Jenkins County Board of Education, Millen, Georgia, report on audit of the financial statements, year ended June 30, 2001

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JENKINS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS -OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D

STATEMENT OF REVENUES, EXPENSES AND

CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE-INTERNAL SERVICE FUND

8

E

STATEMENT OF CASH FLOWS

PROPRIETARY FUND TYPE- INTERNAL SERVICE FUND

9

F NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

11

ADDIDONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

G

COMBINING BALANCE SHEET

22

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

24

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

26

SCHEDULES

l SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

27

2 SCHEDULE OF STATE REVENUE

29

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

31

JENKINS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

32

5

BY SITE

33

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 COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

{1,,111 \\. l-11'\IO'\
Sl I\TE AUDITOR 1.:0~; E56 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2.'>4 \\',1,li1111un \iIL'L'I. '-, \\ C..,u11c 214 A1l.rnt.1 C,clll):!1.1 ,()~ 14-X41Hl
April 9, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jen.kins County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPEJ\i'DITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Jenkins 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 Jenkins 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 of America 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 pnnciples used and significant estimates made by management, as well as evaluatmg the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opmion.
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 opimon, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-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.
* 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 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 Jenkins County Board of Education as of June 30, 2001, and the results of its operations and the cash flows of its proprietary fund 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 9, 2002, on our consideration ofthe Jenkins County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions oflaws, 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 Jenkins County Board of Education taken as a whole. The accompanying combming and individual fund statements (Exhibits G through I) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, 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
2001ARL-13

auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the 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 of this 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,
r::;),..,.(D ~. ~
~sell W. Hinton State Auditor
RWH:as 2001ARL-13

JENKINS COUNTY BOARD OF EDUCATION

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

JENKINS COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL l=UND TYPES AND ACCOUNT GROUP JUNE 30. 2001

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
Inventories Food Donated Commod1t1es Purchased Food
Amount Available m Debt Service Fund
Amount to be Provided m Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

237,904 95 $

367,349 35 $

572,341 80

90,439 80

205,902 15

97,400 66

11,006 50 3,266.61

Total Assets

$

328,344 75 S

587,524 61 $==,;;6=-69==74=2=4=6=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Due to Other Funds Deferred Revenue General Obligation Bonds Payable
Total Llab1hlles
FUND EQUITY
Retained Earnings Unreserved
Fund Balances Reserved For Continuation of Federal Programs For Debt Service For Expired Grant Balances/Questioned Costs For lnventones Food Donated CommodItIes Purchased Food For SPLOST ProJects Unreserved Undes1gnated
Total Fund Equity

$

7,545 74 $

32,19309

3,695 40

126,638 16

653 42

55,812 48

104 85

1,401 60

$

11 999 41 $

216,045 33

$

11,006 50

3,266 61

$

669,742 46

$

316,345 34

357,20617

0 00

$

316,345 34 $

371 479 28 $

669 742 46

Total L1ab1lllles and Fund Equity

$

328,344 75 $

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

5871524 61 $===6,;;;69;;,;,,;,.74,;.;2;.,4.;,;6;..

EXHIBIT "A"

DEBT SERVICE
FUND

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUND

$

131,730 57 $

15,695 77

13,61720

$

80,000 00

104 85

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$ 1,325.022 44 $

964,704 61

487,359 81

505,622 85

104 85

$

145,452 62

724 547 38

11,006 50 3,266 61
145.452 62
724 547 38

14,479 28 3,11834
103,030 73
866,969 27

$

145,452 62 $

15,695 77 $

80.000 DO S

870,000 00 $ 2,696,760 21 $ 2,457,925 08

$

80,000 00

$

80,000 00

$

1,224 00

40,962 83 $

45,790 79

130,333 56

126,810.38

56,465 90

35,264 18

104 85

1,401 60

$

870,000.00

870,000 00

970,000 00

$

1 224 00 $

80,000 00 $

870,000 00 $ 1,179,268 74 $ 1,177,865 35

$

14,471 77

$

145,452 62

0 00

$

145 452 62 $

0 00 $ 14 471 77 $

000 000

$

14,471 77 $

15,695 77

145,452 62

16,029 49 103,030 73
394 56

11,006 50 3,266 61
669,742 46

14,479 28 3,11834
110,983 66

673 551 51

1,016,327 90

$ 1 517 491 47 $ 1,280,059 73

$

145 452 62 $

1569577 $

80,000 00 $

010,000 00 $ 2,696,760 21 $ 2 457,925 08

-3-

-------------------- -----------
JENKINS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES 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 AdmImstratIon School AdmmIstratIon Business AdmmIstratIon Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30

GENERAL FUND

SPECIAL REVENUE
FUND

$ 7,839,780 83 $

378,154 43

1,614,895 21

1,097,652 50

58,501 03

67 186 62

$ 8,995,934 36 $ 2,060,236.26

$ 6,455,704.32 $
266,125 82 192,563.24 247,714 89 227,669 99 582,276 77 149,599 14 629,933 49 568.224 87
17,109 31 120 20

986,165 22
86,497 91 179,538 82
6,420 32 60,170 93
4,654 17
17,523.23 5,17409
10,343 31 721,841 02

$ 9,337,042 04 $ 2,078,329 02

$

-341,107 68 $

-18,092 76

657,453 02

392,896 55

-3,472 78 148 27

$

316 345 34 $.,.,,,=3;;;,,;7~1""4;,;,7~9=28;;;,,,

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 8,217,935 26 $ 7,777,227 37

1,614,895 21

1,501,430 78

$

545,067 64 $

187,715 90

1,830,436 04

1,433,672 64

1369116

4 132 89

14351170

231 516 40

$

558?58 80 $

191 848 79 $ 11,806?78 21 $ 10,943,847 19

$

0 00

$ 7,441,869 54 $ 6,985,166 55

352,623 73 372,102 06 254,135 21 287,840 92 586,930 94 149,599 14 647,456 72 573,398 96
27,452 62 721,961.22

577,664 00 368,932.90 263,981.30 256,850 31 532,084 00
99,699 99 575,181 23 533,702.28
18,641 85 671,185 64
22,650 00

$

100,000 00

48,705 00

721.90

100,000 00 48,705 00 721 90

95,000 00 53,290 00
674 90

$

0 00 $

149,426 90 $ 11,564?97 96 $ 11,054?04 95

$

558,758 80 $

42,421 89 $

241,980.25 $

-110,85776

110,983 66

103,030 73

1,264,363.96

1,380,151.67

-3,472 78 148 27

-3,487 28 -144267

$

669 742 46 $

145 452 62 $

-5-

JENKINS 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

$ 7,673,032 44 $ 7,839,780 83

1,069,328 00 7 400 00

1,097,652 50 58 501 03

Total Revenues

$ 8 749 760 44 $ 8,995,934 36

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Adm1mstrat1on Business Admin1strat1on Maintenance and Operation of Plant Student Transportation Servir.es Other Support Services Food Services Operation

$ 6,493,257 34 $ 6,455,704 32

214,791 00 204,521 00 269,364 00 196,763 00 618,665 00 118,886 00 544,476 00 482,198 00
18,267 00

266,125 82 192,563 24 247,714 89 227,669 99 582,276 77 149,599 14 629,933 49 568,224 87
17,109 31 120 20

Total Expenditures

$ 9 161 188 34 $ 9,337,042 04

Excess of Revenues over (under) Expenditures

$ -411 427 90 $ -341 107 68

OTHER FINANCING SOURC!;S (USES}

Other Sources Other Uses

$

4,200 00

Total Other Financing Sources (Uses)

$

4 200 00

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -407,227 90 $ -341,107 68

FUND BALANCE JULY 1 2000

649,252 42

657,453 02

Adiustments Food Inventory Net Change in Penod
Donated Commod1t1es Purchased Food

-66,330 91

FUND BALANCE JUNE 30 2001

$ 175 693 61 $ 316 345 34

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 412 356 10 $ 378,154 43

1,828,598 00

1,614,895 21

61 850 00

67 186 62

$ 2,302,804 10 $ 2,060,236 26

$ 1,226,469 80 $ 986,165 22

211,337 00 163,509 96
1,880 00 82,332 00
5,192 00

86,497 91 179,538 82
6,420 32 60,170 93
4,654 17

53,529 24 5,284 00 1,000 00
757 785 50

17,523 23 5,174 09
10,343 31 721 841 02

$ 2,508,319 50 $ 2,078,329 02

$ -205 515 40 $ -18 092 76

$

40,500 00

-40 500 00

$

0 00

$ -205,515 40 $ 417,077 70 -10, 157 30

-18,092 76 392,896 55
-3 472 78 148 27

$ 201,405 00 $ 371 479 28

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

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS

PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND

YEAR ENDED JUNE 30, 2001

OPERATING REVENUES None Recorded
OPERATING EXPENSES Current Enterprise Operations Operating Income (Loss)
NONOPERATING REVENUES None Recorded Net Income (Loss)
RETAINED EARNINGS JULY 1
RETAINED EARNINGS JUNE 30

UNEMPLOYMENT COMPENSATION

TOTALS

{Memorandum Onl~l YEAR ENDED

JUNE 30 1 2001

JUNE 30, 2000

$

0.00 $

0 00 $

0.00

$

1 224.00 $

1 224.00 $

169600

$

-1,224.00 $

-1,224.00 $

-1,696 00

000

0.00

0.00

$

-1,224.00 $

-1,22400 $

-1,696.00

15 695 77

15 695.77

17 391.77

$

14 471 77 $

14 471.77 $ ===1=5=6=95==77=

The notes to the general-purpose financial statements are an integral part of this statement. -8-

JENKINS COUNTY BOARD OF EDUCATION STATEMENT OF CASH FLOWS
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND
YEAR ENDED JUNE 30, 2001

EXHIBIT "E"

Cash Flows from Operating Act1v1t1es: Cash Paid for Claims
Net Cash Provided (Used) by Operating Act1vit1es
Cash and Cash Equivalents - July 1

UNEMPLOYMENT , COMPENSATION

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

0.00 $

o.oo $ _ _ _-1~6_9_6_.o_o_

$

0.00 $

0.00 $

-1,696.00

15 695.77

15 695.77

17391.77

Cash and Cash Equivalents - June 30

$

Reconc1hat1on of Operating Income to Net

Cash Provided (Used) by Operating

Act1vit1es.

Operating Income (Loss)

$

Increase 1n Claims Payable

15,695.77 $

15 695.77 $ ===1=5=6=95==77=

-1,224.00 $

-1,224.00 $

0.00

1 224.00

1,224.00

0.00

Net Cash Provided (Used) by Operating

Act1vit1es

$

0.00 $

000 $====0==00=

The notes to the general-purpose financial statements are an integral part of this statement. -9-

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Jenkins County Board of Education (School District) was established under the laws ofthe 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 of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time 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 gene:i;al-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.

- 11 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

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.
PROPRIETARY FUND TYPE - the fund used to account for activities of the School District similar to those found in the private sector, where cost recovery and the determination ofnet income is useful or necessary for sound fiscal management. Internal service funds are a type ofproprietary fund and are used to account for operations on a cost reimbursement basis that provide services to other funds or programs of the School District.
UNEMPLOYMENT COMPENSATION - the internal service fund used to account for the School District's risk financing and insurance related activities for all risk related to unemployment compensation.
FIDUCIARY FUND TYPE - the fund 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. This fund includes:
AGENCY FUND - the fund used to account for assets held in a fiduciary capacity for other funds, governments, or individuals.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental 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.

- 12 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
All proprietary funds are accounted for on a flow of economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the balance sheet. Operating statements present increases (e.g., revenues) and decreases (e.g., expenses) in net total assets.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
Governmental 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 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.
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 of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to 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 payinents, 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.

- 13 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 funds are received or disbursed.
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
BUDGET
The Jenkins 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 proprietary fund budget was prepared and utilized as a management tool to assess the operations of the internal service funds. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
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.

- 14 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECEIVABLES

Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Jenkins County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on October 15, 2000 (levy date). Taxes were due on December 20, 2000 (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 Jenkins County Tax Commissioner bills and collects the property taxes for the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $1,085,766.66 and for school bonds amounted to $187,715.90.

Tax millage rates levied for the 2000 tax year (calendar year) for the Jenkins County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

8.66 mills 1.40 mills

10.06 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $545,067.64 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $2,054,948.70 has been collected or on March 31, 2005, whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories

- I5 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
are recorded as expenditures at the time of purchase. 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.
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded m the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following type of interfund transactions:
Reimbursements of expenditures/expenses initially made from a fund that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
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, results of operations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
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 of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 11 Opercent of the 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 of the 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 of operating funds placed in demand deposit checking accounts.
- 16 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS
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 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 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, 2001, the bank balances were $1,898,582.84. 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:

- 17 -

JENKINS COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS
JUNE 30, 200 I

EXHIBIT "F"

Note 2: DEPOSITS

Risk Category

Bank Balance

1

S 231,718.57

2

1,666,864.27

3

0.00

Total

$ 1.898.582.84

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; natural disaster and unemployment compensation.

The School District has obtained commercial insurance for risk of loss associated with torts and assets. The Scho~l District has neither significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the School District's insurance coverage in any ofthe past three years.

The School District has elected to self-insure for all losses related to natural disaster. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years.

The School District is self-insured with regard to unemployment compensation claims. A premium is charged when needed by the Unemployment Compensation Fund to each user fund on the basis of the percentage of that fund's payroll to total payroll in order to cover estimated claims budgeted by management based on known claims and prior experience. The School District accounts for claims with expenditure and liability being reported when it is probable that a loss has occurred, and the amount of that loss can be reasonably estimated.

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

- 18 -

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

EXHIBIT "F"

Note 4: RISK MANAGEMENT

2000 2001

Begmnmg of Year Ltabthty

Claims and Changes in Estimates

$

I 696.00 $

0.00 s

s

0.00 $

s 1,224.00

Claims Paid

End of Year Ltabthty

1,696.00 $ 0.00 $

0.00 I 224.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

Position Covered

Amount

All Employees

$ 100,000.00

Note 5: GENERAL LONG-TERM DEBT

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

Purpose

Interest Rates

Amount

General Government - Series 1993

4.35 % - 5.60% $ 870,000.00

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

General Obligation
Bonds

Balance July I, 2000

$ 970,000.00

Deductions Debt Retired

100,000.00

Balance June 30, 2001

$ 870,000.00

- 19 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

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 - 2008

$ 148,680.00 148,250.00 147,455.00 151,152.00 149,330.00 301,030.00

Total Principal and Interest

$ 1,045,897.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $147,725.81 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 ofNon-Certified Personnel In the amount of $120,239.16

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $4,963.65

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 $22,523.00

Note 7: 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 School District believes that such disallowances, if any, will be immaterial to its overall financial position.

- 20 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 8: 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 contributions 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%

$ 735,243.24 $ 703,671.66 $ 699,999.16

- 21 -

JENKINS 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

$

378,051 70 $

36,693.14

10,187.23

11,006.50 31266 61

Total Assets

$

402,512.04 $===3=6=16=93=14=

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 Continuation of Federal Programs For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity

/

$

6,324 67 $

7,564.68

24,708.09

29,128.46

$

31,032.76 $

361693.14

$

11,006.50

3,266 61

357,206.17 $

0.00

$

371,479.28 $

0.00

Total Llab1ht1es and Fund Equity See notes to the general-purpose financial statements.
- 22 -

$

4021512.04 $===3=6=,6=93==14=

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

414,744.84 $

411,29346

$

195,714.92

205,902.15

336,866.64

11,006.50 3 266 61

14,479.28 3 118 34

$

195,714 92 $

634,920 10 $ ====76=5,=75=7.=72=

$

47,395 49 $

47,395 49 $

179,851.53

18,303 74

32,193 09

34,742 25

72,801.61

126,638.16

123,010.28

55,812.48

55,812 48

35,257.11

1 401 60

1 401 60

$

195 714 92 $

263,440 82 $

372861.17

$

16,029.49

394.56

$

11,006.50

3,266.61

14,479.28 3,118.34

$

0 00

357,206 17

358,874.88

$

0.00 $

371 479.28 $

392,896.55

$

195,714 92 $

634,920 10 $ ==-7_6:z::5-=7=57=7=2=

- 23 -

JENKINS 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 Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Admin1strat1on School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues 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

$

53,616 00 $

299,198 43

599,369 69

67,186 62

$

720,172 31 $

299,198.43

$

219,067.78

55,580.17 93.55

6,415.45

$

721,841.02

17,523.23 1.00
517.25

$

721,841 02 $

299,198.43

$

-1,668.71 $

000

376,472.50

0.00

-3,472.78 148.27

$ 371,479 28 $ =====o=.o=o=

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

EXHIBIT "H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

25,340 00 $

378,154 43 $

420,177.76

1,015,525 52

1,614,895.21

1,501,430 78

67 186 62

125,210 86

$

2,060,236.26 $ 2,046,819 40

$

767,097 44 $

986,165.22 $

934,204.54

30,917 74 179,445 27
6,420.32 53,755 48
4,654 17
5,173 09 9,826.06

86,497.91 179,538 82
6,420 32 60,170 93
4,654.17 17,523.23
5,174.09 10,343.31 721,841 02

201,372.24 68,976.34
48,183.08 5,368.00 643.53
10,754.87 2,375 95
667,992.71

$ 1,057,289 57 $ 2,078,329 02 $ 1,939,871.26

$

-16,424 05 $

-18,092 76 $

106,948 14

16,424 05

392,896.55

290,878.36

-3,472 78 148.27

-3,487 28 -144267

$

0.00 $

371 479.28 $ ====39=2,=89=6 =55=

- 25 -

------------- --------------- ------------- -----------------
JENKINS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2001

EXHIBIT"!"

FAMILY CONNECTION ASSETS
Accounts Receivable
LIABILITIES Cash Overdraft

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2001

$

0 00 $

80,000.00 $

0.00 $ ====8=0,=0=00=.0=0=

$

0 00 $ 105,000.00 $

25,000 00 $ ==8=0==,0=00==00=

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

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture. U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Services School Breakfast Program National School Lunch Program Pass-Through From Office of School Readiness Food and Nutnt1on Program Summer Food Service Program for Children
Total Child Nutntlon Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutntlon Program Food D1stnbut1on Program ( 1) Pass-Through From Office of School Readiness Food and Nutntlon Program Child and Adult Care Food Program
Total U S Department of Agnculture
Education U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with Disab1ht1es Education Act Part B - Special Education Flow Through Preschool Capacity Bu1ld1n9 Improvement Grant
Total Special Educallon Cluster
Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Educallon Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 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 Pass-Through from First District Regional Educational Service Agency dlbla Live Oak Migrant Education Agency Elementary and Secondary Educahon Act Tltlel Migrant Education
Total U S Department of Education

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555
10 559

NIA

$ 117,127 49

NIA

432,594 73 $

(2) 683,233 59 (3)

NIA

6,989 70

$ 556,711 92 $

!2) 683,233 59

10 550 10 558

NIA

38,607 43

38,607 43

NIA

4,050 34

s 599,369 69 $

!2) 721,841 02

84 027 84 173 84 173

NIA

$

92,729 67 $

NIA

20,131 56

NIA

3,768 00

$ 116,629 23 $

92,729 67 20,131 56
3,766 00
116,629 23

64 010

NIA

84.261

NIA

84 316

NIA

84 298

NIA

84 340

NIA

64 276

NIA

84 186

NIA

84048

NIA

464,977 24 14,954 40
107,568 91 15,399 68 63,305 00
149,961 70 7,436 68
17,340 25

464,977 24 14,954 40
123,598 40 15,399 68 63,305 00
149,961 70 7,436 68
17,340.25

84 011

NIA

19,18398

$ 976,779 07 $

19,18398 992,806 56

- 27

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

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Health and Human Services, U S Department of Pass-Through From Georgia Department of Human Resources Block Grants for Prevention and Treatment of Substance Abuse Grant-in-Aid

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

93 959

N/A

$

38,746 45 $

39,141 01

Total Federal Financial Assistance

s 1,614.895 21 s ___1_1_5_3_.7_9o.....,59_

NIA = Not Available

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 commod1t1es received and/or consumed by the system dunng the current fiscal year
(2) Expenditures for the Summer Food Sel'Vlce Program for Children, Child and Adult Care Food Program and the School Breakfast Program were not ma1nta1ned separately and are included 1n the 2001 National School Lunch Program
(3) Expenditures on this program/prOject were not maintained on a program/proJect basis

MaJor Programs are 1dent1fied by an astensk (") in front of the CFDA number

The School D1stnct did not provide Federal Assistance to any Subrec1p1ent
The accompanying schedu1e of expenditures of Federal awards includes the Federal grant activity of the Jenkins County Board of Education and 1s presented on the modified accrual basis of accounting which ,s the basis of accounting used in the presentation of the general-purpose financial statements

See notes to the general-purpose financial statements

- 28 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct lnstruc:tional Cost 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 Educabon (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1hhes Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Mid-term AdJustment Hold-Harmless Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

290.469 00

87,744 00

1,008,586 00

185,382 00

529,208 00

928,864 00

846,957 00

248,012 00

5,700 00 329,861 00 397,301 00
59,614 00 46,051.00 143,781 00 72,335 00 162,467 00 44,765 00 1,137,89100

$

290,469 00

87,744 00

1,008,586 00

185,382 00

529,208 00

928,864 00

846,957 00

248,012 00

5,700 00 329,861 00 397,301 00
59,614 00 46,051.00 143,781 00 72,335 00 162,467 00 44,765 00 1,137,89100

259,849 00 81,614 00 51,994 00 7,241.00 9,098 00 35,741 00
625,432.00 $
21,260 58
2,056 75 120,239 16
B.00000 1,304 00 19,551.00 3,498 69 4,96365

53,616 00 36,574 00

259,849 00 81,614.00 51,994 00 7,241 00 9,098 00 35,741 00
625,432 00 53,616 00 21,260 58
2,056 75 120,239 16
B.00000 1,304.00 19,551 00 3,49869 4,963 65
36,574 00

262,624 43

262,624 43

22,52300

22,52300

40,427.00

25,340 00

40,427.00 25,340 00

See notes to the general-purpose financial statements

$ 7,839,780 83 $

378,154 43 $ 8,217,935 26

- 29-

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

SCHEDULE "3"

PROJECT
Construct approximately twelve (12) classrooms at Jenkins County Elementary School, Construct approximately ten (10) classrooms at Jenkins County High School, construct approximately two (2) classrooms at Jenkins County Middle School, and complete improvements and an expansion of the kitchen at Jenkins County High School, Construct or provide new bleachers and a press box at the Jenkins County High School football stadium, and Construct an allweather track facility and new tennis courts at Jenkins County High School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR

AMOUNT EXPENDED
IN PRIOR YEARS

PROJECT STATUS

$ 2,711,00000 $ 2,711,00000 $

0 00 $ = = = =0 0=0 Ongoing

(1) The School D1stnct's original cost estimate as specified in the resolution calling for the ImposItIon of the Local Option Sales Tax
(2) The School D1stnct's current estimate of total cost for the proJect Includes all cost from proiect inception to completion

See notes to the general-purpose financial statements

- 31 -

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

SCHEDULE "4"

DESCRIPTION
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 Vocallonal Laboratory (9-12) Program Students with D1sab1ht1es Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternallve Education Program
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

$

314,547 00 $ 371,665 08 $

s 14,438 69

386,103 77

95,017 00

72,130 86

72,13086

1,092,192 00 1,051,656 89

57,177 59

1,108,834 48

200,749 00

183,877 83

183,877 83

573,076 00

471,791 61

9,985 35

481,776 96

1,005,861 00

940,599 87

42,715 06

983,314 93

917,165 00

957,498 58

65,984 36

1,023,482 94

268,571 00

285,530 51

51,659 91

337,190 42

858,167 00

312.750 83

17,273 52

330,024 35

426,389 53

558 33

426.947 86

1,095 42

4,059 09

5,154 51

49,869 00

40,262 21

988 75

41,250 96

155,700 00

201,690 38

201,690 38

78,331 00

107,194 27

484 99

107,679 26

$

s 5,609,245 00 $ 5,424,133 87

265,325 64 $ 5,689,459 51

175,936 00 48.476 00

169,478 28 10.425 96

59,377 40 38,330 78

228,855 68 48,756 74

TOTAL QBE FORMULA FUNDS

$

5,833,657 00 S 5,604,038 11 $ 363,033 82 $ 5,967,071 93

(1) Comprised of State Funds plus Local Five Mill Share

See notes to the general-purpose financial statements

- 32 -

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

SCHEDULE "5"

SITE Jenkins County Middle School Jenkins County High School Jenkins County Elementary School Alternative School Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,246,009.00 $

1,432,787.53

1,420,080.00

1,299,756.15

2,864,825.00

2,849,236.57

107,679.26

78,331 00

$

5,609,245.00 $ =====5=,6=8=9=,4=5=9=.5=1

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

l'~SlI I \\'. H1,TO~
STATE AUDITOR (4041 56-2174

DEPARTI\1ENT OF AUDITS AND ACCOUNTS
2:'i-1 W.1,li111,l-'l1111 \t1L1.:1. \ \\ \u1IL' 21-1 -\11.1111.1 (1L'lll,l-'I.I "\()"\ >-I-S-11)1)
April 9, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jenkins 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 Jenkins County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated April 9, 2002. 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 Jenkins 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 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 of our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Fmancial Reporting
In planning and performing our audit, we considered Jenkins 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
2001YB-40

control over financial reporting. However, we noted certain matters involving the internal control over financial reporting and its operation that we consider to be reportable conditions. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Jenkins County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. Reportable conditions are described in the accompanying Schedule ofFindings and Questioned Costs as items FS-6821-01-01 and FS-6821-01-02.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the 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, ofthe reportable conditions described above, we consider item FS-6821-0102 to be a material weakness.
This report is intended solely for the information and use of the management, members of the Jenkins County Board of Education, 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 2001 YB-40

?u,,u 1 \\". H1:-.10"
STATE AUDITOR (404; 656 2174

DEPART!\1ENT OF AUDITS AND ACCOUNTS
2:'i4 \\',1~11111glllll ~lll'.l'.I ~ \V. '>lllll ~14 i\11.1111.1. (,eurg1.1 ,(J""\ <4-:-,4()(1
April 9, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jenkins 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 ofJenkins County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Comphance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2001. Jenkins 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 Jenkins County Board of Education's management. Our responsibility is to express an opinion on Jenkins County Board of Education's compliance based on our audit.
We conducted our audit of compliance 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 of the United States; and 0MB Circular Al 33, Audas 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 Jenkins County Board of Education's compliance with those reqmrements 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 Jenkins County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Jenkins County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Jenkins 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 Jenkins 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 of the 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 of the 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 Jenkins County Board of Education, 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

JENKINS 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-6821-99-0 l FS-6821-99-02 FS-6821-99-03 FS-6821-00-01 FS-6821-00-02 FS-6821-00-03

Further Action Not Warranted Previously Reported Corrective Action Implemented Further Action Not Warranted Previously Reported Corrective Action Implemented Partially Resolved-See Corrective Action/Responses Unresolved-See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6821-00-02

The School District will implement procedures to provide adequate documentation for all journal entries as well as adequate review and approval of all entries.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6821-00-03

The Jenkins County Board of Education has met several times with other area superintendents in order to obtain a General Fixed Assets Accounts Group management system.

Central Savannah River Area Regional Educational Service Agency is finalizing negotiations with a service provider for fixed assets management through a consortium thus making it affordable for all systems.

PRIOR YEAR FEDERAL AWARD FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FA-6821-00-01 F A-6821-00-02 F A-6821-00-03

Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

JENKINS 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 opmion on the Jenkins 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 Jenkins County Board of Education disclosed financial statement reportable conditions related to the following control categories.

General Ledger

General Fixed Assets

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

3. Noncompliance Material to the Financial Statements The audit of the Jenkins 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 Jenkins 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 Jenkins 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 O(a) of 0MB Circular A-133 The Jenkins 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 10.559 Food and Nutrition Program - Summer Food Service Program for Children 84.010 Elementary and Secondary Education Act - Title I - Grants to Local Educational Agencies

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

-l -

JENKINS COUNTY BOARD OF EDUCATION SCHEDULE OF FfNDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
I SU1\1MARY OF AUDITOR'S RESULTS
9. Low Risk Auditee The Jenkins County Board of Education did not qualify as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
II FINANCIAL STATEMENT FfNDINGS AND OUESTIOI\7ED COSTS
GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6821-01-0 I
A review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control categories in the separation of duties over the journal entry process. Journal entries were not reviewed and approved by someone independent of the general ledger journal entry function. This condition was a result of management's decision to limit the numher of administrative staff made responsible for accounting functions and their failure to institute proper mternal control over this area. The School District should review the accounting procedures in place, design procedures which would enhance segregation of duties and proper internal controls relative to the above control category and implement those procedures to strengthen the internal control over accounting functions.
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Cond1t1on - Material Weakness Repeated From Prior Year Finding Control Number FS: -6821-01-02
The Jenkms 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 pnnciples. This cond1t1on results in the general-purpose financial statements of the School District being mcomplete 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 the 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.
-2-

JENKINS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 200 l ill FEDERAL AWARD FTNDINGS AND QUESTIONED COSTS No matters were reported.
-3-