89

~PJ;NDIIl!BES
Current
lnstrucbon
Support S.rw:es Pupil SeMcea Improvement of lnstrucbonal Sel'VIC85 Educabonal Med.la SeMces Generel Adm1rustrat1on
School Admll'\lstrauon
BuS1neas Adminlitrauon Mamtenanca and Operabon of Plant Student Tran11portation Services
Central Support Serv,ces
other Support Servtces Food SeMces Operabon Community SeMCeS Operatlom Ceprtal Outlay Debt Service
Total Expenditures
Excess of ReV8TlU81 over (under) Expend:lturas

$ 10 775 148 97 s 10,438 274 66

629 366 67 755,312 08 455,020 16 583 832 85 1 160 014 54 217 095 73 1348,14006 1,013 872 87 139 502 02
9 000 00
27 008 54 6011140

616 787 29 709,287 43 423,455 86 458 069 34 t 047 789 76 159 931 47 1 368 555 62 978,842 54 121,470 90
9 000 00 3 507 71 32 008 67
324 674 85

s 17 173 425 89 s 16 691 656 19 s -300 688 02 s -152 478 30

OTHER El~NCIN~ SOURCES !USESl Qthe,- Sources
Other Uaes
Total Other Fnandng Sources (Uses)

s

56 500 00 $

-128 888 99

s -72 388 99 s

197 062 00 .99 367 92
97 694 08

Excess of Revenues and Other Fanencmg Sources over (under) Expendrtures and Other Financing Uses $ -373 075 01 $

-54 764 22

FUND BALANCE JULY 1 2001
AdJustments Fcxx:1 Inventory - Net Changa mPenod
Donated Comrnodrttes
Purchased FOOd

2 387 350 56 8 41

2 584 724 57

E!.1Nl2 BALAN~E JlltiE ~Q 2Q02

$ 2 014 283 96 s 2 529 940 35

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 681,391 08 s 669,750 72

2 828 410 51

2 692 977 23

79 273 45

67 060 S<

s 3 589 075 04 s 3 449 788 49

$ 1 979,689 04 s 1 983 802 48

11645928 136 681 87
10 299 27 42 321 95 70 225 18

70 312 35 83 003 59
7201163 5,843 63

8 703 72 62 515 91
1 093 00 99 810 55 1,120,12243
1 196 64

82 903 37 999 67
88 592 84 1,119 804 13
60549

s 3 650 018 84 $ 3 507 879 18
$ 60 943 80 $ -58 090 69

s $ 77 562 84

67 604 92

s 77 562 64 s 67 604 92

s $ 16 619 04

9 514 23

325 226 57

300 503 33

-21 207 39

2,737 84 2 220 24

$ 320 638 22 s 314 975 64

The notes to the general-purpose finanaal statements are an integral part of this statement
. 6-

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Greene County Board ofEducation (School D1stnct) was established under the laws ofthe State of Georgia and operates under the gmdance 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 JSsue 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 Distnct uses funds and an account group to report on its financial position and the results of1ts operattons Fund accountmg 1s designed to demonstrate legal compliance and to aid financial management by segregating 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 accountability for certam assets and hab1htics that are not recorded m the funds because they do not directly affect expendable available financial resources
General Fr"ed Assets are recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mamtained by the School D1stnct. To conform to generally accepted accounting pnnc1ples, a General Fixed Assets Account Group should be maintamed for reportmg the cost of assets acquired by governmental fund types
Although "school activity accounts" are maintained at the ind1v1dual schools, neither the assets, habihtles and fund eqwty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accounttng 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 pnnc1pies applicable to governmental umts, unless otherwise chsciosed m these notes Funds and the account group presented m this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational activities Governmental Fund Types mciude
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 transactions relate to resources obtamed and used for services provided by a board of education

-7-

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital projects) that are legally rcstncted to expend!tures for specified purposes. These funds are received pnmanly from the Georgia Department of Educahon and from the Federal government to accomplish specific educahonal obJechves
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1S1!ion or construchon of maJor capital fac1lihes.
DEBT SERVICE FUND-the fund used to account for the accumulat10n ofresources for, and the payment of, general long-term pnnc1pal, mterest and paymg agent fees
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for general obligahon debt outstandmg and capital lease obligations
BASIS OF ACCOUNTING
The accountmg and financial reportmg treatment applied to a fund 1s determmed by its measurement focus. All governmental funds are accounted for usmg a current financial resources measurement focus. With tlus measurement focus, only current assets and current hab1h!ies generally are mcluded on the balance sheet. Operatmg statements ofthese funds present mcreases (1 e, revenues and other financmg sources) and decreases (1 e, expenditures and other financmg uses) m net current assets The1r reported fund balance 1s considered a measure of available spendable resources
Lrnb11ihes which are expected to be financed from available spendable resources are reported as liab11it1es m the governmental funds Other liab11ihes, which are not expected to be financed from available spendable resources, are reported m the General Long-Term Debt Account Group
Governmental funds are accounted for usmg the modified accrual basis of accountmg under which
Revenues are recognized when suscep!ible to accrual (1 e , when they become both measurable and available) "Measurable" means the amount of the transachon can be determmed and "available" means collectible w1thm the current penod or soon enough thereafter to be used to pay liab11itles of the current penod The School Distnct considers receivables collected w1thm sixty days after yearend to be ava!lable Property taxes, sales taxes and mtercst are considered to be suscepllble to accrual Nonexchange transachons, m which the School D1stnct gives (or receives) value without directly rece1vmg (or g:ivmg) equal value m exchange, mclude property taxes, local opt10n sales taxes, mtergovernrnental grants and donations Revenue for property taxes 1s recognized m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recognized m the fiscal year the resources are received or suscep!ible to accrual Revenue from grants and donations 1s recognized m the fiscal year m which all eligibility reqmrements have been sallsfied

- 8-

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recogruzed when the related fund hab1hty 1s mcurrcd
A departure from the above defimttons ts the accountmg treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources ava1lable from the Georgia Department of Education for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and nmety day penod begmnmg m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensation be paid m twelve equal monthly payments begmmng 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 compensation paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the s1m1lar expenditures and related revenues for contractual serv1ces completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002 Generally accepted accountmg pnnc1ples require 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 Greene County Board of Education's budget ts a complete financial plan for the School D1stnct's fiscal year and ts based upon estimates of expenditures together with probable fundmg sources There 1s no statutory prohibition regardmg overexpend1ture of the 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 basts other than generally accepted accountmg pnnc1ples
The budget process begms when the School D1stnct's adm1mstratton 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 c1rculatton m the locahty. At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentative budget, makes rev1s1ons as necessary and adopts a fmal school budget Tots final budget 1s then submitted, m accordance with prov1s1ons of the Quality Baste Education Act, OCGA Section 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.

- 9-

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITTON OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand, demand deposits and short-term investments with onginal matunues of three months or less from the date of acqms1uon m authonzed financial inshtut10ns Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds in one or more solvent banks or msured Federal savmgs and Joan assoc1ahons
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg mterest-earmng contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Part1c1paung interest-earmng contracts and money market mvestments with a matunty at purchase of one year or Jess are reported at amortized cost Both part1c1patmg mterest-earnmg 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 authonzes the School D1stnct to mvest its funds and m selecting among options for mvestrnent or among 1nstltut1onal bids for deposits, the highest rate ofreturn shal) be the obJecuve, given eqmvalent cond1t10ns of safety and hqu1d1ty Funds may be invested in the fo11owmg.
(I) Obhgat10ns issued by the State of Georgia or by other states,
(2) Obhgauons issued by the Umted States government,
(3) Obhgauons fu11y insured or guaranteed by the Umted States government or a Umted States government agency,
(4) Obligations of any corporation of the Umted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adrn1rustcred by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgahons of other pohucal subd1v1s1ons of the State of Georgia

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mformahon available Receivables are recorded when either the asset or revenue recogrutlon cntcna has been met Receivables recorded on the general-purpose financial statements do not mcludc any amounts which would necessitate the need for an allowance for uncollecl!ble receivables

PROPERTY TAXES

The Greene County Board of Comm1ss1oners fixed the property tax levy for the 200 I tax digest year (calendar year) on September 4, 2001 (levy date). Taxes were due on November 20, 2001 (hen date) Taxes collected w1thm the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue m fiscal year 2002 The Greene County Tax Comm1ss10ner bills and collects the property taxes for the School D1stnct, withholds I% of taxes collected as a fee for tax collectton 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 operahons amounted to $7,768,885.72

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

School Operations

.lLQQmills

SALES TAXES

Special Purpose Local Option Sales Tax revenue dunng the year amounted to $2,007,254 62 and 1s to be used for capital outlay for educal!onal 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 Inventones of donated food commod1hes used m the preparalion of meals are reported on the Combmed Balance Sheet at their Federally assigned value Purchased foods mventones are reported on the Combmed Balance Sheet at cost (first-m, first-out) Donated food commod1t1es are recorded as revenues and expenditures at the tune commochty items are received Purchased foods mventones arc recorded as expenditures at the time ofpurchase. The mventones reported on the balance sheet for donated food commod11ies and for purchased foods are equally offset by reservat10ns of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

-II -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
PREPAID ITEMS
Payments made to vendors for services that will benefit pcnods subsequent to June 30, 2002, are recorded as prepaid items
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgahon bonds to provide funds for the acqms11Ion and constructlon ofmaJor capital fac1hlles Bond premmms and discounts, as well as issuance costs, are recogmzed m the financial statements dunng the year bonds arc issued General obhgat1on bonds are direct obhgations 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 transactlons
Reimbursements of expenditures 1mt1ally made from a fund that are properly applicable 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 transactions other than reimbursements
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose fmancial statements are captioned "Memorandum Only" to md1cate that they are presented only to fac1htate financial analysis Data m these columns do not present financial position or results ofoperations m conformity with generally accepted accountmg pnnc1ples. Neither are such data comparable to a consohdat1on Interfund ehmmat10ns 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, orby collateral The aggregate ofthe face value of such surety bond and the market value of secunues pledged shall be equal to not less than 110 percent ofthe pubhe funds bcmg secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value ofthe

- 12 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
secunties pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe da!ly pool balance. OCGA Section 45-8-11 (b) provides an officer holding pubhc funds may, in his discretion, waive the requirement for secunty in the case ofoperating 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 quahfied and authonzed 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 dtrect obhgations of the Umted States or of the State of Georgia,
(4) Bonds, b11ls, notes, certificates of indebtedness or other obhgat1ons of the counties or mumc1paht1es of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws ofthe State of Georgia, providing that the statute that created the authonty authonzed the use of the bonds for th.is purpose,
(6) lndustnal revenue bonds and bonds of development authontles created by the laws of the State of Georgia, and
(7) Bonds, b11ls, notes, certificates of indebtedness, or other obhgatlons of a subs1d1ary corporation of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and interest or debt obhgat10ns issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal lntenned1ate 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, 2002, the bank balances were $8,857,471 48. The amounts ofthe total bank balances are classified into three categones of credit nsk
Category I - Cash that 1s insured (e g, Federal depository insurance) or collateral1zed with secunttes held by the School D1stnct or by the School D1stnct's agent in the School D1stnct's name
Category 2 - Cash collaterahzed with secunhes held by the pledging financial mslltut1on's trust department or agent in the School D1stnct's name
Category 3 - Uncollaterahzed deposits. (This includes any bank balance that 1s collateral1zed with secuntles held by the pledging financial institution, or by tis trust department or agent but not in the School D1stnct's name.)
- 13 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows

R.tsk Category

Bank Balance

1

$ I 13,281 18

2

8,744,190 30

3

000

Total

S 8,857,471,48

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrymg value of the School D1stnct's total mvestments was $4,050,338.68 which 1s matenally the same as fair value This mvestment consisted entirely of funds mvested m the Local Government Investment Pool adm1mstered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqmred to be categonzed smce the School Distnct did not own any specific identifiable secuntles m the pool The mvestment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1chty Portfolio) does not provide for mvestment m denvatlves or s1m1lar mvestments A descnpt1on ofthe Pnmary L1qmd1ty Portfolio 1s as follows

The Pnmary L1qmd1ty Portfolio consists of Georgia Fund I, which 1s a combmat1on local and state government mvestment pool, and Fund 6 Georgia Fund l 1s a stable net asset value mvestment pool which follows Standard and Poor's cntena for AAAm rated money market funds The pool is not registered with the SEC as an mvestment company but does operate Georgia Fund 1 m a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 hke pool The pool's pnmary objectives are safety of capital, mvestment mcome, liqmd1ty and d1vers1ficat1on while mamtanung pnnc1pal ($1 00 per share value) Net asset value 1s calculated weekly to ensure stability The pool d1stnbutes eammgs (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 mvestments are reported at cost which approximates fair value The pool does not issue any legally bmdmg guarantees to support the value of the shares Part1c1pahon m the pool 1s voluntary and deposits consist of funds from local governments, operatmg and trust funds of Georgia's state agencies, colleges and un1vers1t1es, and current operatmg funds of the State of Georgia's General Fund

Investments m Georgia Fund 1 and Fund 6 are directed toward short-term mstruments such as U S Treasury obhgahons, 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 1 may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was O 12 years The average investment durahon for Fund 6 on June 30, 2002, was O75 years.

- 14 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3. NON-MONETARY TRANSACTIONS

The School District receives food comrnod!t1es from the United States Department of Agnculture (USDA) for school breakfast and lunch programs. These comrnod1t1es are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The School D1stnct 1s exposed to vanous nsks of loss related to torts; theft of, damage to, and destruction of assets, errors or onuss1ons, Job related illness or inJunes to employees, acts of God and unemployment compensalion.

The School D1stnct has obtamed comrnerc1al insurance for nsk ofloss associated with torts, assets, errors or om1ss1ons,3ob related illness or mJunes to employees and acts ofGod The School D1stnct has neither s1gn1ficantly reduced coverage for these nsks nor incurred losses (settlements) which exceeded the School D1stnct's msurance coverage in any of the past three years

The School D1stnct 1s self-insured with regard to unemployment compensation clarms The School D1stnct accounts for chums w1thm the same fund that the employee's salary and benefits were paid Clauns are accounted for with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated

Changes m the unemployment compensation claims hab1hty dunng the last two fiscal years are as follows.

2001 2002

Bcgmmng of Year Liab1hty

Claims and Changes m Estimates

$

0 00 $

2 517 00 $

$

0 00 $

0 OQ $

Claims Paid

End of Year Liab1hty

2 517 00 $

0 00

0 00 s

000

The School D1stnct has purchased surety bonds to provide add1t1onal msurance coverage as follows

Position Covered

Amount

Supenntendent All Other Employees

$ 100,000 00 $ 100,000 00

Note 5 GENERAL LONG-TERM DEBT

CAPITAL LEASES The Greene County Board of Education has entered mto vanous lease agreements as lessee for buses and other equipment. These lease agreements quahfy as capital leases for aecountmg purposes and, therefore, have been recorded at the present value of the future mm1mum lease payments as of the date of their mcept1on.

- 15 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obhgat1on Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Senes I998 General Government - Series 2002

3.75%-4 15% 2.50%-3 60%

$ 3,500,000 00 7,500,000 00

$ II,000.000,00

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

Capital Leases

General Obhgauon
Bonds

Total

Balance July I, 2001

$1,537,317 80 $ 4,850,000 00 $ 6,387,317 80

Additions Capital Leases GO Bonds

197,062.00

197,062 00

7,500,000 00 7,500,000 00

Deductions Debt Retired
Balance June 30, 2002

228.856 05 1,350,000 00 1,578,856 05
z~ $ 1~o~ ~~J $ I 1,QQQ.QQQ,Q0 $16.~Q~.~,J.1~

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

- 16 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

General Obhgallon
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013
Total Pnnc1pal and Interest

$ 319,270 22 $ 1,865,798 33 $ 2, I 85,068 55

264,258 54 3,659,160 00 3,923,418 54

198,090 42 1,638,035 00 1,836,125 42

198,090 42 1,652,715 00 1,850,805 42

154,740 00 1,666,370 00 1,821,11000

773,700 00 1,683,500 00 2,457,200 00

77 370 00

77.370 00

$1,985,519 60 $12.165.578,33 $)4.)51.097,93

Deduct. Imputed Interest

479,995 85

Net Present Value of Future
M1rumum Lease Payments $ 1.505.523 75

Note 6 ON-BEHALF PAYMENTS

The School D1stnct has recogruzed revenues and expenditures m the amount of$236,281 72 for health msurance and relirement contnbuhons paid on the School D1stnct's behalf by the followmg State Agencies.

Georgia Department ofEducat10n Paid to the Georgia Department of Commuruty Health For Health Insurance of Non-Certified Personnel In the amount of $182,174 28

Paid to the Teachers Relirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $32,758 44

Office of Treasury and Fiscal Services Paid to the Public School Employees Relirement System For Public School Employees Relirement (PSERS) Employer's Cost In the amount of $21,349 00

- 17 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 7. SIGNIFICANT COMMITMENTS

The followmg 1s an analysis ofs1gmficant outstandmg construction or renovat10n contracts executed by the School D1stnct as of June 30, 2002

Pro1ect

Unearned Executed Contracts

SPLOST Renoval!on of Greensboro Elementary School
SPLOST Renoval!on of High School Technology Lab
SPLOST Renovation of High School Softball Field

$1,988,675 00 84,400 00 538,050 00
$ 2.61 ),125.00

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

Note 8 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are subJect to audit and review by grantor agencies This could result m requests for rermbursement to the grantor agency for any expend!tures which are disallowed under grant terms The School D1stnct beheves that such d1sallowances, 1f any, will be 1mmatenal to Its overall financial pos1t1on

Note 9 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, adrmmstral!ve and clencal personnel employed by local school d1stncts are covered by the Teachers Rel!rement System of Georgia (TRS), which 1s a cost-shanng multiple employer defined benefit pension plan TRS provides service rel!rement, d1sab1hty rel!rement and survivors benefits for its members m accordance with State statute The Teachers Rel!rement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamcd 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 contnbul!ons to TRS at rates adopted by the TRS Board of Trustees m accordance with State statute and as advised by the1r independent actuary The reqmred employer contnbul!on rate 1s 9 24% and employer contnbuhons for the current fiscal year and the precedmg two fiscal years are as follows

- 18 -

GREENE COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9 RETIREMENT PLANS
Fiscal Year
2002 2001 2000

Percentage Contnbutcd
100% 100% 100%

Required Contnbut1on
$ 1,020,536 9 I $1,185,783 63 $1,111,656 39

- 19 -

GREENE COUNlY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commod1bes Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

201,754 90 $

29,981 72

125,416 42

9,097 42

45,984 98

23,939 24 8 718 33

Total Assets

$

368,926 31 $===7:,;;5;,;9~66=7~0=

LIABILiTIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total L1ab1lrtJes
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

3,781 14 $

16,12854

50,169 53

59,838 16

$

53 950 67 $

75 966 70

$

23,939 24

8,718 33

282 318 07 $

000

$

314 975 64 s

000

Total L1ab1hbes and Fund Equity See notes to the genera~purpose financial statements
- 20 -

$

3681926 31 $ ~-.:.7~5:::;96::;6~7;,,;;0~

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

231,736 62 $

231,715 02

125,416 42

122,361 02

$

265,470 85

320,553 25

320,329 29

23,939 24 8 718 33

21,201 40 6 498 09

$

265 470 85 $

110 363 86 $~....1_0_2..,1_04_8_2_

$

126,261 77 $

126,261 77 $

139,991 62

27,263 64

47,17332

54,804 87

110,344 70

220,352 39

183,669 77

250 87

25087

23,13523

1 349 87

134987

$

265,470 85 $

395,388 22 $

401 601 49

$

$ _ _ _ _~0~0~0-

$

0 00 $

23,939 24 $ 8,718 33

21,201 40 6,498 09

282 318 07

272,803 84

314 975 64 $ -~3~00==50=3=-.3:c,3'--

$

265 470 85 $

710 363 86 $ =--7,..0.2.,.'=1"'04'=8a;,;2.,,

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstruc!Jon Support SeMces Pupil SeMces Improvement of Instructional SeMces Educational Media Services General Adm1mstrat1on School Adm1mstrallon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food SeMces Operabon Community Services Operations
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change m Penod Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements
- 22 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

86.642 24 $

955.615 58

87 060 54

$ 1,129,318 36 $

583,108 48 583,108 48

$

535,647 86

41,028 95 551 02

13,299 94

$ 1,119,80413

$ 111980413 $

$

9,514 23 $

590 527 77 -7,41929

$

9,514 23 $

300,503 33

2,737 B4 2 220 24

7 419 29
000 000

$ 314 975 64 s ~-~=o_o_o_

EXHIBIT "P'

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

669,750 72 $

605,331 53

$ 1,737,361 65

2,692,977 23

2,407,768 10

87 060 54

93 452 10

$ 1,737,361 65 $ 3,449,788 49 $ 3,106,551 73

$ 1,448,154 62 $ 1,983,802 48 $ 1,647,090 76

29,283 40 82,452 57
72,011 63 5,843 63
69,603 43 99967
88,592 84
60549

70,312 35 83,003 59
72,011 63 5,843 63
82,903 37 99967
88,592 84 1,119,80413
60549

81,561 41 77,171 95
214 79 65,457 10 57,064 57 10,097 49 61,632 94
2,490 24 41,447 47 1,124,220 08
1 111 41

$ 1797547 28 $ 3,507,879 18 $ 3.169,560 21

$

-60,185 63 $

-58,090 69 $

-63,008 48

60 185 63

67 604 92

72,986 62

$

000 $

9,514 23 $

9,97814

0 00

300,503 33

284,877 70

2,737 84 2 220 24

6,950 52 -1 303 03

$

000 $

314 975 64 $====300==='5=03==33.,,

- 23 -

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

EXHIBIT "G"

Cash and Cash Equlvalents Investments Accounts RecelVSble
Total Assets
blABILITIE~ A!!jD FUN!;l EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retalnages Payable
Total Uab1lrues
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undeslgneted Total Fund Equity
Total llablfibes and Fund Equity

BONO PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS JUNE 30, 2002 JUNE 30, 2001

$ 6,757,591 51 $

0 00 $ 6,757,591 51 $ 123,113 61

190 574 41

190,574 41

608,357 52

393 875 13

393 875 13

354 984 19

$ 1,342.041 05 $

000 $ 71342,041 05 $ 1,086,455 32

$ 99,984 BO $ 99 984 80

$ 356.295 07

$

99,984 BO

299,951 93

379 72211

$

99 984 BO $ 1,035,969 11

$ 7,242,056 25 0 00 $
$ 7,242,056 25 s
$ 1,342,041 05 $

$ 7,242,056 25 $

000

000

000 $ 7,242,056 25 $

33,336 32 17,149 89
0 00
50 486 21

000 $ 1,3421041 05 $ 1,086,455 32

See notes to the general-purpose financial statements

- 24 -

GREENE COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDrTURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2002

EXHIBIT "H"

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

REVENUES
State Funds Taxes Other FLrlds
Total Revenues

$

176,500 00 $

176,500 00 $

298,651 00

$

486,004 62

486 004 62

1,169,75566

120 795 73

120 795 73

169 436 65

$

606,600 35 $

176 500 00 $

783 300 35 $ 1 657 645 51

EXPENDITURES
Current SupportSeMcel Business Administration Central Support 8eMCeS
Capital Outlay Bu,ldlng and Bulldlng lmprovemenls Equipment
Total Expendltins
Excess of R........,.s over (under) Expenartures

$

112.m 69

$

112n869

$

1,440 55

386,236 94 $ 67 520 00

313 858 43

700,095 37 67 520 00

3 461 797 52 176 517 75

$

566,535 83 $

313 858 43 s

880 394 06 $ 3,639,755 82

$

40 264 72 $

s -137 358 43

s -97 093 71

-1 981 910 31

OJt:IER FIN[INCING SOURCEl;; !USES)

Premiums on Bonds Sold Proceeds from Genaral Obhgabon Bonds
Par Value Operating Transfers In Opara11ng Transfers Out
Total Other Flnanang Sources (Uses)

$

5,405 60

7,259,664 82 $
-96 615 21
s s 7 168 455.21

Excess of Revenues and Other Financing Sources

over (LY'lder) Expendlll.nls and Other F,nandng Uses

s 7 208 719 93 $

FUND BALANCE JULY 1

33 336 32

$ 120,208 54
s 120 208 54

5,405 60
7,259,664 82
s 120,208 54
-96 615 21
s 7,288,663 75

532,347 23 -532 347 23
0 00

s -17,149 89
17 149 89

s 7,191,57004

-1 981,910 31

50 486 21

2.032.396 52

FUND BALANCE JL!NJa 30

s 712421056 25 $

s 000

7 242 056 25 $

50 486 21

see notes to the general-pu'pose fklancial statements

- 25-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnwtture, U S Department of Child Nutrttlon Cluster Pass-Through From Geo,gia Department of Education Food and Nutribon Program Food SeMCeS School Breakfast Program National School Lunch Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

$ 246 128 05

(2)

NIA

s 619 272 55

1 053 871 93 (3)

Total Child Nutrition Cluster

$ 86540060 $

1 053 871 93

Other Programs

Pass-Through From Gaorgla Department of Education

Food and Nutr1Uon Program

Food Dlstnbutlon Program (1 )

Pass-Through From Offlc:e of School Reachness

Food and NutnUOn Program

care Child and Adult

Food Program

Pass-Through From Office of Treasury and Fiscal ServlC8s

Nlabonal Forest Raserve Funds

Total U S Department of AgriaJ!tlre

10 550
10 558 10685

NIA

65,932 20

65,932 20

NIA

24,282 78

(2)

NIA

83,261 85



$ 1 0188TT43 $

1119 80413

Education, U S Department of Special Education Cluster Pass-TIYough From Georgia Department of Educabon Individuals wtth DlsabUitl&s Educabon Ad Part B - Special Education Gapaaty Building Improvement Flow Through Preschool

84027 84 027 84173

NIA

s 40,902 00 $

NIA

294,868 86

NIA

9 28715

40,902 00 294 868 86
9 287 15

Total Special Education Cluster

$ 345 058 01 $

345 058 01

Other Programs

Direct

21st cantu:y Community Leaming Centers

After School Leaming Centers

Mer Sdlool Program

84 287

Pass-TIYough From Gaorgla Department of Education

Elementary and Secondary Education Act

rrtlel

Grants to Local Educational Agenoes

84010

NIA

TIUe II

Eisenhower Profass,onal oe..topmant

84 281

NIA

TIiie VI

lmovative EducaUon Program Strategies

84 298

NIA

Class Size Reductlon

84 340

NIA

Safe and Drug-Free Schools and Communities

84186

NIA

Vocational EducaUon - Basic Grants to States

High School Program

Baslc Grant

84048

NIA

358 738 27
748,569 02 20 288 33 21,993 00
120,104 00 25,1TT 52
75 608 00

358,738 27
746,819 89 (3) 20.288 33 21,993 00
120 104 00 25 177 52
75 608 00

Total u S Department of Educabon

$ 1 715 538 15 $

1 71578702

- 28 -

GREENE COUNTY BOARD OF EDUCATIDN
SCHEDULE OF EXPENDIT\JRES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002

SCHEDULE "1

FUNDING AGENCY
PRQGRAM'GRANJ:
Defense, U S Department of Dlrad Department of the A,r Force R O T C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL
REVENUE IN PERIOD

EXPENDITURES IN PERIOD

s 21 825 50 S

81 760 26 (3)

Total Federal Fuianclal Assistance

S 2 756,239 08 S

NIA = Nol Available

Notes to the Sd-eclute of Erfldltures of Federal Awards

(1) The amounts shown for the Food DlstnbutJon Program represents the Federally assigned value of normonetary asststance for donated commodltles received and/or consumed by the system during the current fiscal year
(2) Expenditures for the Child and Adult care Food Program and the School Breakfast Program were not malntalned separately and are Included In the 2002 Nabonal School LL<lch Program
(3) Expend:llns for ltls program llldude State, and/or Other Funds Expendlbea an, not malnta:ned by fund source
(4) Funds earned on this program do not require reporting of expenditures

Major Programs era Identified by an asterisk (1 In front of the CFDA mrnbel'

The School Dtlllrict did not provide Federal Assistance to any Subreaptent

The accompanying schedule of axpend:tures of Federal awards Includes the Federal grant actJvrty of the Greene County Board of Educabon and Is preaented on the modlfled acaual basis of acoountlng wtudl Is the ba&Ls of accounllng used In the presentation of the general purpose finaooal statements

2 917 351 41

See notes to the general-purpose ftnanclat IIBtements

- 27 -

GREENE COUt{TY BOARD OF EDUCATION
SCHEDULE OF STATE RE\/ENUE
YEAR ENDED JUNE 3Q 2002

SCHEDULE"2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs Georgia Department of
Governor Emergency Funds
Local Assistance Grant

$

3,000 00

s

3,000 00

Educalloo Georgia Department of Ouatlty Basic Educabon Direct lnabuctlonal Cost Kindergarten Program Kindergarten Program - Earty lntervenbon Program Prlmary Grades (1-3) Program Prlmary Grades - Early Intervention (1-3) Program Upper Elemen1ary Grades (4-5) Program Upper Elemen1ary Grades (4-5) Early lntervon11on Program Middle School (6-8) Program High School General Educatlon (!l-12) Program Vocational Leboratory (!l-12) Program Students wrth 0Jsab1~bes Category I Gifted Student - Category VI Remedial Education Program Altemabve Education Program Enghsh Speakers of Other Lenguagos (ESOL) 20 Days Add1110nal lnstruclion
Media Center Program
Staff and Professklnal Development lnchrect Cost Faahty Mamtenance and Operations School Admlnlstratlon Categorical Grants Pupil Transportation
Regular Bus Replacement Sparsity Nursing Services Principal Supplements VocabonaJ Supervisors Mid-term Adjustments Hold-Harmless Food SeMces Other State Programs Apprenticeship Program Heatth Insurance Outdoor Cla&Sroom State Grant Preschool Handappecl Program Teachers' ReUrement Statewide K-3 Reading Program Statewkte 4-8 After SChool Program Technology/Career High Schools Thal Work Lottery Programs A&s1&bve Technok>gy Computers In the Classroom

570,043 00 20,809 00 1,026,625 00 215,810 00 495,166 00
100,733 00 866,670 00 673,180 00 406,342 00
1,145,154 00 216,277 00 28,546 00 70,134 00 25,680 00 50,492 00 172,874 00 33,110 00 277,86800 483,387 00 373,219 00

367,224 00 113,797 00 20,000 00 58,982 00
9,263 00 18,419 00 150,408 00
$

86,642 24

50,00000 182,174 28
750 00 28,655 00 32,758 44 28,763 16 20,580 00
4,000 00

6 708 13 100 938 86

570,043 00 20,80900 1,026,825 00 215,810 00 495,166 00
100,733 00 866,670 00 673,180 00 406,342 00
1,145,154 00 216,277 00 28,546 00 70,134 00 25 680 00 50.492 00 172,874 00 33,110 00 277,868 00 483,387 00 373,219 00
367.224 00 113,797 00 20,000 00
58,962 00 9,263 00
18,419 00 150,408 00 86,642 24
50,000 00 182,174 28
750 00 28,655 00 32,758 44 28,76316 20,580 00
4,000 00
6,708 13 100,938 86

Georgia State Fmancmg and Investment CommlHD'l Reimbursement on Construction Pf'Of8d9

$ 176,500 00

176,500 00

Office of School Readiness Pr&-Klndergarten Program

475,461 49

475,461 49

- 28

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Office of Treasury end Fiscal SeMces Public School Employees Rebremenl

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 21 349 00

$ 21 349 00

$ B362,221 88 $ 669,750 72 $ 176,500 00 $ 9,208.472 60

See notes to the general-purpose finallClal statements

-29-

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

SCHEDULE "3"

PROJECT
The acqulslbon, C006trucUon and equipping of a new Rllddle school and the renovating, refurbishing, mochfy1ng end equipping of existing facillbes Including the construcbon of addlttonal classrooms and providing for tedlnology
The renovation, Improvement and equipping of exlstl:ng &chool bu~d1ngs and other facllrtles, the acquisition, constructton end equipping of add1bonal admimstrabve, support and physical educabon facllitles et exist.mg schools and the acquisition of all property necessary or desirable therefor, both real and personal

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

S 8,563,600 00 S 13,212,200 77 S 563,583 63 $ 12,595, 1S6 49 OngCHng

10,000,000 00 10,000 000 00

488 860 43

Ongoing

S 18,563 600 00 S 23 212 200 77 $ 1 052,444 06 $ 12,595, 1S6 49

(1) The School District's ong1nal cost estimate es speafted In the resolution caning for the 1mposibon of the Local Option
Sales Tax
(2) The School Dlstncfs current estimate of total cost for the pJ'Qlects Includes au cost from Protect 1nceptlon to completion
(3) The votel"8 of Greene County approved the lmposrtion of a 1% sales tax to fund the above pro,lects and retire assooated debt Amounts expended for these pl'qects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects

See notes to the general-purpose finane&al statements

- 31 -

---------------- - -
GREENE COUNTY BOARD Of EDUCATION
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE\
ALLOTMENTS AND EXPENDfTURES - BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Dk'ed lnstrucllonal Programs Kmclergarten Program Kindergarten Program-Earty Intervention Program Prlma,y Grades (1-3) Program Prlma,y Grades-Early lnt"""'"11on (1-3) Program Upper Bemantary Grades (4--5) Program Upper Elemanta,y Grades-Early lnte,ventlon (4-5) Program Mlddlo School (6-8) Program High School Ganoral Education (9-12) Program Vocational Laboratory (9-12) Program Students with Dlsabllltlea Cstego,y I category II Category Ill category IV CategoryV Gifted Student - Cstegory VI Remedial Education Program Ahematlve Education Program Enghsh Speake1'3 of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Profeu!onal Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

755,911 00 $ 781,715 65 $

35 160 34 $

818,875 99

27,594 00

29,510 64

2,560 49

32,071 13

1,361,365 00 1,276,202 87

87 210 99

1,363,413 66

286,177 00

284,421 43

5 512 56

289,933 99

656,620 00

707,802 78

80,912 16

788,714 94

133,579 00 1,149,258 00
892,877 00 536,833 00 1,518,541 00
286,796 00 37,854 00 93,002 00 34,052 00

128,233 60 1,290,205 34 1 145,490 86
583,466 87
206,156 55 565,689 37 788 322 73 45,235 64 172,080 03 285 323 32 110,486 53 137,483 35
64 748 17

6,892 71 105 858 65 94 364 78 83,941 63
6,425 42 9,723 31 168 347 39 1,31092 6 611 44 6,341 66 1,281 89
2,613 26

135,126 31 1,395,861 99 1,239,855 64
667,408 30
212,581 97 575,412 68 956,670 12 46,548 56 178,671 47 291,664 98 111,748 42 137,463 35
67,381 43

$

7,772 257 00 $ 8,602,535 33 $ 704 847 60 $ 9,307,382 93

229,241 00 43,907 00

278,154 08 19 4~ 49

136 480 43 24,412 51

414,634 51 43 907 00

TOTAL QBE FORMULA FUNDS

s

8,045,405 00 $ 6 900 183 90 $ 865,740 54 $ 9,765 924 44

(1) Comprised of State Funcla plus Local Five M,11 Share

See notes lo the general-purpose financial statements

- 32 -

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

SCHEDULE "5"

SITE Anrta Whrte Carson Middle School Union Point Elementary School Greensboro Elementary School Greene-Taliaferro High School Open Gate School (Greene County Altemabve School) Central Office (Altemat1ve Educabon Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,543,572 00 $

2,044,381 24

1,410,241 00

1,508,001 10

2,652,178 00

2,963,023 48

2,073,264 00

2,692,202 52

99,774 59

93,002 00

$

7 772 257 00 $ ==9,;;,30~7:.,38=2.;;,93=

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

SECTION II COMPLIANCE AND INTERNAL CON1ROL REPORTS

tJ<;.~EI.L W. HIN roN
STAil AUDITOR {404) fi~217-4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmgton Street, SW ',u,te 214 At!Jnta, Georgia 30334-ll400
Apnl 25, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducal!on
and Supenntendent and Members of the Greene County Board ofEducalion
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 ofGreene County Board ofEducat10n as of and for the year ended June 30, 2002, and have issued our report thereon dated Apnl 25, 2003 This report was quahfied for vanous departures from generally accepted accounting pnnc1ples, as 1den1tfied 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 apphcable to financial audits contained in Government Auditing Standards. issued by the Comptroller General of the Umted States
Comphance
As part of obtaining reasonable assurance about whether Greene County Board of Educat10n's financial statements are free of matenal misstatement, we performed tests of 11s comphance with certain prov1s10ns oflaws, regula!tons, contracts and grants, noncomphance w11h which could have a direct and matenal effect on the determination of financial statement amounts However. providing an op1mon on comphance with those prov1s1ons was not an obJective of our audit, and accordingly, we do not express such an opinion The results of our tests disclosed no instances ofnoncomphance that are reqmred to be reported under Government Auditing Standards
Internal Control Over Financial Reporting
In planmng and performing our audit, we considered Greene County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our op1mon on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reportmg However, we noted a certam matter mvolvmg the mternal control over financial reportmg and its operation that we consider to be a reportable cond1t1on. Reportable cond1tions mvolve matters commg to our atten!Jon relatmg to s1gmficant defic1enc1es m the design or operation of the mtemal control over financial reportmg that, m ourJudgment, could adversely affect Greene County Board ofEduca!Ion's ability to record, process, summanze and report financial data consistent with assertions of management m the financial statements The reportable cond1!Ion 1s descnbed m the accompanymg Schedule ofFmdmgs and Quest10ned Costs as item FS-6661-02-01

A matenal weakness 1s a cond1!Ion m which the design or opera!Ion of one or more of the mtemal control components does not reduce to a relatively 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 withm a timely penod by employees m the normal course of performmg their assigned functions. Our cons1derat:1on of the mtemal control over financial reportmg would not necessanly disclose all matters m the mtemal control that rrught be reportable cond1tions and, accordmgly, would not necessanly disclose all reportable cornh!Ions that are also considered to be matenal weaknesses. However, we consider item FS-6661-02-01 to be a matenal weakness.

This report 1s mtended solely for the mforma!Ion and use ofthe management, members ofthe Greene County Board of Education, Federal awardmg agencies and pass-through entities and 1s not mtcnded to be and should not be used by anyone other than these specified parties

Respectfully submitted,

-

~~~

Hmton State Auditor

RWHas 2002YB-41

{U',SFI I W. HIN ror-.
STATE .a.LJDITOfi
(40,i)~2l74

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW Suite 214 Atlanta, Gcorg1J 30334-8400
Apnl 25, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducatmn
and Supenntendent and Members of the Greene County Board of Educatmn
REPORT ON COMPLIANCE WITH REOUlREMENTS 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 Greene County Board of Educa!Ion with the types ofcomphance reqmrements descnbed m the US Office of Management and Budget (0MB) Circular A-133 Compltance Supplement that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002 Greene County Board ofEducatmn's maJor Federal programs are 1den1Ified m the Summary of Auditor's Results Section of the accompanymg Schedule of Fmdmgs and Ques!Ioned Costs Compliance with the reqmrements of laws, regulaltons, contracts and grants apphcable to each of Its maJor Federal programs 1s the respons1b1lity of Greene County Board of Education's management Our respons1b1lity 1s to express an opm1on on Greene County Board of Educa!Ion's comphance based on our audit
We conducted our audit ofcomphancc m accordance with aud1tmg standards generally accepted m the United States of Amcnca, the standards apphcablc to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the United States, and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Orgamzatwns Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtam reasonable assurance about whether noncompliance with the types ofcomphance reqmrements referred to above that could have a direct and matenal e!Tect on a ma1or Federal program occurred An audit mcludes e'<ammmg. on a test basis, evidence about the Greene County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary m the circumstances We beheve that our audit provides a reasonable basis for our opmmn Our audit does not provide a legal determmat1on on Greene County Board ofEducation's comphance with those requirements
2002SA-10

In our opm10n, the Greene County Board ofEducahon compiled, mall matenal respects, with the reqmrements referred to above that are applicable to each of1ts maJor Federal programs for the year ended June 30, 2002
Internal Control Over Comphance
The management of Greene County Board of Education 1s responsible for establishmg and mamtammg effective mtemal control over compliance with reqmrements of laws, regulauons, contracts and grants applicable to Federal programs In planrung and performmg our audit, we considered Greene County Board ofEducation's mtemal control over compliance with rcqurrements that could have a direct and matenal effect on a maJor Federal program m order to determme our auditing procedures for the purpose of expressmg our op1mon on compliance and to test and report on mtemal control over compliance m accordance with 0MB Circular A-133
Our cons1derat10n ofthe mternal control over compliance would not necessanly disclose all matters in the mtemal control that might be matenal weaknesses A matenal weakness 1s a cond11!on m wluch the design or operallon ofone or more of the mtemal control components does not reduce to a relallvely low level of nsk that noncompliance with applicable reqmrements of laws, regulations, contracts and grants that would be matenal m relal!on to a maJor Federal program bemg audited may occur and not be detected within a hmely penod by employees m the normal course of performmg their assigned functlons. We noted no matters mvolvmg the mtemal control over comphance and its operal!on that we consider to be matenal weaknesses
This report 1s mtended solely for the mformallon and use ofthe management, members ofthe Greene County Board ofEducation, Federal awardmg agencies and pass-through entIIIes and 1s not mtended to be and should not be used by anyone other than these specified parties
- ~~ Respectfully submitted, Hmton State Auditor
RWH.as 2002SA-10

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

GREENE 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-6661-00-0 I FS-6661-01-0 I

Further Action Not Warranted Unresolved - No Corrective Action Implemented

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Mamtam General Fixed Assets Account Group Fmdmg Control Number: FS-6661-01-01

We began corrective act10n implementation m the Spnng of2002 by contracting with The Valuahon AdVJsory Group, Inc to provide us with a current assessment value and hstmg of the system's fixed assets They have provided us with this information m their report dated June 13, 2002. In order to mamtam an ongomg and current hstmg of these assets, the Board of Education has estabhshed the position of an internal auditor, MaJone Ellenberg, whose mam duty will be to oversee this function of the financial reporting entity The School D1stnct 1s expected to be m full compliance by June 30, 2003, for GASB 34 reqmrements m regards to General Fixed Assets

SECTION IV FINDINGS AND QUESTIONED COSTS

GREENE 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 Greene County Board of Education's financial statements was qualified for vanous departures from generally accepted accounting pnnc1ples
2 Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Greene County Board of Education disclosed a financial statement reportable condition related to the following control category
General Fixed Assets
The reportable condition descnbed above 1s considered to be a matenal weakness
3 Noncompliance Matenal to the Financial Statements The audit ofthe Greene County Board ofEducauon disclosed no instances ofnoncompliance that were deemed to be matenal to the financial statements
4 Reportable Cond1t10ns in Internal Control Over Ma1or Programs The audit report for the Greene County Board of Educa!Ion did not disclose any reportable cond1t10ns m internal control over maJor programs
5 Type of Report Issued on Compliance for MaJOr Programs The auditor's opm1on on the Greene County Board ofEduca!Ion's report on compliance with reqmrements applicable to maJor programs was unqualified
6 Audit Fmdmgs Requ1Ted to be Reported by Section .510/a) ofOMB C1Tcular A-133 The Greene County Board ofEducation's audit did not d!sclose audit findings rcqmred to be reported by section 510(a) ofOMB C1Tcular A-133
7 MaJOr Programs Federal awards audited as maJor programs are as follows IO 553 Food and Nutn!Ion Program - Food Services - School Breakfast Program 10 555 Food and Nutn!Ion Program - Food Services - Nat10nal School Lunch Program 84 287 21st Century Commumty Leaming Centers - After School Leaming Centers After School Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00
9 Low Risk Aud1tee The Greene County Board ofEduca!Ion qualified as a low nsk aud1tee as defined by Sect10n 530 ofOMB C1Tcular A-133
-I-

GREENE COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtain General Fixed Assets Account Group Reportable Cond1!Jon - Matenal Weakness Repeated From Pnor Year Fmdmg Control Number FS-6661-02-01 The Greene County Board of Education did not mamtam a system-wide General Fixed Assets Account Group w1thm the formal accounting records as required by generally accepted accounting pnnc1ples. This condition results m the general-purpose financial statements ofthe School D1stnct bemg mcomplete and not in accordance with generally accepted accounting pnnc1ples. Appropnate act10n should be taken by the School D1stnct to establish accoun!Jng controls and procedures to provide for mamtenance of a General Fixed Assets Account Group These subs1d1ary records should mclude an mventory of land, bmldmgs and equipment owned by the School D1stnct and should include, but may not be hm1ted to, date acqmred, acqms1tlon cost, estimated replacement cost, location and descnpt1on Detailed records should be mruntamed of all adchtlons 311d deletions to the General Fixed Asset Account Group ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
-2-