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I I1 ., '1 ., .... ,. . ..., . ,: 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-