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

;A l\eoi?
.'R,I f:~i.,-,
I..:.~
~OOl-;;!00,;\
r
, r

\
'' , ' , ' ' ','

r
v_

' l

' '

"- - ..'_ , ,. .STATE-OF-GEORGIA'_,_

' ,

--_pePARTMENt oF_-Aubrrs AND Acco_u.NTs .

l,,,

,

,{ r

1

L

,,,

' .

' .

.. ,.,

.'' -'
,....._

. '

..,.
-,

,-

.,
'

. I
..

',

'' ,.,

'

'

' ,

..

.'I .,'
_.

-.' '
'.,.

' -
"
-: ,' ' r

)

. ,,_{

l-._

; ~ I

,

i

LAURENS COU-NTY,BOARD,OF EDUCATION'

,,:,,

D(!BLIN:-GEORGIA

. -, -

,-
' )
''
' ,

' .

' t

' -

' ',

,REP.ORT ON AUDrr:

OF THE FINANCIAL STATJ;MENTS, ,.

. ,

FOR THE FiSCA'L-YEAR ENDED_JUNE 30, 2002

,,:;

: '

,''

_, 1, ..

'--,- ,t .'-,,

...

~. ---~

J

"t

-- ..

. , . ..''-,
. -
. '
, .
.-

. ,

,,

-'

)

,

... '

. ,, Russell W. Hinton ~tote Auditor

I I
, . ~

-' ' , ' ,

;, ' ,

' ;

-

,. .\

,

', '

,,
"

._,

, .
.. " '- , .

,- .

.-

.' ,

' ' ,, '
'I
,,
!
,._
I -

. ,
', .,

- ,,
" '

/

- ,' ;

LAURENS COUNTY BOARD OF EDUCATION - TABLE OF CONfENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

7

ADDITTONAL 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

K

FIDUCIARY FUND TYPES

COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES

AGENCY FUNDS

30

LAURENS COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDmONAL FINANCIAL INFORMATION

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

SECTION III 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

{U~',~.LI W. H1r-.TON
STATE AUDITOR
('O,,) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshrngton Street, S W Su11e 214 AtlJnta, Georgia 10334-8400
May 20, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Laurens 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 accompanymg general-purpose financial statements of the Laurens County Board of Education, as of and for the year ended June 30, 2002, as listed m the table of contents These general-purpose financial statements are the respons1b1lity of the Laurens County Board of Education's management Our respons1b1lity 1s to express an opm1on on these general-pmpose financial statements based on our audit
We conducted our audit in accordance with aud1tmg standards generally accepted m the Umted States ofAmenca and the standards applicable to financial audits contamed m Govermnent Aud1t:mg Standards, issued by the Comptroller General of the Umted States Those standards reqmre that we plan and perform the audit to obta:m reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit mcludes exam:mmg, on a test basis, evidence supporttng the amounts and disclosures m the financial statements An audit also includes assessmg the accounting pnnc1ples used and s1gmficant estimates made by management, as well as evaluatmg the overall financial statement presentation We believe that our audit provides a reasonable basis for our op:m1on
As descnbed m the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared usmg certam accounting practices and pohc1es winch, m our opmton, vary m some respects from generally accepted accountmg pnnc1ples These vanances are descnbed as follows

2002ARL-13

The general-purpose financial statements of the Board of Educat10n did not contam a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnc1ples.
'" School activ1ty accounts mamtamed at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded m the general-purpose financial statements
'" The Board of Education did not recogmze as expenditures, m the year ended June 30, 2002, a portion of salanes and the correspondmg employer's cost of related benefits earned for contractual services completed pnor 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 salanes and related benefits were not recorded as revenue m the year under review Conversely, the similar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were improperly recorded m the year ended June 30, 2002 To conform to generally accepted accountmg pnnc1ples, revenues should be recorded when available and measurable and expenditures should be recorded when mcurred, rather than when funds arc received or disbursed
The aggregate effects on the general-purpose financial statements of these vanances or om1ss1ons have not been determmed, but are believed to be matcnal
In our op1ruon, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly, m all matenal respects, the financial pos1non of the Laurens County Board of Education as ofJune 30, 2002, and the results of1ts operations for the year then ended, in conformity with accountmg pnnc1ples generally accepted in the Umted States of Amenca
In accordance with Government Aud1tmg Standards, we have also issued our report dated May 20, 2003, on our cons1dera!Ion of the Laurens County Board of Educat10n's mtemal control over financial reportmg and our tests of its compliance With certain prov1s1ons of laws, regulat10ns, contracts and grants That report 1s an integral part of an audit performed m accordance with Government Aud1!Ing Standards and should be read m conJunchon With tlus report m cons1denng the results of our audit.
Our audit was performed for the purpose of formmg an op1mon on the general-purpose financial statements of the Laurens County Board of Education taken as a whole The accompanying combmmg statements (Exh1b1ts E through K) and the financial schedules (Schedules I through 5), which mcludes the Schedule of Expenditures of Federal Awards as required by U S Office of Management and Budget Cucular A-133, Audits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of add1tional analysis and are not a required part of the general-purpose financial statements Such mformahon has been subJccted to the auditing
2002ARL-13

procedures apphed m the audit of the general-purpose financial statements and m our opm10n, except for the effects ofthe matters referred tom the third paragraph, such mforrnatlon 1s fairly stated, mall matcnal respects, m relation to the general-purpose financial statements taken as a whole.
A copy ofth1s report has been filed as a permanent record m the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 506-24
Respectfully submitted,
~-~
11 W Hmton
RWHgp 2002ARL-13

LAURENS COUNTY BOARD OF EDUCATION

LAURENS COUNTY BOARD OF EDUCATION
COMBINED BALANCE SHEET ALL FLJNP TYPES AND ACCOUNT GROUP
JUNE 30 2002

=m
Cash and Cash Equivalents
Investments
Investments Held by Trustee
Accounts Recervable
Due from Other Funds
lnventone3 Food Donated Commodrtres Purchased Food
Amoont Available 1n Debt Service Fund
Amoont ta be Provided m Future Years For Payment of Bond Debi Caprtal Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$

491 830 80 $

377 711 05 $ 7 962 069 22

210 031 99

412 547 74

532,328 51

873,067 35

11 473 97 17,188 14

$

804 378 34 $

_..,.e 938 699 67 S

.,04..,5.._16._6..,5._B,..

LIABILITIES ANO FUND EQUITY
LIA81UTIES
Cash Overdraft Accounts Payable Salanes Payable Short Term Debt Contracts Payable Reta1nages Payable Due to Olher Funds Deferred Revenue Funds Held for Others Caprtal Lease Agreements General Obhgaoon Bonds Payable
Total L1ab1lrbes
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For lnventones Food Donated CommodrtJes Purchaeed Food For Purpose of Bond Issue For SPLOST ProJeCts For State Capital Outlay PrOJects Unreserved Dehc1t Undes1gnated
Total Fund Equity

$

266 427 e3 $

16215402 S

26 521 57

447 891 85

37 908 36

457 805 20 163 188 10

34 579 66

3 914 88

$

327 528 86 S 613 960 53 $ _ _,,B5,::6,_90=1_,6c,6c..

$

408 342 72

$

1147397

17 188 14

$ 5 365 913 90

3 020,353 00

168 506 76

296 077 03

0 00

$

578 849 48 $

324 739 14 $ 8 386 266 00

Total Laabl.l1t1es and Fund Equity

$

904 378 34 $

938 899 67 $ 9 045 168 56

The notes to the general purpose financial statements ae an mtegral part or this statement 2-

EXHIBIT N

DEBT SERVICE
FUND

FIDUCIARY FUND TYPES AGENCY FUNDS

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

~emorandum On~l

JUNE 30 2002

JUNE 30 2001

$

539 177 97 s

10530

s 9 370 894 14 s 3 666 300 59

25 050 97

235,082 SB

2 96

33S,668 04

37 72

1 817,979 32

1,333 384 27

458 809 89

s

584 266 66

1147397 17 188 14
564 266 66

13,006 87 4 979 415
955 946 57

s

564 266 86 s

15 570 733 34 338 155 43

15 570 733 34 338 155 43

9 664,053 43 3 829 067 45

105 30 s

16 473155 43 s 27 925 773 96 s 20 285 019 52

s

s

468 490 01

628 653 22 131 240 99

474 413 42

389 104' 27

800 000 00

457,805 20

183,188 10

44,295 80

458 609 89

38 494 32

s

105 30

105 30

339 668 04

s

338 155 43

338,155 43

3 829 067 45

16 135 000 00

16.135 000 00

10 620 000 00

s

105 30 s

s 18 473 155 43 s 1807365178

17 240 639 66

564 266 86

0 00

s

564 286 66

s

564 266 66 s

s

408 342 72 s

564 266 66

244 908 00 113 58
955 946 57

1147397 17 188 14 5 365 913 90 3 020 353 00

13 006 87 4,979 45
2 955 405 08 469 200 OD

464 583 79

-171997850 100 798 81

s 9 852,122 18 s 3 024 379 ea

105 30 s

16 473155 43 s 27 925.TT3 96 s 20 265 019 52

- 3-

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

REVENUES
Stata Funds Federal Funds
Taxes
Other Funds
Total Revenues
E/lP!;NDIIllRJii
Current lnsb'uctlon Support Servioos Pupil Servioos Improvement of lnstruCtlonal Services Educational Media SeMces General Admtrustratlon School Adnunlslrat,,on Bustness Adm1mstrat:ion Maintenance end Operabon of Plant Student Transportation Services Other Support Services Food Servloos Operation Community SeMces Operatrons
Capotal Outlay Debt Service
Pnndpal Interest
Total Expendotures
Excess of Revenues over (under) Expenditures
OTt:lrn FINANCIN!;l OURCE (USE)
Acaued Interest oo Boods Sold
Premiums oo Boods Sold
Proceeds from General Obligation Bonds Par Value
Refunding Bond Issuance Cost Proceeds of Refunding Boods
Par Value Payments to Bond Escrow Agent Capital Leases Operating Transfers In Operabng Transfers Out
Total Other Fmancmg Sources (Uses)
Excess of Revenues end Other Fmancmg Sources over (under) Expenditures and Other Financing Uses
FUND llALAt:jCE JUL:! 1
Food Inventory - Net Change m Penod Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

s 26.285,537 39 $
8,059,598 43 339.533 67
$ 34.684.669 49 $

1,511,888 92 4,221,693 05
576 136 25
6.309.718 22

s 23,847,710 71 $
901,144 76 400,710 16 785,293 89 415,676 06 2,099,036 70 227,203 95 1,758,72994 1,748,589 99

3,147,12700
236.221 84 87,527 53
74,665 02
29,400 29 20,521 64 10,879 89 2,461,880 81
1,919 52

298,398 99 149 491 32
$ 32.631.986 47 $
$ 2,052.683 02 $

54,994 78 3 332 08
6.128.470 40
181 247 82

$

12.481 75

672 03 $

-13 916 82

$

-763 04 $

$ 2,051,919 98 s
-1,475,070 50

13,916 82 1391682 195,164 64 118,898 71

-1,532 90 12.208 69

FUND llA\-At:lCE JUNE 30

$

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

576 849 48 $

324 73914

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

{Memorandum On~}

YEAR EFlDED

JUNE 30, 2002

JUNE 30, 2001

s 1,339,956 00

$ 29,137,382 31 $ 25,391,297 10

4,221,693 05

3,460,886.20

s 3,688,525 51

11,748,12394

10,915,442 40

75 957 41

44 943 69

1 036 571 02

1.230,514 92

s 1415 913 41 $ 3 733 469 20 $ 46 143 770 32 $ 40,998,140 62

s $ 28,994,837 71

25,874,268 17

$

63,429 26

2,240,416 06

1,137,366 60 488,237 69 785,293 89 490,341 08
2,099,036 70 290,633 21
1,788,130 23 1,769,11163
10,878 89 2,461,880 81
1,919 52 2 240,416 06

1,160,15909 532,612 45 757,261 88 514,459 03
2,096,157 03 175,084 11
1,832,394 27 2,078,464 02
4,17505
2,326,182 98 1,231 05
1 403,697 83

s 3,685,000 00 464 525 00

4,038,393 77 617 348 40

3,369,864 05 776 260 84

s s s 2,303,845 32

4 149 525 00 $ 45,213,82719

42,902,271 85

s s -887 931 91

-416 055 80 $

929 94313 $ -1 904131 23

$

25,047 92 $

25,047 92

s

24,593 73

27,971 42

52,565 15

5,825 000 00

-138,478 63

5,825,000 00 -138,478 63

6,625,000 00 -6,514,492 79
-672 03

6,625,000 00 -6,514,492 79
12,481 75 $ 14,588 85 -14 588 85

$ 5,849,593 73 $

s 24 375 89 $ 5,887,123 40

339,107 53 158,807 26 -15880726
339 107 53

s $ 4,961,661 82
3,424,605 08

-391,679 91 $ 955,946 57

6,817,066 53 $ 3,024,379 86

-1,565,023 70 4,594,825 00

-1,53290 1220869

-4,434 69 -986 75

$ 81386~90 $

564 266 66 $ 918521122 18 $ 3 024 379 86

. 5-

LAURENS coumv BOARD OF EDUCATION
COMBINED SJNEMENT OF REVENUES. EXPEND[URES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL INON-GAAP BAS\S)
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues

$ 25,695,004 88 $ 26,285,537 39

8 103 411 57 153 631 00

8,059,598 43 339.533 67

$ 33.952,047 45 $ 34,684,669 49

EXPEND[URES

Cumm1 lnstrucbon Support Services Pupn Services Improvement of lnstrudlonal Services Educational Macha Services General Admlmstratlon School Administration BuS1nes11 Admm1Stretlon Maurtenance and Operation of Plant Student Transportation Servk:as 01hef Support Services Food Services Operation Community Sarvoces Operations
Debt Service

$ 24,565,552 58 $ 23,847,710 71

1,102,729 38 367,382 85 722,969 57 474,168 72
2,056,399 23 220,904 24
2,179,343 60 1 971 748 53

901,144 76 400,710 16 785,293 89 415,676 06 2,099,036 70 227,203 95 1,758,729 94 1 748,589 99

21109000

447 890 31

Total Expenditures

$ 33,872,288 70 $ 32,631,986 47

Excess of Revenues over (under) Expenditures

$

79 758 75 $ 2,052.683 02

OTHER FINANCING SOURCES !USES)

Other Sources Other Uses

$

13,153 78

-13 916 82

Total Other Fmanoog Soun:e& (Uses)

$

-763 04

Excess of Revenues and Other Financmg Sources

over (under) Expenditures and Other Flnanclng

Uses

$

79,758 75 $ 2,051,919 98

FUND BALANCE JULY 1 2001

-1,734 089 99 -1,475,070 50

AdJUSlmenll Food Inventory - Net Change In Period
Donated Gommod1bes Purchased Food

10,855 29

FUtlC BALANCE JUNli ~ 2211~

$ 116431475 95 $ 576 849 48

SPECIAL REVENUE FUND

BUDGET

ACTUAL

$ 1,288,096 40 $ 1,511,888 92 3,954,701 30 4,221,693 05

576.096 00

576.136 25

s $ 5,818,893 70 6,309,718 22

$ 3,191.24579 $ 3.147.127 00

231,802 00 99,147 83

236,221 84 87,527 53

84,399 28

74,665 02

33,992 00
24,599 00 11,076 00 2,671,011 00
2,000 00

29,400 29 20,521 64 10,879 89 2,461,880 81
1,919 52 58,326 86

$ 6,349,272 90 $ 6.128,470 40

$ -530,379 20 $ 181.247 82

$ 13,916 82 $ 13 916 82

$ -530,379 20 $ 195,164 84

-34,651 46

118,898 71

-6,501 67

-1,532 90 12,208 69

$ -5711532 33 $ 324 739 14

The notes to the general-purpose financial statements are an Integral part of this statement . 6.

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Laurens County Board of Education (School D1stnct) was estabhshed under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appomted by the Board The School D1stnct 1s orgaruzed as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity. Accordmgly, the School D1stnct 1s a pnmary government and consists of all the orgaruzat1ons that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial position and the results of1ts operat10ns Fund accounting 1s designed to demonstrate legal compliance and to rud financial management by segregatmg transact10ns related to certrun governmental functions or activities A fund 1s a separate accountmg entity with a self-balancmg set of accounts. An account group 1s a fmanc1al reportmg device designed to proVJde accountab1hty for certrun assets and hab1ht1es that are not recorded m the funds because they do not directly affect expendable avrulable financial resources
General Fixed Assets are recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mruntruned by the School D1stnct To conform to generally accepted accounting pnnc1ples, a General Fixed Assets Account Group should be mruntamed for reporting the cost of assets acqmred by governmental fund types
Although "school activity accounts" are mruntamed at the md1v1dual schools, neither the assets, hab1ht1es and fund eqmty, nor the revenues, expenditures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be recorded m the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, m comphance with generally accepted accountmg pnnc1ples applicable to governmental units, unless otherwise disclosed m these notes Funds and the account group presented m tlus report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's educational activities Governmental Fund Types mclude:
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those reqmred to be accounted for m another fund These transactions relate to resources obtruned and used for services provided by a board of educat10n

-7-

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restncted to expenditures for specified purposes. These funds are received pnmanly from the Georgia Department of Education and from the Federal government to accomphsh specific educat10nal objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqu1S1t1on or construction of maior capital fac1hhes
DEBT SERVICE FUND - the fund used to account for the accumulat10n ofresources for, and the payment of, general long-term pnnc1pal, interest and paying agent fees
FIDUCIARY FUND TYPES - the funds used to account for assets held by a government unit in a trustee capacity or as an agent for ind1v1duals, pnvate orgaruzations, other government uruts and/or other funds. These funds include
AGENCY FUNDS - the funds used to account for assets held in a fiduciary capacity for other funds, governments, or ind1v1duals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obhgallon debt outstanding and capital lease obhgallons
BASIS OF ACCOUNTING
The accounting and financial reporting treatment apphed to a fund 1s 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 hab1hlles generally are included on the balance sheet Operating statements ofthese funds present increases (1 e , revenues and other financing sources) and decreases (1 e , expenditures and other financing uses) in net current assets Their reported fund balance 1s considered a measure of available spendable resources
L1ab1ht1es which are expected to be financed from available spendable resources are reported as hab1ht1es in the governmental funds Other hab1ht1es, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group
Agency funds arc purely custodial in nature and do not involve measurement ofresults ofoperat10ns
Governmental funds are accounted for using the modified accrual basis of accounting underwh1ch

- 8-

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Revenues are recogmzed when susceptible to accrual (1 e , when they become both measurable and available) "Measurable" means the amount of the transaction can be determined and "ava1lable" means collectible Withm the current penod or soon enough thereafter to be used to pay hab1ht1es of the current penod. The School D1stnct considers receivables collected w1thm sixty days after yearend to be available Property taxes, sales taxes and interest arc considered to be susceptible to accrual. Nonexchange transactions, m which the School D1stnct gives (or receives) value Without directly rece1vmg (or givmg) equal value m exchange, mclude property taxes, local option sales taxes, intergovernmental grants and donations Revenue for property taxes 1s recogruzed m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or susceptible to accrual Revenue from grants and donations 1s recogruzed m the fiscal year m which all ehgib1hty requirements have been satisfied
Expenditures are generally recogmzed when the related fund hab1hty 1s incurred.
A departure from the above defimtlons 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts Dunng fiscal year 2002, a substantial number ofpersonnel of the School D1stnct were employed for a one hundred and nmety day penod beginnmg m August 2001 and endmg m early June 2002 Personnel contracts for this employment penod specify that compensation be paid m twelve equal monthly payments beginnmg m September 2001 and endmg m August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School D1stnct m 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 D1stnct subsequent to June 30, 2002 Also, the State's portion ofthe compensation paid m July and August 2002 was received and recorded as revenue m the fiscal year subsequent to June 30, 2002 Conversely, the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30, 2001, were recorded m the year ended June 30, 2002 Generally accepted accounting pnnc1ples 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 usmg the modified accrual basis ofaccounting m recogruzmg assets and hab1ht1es
BUDGET
The Laurens County Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fundmg sources. There 1s no statutory proh1b1t1on regarding overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund, function and obJect The legal level of budget control was estabhshcd by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting pnnc1ples
-9-

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FfNANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The budget process begms when the School D1stnct's admm1strahon prepares a tentative budget for the Board's approval. After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once ma newspaper of general c1rculat1on m the locality At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes reV1s1ons as necessary and adopts a final school budget. This final budget 1s then submitted, m accordance With proV1s1ons of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education The Board may mcrease or decrease the budget at any time dunng the year All unexpended budget authonty 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 mvestmcnts With ongmal matunttes of three months or less from the date of acqu1s1tton m authonzed financial mstltuttons. Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or insured Federal savmgs and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1pahng mterest-earrung contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost Partic1patmg mterest-earrung contracts and money market mvestments With a matunty at purchase ofone year or less are reported at amortized cost Both part1c1patmg mterest-earmng contracts and money market mvestments With a matunty at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and m selectmg among options for mvestment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given eqmvalent comhttons of safety and hqmd1ty Funds may be mvested m the folloWing
( I) Obhgattons issued by the State of Georgia or by other states,
(2) Obhgatlons issued by the Uruted States government,
(3) Obhgat1ons fully insured or guaranteed by the Umted States government or a Umted States government agency,
(4) Obhgatlons of any corporation of the Umted States government,
(5) Pnme banker's acceptances,
(6) The Local Government Investment Pool adm1rustered by the State of Georgia, Office of Treasury and Fiscal Services,
- 10 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note l SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7) Repurchase agreements, and

(8) Obhgatlons of other poht1cal subd1v1s10ns 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 cntena has been met Receivables recorded on the general-purpose financial statements do not include any amounts winch would necessitate the need for an allowance for uncollectlble receivables

PROPERTY TAXES

The Laurens County Board of Comm1ss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on August 20, 2001 (levy date) Taxes were due on December 15, 2001 (hen 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 Laurens County Tax Comrmss1oner bills and collects the property taxes for the School D1stnct, withholds 2 5% of taxes collected as a fee for tax collection and remits the balance of taxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and operations amounted to $8,014,338 44 and for school bonds amounted to $588 65

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

School Operations

ll..Qm11Js

SALES TAXES
Special Purpose Local Opllon Sales Tax revenue dunng the year amounted to $3,687,936.86 and 1s to be used for capital outlay for educat10nal purposes or debt service Tlus sales tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES lnventones of donated food commod1t1es used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods invcntones are reported on the Combined Balance Sheet at cost (first-in, first-out) Donated food commod1t1es are recorded as revenues and expenditures at the time commodity items are received Purchased foods inventones are recorded as expenditures at the time of purchase The inventones reported on the balance sheet

- 11 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
for donated food commod11Ies and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgallon bonds to provide funds for the acqu1S11Ion and construction ofmaJor capital fac1ht1es Bond premmms and discounts, as well as issuance costs, are recognized m the financial statements dunng the year bonds are issued. In add11!on, general obhgatJon bonds have been issued to refund ex1stmg general obhgalion bonds General obhgatJon bonds are direct obhgalions and pledge the full faith and credit of the government. The outstandmg amount of these bonds 1s recorded m the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School D1stnct has the followmg types of mterfund transact10ns
Reimbursements ofexpenditures 1mlially made from a fund that are properly applicable to another fund are recorded as expenditures m the re1mbursmg fund and as reduclions of expenditures m the fund that 1s reimbursed
Operating transfers are recorded for all mterfund transactions other than reimbursements
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are capt10ned "Memorandum Only'' to md1cate that they are presented only to facilitate financial analysis. Data m these columns do not present financial pos11ion or results of operations m conformity with generally accepted accountmg pnnc1ples Neither are such data comparable to a consolidation Interfund ehmmat10ns have not been made m the aggregation of this data Certain reclass1ficalions have been made to the comparalive data to conform to the current year class1ficat1ons.
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 many depository for a lime longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofmsurance, or by collateral The aggregate ofthe face value of such surety bond and the market value of secunlles pledged shall be equal to not less than 110 percent of the public funds bemg secured after the deduct10n ofthe amount ofdeposit insurance Ifa depository elects the pooled method (OCGA 45-8-13 I) the aggregate ofthe market value ofthe sccunlles pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool

- 12 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
balance OCGA Sect10n 45-8-1 l(b) provides an officer holdmg pubhe funds may, m !us d1scret1on, waive the reqwrement for secunty m the case ofoperatmg funds placed m demand deposit checkmg accounts
Acceptable secunty for deposits consists of any one of or any combmat1on of the followmg
( 1) Surety bond signed by a surety company duly qualified and authonzed to transact busmess w1thm the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of mdebtedness or other duect obhgahons of the Umted States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obhgahons of the counties or mumc1pahhes of the State of Georgia,
(5) Bonds of any pubhc authonty created by the laws of the State of Georgia, prov1dmg that tbe statute that created the authonty authonzed the use of the bonds for tlus purpose,
(6) lndustnal revenue bonds and bonds of development authonhes created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgatlons of a subs1d1ary corporallon of the Umted States government, which are fully guaranteed by the Umted States government both as to pnnc1pal and mterest or debt obhgat10ns 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 Assoc1ahon, and the Federal Nat10nal Mortgage Association
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $13,654,862 17 The amounts of the total bank balances are classified mto three categones of credit nsk
Category 1 - Cash that 1s insured (e g, Federal depository msurance) or collaterahzed With secunhes held by the School D1stnct or by the School D1stnct's agent m the School D1stnct's name
Category 2 - Cash collaterahzed with secunllcs held by the pledgmg financial 1nst1tut10n's trust department or agent m the School D1stnct's name
Category 3 - Uncollatcrahzed deposits (This mcludes any bank balance that 1s collaterahzed with secunhes held by the pledging financial mstltutlon, or by its trust department or agent but not m the School D1stnct's name.)
- 13 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

The School D1stnct's deposits are classified by nsk category at June 30, 2002, as follows

Risk Category

Bank Balance

1

$ 857,327 37

2

11,741,817 73

3

1,055,717 07

Total

$13,654,862, 17

CATEGORIZATION OF INVESTMENTS Investments are classified as to nsk by the three categones descnbed below

Category 1 - Insured or registered, or secunttes held by the School D1stnct or the School D1stnct's agent m the School D1stnct's name.
Category 2 - Unmsured or unregistered, with secunl!es held by the countcrparty's trust department or agent m the School D1stnct's name.
Category 3 - Unmsured or unregistered, with secunlJes held by the counterparty, or by its trust department or agent but not m the School D1stnct's name

At June 30, 2002, the carrymg value of the School D1stnct's total mvestments was $234,416 04 which 1s matenally the same as fair value The mvestments are classified as to nsk categones as follows

Jype of Investment
U S Government

Risk Catesoocs

Carrymg Amount

Fair
Value

s 234416()4 s

000 s,_ _-.1o9i.i.99111 s 234 416 04 s 234 416 04

Note 3 NON-MONETARY TRANSACTIONS

The School D1stnct receives food comrnod1ttes from the Uruted States Department of Agnculture (USDA) for school breakfast and lunch programs These comrnodtt1es arc recorded at theu Federally assigned value. See Note 1 - Inventories

Note 4 RISK MANAGEMENT

The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destrucl!on of assets, errors or om1ss1ons, Job related illness or mJunes to employees, acts of God and unemployment compensal!on

- 14 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

The School D1stnct part1c1pates m the Georgia School Boards Assoc1at10n Risk and Insurance Management System, a pubhc entity nsk pool organized on July 1, 1994, to develop and adrmmster a plan to reduce nsk of loss on account of general hab1hty or property damage, mcludmg safety engmeenng and other loss prevention and control techmques, and to admm1ster one or more groups ofself-msurance funds, mcludmg the processmg and defense ofchums brought agamst members of the system The School D1stnct pays an annual premmm to the system for its general insurance coverage Additional coverage 1s provided through agreements by the system with other compames accordmg to theu specialty for property, bmler and maehmery (mcludmg coverage for flood and earthquake) and general hab1hty (mcludmg coverage for sexual harassment, molestation and abuse) Payment of excess msurance for the system vanes by !me of coverage.

The School D1stnct 1s self-msured with regard to unemployment compensation chums. The School D1stnct accounts for claims w1thm the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estlffiated

Changes m the unemployment compensation claims hab1hty dunng the last two fiscal years are as follows

2001 2002

Begmnmg of Year L1ab1hty

Claims and Changes m Estimates

Claims Paid

End of Year L1ab1hty

$

0 00 $

2 472 74 $

2 472 74 $

0 00

$

000 $

607 28 $

607 28 $

000

The School D1stnct part1c1pates m the Georgia School Boards Association Workers' Compensation Fund, a public entity nsk pool orgamzed on July I, 1992, to develop, implement, and admm1ster a program ofworkers' compensation self-msurance for Its member organizations The School D1stnct pays an annual premium to the Fund for its general msurance coverage Add1t1onal msurance coverage 1s provided through an agreement by the Fund with the Umted States F1dehty and Guaranty Company to provide coverage for potential losses sustained by the Fund m excess of $350,000 00 loss per occurrence, up to the statutory hm1t.

The School D1stnct has purchased surety bonds to provide add11lonal msurance coverage as follows

Pos1t1on Covered

Amount

Supenntendcnt Employees' Blanket Bond

$ 50,000 00 $ 100,000 00

- 15 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

CAPITAL LEASES
The Laurens County Board of Education has entered mto vanous lease agreements as lessee for buses and eqwpment These lease agreements quahfy as capital leases for accountmgpurposes and, therefore, have been recorded at the present value of the future mm1mum lease payments as of the date of their mcept10n

ADVANCE REFUNDING
Dunng fiscal year 2002, the Laurens County Board of Education issued $6,625,000.00 m General Obhgahon Refundmg Bonds to advance refund $3,250,000.00 of outstandmg general obhgatlon bonds and $3,150,000 00 of outstanding cerhficates of part1c1pahon The refunding bond issue of $6,625,000 00 plus premmm of$27,971 42 less underwnters and bond issue costs of$138,478 63 provided net proceeds of $6,514,492.79 for the refundmg These net proceeds were deposited m an mevocable trust with an escrow agent to proVJde for future debt service payments on the 1995 Bond issue and the 1999 Certificates of Part1c1pat1on As a result, the 1995 Senes Bonds and the 1999 Certificates ofPart1c1pahon are considered defeased, and the hab1hty for these debt mstruments has been removed from the General Long-Term Debt Account Group The Laurens County Board of Education refunded the aforementioned bonds to reduce Its total Debt Service payments over 14 years begmnmg subsequent to fiscal year 2002 by 5427,756 61 Due to the nature ofth1s advanced refundmg the economic gam cannot be determmed

GENERAL OBLJGATION DEBT OUTSTANDING General Obhgat10n Bonds currently outstandmg are as follows

Purpose

Intere~t Rates

Amount

General Government - Senes 1997 General Government - Senes 1998 General Government - Refundmg - Senes 2002

4 00% - 4 35% 3 75% - 4 05% 2 40% - 3 70%

$ 1,590,000 00 2,095,000 00 12,450,000 00

$ I6.135.000.00

The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows

- 16 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 GENERAL LONG-TERM DEBT

Balance July I, 2001
Retroactive Restatement of Pnor Year Balances

General

Camtal Leases

Obhgauon

QSBA

Other

Bonds

Total

S 3,252,214 58 S 427,013 38 SI 0,620,000 00 S14,299,227 96

149.839 49

149 8W49

Balance July I, 2001 Restated
Add1t1ons Capital Leases GO Bonds
Deductions Debt Retired Debt Dcfcascd
Balance June 30, 2002

s S 3,252,214 58

576,852 87 SI 0,620,000 00 Sl4,449,067 45

12,481 75

12,481 75

12,450,000 00 12,450,000 00

102,214 58
3,150.000 00

251,179 19

3,685,000 00 3.250.000 00

4,038,393 77 6.400.000 00

s

000 s JJS 155 43 SI~ IJS WlQ 00 SI~ 47'\ IS~ 4J

At June 30, 2002, payments due by fiscal year which mcludes pnncipal and mterest for these items are as follows

Fiscal Yecll' Ended June 30
2003 2004 2005 2006 2007 2008
Total Pnnc,pal and Interest
Deduct Imputed Interest
Net Present Value of Future M1mmum Lease Payments

!:aQltal Leases

QSBA

Other

General
Obhgallon
Bonde;

Total Debt

s

000 S 181,875 82 S 4,248,887 50 S 4,430,763 32

97,51699 2,759,875 00 2,857,391 99

93,921 00 2,758,475 00 2,852,396 00

2,752,140 00 2,752,140 00

2,762,620 00 2,762,620 00

2,732.495 00 2712 495 00

s

0 00 s 373,313 81 SJ80l449250 SJ 387 806 ]I

000

35,158 38

s

000 s 338 155 43

Note 6 SHORT-TERM DEBT

The School D1stnct obtams temporary loans m advance of property tax collecllons, depos1tmg the proceeds m its General Fund ThlS short-term debt 1s to provide cash for operations unlll property tax collectlons are received by the School D1stnct Article IX, Section V, Paragraph V of the Conslltutlon of the State of Georgia hm1ts the aggregate amount ofshort-term debt to 75 percent of the total gross mcome from taxes collected m the precedmg year and reqmres all short-term debt to be repaid no later than December 31 of the calendar year m which the debt was mcurred

- 17 -

LAURENS COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 6 SHORT-TERM DEBT

Temporary Loans

Begmmng Balance

Add1t1ons

Payments

Endmg Balance

$ soo ooo oo $.____.o.,o.,.o $ soo,ooo oo s.__...i,ow:o~o

Note 7: ON-BEHALF PAYMENTS

The School D1stnct has recogmzed revenues and expenditures m the amount of $385,310.49 for health msurance and retirement contnbutions paid on the School D1stnct's behalf by the followmg State Agencies.

Georgia Department of Education Paid to the Georgia Department ofComrnllillty Health For Health Insurance of Non-Certified Personnel In the amount of$333,717 49

Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of$51,593.00

Note 8 SIGNIFICANT COMMITMENTS

The followmg 1s an analysis ofs1gmficant outstandmg construcllon or renovation contracts executed by the School D1stnct as of June 30, 2002, together with fundmg available

Pro1ect
99G/98S-687-057 02G/01 S-687-029

Unearned Executed Contracts
s 15,605 00
4,685,059 95

Fundmg Available From State
$ 148.884 00

$ 4,700,664,95 $ l:1,~liOO

The amounts descnbed m this note are not reflected m the general-purpose financial statements

Note 9 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government are suhJcct to audit and review by grantor agencies This could result m requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms The School D1stnct beheves that such d1sallowances, 1f any, will be 1mrnatenal to its overall financial position.

- 18 -

LAURENS COUNTY BOARD OF EDUCATlON

EXHIBIT "D"

NOTES TO TI-IE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 9 CONTINGENT LIABILITIES

The School D1stnct 1s a defendant m vanous legal proceedmgs pertammg to matters mc1dental to the performance ofroutme School D1stnct operat10ns. The ultimate d1spos11ion of these proceedmgs 1s not presently deterrnmable, but 1s not believed to be matenal to the general-purpose financial statements.

Note IO RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, admm1strat1ve and clencal personnel employed by local school d1stncts are covered by the Teachers Retirement System of Georgia (TRS), which 1s a cost-shanng multiple employer defined benefit pens10n plan TRS provides service retirement, d1sab1hty retirement and survivors benefits for its members m accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% of their gross eammgs to TRS The School D1stnct makes monthly employer contnbulions to TRS at rates adopted by the TRS Board ofTrustees m accordance with State statute and as advised by their mdependent actuary The reqmred employer contnbuuon rate 1s 9 24% and employer contnbutlons for the current fiscal year and the precedmg two fiscal years are as follows

Fiscal Year
2002 2001 2000

Percentage Contnbuted
100% 100% 100%

Reqmred Contnbut10n
$ 2,074,655 07 $2,404,539.18 $ 2,325,491 99

- 19 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
lnventones Food Donated Commod1bes Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 374,537 62 $ 175,856 28

52,965 95

5,790 46

11,473 97 17 188 14

Total Assets

$ 4561165 68 $ 18164674

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Total L1ab1lobes
FUND EQUITY
Fund Balances Reserved For Contlnuabon of Federal Programs For lnventones Food Donated Commodmes Purchased Food Unreserved Undeslgnated
Total Fund Equrty
Total LJab1lmes and Fund Equity

$ 23,26514 $ 45,147 58

108,161 40

136,499 16

$ 131 426 54 $ 181 646 74

$ 11,473 97 17,18814
296.077 03 $
$ 324 739 14 $

000 000

$ 4561165 68 $ 18164674

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

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS JUNE 30, 2002 JUNE 30, 2001

$ 550,393 90 $ 376,050 09

$ 473,570 10

532,326 51

246,281 82

11,47397 17188 14

13,006 87 4 979 45

$ 47357010 $ 1,111,382 52 $ 640,318 23

$ 172,682 85 $ 93,741 30
203,231 29 3 914 66
$ 473 570 10 $

172,682 85 $ 162,154 02 447,891 85
3 914 66
786 643 38 $

20,116 53 116,111 30 385,191 69
521,419 52

$

113 58

$
$ _ _ _..,:0:.;0:..:0:... $ _ _ _..,:0:.;0:..:0:.. $

11,473 97 17,18814

13,006 87 4,979 45

296 077 03

100 798 81

324 739 14 $ _ _,_1.:..:188e<:9<e8c.:7...:1_

s s $ 473 510 10

1,111 1352 52 _.;64=0.::3~18::.2:.:3:..

- 21 -

LAURENS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BAIANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current lnstrucbon Support Services Pupil Services Improvement of Instructional Services General Admm1strallon Business Admlnlstrabon Maintenance and Operabon of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operabons
Debt Service Pnnc1pal Interest
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operabng Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory Net Change In Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the genera~purpose financial statements
22

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$ 163,546 00 $ 1,348,342 92 1,911,599 36 576,136 25
$ 2,651,281 61 $ 1,348,342 92

$ 1,119,742 01
104,365 15 6,972 92

$ 2,456,003 39

29,400 29 16,599 00 8,924 42
5,877 42

54,994 78 3,332 08

$ 2,456,003 39 $ 1,350,208 07

$ 195,278 22 $

-1,86515

$ 195,278 22 $ 118,785 13
-1,532 90 12,208 69

1 865 15
000 000

$ 32413914 s _ _ _....::,o.;;;oo::..

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$ 1,511,888 92 $ 1,404,694 46

$ 2,310,093 69

4,221,693 05

3.460,886 20

576136 25

54111004

$ 2,310,093 69 $ 6,309,718 22 $ 5,406,690 70

$ 2,027,384 99 $ 3,147,127 00 $ 2,620,70. 2 44

131,856 69 80,554 61 74,665 02
3,922 64 1,955 47
1,919 52

236,221 84 87,527 53 74,665 02
29.400 29 20,521 64 10,879 89 2,461,880 81
1,919 52

168,104 27 108,773 35
56,731 49 920 00
41,10533 13,457 87 4,17505 2,326,182 98
1,231 05

54,994 78 3 332 08

$ 2,322,258 94 $ 6 128 470 40 $ 5,341,383 83

$ -12,165 25 $ 181,247 82 $

65,306 87

12 051 67

13 916 82

$

-11358 $ 195,164 64 $

65,306 87

113 58

118,898 71

59,013 28

-1,532 90 12 208 69

-4,434 69 -986 75

$

000 $ 324 739 14 $ __1_1,_8._89;.8..;7..;1.

- 23 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Receivable Due from Other Funds
Total Assets

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$ 5,156,548 83 $ 2,429,125 49

209,365 07

66692

628,568 95

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Contracts Payable Retamages Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Purpose of Bond Issue For SPLOST Projects For State Capital Outiay Projects Unreserved Undes,gnated
Total Fund Equrty
Total l.JablllUes and Fund Equity

$

37,908 36

100 00

$

38,008 36

$ 5,365,913 90 $ 3,020,353 00

0 00

000

$ 5,365,913 90 $ 3,020,353 00

See notes to the genera~purpose financial statements - 24 -

EXHIBIT "G"

LOTTERY PROJECT

TOTALS JUNE 301 2002 JUNE 30. 2001

$ 376,394 90 $ 7,962,069 22 $ 2,354,584 42

210,031 99

244,498 40

873,067 35

655,706 57

458 609 89

$ 620,893 30 $ 9,045,168 56 $ 3,468,900 88

$ $ 457,805 20
163.088 10
$ 620.893 30 $

37,908 36 457,805 20 16318810 $ _ _44""""'2""95=-=80~

658.901 66 $

44.295 80

$ 5,365,913 90 3,020,353 00 $ 2,955,405 08 469,200 00

$

0 00

000

0 00

s

000 $ 8.386.266 90 $ 3.424.605 08

$ 620,893 30 $ 9,045,168 56 $ 3,468,900 88

- 25 -

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

REVENUES
State Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Admm1strabon
Capital Outlay Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES IUSESl
Premiums on Bonds Sold 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 Fmancmg Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

BOND PROCEEDS

SPECIAL PURPOSE LOCAL OPTION SALES TAX

$

12,984 33 $

62 973 08

$

12 984 33 $

62.973 08

$

63,429 26

$

$

63.429 26 $

$

-50 444 93 5

37 908 36 37 908 36 25 064 72

$

24,593 73

5,825,000 00
s
-433.234 90

$ 5.416,358 83 $

39,883 20 39,883 20

$ 5,365,913 90 $

64,947 92

0 00

2,955.405 08

See notes to the general-purpose financial statements 26

EXHIBIT "H"

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001

$ 1,339,956 00 $ 1,339,956 00

$ 3,461,469 43

75 957 41

70 317 74

$ 1,339,95600 $ 141591341 $ 3,531,78717

$

63,429 26

$ 2,202,507 70

2,202,507 70 $ 1,026,528 63

37 908 36

322 191 20

$ 2,202,507 70 $ 2,303,845 32 $ 1,348,719 83

$ -862,551 70 $ -887 931 91 $ 2,183,067 34

$

24,593 73

$ 394,847 50 -149580

5,825,000 00
434,730 70 s
-434 730 70

469,200 00 -626,523 25

$ 393 351 70 $ 5,849,593 73 $ -157 323 25

$ -469,200 00 $ 4,961,661 82 $ 2,025,744 09

469,200 00

3,424,605 08

1,398,860 99

s

o oo $ 813861266 90 $ 3,424 1605 08

- 27 -

LAURENS COUN"TY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND
JUNE 30, 2002

EXHIBIT "I"

ASSETS
Cash and Cash Equivalents Investments Accounts Rece,vable
Total Assets
FUND EQUITY Fund Balances
Reserved For Deb1 Service
Unreserved Undes,gnaled
Total Fund Equity

PROPERTY TAXES
FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2002 JUNE 30, 2001

$

539,177 97 $ 539,177 97 $ 955,782 61

$ 25,05097

25,050 97

37 72

3772

163 96

$ 251088 69 $

539177 97 $

$ 25,088 69 $ 000

539,177 97 $ 000

564,26666 $ 000

955,946 57 000

$

539 177 97 $ 5641266 66 s_.,,..955=,;;;;94;;:6:.;5;;.;1_

See notes to the general-pur~e financial statements

- 28 -

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

EXHIBIT"j

PROPERTY TAXES
FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED
JUNE 30. 2002 JUNE 30. 2001

REVENUES
Taxes Other Funds
Total Revenues

s

s s s 58865

3,687,936 86

3,688,525 51

321,775 38

666

44 937 03

44 943 69

199,280 02

s

s s 595 31 $ 3,732,873 89

3,733.469 20

521,055 40

EXPENDITURES
Debt Service P~nclpal Interest
Total Expenditures
Exce&s of Revenues over (under) Expenchtures

s

s s 000

3,685 000 00

3,685,000 00 s 3,235,000 00

464 525 00

464,525 00

596,267 50

s

s s 0 OD

4 149 525 00

4 149 525 00 $ 3,831,267 50

$

s s s 595 31

-41665111

-41605580 3,310,212 10

O:[HER FIN1!,NCING SQURCES (USES)
Acaued Interest on Bonds Sold Refunding Bond Issuance cost Premtum on Bonds Sold Proceeds of Refunding Bonds
Par Value Payments to Bond ESCl'OW' Agent Operatmg Transfera 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

s 25 047 92
-138,478 63
27,971 42

6,625,000 00
-6,514,492 79
s
-718 50

$

24 329 42 $

$

s 24 924 73

163 96

s

25,047 92

-138,478 63

27 971 42

46 47

6,625,000 00 -6,514,492 79
46 47
-718 50 s

4647 s

24 375 89 $

-1 484 01 -1 484 01

-416 604 64 $ 955 782 61

s -391 679 91 3,311,69611

955 946 57

4,267,642 68

FUND B1!,1/',NCE JUNE 30

s

25 088 69 $

s 539 177 97 $ 5641266 66

9551946 57

See note& to the genera~urpose financial statements

29-

----------

LAURENS COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FJDUCIARY FUND TYPES - AGENCY FUNDS
YEAR ENDED JUNE 30, 2002

EXHIBIT "K"

GSBA CONSTRUCTION PROJECT
ASSETS Investments Held by Trustee

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

s s s 339 668 04

6 23116

345 899 20 s_____o_oo_

1

1

LIABILITIES Funds Held for Others

s s 339 668 04

6 23116 $ 345 899 20 s _ _ _ _ _o_oo__

1

1

COCA-COLA FUND
ASSETS Cash and Cash Equivalents

$

0 00 $ 105 30 $

s__ o oo

..,,,,;1.,.0.,5_3_0

LIABILITIES Funds Held for Others

$

0 00 $ 105 30 $

s__ o oo

..,,,,;1,.0.5..3..0....

TOTALS -AGENCY FUNDS ASSETS
Cash and Cash Equivalents Investments Held by Trustee
LIABILITIES Funds Held for Others

$

000 $ 10530 $

000 $

339,668 04

6 231 16

345,899 20

105 30 000

s $ 339166a 04 $ 6 336 46

3451899 20 s _ _~1~0.;;;s,;;;30::.

s s_ _ s 3391668 04 $ 6 336 46

345 a99 20

..,,,,;1,.o.s..3.0. :..

See notes to the general-purpose financial statements

LAURENS COUNlY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30. 2002

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agriculture U S Department of Chlki Nutntion Cluster Pass-Through From Georgia Department of Education Food and Nutr11Jon Program FoodSeMces School Breakfast Program National School Lunch Program Pass-Through From Offk::e of School Readiness Food and Nubibon Program Summer Food 5ervk:e Program
Total Child Nutnbon Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutntlon Program Food D16lnbubon Program (1)
Total U S Department of Agrlcuttura
Education, U S Department of Special Education Cluster Pass-Through From Georgia Deparbnent of EducaUon Individuals wrth Dlsabillties Education Act Part B Special EducallOn Flow Through Pre~I Capacity Building Improvement Grant
Total Special Educallon Cluster
Other Programs Pass-Torough From First Dlsbict Reglonal EducabOnal Service Agency d/ble Live Oak Milgrant Educabon Agency Elementary and Secondary Education Act TIiie I Migrant Education Pass-,Through From Georgia Department of Education Elementary and 5econdary Educabon Act TIiie I Grants to Local Educational Agencies TIiie II Eisenhower Professional Development TIiie Ill Technology Literacy Challenge Fund Grants Title V1 IMOVBtive EducallOll Program Strategies Class Size Reduction Goals 2000 State and Lcx::al Education System1c Improvement Grants

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555
10 559

WA

s 487,729 24

(2)

WA

s 1,205,595 51

2,311,703 99 (3)

WA

73,975 21

(2)

s s 1,767,299 96

2,311,703 99

10 550

WA

144,299 40

144,299 40

s s 1911,59936

2,456,003 39

84 027 84 173 84 173

WA s s 544,735 75

WA

29,643 86

NIA

8 974 39

s s 583,354 00

544,735 75 29,643 86 8,974 39
583,354 00

84 011

NIA

24,219 61

24,219 61

84 010 84 281 84 318 84 298 84 340
84 276

NIA

1,047,858 38

1,047,858 38

WA

35,945 37

35,945 37

NIA

109,008 38

109,008 38

WA

235,433 00

247,481 56 (3)

WA

155,974 83

155,974 83

WA

8,563 28

8 667 58

31

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Educabon,U S Departmentol Other Programs Pass-TlYoogh From Georgia Department of Educebon Safe and Drug-Free Schools and Communrtles
Vocabonal EducaUon - Basic Grants to States High School Program BaSIC Grant
Tolal U S Department of Educabon

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

84186 84 048

NIA

$ 18,326 84 $

18,336 12

NIA

9141000

91,413 11 (3)

$ 2,310,093 69 $ 2,322,258 94

Total Federal Flnaocial Assistance
NIA = No1 Available

s 4,221,693 os s___4_11_a_.,_26_2_JJ_

Notes to the Schedule of Exoenchtums of Fooera1 Awards
(1) The amounts shown for the Food Distnbutlon Program represents the Federally asstgned value of nonmonetary assistance for donated commochtfes received and/or consumed by Hle system dunng the current fiscal year
(2) Expenditures for the Summer Food ServlC8 Program and the School Breakfast Program were not maintained
oeparatety and are Included In the 2002 National School Lunch Program (3) Expenditures for this program tnclude State, and/or Other Funds
Expenditures are not maintained by fund source

MaJor Programs are tdentlfled by an astensk r) In front of the CFOA number

The School District did no1 provide Federal Assl61ance to any Subreaplent

The accompanying schedule of expenditures of Federal awards Includes the Federal grant actrvlty of the Laurens County Board of Education and Is presented on the mochfied accrual bas1& of accounbng which Is the bast& of eccounbng used In the presentabon of the general-purpose fananclal statements

See notes to the general-purpose financial statements

- 32

LAURENS COUNTY BOARD OF EDlJCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2002

SCHEDULE "2"

AGENCYfFUNDING

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

GRANTS Commuraty Affairs Geory,a Department of Goverrto(s Emergency Funds Local Asslstanc:e Grant

s

13,500 00

27,500 00

s

13,500 00

27,500 00

Educa11011, Geor!J,a Departmen1 of
Oualrty BaslC Educatlon Dl1'8Ct lnstruchonal Cost Kndergarten Program Kindergarten Program - Early lnterventton Program Primary Grades (1-3) Program Primary Grades- Eerty ln1ervenbon (1-3) Program Upper Elementa,y Grades (4-5) Program Moddlo School (6-8) Program Middle School (6--8) Program Earty lntorventmn Program High School General Education (9-12) Program Vocational Labora1ory (9-12) Program Students wtth Olsablh!Jes Catogory I
Catogory II Category Ill Category IV Category V Gifted Student - Category VI Special Ed - ltnerant Spoc,at Ed Supplomonlal Speech Remedial Educa.Uon Program Allemabve Educa.Uon Program
Engllsh Speakers ol Other Languages (ESOL) Media Center Program
Staff and Professional Dovelopmen1
Indirect Cost 20 Days Addrtlonal lnslrud!on
Categorical Grams Pupil Transportabon Regular Bus Replacement Sparsity Nursmg S8MC8S Pr1ndpa1 Supplements Vocatlonal SupeMSOrs Migrant Educ:abon
Educatton EqualaallOn Funding Grant Food Services VocatlonalEducabOn Other State Programs
Student Ac:htevement Health Insurance Praschool Hand,cappod Program
Post Secondary Option - Spnng

1271,55500 440,888 00
3,296,877 00 794 045 00
1,815,760 00 3,331,521 00
409,918 00 2,531,482 00
972,983 00
84,265 00 678 703 00 1,286,73000 11409700
30,894 00 391,339 00
26,283 00 14,638 00 223 190 00 251,962 00 41 066 00 560,086 00 92 721 56 3 320 996 00 173,256 00

984,839 00
256,482 00
20 000 00
126,378 00
24,067 00 37,175 00
79500 1,672,399 00
s
211,499 26

163,546 00

229,320 00 333,717 49
45,609 63 2,079 00

1,271,555 00 440,888 00
3,296,877 00 794,045 00
1,815,760 00 3,331,521 00
409 918 00 2,531,482 00
972,9113 00
84 265 00 678 703 00 1,286,730 00 114,097 00
30 894 00 391 339 00
26 283 00
14,638 00 223,190 00 25196200
4106600 560,086 00
92,721 56
3,320,996 00 173,256 00
984,839 00 256,482 00
20,000 00 126,378 00 24,067 00
37,175 00 79500
1,672,399 00 163,546 00 211,499 26
229,320 00 333,717 49
45 609 53 2,079 00

Lottery Program,
Asslstrve Techncrtogy Ccrnputers 1:n the Classroom Exceptional GrtM'lh-Cap1tal Outlay

8 088 90 141 267 42

s 1,339,956 00

8 088 90 141,267 42 1,339,956 00

Office of School Readlll8SS Pre-Kindergarten Program

1 198,986 60

1,198,986 60

- 33-

LAURENS COUNTY BOARD OF EDUCATIQN SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEOULE7'

AGENCYIFUNPING
GRANTS Office of Treasury and Fiscal SeMCeS Pubftc School Employees Retlremont
CONTRACTS
Educabon, Georg,a Department of 4-8 Statewide Aflef Sdlool Program K-3 Statewide Reachng Program

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

51,593 00

s

51,593 00

44,307 69 69 020 76

44,307 69 69 020 76

s $ 2612851537 39 $ 11511188892 $ 113391956 00

29.1371382 31

See noto9 1o the general-purpose financial statements

. 34-

LAURENS COUNTY BOARD OF EDUCATION SCHEDULE OF APPBO\fED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3"

PROJECT
Acquiring land, constructng end equipping
two new elemen1ary schools (Noohwest and Southwest Laurens Elementary
Sdlools), renovatrng, rnprowig and adding to East Laurens High Sdlool, acquiring, constructing and equipping
renova110TlS to East Laurens Elementary School, making Improvements to the physical educabon and athletlc faolJUes at East Laurens and West Laurens High Scrools, and rtmng previously "1cu:rad general obllgatk>n deb!

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR(3l

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

$ 21,343,65000 $ 21,343,65000 $ 2560,09356 $ 17,148,11660 Ongoing

Complebon ol East t,acn,ns El<mentary
Amex
Pay off 1995 Soro Debi Pay off 1999 Certrficates of Partlapation (Northwost Laurans Elementary)
Purchase Buses
AdclilLOll9 renovattOnS and improvements to Southwest L.aU'8ns Elementary, East Laurens
Elementary, Middle and HJgh School Complex and West Laurens Mldd1e and High Schools Complex, 1nclu:llng the physical educa.11011 and athlebc faol1hes Tochnology Improvements

4 000 000 00 3,473,Jn oo
3,346 132 00 600,000 00

4,000,000 00 3,473,3TT 00
3,346, 132 00 600 000 00

394,847 50
3 473 3n oo
3,346, 132 00

17,530,491 00 1,000,000 00

17,530,491 00 t ,000,000 00

Ongoing Completed Compleled Ongolng
Ongomg Ongomg

S 51,49365000 S 5149365000 $ 9,794,45006 $ 1714811660

(1) The School Dtstncrs ongina1 cosI estimate as specified ln the resolution calbng for the mpostllon of the Local Option

Sales Tax

-

(2) Toa School Olslnc:t's rurrent estimate of lotal COS1 for the projects Includes all costs from pfOJ8Ct 1nceptJon lo compfetlon

(3) The voters of Laurens County approved the rnposruon of a 1% sales tax to fund the above projects and retire assocaated debt Amoults expended for these ~ may Include sales tax proceeds, state, local proporty
taxes and/or other funds over the hfe of the pro,ects

See noles lo the generaJ..purpose finaoaal statements

LAURENS COUNTY BOARD OF EDUCATION GENERAL FUND QUALllY BASIC EDUCATION PROGRAM IOBE}
ALLOTMENTS AND EXPENDITURES BX PROGRAM YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
Direct lnstrucbonal Programs Kindergarten Program Kindergarten Program-Earty lnterventlon Program Primary Grades (1-3) Program Pnmary Grades-Eany lnterven11on (1-3) Program Upper Elementary Grades (4-5) Program Upper Elemen1ary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocaoonal Laboratory (9-12) Program Students wrth Dlsabllruas Gategory Ill GIiied Student Ca1egory VI Remedlal Education Program Altemabve Educabon Program Engllsh Speaken; of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Meche Center Program Staff and Prolessional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

1,424,238 00 $ 1,236 878 94 $

31,485 74 $ 1,268,364 68

493,828 00

634,748 25

3,226 03

637,974 28

3,692,751 00

3,673,635 38

71,051 84

3,744 687 22

889,390 00

839,403 85

8,853 84

848,257 69

2,030,858 00

2,152,191 62

46,619 55

2, 198,81117

462,071 00 3,731,555 00 2,835.451 00 1,089,814 00 2,504,048 00
438,328 00 249 990 00 282,217 00
45 998 00

341,5TT 52 4,031,215 54 4,012,212 96
995,280 40
2,176,53910 383,753 74 236,504 94 345,910 15 41,06722

1,984 24 64,820 02 116,946 29 115,828 75
15,300 56 2,483 60 2,11083 5,032 38 787 62

343,561 76 4,096,035 56 4,129,15925 1,111,10915
2,191,839 66 386,237 34 238,615 77 350,942 53 41 854 84

$

20,170,537 00 $ 21,100,919 61 $ 486,531 29 $ 21,587,450 90

627,339 00 113,615 00

671,47812 34,682 98

104,939 33 78 932 02

776,417 45 113 615 00

TOTAL QBE FORMULA FUNDS

$

20,911,491 00 $ 21,807,080 71 $ 670,402 64 $ 22,477,483 35

(1) Compnsed of State Funds plus Local Five MUI Share

See notes to the general-purpose financial statements

36-

LAURENS COUNTY BOARD OF EDUCATION
GENERAL FUND QUALITY BASIC EDUCATION PROGRAM {QBE}
ALLOTMENTS AND EXPENDITURES BY SITE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

SITE
Southwest Laurens Elementary School East Laurens High School Northwest Laurens Elementary School East Laurens Middle School East Laurens Elementary School West Laurens Middle School West Laurens High School CrossRoads Alternative Central Office (Alternative Educahon Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,954,422 00 $ 3,033,490 73

2,224,308 00

2,728,312 27

3,386,031 00

3,426,805 67

1,752,367 00

1,922,072 37

3,751,716 00

3,823,293 57

2,869,696 00

2,948,386 51

2,949,780 00

3,488,667 26

174,567 68

282 217 00

41,854 84

$

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

SECTIONil COMPLIANCE AND INfERNAL CONTROL REPORTS

Ji>SELL W. HINTON
<;TATE AUDITOR
(40,1) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJshmg1on S1rccl, SW ~ullc 214 Allanw, Georg1J 30334-8400
May 20, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Laurens County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have audited the financial statements of Laurens County Board of Education as of and for the year ended June 30, 2002, and have issued our report thereon dated May 20, 2003 This report was quahfied for vanous departures from generally accepted accountmg pnnc1ples, as identified m the auditor's report on the general-purpose financial statements We conducted our audit m accordance with aud1tmg standards generally accepted m the Umted States of Amenca and the standards apphcable to financial audits contamed m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States
Comphance
As part of obtammg reasonable assurance about whether Laurens County Board of Education's financial statements are free of matenal misstatement, we performed tests of Its comphance with certam prov1s10ns oflaws, regulations, contracts and grants, noncomphance with which could have a direct and matenal effect on the determmatlon of financial statement amounts However, prov1dmg an op1mon on comphance with those prov1s1ons was not an obJectlve of our audit, and accordmgly, we do not express such an op1mon The results ofour tests disclosed no mstances ofnoncomphance that are requucd to be repc;irted under Government Aud1tmg Standards
Internal Control Over Fmancial Reporting
In plannmg and pcrformmg our audit, we considered Laurens County Board of Education's mternal control over financial reportmg m order to determme our audttmg procedures for the purpose of cxpressmg our opm10n on the financial statements and not to provide assurance on the mternal
2002YB-40

control over financial reportmg However, we noted certam matters mvolvmg the mtcrnal control over financial reportmg and its operat10n that we consider to be reportable cond1t10ns. Reportable cond1t10ns mvolve matters commg to our attention relatmg to s1gruficant defic1enc1es m the design or operation ofthe mternal control over financial reportmg that, m ourJudgment, could adversely affect Laurens County Board ofEducal!on's ab1hty to record, process, summanze and report financial data consistent with asserl!ons of management m the financial statements. Reportable cond11Ions are descnbed m the accompanymg Schedule of Fmdmgs and Quesuoned Costs as items FS-6871-02-01 and FS-6871-02-02
A matenal weakness 1s a cond1Uon m wluch the design or operat10n of one or more of the mternal control components does not reduce to a relalively low level the nsk that misstatements m amounts that would be matenal m relahon to the financial statements bemg audited may occur and not be detected w1thm a llmely penod by employees m the normal course of performmg their assigned funct10ns Our cons1derahon of the mtemal control over financial reporl!ng would not necessanly disclose all matters m the mtemal control that might be reportable cond11Ions and, accordmgly, would not necessanly disclose all reportable cond11Ions that are also considered to be matenal weaknesses However, all ofthe reportable cond1hons descnbed above are considered to be matenal weaknesses.
Th!S report 1s mtended solely for the mformat10n and use of the management, members of the Laurens County Board ofEducahon, Federal awardmg agencies and pass-through enllt1es and 1s not mtended to be and should not be used by anyone other than these specified parties

RWHgp 2002YB-40

Sta e Auditor

USSELI W. HINTO~
<;TATE AUOllOR
( 04j 6",f, 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, SW Sunc 214 Atlanw, Georgia 30334-8400
May 20, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Laurens 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
Comphance
We have audited the comphance of Laurens County Board of Education with the types of comphancc reqmrements descnbed m the US Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are apphcable to each of1ts maJor FederaJ programs for the year ended June 30, 2002 Laurens County Board of Education's maJor Federal programs are identified m the Summary of Auditor's Results Section of the accompanymg Schedule of Fmdmgs and Quest10ned Costs Compliance with the reqmrements of laws, regulations, contracts and b'r3ilts apphcable to each of its maJor Federal programs 1s the respons1b1lity of Laurens County Board of Education's management Our respons1b1hty 1s to express an opm1on on Laurens County Board of Education's comphance based on our audit
We conducted our audit of compliance m accordance with audttmg standards generally accepted m the Umted States of Amenca, the standards apphcable to financial audits contamed m Government Aud1tmg Standards. issued by the Comptroller General of the Umted States, and 0MB Circular A133, Audlls of States, Local Governments, and Non-Profit Organizatwns Those standards and 0MB Circular A-133 reqmre that we plan and perform the audit to obtam reasonable assurance about whether noncomphance wtth the types ofcomphance reqmrcments referred to above that could have a direct and matenal effect on a maJor Federal program occurred An audit mcludcs exarnmmg, on a test basis, evidence about the Laurens County Board of Education's comphance with those reqmrements and performmg such other procedures as we considered necessary m the circumstances We beheve that our audit provides a reasonable basts for our op1mon Our audit does not provide a legal determmatlon on Laurens County Board of Education's compliance with those requirements
2002SA-10

In our opm1on, the Laurens County Board of Educallon compiled, m all matenal respects, with the reqmrements referred to above that are apphcable to each of1ts maJor Federal programs for the year ended June 30, 2002
Internal Control Over Comphance
The management of Laurens County Board of Educat10n 1s responsible for estabhshmg and mamtammg effecllve mtcmal control over comphance with reqmrements of laws, regulahons, contracts and grants apphcable to Federal programs In plannmg and performmg our audit, we considered Laurens County Board ofEducallon's mternal control over comphance with reqmrements that could have a direct and matenal effect on a maJor Federal program m order to determme our aud1tmg procedures for the purpose of expressmg our opmton on comphance and to test and report on mternal control over compliance m accordance with 0MB Circular A-133
Our cons1derat1on ofthe mternal control over compliance would not necessanly disclose all matters m the mternal control that might be matenal weaknesses A matenal weakness 1s a condition m which the design or operahon ofone or more ofthe mternal control components does not reduce to a relatively low level of nsk that noncomphance with apphcable reqmrements oflaws, regulallons, contracts and grants that would be matenal m relahon to a maJor FederaJ program bemg audited may occur and not be detected w1thm a timely penod by employees m the normal course of performmg their assigned functions We noted no matters mvolvmg the mternal control over compliance and its operahon that we consider to be matenal weaknesses
This report 1s intended solely for the mformahon and use of the management, members of the Laurens County Board of Educahon, Federal awardmg agencies and pass-through ent1hes and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,
~.~~
Hmton Auditor
RWHgp 2002SA-10

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

LAURENS 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-6871-00-01 FS-6871-00-02 FS-6871-00-03 FS-6871-00-05 FS-6871-01-0 I FS-6871-01-02 FS-6871-01-03

Further Actton Not Warranted Further Act10n Not Warranted PreVJously Reported Correctlve Actlon Implemented Further Act10n Not Warranted PreVJously Reported Corrcctlve Action Implemented Partially Resolved - See Correctlve Action/Responses Unresolved - See Correct:tve Actton/Responses

CORRECTIVE ACTION/RESPONSES

CASH AND CASH EQUIVALENTS GENERAL LEDGER Inadequate Separation of Dutles Fmdmg Control Number- FS-6871-01-02

The School D1stnct hired a financial director and feels the addition of this pos1t1on has provided for adequate separatlon of duties

GENERAL FIXED ASSETS Failure to Mruntam General Fixed Assets Account Group Fmdmg Control Number FS-6871-01-03

In fiscal year 2003, the School D1stnct began mruntammg a General Fixed Assets Account
Group m order to comply with GASB 34

SECTIONN FINDINGS AND QUESTIONED COSTS

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

SUMMARY OF AUDITOR'S RESULTS

1 Type of Report Issued on the Fmancial Statements The auditor's opm1on on the Laurens County Board of Education's financial statements was quahfied for vanous departures from generally accepted accountmg pnnc1ples

2 Reportable Cond11Ions m Internal Control Disclosed by the Audit of the Fmanc1al Statements The audit report for the Laurens County Board of Education disclosed financial statement reportable cond11Ions related to the followmg control categones

General Ledger

General Fixed Assets

All of the reportable cond1t10ns descnbed above are considered to be matenal weaknesses

3 Noncomphance Malena! to the Fmanc1al Statements The audit of the Laurens County Board of Education disclosed no mstances of noncomphance that were deemed to be matenal to the financial statements

4 Reportable Cond11Ions m Internal Control Over Ma1or Programs The audit report for the Laurens County Board ofEducallon did not disclose any reportable cond11Ions m mtemal control over maJor programs

5 Type of Report Issued on Compliance for Ma10r Programs The auditor's op1mon on the Laurens County Board of Education's report on comphance with reqmrements apphcable to maJor programs was unquahfied

6 Audit Fmdmgs Regmred to be Reported by Secllon 5 I0(a) of 0MB Circular A- I33 The Laurens County Board ofEducallon's audit did not disclose audit findings rcqwred to be reported by secllon 510(a) ofOMB Circular A-133

7 Ma10r Programs Federal awards audited as maJor programs arc as follows IO 553 Food and Nutnt1on Program - Food Services - School Breakfast Program 10 555 Food and Nutnllon Program - Food Services - National School Lunch Program 10 559 Food and Nutnlton Program - Summer Food Service Program 84 010 Elementary and Secondary Educat10n 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 Aud1tee The Laurens County Board of Educallon did not qualify as a low nsk aud1tce as defined by Seclton .530 ofOMB Cucular A-133

-I-

LAURENS COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
TI FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL LEDGER Inadequate Control Procedures Reportable Comhllon - Malena! Weakness Repeated From Pnor Year Fmdmg Control Number- FS-6871-02-01
The School D1stnct did not provide for adequate separal!on of duties m the performance of accountmg funcl!ons and related procedures Journal entncs were not always reVJewed and approved by someone mdependent of the general ledger postmg and mamtenance functions In add11Ion, the Journal entnes were not always adequately documented and/or descnbed.
This cond11Ion was a result of management's dec1s1on to hm1t the respons1b1h1Ies of the ex1stmg adm1rustrat1ve staff made responsible for accountmg funct10ns relatmg to Journal cntnes Management should penod1cally review this dec1s1on to detenrune 1f employee duties can be reassigned to achieve a higher degree of mtemal control with existing staff
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Reportable Condition - Matcnal Weakness Repeated From Pnor Year Fmdmg Control Number FS-6871-02-02
The Laurens County Board of Education failed to mamtam a system-wide General Fixed Assets Account Group w1thm the formal accountmg records as rcqmred by generally accepted accountmg pnnc1ples ThlS condition results m the general-purpose financial statements ofthe School D1stnct bemg mcomplete and not m accordance with generally accepted accountmg pnnc1ples. Appropnate act10n should be taken by the School D1stnct to estabhsh accountmg controls and procedures to provide for mamtcnance of a General Fixed Assets Account Group These subsidiary records shouJd mclude an mventory of land, bmldmgs and equipment owned by the School D1stnct and should mclude, but may not be hm1ted to, date acqmred, acqms1tlon cost, estimated replacement cost, locat10n and description Detailed records should be maintained ofall additions and deletions to the General Fixed Assets Account Group.
III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported
-2-