:;A_~-,l A160p , RI f; ;;z (,' I... L, ioo,,);,. , ' -. ''., ,j ,I .';, l -SJATE OF GEORGIA ,, DEPARTMENT OF.AUDITS-AND. ACCOUNTS 'i ~ ' :.. - ,, - ' ,, ' ' , ' ' .' ' " ' r ,- t I ,r- ,, _, , ,_ ., ., ,, , -, .', - , - " ' ' '' ; '.,. ,,.,. ' f ,_ ,, ,, r ,, '' ''. \ ,' ;, .. LIBERTY ~ CO. UNTY BOARD OF EDUCATION- ' ,- . ljlNESVILLE., .' , .,: ' G,., , E' OR. G, IA , . .' REPORT ON -AUDIT, ; OF THE-FINAN.CIAL STATEMENTS 'FOR THE FISCAi YEAR ENDED JUNE 30. :2Q02 .. ; ~ " ,, ~ .~ ~ :: ' ' t , ., ' ' , 1., ': ' ' " I - ., ., ' , " ,, ' ' < ' , ,): < Russell W._Hlnton , . '' State.Auditor i <' " ; J. '' ,_ _, '''''" ., , , "' ..,..... ' ,_ ,- r .- .,. .:- , . , " ' LIBLRTY COUNTY BOARD 0~ rDUCATION - TABLE OF CONTEN IS - SECrION I rINANCIAL INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE flNANCIAL STAl EMENl SAND SUPPLEMENTARY INFORMATION SCI IEDULE OF EXPENDITURES O~ FEDERAL AWARDS EXHIBITS GENERAL-PURPOSE FINANCIAL STATEMENTS COMBINED Sl A fEMENTS - OVERVIEW A COMBINED BALANCI SHEET ALL rUND TYPES 2 B COMBrNED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES 4 C COMBINED STATEMENl OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 7 D NO fES TO THE GENERAL-PURPOSE FrNANCIAL STATEMENTS 8 ADDITIONAL FINANCIAL INfORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND F COMBINING BALANCE SHEET 18 F COMBINrNG SI A fEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHE:.ET 22 11 COMBINING STATEMENT OF REVENUES. EXPENDITURES AND Cl IANGES IN FUND BALANCES 24 SCHEDULES SCHEDULE OF EXPENDITURES or FEDERAL AWARDS 26 2 SCHEDULF OF STATE REVENUE 28 3 SCHEDULE OF APPROVED LOCAL OPTION SALES I AX PROJECTS 31 ALLOTMENTS AND EXPLNDITURES GENERAL FUND-QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 32 S BY SITE 33 LIBERTY COUNTY BOARD OF EDUCATION - TABLE OF CON I ENTS - SEC f!ON II COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORl ING BASED ON AN AUDIT OF FINANCIAL STATEME:.NTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORl 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 SCHLDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION I FINANCIAL Ru,~1,.u, W, lhN ION STAIE AUOITQf=! (434) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 W,1~hrngton Strccl, ~ W ~ulle 214 Atldnta. Georgia 10314-X400 June 16, 2003 1lonorable Sonny Perdue, Governor Members of the General Assembly Member, of the State Board ofEducauon and Superintendent and Members of the Liberty County Board of Educauon INDEPEND[NT AUDI I OR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIALS I A rE:MENTS AND SUPPLEMENTARY INFORMAl ION SCH[DULI: OF EXPEND! rURES OF FEDERAi AWARDS Ladies and Gentlemen We have audited the accompanying general-purpo<;e financial statements of the Liberty County Board of Education, a~ of and for the year ended June 30, 2002. as listed in the table of contents lbese general-purpose financial ,tatcmcnt, are the re,pon,1b1hty of the Liberty County Hoard of Education~ management Our re~pons1b1hty 1, to expres, an opinion on these general-purpo<;e financial ~tatement, based on our audit I:,'\cept as d1~cued in the following paragraph. we conducted our audit in accordance with aud!ling ,tandards generally accepted in the United States of America and the standards applicable to financial aud!ls contained in Government Auditing Standard,, issued by the Comptroller General of the United States [hose standards reqmre that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement An audn include, examining, on a test basis. evidence supporting the amounts and disclosures in the financial statement, An audit also includes assessing the accounting principles used and ,1gnificant e,!Imatcs made by management. as well as e\aluating the overall financial statement prescntallon We believe that our audit provide~ a reasonable basis tor our opinion We did not observe the taking of either the Federal donated commod111es inventory or purchased foods inventory at June 30. 2002, nor could we sat"fy oursclve, as to the accuracy of the amounts stated a, inventories through alternative procedures 2002ARL-13 As descnbed in the notes to the general-purpose financial statements, the Board of Educallon's financial statements have been prepared using certain accounting praellces and pohc1e, which, in our opin10n. vary in some respects from generally accepted accounting principles. These variances are described as follows !be general-purpose financial statements of the Board of Education did not contain a General Fixed As,ets Account Group to account for property and equipment owned hy the Hoard of Educat10n which should be included to conform to generally accepted accounting pnnciples School ac11v1ty accounts maintained at the ind1v1dual schoob are not included in the general-purpose financial statements To conform to generally accepted accounting pnnc1ples. these accounts should be included in the general-purpose financial statements. The Board of Education did not recogmze as expenditures, in the year ended June 30. 2002. a portion of salanes and the corresponding 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 Educat10n for the State's share of these unrecorded salanes and related benefits were not recorded as revenue in the year under review Conversely. the s1m1lar expenditures and related revenues for contractual services completed prior to June 30, 2001, were improperly recorded in the year ended June 30, 2002 To conform to generally accepted accounting pnnc1ples, 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 effect, on the general-purpose financial statements of these variances or om1ss10ns have not been determined, but are believed to be matenal In our opin10n. except for the effects of such adJustrnents. if any, on the Special Revenue Fund. as might have been determined to be necessary had we been able to sallsfy ourselves as to the accuracy of'the food service inventones as discussed in the thud paragraph, and 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 matenal respects. the financial pos1t1on of the Liberty County Board of Educat10n as ofJune 30, 2002. and the result~ of its operations for the year then ended. in conformny with accounting pnnc1ples generally accepted in the Umted States of America In accordance with Government Auditing Standard,, we have also ISsued our report dated June 16, 2003. on our cons1derat1on ofthe Liberty County Board ofEducat10n's internal control over financial reporting and our test~ of IL~ compliance with certain prov1s1ons of laws, regulallons. contracts and grant, That report 1s an integral part of an audit performed m accordance with Government Auditing Standards and should be read in conJuncllon with this report in cons1denng the results of our audit 2002ARL-13 Our audit was performed for the purpo,e of forming an opm1on on the general-purpose financial statements of the Liberty County Board of Education taken as a whole The accompanymg combmmg statements (Exh1b1ts E through H) and the financial schedules (Schedule~ 1 through 5), which mcludes the Schedule of Expenditures of Federal Awards as required by U S Office of Management and Budget Circular A-133, Audlls of States. Local Governments. and Non-Profit Orgam=atwm. are presented for purposes of add1t1onal analysis and are not a required part of the general-purpose financial statements Such information has been subjected to the audltmg procedures apphed m the audit of the general-purpose financial statements and m our opm1on, except for the effect of adJustments, ifany, on the Special Revenue fund, as might have been dctermmed to be nece~sary had we been abk to ~tisfy ourselves as to the accuracy of the food service mventones as d1,cussed m the third paragraph, and except for the effects of the matters referred tom the fourth paragraph, such information 1, fairly stated, mall matenal respects, m relat10n to the general-purpose financial statements taken as a whole A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Secuon 506-24 Respectfully submitted, -~ QJ_ w . ~ RWH as 2002ARL-13 State Auditor LIBERTY COUNTY BOARD OF FDUCATION ASSETS Cash and Cash Equivalents Investments Accounts Recervable Prepaid Items lnventones Food Donated Commochhes Purchased Food Total Assets LIBERTY COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES JUNE 30 2002 GOVERNMENTAL FUND SPECIAL GENERAL REVENUE FUND FUND $ s 23 980,923 29 7201072 528 312 21 1,078 921 32 275,018 00 144 868 35 23,026 29 $ 24}8'1,253 50 $ 1,318,826 68 LIABILITIES AND FUND EQUITY UABIUTIES Cash Overdraft Accounts Payable Salanes Payable Exp:red Grant Balances Payable Contracts Payable Reta:nages Payable Deferred Revenue Total L:ab:lrlleS FUND EQUITY Fund Balances Reserved For lnventones Food Donated Commodities Purchased Food For State Capital Outlay Protects For SPLOST Pro)8Cls Unreserved Undes,gnated Total Fund Equ:ty $ 7,705,247 90 s 3,035 57 137 521 37 609,662 36 s 7 708 283 47 S 3 221 03 750 404 76 $ 144,868 35 23 026 29 s 17,075,970 03 s $ 17 075 970 03 400 527 28 568 421 92 Total l.Jab1hbe9 and Fund Equity $ 24,784,253 50 $ 1,318,826 68 The notes to the genera"-Purpose financial statements are an integral part of this statement -2- EXHIBIT"A" TYPES CAPITAL PROJECTS FUND TOTALS (Memorandum On!}:) JUNE 30. 2002 JUNE 30 2001 $ 10,231,609 51 $ 10,303,620 23 $ 8,602 057 49 23,980,923 29 14,351 263 79 1,194 324 03 2 801,557 56 7,061 605 11 275,018 00 144,868 35 23,026 29 96,09618 26 672 02 $ 11.42593354 $ 3752901372 $ 3013769459 $ 7 705 247 90 140,556 94 $ 215,661 85 609,662 36 594,08366 9,56706 $ 21122090 21122090 69641802 696 418 02 3 221 03 570 871 04 $ 907 638 92 $ 9,366.327 15 $ 1.390 183 61 $ 144,868 35 $ 96,096 18 23 026 29 26,672 02 $ 1 209,381 49 1,209 361 49 363,616 00 3 124 060 20 3 124 060 20 2 812,257 37 6.184.852 93 23.661,350 24 25 428 869 41 $ 10,518.294 62 $ 28.162.666 57 $ 28 747 510 98 $ 1142593354 $ 37.52901372 S 30,137.69459 -3 - LIBERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30 2002 REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current Instruction Support Services Pupil SeMCBS Improvement of Instructional Services Educabonal Media Services General Adm1mstratlon School Adm,mstration Business Adm1n1stra1:Jon Marntenance and Operat10n of Plant Student Transportabon Services Central Support Services other Support Serv,ces Food SelVIC&S Operation Capital Outlay Total Expendrtures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES !USES! Operating Transfers In Operabng Transfers Out Total Other Financmg Sources (Uses) Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Finanang Uses FUND BALANCE JULY 1 Food Inventory - Net Change 1n Penod Donated Commod1bes Purchased Food GENERAL FUND SPECIAL REVENUE FUND $ 50,330 088 68 $ 8,206,775 29 11,616,516 94 776 558 14 $ 70,929,939 25 $ 1833,86879 6 202,144 40 1,090,260 90 9126 274 09 $ 46,922,657 59 $ 1702,89982 1,461,702 25 1,676,043 79 899,504 98 5,169 445 22 316 410 37 5,153,403 83 5,365,565 67 370,785 59 69,582 03 35 934 10 3,972,094 22 344,587 01 370,749 88 109,92516 25,909 08 32 309 15 13 63914 25468 68 4,334 413 75 $ 69,143,935 24 $ $ 1 786 004 01 $ 9,229,096 27 -102 822 18 $ -5,400,000 00 $ -5,400,000 00 $ -3 613,995 99 $ 20,689,966 02 -102 822 18 62611766 48 772 17 -3 645 73 FUND BALANCE JUNE 30 s 11 015 910 03 s_ _ _56.,8_,4,_2,.1.,9_2_ The notes to the general-purpose financial statements are an integral part of ttns statement -4 - EXHIBIT"B" CAPITAL PROJECTS FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2002 JUNE 30 2001 $ s 1,555 630 77 53,719 588 44 $ 52,358,061 42 14,408,919 69 12,420,123 54 5 141180 97 16,757,697 91 15,560,758 86 249115 96 2115 935 00 3,800,640 23 $ 6.945 927 70 $ 87 002 141 04 $ 84,139,584 05 $ 50 894,751 81 $ 46,531 490 33 $ 9 259,060 38 2,047 486 83 1,832,452 13 1,676 043 79 1,009 430 14 5,195,354 30 316,410 37 5,185,712 98 5,379,204 81 370,785 59 95,050 91 4 370,347 85 9,259,060 38 1,804,037 29 1,655,845 95 1,432,007 27 761,498 34 4,710,043 39 241,280 79 4 439,155 39 3,688,681 93 366,339 34 8125649 4,124,624 75 1111527669 $ 9 259,060 38 $ 87,632,091 89 $ 80,951,537 95 $ -2,313,13268 $ -629,950 85 $ 3188 04610 $ 5,400 000 00 $ 5400,00000 $ 1666,03000 -5 400 000 00 -1666030 00 $ 5 400 000 00 $ 000 s 000 $ 3,086,867 32 $ -629,950 85 $ 3,188,046 10 7 431,427 30 28 747 510 98 25,527,858 51 48 772 17 -3 645 73 26 562 73 504364 $ 1051829462 $ 28,162,68657 $ 28747.51098 -5- LIBERTY COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL (NON-GAAP BASISJ GENERAL AND SPECIAL REVENUE FUNDS YEAR ENDED JUNE 30 2002 EXHIBIT"C" REVENUES State Funds Federal Funds Taxes Other Funds Total Revenues EXPENDITURES Current lnstrucbon Support Sennces Pupil Services Improvement of lnstn.rcttonal SeMces Educabonal fiAedia 5efVlces General AdrmnlstralJon School Adrmrustratron Busmess Administration Maintenance and Operation of Piant Student Transportation Services Central Support Services Olher Support Services Food Services Operabon T01lll Expendrtures Excess of Revenues over (under) Expenditures OTHER FINANCING USES Other Uses Excess of Revenues over (under) Expenditures and Other F1nanong Uses F!JND BALANQE JUb Y 1 2QQ1 Food Inventory - Net Change 111 Pencxt Donated COmmodlbes Purchased Food GENERAL FUND BUDGET ACTUAL s 49,616,525 89 s 50 330 088 88 3 000 000 00 8,206 775 29 10 164,736 00 11 616 516 94 782.000 00 776 558 14 s 63 583.261 89 s 70,929.939 25 s 47 469 173 02 s 46 922 657 59 2 196196 41 1437,56647 1 760 549 30 983 358 69 4 71841127 276 427 96 5 596 753 38 3 924 944 85 43242111 92 000 00 1,702 899 82 1 461 702 25 1 876 043 79 899 504 98 5,169 445 22 316 410 37 5,15340383 5 365 585 67 370 785 59 69 582 03 35 934 10 s 88,887,800 46 s 69 143 935 24 s -5 324 538 57 s 1,786 004 01 -5.400 000 00 -5 400.000 00 s -10,724,538 57 s -3 613,995 99 16 030 536 39 20 689 966 02 FUND BALANCE JUNE 30 2002 s s 5 305 999 82 11015 910 03 11 SPECIAL REVENUE FUND BUDGET ACTUAL s 1 497 515 40 s 1 833 868 79 6 125 228 00 6,202 14440 1 078 554 00 1 090.260 90 s 8 701 297 40 s 9 126 274 09 s 3,245 758 40 s 3 972 094 22 349 335 00 789 717 00 344,587 01 370 749 88 98 276 00 23 316 00 109,925 16 25,909 08 41 340 00 27,000 00 32 309 15 13,639 14 177 77000 3,979,565 00 25 468 88 433441375 s 8,732.07740 s 9,229.096 27 s -30,780 00 s -102,822 18 s -30 780 00 s -102 822 18 608 422 44 626 117 68 48 772 17 -3 645 73 s 577 642 44 S 568,421 92 The notes to the general-i)urpose financial statements are an Integral part of ttus statement - 7. LIBERTY COUNTY BOARD or EDUCATION EXHIBll "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENlS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Liberty County Board ofEducallon (School D1stnct) was established under the laws ofthe State ot Georgia and operates under the gwdance of a school board elected by the voters and a Superintendent appointed by the Board The School D1stnct 1s organized as a separate legal enllty and has the power to levy taxes and issue bonds Its budget 1s not subJect to approval by any other entity Accordingly. the School D1stnct 1s a pnmary government and consists of all the orgamLallons that compose its legal enllty FUND ACCOUNTING The School District uses funds to report on Its financial position and the results of its operallons Fund accounting 1s de~1gned to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental funct10ns or act1v111es A fund 1s a separate accounting entlly with a self-balancing set of accounts General Fixed Asset~ arc recorded as expenditures in the vanous fund~ at the lime of purchase A General Fixed Assets Account Group 1s not presently maintained by the School District To confonn to generally accepted accounting pnnc1ples. a General Fixed Assets Account Group should be maintained for reportmg the cost of assets acqwred by governmental fund types Although "school ac1Iv1ty accounts" are maintained at the individual schools, neither the a~sets. liab1lit1es and fund eqwty, nor the revenues. expenditures and changes in fund balances of these r accounts are reflected in these financial statemenb o conform to generally accepted accounting pnnc1ples. these accounts should be recorded in the general-purpose financial statements The general-purpo~ financial statements account for all State, Federal. Taxe~ and Other funds under control of the School D1stnct, in compliance with generally accepted accounting principles applicable to governmental units. unles~ otherwise disclosed in these notes Funds presented m this report are as follows. GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct'~ cducat10nal ac1Iv11Ie~ Governmental Fund Types include GENERAL FUND - the fund u~d to account for all financial re~ources of the School D1stnct except tho~e reqmred to he accounted for m another fund These transacllons relate to resources obtained and tL~ed for ~erv1ces provided by a board of educat10n SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for ma1or capital projecb) 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 accomplish sp<..-c1fic educational ob1ec1Ives -8- LIBERTY COUNTY BOARD OF EDUCATION EXI IIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUN[ 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CAPITAL PROJECTS FUND - the fund used to account for financial re~urccs to be used for the acquisition or construction of maJor capital fac1hues. BASIS OF ACCOUNTING The accounting and financial reporting treatment applied to a fund 1s determined by its measurement focus All governmental funds arc accounted for using a current financial resources measurement focu, With this measurement focus, only current assets and current Iiab1ht1es generally are included on the balance sheet Operating statements of these funds present increases (1 e., revenues and other financing sources) and decreases (1 e. expenditures and other financing uses) in net current~~~ Their reported fund balance ts considered a measure of available spendable resources L1ab1ht1es which are expected to be financed from available spendable resources arc reported as hab1ht1es in the governmental funds. Governmental funds arc accounted for using the modified accrual basts of accounting under which Revenues are recognized when susceptible to accrual (1.e , when they become both measurable and available) "Measurable" means the amount of the transaction can be determined and "available" means collectlble w1thm the current penod or soon enough thereafter to be used to pay hab1ht1es of the current penod 1 he School D1stnct considers receivables collected within sixty days alter yearend to he available Property taxes, sales taxes and mterest are considered to be susceptible to accrual l\'onexchange transactions, in which the School D1stnct gives (or receives) value without directly receiving (or giving) equal value in exchange. include property taxes. local opt10n <;a)e~ taxe~. intergovernmental grants and donations Revenue for property taxe~ ts recognized in the fiscal year tor which the taxes are levied Revenue from sales taxes 1s recognized in the fiscal year the re,ources are received or susceptible to accrual Revenue from grant, and donat10ns 1s recogmzed in the fiscal year in which all ehg1b1hty requirements have been <;at1sficd Expenditures are generally recogmzed when the related fund hab1hty 1s mcurred A departure from the above definition~ 1s the accounting treatment afforded the final two payments on General fund teachers' and bus dnvers' contracts, and the re,ourcc, available from the Georgia Department of Educat10n for the State's share of these contracts During fiscal year 2002. a substantial number of perwnnel of the School Dtstnct were employed for a one hundred and ninety day penod beginning in August 2001 and ending in early June 2002 Personnel contract, for th1, employment penod specify that compensation he paid in twelve equal monthly payments beginnmg in September 2001 and endmg in August 2002 State grants to fund the State's share of the,e contracts were disbursed from the Georgia Department of Educat10n to the School D1stnct in the same twelve months As of June 30, 2002, compensation under these employment contract, had been earned, but two of the twelve monthly payments, due for July and August 2002, had not been made Payments for the,e two months were made and recorded a~ expenditures by the School D1stnct sub~equent to June 30. 2002 Also. the State's port10n of the compensat10n paid in July and -9- LIBERTY COUNTY BOARD OF EDUCATION EXIIIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES August 2002 was received and recorded as revenue in the fiscal year sub,equent to June 30, 2002 Conversely. the s1m1lar e'lpendllures and related revenues for contractual services completed pnor to June 30, 2001. were recorded in the year ended June 30. 2002 Generally accepted accounting pnnc1ples reqmre that revenues be recorded when available and measurable and that expenditure, be recorded when incurred, rather than when funds are received or disbursed BUDGET The Liberty County Board of Educat10n's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon esumates of expenditures together with probable funding sources There 1s no statutory proh1b1t1on regarding overexpendnure ofthe budget at any level The budget for all governmental funds is prepared by fund, funct10n 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 bas,~ other than generally accepted accounting principles The budget process begins when the School D1stnct's admin1stra11on prepares a tentative budget for the Board's approval After approval ofth1s tentallve budget by the Board, such budget 1s advertised at least once in a newspaper of general c1rcula11on in the locallly. 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 ,ubmined. in accordance with prov1s10ns of the Quality Basic Educat10n Act, OCGA Sect10n 20-2-167(c). to the Georgia Department of Educauon The P'Jard may increase or decrease the budget at any llme dunng the year All unexpended budget a1::ac,nty lapses at fiscal year-end CASH AND CASH EQUIVALENl :S COMPOSITION OF DEPOSITS Cash and ca~h equivalents consist ofcash on hand. demand deposit~ and short-term investments with onginal matunllcs of three months or less from the date of acqu1>1t10n in authonzed financial instllullon~ Georgia Laws OCGA 45-8-14 authonze the School D1~tnct to depo~,t its funds in one or more solvent banks or insured Federal savings and loan assoc1allons INVESTMENTS COMPOSITION OF INVESTMENTS Investments made by the School D1stnct in nonpart1c1pating interest-earning contracts (~uch as certificates of deposit) and repurchase agreements are reported at cost Part1c1pating interest-earning contracts and money market investments with a matunty at purchase ofone year or less are reported at amortized cost Both parllc1pating interest-caming contracts and money market investments with a matunty at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Sect10n 36-83-4 authonzes the School District to invest its funds and in selecting among - IO - LIBERTY COUNTY BOARD O~ EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STAT[MEJ\TS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUN rING POLICIES option, for investment or among mst1tut10nal bids for deposits, the highest rate of return shall be the obJect1vc, given equivalent conditions of safety and hqmdlly 1-unds may be invested m the following (I) Obhgal!ons issued by the State of Georgia or by other states, (2) Obhgat1ons issued by the Umted States government, (3) Obhgallons fully insured or guaranteed by the Umted States government or a Umted States government agency, (4) Obhgat10ns of any corporation of the Umted States government, (5) Pnme banker's acceptances. (6) The Local Government Investment Pool adm1mstered by the State of Georgia. Oflice of Treasury and Fiscal Services, (7) Repurchase agreements, and (8) Obligations of other pohucal subd1v1s10n~ of the State of Georgia RECEIVABLES Receivable~ consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from infonnat10n available Receivables are recorded when either the asset or revenue recogmuon cntena 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 uncollecllble receivables PROPERTY TAXES The Liberty County Board ofComm1ss1oners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 16, 2001 (levy date) Taxes were due on February 11. 2002 (hen date) Taxe~ collected within the current fiscal year or within 60 days after year-end on the 200 I tax digest are reported as revenue in fiscal year 2002 The Liberty County Tax Comm1ss10ner bills and collects the property taxes for the School D1stnct, withhold, 2 5% of taxes collected as a fee for tax collect1on and remits the balance of taxes collected to the School D1stnct Property tax revenues dunng the fi~cal year ended June 30, 2002 for maintenance and operat10ns amounted to $11,354,686 15 The tax m1llagc rate levied for the 2001 tax year (calendar year) for the Liberty County Board of Education wa~ a~ follows (a mill equals$ I per thousand dollars of assessed value) - 11 - LIBERTY COUNTY BOARD OF 1:.DUCATION EXHIBIT"[)" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATf:.MENTS JUNE 30, 2002 Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES School Operauons 11..5.8_1 mills SALES TAXES Special Purpose Local Opuon Sales Tax revenue dunng the year amounted to $5, 14 I, 180 97 and 1s to be used for capllal outlay for cducat10nal purposes or debt service This sales tax was authorized hy 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 Comb1Ded Balance Sheet at their Federally assigned value Purchased foods 1Dventones are reported on the Comb1Ded Balance Sheet at cost (first-ID. first-out) Donated food commod11les are recorded ~ revenues and expendllures at the time commodity items are received Purchased foods mventones arc recorded as expenditures at the llme of purchase The inventones reported on the balance sheet for donated food commodilles and for purchased foods are equally offset by re~rvauons of fund balance which IDWcates that these amounts do not constitute "available spendable resources" even though they arc a component of net current assets PREPAID ITEMS Payments made to vendors for i.erv1ces that WIii benefit penods subsequent to June 30. 2002. arc recorded as prepaid Items INTERFUND TRANSACTIONS l he School District has the follow1Dg types of 1Dtf'rfund transactions. Ru;mursements of expendllures 1D1t1ally made horn a fund that arc properly applicable to another funu are recorded as expenditures ID the re1mburs1Dg fund and as reductions of expcndllures ID the fund that 1s reimbursed Operating transfers are recorded for all 1Dtcrfund transact10ns other than re1mhur..ements MEMORANDUM ONLY - TOTAL COLUMNS l l'~J columns on the general-purpose financial statements are captioned "Memorandum Only" to 1Dd1~ate that they are pre<;ented only to fac1htatc financial analysis Data ID these columns do not present financial pos111on or results of operat10ns ID conformity with generally accepted accounting pnnc1ple~ Neither are such data comparable to a cc,nsohdat1on lnterfund ehm1Dat10ns have not been made ID the aggregation of this data ' - 12 - LIBERTY COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GFNfRAL-PURPOSE FINANCIAL STATEMENTS JUN[ 30, 2002 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 time longer than ten days a sum of money which has not been secured by surety bond. by guarantee ofmsurance. or by collateral The aggregate of the face value of such suret} bond and the market value of securities pledged ~hall be equal to not k,, than 110 percent of the pubhc funds bemg secured after the deduction ofthe amount ofdepo~1t msurancc If a depository elects the pooled method (OCGA 45-8-13 1) the aggregate of the market value ofthe ,ecunt1c, pledged to secure a pool ofpubhc funds shall be not k~s than 110 percent ofthe da!ly pool balance OCGA Section 45-8-1 l(b) provide, an officer holdmg pubhc funds may, m his discretion. wmve the requirement for security m the case of operatmg funds placed m demand deposit checl.mg accounts Acceptable security for deposits consists of any one of or any combmat1on of the followmg (I) Surety bond signed by a surety company duly qualified and authorized to transact btL~me,s 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 direct obhgat10ns of the Umted States or of the State of Georgia (4) Bonds, bills. notes, certificates of mdebtedness or other obhgat10ns of the counl!es or mumc1pahties of the State of Georgia, (5) Bonds of any pubhc authority created by the law, of the State of Georgia. prov1dmg that the statute that created the authority authorized the use of the bonds for this purpose. (6) lndustnal revenue bond~ and bonds of development authoritle, created by the laws of the State of Georgia, and (7) Bonds, hill~. notes. certificates of mdebtedness, or other obhgatlons of a subs1d1ary corporation of the Umtcd States government. which are fully guaranteed by the Umted States government both as to prmc1pal and mtere,t or debt obhgat1ons issued by the Federal Land Bank. the Federal Home Loan Bani.. the Federal Intermediate Credit Bank. the Central Bank for Cooperal!ves. the Farm Credit Banks. the Federal Home Loan Mortgage Assoc1at10n. and the Federal Nat10nal Mortgage A,soc1at1on CATEGORIZATION or DEPOSITS At June 30. 2002. the bank balances were $7.582,089 53 I he amounts ofthe total bank balances arc cla~~1 tied mto three categories of credit risk - 13 - ------ - - - - - - - - - - - - - - - - - - - - - LIBERTY COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2002 Note 2 DEPOSITS AND INVESTMENTS Category I - Cash that is insured (e.g., Federal depository insurance) or collaterahzed With secuntles held by the School District or by the School D1stnct's agent in the School District's name. Category 2 - Cash collateral1zed with securities held by the pledging financial institution's trust department or agent in the School D1stnct's name Category 3 - Uncollateralized deposits. (Tius includes any bank balance that is collateral1zed v,1th secuntles held by the pledging financial institution, or by its trust department or agent but not in the School D1stnct's name.) The School Distnct's deposits are classified by nsk category at June 30, 2002, as follows Risk Category Bank Balance I $ 200,000 00 2 6,730,873.69 3 651,215 84 Total $ 7.582.089,53 CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School District's total investments was $23,980,923 29 which 1s matenally the same as fair value This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqmred to be categorized since the School D1stnct did not own any specific identifiable securities in the pool The investment pohcy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1quid1ty Portfolio) does not provide for investment in denvatlves or s1m1lar investments. A descnpuon ofthc Pnmary L1qmd1ty Portfolio is as follows The Primary L1qmd1ty Portfoho consists of Georgia Fund I, which 1s a combination local and state government investment pool, and Fund 6 Georgia Fund I 1s a stable net asset value investment pool which follow~ Standard and Poor's cntena for AAAm rated money market funds The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and 1s considered to be a Rule 2a7 hkc pool The pool's pnmary obJectlves are safety of capital, investment income, hqu1d1ty and d1versificat1on wlule maintainmg pnnc1pal ($ 1.00 per share value) Net ru,set value is calculated weekly to ensure stabihty. The pool d1stnbutes earnings (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed based on $1 00 per ~hare Pooled cash and cash equivalents and investments are reported at cost which approximates fair value The pool does not issue any legally bmding guarantees to support the value of the shares Part1c1pat1on m the pool 1s voluntary and deposits consist of funds from local governments, operating and trust funds of Georgia's state agencies, colleges and un1vers1t1es, and current operating funds of the State of Georgia's General Fund - 14 - LIBERTY COUN l'Y BOARD OF EDUCATION EXI IIBIT "D" NOTES IO THL GENERAL-PURPOSE FINANCIAL STATEMENl S JUN~ 30. 2002 Note 2 DEPOSITS AND INVESTMENTS Investments in Georgia I und 1 and Fund 6 are directed toward ,hort-term instruments such as U S frea~ury obhgatwns. sccuntles issued or guaranteed as to pnnc1pal and interest by the U S Government or any of its agencies or instrumentahlles. banker\ acceptances and repurchm,e agreements [he weighted average matunty of Georgia ~und I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002. was O 12 years Inc average investment durat10n for Fund 6 on June 30. 2002. wa~ 0 75 years Note 3 NON-MONETARY TRANSACTIONS The School D1stnct receives food commod1t1e~ from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at their Federally a%1gned value See Note 1 - Inventories Note 4 RISK MANAGl'MENT The School D1str1ct 1s exposed to vanous nsks of loss related to torts, theft of. damage to, and destruction of as~ts, errors or om1ss10ns, JOb related illness or inJuries to employees, act~ of God and unemployment compensat10n. l'hc School D1stnct ha~ obtained commercial insurance for nsk ofloss as<;OCtated with torts. a~~ts and Job related illness or inJunes to employees The School D1stnct has neither s1gruficantly reduced coverage for these nsks nor incurred losses (settlements) which e,ceedcd the School D1stnct's insurance co\'erage in any of the past threo: years The School D1stnct ha~ elected to self-insure for all losse~ related to acts of God In add1t10n. the School D1stnct ha~ elected to self-insure for errors or om1ss10ns, which includes, among other risks. nsks for sexual harassment and d1senminat1on The School District has not expenenced any losses related to these nsks m the past three years. The School D1stnct 1s self-insured with regard to unemployment compensation claims 11ie School D1~tnct accounts for claims within the same fund that the employee's salary and benefits were paid Claim~ are accounted for with expenditure and hab1ht) bcmg reported when It 1s probable that a loss ha, occurred. and the amount of that loss can he reasonably estimated Changes in the unemployment compcnsatwn claims liah1hty during the last two fiscal years are a, follows 2001 2002 Begmnmg of Year L1ab1hty Claims and Changes m ht1matcs Claims Paid End of Year L1ab1hty $ 000 $ 7 018 05 $ 7 018 05 $ 0 00 $ 0 00 $ 10 111 86 $ 10 111 86 $ 0 00 - 15 - LIBERTY COUNTY BOARD OF EDUCAl ION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2002 Note 4 RISK MANAGEMENT The School District has purchased a surety bond to provide add11tonal msurance coverage as follows Position Covered Amount All employees (Per Lo~s) $ 50.000 00 Note 5 ON-BEHALF PAYMENTS 1 he School D1stnct has recognized revenues and expenditures m the amount of $620.479 45 for health msurance and retirement contributions paid on the School D1stnct's behalf by the following State Agencies Georgia Department of Educat10n Paid to the Georgia Department ofCommumty Health For Health Insurance ofNon-Cert1fied Personnel In the amount of $512.667 45 Office of Treasury and Ftscal Services Paid to the Pubhc School Employees Reurement System For Pubhc School Employees Reurement (PSERS) Employer's Co~t In the amount of$107.812.00 Note 6 SIGNIFICANT COMMITMENTS The follo\\1ng 1s an analysts ofs1gmficant outstandmg constructlon or renovation contract~ executed by the School D1stnct as of June 30, 2002, together with fundmg available Pro1ect Unearned Executed Contracts Fundmg Avatlable From State 99-689-085 0 l-LW/OOS-689-003 SAOlS-689-115 SAOIS-689-116 $ 34.633 47 6.884.447 97 I. 749,300 00 3.883.616 19 $1,931,91323 212.121 00 254.545 00 $12.;i.51,997 ..6.3. $_2,398, '79,23 The amounts described m this note are not reflected m the general-purpose financial ~tatemcnts - 16 - LIBERTY COUNTI' BOARD 0~ EDUCATION EXHIBIT "D" NOTES l O THC GENERAL-PURPOSE rlNANCIAL STATEME:.N I<; JUNE 30, 2002 Note 7 CONTINGENT LIABILITIES Amounts received or receivable pnnc1pally from the Federal government are subject to audit and review hy grantor agencies This could result in reque~ts for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms The School District believes that such d1sallowances. 1f any, will be unmaterial to its overall financial po~it1on The School D1stnct 1s a defendant in vanous legal proceedings pcrtaining to matters incidental to the performance of routine School D1stnct opcrallons The ultimate d1sposit1on of these proceedings 1s not presently determmable, but 1s not beheved to be matenal to the general-purpose financial statements Note 8 RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) I RS PLAN DESCRIPTION Substanually all teachers, admin1~trat1ve and clencal personnel employed by local school d1stncts arc covered by the Teachers Rellremcnt System of Georgia (TRS). which 1s a cost-shanng multiple employer defined benefit pcnston plan TRS provides service retirement, d1sab1hty retirement and surv1vo~ benefits for its members in accordance with State statute The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts TRS CON I RIBUTIONS REQUIRED AND MADE Employee~ ofthe School D1stnct who are covered by TRS arc rcqutred by State statute to contnbute 5% of their gross earnings to TRS The School Distnct makes monthly employer contnhuttons to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary The requtred employer contnbutton rate 1s 9 24% and employer contn buuons for the current fiscal year and the preceding two fiscal years arc as follows Fiscal Year Percentage Contnbuted Rcqutred Contnbutton 2002 2001 2000 100% 100% 100% $ 3,937.341 43 $ 4,451,279 07 $4,081.143 41 - I7 - LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002 ASSETS Cash and Cash Equivalents Accounts Recervable lnventones Food Donated Commod1hes Purchased Food SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 612,639 10 57,211 07 $ 171,710 22 144,868 35 23 026 29 Total Assets $ 837 744 81 $~==11_1_1_1_0_22_ LIABIUTIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue Total l.Jablhttes FUND EQUITY Fund Balances Reserved For lnventones Food Donated Commodrt,es Purchased Food Unreserved Undes,gnated Total Fund Equity Total Liab1httes and Fund Equity $ 14,299 82 $ 36,056 93 33,474 94 233,265 96 123 935 46 $ 269,322 89 $ 171 710 22 $ 144,868 35 23,026 29 400,527 28 $ 000 $ 568 421 92 $ 000 $ 837 744 81 $ -~=17""'1"'"7-'1'=0_2_2 See notes to the general-purpose financoal statements - 18 - EXHIBIT "E" FEDERAL PROGRAMS TOTALS JUNE 30, 2002 JUNE 30, 2001 $ 612,639 10 $ 941,265 77 $ 850 000 03 1,078,921 32 579,438 75 144,868 35 23,026 29 96 096 18 26,672 02 $ 850 000 03 $ 1,859.455 06 $ 1,643,472 72 $ 526,328 56 $ 540,628 38 $ 328,943 79 67,989 50 137,521 37 172,359 03 252,460 94 609,662 36 506,485 18 9,567 06 3 221 03 3 221 03 $ 850 000 03 $ 1 291 033 14 $ 1 017 355 06 $ 144,868 35 $ 23,026 29 96,09618 26,672 02 400 527 28 503 349 46 $ 0 00 $ 568 421 92 $ _ _...,:6::,2e,6,_,1..:,17'-"66"- $ 850 000 03 $ 1 859 455 06 $ _ _;1,;64=34~72;..;.72:., - 19 - LIBERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES SPECIAL REVENUE FUND YEAR ENDED JUNE 30. 2002 REVENUES State Funds Federal Funds Other Funds Total Revenues EXPENDITURES Current I nstruct1on Support Services Pupil Services Improvement of Instructional Services General Adm1mstrat1on School Adm1mstrabon Maintenance and Operation of Plant Student Transportation Serv,ces Other Support Serv,ces Food Services Operation Total Expendrtures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and Other F1nancmg Sources over (under) Expenditures FUND BALANCE JULY 1 Food Inventory Net Change in Penod Donated Commodtt1es Purchased Food FUND BALANCE JUNE 30 SCHOOL FOOD SERVICES FUND LOTTERY PROGRAMS $ 325,212 00 $ 1,508,656 79 2,816.118 67 1,000,260 00 $ 4,231,591 57 $ 1,508,656 79 $ 1,300,875 99 57,12985 5,070 08 120 50 22,488 27 32,309 15 $ 4 334 413 75 662 95 $ 4,334,413 75 $ 1,508,656 79 $ -102,822 18 $ 000 $ -102,822 18 $ 000 626,117 66 000 48,772 17 .3 645 73 s 568 421 92 $-=~==o=o=oao See notes to the genera~purpose financial statements 20 EXHIBIT "F" FEDERAL PROGRAMS TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ 1,833,868 79 $ 1,523,501 50 $ 3,386,025 73 6,202,144 40 5,368,480 52 1,090,260 90 1,085,950 91 $ 3,386,025 73 $ 912627409 $ 7 977 932 93 $ 2,581,218 23 $ 3,972,094 22 $ 3,268,407 25 287,457 16 365,679 80 109,804 66 3,420 81 13 639 14 24,805 93 344,587 01 370,749 88 109,925 16 25,909 08 32,30915 13,639 14 25,468 88 4 334 413 75 217,099 80 356,382 39 97,433 26 24,019 52 30,490 28 23,621 70 28,444 29 411584762 $ 3,386,025 73 $ 9,229,096 27 $ 8 16174611 $ 000 $ -102,822 18 $ -183,813 18 3000 $ 000 $ -102,822 18 $ -183,783 18 0 00 626,117 66 778,294 47 48,772 17 -3 645 73 26,562 73 5 043 64 $ 0 00 $ 568 421 92 $ -~-62""6"'1=1=-7_6_6 - 21 - I LIBERTY COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2002 ASSETS Cash and Cash Equivalents Accounts Receivable REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 6.184.852 93 $ 1,799.872 11 317 148 30 Total Assets $ 611841852 93 $ ==--211_1_7_10_2_0_4.,_1 LIABILITIES AND FUND EQUITY LIABILITIES Contracts Payable Retamages Payable Total L1ab1hbes FUND EQUITY Fund Balances Reserved For State Capital Outlay ProJects For SPLOST ProJecis Unreserved Undes,gnated Total Fund Equity $ 211,220 90 696 418 02 $ 907 638 92 $ 1,209,381 49 $ 6, 184,852 93 0 00 $ 6, 184,852 93 $ 1,209,381 49 Total Lab1ht1es and Fund Equity $ 6, 184,852 93 $ _ _2""=11""7"-0=2.S0.4.=-1 See notes to the 90neral-purpose financial statements - 22 - EXHIBIT "G" SPECIAL PURPOSE LOCAL OPTION SALES TAX $ 2,246,884 47 $ 877 175 73 LOTTERY PROJECT TOTALS JUNE 30, 2002 JUNE 30, 2001 000 $ 10,231,609 51 $ 7,141,082 91 119432403 861 215 43 $ 3 124.060 20 s =====o=o=o $ 11 425 933 54 s 0 002.298 34 1 $ 211,220 90 696 418 02 $ --~57~0~8~7-'-1~04- $ 907 638 92 $ _ _.:,57"-'0"'8""7-'-1-=04-'- $ 3, 124,060 20 $ 1,209,381 49 $ 383,616 00 3, 124,060 20 2 812,257 37 0 00 s _ _ _ _~0~00~ 6,184,852 93 4,235,553 93 3,124,060 20 $ _ _ _ _..:0-=00= $ 10,518,294 62 $ 7 431 427 30 $ 3,124,06020 $~====0=00=> $ 11,425,93354 $ 8,002,298 34 - 23 - LIBERTY COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2002 REVENUES State Funds Taxes Other Funds Total Revenues EXPENDITURES Capital Outlay Salanes Employee Benefits Supplies Land and Land Improvements Bu1ld1ng and Bu1ld1ng Improvements Equipment Total Expendrtures Excess of Revenues over (under) Expendrtures OTHER FINANCING SOURCES {USES) Operating Transfers In Operating Transfers Out Total Other F1nancmg Sources (Uses) Excess of Revenues and Other Fmancmg Sources over (under) Expenditures and Other Fmancing Uses FUND BALANCE JULY 1 REGULAR GEORGIA STATE FINANCING AND INVESTMENT COMMISSION $ 000 $ 1,555,630 77 70 011 09 $ 000 $ 1,625,641 86 $ 564,848 24 $ 5,302,424 28 9 220 00 $ 564 848 24 $ 5,311,644 28 $ -564 848 24 $ -3,686,002 42 $ 2,514,147 24 $ 4,511,767 91 $ 2 514 147 24 $ 4 51176791 $ 1,949,299 00 $ 4,235,553 93 825,765 49 383 616 00 FUND BALANCE JUNE 30 $ 611841852 93 $-~1.1.2_00..1,.3.8.....,1_4_9 See notes to the general-purpose financ,al statements - 24 - EXHIBIT "H" SPECIAL PURPOSE LOCAL OPTION SALES TAX LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 2001 $ $ 5,141,18097 179104 87 000 $ 1,555,630 77 $ 5,141,18097 24911596 3 621,153 90 4,878,631 98 302 346 41 $ 5,320,285 84 $ _ _ _ _.,,0..e0:,c_0 $ 6 945 927 70 $ 8,802,132 29 $ 40,939 50 310,947 73 2,536,874 64 $ s 2 888 761 87 $ $ 2,431,523 97 $ $ 343,237 36 150 568 63 493,805 99 $ s -493 805 99 $ 40,939 50 875,795 97 8,182,536 28 159 788 63 9,259,060 38 $ -2,313,132 68 $ 313 27 23 95 11,041,32047 11,041,657 69 -2,239,525 40 $ $ -211972114 $ -211972114 $ 493,805 99 $ 493,805 99 $ 7 519,721 14 $ -211972114 5,400,000 00 $ 7,592,987 40 -5,926,987 40 1,666,000 00 $ 311,802 83 $ 2,812,257 37 000 $ 000 3,086,867 32 $ 7 43142730 -573,525 40 8,004,952 70 $ s _ _ _ _ 3.124,oeo 20 ..:o:.oo:;;:; $ 10.518.294 62 $ 743142730 - 25 - LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Agrrcutture U S Department of Child Nutntlon Cluster Pass-Through From Georgia Department of EduceUon Food and Nutnbon Program FoodServtceo School Breakfast Program Nabonal SChool Lunch Program Total Child Nutrrtlon Cluster Other Programs Pass-Through From Georgia Department of EducaUon Food and Nutrttton Program Food Distnbubon Program (1) Total U S Department of Agnculture EducabO(I U S Department of Special EducabOn Ouster Pass-Through From Georgaa Department of Educabon lndMduals wrth Dlsablhhes Education Act Pan B - Special Education Capaaty Building Improvement Grant Flow ThrOtJgh Preschool Total Speoal EducatlOO Cluster Other Programs Drrecl Impact Aid Pass-Through From GeOfQia Department of Educa110r1 Elementary and Secondary Education Ad Trtte I Grants to Local Educational Agencies TIiie 11 Eisenhower ProfesSIOOal Development TIiie Ill TedYlology lntegrabon Standards TIiie VI IMOVabve Education Program Strategies Class S1ze Redudlon Safe and Drug-Free Schools and Communities Vocatmnal Educabon Basic Grants to States High Sdlool Program Bask Gran! Total u S Oepanment of Educatmn CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD 10 553 10 555 NIA s 632 467 32 (2) NIA s 1 901 1'7 90 4 051 910 30 (3) s s 2,533 615 22 4 051 910 30 10 550 NIA 282,503 45 282 503 45 s $ 2 816 118 67 4,334 413 75 84027 84 027 84 173 NIA s s 20 285 Oil NIA 875,313 87 NIA 37 306 28 s s 932 885 15 20 265 Oil 875 313 87 37 306 28 932 885 15 84 041 7 373 140 22 (5) 84 010 84 281 84 318 84 298 84 3,40 84 186 84 048 NIA 1 774 767 47 1 774 767 47 NIA 92,560 46 92 580 48 NIA 4 500 Oil 4 500 00 NIA 72'7400 72 474 Oil NIA 322 900 Oil 322 900 00 NIA 49 058 99 49 058 99 NIA 138 879 66 136 879 66 s 10 759 165 95 $ 3 386 025 73 - 26 - LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30 2002 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT Defense U S Department of Direct Department of the Anny R O T C Program P L 102~84 Total U S Department of Defense Total Federal F1nanoal Assrstance NIA = Not Available CFDA NUMBER PASSTHROUGH ENTITY ID NUMBER FEDERAL REVENUE IN PERIOD EXPENDITURES IN PERIOD $ 11703857 (4) 716 596 50 (4) $ 833 635 07 s 1.oa 91959 s ___1._12_0__3_9__a.. Notes to the Schedule of Exoendrturv of federal Awards (1) The amounts shown for the Food Oistnbuhon Program represents the Federally assigned value of nonmonetary au~tance for donated commodlbel. receNed and/or con,umed by the s.ygtem dunng the current fiscal year (2) Expendrtures for the Sdlool Breakfast Program were not maintained separately and are Included In the 2002 Nahonal School Lunch Program (3) Expenditures for this program include State and/or Other Funds Expenchtures are not mamtamed by fund source (4) Expenditures on this program were not maintained by fund source (5) Funds earned on lilts program do not requrre reporting of expenditures c> Major Programs are Identified by an astensk in front of the CFOA number The Sdlool DIStnct did not provide Federal Assastance to any Subrecipient 1he acc.ompany1ng gchedule of expenditures of Federal awards lnducles the Federal grant actMty of the Liberty County Board of Educat10r1 and is presented on the modified acaual bas.JS of accounting wtuch is the ba51s of accounting used m the presentation of the general-ptXpose financial statements See notes to the general-purpose finanaal statements - 27 - LIBERTY COUNTY BOARD QF EPUCATIQN SCHEDULE OF STATE REVENUE YEAR ENQEP JUNE 30 2002 SCHEDULE "2" AGENCY/FUNDING GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS FUND FUND FUND TOTAL GRANTS Community Affairs Georgia Department of Local AM1stance Grant s 35 000 00 s 35 000 00 EOUcobon, Ge0a Department of Qualrty BaSJC EducabOn Direct lnstruc:tJooal Cost Kinde,'ganeri Program s Kindef'garten Program - Ear1y lnlervenbon Program Pmnary Grades (1-3) Program Primary Grades- Early tnterveotion (1-3) Program Upper Elementary Gractes (4-5) Program Upper Elementary Gfades - Ear1y lnterven1IOO (4-5) Program Mlddle Grades (6-B) Program Mlddle School (6-8) Program High SChoOI General EducatlOl'l (9-12) Program VocatJOnal laboratory (9-12) Program Students wrth D1sabllrbes Category I Ca1egory II Categ0ry Ill Category IV Ca,egory V Gdled Student - Category VI Remedial Education Program Alterna!Jve Educabon Program Engl,sll Speake,, of Other Languages (ESOL) 20 Days Addruonal lnstrucbon Media Center Program Staff and Profe5510nal Development Mld--term Adjustment Hold-Harmless Indirect Cost CatOQO<,calG'8nls Pup~ Transportabon Regulc,lr Bus Replacement Nursing ServlCeS Pnnclpal Supplements VocallOMI Supervisors Educabon Equalization Funding Grant Food Services Vocabonal Education Other Slate Programs. ApprenticeShlp Program Hearth Insurance Outdoor Clauroom Post Secondary Opt.Jon - Spnng Preschool Hanchcapped Program 4 - 8 Statewide After SchOol Program K - 3 StateWlde Reading Program Lottery Programs Ass1sbve Tedtnology ComputeB m the ClaAJoom 1617Q8100 1 898 650 00 5 622198 00 1423190 00 320681300 463 803 00 70 083 DO 6 358 70500 5,446 369 00 1438653 00 17733800 995 873 00 2,087 130 00 221 806 00 58 104 00 655 642 00 19 187 00 487 091 00 24 214 00 316 581 00 1020549 00 187 542 00 458 818 00 6 222 878 00 1 062 053 00 286 288 00 222 "51 00 45 186 00 57 165 00 6 940 1QO 00 s 20 27Q 24 989 87 512 667 45 75000 1 386 00 277 021 00 115-48800 140 416 00 325 212 00 16 188 00 44710341 1 617 981 00 18988!50 00 5 622196 00 1423190 00 3 206,813 00 483 803 00 70 083 00 6 3!58 705 00 5 446 369 00 143865300 1n 33600 995 873 00 2 087 130 00 221 806 00 58 104 00 655 642 00 19 187 00 487 091 00 24 214 00 316 581 00 1 020 549 00 197 54200 458 818 00 6 222 878 00 1 062,053 00 286 288 00 222 451 00 45 186 00 57 165 00 6 940 HID 00 325 212 00 20 279 24 989 87 512 687 45 75000 138600 277 021 00 11546800 140 416 00 16 188 00 447 1g3 41 Georgia State Financing and Investment Corrwn1sa1011 RelJ'Tlbursemenl on ConstrucbOn PrOjects 1 520 630 7i 1520630 77 Offai of School Readiness Pre-Kindergarten Program 1045275 38 1 045 275 38 - 28- LIBERTY COUNTY BQARP OF EPUCA~ SCHEDULE QF STATE REVENUE VEAR ENDED JUNE 30 2002 SCHEDULE 7 AGENCY/FUNDING GRANTS Office ol Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Educa!Jon Georgia Department of After School Programs Georgia lns!Jtute of Technology Student Information System GOVERNMENTAL FUND TYPES GENERAL SPECIAL REVENUE CAPITAL PROJECTS FUND FUND FUND s 107 812 00 TOTAL 10781200 37 500 00 193 462 32 37 500 00 193 462 32 s 50 330 000 ea s 1 033 eea 79 s , 555 630 n s 53 119 588 44 See notes to the general-purpose hna.naa.l stalement5 -29- UBERIY COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30 2002 SCHEDULE 3 PROJECT New Elementary School New Middle School New ROTC Classroom at Bradwell tntlltute ORIGINAL ESTIMATED COST(1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) s s s s 5~ 05500 8 405 720 00 493 BO~ 99 7 916 890 28 PROJECT STATUS Completed 6 835 876 00 13 900 000 00 2 345 12415 1115746660 Ongong 390 000 00 510 510 00 Ongoing Pavmg at Bradwell lnslrtute 390 000 00 429 000 00 Ongo,ng New Add1b0n to Liberty COunty High School 952 380 00 1 53g 000 00 71 560 00 Ongong Construcoon of Storage Bu1ld1ngs at Taylor's Creek Frank Long Snelson-Golden and Lewis Frazier School Renovat.Jon of Button Gwinnett, Lyman Hall Jordye Bacon and Bradwell lnsbtute Schools 442 000 00 488 000 00 86,-400 00 Ongc,ng 4 290 000 00 4 719 000 00 2 929 956 34 1,096 079 18 Ongc,ng Modl11cabon ot Jordye Bacon and Bradwe\l lns\Jtute Schools 75,4 000 00 829 400 00 139 500 81 614 499 19 Ongoing Reroofing et Button Gw1rv1ett Lyman HaU Jordye Bacon end Bradwell lnst1Me ~ 205g 954 00 2,2651949 00 301 451 57 464 570 74 Ongc,ng S 21 600.265 00 S 33 184 579 00 $ 6281 3g596 S 2131590619 (1) The School Otstncrs onglnal cosl estimate as speofl8d in !he resolubon callmg for ttie 1mpos.1bon of the Local 0ptl0f'l Sales TalC (2) The Sdlool D1stnct's current eshmate of total cost for the projects Includes au cost from prOf8CI 1ncep\Jon to completoo (3) The voters of Liberty Ccu,ty approved the rmposrtion of a 1% aales tax to fund the above pro,ects Amounts expended for these pro,ects may 1ndude sales tax proceeas state local property taxes and/or other funds OYer the hfe of the pro,ects See notes to the genera\..pt.JrPOse linanoal !.ta1.ements - 31 - LIBERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCAT/ON PROGRAM /QBE) ALLOTMENTS AND EXPEND/TURES - BY PROGRAM YEAR ENDED JUNE 30 2002 SCHEDULE "4" DESCRIP"llON ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COS"lS SALARIES OPERATIONS TOTAL Dired lnstrud10nal Programs Kindergarten Program $ Kmdergarten Program-Earty lntervenbOn Program Pnmary Grades (1-3) Program Prunary Grades-Early lnteJVen110n (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementery Grades-Early ln18fVe1111on (4-5) Program Middle Grades (6-6) Program Middle School (6-6) Program High School General Educahon (9-12) Program Vocat10nal laboratory (9-12) Program Students wrth Dtsab1htles Category I Category II Category 111 Category IV Category V Gifted Student - Category VI Remedial Education Program AltematNe Education Program English Speakers of Other Languages (ESOL) 1,74429100 $ 1 631 254 00 6 061,096 00 1 534 291 00 3 456,497 00 1,403 642 48 $ 2,306 952 39 7 305 316 00 1 605 926 48 3 776 616 37 133 492 67 $ 102 626 93 535 213 57 275 323 31 346 426 65 1 537 135 35 2 409 579 32 7 640 529 57 1 661 249 79 4,125,045 22 522,013 00 75,554 00 6~510200 5 671 543 00 1,550 963 00 3,616 616 00 706 626 00 20 665 00 52511600 26 105 00 437 590 64 60 695 60 745311299 6 767 322 37 1 979,965 79 266,695 73 963,295 90 2 475,621 63 303 776 96 37,492 63 702,946 56 77,547 06 551,560 61 4,665 72 169 759 66 9 656 70 666 971 67 591 392 09 381,690 13 4,964 23 14,995 07 34,559 26 5,592 67 2,934 56 142,693 62 403 05 1,245 79 607 350 52 70 554 30 6,322 084 66 7,376 714 46 2 341 655 92 271 679 96 976 290 97 2,510 380 69 309 371 63 40,427 19 645 640 16 77 950 11 551 560 61 6 111 51 TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 34,597 954 00 $ 38,503 346 31 $ 3 602 164 05 $ 42 105 512 36 Media Center Program Staff and Professional Deveklpment 1,100,219 00 212 964 00 1 264,500 26 71 407 67 400 307 96 153 513 69 1 664 606 24 224 921 56 TOTAL QBE FORMULA FUNDS $ 35 911 137 00 S 39 639 256 24 $ 4 155 965 92 $ 43 995 242 16 (1) Compnsed of State Funds plus Local Five MIii Shere See notes to the general-purpose financial statements - 32 - LIBERTY COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30 2002 SCHEDULE "5" SITE Waldo Pafford Elementary School Midway Middle School Button Gwinnett Elementary School Lyman Hall Elementary School Joseph Martin Elementary School Liberty County High School Taylors Creek Elementary School Snelson-Golden Middle School Frank Long Elementary School Lewis Frasier Middle School Jordye Bacon Elementary School Bradwell lnstrtute Liberty Elementary School Central Office (Alternative Education Program) Other Auxiliary Fac1l1ty TOTAL (1) Compnsed of State Funds plus Local Five M,11 Share ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 2,438,366 00 $ 2,796,148 19 2,334,600 00 2,901,628 48 2 322,587 00 2,650,134 76 2,222,903 00 2,690,373 32 2,195,272 00 2,672,230 68 3,287,313 00 4,307 614 03 2,136,855 00 2,544 222 39 3,476,893 00 4,077,110 83 1,993,249 00 2,628,924 67 2,575,837 00 3,016,859 07 1,873,863 00 2,569,311 15 5,317,464 00 6,919,337 22 1,897,636 00 2 325,893 91 525,116 00 5,389 13 334 53 $ 34 597,954 00 $ 421105,512 36 See notes to the general-purpose financial statements - 33 - SECl ION II COMPLIANCE AND INTERNAL CONTROL REPORTS RtN,t,I I. W. l-11:--1 l'ON S IAT[ AUDITOR f-404) 656-2',7.S DEPARTMENT OF AUDITS AND ACCOUNTS 254 W.i~hmgton S1rcct. SW Suite 214 AIIJnla, Gcorg1J 30334-M00 June 16, 2003 Honorable Sonny Perdue. Governor Member, of the Gem:ral A,sembl} Members of the State Board of lducat1on and Superintendent and Members of the Liberty County Board ofEducatwn Rl'PORT ON COMPLIANCE AND ON INTERNAL CON J'ROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF l'INANCIAL STATEMENTS PERFORMl:D IN ACCORDANCI- WITH GOVERNMENT AUDITING STANDARDS Lad1e, and Gentlemen We have audited the financial statements ofL1bertv. Countv, Board oflducauon a~ ofand forthe .vear ended June 30. 2002. and have issued our report thereon dated June 16, 2003 fh1s report wa, qualified for a scope lim1tat1on and for vanous departures from generally accepted accounting pnnc1ples. a, 1den111ied in the auditor', report on the general-purpose financial ,tatcmcnts l'xcept as di,cussed in the following paragraph. we conducted our audit in accordance with auditing ,tandards generally accepted in the Umted States of Amcnca and the ,tandards applicable to financial audit~ contained in Government Auditing Standards. 1,sued by the Comptroller General of the Umted States We did not ob,crvc the taking of either the Federal donated commod1t1e, inventory or the purcha,ed food, inventory at June 30. 2002, nor could we satisfy ourselves a, to the accuracy of the amounts ,lated a, inventoncs through alternative procedures Compliance <\, part of obtaining rea,onahle as,urancc about whether Libert) Count) Board of [ducatwn's fin,mc1al statement~ arc free of material misstatement. we performed tests of 11, compliance with certain prov1s1on, oflaw,. regulatwns. contrdch and grants. noncompliance ....,,th which could have a direct and material effect on the determination of financial ,tatement amounts However. providing dn op1mon on compliance with those prov1swn, ....,a, not an ob1ect1ve of our audit. and accordingly. we do not expres~ ,uch an opinion The re,ults ofour te,t, disclosed no instances of noncompliance that are required to be reported under Government Auditing Standards 2002YR-41 Internal Control Over Financial Reporting In planning and performing our audit, we considered Liberty County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expre,,mg our opin10n 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 1t, operation that we consider to be a reportable cond111on Reportable conditions involve matters coming to our attcnuon relating to ~gmficant defic1enc1c, in the design or operation of the internal control over financial reporting that. in ourJudgment. could adversely affect Liberty County Board ofEducat10n's ab1hty to record. process. summanzc and report financial data consistent vmh assertions of management in the financial statements The reportable cond111on 1s de,cnbed in the accompanying Schedule ofFmdings and Quesuoncd Costs as ,tern FS-6891-02-01 A matenal weakness ,s a condition m which the design or operat10n of one or more of the internal control components does not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal in relat10n to the financial statement~ being audited may occur and not be detected within a umely penod by employees in the normal course of perform mg their assigned funcuon~ Our cons1derat1on of the internal control over financial reporting would not necessanly disclose all matters in the internal control that might be reportable cond11Ions and. accordingly. would not necessanly disclose all reportable cond1t10ns that are also considered to be matenal weakne%e, However. we consider item FS-6891-02-0 I to be a matenal weakness This report 1s intended solely for the informat10n and use ofthe management. members ofthe Liberty County Board ofEducat10n, Federal awarding agencies and pass-through enuues and 1s not intended to be and should not be used by anyone other than these specified part1e, ctfully subm1ttcd. RWHas 2002YB-41 State Auditor !rn,,u.L W. llrHoN S rAT[ AUDlVlA (404) 6!.>6-21 , .. DEPARTMENT OF AUDITS AND ACCOUNTS 254 WJshmglon ~trcct SW ~u,tc 214 AtlJnta. Gcorg1J 30134-84()() June 16. 2003 Ilonorablc Sonny Perdue. Governor Members of the General A,,embly \kmbers of the State Board of [duLalton and Supcnntcndent and Members of the I 1hcrty County Board of Education RF PORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE l O 1::ACH MAJOR wn PROGRAM AND ON INTFRNAL CON I ROL OVER COMPLIANCE IN ACCORDANCF 1-1 0MB CIRCULAR A-133 Ladies and Gentlemen Compliance We have audited the compliance of Liberty County Board of[ducat1on wtlh the type~ ofcompliance requirements described m the US O/jice of Management and Rudge/ (O,HIJ) Circular .-1-133 Cump/iancc Supplement that are appltcable to 11, ma3or 1-cdcral program for the year ended June 30. 2002 Liberty County Board of Education's maJor Federal program ts 1dent1fied m the Summary of Auditor's Result, Section of the accompanying Schedule of Fmdmgs and Questioned Costs Compliance \\;tlh the requirements of law~. regulat1on,. contract, and grants applicable to 11, maJor federal program i, the re,pon~tbtltty of Liberty County Board of Education's management Our respon~1b1ltty i, to express an opm1on on Liberty County Board of[ducatton's compliance ba,ed on our audit We conducted our audit of compliance m accordance wtth audttmg ,tandards generally accepted in the Untied States ofAmenca, the standard~ appltcabk to linanctal audits contained m Government Auditing Standard~. ,~~ued by the Comptroller General ol the Untied States. and 0MB Circular Al 13. 411dt11 of S1u1e1. l.ocul C,owmment1. and Non-Prc1fi1 Orgam=a110m Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompltance \\;tlh the types ofcompltance requirement~ relerred to above that could have a direct and material effect on a ma3or I ederal program occurred An audit include, c,amming. on a test basts. evidence about the Liberty County Board of lducat1on's compltance with tho,e 2002SA-10 requirements and pcrfonmng such other procedure~ a~ we considered necessary in the circum,tances We believe that our audit provides a rea~onable bas1, for our op1mon Our audit doe, not provide a legal determination on Liberty County Board of Education', compliance with those requirements In our op1mon, the Liberty County Board of Educallon complied, in all matenal respects, with the requirements referred to above that are applicable to its maJor Fedeml progmm for the year ended June 30. 2002 Internal Control Over Compliance The management of Liberty County Board of Educatmn 1s responsible for establi~hing and maintaining e!Tecl!ve internal control over compliance with reqmrements of law~. regulation,. contracts and grants apphcable to Federal programs In planning and performing our audit. we considered Liberty County Board of Education's internal control over compliance with requirements that could have a direct and matenal effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinmn on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133 Our cons1derauon of the internal control over compliance would not necessanly disclose all matter; m the internal control that might be rnatenal weaknesse~ A matenal weaknes~ 1s a condition in which the design or operation ofone or more ofthe internal control components doe, not reduce to a relauvely low level of nsk that noncompliance with applicable reqmrements of laws. regulatmn~. 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 penod by employees in the normal course of performing their assigned functions We noted no matters involving the internal control over compliance and its operation that we con,idcr to be material weakne,se, This report 1s intended solely for the informal!on and use ofthe management. members ofthe I 1berty County Board of[ducauon. Federal awarding agencies and pass-through ent11Ies and 1s not intended to be and should not be used by anyone other than these specified parties Respectfully submitted. ~-4d~ Hinton State Auditor RWII a~ 2002SA-I0 SECTION Ill AUDITl:E'S RESPONSE TO PRIOR YEAR FINDINGS AND QUJ:.STIONED COSTS LIBERTY COUNTY BOARD or EDUCATION AUDITEE'S RESPONSE SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR 1-.NDED JUNE 30, 2002 PRIOR YEAR I INANCIAL STATCMENT FINDINGS AND OUESTIONI-.D COSl S FINDING CONTROL NUMBER AND STATUS FS-6891-00-0 I FS-6891-01-0 I Further Action Not Warranted Unresolved - Sec Corrective Action/Responses CORRECTIVE ACTION/RESPONSES GENERAL FIXED ASSEl S Failure to Mamtam General Fixed Assets Account Group Fmdmg Control Number FS-6891-01-01 The Liberty County Board ofEducatton has decided not to pursue the recording ofgeneral fixed assets on the financial statement at this time due to proh1b1t1vc cost but are worl.mg toward meetmg this reqmrement as set forth by GASB 34 SECTION IV FINDINGS AND QUESTIONED COSTS LIBERTY COUNl Y BOARD OF 1:DUCATION SCHEDULE OF FINDINGS AND OUESTIONl:D COSTS YEAR ENDED JUNE 30, 2002 SUMMARY OF AUDITOR'S RESULl S I ypc of Report Issued on the Financial Statements The auditor's op1mon on the Liberty County Board ofEducat10n's financial statements was quahficd for a scope hm1tatlon and for vanous departures from generally accepted accountmg prmc1ples 2 Reportable Conditions m Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Liberty County Board of Educauon disclosed a financial statement reportable cond1t1on related to the following control category. General Fixed Asset~ The reportable condition descnbed above 1s considered to be a matenal weakness 3 Noncompliance Matenal to the Fmanc1al Statements The audit of the Liberty County Board of Educat10n disclosed no mstances of noncompliance that were deemed to be material to the financial statements 4 Reportable Conditions m Internal Control Over Ma1or Programs The audit report for the Liberty County Board of Education did not disclose any reportable cond1t10ns in internal control over maJor programs 5 Type of Report Issued on Compliance for Ma10r Programs The auditor', opm10n on the Liberty County Board of Education's report on compliance with requirements apphcable to maJor programs was unqualified 6 Audit findings Required to be Reported by Section SI0(al ofOMB Circular A-133 rhe Liberty County Board of Education's audtt did not disclose audit findings required to be reported by seclton SI0(a) ofOMB Circular A-133 7 Ma1or Programs federal award audited as a maJor program 1s as follow, 84 041 Impact Aid 8 Tvpe "A" Program Dollar rhreshold Ille dollar threshold for type "A" program, was $468.060 08 9 Low Risk Aud11ee The Liberty County Roard ofEducat10n qualified a~ a low n~k audtlee a~ defined by Scct10n 530 of 0MB Circular A-133 -I- LIBERTY COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30. 2002 II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Mamtain General Fixed Assets Account Group Reportable Condition - Malena! Weakness Repeated From Pnor Year Finding Control Number: FS-6891-02-01 The Liberty County Board of Education did not mamtam a system-wide General Fixed Assets Account Group within the formal accounting records as reqmred by generally accepted accounting pnnc1ples. This cond1t10n results in the general-purpose financial statements ofthe School D1stnct being incomplete and not in accordance with generally accepted accounting pnnc1ples. 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, bmldings and eqmpment owned by the School District and should include, but may not be limned to, date acqmred, acqu1sit1on cost, estimated replacement cost, location and descnpt1on. Detailed records should be mamtamed ofall additions and deletions to the General Fixed Assets Account Group. Management's Response. The Liberty County Board ofEducation plans to include the General Fixed Assets Account Group in accounting records begiMing in fiscal year 2003. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported -2 -