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

..,, , .
'' ,:

:~ :, :\
1 .' ,

,','' l

,.
I

" r

. , .,,..'

. ',,'
. '

j-

... :,

~

/

'.'
_ '

,

';

., .i ,_ ~,; ~

J

....

'I::,.,__

.. -.', , ,,'

1..,. I I'

,.,-- ,'

, . \ ' f
.

r,:

; ,:
t: ' . ' ..
r > ,

'1"'

' :

.. ,,,.

- ',..,_

r',.,' .,.- '
... -.,:.

,l' r '!,

. , . : ......
. . I '
,'

,, .
.,. _.t
.. '

'' f ,,..! I
.. ...(, . . . -

, .:.-

I 1 ,,,',

.;:. :,.
..'. . .... -- . ,, ... :

.....'

I

,

. _.,..I,',

,

,. .... ,.

,

,,.
.... '-....
1..::: , ,
''

....- :{ .
'.,
,,, ,_ \,

.. -.

... . ,I' '
. ,,
., l
. .', .,
".

..,,,
:. '.-. \/'I\
,,
' ' . I. !

,,,
, , ,r,..
' '

-.
' ''

JACKSON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

AND EXPENDABLE TRUST FUNDS

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

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 FUND

G

COMBINING BALANCE SHEET

26

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

30

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

31

FIDUCIARY FUND TYPES

K

COMBINING BALANCE SHEET

32

L

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

-

EXPENDABLE TRUST FUNDS

33

JACKSON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

34

2 SCHEDULE OF STATE REVENUE

36

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

37

ALLOTMENTS AND EXPENDITIJRES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

38

5

BY SITE

39

SECTION fl
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 O:MB 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 COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ!-hmgton Street. S W., Sullc 214 Atlanta, Georgia 30334-8400
March 24, 2003

Honorable Sonny Perdue, 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, 2002, 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.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain 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 opm10n.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-13

* 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.

* For fiscal year 2002, the School District changed its method of accounting for the final
two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements r~flecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures be recorded when incurred, rather than when funds are received or disbursed.

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

In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Jackson County Board of Education as ofJune 30, 2002, and the results ofits 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 March 24, 2003, 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.

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

2002ARL-13

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 effects ofthe matters referred to in the third 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,
M .... OQ. ~-~
Ru ell W. Hinton
RWH:gp 2002ARL-13

JACKSON COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Consumable Supphes Food Donated CommodItIes Purchased Food
Amount Available m Debt SeMce 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

$ 1,335,059 31

434,462.50

$ 1,319,201.71

3,492,104 53 $ 480,241 65

594,156 32

17,316.00

28,030 68 23,130 35

$ 5,2781942.34 $

531i402 68 $ 1,913,358 03

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Short-Tenn Debt Expired Grant Balances Payable Contracts Payable Reta1nages Payable Deferred Revenue Capital Lease Agreements General ObhgatIon Bonds Payable
Total Llab1hlles
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Consumable Supplies Food Donated Commodmes Purchased Food For SPLOST ProJects Unreserved Undes1gnated
Total Fund Equity

$ $ 1,653,852 23
2,690,913 34

76,898 27 $ 91,883 08 230,981 19
2,149.26

253,394 24 1,075 10
715,164 03 314,605.32

$ 4,344,765 57 $ 401 911.80 $ 1,284,238 69

$

17,316 00

$

28,030 68

23,130 35

$

628,298 09

916,860 77

78,329.85

821 25

$

934,176.77 $

129,490 88 $

629,119.34

Total Liab1lit1es and Fund Equity

$ 5,2781942 34 $

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

-2 -

531!402.68 $ 1,913,358.03

EXHIBIT "A"

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

$

4,05612 $

889 23

297.13

27,446 30

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum On~)

JUNE 30, 2002

JUNE 30, 2001

$ 1,340,004.66 $ 1,177,942.11

1,753,961 34

10,608,780.48

4,593,948 80

2,002,897.02

$

31,799.55

17,316.00
28,030 68 23,130 35
31,799 55

10,322.00
41,94011 22,030 14
40,955 81

15,833,200 45 654,222 07

15,833,200 45 654,222 07

16,804,044 19 47 161 23

$

31 799.55 $

88923 $ 16,5191222 07 $ 24,275,613 90 $ 30,756,073.09

$

330,292 51 $

227,935 55

1,746,810.41

1,249,604.15

2,921,894.53

242,064 47

4,900,000 00

2,149 26

468 87

715,164 03

124,938 97

314,605 32

305,300 00

8,000 00

$

654,222 07

654,222 07

47,161 23

15,865,000 00

15,865,000 00

16,845,000 00

$ 16,519,222 07 $ 22,550,138.13 $ 23,950,473.24

$

31,799 55

0 00 $

$

31,799 55 $

$

31 799.55 $

889 23 889 23

$

62,200 06

$

31,799 55

40,955 81

17,316.00

10,322 00

28,030 68 23,130 35 628,298.09

41,940.11 22,030 14 2,928,105 99

996,901 10

3.700,045.74

$ 1725475 77 $ 6,805,599 85

889 23 $ 16,519,222 07 $ 241275,613 90 $ 30,7561073 09

-3 -

JACKSON COUNTY BOARD OF ED!,!CATION COMBINED STATEMENT OF REVENUES, EXPENDITURE AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUT EUNDS YEAR ENDED JUNE 30, 2002

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 Admin1strat1on 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
Pnnapal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USE}
Capital Leases 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
F!JND l;!ALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commodities Purchased Food

GENERAL FUND

GOVERNMENTAL FUND

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 24,420,646 41 $
13,657,18093 508,796 77
$ 38,586,624 11 $

908,195 11 3,205,621 31
$ 1,044,581 47
5, 158,397 89 $

2,595,415 91 75,36565
2,670,781.56

$ 27,146,712 24 $
1,679,303 31 823,621 43
1,218,482 97 650,857 55
3,000,885 52 337,291 30
3,835,007 59 1,977,91669
124,323 49 351,033 71 96,77868 232,12312 389,014 76
214,994 25 42,89694 812 95
$ 42,122,056 50 $
$ -3,535,432 39 $

2,044,620 49
170,162 68 377,247 45
2,674.50 2,575 00

47,224 91
187,534 90 2,332,915 64
24,032 94 $

4,985,079.69

5,188,988 51 $ -30,590.62 $

4,985,079 69 -2,314,29813

$

822,055.09

$

-30,808 59

$

791,246 50 $

$ -2,744, 185.89 $ 3,678,362.66

24,981 61 $

5,826 98

24,981 61 $

5,826 98

-5,609 01 $ 147,909 11

-2,308,471 15 2,937,590 49

-13,909 43 1 100 21

FUND BALANCE JUNE 30

$

934176.77 $

129,490 88 $======6=2=9=,1=19====34=

The notes to the general-purpose finane1al statements are an integral part of this statement -4-

EXHIBIT"B"

TYPES DEBT
SERVICE FUND

TOTAL

FIDUCIARY FUND TYPE EXPENDABLE TRUST FUNDS

TOTALS

{Memorandum On!}'.}

YEAR ENDED

JUNE 301 2002

JUNE 30, 2001

$ 25,328,841 52

3,205,621.31

_$ 1,765,189.92

18,017,786 76

2 246 32

1,630,990.21 $

$ 1,767,436.24 $ 48,183,239 80 $

$ 107 45

25,328,841 52 $ 3,205,621 31 18,017,786.76 1,631,097.66

24,472,361.86 2,912,944.20
16,611,901.48 1,740,381 71

107.45 $ 48,183,347 25 $ 45,737,589 25

$ 29, 191,332 73 $

1,849,465 99 1,200,868 88 1,218,482 97
653,532 05 3,003,460 52
337,291.30 3,835,007 59 2,025, 141 60
124,323 49 538,568 61 2,429,694.32 256,156 06 5,374,094 45

$

980,000 00

793,927 50

2,665 00

1,194,994.25 836,82444 3 477 95

$ 1,776,592.50 $ 54,072,717 20 $

$

-9,156 26 $ -5,889,477 40 $

$

822,055 09

30,808 59

-30,808 59

$

822,055 09

$

-9, 156 26 $ -5,067,422.31 $

40,955 81

6,804,818.07

-13,909 43 1 100 21

$

31,799.55 $ 1,724,586 54 $

000 $ 29,191,332.73 $ 23,961,302 85

1,849,465.99 1,200,868 88 1,218,482.97
653,532 05 3,003,460 52
337,291.30 3,835,007.59 2,025,141 60
124,323 49 538,568 61 2,429,694 32 256,156 06 5,374,094 45

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

1,194,994 25 836,824 44 3 477 95

942,465.85 838,365.45
4 177.80

0.00 $ 54,072,717 20 $ 44,613,635 68

107 45 $ -5,889,369.95 $ 1,123,953 57

$

822,055 09

30,808 59 $

42,533 76

-30,808 59

-42,533 76

$

822,055 09 $

000

107 45 $ 781 78

-5,067,314.86 $ 6,805,599 85

1,123,953 57 5,683,489 90

-13,90943 1 100 21

-10,273 90 8430 28

889 23 $ 1,725,475.77 $ 6,8051599.85

-5-

JACKSON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INON-GAAP BASIS\ GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 21,015,253 84 $ 24,420,646 41

12,919,113 93 536,000 00

13,657,180 93 508 796 77

Total Revenues

$ 34,470,367 77 $ 38,586,624 11

EXeENDITUBES

Current lnstructJon Support Services Pupil Services Improvement of Instructional Serv1ces Educa!lonal Media ServlC8s General Adm1mstrallon School Adm1mstrat1on Business Adm1mstrat1on Mamteriance and Operallon of Plant Student Transportation ServlC8s Central Support Serv1ces Other Support S81V1C8s Food ServlC8S Operalion Community Services Operations
Capital Outlay Debt Service

s $ 23,566,870 10

27,146,712 24

1,614,056 81 872,018 66
1,134,201 23 702,355 43
2,814,941 94 393,556 62
3,206,322 01 1,849,369 14
816,226 53 4,888 00 50,617 45
258,834 61 69,000 00 80000

1,679,303 31 823,621 43
1,218,482 97 650,857 55
3,000,885 52 337,291 30
3,835,007 59 1,977,916 69
124,323 49 351,033 71
96,778 68 232,123 12 389,014 76 258 704 14

Total Expenditures

$ 37,354,058 53 $ 42,122,056 50

Excess of Revenues over (under) Expenditures

$ -2,883,690 76 $ -3,535,432 39

OTHER FINANCJNl:z SOURCES {USES\
Other Sources Other Uses

$

4,000 00 $ 822,055.09

-69,850 50

-30,808 59

Total Other F1riancmg Sources (Uses)

$ -65,850 50 $ 791 246 50

Excess of Revenues and Other Fmancrng Sources over (under) Expenditures and Other Fmancrng Uses $ -2,949,541 26 $ -2,744, 185 89

FUND BALANCE JUbY 1 2001

3,416,804 30

3,678,362 66

Ad1ustments Food Inventory- Net Change In Penod
Donated Commodrt1es Purchased Food

FUND BALANCE JUNE 30 2002

$ 467 263 04 $ 934 176 77

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s $ 921,567 41

908,195 11

3,066,356 22

3,205,621 31

1,083,668 80 1,044,581 47

$ 5,071,592 43 $ 5,158,397 89

s 2,043,623 68 $ 2,044,620 49

193,549 07 265,376 58

170,162 68 377,247 45

4,33900 2,500 00

2,674 50 2,575 00

26,876 00
221,200 00 2,591,78862
23,880 12

47,224 91
187,534 90 2,332,915 64
24,032 94

$ 5,373,133 07 $ 5,188,988 51 $ -30154064 $ -30,590 62

$ 292,273 78 $ 24,981 61

$ 292,273 78 $ 24 981 61

$

-9,266 86 $

-5,609 01

-80, 100 28

147,909 11

217,961 40

-13,909 43 1 100 21

$ 1281594 26 $ 129 490 88

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

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: 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 are 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 the 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, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Edu<;ation 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 made 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 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 availab}e_spendable resources, are reported in the General 9_n_g-Term Debt Account_Group.

-9-

---------------------------------------

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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. Property taxes, sales taxes and interest are considered to be 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 donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available.
The net effect ofthe above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. 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 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.

- 10-

J. '

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The budget process 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 ofthe 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 ofdeposit) 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 ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:

( 1) Obligations issued by the State of Georgia or by other states,

(2) Obligations issued by the United States government,

(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,

(4) Obligations of any corporation of the United States government,

(5) Prime banker's acceptances,

.

-

(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of

Treasury and Fiscal Services,

- 11 -

-------------------- ------- - --------

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 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 2001 tax digest year (calendar year) on October 10, 2001 (levy date). Taxes were due on December 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The 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, 2002 for maintenance and operations amounted to $12,965,218.20 and for school bonds amounted to $687,260.98.

Tax millage rates levied for the 2001 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

15.50 mills ~ mills

16.28 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $3,644,436.91 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

FOOD INVENTORIES Inventopes of donated food_ commoditi~s used in the preparation of meals are repC!rted on the Combinea 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

- 12 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.
CONSUMABLE SUPPLIES INVENTORY 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:
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 of expenditures in the fund that is reimburse~.

- 13 -

- - - - - - - - - - - - - - - - ---- -----

JACKSON COUNfY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.
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. 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 of dev~lopment authoritie~ created by the laws of the State of Georgia, and
- 14 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS

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

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $2,288,840.76. 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, 2002, as follows:

Risk Category

Bank Balance

1

$ 204,557.01

2

2,084,283.75

3

0.00

Total

$ 2,288,840.76

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $1,753,961.34 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:

- 15 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 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 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 I and Fund 6 are directed toward short-term instruments such as U. S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase
agreements. The weighted average maturity of Georgia Fund I may not exceed 60 days. The
weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0.75 years.
Note 3: NON-MONETARY TRANSACTIONS
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions 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 acts of God. The School District has not experien_~ed 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, 2002

Note 4: RISK MANAGEMENT

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the last two fiscal years.

The School District 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 has entered into various lease agreements as lessee for computer equipment and copiers. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their 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%

$ 3,330,000.00 685,000.00
11.850,000.00

$15.865.000.00

Voters have authorized $20,000,000.00 in general obligation debt for the funding of capital outlay projects which was not issued as of June 30, 2002.

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

- 17 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

mNE 30. 2002

Note 5: GENERAL LONG-TERM DEBT

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2001

$

0.00 $16,845,000.00 $16,845,000.00

Retroactive Restatement of Prior Year Balances

47,161.23

47,161.23

Balance July 1, 2001 Restated

$ 47,161.23 $16,845,000.00 $16,892,161.23

Additions Capital Leases

822,055.09

822,055.09

Deductions Debt Retired Payments

214,994.25

980,000.00

980,000.00 , 214,994.25

Balance June 30, 2002

$ 654.222.07 $15.865.000.00 $16,519,222.07

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

Fiscal Year ' Ended June 30

Capital Leases

General Obligation
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2014

$ 303,522.84

$ 303,522.84

302,624.40 $ 1,025,000.00 1,327,624.40

75,207.76 1,075,000.00 1,150,207.76

27,363.04 1,125,000.00 1,152,363.04

3,242.75 1,175,000.00 1,178,242.75

6,720,000.00 6,720,000.00

4.745.000.00 4.745.000.00

Total Principal and Interest $ 711,960.79 $15.865.000.00 $16.576.960.79

Deduct: Imputed Interest

57,738.72

Net Present Value of Future Minimum Lease Payments $ 654.222.07

- 18 -

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 6: SHORT-TERM DEBT

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

Begmnmg Balance

Additions

Payments

Ending Balance

Temporary Loans

$4,200,000.00 $====-"o-,o=o $4,200,000.00 $===="0,,,,..0,,,,,,0

Note 7: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1998, the School District defeased certain general obligation bonds by placing the proceeds ofnew bonds in an irrevocable trust to provide for all future debt service payments ~m 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, 2002, $11,055,000.00 of bonds are outstanding and are considered defeased.

Note 8: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $412,462.11 for health insurance and retirement contributions paid on the School District's behalfby 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 $349,839.11

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 $62,623.00

Note 9: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002:

- 19 -

-------~ -----------

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 9: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Benton Elementary East Jackson Elementary West Jackson Elementary

$ 421,181.45 2,937,657.00 2,478,618.00

$ 5.837.456.45

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

Note 10: CONTINGENT LIABILITIES

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

Note 11: ACCUMULATED EMPLOYEES' LEAVE

The School District'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 termination of employment. See Note 1 - Compensated Absences

Note 12: 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.

- 20-

JACKSON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

_ JUNE 30, 2002 _

Note 12: RETIREMENT PLANS

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 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 1,942,528.40 $2,138,376.80 $ 1,993,038.61

- 21 -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

158,084.20 $

68,469.57

895.47

10,285.98

28,030.68 23.130.35

Total Assets

$

210.140 70 $ ===7=8=7a::55=.5=5=

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 Commod1t1es Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

19,235.07 $

22,658.79

61,414.75

54,47116

1,625.60

$

so1649.s2 $

78,755.55

$

28,030.68

23,130.35

78.329.85 $

0.00

$

129,490.88 $

0.00

Total Liab1lit1es and Fund Equity

$

210 140.70 $ ====7=8=7,=55=.5=5==

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

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

226,553.77 $

298,256.61

$

469,060.20

480,241.65

702,390.92

28,03068 23,130.35

41,940.11 22,030.14

$

469,060.20 $

757,956.45 $ 1,064,617.78

$

303,452.04 $

303,452.04 $

526,192.16

49,989.22

91,883.08

139,983.17

115,095 28

230,981.19

242,064.47

523.66

2,149.26

468.87

8,000 00

$

469,060.20 $

628,465.57 $

916,708.67

$

$ ____o___o_o"'-

$

000 $

28,030.68 $ 23,130.35

41,940.11 22,030.14

78,329.85

83,938.86

129,490 88 $ _ _1_4_7.._9_09_._11_

$

469,060.20 $

757,956 45 $ 1,064,617.78

- 23 -

JACKSON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School 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

$

151,840.00 $

1,130,885.16

1,044,581.47

$ 2,327,306.63 $

756,35511 756,355.11

$

624,743.11

92,635.01 25,081.86

$ 2,332,915.64

13,895.13

$ 2,332,915.64 $

$

-5,609.01 $

756,355.11 0.00

$

-5,609.01 $

0.00

147,909.11

0.00

-13,909.43 1,100.21

FUND BALANCE JUNE 30
See notes to the general-purpose financial statements. - 24 -

-$

129,490.sa $ ===========o=.o=o=

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 301 2001

$

908,195.11 $

966,325.79

$ 2,074,736.15

3,205,621.31

2,912,944.20

1,044,581.47

976,058.51

$ 2,074,736.15 $ 5,158,397.89 $ 4,855,328.50

$ 1,419,877.38 $ 2,044,620.49 $ 1,942,561.57

77,527.67 352,165.59
2,674.50 2,575.00
33,329.78 187,534.90
24,032.94

170,162.68 377,247.45
2,674.50 2,575.00
47,224.91 187,534.90 2,332,915 64
24,032.94

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

$ 2,099,717.76 $ 5,188,988.51 $ 4,818,302.73

$

-24,981 61 $

-30,590.62 $

37,025.77

24,981.61

24,981.61

333 76

$

0.00 $

-5,609.01 $

37,359.53

0.00

147,909.11

112,393.20

-13,909.43 1 100.21

-10,273 90 8,430.28

$

0.00 $

129,490.88 $ ==1=4=7=,9=09==11==

- 25 -

- - - - - - - - - - - - - - - - - - - - - - - ------- --- --- ---
JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2002

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total L1ab1hties FUND EQUITY
Fund Balances Reserved For SPLOST ProJects Unreserved Undesignated Total Fund Equity

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

821.19 $

0.06

$

s 821.19 =====o=.06===

$

821.19 $ _ _ _ _ _0__._0__6_

$

821.19 $ _ _ _ _ _o__._0__6_

Total Liabilities and Fund Equity

$

821.19 $ ===-===o=.06===

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 301 2002

JUNE 301 2001

$

821.25 $

321,444.83

$ 1,319,201.71

1,319,201.71

2,682,539.37

594,156.32

594,156.32

631,468.23

$ 1,913,358.03 $ 1.914.179.28 $ 3.635.452.43

$

254,215.49 $

254,215.49 $

1,075.10

1,075.10

715,164.03

715,164 03

314,605.32

314,605.32

$ 1,285,059.94 $ 1,285,059 94 $

259,957.23 7,665.74
124,938.97 305,300.00
697,861.94

$

628,298.09 $

628,298.09 $ 2,928,105.99

0.00

821.25

9.484.50

$

628,298.09 $

629,119.34 $ 2,937,590.49

$ 1,913,358 03 $ 1,914.179.28 $ 3,635,452.43

- 27 -

-------- ---------

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

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

$

321.19 $

0.56

$

321.19 $

0.56

$

13,561.48 $

679,617 44

71,632.69

$

13,561.48 $

751,250.13

$

-13,240.29 $

-751,249.57

$

5,826.98 $

751,249 63

-1,250.00

$

4,576.98 $

751,249 63

$

-8,663.31 $

9,484.50

0.06 0.00

FUND BALANCE JUNE 30

$

821.19 $====0=.0=6=

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ 2,439,532.10

$ 2,595,415.91 $ 2,595,415.91

2,941,314.59

75,043.90

75,365.65

137,604.23

$ 2,6701459.81 $ 2,670,781.56 $ 5,518,450.92

$

68,306.50 $

68,306.50 $

15,715 96

4,151,961.58

4,845,140.50

4,084,699 41

71,632.69

7,258.15

$ 4,220,268 08 $ 4,985,079.69 $ 4,107,673.52
o, $ -1,549,808.27 $ -2,314,298 13 $ 1,41 777.40

$

757,076.61 $ 2,757,826.16

$

-749,999 63

-751,249.63

-2,715,626.16

$

-749,999.63 $

5,826.98 $

42,200.00

$ -2,299,807.90 $ -2,308,471.15 $

2,928,105.99

2,937,590 49

1,452,977.40 1,484,613.09

$

628,298.09 $

629,11934 $ 2,937,590.49

- 29 -

- - - - - - - - - - - - - - - - - - - - - - - - - -

---------

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

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Debt Service
Unreserved Undes1gnated
Total Fund Equity

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

4,056 12 $

0.00 $

4,056.12 $

10,344 38

297.13

297.13

1,506.69

27 446.30

27 446.30

29104.74

$ 3179955 $

000 $

31,799.55 $===4=0,=9=55=8.,,1.,.

$ 31,799 55

$

000 $ _ _ _ _0~.0~0-

31,799 55 $ 0 00

40,955.81 000

$ 3179955 $

000 $

31 r799.55 $ ===4=0'=95=5=8..,1_

See notes to the general-purpose financial statements.

-30-

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

EXHIBIT "J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Pnnc1pal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 301 2002 JUNE 301 2001

$ 716,168 92 $ 1,049,021 00 $ 1,765,189.92 $ 1,766,905 43

2,246.32

2,246.32

8,122 50

$ 718,415 24 $ 1,049,021 00 $ 1,767,436 24 $ 1,775,027.93

$ 325,000 00 $ 399,906 50 2,66500

655,000.00 $ 394,021 00

980,00000 $ 793,927.50
2,665 00

940,00000 838,272 50
2,575 90

$ 727,571.50 $ 1,049,021 00 $ 1,776,592 50 $ 1,780,848 40

$ -9,156 26 $

000 $

-9,156 26 $

-5,820 47

40,955.81

000

40,955 81

46,776 28

FUND BALANCE JUNE 30

$ 31,799 55 $

0 00 $

31,799 55 $ ==4=0=,9=55===81=

See notes to the general-purpose financial statements

- 31 -

- - - - - - - - - - - - - - - - - - - - - - - --- ------------------

JACKSON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET FIDUCIARY FUND TYPES JUNE 30, 2002

EXHIBIT"K"

ASSETS Cash and Cash Equivalents
FUND EQUITY Fund Balances
Unreserved UndesIgnated

EXPENDABLE TRUST FUNDS

STUDENT

STAFF

ACHIEVEMENT

VENDING RECOGNITION

ACCOUNT

FUND

TOTALS JUNE 301 2002 JUNE 30, 2001

$

67 09 $

82214 $

889 23 $ =====7=81====78=

$

67 09 $

82214 $

889.23 $ ===7=81=7=8-

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. 2002

EXHIBIT "L"

REVENUES
Other Funds EXPENDITURES
Current Support Services General Adm1mstrabon
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

STAFF VENDING ACCOUNT

STUDENT ACHIEVEMENT RECOGNmON
FUND

TOTALS YEAR ENDED JUNE 301 2002 JUNE 30, 2001

$

000 $

107 45 $

107 45 $

233 51

$

000 $

$

000 $

6709

0.00 $ 107.45 $ 71469

000 $ 107 45 $ 781.78

233.26 025
781 53

FUND BALANCE JUNE 30

$

6709 $

82214 $

889.23 $ ===-=====7=81=7=8=

See notes to the general-purpose finanoal statements

- 33-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture, U. S Department of Child Nutribon Cluster Pass-Through From Georgia Department of Education Food and Nutrlbon Program Food SeMces School Breakfast Program National School Lunch Program
Total Child Nutnllon Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutnllon Program Food Dlstnbut1on Program (1)
Total U S. Department of Agnculture
Appalachian Regional Commission Direct Jackson County Childcare Training
Corporation for Natlonal and Community Service Pass-Tlvough From Georgia Department of Education
Learn and Serve Amenca
School and Community Based Programs
Education, U S. Department of Speaal Education Cluster Pass-Through From Georgia Department of Educabon
lnd1vtduals wrth Disab1hbes Education Act
Part B - Speaal Education Flow Through Preschool Special Education Capacity Bu11dmg Improvement Grant
Total Speaal Educallon Cluster
Other Programs Pass-Through From Georgia Department of Educabon Elementary and Secondary Education Act Title I Accountab1hty Grants Grants to Local Educational Agenaes TIiie II Eisenhower Professional Development Title VI lnnovabve Educabon Program Strategies Class Size Reduction Goals2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE INPERIOO -

EXPENDITURES INPERlOD

. 10553 . 10 555

N/A $ 222,063 91

(2)

NIA

805,42147 $ 2,229,515 86 (3)

$ 1,027,485 38 $ 2,229,515.86

10.550 23002

NIA

103,399.78

103,399.78

$ 1,130,885 16 $ 2,332,915 64

s 38,75513 $

38,755 13

94004

N/A

$

5,702 63 $

5,702 63

84027 84.173
84.027

NIA

$ 615,681 77 $

NIA

67,958 59

NIA

15 164.58

$ 698,804 94 $

615,681 77 67,958.59
15164 58
698,804 94

84.348

NIA

84 010

NIA

84 281

NIA

84298

NIA

84.340

NIA

84.276

NIA

84.186

NIA

84.048

NIA

86,498.78 819,367 06
30,89700 29,95667 130,735 96
100,000.00 19,631 06
55,232 00

86,498.78 819,367.06
30,897.00 29,956 67 130,735.96
100,000 00 19,631 06
55,232 00

- 34-

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

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 Ad Tltlel Migrant Education
Total U. S Department of Education
Defense, U S Department of DIred Department of the Army R O T C Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84 011

NIA

$ 22,786 00 $

22,786.00

$ 1,993,90947 $ 1,993,90947

$ 36,368.92 $

61,350.53 (3)

Total Federal Finanaal Assistance

NIA= Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Dlstnbullon Program represents the Federally assigned value of nonmonetary assistance for donated commodities recelVed and/or consumed by the system dunng the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are mduded In the 2002 National School Lunch Program
(3) Expenditures for this program Include State, and/or Other Funds Expenditures are not maintained by fund source.

Ma1or Programs are Identified by an asterisk (*) m front of the CFDA number.

The School Distnd did not provide Federal Assistance to any Subreaplent

The accompanying schedule of expenditures of Federal awards mdudes the Federal grant acbvrty of the Jackson County Board of Education and Is presented on the modified accrual basis of accounting which is the basJS of accounting used m the presentation of the general-purpose financial statements

4,432,633 40

See notes to the general-purpose finanaal statements

- 35-

- - - - - - -- - ----- -

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

SCHEDULE"2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Dtrect Instructional Cost Kindergarten Program Kindergarten Program - Early lntervenbon Program Pnrnary Grades (1-3) Program Pnmary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Program - Early Intervention Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sablht1es Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development 20-Days Additional Instruction Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Sennces Pnnopal Supplements Vocational SupeMSOrs Deferred Summer Salanes (Current Year) Educabon Equalization Funding Grant Food Services Vocaltonal Education Other State Programs Alternative Program Apprenticeship Program Health Insurance Jomt Evemng Programs Mentor Teachers Preschool Handicapped Program Statewide K-3 Readmg Program Statewide 4-8 After School Program Lottery Programs Ass1st1ve Technology Computers m the Classroom
Office of School Readmess Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 653,902 00 735,934 00
2,634,756 00 575,847 00
1,443,182 00 300,944 00
2,626,015 00 1,811,158 00
902,748 00
225,869 00 599,077 00 1,584,718 00 327,249 00
52,654 00 239,804 00
59,443 00 75,215 00 446,410 00 89,684 00 133,156 00 3,065,592 00

$

653,902 00

735,934 00

2,634,756 00

575,847 00

1,443,182 00

300,944 00

2,626,015 00

1,811,158 00

902,748.00

225,869 00 599,077 00 1,584,718 00 327,249 00
52,654 00 239,804 00
59,443 00 75,215 00 446,410 00 89,684 00 133,156 00 3,065,592 00

934,867 00 276,446 00
20,000 00 114,449 00
22,296 00 38,410 00 2,668,168 00 564,142 00
254,945 56

$ 151,840 00

202,034 00 29,999 90
349,839 11 112,000 00
5,661 00 61,969 00 68,550 24 50,889 60

11,865.29 126,850 00

934,867 00 276,446 00
20,00000 114,449 00
22,296 00 38,410 00 2,668,168 00 564,142 00 151,840 00 254,945 56
202,034 00 29,999 90
349,839 11 112,000 00
5,661 00 61,969 00 68,550 24 50,88960
11,86529 126,850 00

617,639 82

617,639 82

62,623 00

62,623 00

See notes to the general-purpose finanaal statements

$ 24,420,646.41 $ 908,195 11 $ 25,3281841 52 . 36.

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

SCHEDULE "3"

PROJECT
Payment of portion of payments, including pnnc1pal and interest due on Senes 1993 and 1994 Bonds
Construction of two new elementary schools, parking area and grounds, including acquIsIbon of real estate, furnishings, equipment and fixtures
Construction of add1bonal classrooms, instructional and support space, remodeling and renovating existing classrooms, instructional and support space, recreational fields and grounds and fum1sh1ngs, 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
Paying all or a portion of the debt service on outstanding Senes 1993 General Obligation Bonds, unrefunded Senes 1994 General Obligation Bonds previously issued and Sanes 1998 Refunding General Obligation Bonds
Acquinng, constructing and equipping new school buildings and other buildings or fac1ht1es
useful or desirable m connection therewith,
acquinng new school equipment, adding to, renovating, repaInng, improving and equipping eX1sbng school buildings or other buildings or
facilities useful or desirable m connect10n
therewith and acquInng any property necessary or desirable therefor, both real and personal

ORIGINAL ESTIMATED
COST Pl

CURRENT ESTIMATED COSTS (2!

AMOUNT EXPENDED IN CURRENT
YEAR (3l

AMOUNT EXPENDED
IN PRIOR YEARS(3l (4l

PROJECT STATUS

$ 9,024,203 00 $ 9,024,203 00 $ 1,049,021 00 $ 3,742,142 15 Completed

12,000,000 00

12,000,000 00

3,575,212 62

7,720,485 89 Ongoing

9,000,000 00

9,000,000 00

826,696 41

2,509,422 29 Ongoing

8,835,638 00

8,835,638 00

Ongoing

27,765,100 00 27,765,100 00

569,608 68

Ongoing

$ 66,625,141 00 $ 66,625.141 00 $ 610201538 71 $ 131972,050 33

(1) The School D1stnct's ong1nal cost estimate as specified in the resolution calling for the Imposrt.Ion of the Local Option Sales Tax

(2) The School D1stnct's current estimate of total cost for the proiects 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 pl'Of8Cls and retire asSOC1ated debt Amounts expended for these proiects may include sales tax proceeds, state, local property taxes and/or other funds over the life of the proJects

(4) In add1t1on to the expenditures shown above. the School D1stnct has incurred interest to provide advance funding for the above proiects as follows

Pnor Years

$ 148,568 03

Current Year

0 00

Total

$ 148,588 03

See notes to the general-purpose financial statements

- 37 -

JACKSON COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE\
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30, 2002

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kmdergarten Program Kindergarten Program-Earty Intervention Program
Pnmary Grades (1-3) Program Primary Grades-Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Earty lntervenbon (4-5)
Program Middle School (6-8) Program
High School General Education (9-12) Program Vocational Laboratory (9-12) Program
Students with Oisabihbes Category I Category II Category Ill Category IV CategoryV
Gifted Student - Category VI Remedial Education Program Alternative Educabon Program Enghsh Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

777,026.00 $ 1,047,537.20 s 18,39269 $ 1,065,929 89

874,504 00

681,269.53

11,862.40

693,131 93

3, 130,858.00

3,226,915.08

241,346.83

3,468,261 91

684,275 00

842,14915

10,716.72

852,865 87

1,707,986.00

1,884,785.45

76,35417

1,961,13962

364,541 00 3,120,470.00 2, 152, 182.00 1,072,727.00 3,314,812.00
284,95600 70,63600
240,07500 89,376 00

326,122.18 3,319,661.96 2,965,547 50 1,047,72843
597,477.73 2,311,956 72
87,015.11 54,409.17 197,771.24 87,376.27 304,668.95 110,181 33

2,906.46 105,535.54 171,080.94 123,490.94
42001 12,415 07 79,21319 2,61584
15,637 68 76807
1,264.78 1,343.70

329,028.64 3,425,197.50 3, 136,628.44 1,171,219.37
42001 609,892 80 2,391,169.91
89,63095 54,40917 213,408 92 86,144 34 305,933.73 111,525.03

$

17,884,424.00 $ 19,092,573.00 $ 875,365.03 $ 19,967,938.03

530,465 00 106,571 00

717,36074 76,476 38

392,523 31 96,94249

1,109,88405 173,418.87

TOTAL QBE FORMULA FUNDS

$

18,521,46000 $ 19,886,41012 $ 1,364,83083 $ 21,251,24095

(1) Compnsed of State F1D1ds plus Local Five Mill Share

See notes to the general-purpose financial statements.

- 38-

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

SCHEDULE "5"

SITE
West Jackson lntenned1ate School 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 Aux1hary Facility
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION {1)

ELIGIBLE QBE PROGRAM COSTS

$

1,131,430.00 $

1,076,267.50

4,061,071.00

4,957,417.21

157,151.00

363,455.75

2,012,359.00

2,295,158 24

1,449,152.00

1,689,647.11

2,208,647.00

2,195,257.01

2,269,715.00

2,414,178.14

1,261,614.00

1,486,990.91

1,290,794.00

1,452,956.07

1,802,416.00

2,036,217.53

240,075.00

392.56

$ 17,884,424.00 $ 19,967,938.03

See notes to the general-purpose financial statements. - 39 -

SECTION II COMPLIANCE AND INTERNAL CONfROL REPORTS

w. Rt 1'iSELI,

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTl\'IENT OF AUDITS AND ACCOUNTS
254 WJ!-hmgton Street. S W., Smtc 214 Atlanta. Georgia 30334-8400
March 24, 2003

Honorable Sonny Perdue, 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, 2002, and have issued our report thereon dated March 24, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with 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.
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 determination of financial 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Jackson County Board of Education's internal co~trol 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
2002YB-41

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-6781-02-01.
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 employees 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-6781-02-01 to be a material weakness.
This report is intended solely for the information and use of the 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,
,.&&Jal w.4-.
Ru ell W. Hinton State Auditor
RWH:gp 2002YB-41

w. RtlSSELL

HtN'ION

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton Street, S. W., Suite 214 Atlanta, Georgia 30334-8400
March 24, 2003

Honorable Sonny Perdue, 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 ofits major Federal programs for the year ended June 30, 2002. 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 ofAmerica; 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.
2002SA-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, 2002.
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 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 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 the 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.

RWH:gp 2002SA-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. 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6781-00-01 FS-6781-00-02 FS-6781-01-01

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-6781-01-01

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 will be in full compliance with GASB 34 for the fiscal year 2003.

SECTION IV FINDINGS AND QUESTIONED COSTS

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Jackson County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Jackson County Board ofEducation disclosed a financial statement 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 .5 lO(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 qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133.
- 1-

JACKSON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6781-02-01 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 ofa 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 ofall additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-