STATE OF GEORGIA

DEPARTMENT OF AUDITS AND ACCOUNTS

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JACKSON COUNTY BOARD OF EDUCATION
JEFFERSON, GEORGIA

REPORT ON AUDIT OF THE FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2000
Russell W. Hinton
State Auditor

JACKSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

Page

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

6

D NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

7

ADDIDONAL 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

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

30

L

.COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS

31

JACKSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I FINANCIAL ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
ANALYSIS OF 'lli'j.UY.lU.lY.l EXPENDITURE REQUIREMENTS GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS

4

OVERALL

5

BYPROGRAM

Page
32 34 35 37 38


SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDII'ING 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 AUDfl'EE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS
Y SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS

SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

(!~...'?. ~

: :

- .Ci

W. RussELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 2 I4 Atlanta, Georgia 30334-8400
March 30, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education

and Superintendent and Members of the Jackson County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general purpose financial statements of the Jackson County Board of Education, as of and for the year ended June 30, 2000, as listed in the table of contents. These general purpose financial statements are the responsibility of the Jackson County Board of Education's management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit.

Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perfo11n the audit to obtain reasonable assurance about whether the financial
statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing
the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30,2000, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2000ARL-13

As described in the notes to the general purpose financial statements, the Board's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general purpose financial statements ofthe Board did not contain a General Fixed
Assets Account Group to account for property and equipment owned by the Board which should be included to confortn to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general purpose financial statements.
* The Board did not recognize as expenditures, in the year ended June 30, 2000, a portion
of salaries and the corresponding employer's cost of related benefits earned for
contractual services completed prior to June 30, 2000. Also funds received, subsequent to June 30, 2000, from the Georgia Departn1ent of Education for the State's share of
these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual
services completed prior to June 30, 1999, were improperly recorded in the year ended June 30, 2000. To conforr11 to generally accepted accounting principles, revenues should
be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general purpose financial statements of these variances or omissions have not been detertnined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been deter111ined to be necessary had we been able to satisfy ourselves as to the accuracy of the food service inventories as discussed in the third paragraph, and except for the effects on the general purpose financial statements ofthe matters referred to in the preceding paragraph, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the Jackson County Board of Education as of June 30, 2000, and the results of its operations for the year then ended, in confo11nity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued our report dated March 30, 2001, on our consideration of the Jackson County Board of Education's internal control over
financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be read in conjunction with this report in considering the
results of our audit.
2000ARL-13

Our audit was performed for the purpose of forming an opinion on the general purpose financial statements of the Jackson County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through L) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit ofthe general purpose financial statements and in our opinion, except for the effect ofadjustments, ifany, on the Special Revenue Fund, as might have been deter111ined to be necessary had we been able to satisfy ourselves as to the accuracy ofthe food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such infortnation is fairly stated, in all material respects, in relation to the general purpose financial statements taken as a whole .

A copy ofthis report has been filed as a pertnanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 50-
6-24.
Respectfully submitted,

RWH:gp
2000ARL-13

sell W. Hinton State Auditor




JACKSON COUNTY BOARD OF EDUCATION

JACKSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30, 2000

ASSETS

Cash and Cash Equivalents

Investments

Accounts Receivable

Inventories

Consumable Supplies

Food

Donated Commodities

Purchased Food



Amount Available in Debt Service Fund

Amount to be Provided in Future Years
For Payment of: Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

872,876.09

$

119,823.12

3,008.713.80

1,118,203.90

756,190.17 $

421,370.48

618,360.98

4,380.01

52,214.01 13,599.86

Total Assets

$ 4,642,160.07 $

487,184.35 $ 1,856,388.00

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable capital Lease Agreements General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Consumable Supplies Food Donated Commodities Purchased Food For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$

23,258.42

$

603,234.27

97,550.26 $

253,982.47

1,760.13

267,125.15 102,889.63

$

603,234.27 $

374,791.15 $_~3__7_1_.._,7_7_4__._9__1~

$

4,380.01

$

4,034,545.79 $ 4,038,925.80 $

52,214.01 13,599.86
$
46,579.33 112,393.20 $

1,470,079.08 1,729.00
12,805.01
1,484,613.09

Total Liabilities and Fund Equity

$ 4,642,160.07 $

487,184.35 $ 1,856,388.00

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

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES EXPENDABLE TRUST FUNDS

$

9,844.48 $

781.53

2,269.94

34,661.86

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS
(Memorandum Only}
JUNE 30, 2000 JUNE 30, 1999

$ 1,003,325.22 $ 1,177,196.28

4,129,187.64

4,132,015.72

1,830,583.49

1,953,775.01

$

46,776.28

4,380.01
52,214.01 13,599.86
46,776.28

14,777.50
37,859.66 12,789.41
34,997.22

17,738,223.72 2,465.85

17,738,223.72 2 465.85

18,650,002.78 282,917.06

$

46 776.28 $ _ _ _7_8_1_.5_3 $ 17,787,465.85 $ 24,820,756.08 $ 26,296,330.64

$

23,258.42 $

28,854.67

702,544.66

1,068,904.48

253,982.47

220,780.43

703.32

$

2,465.85

17,785,000.00

267,125.15
102,889.63 2,465.85
17,785,000.00

5,300.00
282,917.06
18,685,000.00

$ 17,787,465.85 $ 19,137,266.18 $ 20,292,459.96





$

46,776.28

0.00 $ _ _ _.:.7=-81.:.a;:::.;53,_

$

46 776.28 $ _ _ _..:.7.:.81.a.a:.:53,_

$

43,392.00

$

46,776.28

34,997.22

4,380.01

14,777.50

52,214.01 13,599.86 1,470,079.08
1,729.00

37,859.66 12,789.41 1,695,384.70
1,729.00

4,094,711.66

4,162,941.19

$ 5,683,489.90 $ 6,003,870.68

$

s_ _ _ s s s 46 776.28

1_8_1_.5_3

11 1787 1465.85

24 1820 11 s s . 0 8

2 s 1296,330.64

-3-

JACKSON 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. 2000

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant
Student Transportation Services Central Support Services
Other Support Services Food Services Operation Community Services Operations Capital Outlay Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Accrued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Discount on Bonds Sold Payments to Bond Escrow Agent Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 19,263,875.69 $
10,586,991.52 630,319.73
$ 30,481,186.94 $

825,851.69 2,730,461.43
$
892,025.05

2,626,080.43 138,075.19

4,448,338.17 $ _ _,2::,.,7:..::6:....:.41c.,:;55:..:..6:::2=-

$ 18,884,606.24 $
1,536,525.23 1,074,758.69
734,479.34 357,482.17 2.244,400.64 ' 165,416.40 2,175,767.91 1,943,001.75 496,492.79
4,074.09 79,557.27 241,470.47 156,296.06
280,451.21 8,892.74

1,642,504.31
249,175.55 301,349.32
13,677.60 2,666.52
193.79 21,867.84
189,856.31 2,074,655.90
3,851.36
$

3,157,739.46

$ 30,383,673.00 $

$

97,513.94 $

4,499,798.50 $ _....;3::,_,1.:.:5:.:.7.r.7:._,:;39:..:..4.:..:6:.... -51 ,460.33 $ _ _-3;;.;:9:.;;3.r.5:;,.:.83:..:.=...;_84



$ --.:..:17:..:::3cr.:0,:..::3.:.;3"'-'-11.:... $ --'-'-17:...::3:.r..:0,:.:,3~3:.:.1.:..1

$

-75,519.17 $

4,114,444.97

$

173,033.11

$ _ _1;.:.7.;::.3,r.:;0.:.;33:.:.1.:..:1~

-51,460.33 $
148,688.73

-220,550.73 1,705,163.82

14,354.35 810.45

FUND BALANCE JUNE 30

$ 4,038,925.80 $

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

-4-

s_ _ 1121393.20

1_.4_84..,;,i,;:,6.13_._09=

EXHIBIT "B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPES EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 20,089,727.38

$ 20,089,727.38 $ 18,991,539.41

2,730,461.43

2,730,461.43

2,459,466.56

$ 1,782,990.12 10,889.84

14,996,062.07 1,671,309.81 $ _ _ __:2:..:;0~5-c=-59=--

14,996,062.07 1,671,515.40

14,081,941.33 1,540,978.84

$ 1,793,879.96 $ 39,487,560.69 $ _ _ _-=2=0=5c;:;.59=-- $ 39,487,766.28 $ 37,073,926.14

$ 20,527,110.55 $

0.00 $ 20,527,110.55 $ 18,177,391.15

1,785,700.78 1,376,108.01 748,156.94
360,148.69 2,244,400.64
165,416.40 2,175,961.70 1,964,869.59
496,492.79 193,930.40 2,154,213.17 245,321.83 3,314,035.52

1,785,700.78 1,376,108.01
748,156.94 360,148.69 2,244,400.64 165,416.40 2,175,961.70 1,964,869.59 496,492.79 193,930.40 2,154,213.17 245,321.83 3,314,035.52

1,484,123.29 876,794.22 744,695.88 343,751.28
1,939,800.97 478,398.99
1,976,458.43 1,461,482.50
472,195.03 170,752.06 1,931,304.80 234,676.17 958,812.54

$

900,000.00

879,575.00

2,525.90

1,180,451.21 888,467.74 2,525.90

1,180,451.21 888,467.74 2,525.90

1,314,284.35 866,215.54 3,900.85

s 1 782,1oo.9o s 1
$ . 11 779.06 $

39,823,311.86 s _ _ ____;o::..:..o::.;:o;... s

-335,751.17 $

205.59 $

39,823,311.86 $ -335,545.58 $

33,435,038.05 3,638,888.09

$

173,033.11

-173,033.11

$ _ _ _ _,:;Oc=-0=--0

$

11,779.06 $

-335,751.17 $

34,997.22

6,003,294.74

14,354.35 810.45

$

56,703.78

-176,829.76

$

173,033.11

-173,033.11

12,320,000.00 -12,095.70
-12,131,074.54 104,737.93 -104,737.93

$ _ _ _--"'O.c::.;00:;... $

56,703.78

205.59 $ 575.94

-335,545.58 $ 6,003,870.68

3,695,591.87 2,293,500.92

14,354.35 810.45

14,422.54 355.35

$

46 776.28 $ 5,682,708.37 $

781.53 $ 5,683,489.90 $ 6,003,870.68

-5-

JACKSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2000

EXHIBIT "C"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING USES
Other Uses
Excess of Revenues over (under) Expenditures
and Other Financing Uses
FUND BALANCE JULY 1 1999
Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Foods

GENERAL FUND

BUDGET

ACTUAL (BUDGET
BASIS)

$ 18,831,682.98 $ 19,263,875.69

10,668,496.64 475,000.00

10,586,991.52 630,319.73

$ 29,975,179.62 $ 30,481,186.94


$ 18,689,867.65 $ 18,884,606.24

1,345,399.84 1,015,640.92
822,229.22 404,873.84 2,192,110.01 365,828.99 2,188,794.52 1,446,396.68 1,206,389.85
9,783.00 79,071.33
1,932.62 1,748,722.24
273,962.74

1,536,525.23 1,074,758.69
734,479.34 357,482.17 2,244,400.64 165,416.40 2,175,767.91 1,943,001.75 496,492.79
4,074.09 79,557.27 241,470.47 156,296.06 289,343.95

$ 31,791,003.45 $ 30,383,673.00

$ -1,815,823.83 $

97,513.94

-173,033.11

$ -1,815,823.83 $

-75,519.17

4,077,363.29

4,114,444.97

FUND BALANCE JUNE 30, 2000

$ 2,261,539.46 $ 4,038,925.80

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 634,324.49 $ 825,851.69

3,024,791.14

2,730,461.43

858,000.00

892,025.05

$ 4,517,115.63 $ 4,448,338.17

$ 1,575,540.00 $ 1,642,504.31

194,410.00 415,740.13
15,400.00 3,835.00

249,175.55 301,349.32
13,677.60 2,666.52

31,497.50
172,493.00 2,103,200.00
5,000.00

193.79 21,867.84
189,856.31 2,074,655.90
3,851.36

$ 4,517,115.63 $ 4,499,798.50

$

0.00 $ -51,460.33

$

0.00 $ -51,460.33

357,990.41

148,688.73

-939.29

14,354.35 810.45

$ 357,051.12 $ 112,393.20

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

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Jackson County Board of Education (Board) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The Board is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the Board is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The Board uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time ofpurchase. A General Fixed Assets Account Group is not presently maintained by the Board. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
.
Although ''school activity accounts'' are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To confo11n to generally accepted accounting principles, these accounts should be recorded in the general purpose financial statements:
The general purpose financial statements account for all State, Federal, Taxes and Other funds under control of the Board, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofa Board's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources ofthe Board except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-7-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND-the fund used to account for the accumulation ofresources for, and the payment of, general long-ter111 principal, interest and paying agent fees.
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for individuals, private organizations, other government units and/or other funds. These funds include:
EXPENDABLE TRUST FUNDS Student Achievement Recognition Fund - the fund used to account for donations which may be expended to provide awards made at the discretion of the Board.
Staff Vending Account - the fund used to account for commissions earned from vending machines located in the Jackson County Board of Education Central Office to be used for miscellaneous expenditures and for central office improvement.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - a financial reporting device used to account for general obligation debt outstanding and capital lease obligations.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental and expendable trust funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Te1111 Debt Account Group.

-8-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Governmental and expendable trust funds are accounted for using the modified accrual basis of
accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and
available). "Measurable'' means the amount of the transaction can be detc:::rrnined and ''available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. Those revenues considered susceptible to accrual are property taxes, local option sales taxes, intergovernmental grants and investment income.

Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2000, a substantial number of personnel of the Board were employed for a one hundred and ninety day period beginning in late August 1999 and ending in early June 2000. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 1999 and ending in August 2000. State grants to fund the State's share of these
contracts were disbursed from the Georgia Department ofEducation to the Board in the same twelve
months. As ofJune 30, 2000, compensation under these employment contracts had been earned, but two ofthe twelve monthly payments, due for July and August 2000, had not been made. Payments for these two months were made and recorded as expenditures by the Board subsequent to June 30, 2000. Also, the State's portion ofthe compensation paid in July and August 2000 was received and recorded as revenue in the fiscal year subsequent to June 30, 2000. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 1999, were recorded in the year ended June 30, 2000. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Jackson County Board ofEducation's budget is a complete financial plan for the Board's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level ofbudget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the Board's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with
-9-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of deposits in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the Board to deposit its funds in one or more solvent banks, insured Federal savings and loan associations, or insured State chartered building and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the Board in nonparticipating interest-earning contracts (such as certificates of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the Board to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate of return shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.

- 10 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: 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 information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES
The Jackson County Board of Commissioners fixed the property tax levy for the 1999 tax year (calendar year) on November 18, 1999 (levy date). Taxes were due on January 15, 2000. The lien date for property taxes was January 1, 1999. Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2000. The Jackson County Tax Commissioner bills and collects the property taxes for the Board of Education, withholds 2.5/o of taxes collected as a fee for tax collection and remits the balance of taxes collected to the Board.

Tax millage rates levied for the 1999 tax year (calendar year) for the Jackson County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

18.38 mills 1.00 mills
19.38 mills

SALES TAXES
Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $3,800,308.77 and was recorded in the Capital Projects and Debt Service Funds. The State will terrninate collection of this tax once an additional $6,697,035.33 has been collected or on June 30, 2002, whichever occurs first.
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund

- 11 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
balance which indicates that these amounts do not constitute ''available spendable resources'' even though they are a component of net current assets.
CONSUMABLE SUPPLIES INVENTORIES Inventories ofconsumable supplies are reported on the Combined Balance Sheet at cost (weighted average). Consumable supplies are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet for consumable supplies are equally offset by a reservation offund balance which indicates that this amount does not constitute ''available spendable resources'' even though they are a component of net current assets.
COMPENSATED ABSENCES
Compensated absences represent obligations of the Board relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general purpose financial statements.
Additionally, 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-Te11n Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The Board issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount ofthese bonds is recorded in the General Long-Te11n Debt Account Group.
INTERFUND TRANSACTIONS
The Board has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions ofexpenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.

- 12 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general purpose financial statements are captioned ''Memorandum Only'' to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

- 13 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Inte1mediate Credit Bank, the Central Bank for Cooperatives, the Fa11n Credit Banks, the Federal Home Loan Mortgage . Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2000, the bank balances were $2,324,503.01. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with
securities held by the Board or by the Board's agent in the Board's name. Category 2 - Cash collateralized with securities held by the pledging financial institution's
trust department or agent in the Board's name. Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized
with securities held by the pledging financial institution, or by its trust department or agent but not in the Board's name.)

The Board's deposits are classified by risk category at June 30, 2000, as follows:

Risk Category

Bank Balance

1

$ 210,345.00

2

2,114,158.01

3

0.00

Total

$ 2,324.50:3.01

CATEGORIZATION OF INVESTMENTS At June 30, 2000, the carrying value of the Board's total investments was $4,129,187.64 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services which are not required to be categorized since the Board did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state
government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool
which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner

- 14 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 2: DEPOSITS AND INVESTMENTS
consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-te11n instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2000, was 23 days. The average investment duration for Fund 6 on June 30, 2000, was .80 year.
Note 3: NON-MONETARY TRANSACTIONS
The Board receives food commodities from the United States Department ofAgriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned
value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The Board is exposed to various risks ofloss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.
The Board has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions and job related illness or injuries to employees. The Board has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the Board's insurance coverage in any of the past three years.
The Board has elected to self-insure for all losses related to natural disaster. The Board has not experienced any losses related to this risk in the past three years.
The Board is self-insured with regard to unemployment compensation claims. The Board accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

- 15 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 4: RISK MANAGEMENT

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

1999 2000

Beginning of Year Liability

Claims and Changes in Estimates

$

0.00 $

4 341.00 $

$

0.00 $

2,940.00 $

Claims Paid

End of Year Liability

4 341.00 $_ _ _~0=.0~0 2,940.00 $_ _ _~o=.o~o

The Board has purchased surety bonds to provide additional insurance coverage as follows:

Position Covered

Amount

Superintendent All Employees

$ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Jackson County Board of Education entered into an agreement on April 1, 1991, with the Georgia School Boards Association (GSBA), Incorporated for the construction and subsequent lease of various school facilities. Under the tt;;1111s of the lease agreement, the Board will make semiannual payments through July 1, 2001. The lease includes an annual renewal clause. In addition, the Jackson County Board of Education has entered into a lease agreement as lessee for a vehicle.

These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as ofthe date oftheir inception.

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

Purpose

Interest Rates

Amount

General Government - Refunding Series 1993 General Government - Series 1994 General Government - Refunding - Series 1998

3.00% - 5.50% 3.70% - 6.00% 3.50% - 4.75%

$ 4,445,000.00 1,320,000.00
12,020,000.00

$17,785,000.00

The changes in General Long-Te11n Debt during the fiscal year ended June 30, 2000, were as follows:

- 16 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 5: GENERAL LONG-TERM DEBT

Balance July I, 1999
Deductions Debt Retired Payments
Balance June 30, 2000

Capital Leases

GSBA

Other

General Obligation
Bonds

Total

$ 270,298.87 $ 12,618.19 $18,685,000.00 $18,967,917.06

270.298.87

$

0.00 $

10.152.34

900,000.00

900,000.00 280.451.21

2,465.85 $!7,785,000.00 $17,787,465.85

At June 30, 2000, payments due by fiscal year which includes principal and interest for these items are as follows:

Fiscal Year Ended June 30
2001 2002 2003 2004 2005 2006 - 2010 2011 - 2015
Total Principal and Interest
Deduct: Imputed Interest
Net Present Value of Future Minimum Lease Payments

Capital Leases

GSBA

Other

General Obligation
Bonds

Total Debt

$ 10,364.88 $

2,497.93 $ 419,136.25 $ 431,999.06 1,756,100.00 I,756,100.00 1,750,202.50 I,750,202.50
1,746,057.50 I,746,057.50
1,743,287.50 1,743,287.50 8,667,092.50 8,667,092.50 8,519,753.75 8,519,753.75

$ 10,364.88 $ 2,497.93 $24,601,630.00 $24,614,492.81

10,364.88

32.08

$

0,00 $ 2,465.85

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT



In fiscal year 1998, the Board defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not included in the Board's general purpose financial statements. At June 30, 2000, $11,055,000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS
The Board has recognized revenues and expenditures in the amount of $417,601.75 for health insurance and retirement contributions paid on the Board's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of$317,048.04
- 17 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $21,623.71

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $78,930.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the Board as of June 30, 2000, together with funding available:

Proiect
West Jackson Elementary East Jackson Elementary

Unearned Executed Contracts

Funding Available From State

$ 4,028,936.73 $ 2,527,592.00

294,000.00

0.00

$ 4,322,936.73 $ 2,527.592.00

The amounts described in this note are not reflected in the general purpose financial statements. Note 9: CONTINGENT LIABILITIES

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

Note 10: ACCUMULATED EMPLOYEES' LEAVE

The Board's administrative staff and certain other full-time employees earn .84 days per month of annual leave. Annual leave may be accumulated to a maximum of twenty days, and an amount based on unused leave, up to the maximum accumulation, is paid to employees, at their current rate of pay, upon retirement or te11nination of employment. See Note 1 - Compensated Absences


- 18 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2000

Note 11: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school systems are covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees of the Board who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The Board makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2000 1999 1998

100%. 100% 100%

$ 1,993,038.61 $1,915,269.10 $ 1,727,894.25





- 19 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2000

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

185,051.29 $

41,503.65

4,209.21

30,864.75

52,214.01 13,599.86

Total Assets

$

255,074.37 $==-==7=2=,3=6=8...,,40=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total Liabilities

FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity

$

38,684.63 $

103,996.54

19,646.50 52,721.90

$

142,681.17 $ _ _ _7_2..._,3_6__8__.4_0_

$

52,214.01

13,599.86

46,579.33 $ _ _ ___,;0::.:..0=0:....

$

112,393.20 $ _ _ ___,;0::.:..0=0:....

$ 255,074.37 $ 72,368.40 -------------- --

- - ----

----- - - - - -

See notes to the general purpose financial statements. - 20 -

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

0.00 $

226,554.94 $

293,249.16

$

386,296.52

421,370.48

568,479.87

52,214.01 13,599.86

37,859.66 12 789.41

$

386,296.52 $

0.00 $
------

713,739.29 $==9=1=2=,3=78==10=

$

249,813.36

39,219.13

97,264.03

$ _ _3_8_6~,2_96_.5_2_

$

249,813.36 $

322,103.83

97,550.26

220,101.79

253,982.47

220,780.43

703.32

$

601,346.09 $ _ _7_6_3.._,6_89_._37_

$

52,214.01 $

37,859.66

13,599.86

12,789.41

$

0.00 $ - - - - -0.0-0

46,579.33

98,039.66

$

0.00 $

0.00 $

112,393.20 $ _ _1"--4;..;;.8.i..;;,6~88=.;..;73~

$

386,296.52 $ --- ---

0.00 $
-- -------

713,739.29 $====9-=1=2.,..,3_78,..._10_

- 21 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2000

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 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 in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

135,916.00 $

591,272.69

995,448.31

892,025.05

$ 2,023,389.36 $ _ _5_9_1~,2_7_2._69_

$

494,933.59

91,580.35 1,727.65

$

193.79

2,074,655.90

3,031.10

$ 2,074,849.69 $ _ ___,;5;;..;;9..1..,.=. 27.;..;2=.6"-"9_

$

-51,460.33 $

0.00

$

-51,460.33 $

0.00

148,688.73

0.00

14,354.35 810.45

FUND BALANCE JUNE 30

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

112,393.20 $

0.00

EXHIBIT "F"


FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$
$ 1,735,013.12
$ 1,735,013.12 $

98,663.00 $

825,851.69 $ 2,730,461.43
892,025.05

98,663.00 $. 4,448,338.17 $

787,878.61 2,459,466.56
845,058.43
4,092,403.60

$ 1,066,015.00 $

157,595.20 282,514.39
13,677.60 2,666.52

18,836.74 189,856.31

3,851.36

$ 1,7351013.12 $

$'

0.00 $

81,555.72 $ 17,107.28
981663.00 $ 0.00 $

1,642,504.31 $
249,175.55 301,349.32
13,677.60 2,666.52 193.79
21,867.84 189,856.31 2,074,655.90
3,851.36
41499,798.50 $
-51,460.33 $

1,401,802.05
228,761.55 210,942.19
39,708.79 34,217.92
7,799.99 34,163.64 145,876.72 1,859,152.84 251381.65
319871807.34
104,596.26

269.86

$

0.00 $

0.00 $

-51,460.33 $

104,866.12

0.00

0.00

148,688.73

29,044.72

14,354.35 810.45

14,422.54 355.35

$

0.00 $
-- - - - - --- - - - - -

0.00 $

112,393.20 . $..,_,....1..4...,8_,6.8..8.....7..3=

- 23 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND
JUNE 30, 2000

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable

Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For SPLOST Projects For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

12,805.01 $

366,443.78

$

12,805.01 $ ===3=66=,4=43=.78=

$

267,125.15

97,589.63

$ ____3_6_4....._7_14--.7__8__



$

1,729.00

$ _ _....;1=2=,8=05=.0.;;;..1.;...

0.00

$

12,805.o1 $ _ _ _.;.a1,c;.;72;.;9a.a.o;:;,.;oa..

Total Liabilities and Fund Equity

$

12,805.01

$

366,443.78- -- - --- - - - - - -----

..

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

EXHIBIT "G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2000

JUNE 30, 1999

$

379,248.79 $

381,373.61

$ 1,118,203.90

1,118,203.90

666,599.77

618,360.98

618,360.98

662,490.44

$ 1,736,564.88 $ 2,115,813.67 $ 1,710,463.82

$

259,425.67 $

259,425.67

1,760.13

1,760.13

267,125.15

5,300.00

1021889.63 $ _ _----'"5"""',3"""00"""".""'"oo"-

$

266,485.80 $

631,200.58 $ _ ____:;.5~,3.:;.;00:.:..0=..:0:;....

$ 1,470,079.08 $ 1,470,079.08 $ 1,695,384.70

1,729.00

1,729.00

0.00

12,805.01

8,050.12

$ 1,470,079.08 $ 1,484,613.09 $ 1,705,163.82

$ 1,736,564.88 $ ----. ------~

2,115,813.67 $

1,710,463.82



- 25 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDED JUNE 30, 2000

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

4 754.89 $ -----"-'0-.0~0

$

4 754.89 $ -----"-'0-.0~0

$

173,033.11 $

4,320.84

1,472,400.53

$

173,033.11 $ _ _1.._,4_7_6_,.7...2_1_.3_7_

$ -168,278.22 $ -1,476,721.37

$

173,033.11 $ 1,476,721.37

$

173I033.11 $ _......;.,1l..;..47;..;;6'-'-'7I..;;;;2..;.;1.;;;.;37'-

$

4,754.89 $

8,050.12

0.00 1,729.00

FUND BALANCE JUNE 30

$

12,805.01 $

1,729.00

-- - --

-------- -

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

EXHIBIT "H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2000

JUNE 30, 1999

$ 2,626,080.43 $ 2,626,080.43 $ 2,408,801.25

133,320.30

138,075.19

84,328.80

$ 2,759,400.73 $ 2,764,155.62 $ 2,493,130.05


$

96,461.31

$ 1,469,978.83 $ 1,647,332.78

32,749.90

1,505, 150.43

5,256.25

5,256.25

867,300.98 2,895.28

$

3z157,739.46 $ _ _9:::.,:6::,::6~,6:,:;:5.:.,:7c:;:_57,:__

$ 1,251,415.75 $

-393,583.84 $ 1,526,472.48

$ 1,649,754.48 $

$ -1,476,721.37

-1,476,721.37

386,312.07 -281,844.00

$ -1,476,721.37 $

1731033. 11 $ _ _..:.;10~4:.i..4.,:.:::;6.::.;8:.:.O7,:__

$

-225,305.62 $

-220,550.73 $ 1,630,940.55

1,695,384.70

1,705,163.82

74,223.27

$ 1,470,079.08 $ 1,484,613.09 $ 1,705,163.82

-27-

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2000

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

$

9,844.48

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

0.00

TOTALS

JUNE 30, 2000

JUNE 30 1 1999



$

9,844.48 $

3,098.05

2,269.94

2,269.94

1,408.42

34,661.86

34,661.86

30,490.75

Total Assets

$ 46,776.28 $

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$ 46,776.28 0.00 $

0.00 $

46,776.28 $ ====3=4=,9=97=.2=2=

$
0.00

46,776.28 $
0.00

34,997.22 0.00

Total Fund Equity $

0.00 $

46,776.28 $ =-==34='=99=7=.2=2==

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

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND
YEAR ENDED JUNE 30, 2000

EXHIBIT "J"

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

REVENUES

Taxes Other Funds

$ 608,761.78 $ 1,174,228.34 $ 1,782,990.12 $ 1,774,727.02

10,889.84

10,889.84

7 887.71

Total Revenues

$ 619,651.62 $ 1,174,228.34 $ 1,793,879.96 $ 1,782,614.73

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$ 295,000.00 $ 310,346.66 2,525.90

605,000.00 $ 569,228.34

900,000.00 $ 879,575.00
2,525.90

1,005,000.00 830,717.92 2,549.95

Total Expenditures

$ 607,872.56 $ 1,174,228.34 $ 1,782,100.90 $ 1,838,267.87

Excess of Revenues over (under) Expenditures

$ 11,779.06 $

0.00 $

11,779.06 $ _ ___;-5=.::5ci.::,6a,a53:::.:.:.14.:..

OTHER FINANCING SOURCES (USES)

Acaued Interest on Bonds Sold Refunding Bond Issuance Cost Proceeds of Refunding Bonds
Par Value Discount on Bonds Sold Payments to Bond Escrow Agent

$

56,703.78

-176,829.76

12,320,000.00

-12,095.70

-12,131,074.54



Total Other Financing Sources (Uses)

$ _ ___;5::.::6:.r..7:.,.:::.03:::.:.7.:..:8:..

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ 11,779.06 $

0.00 $

11,779.06 $

1,050.64

FUND BALANCE JULY 1

34,997.22

0.00

34,997.22

33,946.58

FUND BALANCE JUNE 30

$ 46,776.28 $

0.00 $

46,776.28 $ _ _;3..,4.,.,9_9_7._2.2..

See notes to the general purpose financial statements.

-29-

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2000

EXHIBIT "K"

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Unreserved Undesignated

EXPENDABLE TRUST FUNDS

STAFF VENDING

STUDENT ACHIEVEMENT RECOGNITION

ACCOUNT

FUND

TOTALS JUNE 30, 2000 JUNE 30, 1999

$ 714.44 $

67.09 $

781.53 $ ======5=7=5=.9=4=


$ 714.44 $

67.09 $

781.53 $ ======5=75==94=



See notes to the general purpose financial statements.
- 30-


JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPES - EXPENDABLE TRUST FUNDS
YEAR ENDED JUNE 30, 2000

EXHIBIT "L"

REVENUES Other Funds
EXPENDITURES None Reported
Excess of Revenues over (under) Expenditures FUND BALANCE JULY 1

STAFF VENDING ACCOUNT

STUDENT ACHIEVEMENT RECOGNITION
FUND

TOTALS YEAR ENDED
JUNE 30, 2000 JUNE 30, 1999

$ 205.59 $

$

0.00 $

$ 205.59 $

508.85

0.00 $

205.59 $ ----=2'-'-45;:.;.=.91;...

0.00 $ 0.00 $ 67.09

o.oo $ ____o;:.;=ooa..

205.59 $

245.91

575.94

330.03

FUND BALANCE JUNE 30

$ 714.44 $

67.09 $

781.53 $ ..,._...,...5_7=5._94..,.



See notes to the general purpose financial statements.

- 31 -

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2000

SCHEDULE "1"



FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

School Breakfast Program



National School Lunch Program



10.553 10.555

NIA

$ 195,124.32

(2)

N/A

691,543.09 $ 1,966,068.79 (3)

Total Child Nutrition Cluster

. $ 886,667.41 $ 1,966,068.79

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

NIA

108,780.90

108,780.90

Total U. S. Department of Agriculture

$ 995,448.31 $ 2,074,849.69

Education, U. S. Department of

Special Education Cluster

Pass-Through From Georgia Department of Education

Individuals with Disabilities Education Act

Part B - Special Education



Capacity Building Grant

Flow Through

Preschool

84.173 84.027 84.173

NIA

$ 18,731.00 $

N/A

463,456.65

NIA

67,608.93

18,731.00 463,456.65
67,608.93

Total Special Education Cluster

$ 549,796.58 $

549,796.58

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I

Grants to Local Educational Agencies

84.010

NIA

Title II

Eisenhower Professional Development

84.281

NIA

Title 111

Technology Literacy Challenge Fund Grants

84.318

NIA

Title VI

Class Size Reduction

84.340

NIA

Innovative Education Program Strategies

84.298

NIA

Goals 2000

State and Local Education Systemic Improvement

Grants

84.276

NIA

Safe and Drug-Free Schools

84.186

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84.048

N/A

Pass-Through From Hall County Board of Education

d/b/a Piedmont Migrant Education Agency

Elementary and Secondary Education Act

Title I

Migrant Education

84.011

NIA

704,705.32 21,797.00 111,811.08 81,762.17 28,234.00
110,955.00 60,484.56
45,580.00
19,887.41

704,705.32 21,797.00
- 111,811.08
81,762.17 28,234.00
110,955.00 60,484.56
45,580.00
19,887.41

Total U. S. Department of Education

-~~-'---- $ 1,735,013.12 $ 1,735,013.12

Total Federal Financial Assistance NIA= Not Available

-32-

- - - - - - - $ 2,730,461.43 $ 3,809,862.81

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2000

SCHEDULE "1"

Notes to the Schedule of Expenditures of Federal Awards
(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2000 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
Major Programs are identified by an asterisk (*) in front of the CFDA number.
The Board did not provide Federal Assistance to any Subrecipient.
The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Jackson County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general purpose financial statements.




See notes to the general purpose financial statements.

33

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2000

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education General and Career Education Programs Special Education Programs Remedial Education Program Media Center Programs Staff Development Programs Indirect Cost

Pupil Transportation Regular Bus Replacement
Middle School Incentive Program Special Instructional Assistance In-School Suspension Mid-term Adjustment Counselors Grades 4 and 5 Technology Specialist Local Five Mill Share Educational Equalization Funding Grant Food Services Vocational Education Other State Programs Alternative Program Apprenticeship Program At-Risk Summer School Program Health Insurance Innovative Programs Joint Evening Programs Mentor Teacher Program Preschool Handicapped Program Remedial Summer School Program Teachers' Retirement Lottery Programs Assistive Technology Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Crossroads Mini Grant Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 10,891,372.00 2,982,351.00 363,533.00 477,671.00 137,415.00 2,969,110.00

$ 10,891,372.00 2,982,351.00 363,533.00 477,671.00 137,415.00 2,969,110.00

813,414.00 235,716.00 377,600.00 584,365.00 100,814.00 116,471.00
47,523.00 86,527.00 -2,979,452.00 914,303.00
114,825.08

$ 135,916.00

813,414.00 235,716.00 377,600.00 584,365.00 100,814.00 116,471.00
47,523.00 86,527.00 -2,979,452.00 914,303.00 135,916.00 114,825.08

248,888.38 40,000.00 13,428.70
317,048.04 5,000.00
110,000.00 5,184.00
44,827.00 4,600.28
21,623.71

248,888.38 40,000.00 13,428.70
317,048.04 5,000.00
110,000.00 5,184.00
44,827.00 4,600.28
21,623.71

26,221.98 113,051.00

26,221.98. 113,051.00

451,999.71

451,999.71

78,930.00

78,930.00

500.00 140,287.50

98,663.00

500.00 140,287.50
98,663.00

$ -~1-9--,-2-6-3- ,8-7- -5.6- 9- $ 825,851.69 $ 20,089,727.38
See notes to the general purpose financial statements. - 34-

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2000

SCHEDULE "3"

PROJECT
Payment of portion of payments, induding
principal and interest due on Series 1993 and 1994 Bonds
Construction of two new elementary schools, parking area and grounds, induding acquisition of real estate, furnishings, equipment and fixtures
Construction of additional dassrooms, instructional and support space, remodeling and renovating existing dassrooms, instructional and support space, recreational fields and grounds and furnishings, equipment and fixtures for such areas at North Jackson, South Jackson, Jackson County and Maysville Elementary Schools, East and West Jackson Middle Schools, Jackson County Comprehensive High School and Gordon Street School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3) (4)

AMOUNT EXPENDED
IN PRIOR YEARS

$ 9,024,203.00 $ 9,024,203.00 $ 1,174,228.34 $ 1,459,082.97

12,000,000.00 12,000,000.00 2,946,700.20

769,217.91

9,000,000.00

9,000,000.00

38,006.15 2,418,614.79

$ 30,024,203.00 $ 30,024,203.00 $ 4,158,934.69 $ 4,646,915.67

(1) The Board's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.

(2) The Board"s current estimate of total cost for the projects. lndudes all cost from project inception to completion.

(3) The voters of Jackson County approved the imposition of a 1% sales tax to fund the above projects and retire
associated debt. Amounts expended for these projects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above, the Board has incurred interest expense to provide advance funding for the above projects as follows:

Prior Years

$ 148,588.03

Current Year

0.00

$ 148,588.03

See notes to the general purpose financial statements.

-35-

JACKSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - OVERALL
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30, 2000

SCHEDULE "4"

Minimum Expenditure Requirements (Total Allotment) Expenditures on Combined Program Basis.
Salaries Operations
Less: Expenditures for Media Center Programs in Excess of Total Media Allotment
Expenditures per Audit
Amount of Underexpenditure for Total Allotment

FOURTEEN WEIGHTED AND MEDIA CENTER
PROGRAMS

100/o TEST FOR OPERATIONS PORTION OF FOURTEEN WEIGHTED PROGRAMS

$

14,831,398.00 $ _ _ _4..;..;6:;..;4""9',:..;.7.;.;1:..:.00.;.

$

15,394,772.08

1,434 ,451 92 $ _ _1.;.i.,3;:;,,;3:.;:6""8',:.;.3.=;.;6;_;_;72=

$

16,829,224.00

-234,841.15 $ _ _1.;.;6;_:.;5,;.;9;.;.4.,.3;,=8=2.;;.85.;.

$

o.oo $ ======o.=o=o

See notes to the general purpose financial statements. - 37 -

JACKSON COUNTY BOARD OF EDUCATION ANALYSIS OF MINIMUM EXPENDITURE REQUIREMENTS - BY PROGRAM
GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS YEAR ENDED JUNE 30 2000

GENERAL AND CAREER EDUCATION PROGRAMS Kindergarten (*) Grades 1 - 3 (*)
Sub-Total - K-3 Grades 4 - 5 (*) Grades 6 - 8 (*)
Grades 9 - 12 (*) High School Laboratories (*)
Vocational Education Laboratories (*)
Total General and Career Education Programs SPECIAL EDUCATION PROGRAMS
Regular Programs Category I (*) Category II (*) Category Ill (*) Category IV (*) Category V (*)
Sub-Total - Regular Category VI (Gifted) (*)
Total Special Education Programs REMEDIAL EDUCATION PROGRAM(*)
Total Fourteen Weighted Programs MEDIA CENTER PROGRAMS
Salaries Operations
Total Media Center Programs

ALLOTMENTS FROM GEORGIA DEPARTMENT OF

REQUIRED

ORIGINAL

% . ORIGINAL

MID-TERM

$ 1,226,308.00

$

3,245,348.00

$ 4,471,656.00 90 $

1,418,673.00 90

2,277,564.00 90

1,320,409.00 90

607,161.00 90

795,909.00 90

$ 10,891,372.00

$

1,103,677.20 $

0.00

2,920,813.20

4,024,490.40 $

0.00

1,276,805.70

64,816.00

2,049,807.60

20,547.00

1,188,368.10

546,444.90

716,318.10

31,108.00

9,002,234.80 $ _ _1_1-'-'6,"'"41_1_.o...;..o

$ 2,798,895.00

$ 2,519,005.50 $

0.00

$ 2,798,895.00 90 $ 2,519,005.50 $

0.00

183,456.00 90

165,110.40

$ 2,982,351.00

$ 2,684,115.90 $ _ _ _-ao.;.;;.o..;;;..o

$

363,533.oo 90 $

327,179.70 $ _ _ __;;0.;.;;.o..;;;..o

$ 14,237,256.oo

$ 12,813,530.40 $_---=1...:.16::.:.,4.:.:7...:.1~.o=-o


$

382,042.00 90 $

343,837.80 $

0.00

95,629.00 100

95,629.00

$

477,671.00

$

439,466.80 $ _ _ __;;0.;.;;.o..;;;..o

Total Fourteen Weighted and Media Center Programs $ 14,714,927.00

~-

-----

----

s 13,252,997.20 s_......;1..,16_.4=7-10..0..

STAFF DEVELOPMENT PROGRAMS
Cost of Instruction Professional Development

$

44,562.00

$

44,562.00 $

0.00

92,853.00

92,853.00

0.00

Total Staff Development Programs (*) Identifies Fourteen Weighted Programs.

$

137,415.00 100 $

137,415.00 $

0.00

See notes to the general purpose financial statements.

- 38 -


SCHEDULE "5"

EDUCATION TOTAL
REQUIRED

ACTUAL EXPENDITURES

SALARIES

OPERATIONS

TOTAL

AMOUNT OF UNDEREXPENDITURE
FOR REQUIRED ALLOTMENT

$ 1,103,677.20 $ 1,246,102.23 $

24,844.96 $ 1,270,947.19

2,920,813.20

3,015,775.33

207,848.63

3,223,623.96

$ 4,024,490.40 $ 4,261,877.56 $

232,693.59 $ 4,494,571.15 $

0.00

1,341,621.70

1,714,145.46

132,985.08

1,847,130.54

0.00

2,070,354.60

2,310,109.19

202,676.70

2,512,785.89

0.00

1,188,368.10

1,788,358.10

376,550.21

2,164,908.31

0.00

546,444.90

622,843.36

84,548.50

707,391.86

0.00

747,426.10

926,207.54

221,094.15

1,147,301.69

0.00

$ 9,918,705.80 $ 11,623,541.21 $ 1,250,548.23 $ 12,874,089.44

$ 2,519,005.50
$

63,701.26 533,638.15 $ 1,922,606.63
74,912.48 20,286.59

$
9,707.71 48,057.92 6,054.37
914.79

63,701.26 543,345.86 1,970,664.55
80,966.85 21,201.38

$ 2,519,005.50 $ 2,615,145.11 $

64,734.79 $ 2,679,879.90

0.00

165,110.40

191,626.07

12,932.60

204,558.67

0.00

$ 2,684,115.90 $ 2,806,771.18 $

77,667.39 $ 2,884,438.57

$

327,179.70 $

349,562.74 $

8,621.10 $ _ ___:3;.:5aa,8,.:.;18::,:3;.:.;:.84a.:..

0.00

$ 12,930,001.40 $ 14,779,875.13 $ 1,336,836.72 $ 16,116,711.85

$

343,837.80 $

614,896.95

$

614,896.95

0.00

95,629.00 - - - - - - $ _ _-"9.;..7.;.61.;..;5_.2_0_

97,615.20

0.00

$

439,466.80 $

614,896.95 $

97,615.20 $ _ _7:..;1c:2i.::;,5.;.:12::..1=5

$ 13,369,468.20 $

15,394,772.08 $

1,434,451.92
------------

$

-~1-6-,-8-29--,-2-2-4- .0--0

$

0.00
-- -- -- - -------------

$

44,562.00

92,853.00

$

137,415.00

$

83,857.91 $

83,857.91

75,577.94

75,577.94

$

159,435.85 $

----

- ----

159,435.85 $ -- - -- - - -

- ---- - .

- 0- .-00

'
- 39 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 30, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jackson 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 Jackson County Board of Education as of and for the year ended June 30, 2000, and have issued our report thereon dated March 30, 2001. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general purpose financial statements. Except as discussed in the following paragraph, we conducted our audit in accordance with generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking ofeither the Federal donated commodities inventory or the purchased foods inventory at June 30, 2000, nor could we satisfy ourselves as to the accuracy ofthe amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Jackson County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the detc1111ination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective ofour audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.

2000YB-40

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Jackson County Board ofEducation's internal control over financial reporting in order to dete11nine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Jackson County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6781-00-01 and FS-6781-00-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the no11nal course of perfo11ning their assigned functions. Our consideration ofthe internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions, and accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, ofthe reportable conditions described above, we consider itein FS-6781-0002 to be a material weakness.
This report is intended solely for the info1mation and use ofmanagement, members of the Jackson County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
.
Respectfully submitted,

RWH:gp
2000YB-40



Ru sell W. Hinton State Auditor

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

..".'.
"'
DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W.. Suite 214 Atlanta, Georgia 30334-8400
March 30, 2001

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jackson County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen: .
Compliance
We have audited the compliance ofJackson County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended Jun~ 30, 2000. Jackson County Board of Education's major Federal programs are identified in the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofJackson County Board ofEducation's manage1nent. Our responsibility is to express an opinion on Jackson County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with generally accepted auditing standards; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perfo1n1 the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Jackson County Board ofEducation's compliance with those requirements and perfo11ning such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal dete11nination on Jackson County Board of Education's compliance with those requirements.
2000SA-10

In our opinion, the Jackson County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2000.
Internal Control Over Compliance
The management of Jackson County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performi11g our audit, we considered Jackson County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to dete11nine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the nu11nal course ofperfo11ning their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the info11nation and use of management, members ofthe Jackson County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
...-R--es,pectfully submitted,

RWH:gp
2000SA-10

ell W. Hinton Sta e Auditor



SECTION ID AUDI'IEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS


JACKSON COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2000

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

6781-93-02 FS-6781-98-03 FS-6781-99-01

Further Action Not Warranted Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6781-99-01

The Board does not have the financial and personnel resources to establish a General Fixed Assets Account Group at this time. We are in the process oftaking inventory and making arrangements to be in full compliance as required by GASB 34.


SECTION IV FINDINGS AND QUESTIONED COSTS


JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Jackson County Board ofEducation's financial statements was qualified for a scope limitation and for various departures from generally accepted accounting principles.

2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Jackson County Board of Education disclosed financial statement reportable conditions related to the following control categories.

Employee Compensation

General Fixed Assets

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

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

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Jackson County Board ofEducation did not disclose any reportable conditions in internal control over major programs.

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

6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133
The Jackson County Board ofEducation's audit did not disclose audit findings required to be
reported by section .510(a) of 0MB Circular A-133.

7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program

8. Type ''A'' Program Dollar Threshold The dollar threshold for type ''A'' programs was $300,000.00.

9. Low Risk Auditee The Jackson County Board ofEducation was audited as a low risk auditee based on a waiver granted by the U.S. Department of Education.

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JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
EMPLOYEE COMPENSATION Salary Overpayment Reportable Condition Amount: $5,669.40 Finding Control Number: FS-6781-00-01
An instance was noted where a former employee was overpaid $5,669.40. This overpayment occurred when a bus driver's terrnination was 11ot communicated to the payroll department. This breakdown in controls allowed an individual, no longer employed by the Jackson County Board of Education, to receive ten months of pay for which he was not entitled. The Board has obtained a written statement from the former employee establishing a schedule for repayment. The Board should implement control procedures and reviews ofthese procedures to ensure that all persons paid through the payroll account are currently employed and are perforrning their duties.
Management's Response:
An instance was noted where a fortner employee was overpaid $5,669.40. This overpayment occurred when a bus driver's tt:1r11ination was not communicated to the payroll department. This breakdown in controls allowed an individual no longer employed by the Jackson County Board of Education to receive ten months of pay for which he was not entitled. This incident was self reported to the audit team by the Superintendent and efforts were already underway to recover the overpayment when the audit team visited. The Board has obtained a written statement from the forrner employee establishing a schedule for payment. The Board has implemented control procedures that ensure persons paid through the payroll account are currently employed and are perforrning their duties. Specifically, all bus drivers checks are being routed through the bus shop personnel or school principal and all sub drivers are verified as not being on a regular salary. This procedure will prevent this error from re-occurring.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6781-00-02
The Jackson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the for1nal accounting records as required by generally accepted accounting principles. This condition results in the general purpose financial statements of the Board being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the Board to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, buildings and equipment owned by the Board and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description.
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JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2000
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6781-00-02 Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: The Jackson County Board of Education has previously chosen not to maintain a system-wide General Fixed Assets Account Group because financial assets and personnel were not available to establish and maintain accounting control and procedures as required. The Jackson County Board of Education has taken appropriate action to implement and maintain a General Fixed Assets Account Group. We are currently in the process of taking inventory and making arrangements to be in full compliance as required by GASB 34.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
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