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

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LAMAR COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATIONSCHEDULE 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 NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

29

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

30

2 SCHEDULE OF STATE REVENUE

32

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

LAMAR COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDIDONAL FINANCIAL INFORMATION

SCHEDULES

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 O:MB CIRCULAR A-133

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

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

SECTION I FINANCIAL

Rus~i,:u W. H1N roN
STAlE AUDITOR
(404) 6'i~ 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wm,hmgton S1rcet, S W, Suite 214 Atlanta, Georgia 30334-8400
April2,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lamar 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 ofthe Lamar 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 ofthe Lamar County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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 ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opm1on.
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

ofr
* The general-purpose financial statements 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, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002. Also funds received, subsequent to June 30, 2002, 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, 2001, were improperly recorded in the year ended June 30, 2002. 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 ofthe Lamar County Board ofEducation as of June 30, 2002, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 2, 2003, on our consideration ofthe Lamar 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 Lamar County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. -Such information-has been subjected to the auditing
2002ARL-13

procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 2002ARL-13

State Auditor

LAMAR COUNTY BOARD OF EDUCATION

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

Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commod1t1es Purchased Food
Amount Available In Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt Capital Lease Agreements

GENERAL FUND

GOVERNMENTALFUNDTYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 124,553 00 $ 1,475,363.36

$ 4,464,584.03

4,978,880 29

357,710 01

63,853.36

236,386 91

16,620.36 9,482.62

Total Assets

$ 4,822,294 04 $ 214,509 34 $ 6,690,630 56

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable
Total L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For Debt Service For lnventones Food Donated Commodities Purchased Food For Purpose of Bond Issue For SPLOST ProJects Unreserved Undesignated
Total Fund Equity

$

232,809 30

38,326 77 $

37,379.59

120,009.65

876 93

$

271,136 07 $ 158,266.17

$
$ 4,551,157 97 $ 4,551,157.97 $

16,620.36 9,482 62 $
30 140 19
56,243.17 $

3,774,747 59 2,010,660 78
905,222 19
6,690,630 56

Total L1ab1hbes and Fund Equity

$ 4,822,294.04 $

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

214,509 34 $ 6,690,630 56

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum Onl~l

JUNE 30, 2002

JUNE 30, 2001

$ 1,151,013 67

$ 2,750,930.03 $ 2,272,193 33

118,418 71

9,561,883 03

4,459,91816

4 51

657,954 79

610,384 48

$

1,269,436.89

16,620 36 9,482 62
1,269,436 89

17,101 52 14,193 85
1,195,190 60

7,585,56311

7,585,563 11

3,839,809 40 16 404 80

$ 1,269,436 89 $

8,855,000.00 $ 21,851,870 83 $ 12,425,19614

$

232,809 30 $

29,491 96

75,706 36

216,569 11

120,009 65

114,848 91

430 26

876 93

16,404 80

$

8,855,000 00

8,855,000.00

5,035,000 00

$

8,855,000 00 $ 9,284,402 24 $ 5,412,745.04

$ 1,269,436 89
000 $ 1,269,436 89

$ 1,269,436 89 $ 1,195,190 60

16,620.36 9,482 62
3,774,747 59 2,010,660 78
5,486,520 35
$ 12,567,468 59 $

17,101 52 14,193 85 1,068,593.45 4 717 371 68
7,012,451 10

$ 1,269,436 89 $

8,855,000.00 $ 21,851,870 83 $ 12,425,19614

-3-

LAMAR 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 Adm1mstrat1on School Admin1strat1on Business Adm1mstratton Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
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 Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 10,548,623 41 $
4,616,678.14 356,489.04
$ 15,521,790 59 $

506,17618 1,765,741 37
302,599.60
2,574,517 15

$ 9,600,946 65 $ 1,041,697.94

486,173 37 392,145 92 341,677 87 335,83417 898,741.08 132,639 28 1,075,061 48 1,029,010 67 257,092 12
39,710 16 69,158 66 66,590 45 15,023 72

179,249 07 123,318 91
51,106 55 32,377 80
5,984 86 35,035 10
4,434 68 57,092 18 1,059,202.88

16,404 80 58520

$ 14,756,795 60 $

$

764,994 99 $

2,589,499 97 -14,982.82

$

$

-236 04

$

-236 04 $

$

764,758 95 $

3,786,399 02

23604
23604
-14,746 78 76,182.34
-481.16 -4 711.23

FUND BALANCE JUNE 30

$ 4,551,157.97 $ ==-==56=2=4=3=1=7=

The notes to the general-purpose financ:al 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

$

999,514 20 $

61,205 00

$ 1,060,719 20 $

$
301,680 41 18 474 70

11,054,799 59 $ 1,765,741 37 5,917,872 75 738,768 34

10,449,412.73 1,723,255.92 5,624,657.07 848,498 94

320,15511 $ 19,477,182 05 $ 18,645,824 66

$ 10,642,644.59 $ 10,070,464.24

$

49,000 00

84,677 00

665,422 44 515,464 83 392,784 42 368,211.97 898,741 08 181,639 28 1,081,046 34 1,064,045 77 261,526 80
96,802 34 1,128,361.54
66,590 45 99,700.72

555,742 64 495,116.02 371,507 60 314,622 56 970,556.20 143,188 73 1,107,639 55 985,474 93
97,780 76 149,411.59 1,169,853 89
69,066 77 539,037 30

$

180,000 00

256,337 10

662 50

196,404 80 256,922 30
662 50

190,459 99 263,202.50
662 50

$

133 677 00 $

436,999 60 $ 17,916,972 17 $ 17,493,787.77

$

927,042 20 $

-116 844 49 $ 1,560,209 88 $ 1,152,036 89

$ 3,808,909.22 $ $ 3,808,909 22 $

191,090 78 $ 19109078 $

4,000,000 00 236 04 $ -236 04
4,000,000 00 $

15942 -15942
0 00

$ 4,735,951 42 $

74,246.29 $ 5,560,209 88 $ 1,152,036 89

1,954,679 14

1,195,190.60

7,012,451 10

5,861,334.68

-481 16 -4 711 23

-3,594 51 2 674 04

$ 6,690,630.56 $ 1,269,43689 $ 12,567,46859 $ 7,012,45110 -5-

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

EXHIBIT"C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 10,444,966 94 $ 10,548,623 41

4,535,505 1,7 168 200 00

4,616,678 14 356 489 04

Total Revenues EXPENDITURES

$ 15,148,672 11 $ 15,521,790 59

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrallon School Adm1mstratIon Business Adm1mstrallon Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
Capital Outlay Debt Service
Total Expenditures
Excess of Revenues over (under) Expenditures

$ 9,906,310 53 $ 9,600,946 65

479,632 84 344,143 40 326,887 07 335,098 55 923,979 42 136,301 01 1,069,939 41 1,085,956 58 294,319 70
34,250 00 60,947 08
137,729 00

486,173 37 392,145 92 341,677 87 335,834 17 898,741 08 132,639 28 1,075,061 48 1,029,010 67 257,092 12
39,710 16 69,158 66 66,590 45 15,023 72 16 990 00

$ 15,135,494 59 $ 14,756,795 60

$

13 177 52 $

764 994 99

OTHER FINANCING SO!,!RCES (Ul,;;ES)

Other Sources Other Uses

$

-236 04

Total Other Financmg Sources (Uses)

$

-236 04

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

13,177 52 $

764,758 95

FUND BALANCE JULY 1 2001

3,583,181 93

3,786,399 02

AdJustments Food Inventory - Net Change In Penod
Donated Commodrttes Purchased Food

-25,000 00

FUND BALANCE JUN~ 30 2002

$ 315711359 45 $ 4 551 157 97

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 480,644 80 $ 506,176 18

1,728,593 00

1,765,741 37

326,653 22

302,59960

$ 2,535,891 02 $ 2 574 517 15

$ 969,859 84 $ 1,041,697 94

148,315 00 152,907 40
38,500 00 39,861 00

179.249 07 123,318 91
51,106 55 32,377 80

1,828 36 28,405 75
4,15000 83,177 45 1,082,063 74

5,984 86 35,035 10
4,434 68 57,092 18 1,059,202 88

$ 2,549,068 54 $ 2,589,499 97 $ -1317752 $ -14 982 82

$

23604

$

236 04

$ -13,177 52 $ 87,214 54 14,301 42

-14,746 78 76,182 34
-481 16 -4 71123

$ 88 338 44 $

56 243 17

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

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Lamar County Board ofEducation (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.

- 8-

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of 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.

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.

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.

Governmental funds are accounted for using the modified accrual basis ofaccounting 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 year-

end 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

tlitffiscal year in which all eligibility requirements have been satisfied.-

-

-

-9-

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 2002, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. 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, 2002, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made. Payments for these. two months were made and recorded as expenditures by the School District subsequent to June 30, 2002. Also, the State's portion ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2001, were recorded in the year ended June 30, 2002. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Lamar County Board ofEducation'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 of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial
- 10 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY-OF SIGNIFICANT ACCOUNTING POLICIES
institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofretum shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the followjng:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the nee.d for an allowance for uncollec-tib.le receiva-bles.-

- 11 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

PROPERTY TAXES

The Lamar County Board of Commissioners fixed the property tax levy for the 200 l tax digest year (calendar year) on October 31, 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 Lamar County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to-the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $4,457,572.43 and for school bonds amounted to $293.10.

The tax millage rate levied for the 2001 tax year (calendar year) for the Lamar County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

14.13 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $1,300,901.51 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 ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

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 Accout Group. __

- 12 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent of the public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

- 13 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS

(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 BanJc, the Federal Home Loan BanJc, the Federal Intermediate Credit BanJc, the Central BanJc for Cooperatives, the Farm Credit BanJcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS . At June 30, 2002, the banJc balances were $8,076,498.71. The amounts ofthe total banJc 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 banJc balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

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

Risk Category

BanJc Balance

1

$ 1,651,013.67

2

6,425,485.04

3

0.00

Total

$ 8,076,498.71

CATEGORIZATION OF INVESTMENTS
At June ~O, 2002, the carrying value of the School District'~- t~tal investments ~as $5_,54Q,374.48
which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and

- 14 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2: DEPOSITS AND INVESTMENTS
Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.
Investments in Georgia Fund 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2002, was 0.12 years. The average investment duration for Fund 6 on June 30, 2002, was 0. 75 years.
Note 3: NON-MONETARY TRANSACTIONS
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federally assigned value. See Note 1 - Inventories
Note 4: RISK MANAGEMENT
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions; job related illness or injuries to employees; acts of God and unemployment compensation.

- 15 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4: RISK MANAGEMENT

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

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

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

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

Beginning of Year Liab1hty

Claims and Changes in Estimates

Claims Paid

End of Year Liability

2001 2002

$

0.00 $

744.00 $

744.00 $

0.00

$

0.00 $

1,082.00 $

1,082.00 $

0.00

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

Position Covered

Amount

Superintendent School Food Services Director Director of Finance Each School Bookkeeper Director of Pre-Kindergarten Program After School Program Director Each Principal Each Lunchroom Manager After School Program Bookkeeper

$ 50,000.00 $ 50,000.00 $ 50,000.00 $ 50,000.00 $ 25,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00 $ 10,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Lamar County Board of Education has entered into a lease agreement as lessee for equipment. This lease agreement qualified as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments as of the date of its inception.

-- 16 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

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 1995 General Government - Series 2002

3.85%-5.40% 3.82%

$ 4,855,000.00 4,000,000.00

$ 8,855,000.00

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

Capital Leases

General Obligation
Bonds

Total

Balance July 1, 2001

$ 16,404.80 $5,035,000.00 $ 5,051,404.80

Additions G.O. Bonds

4,000,000.00 4,000,000.00

Deductions Debt Retired

16,404.80

180,000.00

196,404.80

Balance June 30, 2002

$======'o~.o==o $ s,sss,000.00 $ s,855,ooo.oo

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
2003 2004 2005 2006 2007 2008 - 2012 2013 - 2016

General Obligation
Bonds
$ 570,719.17 622,250.00
1,416,785.00 1,485,090.00 1,638,793.50 3,882,162.50 2,101,770.00

Total Principal and Interest

$11,717,570.17

- 17 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 6: ON-BEHALF PAYMENTS
The School District has recognized revenues and expenditures in the amount of $168,178.91 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 $138,645.91
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 $29,533.00
Note 7: 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.
The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.
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.

- 18 -

LAMAR COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 8: RETIREMENT PLANS

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

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 860,450.26 $ 1,005,636.66 $ 939,553.36

- 19 -

LAMAR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

62,795.70 $

50,538.92

0.13

16,620.36 91482.62

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

$

88.898.68 $ ............=5=0=53=9=.0=5=

$

2,774.54 $

10,608.21

29,880.97

39,930.84

$

32.655.51 $

50.539 05

$

16,620.36

9,482.62

30 140.19 $

0.00

$

56.24317 $

0.00

$

88,898.68 $-==5=0'=53=9=.0=5=>

See notes to the general-purpose financial statements. - 20-

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 301 2001

$

11,218.38 $

124,553.00 $

139,428.31

63,853.23

63,853.36

87,463.81

16,620.36 9,482.62

17,101.52 14,193.85

$

75 071.61 $

214,509.34 $ ====2=5=8=1'=87=49=

$

23,996.84 $

37,379.59 $

66,725.98

50,197.84

120,009.65

114,848 91

430.26

876.93

876.93

$

75 071.61 $

158,266.17 $

182.005.15

$

$ _____,;o;;.;..o=o~

$

0.00 $

16,620.36 $ 9,482.62

17,101.52 14,193.85

44,886.97

56.243.17 $ _ _...;.7..;:;.6,L.:.1=82=.34;;..a...

$

75 071.61 $

214,509.34 $ ====2=5=8=1'=87=.4=9=

- 21 -

LAMAR 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 Maintenance and Operation of Plant Student Transportation Services Central Support 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
FUND BALANCE JUNE 30
See notes to the general-purpose financtal statements.
- 22 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

75,954.00 $

663,163.10

302,599.60

$ 1,041,716.70 $

430,222.18 430,222.18

$

340,956.91

50,816.00

5,984.86 29,765.15

$ 1,056,463.48

$ 1,056,463.48 $

$

-14,746.78 $

2 73940 430,262 32
-40.14

$

-14,746.78 $

76,182.34

-481.16 -4 711.23

40.14
0.00 0.00

$

56,243.17 s====o=o=o=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2002

JUNE 30, 2001

$

506,17618 $

459,799.72

$ 1,102,578.27

1,765,741.37

1,723,255.92

302,599.60

272,381.90

$ 1,102,578 27 $ 2,574,517.15 $ 2,455,437.54

$

700,741 03 $ 1,041,697.94 $ 1,025,246 86

128,433.07 123,318 91
51,106 55 32,377 80
5,269 95 4,434 68 57,092.18

179,249.07 123,318 91
51,106.55 32,377.80
5,984.86 35,035.10 4,434.68 57,092.18 1,059,202.88

141,836.80 91,374.25 34,896.08 38,949.69 6,871 42 16,306.84 11,622.75 93,265.57
1,063,289.94

$ 1,102,774.17 $ 2,589,499.97 $ 2,523,660 20

$

-195.90 $

-14,982.82 $

-68,222.66

195 90

236.04

159.42

$

0 00 $

-14,746.78 $

-68,063.24

0.00

76,182.34

145,166.05

-481.16 -4 711.23

-3,594 51 2 674.04

$

0.00 $

56,243.17 $ ===7=6=1'=82==34=-

- 23-

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reseived For Purposes of Bond Issue For SPLOST Projects
Unreseived Undesignated
Total Fund Equity

REGULAR

BOND PROCEEDS

$

103,516.73 $

213,826.92

801,705 46

3,560,920.67

$

905,222.19 $ 3,774,747.59

$ 3,774,747.59

$ _ _9_0_5_,2_22_._19_

0 00

$

905,222.19 $ 3,774,747 59

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

EXHIBIT"G"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$ 1,158,019.71 $ 1,475,363.36 $ 1,068,931.70

616,254.16

4,978,880.29

782,568.96

236,386.91

236,386.91

103,178.48

$ 2,010,660.78 $ 6,690,630.56 $ 1,954,679.14

$ 3,774,747.59

$ 2,010,660.78

2,010,660.78 $ 1,068,593.45

0.00

905,222.19

886,085 69

$ 2,010,660 78 $ 6,690,630.56 $ 1,954,679.14

- 25-

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

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Administration
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obligation Bonds Par Value
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
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

19,136.50 $ -- 14,838.37

$

19,136.50 $

14,838.37

$

0.00 $

49,000.00

$

0.00 $

49,000.00

$

19,136.50 $

-34, 161.63

$ 3,808,909.22

$ 3,808,909 22

$

19,136.50 $ 3,774,747.59

886,085.69

0.00

$

905,222.19 $ 3,774,747.59

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

EXHIBIT"H"

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$

999,514.20 $

999,514.20 $

584,152.89

27,230.13

61,205.00

93,551.24

$ 1,026,744.33 $ 1,060,719.20 $ _ _6_7_7_,7_04_13_

$

49,000.00

$

84,677.00

$ 84,677.00

26,740 00 332,823 00

$

84 677.00 $

133,677.00 $

359,563.00

$

942,067 33 $

927,042.20 $

318,141.13

$ 3,808,909.22 $
$ 3,808,909.22 $

528,458.28 -528,458.28
0.00

$

942,067.33 $ 4,735,951.42 $

318,141.13

1,068,593.45

1,954,679.14

1,636,538.01

$ 2,010,660.78 $ 6,690,630.56 $ 1,954,679.14

- 27 -

------------------
LAMAR COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2002

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 301 2002

JUNE 30, 2001

$

2,269.67 $ 1,148,744 00 $ 1,151,013.67 $ 1,063,833.32

118,418 71

118,418.71

"-

4.51

4 51

131,357.28

Total Assets

$

2,274.18 $ 1,267,162 71 $ 1,269A36 89 $ 1,195,190 60

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undesignated

$

2,27418 $ 1,267,162 71 $ 1,269,436 89 $ 1,195,190 60

000

000

000

000

Total Fund Equity

$

2 27418 $ 1,267,162 71 $ 1,269,436 89 $ 1, 195, 190 60

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

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

EXHIBIT "J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Pnncipal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Proceeds from General Obligation Bonds Par Value
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$

29310 $ 301,387.31 $ 301,680.41 $ 744,145 88

18 474 70

18 474 70

37,983 76

$

29310 $ 319,862 01 $ 320,155 11 $ 782,129.64

$

0.00 $ 180,000.00 $ 180,000 00 $ 160,000 00

256,337.10

256,337 10

263,202 50

662 50

662 50

662 50

$

000 $ 436 999 60 $ 436,999 60 $ 423,865.00

$

29310 $ -117, 137.59 $ -116,84449 $ 358,264 64

191 090 78

191,090 78

$

293.10 $

73,953 19 $

74,246.29 $ 358,264.64

1,981 OB

1,193,209 52

1,195,190 60

836,925 96

FUND BALANCE JUNE 30

$ 2,27418 $ 1,267,162.71 $ 1.269,43689 $ 1,195,19060

See notes to the general-purpose financial statements

- 29-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agnculture, U. S. Department of Child Nutnllon Cluster Pass-Through From Georgia Department of Education Food and Nutntlon Program Food Services School Breakfast Program Nabonal School Lunch Program
Total Child Nutrition Cluster
Other Programs Pass-Through From Georgia Department of Educabon Food and Nutrition Program Food D1stnbut1on Program (1)
Total U. S Department of Agnculture
Education, U S Department of Special Education Cluster Pass-Through From Georgia Department of Education lndlVlduals with D1sab1hties Education Act Part B - Special Education Flow Through Preschool Capacity Building Improvement
Total Special Education Cluster
Other Programs Pass-Through From Georgia Department of Educabon Elementary and Secondary Educabon Act Title I Grants to Local Educational Agencies TIiie II Eisenhower Professional Development TIiie Ill Technology Literacy ChaUenge Fund Grants TrtleVI Innovative Educabon Program Strategies Class Size ReductJon Goals2000 State and Local Education Systemic Improvement Grants Safe and Drug-Free Schools and Communities Vocabonal Educabon - Basic Grants to States High School Program Basic Grant
Total U S Department of Educatton
Health and Human Services, U S Department of Pass-Through From Children and Youth Coordinating Council Abstinence Educabon Grant

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

$ 137,TTS 57

(2)

NIA

470,805.16 $

1,001,882 11 (3)

$ 608,581.73 $

1,001,882 11

10 550

NIA

54,581 37

54,581.37

$ 663,16310 $

1,056,463 48

84027 84 f73 84027

NIA

$ 205,632 02 $

NIA

24,824 00

NIA

1,029.00

$ 231,485 02 $

205,632 02 24,824 00 1,02900
231,485 02

. 84010 84 281 84.318 84.298 84 340
84.276 84.186
84.048

NIA

530,740 21

NIA

10,544.52

NIA

130,917.70

NIA

13,209 51

NIA

75,461 23

530,74021 10,544 52
130,937 68 (3) 13,209 51 75,461.23

NIA

13,470 49

NIA

40,985 66

13,47049 40,98566

NIA

35,513 00

35,513.00

$ 1,082,327.34 $

1,082,347 32

93235

NIA

$ 20,25093 $

20,426 85 (3)

Total Federal Financial Assistance
NIA = Not Available

- 30-

$ 1,765,741 37 $

2,159,237 65

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

SCHEDULE "1"

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 commod1bes received and/or consumed by the system dunng the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are induded 1n the 2002 National School Lunch Program.
(3) Expenditures for this program mdude State, and/or Other Funds Expenditures are not maintained by fund source.
Major Programs are identified by an astensk (*) in front of the CFDA number.
The School Olstnct did not provide Federal Assistance to any Subreapient.
The accompanying schedule of expenditures of Federal awards mdudes the Federal grant activity of the Lamar County Board of Educabon and is presented on the modrfied accrual basis of accounting which is the basis of accounllng used m the presentation of the general-purpose finanaal statements.

See notes to the general-purpose financial statements.

- 31 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Governor's Emergency Funds (1) Local Assistance Grant
Educalton, Georgia Department of Quality Bas,c Educalton Direct Instructional Cost Kindergarten Program Kindergarten Program - Earty Intervention Program Pnmary Grades (1-3) Program Pnmary Grades - Earty Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades Earty lntervenlton (4-5) Program Middle School (6-8) Program High School General Educalton (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1hties Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Special Education Supplemental Speech Media Center Program 20 Days Add1bonal Instruction Staff and Professional Development Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Pnncpal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocahonal Education Other State Programs After School Program Health Insurance Mentor Teachers Preschool Handicapped Program Post Secondary Option Reading Program Statewide Local Education Improvement Student Achievement Youth Apprenbcesh1p Program Lottery Programs Assist1ve Technology Computers 1n the Classroom

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

10,000.00

3,75000

$

10,000 00

3,750 00

526,639 00 50,272.00
1,561,495 00 115,956 00 760,965.00 292,415 00
1,403,036 00 946,801.00 480,564 00
15,808 00 147,000 00 390,076 00 87,345 00
11,594 00 85,578 00 30,210 00 105,032 00
6,093 00 1,033.00 229,784 00 71,573 00 41,526 00 1,479,11500

526,639 00 50,272.00
1,561,495 00 115,956 00 760,965.00 292,415.00
1,403,036 00 946,801 00 480,564 00
15,808.00 147,000 00 390,076 00
87,345 00 11,594 00 85,578 00 30,210 00 105,032 00 6,093 00
1,033 00 229,784 00
71,573 00 41,526 00 1,479,115 00

469,608 00 121,621 00
35,889 00 66,841 00 10,267 00 20,440 00 636,237 00
$ 75,954 00 16,503 14
13,099 06 138,645 91
3,366 00 28,655 00
3,069.00 33,198 97 27,053 04
5,388.24 1,999.02
5,233 25 64,175 00

469,608 00 121,621 00
35,889 00 66,841.00 10,267 00 20,440 00 636,237.00 75,954 00 16,503 14
13,099 06 138,645 91
3,366 00 28,655 00
3,069.00 33,198 97 27,053 04
5,388.24 1,999.02
5,233.25 64,175.00

- 32 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Northwest Georgia RESA lntenSJVe Serv1ce/School Improvement
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Pubhc School Employees Re!Jrement
Pubhc Safety, Georgia Department of Teenage Defensive Driving lnrt1at1ve

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

20,000 00

$

20,000 00

$ 360,813.93

360,813.93

29,533 00

29,533 00

13,550 03

13,550.03

$ 10,548,62341 $ 506,17618 $ 11,054,79959

(1) The purpose of the funds is to provide assistance wrth the purchase of band unrfonns for Lamar County High School

See notes to the general-purpose finanaal statements.

- 33 -

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

SCHEDULE "3"

PROJECT
Retinng a portion of the Senes 1995 General Obligabon Bonds from August, 1998 through and indudlng February, 2003 and, to the extent that funds are available, funding an esaow account to retire add1t1onal porbons of the Bonds
Remodeling, renovating, improving and equipping existing dassrooms, instructlonal and support space and grounds at eX1sbng school d1stnd faallties, mdudmg re-roofing and replacing the HVAC system at the high school, acquinng any necessary personal property, including technology equipment and furnishings for the middle school and paying any expenses madent thereto

ORIGINAL ESTIMATED
COST(1)

CURRENT ESTIMATED COSTS(2)

AMOUNT EXPENDED IN CURRENT
YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARS(3)

PROJECT STATUS

$ 5,100,000 00 $ 5,100,000.00 $ 436,33710 $ 1,184,71912 Ongoing

4,000,000 00 4,000,000 00

84,677 00 2,558,121 91 Ongoing

$ 9,100,00000 $ 9,100,00000 $ 521,01410 $ 3,742,841.03

(1) The School D1stnd's ongmal cost esbmate as speafied m the resolution calling for the 1mpos1bon of the Local Option Sales Tax
(2) The School D1stnct's current esbmate of total cost for the projects Includes all cost from projed inception to complebon
(3) The voters of Lamar County approved the 1mpos1t1on of a 1% sales tax to fund the above projeds. Amounts expended for these projects may mdude sales tax proceeds, state, local property taxes and/or other funds over the life of the prOJecls

See notes to the general-purpose financial statements

- 35-

LAMAR 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 Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sabllltles Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

611,980 00 $ 641,76079 $ 11,836.24 $ 653,597 03

58,418.00

166,690 26

2,264 96

168,955 22

1,814,532.00 1,597,729 28

59,727 09

1,657,456 37

134,746.00

246,292.42

1,055 14

247,347 56

883,500.00 1,117,158.64

32,655.17

1,149,813.81

340,578 00 1,630,395 00 1,100,228.00
558,439.00 758,650 00
99,445 00 35,105 00 122,052 00
7,080 00

158,074.46 1,557,715.00 1,445,505.87
462,920.22
221,905 52 648,580 82
13,624.12 101,769 26
13,633 62 53,806.50

1,682 86 91,316 41 70,441.05 66,421.52
4,473.38 7,282.62
1,206 57 2,213 49 61,293.52

159,757.32 1,649,031 41 1,515,946 92
529,341.74
226,378.90 655,863.44
13,624.12 102,975 83
15,847 11 115,100.02

$

8,155,148.00 $ 8,447,166 78 $ 413,870 02 $ 8,861,036.80

267,019 00 48,256.00

279,568 86 13,167 05

58,274.65 36,324 45

337,843 51 49,491 50

TOTAL QBE FORMULA FUNDS

$

8,470,423 00 $ 8.739,902.69 $ 508,469.12 $ 9,248,371.81

(1) Compnsed of State Funds plus Local Five MIii Share.

See notes to the general-purpose financial statements.

- 36-

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

SCHEDULE "5"

Lamar County Comprehensive High School Lamar County Primary/Elementary School Lamar County Middle 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

$

1,988,399.00 $ 2,318,678.91

4,249,399.00

4,557,528.94

1,795,298.00

1,923,535.43

122,052.00

61,293.52

$

8,155,148.00 $ ===8=,8-6=1,=03=6=.8=0

See notes to the general-purpose financial statements. - 37 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

RussELL W. H1N roN
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton Street. S W, Suite 214 Atlanta, Georgia 30334-8400
April 2, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lamar 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 ofLamar County Board ofEducation as ofand for the year ended June 30, 2002, and have issued our report thereon dated April 2, 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 Lamar 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 ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Lamar County Board of Education's internal conf!ol over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Lamar County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6851-02-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6851-02-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Lamar 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-41

State Auditor

w. RliSSl,.LI.

HtNTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa~hmgton Street. S W, Suite 214 Atlanta. Georgia 30334-8400
April2,2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lamar 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 ofLamar County Board ofEducation with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. Lamar County Board of Education's major Federal program is identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements oflaws, regulations, contracts and grants applicable to its major Federal program is the responsibility of Lamar County Board of Education's management. Our responsibility is to express an opinion on Lamar County Board ofEducation's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General 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 Lamar 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 Lamar County Board of Education's compliance with those requirements.
2002SA-10

In our opinion, the Lamar County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of Lamar 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 Lamar 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 ofthe management, members ofthe Lamar County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,

RWH:gp 2002SA-10

State Auditor

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

LAMAR 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-6851-00-01 FS-6851-01-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6851-01-01

At this time, we plan to institute accounting for General Fixed Assets as required by GAAP during fiscal year 2003. We understand that this condition will continue to constitute a material weakness finding in the future audit reports until this plan is implemented.

SECTION IV FINDINGS AND QUESTIONED COSTS

LAMAR 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 Lamar 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 Lamar County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Lamar County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Lamar 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 Lamar County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .5 lO(a) of 0MB Circular A-133 The Lamar County Board ofEducation's audit did not disclose audit findings required to be reported by section .SIO(a) ofOMB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 84.010 Elementary and Secondary Education Act - Title I- Grants to Local Educational Agencies
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Lamar County Board ofEducation qualified as a low risk auditee as defined by Section .530 of 0MB Circular A-133.
- 1-

LAMAR COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Repeated From Prior Year Finding Control Number: FS-6851-02-01 The Lamar 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 of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. Management's Response: Accounting for General Fixed Assets as required by GAAP is being instituted during fiscal year 2003. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2-