bF JACKSON COUNTY BOARD EDUCATION
-TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS-OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

22

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

CAPITAL PROJECTS FU,ND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

31

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

EXPENDABLE TRUST FUNDS -

33

JACKSON COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDI11JRES OF FEDERAL AWARDS

2 SCHEDULE OF STATE REVENUE

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

ALLOTMENTSANDEXPENDI11JRES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

5

BY SITE

Page
34 36 39 40 41

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

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

SECTION IV
FINDINGS AND QUESTIONED crnfrs
SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

R:,ssi-:1.1. \V. H1r-n>r-
STATE AUDITOR (404) 56-217<

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington St1n:t. S. W.. Suite 214 Al lanta. (ic:orgia 30>34-X-lO()
April 2, 2002

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, 2001, 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 a~dit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material 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, 2001, nor could we.satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.

2001ARL-13

-
As described in the notes to the general-purpose fin-ancial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, /these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as
~
revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined 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 of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Jackson County Board of Education as ofJune 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 2, 2002, 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.
2001ARL-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 of adjustments, if any, on the Special Revenue Fund, as might have been determined 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 information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted, .
---. ~-~..:k:

RWH:as 2001ARL-13

State Auditor

JACKSON COUNTY BOARD OF EDUCATION

JACKSON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001

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
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,105,328.35

$

61,487.60

. 7,924,734.42

2,682,539.37

639,933.13 $ 702,390.92

631,468.23

10,322.00

41,940.11 22,030.14

$ 9,680,317.90 $ 766 361.17 $ 3 375 495.20

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Short-Term Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue 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

$ 227,935.55

$ 1,101,955.24

139,983.17 $

242,064.47

4,900,000.00

468.87

8,000.00

7,665.74 .
124,938.97 305,300.00

$ 6,001,955.24 $ 618 452.06 $ 437 904.71

$

62,200.06

10,322.00 $

41,940.11 22,030.14
$

2,928,105.99

3 605 840.60

83 938.86

9 484.50

$ 3,678,362.66 $ 147 909.11 $ 2,937,590.49

Total Liabilities and Fund Equity

$ 9,680,317.90 $ 766 361.17 $ 3 375 495.20

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

2 -

EXHIBIT"A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

$

10,344.38 $

781.78

1,506.69

29,104.74

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Onl~)

JUNE 30, 2001

JUNE 30,2000

$

1,177,942.11 $

1,003,325.22

10,608. 780.48

4,129,187.64

2,002,897.02

1,830,583.49

$

40,955.81

10,322.00
41,940.11 22,030.14
40,955.81

4,380.01
52,214.01 13,599,86
46,776.28

16,804,044.19

16,804,044.19

17,738,223.72 2 465.85

$

40,955.81 $

781.78 $ 16,845,000.00 $ 30,7081911.86 $ 241820?56.08

$

227,935.55 $

23,258.42

1,249,604.15

702,544.66

242,064.47

253,982.47

4,900,000.00

468.87

124,938.97

267,125.15

305,300.00

102,889.63

8,000.00

2,465.85

$ 16 845 000.00

16,845,000.00

17,785,000.00

$ 16 845 000.00 $ 23,903,312.01 $ 19,137,266.18

$

40,955.81

000 $

$

40 955.81 $

$

40 955.81 $

781.78 781.78

$

62,200.06

40,955.81 $

46,776.28

10,322.00

4,380.01

41,940.11 22,030.14 2,928,105.99

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

3 700 045.74

4 094 711.66

$ 6,805,599.85 $ 5,683,489.90

781.78 $ 161845,000.00 $ 3017081911.86 $ 241820:756.08

-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. 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction
. Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services 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)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources {Uses)
Excess of Revenues and Other Financing Sources over (ur:ider) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purghased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 21.066,503.97 $
11,903,681.46 618,362.96

966,325.79 $ 2,912,944.20
976 058.51

2,439,532.10
2,941,314.59 137604.23

$ 33,588,548.39 $ 4,855,328.50 $ 5,518,450.92

$ 22,018,741.28 $ 1,942,561.57

1,144,872.90 703,088.88 919,677.34 364,530.07
2,545,159.45 312,910.46
2,716,927.69 1,648,229.68
534,247.81 5,727.72
105,186.46 263,703.82 619,413.51

161,446.59 333,990.17
9,910.27 2,853.93

1,986.21 25,286.97

216,737.60 2.109,990.17
13,539.25 $

4,107,673.52

2,465.85 92.95
1 601.90

$ 33,906,577.77 $ $ -318,029.38 $.

4,818,302.73 $ 37,025.77 $

4,107,673.52 1 410 777.40

$

$

-42 533.76

$

-42,533.76 $

333.76 $

42,200.00

333.76 $

42,200.00

$ -360,563.14 $ 4,038.925.80

37,359.53 $ 1,452,977.40

112,393.20

1,484,613.09

-10,273.90 8 430.28

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

147 909.11 $ 2,937,590.49

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 24,472,361.86

2,912,944.20

$ 1,766,905.43

16,611,901.48

8 122.50

1740148.20 $

$ 1,775,027.93 $ 45,737,355.74 $

$ 233.51

24,472,361.86 $ 2,912,944.20 16,611,901.48 1 740 381.71

20,089,727.38 2,730,461.43
14,996,062.07 1,671,515.40

233.51 $ 45.737,589.25 $ 39,487,766.28

$ 23,961,302.85

1,306,319.49 1,037,079.05
929,587.61 367,384.00 $ 2,545,159.45 312,910.46 2,718,913.90 1,673,516.65 534,247.81 222,465.32 2,215,176.63 277,243.07 4,727,087.03

$

940,000.00

838,272.50

2 575.90

942,465.85 838,365.45
4177.80

$ 1,780,848.40 $ 44,613,402.42 $

$

-5 820.47 $ 1,12~,953.32 $

$

42,533.76

-42 533.76

$

0.00

$

-5,820.47 $ 1,123,953.32 $

46,776.28

5,682,708.37

-10,273.90 8 430.28

$

40 955.81 $ 6 804.818.07 $

$ 23,961,302.85 $ 20,527,110.55

233.26

1,306,319.49 1,037,079.05
929,587.61 367,617.26 2,545,159.45 312,910.46 2,718,913.90 1,673,516.65 534,247.81 222,465.32 2,215,176.63 277,243.07 4,727,087.03

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

942,465.85 838,365.45
4177.80

1,180,451.21 888,467.74 2,525.90

233.26 $ 44,613,635.68 $ 39,823,311.86

0.25 $ 1,123,953.57 $

-335,545.58

$

42,533.76 $

173,033.11

-42 533.76

-173 033.11

$

0.00 $

0.00

0.25 $ 781 .53

1,123,953.57 $ 5,683,489.90

-335,545.58 6,003,870.68

-10,273.90 8 430.28

14,354.35 810.45

781.78 $ 6,805,599.85 $

-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 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 20,218,486.60 $ 21,066,503.97

11,095,236.51 508 500.00

11,903,681.46 618,362.96

Total Revenues

$ 31,822,223.11 $ 33,588,548.39

l;;XPENDITURES

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

$ i12,644.'617.13 $ 22,018,741.28

1,079,440.52 1,041,235.39
923,824.87 390,675.87 2.406,869.07 288,847.00 2,651,316.33 1,829,670.18 797,659.05
3,987.00 103,088.45
470,000.00 18 000.00

1,144,872.90 703,088.88 919,677.34 364,530.07
2,545,159.45 312,910.46
2,716,927.69 1,648,229.68.
534,247.81 5,727.72
105,186.46 263,703.82 619,413.51
4 160.70

Total Expenditures

$ 34 649 230.86 $ 33,906,577.77

Excess of Revenues over (under) Expenditures

$ -2 827 007. 75 $ -31 a_,029.38

OTHER FINANCING SOURCES {USES)

.Other Sources Other Uses

$

8,000.00

-52 754.19 $

-42,533.76

Total Other Financing Sources (Uses) $

-44 754.19 $

-42 533.76

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$ -2,871,761.94 $

FUND BALANCE JULY 1 2000

4,090,366.45

-360,563.14 4,038,925.80

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

FUND BALANCE JUNE 30 2001

$ 1 218.604.51 $ 3,678,362.66

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

798,708.50 $

966,325.79

3,094,775.32

2,912,944.20

858 000.00

976 058.51

$ 4 751 483.82 $ 4,855,328.50
----...

$ 1,851,555.33 $ 1,942,561.57

20~.321.00 335,732.80
6,150.00 4,150.00

161,446.59 333,990.17
9,910.27 2,853.93

24,408.55
242,183.00 2,103,200.00
22,583.14

1,986.21 25,286.97
216,737.60 2,109,990.17
13,539.25

$ 4,798,283.82 $ 4,818,302.73

$

-46 BOO.OD $

37 025.77

$

52,754.19 $

$

52 754.19 $

333.76 333.76

$

5,954.19 $

37,359.53

49,381.49

112,393.20

62,073.38

-10,273.90 8 430.28

$

117 409.06 $

147 909.11

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

r

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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

-8-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

.JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
FIDUCIARY FUND 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 fnade at the discretion of the School District.
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 of these funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resc;mrces are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.

-9-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

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 determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donation>. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year. in which all eligibility. requirements have been satisfied.
Expenditures are generally recognized when the related fund liability.is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety. day period beginning in August 2000 and ending in early June 2001. Personnel contracts fqr this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grantsto fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months: As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been. made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting ' principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when f~nds are received or disbursed.
BUDGET
The Jackson County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200i

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval 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 provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates 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 School District to invest its funds. In selecting among options for in.vestment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equival.ent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
- 11 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES-

(7) Repurchase agreements, and

(8) Obligations of other political subdivisions of the State.of Georgia.

RECEIVABLES

Receivables consist of grant reimbursements de .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 am.ounts 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 2000 tax year (calendar year) on December 28, 2000 (levy date). Taxes were due on March 15, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Jackson County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $11,797,496.46 and for school bonds amounted to $652,485.91.

Tax millage rates levied for the 2000 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

14.89 mills ___,_Th mills

15.67 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 $4,050,145.43 and was recorded in the Capital Projects and Debt Service Funds. TheBtate will terminate collection of this tax once an additional $2,646,889.90 has been collected or on June 30, 2002, whichever occurs first.

- 12 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 i

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVENTORIES
FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food c~mmodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
CONSUMABLE SUPPLIES INVENTORY c-
Inventories of consumable 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 of fund 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 School District 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-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and
construction ofmajor capital facilities. Bond premiums and discounts, as well as issuance costs, are
recognized in the financial statements during the year bonds are issued. 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 of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
- 13 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented onlyto facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with ge_nerally 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 of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public fund~ 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 tqe bonds for this purpose,
- 14 -

JACKSON COUNTY BOARD OF EDUCATJON

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and

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

CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $2,438,762.41. 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 School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

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

Risk Category

Bank Balance

1

$ 210,845.32

2

2,227,917.09

3

0.00

Total

$2,438,762.41

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $10,608,780.48 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:
I

- 15 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

The Primary Liquidity Portfolio.consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a~7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal($ 1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value of the 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 I and Fund 6are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as. to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund l on June 30, 2001, was 39 days: The average investment duration for Fund 6 on June 30, 2001, was 6 months.

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture

(USDA) for school breakfast and lunch programs. These commodities are recorded at their

Federally assigned value. See Note 1 - Inventories

,

.

,

Note 4: RISK MANAGEMENT

The School Dis~rict is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; natural disaster and unemployment compensation.

The School District has obtained commercial insurance forri~k of loss associated with t~rts, assets, errors or omissior1s and job related illness or injuries to employees: The School District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any of the past three years.

The School District has elected to self-insure for all losses related to natural disaster. The School District has not experienced any losses related to this risk in the past three years.

- 16 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated.

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

2000 2001

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $ 2,940.00 $ 2,940.00 $

0.00

$

0.00 $

0.00 $

0.00 $

0.00

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

Position Covered

Amount

Superintendent All Employees

I $ 50,000.00 $ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Jackson County Board of Education has entered into a lease agreement as lessee for a vehicle. This lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of 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%

$ 3,900,000.00 1,010,000.00
11,935,000.00

$16.845.000.00

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

- 17 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2000

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

Deductions Debt Retired Payments

2,465.85

940,000.00

940,000.00 2,465.85

Balance June 30, 2001

$======0==.0'='=0 $16.845.000.00 $16,845,000.00 .

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

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003 2004 2005 2006 2007 .- 2011 2012 - 2016 .

$ 396,963.75 1,750,202.50. 1,746,057.50 1,743,287.50 1,739,115.00 8,645,870.00 6,801,861.25

Total Principal and Interest

$22,823,357.50

Note 6: SHORT-TERM DEBT

The School District-obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections due March 2001, are received by the School District. Article IX, Section V, Paragraph V of the Constitution of the Sta.te of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later than December 31 ofthe calendar year in which the debt was incurred.

Beginning

Balance

Additions

Payments

Ending Balance

Temporary Loans

$==~o~.o~o $ 4,200,000.00 $.======l!!o..o.~o $ 4,200,000.00

- 18 -

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

EXHIBIT "D"

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1998, the School District 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 School District's general-purpose financial statements. At June 30, 2001, $11,055,000.00 ofbonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $422,237.40 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $328,220.40

Paid to the Teache'rs Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $17,331.00

Office of Treasury and Fiscal Services

Paid to the Public School Employees Retirement System

,

For Public School Employees ~etirement (PSERS) Employer's Cost

In the amount of $76,686.00

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

West Jackson- Elementary East Jackson Elementary

$ 264,199.30 $ 128,059.90

294,000.00

0.00

$ 5581199.30 $ 1281052.20

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

- 19 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 10: CONTINGENT LIABILITIES
Amounts received or receivable principally from the Federal government are subject to audit and review by granter agencies. This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant terms. The Scli.ool District believes that such disallowances, if any, will be immaterial to its overall financial position.
Note 11: SUBSEQUENT EVENTS
On September 18, 2001, the voters ofJackson County School District voted in favor of a Special Purpose Local Option Sales _Tax referendum for educational purposes. The imposition of the tax approved by the voters, as stated on the Official Ballot of Jackson County, is as follows:
"Shall a special one percent sales and use tax be imposed in Jackson County (such tax to be a continuation ofthe existing 1% sales and use tax and not an additional sales and use tax) for a period oftime not to exceed five years (20 calendar quarters) commencing upon the expiration of the existing one percent sales and use tax previously imposed for the raising of not more than $27,765,100.00 for the purposes of the Jackson County School District: (i) paying all or a portion of the debt service on outstanding Series 1993 General Obligation Bonds previously issued by the Jackson County School District, unrefunded Series 1994 General Obligation Bonds previously issued by the Jackson County School District and Series 1998 Refunding . General Obligation Bonds previously issued by the Jackson School District (the "Outstanding Jackson School Debt"), the maximum amount of debt service to be paid with sales tax proceeds will be $8,835,838 and (ii)(A) acquiring, constructing and equipping new school buildings and other buildings or facilities useful or desirable in connection therewith, (B) acquiring new schooi equipment, (C) adding to, .renovating, repairing, improving and equipping existing school buildings or other buildings or facilities useful or desirable in connection therewith, and (D) acquiring any property necessary or desirable therefo~e, both real and personal (the "Jackson School Projects"), the maximum amount ofthe Jackson School Projects to be paid with sales tax proceeds will be $27,765,100 less the amount of Jackson School District's share of such proceeds used to pay the Outstanding Jackson Debt. If the imposition and continuance of the tax is approved by the voters within the Jackson School District, such vote shall also constitute approval of the issuance of general obligation debt of the Jackson School District in the principal amount of$20,000,000 for the purpose of funding portions of the Jackson School Projects."
Note 12: ACCUMULATED EMPLOYEES' LEAVE
The School District's administrative staff and certain other full-time employees earn .84 days per rrionth 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 termination of employment. See Note 1 - Compensated Absences

- 20 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 13: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

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

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$2,138,376.80 $ 1,993,038.61 $1,915,269.10

- 21 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 220,704.89 $

77,551.72

2,183.65

. 41,940.11 22,030.14

Total Assets

$

286,858:79 $ ====7=7=,5=5=1.=72=

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

$

33,540.18 $

105,409.50

$

138,949.68 $

18,440.78 51,110.94
8,000.00
77 551.72

$

41,940.11

22,030.14

83,938.86 $

$ 147 909.11 $

0.00 0.00

$ 286,858.79 $ =====7.,;.7,i,;;;5~51,;,;,.7~2=

See notes to the g~neral-purpose financial statements. - 22 -

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30 1 2001

JUNE 30, 2000

$

0.00 $

298,256.61 $

226,554.94

$

700,207.27

702,390.92

421,370.48

41,940.11 22,030.14

52,214.01 13,599.86

$

700,207.27 $

0.00 $ 1,064,617.78 $ ==7=1=3=7,=39==29===

$

526,192.16

88,002.21

85,544.03

468.87

$

700,207.27

$

526,192.16 $

249,813.36

139,983.17

97,550.26

242,064.47

253,982.47

468.87

8,000.00

$

916?08.67 $

601.346.09

$

41,940.11 $

52,214.01

22,030.14

13,599.86

$

o.oo $ _ _ _ _0_._00_

46.579.33

$

0.00 $

0.00 $

147 909.11 $ _ _1-"1=2=.3""'-93"-".2=0'-

$

0.00 $

- 23 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Suppoyt 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
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

146,168.00 $

1,027,109.40

976,058.51

$ 2,149,335.91 $

721,494.79 721 494.79

$

624,724.27

93,503.98 1,287.66

$

1,986.21

2,109,990.17

1,983.13

$ 2,111,976.38 $

$

37,359.53 $

721,499.04 -4.25

4.25

$

37,359.53 $

0.00

112,393.20

0.00

-10,273.90 8 430.28

$

147 909.11 $====~0.=00~

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

EXHIBIT"F"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2001

JUNE 30, 2000

$ $ 1,885,834.80
$ 1,885,834.80 $

98,663.00 $ 98,663.00 $

966,325.79 $ 2,912,944.20
976,058.51
4,855,328.50 $

825,851.69 2,730,461.43
892,025.05
4,448,338.17

$ 1,242,061.05 $

67,942.61 309,815.76
9,910.27 2,853.93

23,303.84 216,737.60

13,539.25

$ 1,886,164.31 $

$

-329.51 $

75,776.25 $ 22,886.75
98,663.00 $ 0.00 $

1,942,561.57 $
161,446.59 333,990.17
9,910.27 2,853.93 1,986.21 25,286.97 216,737.60 2,109,990.17 13,539.25
4,818,302.73 $
37,025.77 $

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
4,499,798.50
-51,460.33

329.51

$

0.00 $

0.00

333.76

0.00 $ 0.00

37,359.53 $ 112,393.20

-51,460.33 148,688.73

-10,273.90 8,430.28

14,354.35 810.45

$

0.00 $

0.00 $

147 909.11 $ ==1=1=2=,3=93=.2=0=

- 25 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

16,356.44 $

305,088.39

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

$

16 356.44 $ ====3=0=5,=0=88=.3=9=

$

4,871.94 $

777.55

2,000.00

4,310.84

300,000.00

$

6 871.94 $ . 305,088.39

-

$

9 484.50 $

0.00

$

9 484.50 $

0.00

Total Liabilities and Fund Equity

$

16 356.44 $ ===30=5=,0=8=8=.3=9=

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX
$
$ 2,682,539.37
631,468.23

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 30, 2000

0.00 $

321,444.83 $

379,248.79

2,682,539.37

1,118,203.90

631,468.23

618,360.98

$ 3,314,007.60 $

0.00 $ 3,635,452.43 $ 2,115,813.67

$

259,957.23

2,016.25

118,628.13

5,300.00

$

385,901.61

$

259,957.23 $

259,425.67

7,665.74

1,760.13

124,938.97

267,125.15

305,300.00

102,889.63

$

697,861.94 $

631,200.58

$ 2,928,105.99

$ 2,928,105.99 $ 1,470,079.08 1,729.00

0.00 $ _ _ _ _0-'--.-'--00'--

9 484.50

12,805.01

$ 2,928,105.99 $

0.00 $ 2,937,590.49 $ 1,484,613.09

$ 3,314,007.60 $

0.00 $ 3,635,452.43 $ 2,115,813.67

- 27 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Taxes other Funds
Total Revenues
EXPENDITURES
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

$ 1,152,539.10

..$

3,054.88

5,037.43

$

3,054.88 $ 1,157,576.53

$

1,250.00

49,054.39 $ 3,871,473.69

$

50,304.39 $ 3,871,473.69

$

-47,249.51 $ -2,713,897.16

$

43,929.00 $ 2,713,897.16

-1 729.00

$

43,929.00 $ 2,712,168.16

$

-3,320.51 $

12 805.01

-1,729.00 1 729.00

FUND BALANCE JUNE 30

$

9,484.50 $ = = = = =0.0=0

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

40,000.00 $ 1,246,993.00 $ 2,439,532.10

2,941,314.59

2,941,314.59 $ 2,626,080.43

120,860.44

8,651.48

137,604.23

138,075.19

$ 3,102,175.03 $ 1,255,644.48 $ 5,518,450.92 $ 2,764,155.62

$

14,465.96 $

164,171.33

7,258.15

0.00 $

15,715.96 $ 4,084,699.41
7,258.15

1,647,332.78 1,505,150.43
5,256.25

$

185,895.44 $

0.00 $ '4,107,673.52 $ 3,157,739.46

$ 2,916,279.59 $ 1,255,644.48 $ 1 410,777.40 $

-393,583.84

$ 2,757,826.16 $ 1,649,754.48

$ -1,458,252.68 $ -1,255,644.48

-2.715,626.16

-1 476 721.37

$ -1,458,252.68 $ -1,255,644.48 $

42,200.00 $

173 033.11

$ 1,458,026.91 $ 1,470,079.08

0.00 $ 0.00

1,452,977.40 $ 1,484 613.09

-220,550.73 1,705,163.82

$ 2,928,105.99 $

0.00 $ 2,937,590.49 $ 1,484,613.09

- 29 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2001 . JUNE 30, 2000

$

10,344.38 $

0.00 $

10,344.38 $

9,844.48

1,506.69

1,506.69

2,269.94

29,104.74

. 29,104.74

34,661.86

Total Assets

$

40,955.81 $

0.00 $

40,955.81 $ ====46=,7=7=6.=28=

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$

40,955.81

$

0.00 $ - - - - -0.0-0

40,955.81 $ 0.00

46,776.28 0.00

Total Fund Equity $

40,955.81 $

0.00 $

40,955.81 $ ===4=6'=7=76==28=

'--

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

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "J"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30. 2001

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30. 2001 JUNE 30, 2000

REVENUES

Taxes Other Funds

$ 658,074.59 $ 1,108,830.84 $ 1,766,905.43 $ 1,782,990.12

8 122.50

8,122.50

10 889.84

Total Revenues

$ 666,197.09 $ 1.108,830.84 $ 1,775,027.93 $ 1,793,879.96

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees
Total Expenditures

$ 310,000.00 $ 359,441.66 2,575.90

630,000.00 $ 478,830.84

940,000.00 $ 838,272.50
2,575.90

900,000.00 879,575.00
2,525.90

$ 672,017.56 $ 1.108,830.84 $ 1,780,848.40 '$ 1,782,100.90

Excess of Revenues over (under) Expenditures $

-5,820.47 $

0.00 $ -5,820.47 $ 11,779.06

FUND BALANCE JULY 1

46,776.28

0.00

46,776.28

34,997.22

FUND BALANCE JUNE 30

$ 40,955.81 $

0.00 $ 40I955.81 $====4=6!::7I=:76==28==:

See notes to the general-purpose financial statements.

- 31 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2001

EXHIBIT"K"

ASSETS Cash and Cash Equivalents

EXPENDABLE TRUST FUNDS

STUDENT

STAFF VENDING

ACHIEVEMENT RECOGNITION

ACCOUNT

FUND

TOTALS JUNE 30, 2001 JUNE 30, 2000

$

714.69 $

67.09 $

781.78 $

781.53

FUND EQUITY
Fund Balances Unreserved Undesignated

714.69 $

67.09 $

781.78 $ =======7=8=1.=53=

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

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
FIDUCIARY FUND TYPE - EXPENDABLE TRUST FUNDS YEAR ENDED JUNE 30. 2001

EXHIBIT "L"

STAFF VENDING ACCOUNT

STUDENT ACHIEVEMENT RECOGNITION
FUND

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

REVENUES Other Funds

$

233.51 $

0.00 $

233.51 . $

205.59

EXPENDITURES

Current Support Services General Administration

$

233.26 $

0.00 $

233.26 $

0.00

Excess of Rev_enues over (under) Expenditures $

0.25 $

0.00 $

0.25 $

205.59

FUND BALANCE JULY 1

714.44

67.09

781.53

575.94

FUND BALANCE JUNE 30

$

714.69 $

67.09 $

781.78 $ ===::,7~81~.5~3~

See notes to the general-purpose financial statements.

- 33 -

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agricullure, 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

N/A $ 210,551.45

(2)

N/A

722,792.59 $ 2,018,211.02 (3)

Total Child Nutrition Cluster

$ 933,344.04 $ 2,018,211.02

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

N/A

93,765.36

93,765.36

Total U. S. Department of Agriculture

$ 1,027,109.40 $ 2,111,976.38

Appalachian Regional Commission Direct Jackson County Childcare Training

23.002

$

40,975.13 $

40,975.13

Corporation for National and Community Service Pass-Through From Georgia Department of Education Learn and Serve America School and Community Based Programs

94.004

N/A $

13,383.93 $

13,383.93

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement Grant

. 84.027 . 84.173 . 84.173

N/A $ 556,597.38 $

N/A

66,603.28

N/A

14,133.92

556,926.89 (3) '66,603.28 14,133.92

Total Special Education Cluster

$

637,334.58 $

637,664.09

Other Programs

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act Title I Grants to Local Educational Agencies

. 84.010

N/A

Title II Eisenhower Professional Development

84.281

N/A

Title Ill

Technology Literacy Challenge Fund Grants

84.318

NIA

Title VI Innovative Education Program Strategies Class Size Reduction

84.298

N/A

84.340

N/A

Goals 2000

State and Local Education Systemic Improvement

Grants

84.276

N/A

Safe and Drug-Free Schools and Communities

84.186

N/A

Vocational Education - Basic Grants to States

High School Program Basic Grant

84.048

N/A

778,979.93 22,109.00 21,500.38 40,315.06 130,319.84
108,307.00 29,246.00
42,897.73

778,979.93 22,109.00 21,500.38 40,315.06 130,319.84
108,307.00 29,246.00
42,897.73

- 34 -

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Education, U. S. Department of Other Programs Pass-Through From Hall County Board of Education d/b/a Piedmont Migrant Education Agency Elementary and Secondary Education Act Title I Migrant Education
Total U.S. Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84.011

NIA $

20,466.22 $

20,466.22

$ 1,831,475.74 $ 1,831,805.25

Total Federal Financial Assistance
N/A = Not Available

$ 2,912,944.20 $ ====3,=99=8=,1==4=0=.6=9

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 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.

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

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

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the 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.

- 35-

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE . YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Community Affairs, Georgia Department of Local Assistance Grant

$

40,000.00 $

40,000.00

Education, Georgia Department of

Quality Basic Education

Direct Instructional Cost

Kindergarten Program

$

Kindergarten Program - Early l_ntervention Program

Primary Grades (1-3) Program

Primary Grades - Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category Ill

Category IV

CategoryV

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL).

Media Center Program

Staff and Professional Development

Indirect Cost

Categorical Grants

Pupil Transportation

Regular

Bus Replacement

Nursing Services

Principal Supplements

Vocational Supervisors

Education Equalization Funding Grant

Food Services

Vocational Education

Other State Programs

Apprenticeship Program

At-Risk Summer School Program

Health Insurance

Innovative Programs

Joint Evening Programs

Mentor Teachers

Pay for Performance

Preschool Handicapped Program

Remedial Summer School

Teachers' Retirement

Lottery Programs

Computers in the Classroom

Exceptional Growth-Capital Outlay

Vocational Technology Program (High School)

529,685.00 683,367.00 2,736,251.00 534,264.00 1,353,088.00 2,602,152.00 1,826,414.00 890,249.00
174,493.00 604,990.00 1,619,091.00 317,273.00
32,676.00 255,067.00 240,124.00 190.-183.00
63,004.00 436,985.00 126,818.00 ,. 2,892,414.00
882,286.00 261,985.00 113,892.00
22,079.00 36,179.00 585,854.00
$ . 146,168.00 169,207.97
40,000.00 5,601.36
328,220.40 5,000.00
112,000.00 11,247.00
162,000.00 48,636.00
5,039.24 17,331.00
104,895.00
175,000.00

1,246,993.00

529,685.00 683,367.00 2,736,251.00 534,264.00 1,353,088.00 2,602,152.00 1,826,414.00 890,249.00
174,493.00 604,990.00 1,619,091.00 317,273.00
32,676.00 255,067.00 240,124.00 190,183.00
63,004.00 436,985.00 126,818.00 2,892,414.00
882,286.00 261,985.00 113,892.00
22,079.00 36,179.00 585,854.00 146,168.00 169,207.97
40,000.00 5,601.36
328,220.40 5,000.00
112,000.00 11,247.00
162,000.00 48,636.00 5,039.24 17,331.00
104,895.00 1,246,993.00
175,000.00

Georgia State Financing and Investment Commission Reimbursement on Construction Projects

1,152,539.10

1,152,539.10

Office of School Readiness Pre-Kindergarten Program

441,599.79

441,599.79

Office of Treasury and Fiscal Services Public School Employees Retirement

76,686.00

76,686.00

- 36-

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2001

SCHEDULE "2"

AGENCY/FUNDING
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

74,672.00

$ ----'-9""8._66"""3'-.o'""o'"""

$

74,672.00

98,663.00

$ 21,066,503.97 $ 966.325.79 $ 2,439,532.10 $ 24,472,361.86

See notes to the general-purpose financial statements.

- 37 -

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30. 2001

SCHEDULE "3"

PROJECT
Payment of portion of payments, including principal and interest due on Series 1993 and 1994 Bonds
Construction of two new elementary schools, parking area and grounds, including acquisition of real estate, furnishings, equipment and fixtures
Construction of additional classrooms. instructional and support space, remodeling and renovating existing classrooms, 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 (3)

$ 9,024,203.00 $ 9,024,203.00 $ 1,108,830.84 $ 2,633,311.31

12,000,000.00 12,000,000.00 4,004,567.78 3,715,918.11

9,000,000.00

9,000,000.00

52,801.35 2,456,620.94

PROJECT STATUS Ongoing Ongoing
Ongoing

$ 30,024,203.00 $ 30,024,203.00 $ 5,166,199.97 $ 8,805,850.36

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

(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion.

(3) The voters of 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 School District has incurred interest to provide advance funding for the above projects as follows:

Prior Years

$ 148,588.03

Current Year

0.00

Total

$ ' 148,588.03

See notes to the general-purpose financial statements.

39-

JACKSON COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES. BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

Category I

Category II

Category Ill

Category IV

Category V

Gifted Student - Category VI

Remedial Education Program

Alternative Education Program

English Speakers of Other Languages (ESOL)

625,935.00 $ 807,543.00 3,233,462.00 631,346.00 1,598,960.00 3,074,995.00 2,158,296.00 1,052,018.00 3,247,961.00
301,416.00 283,756.00 224,741.00.
74,454.00

1;061,134.59 $ 509,732.25
3,213,087.59 814,199.43
1,962,059.64 3;260,454.30 2,706,285.82
958,770.83
10,501.86 559,135.29 2,103,681.50
75,845.56 45,797.12 160,740.77 215,483.09 260,712.27 82,197.89

40,649.48 $ 19,810.48 175,689.53 12,219.57 87,652.80 109,031.70 152,935.28 121,970.87
1,990.50 25,537.39 61,191.80 4,937.96
, 91.73 14,527.67 2,221.49 2,829.06
1,818.10

1,101,784.07 529,542.73
3,388,777.12 826,419.00
2,049,712.44 3,369,486.00 2,859,221.10 1,080,741.70
12,492.36 . 584,672.68 2,164,873.30
80,783.52 45,888.85 175,268.44 217,704.58 263,541.33. 84,015.99

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

17,314,883.00 $ 17,999,819.80 $ 835,105.41 $ 18,834,925.21

Media Center Program Staff and Professional Development

516,390.00 149,863.00

666,196.50 65,367.41

243,202.63 99,724.41

909,399.13 165,091.82

TOTAL QBE FORMULA FUNDS

$ 17,981,136.00 $ 18,731,383.71 $ 1,178,032.45 $ 19,909,416.16

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

See notes to the general-purpose financial statements.

-40

JACKSON COUNTY BOARD OF.EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001

SCHEDULE "5"

SITE
Jackson County High School Regional Evening Alternative School East Jackson Middle School Jackson County Elementary School West Jackson Middle School Benton Elementary School Maysville Elementary School North Jackson Elementary School South Jackson Elementary School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

3,994,022.00 $

4,538,020.17

196,297.00

286,369.24

1,934,353.00

2,180,168.41

2,356,295.00

2,501,730.60

2,171,323.00

2,109,461.45

2,185,697.00

2,420,828.77

1,247,071.00

1,398,379.94

1,221,293.00

1,371,177.76

1,783,791.00

2,026,677.24

224,741.00

2,111.63

$

17,314,883.00 $ 18,834,925.21

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

1ussE1.1. \\'. H1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS

2.'i.:I W:.isliinl,!!011 S1rccl. S.W.. Sui1c 214

A1i:tnt:.i. Ciwrl,!i:.i 3o:n--t-X--IO(i

April 2, 2002

/

Honor:able Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintctident 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, 2001, and have issued our report thereon dated April 2, 2002. 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 auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the 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 oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Jackson County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Jackson County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6781-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level 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 e;:mployees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6781-01-01 to be a material weakness.
This report is intended solely for the information and use of management, 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,
~~W~
RWH:as 2001YB-41

fossEu. \V. HtNTor-
STATE AUDITOR
i404 J 656217 4

DEPARTMENT OF AUDITS AND ACCOUNTS
2:'i4 Washington Str<.:l'l. S.W.. Suite 214 Atlanta. (ieorgia 30.,.,4-X400
April 2, 2002

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 CIRCULAR A-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 of its major Federal programs for the year ended June 30, 2001. Jackson County Board of Education's major Federal programs are identified in the Summary of Auditor's.Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Jackson County Board of Education's management. 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 auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Jackson County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Jackson County Board of Education's compliance with those requirements.

2001SA-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 ofits major Federal programs for the year ended June 30, 2001.
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 performing 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 determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, 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:as 2001SA-10

State Auditor

SECTION ill AUDITEE'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, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6781-99-0 I FS-6781-00-0 I FS-6781-00-02

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

CORRECTIVE ACTION/RESPONSES

EMPLOYEE COMPENSATION Salary Overpayment Finding Control Number: FS-6781-00-01

The Jackson County Board ofEducation overpaid a former employee $5,669.40, as a result of a breakdown in controls. The incident was self-reported to the audit team by the Superintendent and efforts have been implemented to recover the overpayment amount. A written statement was obtained from the former employee establishing a schedule for payment. During the subsequent period, a total of $1,000.00 was recovered. The Superintendent has been in contact with the former employee and efforts are still being made to recover the remaining portion of the overpayment.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding C01;itrol Number: FS-6781-00-02

The Jackson County Board of Education has previously chosen not to maintain a systemwide General Fixed Assets Account Group because financial assets and personnel were not available to establish and maintain accounting control and procedures as required. In the subsequent period, Jackson County Board of Education hired a firm to take an inventory and is making arrangements to be in full compliance with GASB 34.

SECTION IV FINDINGS AND QUESTIONED COSTS

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the 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 a financial sta(ement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit 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 of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the 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 .51 0{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) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies 84.027 Individuals with Disabilities Education Act - Part B - Special Education Flow Through 84.1 73 Individuals with Disabilities Education Act - Part B - Special Education Preschool 84.173 Individuals with Disabilities Education Act - Part B - Special Education Capacity Building Improvement Grant
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
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JACKSON'COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200L

I SUMMARY OF AUDITOR'S RESULTS

9. Low Risk Auditee

The Jackson'County Board of Education qualified as a low risk auditee based on awaiver

granted by the U.S. Department of Education:



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-ql-01

The Jackson County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the . General Fixed Assets Account Group.

III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

No matters were reported.

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