Lanier County Board of Education, Lakeland, Georgia, report on audit of the financial statements for the fiscal year ended June 30, 2001

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LANIER 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 EXPENDITIJRES 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, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES .

4

C

COMBINED STATEMENT OF REVENUES,.EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING AND INDNIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

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

I

FIDUCIARY FUND TYPE

STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUND

28

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

29

2 SCHEDULE OF STATE REVENUE

31

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

LANIER COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

SECTIONil
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

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street. S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members of the Lanier 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-pwpose financial statements ofthe Lanier County Board

of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These

general-purpose financial statements are the responsibility ofthe Lanier County Board ofEducation's

management. Our responsibility is to express an opinion on these general-pwpose financial

statements based on our audit.



We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

As described in the notes to the general-pwpose 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:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended
June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Lanier County Board ofEducation as of June 30, 2001, 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 June 4, 2002, on our consideration ofthe Lanier County Board ofEducation's.internal control over financial reporting and our tests ofits compliance with certain provisions oflaws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Lanier County Board of Education taken as a whole. The accompanying
n combining and individual fund statements (Exhibits E through and the financial schedules
(Schedules I through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office of Management and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part ofthe general-purpose financial statements. Such information has been subjected to the
2001ARL-13

auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-pwpose 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:as 2001ARL-13

State Auditor

LANIER COUNTY BOARD OF EDUCATION

LANIER COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount to be Provided in Future Years For Payment of Capital Lease Agreements

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

$

177,036.79 $

160,089.46 $

7,222.95

700,150.00

82,856.27

150,579.44

97,532.44

4,123.38 1,316.78

Total Assets

$

960,043.06 $

316,109.06 $==1=04===,7=55==39=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Short Term Debt Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Deficit Undesignated
Total Fund Equity

$

65,789.51 $

92,699.88

7,760.44

104,279.21

737,000.00

$ 1,389,965.52

22,393.81

1,279.28

5,000.00

$

810,549.95 $ 220,652.18 $ 1,394,965.52

$

105,047.74

$

4,123.38

1,316.78

44 445.37

$ -1,290,210.13 90,016.72

$

149 493.11 $

95,456.88 $ -1,290,210.13

Total Liabilities and Fund Equity

$

960,043.06 $

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

316,109.06 $_=104"""=,7,..55_._39=

EXHIBIT"A"

FIDUCIARY FUND TYPE AGENCY FUND

$

46,840.68

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

{Memorandum OnM

JUNE 30, 2001

JUNE 30, 2000

$

344,349.20 $

290,962.56

700,150.00

950,000.00

377,808.83

569,080.75

- - - - - $ _ _--=26=2:a.:,3=55=.6=7-

4,123.38 1,316.78
262,355.67

3,708.49 755.83
199,726.61

$

262,355.67 $ 1,690,103.86 $ 2p14,234.24

$

34,083.69

7,800.99

4,956.00 $

$

46,840.68 $

$
262,355.67 262,355.67 $

34,083.69 166,290.38 $ 112,039.65 2,126,965.52 22,393.81
5,000.00 1,279.28 4,956.00 262,355.67
2,735,364.00 $

133,680.96 115,801.89 1,290,821.59
5,156.21 222,375.71
80,879.99
199,726.61
2,048,442.96

$

0.00

$

0.00

$

46 840.68 $

$

105,047.74 $

70,643.74 1,151.68

4,123.38 1,316.78
-1,290,210.13 134,462.09
$ -1.045,260.14 $

3,708.49 755.83
-221,104.50 110,636.04
-34.208.72

-3-

LANIER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30. 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations Community Services Operations
Capital Outlay Debt Service
Principal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Capital Leases Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 - Restated (See Note 1)
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 6,460,760.20 $

385,908.84

16,038.06

1,454,828.97

1,445,342.86

129,950.19

176,038.37

$ 8,052,091.31 $ 2,016,776.18

$ 5,274,624.55 $

904,375.68

353,857.23 198,381.29 203,243.32 258,492.31 555,509.31 344,649.68 516,120.67 235,139.94
5,410.78
23,387.00

135,663.63 170,425.76
12,470.99 82,041.25
14,088.85 16,532.86 2,438.46 80,744.21 645,560.18

5,500.00

81,017.24 22,321.13

$ 8,077,654.45 $ 2,064,341.87

$

-25,563.14 $

-47,565.69

$

161,864.00

$

-25,794.69

$

136,069.31 $

25,794.69 25,794.69

$

110,506.17 $

-21,771.00

38,986.94

116,252.04

414.89 560.95

FUND BALANCE JUNE 30

$

149 493.11 $ =--9=5!=,4=56=.8=8=

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 6,846,669.04 $ 6,397,651.15

1,470,867.03

1,050,023.80

$

358,261.31

1,803,604.17

2,020,038.33

27 819.44

333,808.00

352,386.57

$

386,080.75 $ 10.454.948.24 $ 9,820,099.85

$ 6,179,000.23 $ 5,359,895.35

$ 1,486,843.18

489,520.86 368,807.05 215,714.31 340,533.56 555,509.31 344,649.68 530,209.52 251,672.80
7,849.24 80,744.21 645,560.18 23,387.00
1,492,343.18

601,656.50 444,880.22 202,755.50 244,327.92 599,074.36 182,513.08 512,566.11 235,851.89
5,453.26 74,008.48 650,077.73 26,268.57
1,945.43 1,073,372.66

81,017.24 22,321.13

85,561.16 16 972.11

$ 1,486,843.18 $ 11,628,839.50 $ 10,317,180.33

$ -1,100.762.43 $ -1, 173,891.26 $ -497,080.48

$

161,864.00

25,794.69 $

10,532.57

-25.794.69

-10,532.57

$

161,864.00 $

0.00

$ -1,100,762.43 $ -1,012,027.26 $

-189,447.70

-34,208.72

-497,080.48 463,755.73

414.89 560.95

-573.94 -310.03

$ -1,290,210.13 $ -1.045.260.14 $~....,..-3.4..,,=2=08..,.7_2=

-5-

LANIER COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - /NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2001

EXHIBIT"C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

-BASIS)

REVENUES
State Funds Federal Funds Taxes Other Funds

$ 6,379,547.00 $ 6,460,760.20

1,000.00

16,038.06

1,458,953.00

1,445,342.86

40,700.00

129,950.19

Total Revenues EXPENDITURES

$ 7,880,200.00 $ 8,052,091.31

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation Enterprise Operations
Capital Outlay Debt Service

$ 5,200,933.00 $ 5,274,624.55

292,221.00 210,243.00 173,148.00 170,667.00 543,857.00 200,009.00 458,055.00 231,749.00
5,000.00

353,857.23 198,381.29 203,243.32 258,492.31 555,509.31 344,649.68 516,120.67 235,139.94
5,410.78

23,415.00

23,387.00 5,500.00
103,338.37

Total Expenditures

$ 7,509,297.00 $ 8,077,654.45

Excess of Revenues over (under) Expenditures

$ 370,903.00 $ -25 563.14

OTHER FINANCING SOURCES {USES}

Other Sources Other Uses
Total Other Financing Sources (Uses)

$ 161,864.00

$ -14 181.99

-25 794.69

$ -14 181.99 $ 136,069.31

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

$ 356,721.01 $

FUND BALANCE JULY l 2000 - Restated (See Note 1)

11,830.00

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

23,883.00

110,506.17 38,986.94

FUND BALANCE JUNE 30, 2001

$ 392,434.01 $ 149 493.11

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 533,983.00 $ 385,908.84

1,384,638.91

1,454,828.97

180,810.00

176 038.37

$ 2,099,431.91 $ 2,016,776.18

$ 904,657.00 $ 904,375.68

290,783.00 166,522.00
16,141.00 84,500.00

135,663.63 170,425.76
12,470.99 82,041.25

10,950.00 16,696.00
5,881.00 95,604.00 624,690.00

14,088.85 16,532.86
2,438.46 80,744.21 645,560.18

$ 2,216,424.00 $ 2,064,341.87 $ -116,992.09 $ -47 565.69

$

25,794.69

$

25,794.69

$ -116,992.09 $ -21,771.00

134,380.00

116,252.04

5,582.00

414.89 560.95

$ 22,969.91 $

95 456.88

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

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE30.2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Lanier 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 truces 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, Truces and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

- 8-

LANIER COUNTY BOARD OF EDUCATION .

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
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 material capital lease obligations.
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.
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.
Agency funds are purely custodial in nature and do not involve measurement ofresults ofoperations.
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 yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in
-9-

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
Agency funds are accounted for using the modified accrual basis ofaccounting in recognizing assets and liabilities.
RESTATEMENT OF PRIOR YEAR FUND BALANCE
In prior years, the activities for the School District's Family Connection Program were reported as a Special Revenue fund. This fund had an asset balance of$6,789.06 at June 30, 2000. For fiscal year 2001, this fund has been reported as an Agency Fund. The asset balance at July 1, 2000, has been restated as appropriate.
BUDGET
The Lanier 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

- 10-

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "0"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 ofgeneral 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 dat~ of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
( 1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,

- 11 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(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 need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Lanier County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on November 19, 2000 (levy date). Taxes were due on January 20, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Lanier County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $1,409,444.60.

The tax millage rate levied for the 2000 tax year (calendar year) for the Lanier County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

17.09 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $358,261.31 and was recorded in the Capital Projects Fund. The State will terminate collection of this tax once an additional $996,914.37 has been collected or on March 31, 2004, whichever occurs first.

- 12 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 i

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

INTERFUND TRANSACTIONS

The School District has the following types of interfund transactions:

Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is 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. Certain reclassifications have been made to the comparative data to conform to the current year classifications.

DEFICIT FUND BALANCES

Funds reporting a deficit fund balance position at June 30, 2001, are as follows:

Fund Type/Fund Name

Deficit Balances

Governmental Capital Projects Fund Special Purpose Local Option Sales Tax

$ 1.305.685.83

The Lanier County Board of Education plans to liquidate the deficit in the Capital Projects Fund with SPLOST funds as collected.

- 13 -

'-

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO 11IE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

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 ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged.to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discr~tion, 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 ofdevelopment 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 AtJune 30, 2001, the bank balances were $1,538,936.59. Theamountsofthetotal bank balances are classified into three categories of credit risk:

- 14 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2001, as follows:

.Risk Category

Bank Balance

1

$ 200,000.00

2

1,009,218.75

3

329.717.84

Total

$ 1,538,936.59

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

The School District has obtained commercial insurance for risk of loss associated with torts, assets 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 natural disaster except for flooding for which the School District has purchased commercial insurance. In addition, the School District has elected to self-insure for errors or omissions, which includes, among other risks, risks for sexual harassment and discrimination. The School District has not experienced any losses related to these risks in the past three years.

- 15 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when it is probable that a loss .has occurred, and the amount of that loss can be reasonably estimated. The School District has not experienced any claims related to this risk in the past two years.

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

Position Covered

Amount

Superintendent Each Principal Each Bookkeeper Each Nutrition Manager Each Nutrition Cashier

$ 25,000.00 $ 5,000.00 $ 4,000.00 $ 3,000.00 $ 2,000.00

Note 5: GENERAL LONG-TERM DEBT

CAPITAL LEASES The Lanier County Board ofEducation has entered into various lease agreements as lessee for digital phones, copy machines, and an energy management system. These lease agreements qualify as capital leases for accounting purposes and, therefore, have been recorded at the present value ofthe future minimum lease payments as of the date of their inception.

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

Balance July 1, 2000

$ 199,726.61

Additions Capital Leases

161,864.00

Deductions Debt Retired Cancellations

81,017.24 18,217.70

Balance June 30, 2001

$ 262,355,6:Z

At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows:

- 16 -

LANIER COUN1Y BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO 1HE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

Capital Leases

2002 2003 2004 2005

$ 96,585.28 96,585.23 63,330.10 39,576.37

Total Principal and Interest

$ 296,076.98

Deduct: Imputed Interest

33,721.31

Net Present Value of Future Minimum Lease Payments

$ 262,355.67

Note6: SHORT-TERMDEBT

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

Beginning Balance

Additions

Payments

Ending Balance

Tax Anticipation Notes

$1.000.000.00 $ 737.000.00 $1.000.000.00 $ 737,000.00

Temporary Loans

$ 290.821.59 $1.557.143.93 $ 458.000.00 $1.389.965.52

Note 7: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $124,352.77 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $97,491.21

- 17 -

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 7: ON-BEHALF PAYMENTS

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $9,164.56

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 $17,697.00

Note 8: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2001:

Project

Unearned Executed Contracts

L W00/99S-686-006 O0G/99S-686-048

$ 7,368.07 5,462.98

$ 12,831.05

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

Note 9: 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 10: 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 ofGeorgia (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 -

,, > _., r

LANIER COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 10: RETIREMENT PLANS

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% oftheir gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 618,002.76 $ 596,487.16 $ 580,836.06

- 19 -

LANIER COUNTY BOARD OF EDUCATION

,

COMBINING BALANCE SHEET

SPECIAL REVENUE FUND

JUNE 30 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

132,334,82 $

44,175,97

4,123.38 1 316.78

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 Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
- 20 -

$

137,774.98 $===44~1..7.5.==97==

$

9,659.12 $

9,767.13

32,850.12

34,408.84

$

42,509.24 $

44175.97

$

4,123.38

1,316.78

89,825.58 $

$

95,265.74 $

0.00 0.00

$

137,774.98 $===44===1=7.5...9...7=

EXHIBIT"E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

191.14 $

176,701.93 $

200,579.71

$

150,579.44

150,579.44

207,467.33

4,123.38 1,316.78

3,708.49 755.83

$

150,579.44 $

191.14 $

332,721.53 $ ==4=1=2=,5=1=1.=36=

$

16,612.47

73,273.63

37,020.25

22,393.81

1,279.28

$

150,579.44

$

16,612.47 $

106,432.67

92,699.88

68,868.55

104,279.21

115,801.89

22,393.81

5,156.21

1,279.28

$

2371264.65 $

296,259.32

$

0.00 $

$

0.00 $

$

150,579.44 $

$
191.14 191.14 $

$

1,151.68

4,123.38 1,316.78
90,016.72
951456.88 $

3,708.49 755.83
110,636.04
116,252.04

191.14 $

332,721.53 $ ==4=1=2=,5=11=.3=6=

- 21 -

LANIER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

41,590.00 $

344,318.84

412,877.24

1731538.37

$

628,005.61 $

344,318.84

$

250,320.80

54,211.15 254.49

15,935.40 12,843.85
8,693.21

$

6431666.33

180.00 1,893.85

$

6431666.33 $

344,332.75

$

-15,660.72 $

-13.91

$

-15,660.72 $

109,950.62

414.89 560.95

13.91
0.00 0.00

$

95,265.74 $ ====0==00=

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

EXHIBIT"F"

FEDERAL
PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 1,041,951.73 2,500.00 $
$ 1,044,451.73 $

$ 0.00 0.00 $

385,908.84 $ 1,454,828.97
176,038.37
2,016,776.18 $

431,557.65 1,048,200.17
178,311.49
1.658,069.31

$

654,054.88

76,493.88 $ 170,171.27
12,470.99 66,105.85
1,245.00 7,839.65 2,438.46 80,564.21

$ 1.011,384.19 $

$

-26,932.46 $

$ 4,958.60
4.958.60 $ -4,958.60 $

904,375.68 $
135,663.63 170,425.76
12,470.99 82,041.25 14,088.85 16,532.86
2,438.46 80,744.21 645,560.18
2.064.341.87 $
-47,565.69 $

664,711.19
123,552.67 106,267.82 11,587.28 71,016.44
11,945.99 11,053.89
73,108.48 650.077.73
1,723,321.49
-65,252.18

25,780.78

25.794.69

1.946.03

$

-1,151.~8 $

-4,958.60 $

-21,771.00 $

-63,306.15

1,151.68

5,149.74

116,252.04

180,442.16

414.89 560.95

-573.94 -310.03

$

0.00 $

191.14 $

95,456.88 $ ==1=1=6=,2=52=.04==

-23-

LANIER COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30 2001

ASSETS Cash and Cash Equivalents Accounts Receivable

GEORGIA STATE FINANCING AND . INVESTMENT
COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

20,890.55

$

17.975.70

63.389.14

Total Assets

$

17,975.70 $ ===8=4=,2=7=9.=69=

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Short Term Debt Contracts Payable Retainages Payable
Total Liabilities
FUND EQUITY
Fund Balances Unreserved Deficit Undesignated
Total Fund Equity

$ 1,389,965.52

$

2,500.00

$

2,500.00 $ 1,389,965.52

$ -1,305,685.83

$

15,475.70

0.00

$

15 475.70 $ -1,305,685.83

Total Liabilities and Fund Equity

$

17,975.70 $ ===8=4,'2=7=9..6..9=

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

EXHIBIT"G"

LOTTERY PROJECT

TOTALS

JUNE 301 2001

JUNE 301 2000

$

20,890.55 $

219,663.63

$ _ _...;1..;:,6..1:.,;:,;67;_;,.6;;.::0:...

97.532.44

256,270.75

$

16,167.60 $

118,422.99 $ ==4=75=,9=34==38=

$

13,667.60 $

13,667.60 $

71,304.79

1,389,965.52

290,821.59

222,375.71

2,500.00

5,000.00

80,879.99

$

16,167.60 $ 1,408,633.12 $

665,382.08

$ -1,305,685.83 $

$ _ _ ____,;0;.;..0;;.,;;0a...

15,475.70

-189,447.70 0.00

$ _ _ ____,;o""'".o"""'o__ $ -1 12901210.13 $ _ _-1_89...,,44_7._70_

$

16,167.60 $

118,422.99 $==4=75,..,,9=34==38=

- 25 -

LANIER COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Residual Equity Transfer

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

358,261.31

$

24,204.67

3 614.77

$

24,204.67 $

361,876.08

$

30,761.00

$

277,281.27

553,441.68

$

277,281.27 $

584,202.68

$

-253,076.60 $

-222,326.60

$

458,000.00

$ -1,083,359.23

$

458,000.00 $ -1,083,359.23

$

204,923.40 $ -1,305,685.83

-189,447.70

0.00

FUND BALANCE JUNE 30

$

15 475.70 $ -1,305,685.83

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

EXHIBIT"H"

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

0.00

$

$ _ _ _ _0;;..;.0;;.0;;;... $

$ 358,261.31
27,819.44
386,080.75 $

366,433.00 389,526.70
2,722.90
758,682.60

$

30,761.00

$

625,359.23

1,456,082.18 $

932,822.66

135,050.00

$

625,359.23 $ 1,486,843.18 $ 1,067,872.66

$ -625,359.23 $ -1, 100,762.43 $ -309, 190.06

$

625,359.23 $ 1,083,359.23 $

332,928.76

-1,083,359.23

-324,342.22

$

625,359.23 $

0.00 $

8,586.54

$

0.00 $ -1, 100,762.43 $ -300,603.52

0.00

-189,447.70

130,662.47

-19,506.65

$ ====0==00= $ -1,290,210.13 $ ==-1=8=9=,44=7=.7=0=

-27-

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

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

EXHIBIT"!"

FAMILY CONNECTIONS
ASSETS Accounts Receivable
LIABILITIES Cash Overdraft Accounts Payable Funds Held for Others

BALANCE JULY 1, 2000

ADDITIONS

DEDUCTIONS

BALANCE JUNE 301 2001

$ 6,789.06 $ 46,840.68 $

6,789.06 $==4=6=,8=40==68=

$ 6,273.78 $ 144,370.59 $ 116,560.68 $

515.28

55,857.21

48,571.50

0.00

4,956.00

34,083.69 7,800.99 4,956.00

$

6,789.06 $ 205,183.80 $ 165,132.18 $==4=6..,,84=0=.6=8=

See notes to the general-purpose financial statements.

28-

LANIER COUNTY BOARD OF EDUCATION CHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30, 2001

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

Agriculture, U. S. Department of Child Nutrition Cluster Pass-Through From Georgia Department of Education Food and Nutrition Program Food Services School Breakfast Program National School Lunch Program

. 10.553 . 10.555

Total Child Nutrition Cluster

Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1)
Total u. S. Department of Agriculture

10.550

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B Special Education Flow Through Preschool Special Projects

84.027 84.173 84.173

Total Special Education Cluster

Other Programs Direct Impact Aid Pass-Through From Berrien County Board of Education d/bla Southern Pine Migrant Education Agency Elementary and Secondary Education Act Tltlel Migrant Education Pass-Through From Georgia Department of EdJcation Elementary and Secondary Education Act Title I Accountability Grants Grants to Local Educational Agencies Title II Eisenhower Professional Development Title Ill Technology Literacy Challenge Fund Grants
Title VI Innovative Education Program Strategies Class Size Reduction
Goals2000 State and Local Education Systemic Improvement Grants
Safe and Drug-Free Schools and Communities Vocational Education Basic Grants to States
High School Program Basic Grant Tech Prep Education

84.041
84.011
84.348 84.010 84.281 84.318 84.298 84.340 84.276 84.186
84.048 84.243

Total U. S. Department of Education

Health and Human Services, U. S. Department of Pass-Through From Georgia Department of Human Resources Substance Abuse Program

93.959

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

NIA

$ 118,592.24

NIA

268,875.81 $

$ 387,468.05 $

(2) 618,257.14
618,257.14

NIA

25,409.19

$ 412,877.24 $

25,409.19 643,666.33

NIA

$ 111,124.96 $

NIA

9,268.91

NIA

3,307.00

$ 123,700.87 $

111,124.96 9,268.91 3 307.00
123,700.87

2,898.06

(3)

NIA

12,402.23

13,553.91

NIA

30,599.00

30,599.00

NIA

337,280.16

337,357.35

NIA

11,292.35

11,292.35

NIA

123,200.00

123,200.00

NIA

11,968.00

11,968.00

NIA

49,007.00

49,007.00

NIA

150,000.00

150,000.00

NIA

108,978.74

108,978.74

NIA

23,592.00

23,592.00

NIA

35,000.00

49,181.99

$ 1,019,918.41 $ 1,032,431.21

NIA

$ 13,140.00 $

13,140.00

-29

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U. S. Department of Pass-Through From Office of Planning and Budget Children and Youth Coordinating Council After-School Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.540

NIA $ 24,931.38 $ _ _..,:3;.;;.8=,9=52""".9a..;;8~

Total Federal Financial Assistance

s 1,470,as1.03 s_,,,_1....1..2.=a=,1==eo=.s_2_

NIA = Not Available

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the aJrrent fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included In the 2001 National School Lunch Program.
(3) Expenditures on this program were not maintained by fund source.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School Distrid did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards Includes the Federal grant activity of the Lanier 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 financial statements.

See notes to the general-purpose financial statements.

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grant
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Migrant Education Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Teachers' Retirement Tuition for the Multi-Handicapped Lottery Programs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

See notes to the generalpurpose financial statements.

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GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

15,000.00

$

15,000.00

287,413.00 4,090.00
873,331.00 16,879.00
336,687.00 741,563.00 367,501.00 324,275.00
11,487.00 90,160.00 357,455.00
6,079.00 148,847.00
86,152.00 52,022.00 12,686.00 119,652.00 33,429.00 1,047,562.00

287,413.00 4,090.00
873,331.00 16,879.00
336,687.00 741,563.00 367,501.00 324,275.00
11,487.00 90,160.00 357,455.00
6,079.00 148,847.00 86,152.00 52,022.00
12,686.00 119,652.00
33,429.00 1,047,562.00

158,990.00 33,904.00
140,072.00 43,723.00
5,354.00 12,631.00
512.00 768,111.00
$ 49,153.00

41,590.00

2,161.78 97,491.21
9,722.00 3,273.25 14,819.00 9,164.56 117,974.40

26,660.00

158,990.00 33,904.00
140,072.00 43,723.00
5,354.00 12,631.00
512.00 768,111.00
41,590.00 49,153.00
2,161.78 97,491.21
9,722.00 3,273.25 14,819.00 9,164.56 117,974.40
26,660.00

317,658.84

317,658.84

17,697.00

17,697.00

18,602.00 25,135.00

18,602.00 25,135.00

$ 61460,760.20 $ 385,908.84 $ 6,846,669.04

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

SCHEDULE "3"

PROJECT

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS(2)

AMOUNT EXPENDED IN CURRENT YEAR(3)

AMOUNT EXPENDED
IN PRIOR YEARSC3)

Construction of six dassrooms and two

restrooms at Lanier County Elementary

School, addition to dining area at Lanier

County Elementary School, eight dassrooms

and two restrooms at Lanier County High

School, renovations, modifications and

upgrading of technology at Lanier County

Elementary School and Lanier County High

School together with equipping of same,

acquisition of all property, both real

and personal

$ 1,811,845.00 $ 2,515,053.10 $ 1,486,843.18 $ 1,028,209.92

PROJECT STATUS
Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's current estimate of total cost for the project. lndudes all cost from project inception to completion.
(3) The wters of Lanier County approved the imposition of a 1% sales tax to fund the above projed. Amounts expended for this projed may indude sales tax proceeds, state, local property taxes and/or other funds over the life of the project.

See notes to the general-purpose financial statements.

33-

LANIER COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM {QBEl
ALLOTMENTS AND EXPENDITURES - BY PROGRAM
YEAR ENDED JUNE 30 2001

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Direct Instructional Programs

Kindergarten Program

$

Kindergarten Program-Early Intervention Program

Primary Grades (1-3) Program

Primary Grades-Early Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students with Disabilities

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)

306,913.00 $ 4,367.00
932,583.00 18,024.00
359,530.00 791,875.00 392,434.00 346,276.00 496,742.00
158,945.00 91,997.00 55,551.00 13,547.00

411,571.57 $ 7,117.34
975,833.32 35,695.53
516,571.69 850,966.09 548,073.67 328,600.38
17,328.46 135,030.89 345,364.05
712.46 7,972.32 142,602.79 144,076.76 127,294.63 13,224.32

6,111.68 $ 63.00
27,975.04 1,321.77
13,182.73 19,739.57 23,734:85 34,962.83

417,683.25 7,180.34
1,003,808.36 37,017.30
529,754.42 870,705.66 571,808.52 363,563.21

430.00 1,435.99 8,566.36
400.00 3,339.99 1,509.54
831.00 84.00

17,758.46 136,466.88 353,930.41
712.46 8,372.32 145,942_.78 145,586.30 128,125.63 13,308.32

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

3,968,784.00 $ 4,608,036.27 $ 143,688.35 $ 4,751,724.62

Media Center Program Staff and Professional Development

127,769.00 35,697.00

134,996.34 13,456.88

30,073.01 22,450.32

165,069.35 35,907.20

TOTAL QBE FORMULA FUNDS

$

4,132,250.00 $ 4,756,489.49 $ 196,211.68 $ 4,952,701.17

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

See notes to the general-purpose financial statements.

34-

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

SCHEDULE "5"

SITE Lanier County Middle School Lanier County High School Lanier County Elementary 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

$

985,506.00 $

1,046,989.17

1,024,979.00

1,385,612.56

1,902,748.00

2,319,088.44

55,551.00

34.45

$

3,968,784.00 $ 4,751,724.62

See notes to the general-purpose financial statements. - 35-

SECTION II COMPLIANCE AND INTERNAL C0NI'R0L REPORTS

w. RUSSELL

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lanier 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 ofLanier County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated June 4, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Lanier 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 an instance ofnoncompliance that is required to be reported under Government Auditing Standards and which is described in the accompanying Schedule of Findings and Questioned Costs as item FS-6861-01-02.

2001YB-60

Internal Control Over Financial Reporting
In planning and performing our audit, we considered Lanier 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 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 Lanier 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-6861-01-04.
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, the reportable condition described above is considered to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Lanier 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.
,_---R-e. spectfully submitted,
~-4
State Auditor
RWH:as 2001YB-60

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

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
June 4, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Lanier County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
Ladies and Gentlemen:
Compliance
We have audited the compliance ofLanier County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Lanier County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section ofthe accompanying Schedule ofFindings 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 Lanier County Board of Education's management. Our responsibility is to express an opinion on Lanier County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Lanier 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 Lanier County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Lanier 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, 2001.
Internal Control Over Compliance
The management of Lanier 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 Lanier 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 ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB qrcular 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 ofperforming 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 Lanier 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.
ectfully submitted,
~-~
RWH:as 2001SA-10

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

LANIER COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDIN"GS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6861-99-02 FS-6861-00-01 FS-6861-00-02 FS-6861-00-03

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

CORRECTIVE ACTION/RESPONSES

BUDGET PREPARATION/EXECUTION Deficit Fund Balance Nonmaterial Noncompliance Finding Control Number: FS-6861-00-01

The deficit fund balance exists in the Capital Outlay fund. As stated in the corrective action plan, SPLOST funds collected are being applied against the Capital Outlay construction note. It is projected that the construction note will be paid offduring the life of the SPLOST.

BUDGET PREPARATION/EXECUTION Temporary Loans Outstanding Nonmaterial Noncompliance Finding Control Number: FS-6861-00-02

SPLOST funds collected are being used to pay off the existing construction note. It is projected that the construction note will be paid off during the life of the SPLOST.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Material Weakness Finding Control Number: FS-6861-00-03

A General Fixed Assets Account Group is not possible at this time due to the expense of establishing a cost for the existing assets of the system.

SECTIONN FINDINGS AND QUESTIONED COSTS

LANIER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 200 I
I SUMMARY OF AUDITOR'S RESULTS
I . Type of Report Issued on the Financial Statements The auditor's opinion on the Lanier 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 Lanier 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 Lanier County Board ofEducation disclosed one instance ofnoncompliance deemed material to the financial statements. This noncompliance involved the Board obtaining loans in excess of legal limitations.
..
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Lanier 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 Lanier County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) of 0MB Circular A-133 The Lanier County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A~133.
7. Major Programs Federal awards audited as major programs are as follows: I0.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Lanier County Board of Education qualified as a low risk auditee based on a waiver granted by the U. S. Department of Education.
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LANIER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
BUDGET PREPARATION/EXECUTION Deficit Fund Balance Nonmaterial Noncompliance Repeated from Prior Year Finding Control Number: FS-6861-01-01
At June 30, 2001, the liabilities and reserved fund balances exceeded assets available for the Capital Projects Fund by $1,305,685.83. O.C.G.A. 20-2-67 (b) requires that the Superintendent submit to the Georgia Department of Education both a response to this condition and a corrective action plan designed to correct the budget deficit. The School District should establish budgetary procedures to ensure that funding is available prior to the School District committing to expenditures.
BUDGET PREPARATION/EXECUTION Short-Term Debt Material Noncompliance Repeated from Prior Year Finding Control Number: FS-6861-01-02
At June 30, 2001, the General Fund and Capital Projects funds had $2,126,965.52 in various shortterm debt obtained by the School District which exceeded the maximum allowable amount of $1,515,028.75. Article IX, Section V, Paragraph V ofthe Constitution ofthe State ofGeorgia limits the aggregate amount oftemporary loans to 75 percent ofthe total gross income from taxes collected in the preceding year. The School District should establish budgetary procedures to ensure that temporary financing obtained does not exceed the maximum allowable amount.
GENERAL LEDGER Outstanding Loan Nonmaterial Noncompliance Finding Control Number: FS-6861-01-03
On December 31, 2000, the Capital Projects Fund - SPLOST had an unpaid loan outstanding. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia provides, in part, as follows:
"The governing authority of any county, municipality or other political subdivision of this state may incur debt by obtaining temporary loans in each year to pay expenses ... Such loans shall be payable on or before December 31 of the calendar in which such loan is made ... "
This condition occurred because the School District did not have adequate cash available to retire the loan on December 31, 2000 as required. Repayment of loans should be made in conformity with constitutional limitations.
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LANIER COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
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-6861-01-04 The Lanier County School District 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 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. ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
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