Jenkins County Board of Education, Millen, Georgia, report on audit of the financial statements, year ended June 30, 2002

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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

ADDITIONAL 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

CAPITAL PROJECTS FUND

COMBINING BALANCE SHEET

26

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

28

K

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

30

JENKINS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

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

{USSELL W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W.ishmgton Street. S.W. Suite 214 Atlanta, Georgia 30334-8400
July 24, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Jenkins County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the Jenkins County Board of Education, as of and for the year ended June 30, 2002, as listed in the table of contents. These general-purpose financial statements are the responsibility of the 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 of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-13

* The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* For fiscal year 2002, the School District changed its method of accounting for the final
two payments on one hundred and ninety day employment contracts and the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available. The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and fourteen months of revenue from the State to fund these contracts. Generally accepted accounting principles require that expenditures be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Jenkins County Board of Education as of June 30, 2002, 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 July 24, 2003, on our consideration ofthe Jenkins County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Jenkins County Board of Education taken as a whole. The accompanying combining and individual fund statements (Exhibits G through K) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required
2002ARL-13

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 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 of the State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

~.~
. on State Auditor
RWH:gp 2002ARL-13

JENKINS COUNTY BOARD OF EDUCATION

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Due from Other Funds
lnventones Food Donated Commodities Purchased Food
Amount Available In Debt Service Fund
Amount to be Provtded in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

423,512 30 $ 1,096,773 84

$ 1,024,317 60

103,286 04

128,848 60

6,841 35 5,661 95

Total Assets

$ 1,024,317 60 $

539,301 64 $ 1,225,622 44

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Reta1nages Payable Due to Other Funds Deferred Revenue General Obhgat1on Bonds Payable
Total L1ab1ht1es
FUND EQUITY
Retained Earnings Unreserved
Fund Balances Reserved For Debt Service For lnventones Food Donated Commodities Purchased Food For SPLOST ProJecls Unreserved Defiat Undesignated
Total Fund Equity

$

122,305 68

290,822 65 $

81,027 52 $

924,145.34

153,937 17

54000

1,909 31

$ 1,337,813 67 $

236,874 00 $

1,233 75 119,677 00
13,010 00
133 920 75

$

6,841 35

5,661 95

$ 1,101,445 98

$

-313,496 07

0 00

289,924 34

-9,744 29 000

$

-313 496 07 $

302 427 64 $ 1,091,701 69

Total Llab1ht1es and Fund Equity

$ 1,024,317 60 $

539,301 64 $ 1,225,622 44

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

EXHIBIT"A"

DEBT SERVICE
FUND

PROPRIETARY FUND TYPE INTERNAL
SERVICE FUND

FIDUCIARY FUND TYPE AGENCY FUND

$

159,856 83 $

13,679 77

9,799 63

$

12,500 00

ACCOUNT GROUP
GENERAL LONG-TERM
DEBT

TOTALS

(Memorandum Only)

JUNE 301 2002

JUNE 30, 2001

$ 1,693,822 74 $ 1,325,022 44

1,278,751 87

487,359 81

104 85

$

169,656 46

595,343 54

6,841 35 5,661 95 169,656 46
595,343 54

11,006 50 3,266 61
145,452 62
724,547 38

$

169 656 46 $

13 679 77 $

12,500 00 $

765,000 00 $ 3 750 077 91 $ 2,696,760 21

$

12,500 00

$

134,805 68 $

80,000 00

$

496 00

373,579 92

40,962 83

1,078,082 51

130,333 56

56,46590

119,677 00

13,010 00

104 85

2,449 31

1,401 60

$

765,000 00

765 000 00

870,000 00

$

496 00 $

12,500 00 $

765,000 00 $ 2,486,604 42 $ 1179 268 74

$

$

169,656 46

13,18377

0 00

0 00 $

0 00

$

s 169,656 46

13 183 77 $

0 00

$

13,18377 $

14,471 77

169,65646

145,452 62

6,841 35 5,661 95 1,101,445 98

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

-323,240 36 289,924 34

673 551 51

$ 1,263,473 49 $ 1 517 491 47

$

169,656 46 $

13 679 77 $

12,500 00 $

765,000 00 $ 3,750,077 91 $ 2,696,760 21

-3-

JENKINS COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Admin1strat1on Business Administration 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
OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commod1t1es Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 8,991,337 11 $
1,079,309 65 18,789 29
$ 10,089,436 05 $

425,478 76 1,770,41066
69,340 28
2,265,229 70

$ 7,595,621 52 $ 1,196,545 32

295,629.29 318,387 10 272,660 31 211,266 66 684,867 85 138,733 51 607,747 70 538,059 56
54,850 00

103,364 60 88,388 39
55,654 14
368 70 3,614 17 20,32569 864,25248

$ 10,717,823 50 $

$

-628,387 45 $

2,332,513 49 -67,283 79

$

1 96

$

-145396

$

-145396 $

1 96

$

-629,841 41 $

316,345 34

-67,281 83 371,479 28

-4,16515 2 395 34

FUND BALANCE JUNE 30

$

-313,496 07 $==3=0=2"'=,4=2=7=64=

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, 2002

JUNE 30, 2001

$

30,084 00

$ 9,446,899 87 $ 8,217,935 26

1,770,410 66

1,614,895 21

556,754 65 $

171,660 50

1,807,724 80

1,830,436 04

13311.62

192924

103,370 43

14351170

$

600,150 27 $

173 589 74 $ 13, 128,405 76 $ 11,806,778 21

$ 8,792,166 84 $ 7,441,86954

$

179,643 04

398,993 89 406,775 49 272,660 31 266,920 80 684,867 85 138,733 51 608,116 40 541,673 73
75,175 69 864,252 48 179,643 04

352,623 73 372,102 06 254,135 21 287,84092 586,930 94 149,599 14 647,456 72 573,398 96
27,452 62 721,961 22

$

105,000 00

43,680 00

705 90

105,000 00 43,680 00 70590

100,000 00 48,705 00 721 90

$

179 643 04 $

149,385 90 $ 13,379,365 93 $ 11,564,797 96

$

420,507 23 $

24,203 84 $

-250 960 17 $

241,980 25

$

1,452 00

$

145200

$

1,453 96

-145396

$

0 00

$

421,959 23 $

24,203 84 $

-250,960 17 $

241,980 25

669,742 46

145,452 62

1,503,019 70

1,264,363 96

-4,16515 2 395 34

-3,472 78 148 27

$ 1,091,701 69 $

169,656 46 $ 1,250,289 72 $ 1,503,019 70

-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 2002

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 9,253,658 46 $ 8,991,337 11

1,062,928 00 11 400 00

1,079,309 65 18 789 29

Total Revenues

$ 10,327,986 46 $ 10,089,436 05

EXPENDITURES

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Admin1strat1on School Admin1strat1on Business Adm1mstra1Jon Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Capital Outlay

$ 7. 193,867 41 $ 7,595,621 52

284,532 10 265,957 50 242,081 34 269,755 21 574,399 91 109,959 49 625,303 81 574,997 06
56,025 00

295,629 29 318,387 10 272,660 31 211,266 66 684,867 85 138,733 51 607,747 70 538,059 56
54,850 00

200 000 00

Total Expenditures

$ 10,396,878 83 $ 10 717 823 50

Excess of Revenues over (under) Expenditures

$

-68 892 37 $ -628 387 45

OTHER FINANCING SOURCES (USES)

Other Sources Other Uses

$

115,655 00

$

-1 453 96

Total Other Financing Sources (Uses)

$

115 655 00 $

-1 453 96

Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $

46,762 63 $ -629,841 41

FUND BALANCE JULY 1 2001

247,449 30

316,345 34

Ad1ustments Food Inventory - Net Change in Penod
Donated Commod11Jes Purchased Food

-250 44

FUND BALANCE JUNE 30 2002

$

-313 496 07

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 399,949 00 $ 425,478 76

1,681,89500

1,770,410 66

76 300 00

69 340 28

$ 2,158,144 00 $ 2,265,229 70

$ 1,049,078 00 $ 1,196,545 32

130,317 00 133,447 00
12,960 00 52,735 00 12,774 00

103,364 60 88,388 39
55,654 14

10000 5,036 00 17,035 00 746,600 00

368 70 3,614 17 20,325 69 864,252 48

$ 2,160,082 00 $ 2,332,513 49

$

-1 938 00 $ -67 283 79

$ 40,000 00 $

1 96

-40 000 00

$

0 00 $

1 96

$

-1,938 00 $ -67,281 83

380,228 69

371,479 28

18,329 03

-4,16515 2 395 34

$ 396 619 72 $ 302 427 64

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

JENKINS COUNTY BOARD OF EDUCATION STATEMENT OF REVENUES. EXPENSES AND CHANGES IN RETAINED EARNINGS
PROPRIETARY FUND TYPE - INTERNAL SERVICE FUND YEAR ENDED JUNE 30. 2002

EXHIBIT "D"

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

UNEMPLOYMENT COMPENSATION

TOTALS (Memorandum Onl:r:}
YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

000 $

000 $

000

$

128800 $

1,288 00 $

1,224 00

$

-1,288 00 $

-1,288 00 $

-1,224 00

000

000

000

$

-1,288 00 $

-1,288 00 $

-1,224 00

14 471 77

14 471 77

15 695 77

$

13 183 77 $

13 183 77 $ ===1=4=47=1 =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. 2002

EXHIBIT"E"

Cash Flows from Operating Activ1t1es: Cash Paid for Claims Net Cash Provided (Used) by Operating Activities
Cash and Cash Equivalents - July 1
Cash and Cash Equivalents - June 30
Reconcihabon of Operating Income to Net Cash Provided (Used) by Operating Act1v1t1es: Operating Income (Loss) Change in Claims Payable
Net Cash Provided (Used) by Operating Activities

UNEMPLOYMENT COMPENSATION

TOTALS {Memorandum Onl~}
YEAR ENDED JUNE 301 2002 JUNE 30, 2001

$

-2 016 00 $

-2,016 00 $

000

$

-2,016 00 $

-2,016.00 $

0.00

15 695 77

15,695 77

15,695.77

$

13 679.77 $

13 679 77 $ ====1=5=,6=95=====77=

$

-1,288 00 $

-1,288.00 $

-1,224.00

-728 00

-728 00

1,224.00

$

-2 016 00 $

-2,016 00 $====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, 2002

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 general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 11 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: 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 of proprietary 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 ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.

- 12 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
For fiscal year 2002, the School District changed its method of accounting for the final two payments on one hundred and ninety day contracts and for the related revenue due from the State to fund these contracts. Adjustments have been made in the fiscal year 2002 financial statements to record expenditures for salaries and fringe benefits earned by employees through June 30, 2002, (even though paid in July and August 2002) and the related revenue due from the State to fund these contracts. This change is in accordance with generally accepted accounting principles. No adjustment was made for the similar salaries and benefits earned in fiscal year 2001 but recorded in fiscal year 2002 as this information was not readily available.
The net effect of the above accounting treatment resulted in the accompanying financial statements reflecting fourteen months of expenditures for a majority of General Fund salaries and fringe benefits and the related revenue due from the State to fund these contracts. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.

- 13 -

JENKlNS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FlNANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accrual basis of accounting, as required by generally accepted accounting principles, is utilized by proprietary funds. Under the accrual basis ofaccounting, 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 of cash 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.
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.

- 14 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Jenkins County Board ofCommissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 15, 2001 (levy date). Taxes were due on December 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The Jenkins County Tax Commissioner bills and collects the property taxes for the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $1,056,531.33 and for school bonds amounted to $170,169.97.

Tax millage rates levied for the 2001 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

8.63 mills 1.39 mills

.lili12 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $556,754.65 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

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

- 15 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

INTERFUND TRANSACTIONS

The School District has the following types 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.

Operating transfers are recorded for all interfund transactions other than reimbursements.

MEMORANDUM ONLY - TOTAL COLUMNS

Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results ofoperations or cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. lnterfund eliminations have not been made in the aggregation of this data.

DEFICIT FUND BALANCES

Funds reporting a deficit fund balance position at June 30, 2002, are as follows:

Fund Type/Fund Name

Deficit Balances

Governmental Fund Type General Fund Capital Projects Fund Georgia State Financing and Investment Commission

$ 313,496.07 $ 9,744.29

In the subsequent period, the School District increased the millage rate to eliminate the deficit in the General Fund. The School district anticipates using local funds to eliminate the deficit in the Capital Projects Fund.

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 of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe

- 16 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS
securities pledged to secure a pool of public funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of 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, 2002, the bank balances were $2,202,355.79. 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.)
- 17 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS

The School District's deposits are classified by risk category at June 30, 2002, as follows:

Risk Category

Bank Balance

I

$ 259,856.83

2

1,942,498.96

3

0.00

Total

$ 2,202,355.79

Note 3: NON-MONETARY TRANSACTIONS

The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories

Note 4: RISK MANAGEMENT

The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.

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

The School District has elected to self-insure for all losses related to acts of God. The School District has not experienced any losses related to this risk 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 reasonable estimated.

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

- 18 -

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

2001 2002

Beginning of Year Liability

Claims and Changes in Estimates

Claims Paid

End of Year Liability

$

0.00 $

1,224.00 $

0.00 $

1,224.00

$

1,224.00 $

1,288.00 $

2,016.00 $

496.00

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 $350,000.00 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% $ 765.000.00

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

General Obligation
Bonds

Balance July L 2001

$ 870,000.00

Deductions Debt Retired

105,000.00

Balance June 30, 2002

$ 765,000.00

- 19 -

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

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: GENERAL LONG-TERM DEBT

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

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008

$ 148,250.00 147,455.00 151,152.00 149,330.00 151,970.00 149,060.00

Total Principal and Interest

$ 897,217.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $132,442.65 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $116,075.65

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 $16,367.00

Note 7: SIGNIFICANT COMMITMENTS

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

- 20-

JENKINS COUNTY BOARD OF EDUCATION

EXHIBIT "F"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 7: SIGNIFICANT COMMITMENTS

Project

Unearned Executed Contracts

Funding Available From State

SA 0IS-682-147 Jenkins County Elementary School Additions

$ 191,269.71 $ 182,037.00 633,044.00

$ 8241313.Zl $ 1821037.00
The amounts described in this note are not reflected in the general-purpose financial statements.

Note 8: CONTINGENT LIABILITIES

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

Note 9: 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 of the School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 653,691.59 $ 735,243.24 $ 703,671.66

- 2I -

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

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

332,852.10 $

39,375 52

22,480.93

2,000 00

6,841.35 5,661 95

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

367,836.33 $ ===4=1=,3=75===52==

$

36,434 03 $

9,763.87

28,974 66

30,879.62

732 03

$

65,408 69 $

4137552

$

6,841.35

5,661.95

269,924.34 $

0.00

$

302,427 64 $

000

Total Liab1lit1es and Fund Equity
See notes to the general-purpose financial statements. - 22 -

$

367,636 33 $ ===4=1='3=75=5=2=

EXHIBIT"G"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

51,284.68 $

423,512.30 $

414,744.84

78,805.11

103,286 04

205,902.15

6,841.35 5,661.95

11,006 50 3,266 61

$

130,089 79 $

539,301 64 $ ==6=34='=9=20=.1=0=

$

47,395.49

$

34,829.62 $

81,027 52

32,193.09

94,082 89

153,937.17

126,638.16

55,812.48

1 177 28

1 909 31

1 401.60

$

130,089 79 $

236,874 00 $

263,440.82

$

$ _ _ _ _o_.o_o_

$

000 $

6,841.35 $ 5,661.95

11,006 50 3,266.61

289,924.34

357,206.17

302,427 64 $ _ _3_7_1,~4_79_2_8_

$

130,089 79 $

539,301.64 $ ==6=34='=92=0=.1=0=

- 23 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

55,486.00 $

369,992 76

672,109.66

69,340.28

$

796,935 94 $

369,992.76

$

293,820.50

59,196 85 26.80

15,475.00

$

864,217.77

21 91 40900 1,007 99
34 71

$

864,217 77 $

369,992 76

$

-67,281 83 $

0.00

$

-67,281 83 $

371,479.28

-4,165.15 2,395.34

000 000

FUND BALANCE JUNE 30

$

302,427.64 $====0==00==

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

EXHIBIT"H"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

425,478.76 $

378,154.43

$ 1,098,301 00

1,770,410.66

1,614,895.21

69,340.28

67,186.62

$ 1,098,301 00 $ 2,265,229.70 $ 2,060,236.26

$

902,724 82 $ 1, 196,545.32 $

986,165.22

44,167 75 88,361 59
40,17914
346 79 3,20517 19,317 70

103,364 60 88,388 39
55,654 14
368.70 3,614 17 20,325 69 864,252 48

86,497.91 179,538.82
6,420.32 60,170.93
4,65417 17,523.23
5,174.09 10,343 31 721,841 02

$ 1,098,302 96 $ 2,332,513 49 $ 2,078,329 02

$

-1 96 $

-67,283 79 $

-18,092 76

1 96

1.96

$

000 $

-67,281 83 $

-18,092 76

0.00

371,479.28

392,896.55

-4,16515 2,395.34

-3,472 78 148 27

$

000 $

302,427 64 $==3=7=1=4=79=28=

- 25 -

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

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Liabilities FUND EQUITY
Fund Balances Reserved For SPLOST ProJects Unreserved Deficit Undes1gnated Total Fund Equity

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

1,164 00

- - - - - - $ _ _____;;3.;:;.0,t.:.0.=.84.:..=.:00=--

$

1 164 oo $ ======3=01.o..=.a4=.oo====

$

16,508 29

$

1,048.00

116 00

21,035.00 2,285 00

$

1 164 00 $

39,828.29

$

-9,744.29

$

0 00

0.00

$

000 $

-9 744.29

Total Llab1ht1es and Fund Equity

$

1 164 00 $ ====30:!:,0=8=4=0==0

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

EXHIBIT"!"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 1,112,11813 $ 1, 113,282 13 $

572,341.80

98,764.60

128,848 60

97 40066

$ 1,210,882 73 $ 1,242,130 73 $ ==6=6=9=7'=42====46=

$

16,508 29

$

1,233 75

1,233 75

97,594 00

119,677 00

10,609 00

13 010 00

$

109436.75 $

150,429 04

$ 1,101,445.98 $ 1,101,445 98 $

669,742 46

0 00

-9,744.29 0 00

0.00

$ 1,101,445 98 $ 1,091,701.69 $ _ _6_6_9~,7_42_46_

$ 1,210,882 73 $ 1,242, 130 73 $ ===-66=9=7,=42==46=

- 27 -

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

REVENUES
State Funds Taxes Other Funds
Total Revenues EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under} Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures
FUND BALANCE JULY 1

REGULAR

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

30,084 00

$

000

$

000 $

30,084 00

$

6,250.00

$

145200

33,578.29

$

145200 $

39,828 29

$

-1,452.00 $

-9,744.29

145200

$

0.00 $

-9,744.29

0 00

0.00

FUND BALANCE JUNE 30

$

000 $===-~9=744=2=9=

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

EXHIBIT"J"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

30,084 OD

$

556,754.65

556,754 65 $

545,067 64

13,31162

13,311 62

13,691 16

$

570,066 27 $

600,150 27 $_-----'5;;..a5..;;;.8""-,7=58:;_8;;..:0;_

$

1,233.75 $

7,483 75 $

137,129.00

172,159 29

0.00

$

138,362.75 $

179,643 04 $ _ _ _ _o_oo_

$

431,703.52 $

420,507.23 $

558,758 80

1 452.00

$

431,703 52 $

421,959 23 $

558,758 80

669,742 46

669,742.46

110,983 66

$ 1,101,445 98 $ 1,091,701 69 $==6=6=9=,7=42==46=

- 29-

-- - - ---------
JENKINS COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPE - AGENCY FUND YEAR ENDED JUNE 30, 2002

EXHIBIT"K"

FAMILY CONNECTION ASSETS
Accounts Receivable
LIABILITIES Cash Overdraft

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$ 801000.00 $ 12,500.00 $

80,000 00 $

12,500.00

$ 80,000.00 $ 12,500.00 $

80,000 00 $==1=2=,5=00==00==

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

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

Agnculture, U S Department of Child NutntIon 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 Nutnlion Program Summer Food Service Program for Children

10 553 10 555
10 559

Total Child Nutnt1on Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food D1stnbut1on Program (1) Pass-Through From Office of School Readiness Food and NutntIon Program Child and Adult Care Food Program

10 550 10 558

Total U S Department of Agnculture

Education, U S Department of Speaal Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sab1hties Education Act Part B - Special Education Flow Through Capaaty Bu11d1ng Improvement Preschool

84 027 84 027 84173

Total Speaal Education Cluster

Other Programs Pass-Through From Georgia Department of Education Elementary and Secondary Education Act TIiie I Grants to Local Educational Agencies Tltlell Eisenhower Professional Development TIiie 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 D1stnct Regional Educational Service Agency d/bla Live Oak M,grant Education Agency Elementary and Secondary Education Act TiUe I M,grant Education

. 84 010
84 281 84 298 84 340 84 276 84186 84 048
84 011

Total U S Department of Education

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$ 131,636 73

NIA

488,336 82 $

NIA

4,774 94

$ 624,748 49 $

(2) 820,848 93 (3)
!2l 820,848 93

NIA

43,368 84

NIA

3,992 33

$ 672,109 66 $

43,368 84
121 864,217 77

NIA

$ 239,422 07 $

NIA

4,270 00

NIA

30,239 50

$ 273,931 57 $

239,422 07 4,270 00
30,239 50
273,931 57

NIA

528,835 27

528,835 27

NIA

17,500 00

17,500 00

NIA

16,180 00

16,180 00

NIA

79,172 00

79,173 96 (4)

NIA

50,000 00

50,000 00

NIA

28,709 59

28,709 59

NIA

39,265 00

39,265 00

NIA

19,707 57

19,707 57

$ 1,053,301 00 $

1,053,302 96

- 31 -

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

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

NIA

$ 45,000 00 $

45,000 00

Total Federal Finanaal Assistance
NIA = Not Available

$ 1,770,410 66 $ ==1,=96=2=,5=2=0=7=3

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food D1stnbut1on 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 Service Program for Children, Child and Adult Care Food Program and the School Breakfast Program were not maintained separately and are included in the 2002 National School Lunch Program
(3) Expenditures on this program/proiect were not maintained on a program/proJect basis (4) Expenditures for this program Indude State, and/or Other Funds
Expenditures are not maintained by fund source

Ma1or Programs are IdentIfied by an asterisk (*) in front of the CFDA number

The School Dlstnct did not provide Federal Assistance to any Subreap1ent

The accompanying schedule of expenditures of Federal awards includes the Federal grant actIvIty of the Jenkins County Board of Education and Is presented on the modified accrual basis of accounting which Is the basis of accounting used in the presentation of the general-purpose finanaal statements

See notes to the general-purpose financial statements

- 32 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Educabon, Georgia Department of Quality Basic Education Direct lnstructlonal Cost Kindergarten Program Kindergarten Program - Early lntervenbon Program Primary Grades (1-3) Program Primary Grades - Early lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Earty Intervention (4-5) Program Middle School (6-8) Program High School General Educabon (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sab11ibes Category II Category Ill Category IV Gifted Student - Category VI Remedial Educabon Program Altemabve Educabon Program 20 Days AddIbonal Instruction Media Center Program Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportabon Regular Bus Replacement Sparsity Grant Nursing Services Pnncipal Supplements Vocabonal Supervisors Mid-term AdJustment Hold-Harmless Deferred Summer Salanes (Current Year) Education Equahzallon Funding Grant Food Services Vocational Educabon Other State Programs Health Insurance Mentor Teachers Preschool Handicapped Program Statewide After School (4-8) Program Statewide Reading (K-3) Program Lottery Programs Ass1st1ve Technology Computers in the Classroom
Georgia State Financing and Investment Comm1ss1on Reimbursement on Construction ProJects
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Rebrement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$ 355,626 00 121,764 00 917,967 00 198,440 00 535,311 00
153,842 00 980,611 00 721,781 00 317,284 00
339,422 00 345,950 00 106,506 00
51,700 00 44,315 00 73,108 00 50,179 00 162,680 00 30,721 00 1,162,591 00

271,528 00 85,556 00 20,000 00 50,772 00 7,034 00 12,017 00 65,450 00
939,426 00 635,077 00
$ 29,352 00

55,486 00

116,075 65 1,071 00
30,974 00 17,397 00 23,442 46

6,997 19 78,652 00

$ 355,626 00 121,76400 917,96700 198,440 00 535,311 00
153,842 00 980,611 00 721,781 00 317,284 00
339,422 00 345,950 00 106,506 00
51,70000 44,315 00 73,108.00 50,17900 162,680 00 30,721 00 1,162,591 00
271,528 00 85,556 00 20,000 00 50,772 00 7,034 00 12,017 00 65,450 00
939,426 00 635,077 00
55,486 00 29,352 00
116,075 65 1,071 00
30,974 00 17,397 00 23,442 46
6,99719 78,652 00

$ 30,084 00 284,343 57 16,367 00

30,084.00 284,343 57
16,367 00

$ 8,991,337 11 $ 425,478 76 $ 30,084 00 $ 9,446,899 87

See notes to the general-purpose fina11C1al statements

- 33 -

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

SCHEDULE "3"

PROJECT
Construct approximately twelve (12) classrooms at Jenkins County Elementary School, construct approximately ten (10) classrooms at Jenkins County H,gh 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 tenms courts at Jenkins County High School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2)

AMOUNT EXPENDED IN CURRENT
YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

PROJECT STATUS

$ 2i711,ooo oo $ 2,711,00000 $ 138,362 75 $

0 00 Ongoing

(1) The School D1stnct's onginal cost estimate as speafied in the resolution calling for the ImposrtIon of the Local Option Sales Tax
(2) The School D1stnct's current estimate of total cost for the proiect Includes all cost from proJect InceptIon to completion
(3) The voters of Jenkins County approved the Impos1tion of a 1% sales tax to fund the above proJect Amounts expended for this proJect may include sales tax proceeds, state, local property taxes and/or other funds over the hfe of the proJect

See notes to the general-purpose financial statements

- 35 -

JENKINS COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE}
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early lntervenllon (4-5) Program Middle Grades (6-8) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1hlies Category 11 Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative 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

$

365,496 00 $ 433,957 22 $

-9,460 92 $

424,496 30

131,991 00

141,399 66

141,399 66

995,069 00 1,114,506 65

37,663 25

1,152,169 90

215,106 00

299,528 55

299,526 55

580,273 00

664,995 21

22,124 43

667,119 64

166,764 00
1,062,975 00 782,405 00 343,933 00 858,390 00
56,042 00 48,037 00 79,249 00

144,589 38 140,622 41 1,084,335 64 1,367,738 93 311,648 54
315,346 74 437,126 71
82,552 23 60,106.23 64,170 67 113,251 35

57,425 25 30,612 53 18,766 50
7,074 39 8,204 88
42 50 66 00
437 38

144,589 36 140,622 41 1,141,760 89 1,398,551 46 330,417 04
322,423 13 445,331 59
82,594 73 60,172 23 64,170 67 113,688 73

$

5,705,732 00 $ 6,775,878 14 $ 173,15819 $ 6,949,036.33

176,344 00 33,301 00

193,231 28 7,508 03

59,148 33 25,792 97

252,379 61 33,301 00

TOTAL QBE FORMULA FUNDS

s

5,915,377 00 $ 6,976,617 45 $ 258,099 49 S 7,234,716 94

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

See notes to the general-purpose financial statements

- 36 -

JENKINS COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDiTURES - BY SITE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

1,327,925 00 $

1,515,234.53

1,415,979 00

1,868,008 45

2,882,579.00

3,452,104 62

113,688 73

79,24900

$

5,705,732.00 $ ======6=,94=9='=036==3=3

See notes to the general-purpose financtal statements - 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

{USSELI. W. HINTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wm,hmgton Street, S W Suite 214 Atlanta, Georgia 30334-8400
July 24, 2003

Honorable Sonny Perdue, 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 TN 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, 2002, and have issued our report thereon dated July 24, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether 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 Financial 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
2002YB-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 of the internal control over financial reporting that, in our judgment, could adversely affect Jenkins County Board of Education'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 of Findings and Questioned Costs as items FS-6821-02-01 and FS-6821-02-02.
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, of the reportable conditions described above, we consider item FS-6821-0202 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:gp 2002YB-40

State Auditor

lussEI.L W. HINTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W. Suite 214 Atlanta, Georgia 30334-8400
July 24, 2003

Honorable Sonny Perdue, 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- I 33
Ladies and Gentlemen:
Compliance
We have audited the compliance ofJenkins County Board of Education with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each of its major Federal programs for the year ended June 30, 2002. 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 A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Jenkins County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Jenkins County Board of Education's compliance with those requirements.
2002SA-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, 2002.
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 ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the 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:gp 2002SA-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, 2002

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6821-00-02 FS-6821-00-03 FS-6821-01-01 FS-6821-01-02

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

CORRECTIVE ACTION/RESPONSES

GENERAL LEDGER Inadequate Internal Control Procedures Finding Control Number: FS-6821-01-01

In December 2001, Janet Fields was hired as Business Manager and immediately assumed responsibility for preparing all general journal entries with the exception of School Food Service. The superintendent reviews and approves all journal entries prepared by the business manager. School Food Service journal entries are prepared by Patricia McLeod, Bookkeeper for SFS, but were not reviewed or approved in Fiscal Year 2002. Janet Fields has currently assumed responsibility for approving all SFS journal entries.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6821-01-02

The School District is participating in a fixed assets consortium through CSRA RESA. Bar coding and cataloging of the fixed assets was completed in 2003.

SECTION IV FINDINGS AND QUESTIONED COSTS

JENKINS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the 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 0(a) of 0MB Circular A-133 The Jenkins County Board of Education'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.

- 1-

----- ----------------------
JENKINS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
I SUMMARY 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 of 0MB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Inadequate Internal Control Procedures Reportable Condition Repeated From Prior Year Finding Control Number: FS-6821-02-0 I
A review of the School District's internal control policies and procedures noted deficiencies in providing for adequate internal control in the separation of duties over the journal entry process. School Food Service Fund journal entries were not reviewed and approved by someone independent ofthe general ledger journal entry function. This condition was a result ofmanagement's decision to limit the number of administrative staff made responsible for accounting functions and their failure to institute proper compensating internal controls over this area. The School District should review the accounting procedures in place, design procedures that would enhance segregation ofduties 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 Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6821-02-02
The Jenkins County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements ofthe School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance ofa General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.
-2-