LINCOLN COUNTY BOARD OF EDUCA'I'ION 
 
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- TABLE OF CONTENTS ~. 
 
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SECTION I 
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FINANCIAL 
INDEPENDENT AUDITOR'S COMBINED REP' ORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
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. EXHIBITS 
 
GENERAL-PURPOSE FINANCIAL STATEMENTS 
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COMBINED STATEMENTS - OVERYIEW 
 
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COMBINED BALANCE SHEET: 
 
ALL FUND TYPES AND ACCOUNT GROUP 
 
B 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUND BALANCES 
 
ALL GOVERNMENTAL FUND TYPES 
 
C 
 
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND 
 
CHANGES IN FUNI) BALANCES - BUDGET AND ACTUAL 
 
(NON~GAAP BASIS) : 
 
GENERAL AND SPECIAL REVENUE FUNDS 
 
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D NOTES TO THE GENERAL-PURPO~E FINANCIAL STATEMENTS 
 
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ADDITIONAL FINANCIAL INFORMATION 
 
COMBINING STATEMENTS 
 
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SPECIAL REVENUE FUND .: 
 
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COMBINING BALANCE SHEET 
 
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COMBINING STATEMENT OF REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
CAPITAL PROJECTS FUND 1 
 
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COMBINING BALANCE SHEET 
 
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COMBINING STATEMENT ;1 0F REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
 
DEBT SERVICE FUND 
 
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COMBINING BALANCE SHEET 
 
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COMBINING STATEMEJ\.'T 0F REVENUES, EXPENDITURES 
 
AND CHANGES IN FUND BALANCES 
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SCHEDULES 
 
I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 1 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
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2 4 6 7 
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20 22 
24 26 
27 28 
30 31 
 
 SCHEDULES 
 
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LINCOLN COUNTY BOARD OF EDUCATION 
 
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- TABLE\ OF CONTENTS - 
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SECTION I I 
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FINANCIAL 
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ADDITIONAL FINANCIAL INFORMATION 
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EARNINGSANDEXPENDIUJRES 
 
GENERAL FUND - QUALITY BiASIC EDUCATION PROGRAMS (QBE) 
 
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BY PROGRAM 
 
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BY SITE 
 
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SECTION IT 
 
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 COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
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REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL 
 
REPORTING BASED ON AN AUDIT OF FINJXNCIAL STATEMENTS PERFORMED IN 
 
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ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 
 
REPORT ON COMPLIANCE WITH REQUIRE:t'vfENTS APPLICABLE TO EACH -MAJOR 
I PROGRAM AND ON INTERNAL CONTROL 0VER COMPLIANCE IN ACCORDANCE WITH 
0MB CIRCULAR A-133 
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SECTION ill 
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AUDITEE'S RESPONSE TO PRIOR YJi;:AR FINDINGS AND QUESTIO.NED COSTS 
SUMMARY SCHEDULE OF PRIOR YEAR FilfI)INGS AND QUESTIONED COSTS 
 
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FINDINGS AND QUESTIONED COSTS 
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SCHEDULE OF FINDINGS AND QUESTIONED COSTS I I I 
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SECTION I 
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FINANCIAL 
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 l'SSEI.I. '"' H1~TOI'; STATE AUDITOR 
1404) 656-2174 
 
DEPARTMENT OF 1\uoITS AND ACCOUNTS 
254 Washing16n S1rce1. S.W.. Suite 214 
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Marth 14, 2002 
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Honorable Roy E. Barnes, Governor 
 
Members ofthe General Assembly 
 
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I Members of the State Board of Education and 
 
Superintendent and Members of the 
 
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Lincoln County Board of Education 
 
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INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE 
 
FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION - 
 
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
 
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Ladies and Gentlemen: 
 
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We have audited the accompanying general)purpose financial statements of the Lincoln County 
 
Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. 
 
These general-purpose financial statements a~e the responsibility of the Lincoln County Board of 
 
Education's management. Our responsibility is to expre~s an opinion on these general-purpose 
 
financial statements based on our audit. 
 
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We conducted our audit in accordance with iauditing standards generally accepted in the United 
 
States ofAmerica and the standards applicabl~ to financial audits contained in Government Auditing 
 
Standards, issued by the Comptroller Generalof the United States. Those standards require that we 
 
plan and perform the audit to obtain reasonabl~e assurance about whether the financial statements are 
 
free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the 
 
amounts and disclosures in the financial staterhents. An audit also includes assessing the accounting 
 
principles used and significant estimates made by management, as well as evaluating the overall 
 
fin_a~cial statement presentation. W~ belieJje that our audit provides a reasonable basis for our 
 
op1mon. 
 
 
 
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As described in the notes to the general-puiose financial statements, the Board of Edu~ation's 
 
financial statements have been prepared using certain accounting practices and policies which, in our 
 
opinion, vary in some respects from generally accepted accounting principles. These variances are 
 
described as follows: 
 
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2001ARL-13 
 
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* The general-purpose financial st~temehts of the Board of Education did not contain a I General l'.ixed Assets Account Group t9 account for property and equipment owned by 
 
the Board of Education which should lbe included to conform to generally accepted 
 
accounting principles. 
 
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* School activity accounts maintained at the individual schools are not included in the 
 
general-purpose financial statements. !To conform to generally accepted accounting 
 
principles, these accounts should be included in the general-purpose financial 
 
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statements. 
 
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* The Board of Education did not recognize as expenditures, in the year ended 
 
June 30, 2001, a portion of salaries an~ the corresponding employer's cost of related 
 
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benefits earned for contractual services; completed prior to June 30, 2001. Also funds 
 
received, subsequent to June 30, 2001, from the.Georgia Department ofEducation for 
 
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the State's share of these unrecorded salaries and related benefits were not recorded as 
 
revenue in the year under review. Cohversely, the similar expenditures and related 
 
revenues for contractual services com~leted prior to June 30, 2000, were improperly I 
recorded in the year ended June 30, 2001. To conform to generally accepted accounting 
 
principles, rev~nues should be recqrded when available and measurable and 
 
expenditures should be recorded when ihcurred, rather than when funds are received or 
 
disbursed. 
 
The aggregate effects on the general-purpose,financial statements of these variances or omissions 
 
have not been determined, but are believed to'. be material. 
 
 
 
In our opinion, except for the effects on the lgeneral-purpose financial statements of the matters 
referred to in the preceding paragraph, the geperal-purpose financial statements referred to above present fairly, in all material respects, the financial position of the Lincoln County Board of 
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Education as ofJune 30, 2001, and the results pfits operations for the year then ended, in conformity with .ac.counting principles generally ac, ceptedI in t.he United States of America. 
I In accordance with Government Auditing Staridards, we have also issued our report dated March 14, 
2002, on our consideration of the Lincoln County Board of Education's internal control over I 
financial reporting and our tests of its compliance with certain provisions of laws, regulations, 
contracts and grants. That report is an inte~ral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the 
results of our audit. 
 
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Lincoln County Board of/ Education taken as a whole. The accompanying combining statements (Exhibits E through J) ~nd the financial schedules (Schedules 1 through5), which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of Management and Budget Circular A-133, A~dits of States, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are J?Ot a required part of the general-:-purpose financial statements. Sucli information has been subjected to the auditing 
 
2001ARL-13 
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 procedures applied in the audit ofthe general-purpose financial statements and in our opinion, except for the effects ofthe matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-pilrpose financial statements taken as a whole. 
 
A cop; ofthis report has been filed as a permalent record in the office ofthe State Auditor and made 
 
available to the press ofthe State, as provided 'for by Official Code ofGeorgia Annotated Section 50- 
 
6-24. 
 
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RWH:gp 2001ARL-13 
 
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Respectfully submitted, 
 
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State Auditor 
 
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LINCOLN COUNTY BOARD OF EDUCATION 
 
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 LINCOLN COUNTY BOARD OF EDUCATION  COMBINED BALANCE SHEET 
ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
Amount Available in Debt Service Fund 
Amount to be Provided in Future Years For Payment of Bond Debt 
 
GENERAL FUND 
 
GOVERNMENTAL FUND TYPES 
 
 SPECIAL 
 
CAPITAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
$ 
 
653,088.92 $ 168,876.93 
 
430,065.92 
 
172,380.60 $ 
 
97,463.64 
 
123,963.54 
 
71,953.07 
 
87,644.70 
 
4.596.79 3,381.77 
 
Total Assets 
 
$ 1,207,118.38 $ 421,189.16 $ ==1=8=5==1,=0=8.=34= 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable General Obligation Bonds Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Bus Replacement Funds For Debt Service For Inventories Food Donated Commodities Purchased Food For SPLOST Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
121,072.28 
 
$ 
 
462,438.11 $ 
 
77,008.64 
 
101,557.56 
 
15,691.94 
 
$ 
 
462,438.11 $ 194,258.14 $ 
 
121,072.28 
 
$ 
 
4,596.79 
 
3,381.77 
 
$ 
 
$ 
 
744 680.27 
 
218,952.46 
 
$ 
 
744,680.27 $ 226,931.02 $ 
 
62,851.07 1 184.99 
64,036.06 
 
Total Liabilities.and Fund Equity 
 
$ 1,207,118.38 $ 421,189.16 $ 
 
185,108.34 
 
The notes to the general-purpose financial statements are an integral part of this statement. -2- 
 
 EXHIBIT "A" 
 
DEBT SERVICE 
FUND 
 
$ 
 
4,927.44 
 
486.15 
 
49.65 
 
ACCOUNT GROUP. 
GENERAL LONG-TERM 
DEBT 
 
TOTALS 
 
{Memorandum Only} 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
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$ 
 
826,89p.29 $ 
 
407,861.26 
 
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700,396.31 
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283,610.96 
 
883,525.93 404,122.44 
 
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. 4,59p.79 
3,3811.77 
 
3,036.16 . 1,687.32 
 
$ 
 
5,463.24 
 
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4,742.06 
 
2,774,536.76 
 
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2,774,536.76 
 
2,980,257.94 
 
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$ 
 
5 463.24 $ 2,780,000.00 $ 4,598,879.12 $ 4,685,233.11 
 
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$. 121,07~.28 $ 
 
13,778.05 
 
539,44p.75 
 
412,259.31 
 
101,55!-56 
 
93,606.36 
 
15,6911.94 
 
74,277.00 
 
$ 2,780,000.00 
 
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 2,780,000.00 
 
46,302.00 2,985,000.00 
 
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$ 2,780,000.00 $ 3,557,768.53 $ 3,625,222.72 
 
$ 
 
5,463.24 
 
$ 
 
12,539.94 
 
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$ 
 
5,4l24 
 
4,742.06 
 
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4,59p.79 
 
3,036.16 
 
3,3811.77 
 
1,687.32 
 
62,85,1.07 
 
136,414.22 
 
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0.00 
 
964,817.72 
 
901,590.69 
 
$ 
 
5 463.24 
 
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$ 1,041,110.59 $ 1,060,010.39 
 
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$ 
 
5463.24 $ 2,780,000.00 $ . 4,598,879.12 $ 4,685,233.11 
 
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 LINCOLN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
ALL GOVERNMENTAL FUND TYPES YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Federal Funds Taxes Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
Capital Outlay Debt Service 
Principal Interest Paying Agent Fees 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory- Net Change in Period .  Donated Commodities Purchased Food 
 
GENERAL FUND 
 
SPECIAL REVENUE 
FUND 
 
$ 6,993,230.61 $ 
 
330,563.60 
 
48,925.00 
 
1,086,972.04 
 
1,919,942.02 
 
99,267.94 
 
163,029.03 
 
$ 9,061,365.57 $ 1,580,564.67 
 
$ 6,091,402.58 $ 
315,926.40 91,874.34 189,944.61 192,637.31 
548,016.14 127,721.52 675,034.27 488,373.52 
13,445.00 
276,867.98 
 
421,234.92 
408,2~9.21 23,532.94 
61,089.44 
20,959.17 6,982.81 6,223.95 
631,726.79 
 
$ 9,011,243.67 $ 1,580,039.23 
 
$ 
 
50,121.90 $ 
 
525.44 
 
694,558.37 
 
-223,150.50 
 
1,560.63 1 694.45 
 
FUND BALANCE JUNE 30 
 
============ $ 
 
744 680.27 $ 
 
226,931.02 
 
The notes to the general-purpose financial statements are an integral part of this statement. -4- 
 
 EXHIBIT"B" 
 
CAPITAL PROJECTS 
FUND 
 
$ 
 
13,186.80 
 
133,482.20 $ 
8 571.21 
 
$ 
 
1551240.21 $ 
 
$ 
 
228,763.61 
 
$ 
 
$ 
 
228?63.61 $ 
 
$ 
 
-73,523.40 $ 
 
137,559.46 
 
TOTALS 
 
DEBT 
 
(Memorandum Onll'.} 
 
SERVICE 
 
YEAR ENDED 
 
FUND 
 
JUNE 3012001 
 
JUNE 30 12000 
 
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$ 7,3,36,981.01 $ 6,967,806.36 
 
358,953.48 
 
1, 1:35,897.04 
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2,~12,377.70 
 
1,010,180.44 2,261,211.65 
 
127.84 
 
2701996.02 
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2791559.99 
 
3591081.32 $ 
 
11, 1'.561251.77 $ 
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1015181758.44 
 
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$ 6,5112,637.50 $ 5,851,807.95 
 
205,000.00 151,320.00 
2040.14 
3581360.14 $ 
721.18 $ 
4,742.06 
 
7-24,215.61 1I115,407.28 
1;89,944.61 253,726.75 
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548,016.14 
1'27,721.52 
6:95,993.44 4,95,356.33 
119,668.95 6,31,726.79 
505,631.59 
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205,000.00 
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1j51,320.00 . 2040.14 
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11111781406.65 $ 
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i22,154.88 $ 
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1,0,60,010.39 
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l 1,560.63 
I. 1 694.45 
 
879,335.36 183,475.44 183,411.33 286,715.75 520,629.24 121,578.38 681,615.53 494,854.13 
19,870.30 . 623,657.69 
543,553.29 
185,000.00 159,182.50 
21030.78 
10,7361717.67 
-217,959.23 
1,283,412.59 
-5,152.06 -290.91 
 
$ 
 
64 036.06 $ 
 
5 463.24 $ 110411110.59 $ 1,0601010.39 
 
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 LINCOLN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
BUDGET AND ACTUAL - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 
YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "C" 
 
GENERAL FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
REVENUES 
 
State Funds Federal Funds Taxes Other Funds 
 
$ 6,644,950.00 $ 6,993,230.61 
 
52,000.00 
 
48,925.00 
 
1,889,466.41 
 
1,919,942.02 
 
33,500.00 
 
99,267.94 
 
Total Revenues 
 
$ 8,619,916.41 $ 9,061,365.57 
 
. EXPENDITURES 
 
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
Capital Outlay 
 
$ 5,946,605.82 $ 6,091,4.02.58 
 
368,921.16 107,852.80 215,816.61 189,315.50 551,663.13 122,987.73 605,880.90 400,647.23 
13,445.00 
 
315,926.40 91,874.34 189,944.61 192,637.31 
548,016.14 127,721.52 675,034.27 488,373.52 
13,445.00 
 
237,382.50 
 
276,867.98 
 
Total Expenditures 
 
$ 8,760,518.38 $ 9,011,243.67 
 
Excess of Revenues over (under) Expenditures 
 
$ -140,601.97 $ 50,121.90 
 
OTHER FINANCING SOURCES {USES} 
 
Other Sources Other Uses 
 
$ -42,478.12 
 
Total Other Financing Sources (Uses) $ -42,478.12 
 
Excess of Revenues and Other Financing Sources 
 
over (under) Expenditures and Other Financi_rig 
 
Uses 
 
$ -183,080.09 $ 
 
50,121.90 
 
FUND BALANCE JULY 1, 2000 
 
623,425.25 
 
694,558.37 
 
Adjustments Food Inventory - Net Change in Period 
Donated Commodities Purchased Food 
 
-775.40 
 
FUND BALANCE JUNE 30, 2001 
 
$ 439,569.76 $ 744,680.27 
 
SPECIAL REVENUE FUND 
 
ACTUAL 
 
(BUDGET 
 
BUDGET 
 
BASIS) 
 
$ 
 
0.00 $ 330,563.60 
 
1,086,972.04 
 
163,029.03 
 
$ 
 
0.00 $ 1,580,564.67 
 
$ 421,234.92 
408,289.21 23,532.94 
61,089.44 
 
$ 5,900.00 
 
20,959.17 6,982.81 6,223.95 631,726.79 
 
$ 5,900.00 $ 1,580,039.23 
 
$ -5,900.00 $ 
 
525.44 
 
$ 42,478.12 $ 42,478.12 
 
$ 36,578.12 $ 
 
525.44 
 
223,310.43 
 
223,150.50 
 
280.66 
 
1,560.63 1 694.45 
 
$ 260,169.21 $ 226,931.02 
 
The notes to the general-purpose financial statements are an integral part of this statement. -6 - 
 
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LINCOLN COUNTY BOARD OF EDUCATION 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
JUNE 30, 2001 
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EXHIBIT "D" 
 
Note I: SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES 
 
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REPORTING ENTITY 
 
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The Lincoln County Board of Education (Sch6ol District) was established under the laws ofthe State of Georgia and operates under the guidan~e of a school board elected by the voters and a 
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Superintendent appointed by the Board. The School District is organized as a separate legal entity 
 
and has the power to levy taxes and issue bori:ds. Its budget is not subject to approval by any other entity. Accordingly, .the School District is a primary government and consists of all the 
 
organizations that compose its legal eptity. 
 
FUND ACCOUNTING 
 
The School District uses funds and an accoun~ group to report on its financial position and the results 
 
of its operations..Fund accounting is designed to demonstrate legal compliance and to aid financial 
 
management by segregating transactions related to certain governmental functions or activities. A 
 
fund is a separate accounting entity with a s~lf-balancing set of accounts. An account group is_ a 
 
financial reporting device designed to provide accountability for certain assets and liabilities that are 
 
not recorded in the funds because they do; not directly affect expendable available financial 
 
resources. 
 
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General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A 
 
General Fixed Assets Account Group is n9t presently maintained by the School District. To 
 
conform to generally accepted accounting principles, a General Fixed Assets Account Group should 
 
be maintained for reporting the cost of assets! acquired by governmental fund types. 
 
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Although "school activity accounts" are maintained at the individual schools, neither the assets, 
 
liabilities and fund equity, nor the revenues;J expenditures and changes in fund balances of these 
 
accounts are reflected in these financial state~ents. To conform to generally accepted accounting 
 
principles, these accounts sho.uld be recorde, in the general-purpose financial statements. . 
 
The-general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliapce with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows: 
 
GOVERNMENTAL FUND TYPES - are 1used to account for all or most of a School District's educational activities. Governmental Fund Types include: 
 
GENERAL FUND - the fund used to acclunt for all financial resources of the School District except those required to be accounted for i~ another fund. These transactions relate to resources obtained and used for services provided by a board of education. 
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 LINCOLN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital proj.ects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives. 
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used forthe acquisition or construction of major capital facilities. 
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees. 
ACCOUNT GROUP 
GENERAL LONG-TERM DEBT ACCOlJNT GROUP - A financial reporting device used to account for general obligation debt outstanding. 
BASIS OF ACCOUNTING 
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expendituresand other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.  
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group. 
Governmental funds are accounted for using the modified accrual basis of accounting under which: 
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. 
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NOTES TO THE GENERAL-RURPOSE FINANCIAL STATEMENTS 
. JUNE 30, 2001 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
Expenditures are generally recognized whei the related fund liability is incurred. 
 
A departure from the above definition~ is the kccounting treatment afforded the final two payments 
 
on General Fund teachers' and bus drivers' cdntracts, and the resources available from the Georgia 
 
Department of Education for the State's s~are of these contracts. During fiscal year 2001, a I 
substantial number ofpersonnelofthe School District were employed for a one hundred and ninety 
 
day period beginning in August 2000 and entling in early June 2001. Personnel contracts for this 
 
employment period specify that compensatioii be paid in twelve equal monthly payments beginning 
 
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in September 2000 and ending in August 2po1. State grants to fund the. State's share of these 
 
contracts were disbursed from the Georgia Department of Education to the School District in the 
 
same twelve months. As of June 30, .200,1, dI ompensa. tion under these employment contracts had been earned, but two of the twelve monthly p:ayments, due for July and August 2001, had not been 
 
made. Payments for these two months wer~ made and recorded as expenditures by the School 
 
District subsequent to June 30, 2001. Also, tlie State's portion ofthe compensation paid in July and 
 
August 2001 was received and recorded as r~venue in the fiscal year subsequent to June 30, 2001. 
 
Conversely, the similar expenditures and rela~ed revenues for contractual services completed prior to 
 
June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting 
 
principles require that revenues be recorded vJhen available and measurable and that expenditures be 
 
. i . recorded when incurred, rather than when fuhds are received or disbursed. 
 
BUDGET 
 
i 
 
I 
I 
The Lincoln County Board ofEducation's pudget is a complete financial plan for the School 
 
District's fiscal year and is based upo_n esti111ates of expenditures together with probable funding 
 
sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The 
 
budget for all governmental funds is prepar~d by fund, function and object. The legal level of 
 
budget control was established by the Board !at the aggregate level. The budget for governmental 
 
funds was prepared on a basis other than ge~erally accepted accounti~g principles. 
 
The budget process begins when the S~hool district's administration prepares a tentative budget for 
 
the Board's approval. After approval ofthis tJntative budget by the Board, such budget is advertised 
 
at least once in a newspaper of general circul~tion in the locality. At the next regular meeting of the 
 
Board after advertisement, the Board receive~ comments on the tentative budget, makes revisions as 
 
I 
 
. 
 
necessary and adopts a final school budget. 11his final budget is then submitted, in accordance with 
 
provisions of the Quality Basic Education\ Act, OCGA Section 20-2-167(c), to the Georgia 
 
Department of Education. The Board may i1crease or decrease the budget at any time during the 
 
year. All unexpended budget authority lapse's at fiscal year-end. 
 
CASH AND CASH EQUIVALENTS ! 
 
I 
 
COMPOSITION OF DEPOSITS 
 
j 
 
. 
 
. Cash and cash equivalents consist ofcash on qand, demand de_posits and short-term investments with 
 
original maturities of three months or less from the date of acquisition in authorized financial 
 
. 
 
I 
 
-9- 
 
 LINCOLN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. 
 
institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations. 
 
INVESTMENTS 
 
COMPOSITION OF INVESTMENTS 
 
Investments made by the School District in nonparticipating interest-earning contracts (such as 
 
certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning 
 
contracts and money market investments with a maturity at purchase ofone year or less are reported 
 
 at amortized cost. Both participating interest-earning contracts and money market investments with 
 
a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia 
 
Annotated Section 36-83-4 authorizes the School District to invest its funds; In selecting among 
 
options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the 
 
objective, given equivalent conditions of safety and liquidity. Funds may be invested in the 
 
following: 
 
 
 
(1) Obligations issued by the State of Georgia or by other states, 
 
(2) Obligations issued by the United States government, 
 
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency, . 
 
(4) Obligations of any corporation of the United States government, 
 
(S-) Prime banker's acceptances, 
 
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services, 
 
(7) Repurchase agreements, and 
 
(8) Obligations of other political subdivisions of the State of Georgia. 
 
RECEJV ABLES 
 
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables. 
 
- IO - 
 
 I 
LINCOLN COUNTY BOARD OF EDUCATION 
NOTES TO THE GENERAL-RURPOSE FINANCIAL STATEMENTS 
.JUNE 30, 2001 
 
EXHIBIT "D" 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 
' I 
 
PROPERTY TAXES 
 
I I 
 
. 
 
I 
 
The Lincoln County Board of Commission~rs fixed the property tax levy for the 2000 tax year 
 
(calendar year) on November 30, 2000 (levy date). Taxes were due on February 23, 2001 (lien date). 
 
Taxes collected within the current fiscal ydar or within 60 days after year-end are reported as 
 
revenue in fiscal year 2001. The Lincoln County Tax Commissioner bills and collects the property 
 
. 
 
I 
 
taxes for the School District, withholds 2.5% pftaxes collected as a fee for tax collection and remits 
 
the balance of taxes collected to the School District. In addition, the Clerk of Superior Court of 
 
Lincoln County coliects recording taxes for the Board ofEducation, withholds 6% oftaxes collected 
 
as a fee for tax collection and remits the balan~e to the School District. Property tax revenues during 
 
the fiscal year ended June 30, 2001 for maintcinance and operations amounted to $1,912,692.66 and 
 
I  . for school bonds amounted to $2,633.48. 
 
 
 
The tax millage rate levied for the 2000 tax ~ear (calendar year) for the Lincoln County Board of 
 
Education was as follows (a mill equals $1 p1erthousand dollars of assessed value): 
 
. 
 
. 
 
! 
 
' 
 
I 
 
School Operations 
 
i 
 
15.05 mills 
 
:I 
 
SALES TAXES 
 
! 
I 
 
I 
 
I 
Special Purpose Local Option Sales Tax is to pe used for capital outlay for educational purposes and 
 
debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to I 
$489,802.20 and was recorded in the Capital Projects and Debt Service Funds. The State will 
 
i terminate collection of this tax once an ddditional $1,295,932.14 has been collected or on 
December 31, 2002, whichever occurs first. 
 
INVENTORIES 
 
FOOD INVENTORIES 
 
Inventories of donated food commodities used in the preparation of meals are reported on the I 
Combined Balance Sheet at their Federally as~igned value. Purchased foods inventories are reported 
 
on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded 
 
as revenues and expenditures at the time comrilodity items are received. Purchased foods inventories 
 
are recorded as expenditures at the time of pu~chase. The inventories reported on the balance sheet 
 
for donated food commodities and for purch~sed foods are equally offset by reservations of fund. 
 
balance which indicates that these amounts db not constitute "available spendable resources" even 
 
. 
 
I 
 
though they are a component of net current assets. 
 
GENERAL OBLIGATION BONDS 
 
The Schoo,} District isses general obligation bonds to provide funds for the acquisition and construction ofmajor capital facilities_. Bond:premiums and discounts, as well as issuance costs, are recognized in the financial statements durib.g the year bonds are issued. In addition, general 
I 
I 
I 
:I _11 _ 
 
 LINCOLN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group. 
INTERFUND TRANSACTIONS . 
The School District has the following type of interfund transactions: 
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed. 
MEMORANDUM ONLY -TOTAL COLUMNS 
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate .that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting . principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. 
Note 2: DEPOSITS AND INVESTMENTS 
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sectio:q 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b)provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts. 
Acceptable security for deposits consists of any one of or any combination of the following: 
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia, 
 (2) Insurance on accounts provided by the Federal Deposit Insurance Corporation, 
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United  States or of the State of Georgia, 
- 12 - 
 
 LINCOLN-COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-P.URPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 2: DEPOSITS AND INVESTMENTS: 
i 
(4) Bonds, bills, notes, certificates ofindebtedness or other obligations of the counties or 
municipalities of the State of Geor~ia, 
 
(5) Bonds of any public authority crea~L by the laws of the State of Georgia, providing that . the statute that created the authorit~ authorized the use of the bonds for this purpose, 
 
(6) Industrial revenue bonds and bondsIof devOlopment authorities created by the laws of the 
 
 State of Georgia, and 
 
I 
 
' I 
(7) Bonds, bills, notes, certificates ori indebtedness, or other obligations of a subsidiary 
 corporation of the United States government, which are fully guaranteed by the United 
States government both as to princidal and interest or debt obligations issued by the Federal 
Land Bank, the Federal Home Lohn Bank, the Federal Intermediate Credit Bank, the I 
Central Bank for Cooperatives, the Fann Credit Banks, the Federal Home Loan Mortgage 
Association, and the Federal Natiorial Mortgage Association. 
 
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $1,482,438.01. The amounts ofthe total bank balances are classified into three categories of credit risk: 
 
Category 1 - Cash that is insured (e.g'., Federal depository insurance) or collateralized with securities held by the Scihool District or by the School District's agent in the School District's name. 
Category 2 - Cash collateralized with securities held.by the pledging financial institution's trust department or agent in the School District's name. 
.Category 3 - Uncollateralized depositk. (This includes any bank balance that is collateralized with securities held byl the pledging financial institution, or by its trust department or ag~nt but rot in the School District's name.). 
 
The School District's deposits are classified by risk category at June 30, 2001, as follows: 
 
Risk Category. 
 
Bank Balance 
 
1 
 
$ 204,927.44 
 
2 
 
1,277,510.57 
 
3 
 
0.00 
 
Total 
 
$ 1,482,438.01 
 
CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value ofthe School District's total investments was $93,562.68 which is materially the same as fair value. This invebment consisted entirely offunds invested in the Local Government Investment Pool administered ,y the State of Georgia, Office of Treasury and Fiscal 
 
1-13- 
 
 LINCOLN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 2: DEPOSITS AND INVESTMENTS 
 
Services which are not required fo be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State ofGeorgia, Office ofTreasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description of the Primary Liquidity Portfolio is as follows: 
 
The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis_ and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund._ 
 
:Investments in Georgia Fund 1 and Fund 6 are directed toward short:.term instruments such as U.S. 
 
Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. 
 
Government or any of its agencies or instrumentalities, banker's acceptances and repurchase 
 
agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The 
 
weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average 
 
investment duration for Fund 6 on June 30, 2001, was 6 months. 
 
 
 
Note 3: NON-MONETARY TRANSACTIONS 
 
The School District receives food commodities from the United States Department of Agriculture (USDA) for school breakfast and lunch programs. These commodities are recorded at their Federaliy assigned value. See Note 1 - Inventories 
 
Note 4: RISK MANAGEMENT 
 
The School District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors or omissions;job related illness or injuries to employees; natural disaster and unemployment compensation. 
 
The School District has obtained commercial insurance for risk ofloss associated with torts, assets, errors or omissions, job related illness or injuries to employees and natural disaster. However, the errors or omissions policy excludes coverage for discrimination. The School District has neither 
 
- 14 - 
 
 LINCOLN COUNTiY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-P.URPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 4: RISK MANAGEMENT 
 
significantly reduced coverage for these risks nor incurred losses (settlements) which exceeded the 
 
School District's insurance coverage in any df the past three years. 
 
. 
 
The School District is self-insured with regari to unemployment compensation claims. The School 
 
District accounts for claims within the Genetal Fund with expenditure and liability being reported 
 
when it is probable that a loss has occurred, aAd the amount ofthat loss can be reasonably estimated. I 
The Lincoln County Board of Education has not incurred any liabilities for unemployment 
 
compensation during the last two fiscal yeart 
 
. 
 
The School District has purchased surety bo~~s to provide additional insurance coverage as follows: 
 
Position Covered 
 
Amount 
 
Superintendent All Other Employees 
 
$ 50,000.00 $ 1,000,000.00 
 
Note 5: GENERAL LONG-TERM DEBT 
 
GENERAL OBLIGATION DEBT OUTSTANDING I 
General .Obligation Bonds currently outstanding are as follows: 
 
Purpose 
 
Interest Rates 
 
Amount 
 
. I General Government - Refunding- SeFies 1993 2.75% - 5.40% 
 
$2,780,000.00 
 
The changes in General Long-Term Debt during the fiscal year ended June 30, 2001, were as 
 
follows: 
 
 
 
General Obligation 
Bonds 
 
Balance July 1, 2000 
 
$ 2,985,000.00 
 
Deductions Debt Retired 
 
205,000.00 
 
Balance June 30, 2001 
 
$ 2.780.000.00 
 
At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: 
 
 - 15 - 
 
 LINCOLN COUNTY BOARD OF EDUCATION 
 
. EXHIBIT "D" 
 
NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 5: GENERAL LONG-TERM DEBT 
 
Fiscal Year Ended June 30 
 
General Obligation 
Bonds 
 
2002 2003 2004 2005 2006 2007 - 2009 
 
$ 377,300.00 386,490.00 409,377.50 425,167.50. 449,007.50 
1,466,387.50 
 
Total Principal and Interest 
 
$ 3,513.730.00 
 
Note 6: SHORT-TERM DEBT 
 
The School District obtains temporary loans in advance of property tax collections, depositing the proceeds in its General Fund. This short-temi debt is to provide cash for operations until property tax collections are received by the School District each February. Article IX, Section V, Paragraph V of the Constitution of the State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short.term debt to be repaid no later than December 31 of the calendar year in which the debt was incurred. 
 
Beginning . Balance 
 
Additions 
 
Payments 
 
Ending Balance 
 
Temporary Loans 
 
$==="'0=".0.,.0 $ 218,768.50 $ 218,768.50 $===="0=".0'="0 
 
. Note 7: ON-BEHALF PAYMENTS 
 
The School District has recognized revenues and expenditures in the amount of $174,921.08 for health insurance and retirement contributions paid on.the School District's behalf by the following State Agencies. 
 
Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel In the amount of $138,112.54 
 
Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $8,386.54 
 
- 16 - 
 
 I .. 
 
LINCOLN COUNTY BOARD OF EDUCATION 
 
EXHIBIT "D" 
 
NOTES TO THE GENERAL-RURPOSE FINANCIAL STATEMENTS 
 
JUNE 30, 2001 
 
Note 7: ON-BEHALF PAYMENTS 
 
Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Reiirement (PSERS) Employer's Cost In the amount of$28,422.00 
 
Note 8: CONTINGENT LIABILITIES 
 
Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed uJder grant terms. The School District believes that such disallowances, if any, will be immaterial to i~s overall financial position. 
 
Note 9: RETIREMENT PLANS 
 
TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) 
 
TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement Systfm of Georgia (TRS), which is a cost-sharing multiple  employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in acco~dance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts; 
 
TRS CONTRIBUTIONS REQUIRED' AND MADE 
 
 
 
Employees ofthe School District who are coered by TRS are required by State statute to contribute 
 
5% of their gross earnings toTRS. The Schbol District makes monthly employer contributions to 
 
TRS at rates adopted by the TRS Boa,rd of Tiustees in accordance with State statute and as advised 
 
by their independent actuary. The required! employer contribution rate is 11.29% and employer 
 
contributions for the current fiscal year and the preceding two fiscal years are as follows: 
 
Fiscal Year 
 
Percentage Contributed 
 
Required Contribution 
 
2001 2000 1999 
 
100% 100% 100% 
 
$ 662,648.88 $ 640,138.23 $ 643,640.91 
 
- 17 - 
 
 LINCOLN COUNTY BOARD OF EDUCATION. COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001 
 
ASSETS 
Cash and Cash Equivalents 
Investments 
Accounts Receivable 
Inventories Food Donated Commodities Purchased Food 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
71,788.69 $ 
 
46,666.15 
 
172,380.60 
 
18,082.15 
 
4,596.79 3 381.77 
 
Total Assets 
 
$ 
 
270,230.00 $ ===4=6=,6=66==15= 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For Inventories Food  Donated Commodities Purchased Food Unrnserved Undesignated 
Total Fund Equity 
Total Liabilities and Fund Equity 
See notes to the general-purpose financial statements. 
- 18 - 
 
$ 
 
10,702.50 $ 
 
18,841.55 
 
32,596.48 
 
27,824.60 
 
$ 
 
43,298.98 $ 
 
46,666.15 
 
$ 
 
4,596.79 
 
3,381.77 
 
218,952.46 $ 
 
$ 
 
226,931.02 $ 
 
0.00 0.00 
 
$ 
 
270,230.00 $ ===4=6=,6=66==15= 
 
 I 
I 
E*HIBIT"E" 
I 
 
FEDERAL 
 
TOTALS 
 
PROGRAMS 
 
JUNE 30, 2001 
 
JUNE 1301 2000 
 
i 
 
I 
 
$ 
 
50,422.09 $ 
 
168,876.93 $ 
 
142,727.03 
 
I 
 
I 
 
172,380.60 
 
I . 162,796.88 . 
 
53,870.92 
 
71,953.07 
 
I 
153,177.25 
 
4,?96.79 3 381.77 
 
3,036.16 
. 1,687.32 
I 
I 
 
:1 
 
$ 
 
104,293.01 $ 
 
421,189.16 $ 
 
463,424.64' 
 
$ 
 
96,719.92  
 
I 
 
$ 
 
47,464.59 $ 
 
77,008.64 
 
49,947.86 
 
'I 
 
41,136.48 
 
101,557.56 
 
93,606.36 
 
15 691.94 
 
15 691.94 
 
:I 
 
I 
 
$ 
 
104,293.01 $ 
 
194,258.14 $ 
 
240,274.14 
 
i 
I 
 
$ 
 
4,596.79 $ 
 
:!3,036.16 
 
3,381.77 
 
:11 ,687.32 
 
I 
I 
 
$ 
 
0.00 
 
218,952.46 
 
21'8,427.02 
 
I 
 
$ 
 
0.00 $ 
 
226,931.02 $ 
 
223,150.50 
 
$ 
 
104 293.01 $ 
 
421 I189.16 $ ==4=6o=3==:,4:=24=:.=:64=== 
 
I 
 
I 
 
,  19 - 
 
 LINCOLN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001 
 
REVENUES 
State Funds Federal Funds Other Funds 
Total Revenues 
EXPENDITURES 
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation 
Total Expenditures 
Excess of Revenues over (under) Expenditures 
FUND BALANCE JULY 1 
Food Inventory - Net Change in Period Donated Commodities Purchased Food. 
 
SCHOOL FOOD 
SERVICES FUND 
 
LOTTERY PROGRAMS 
 
$ 
 
44,684.00 $ 
 
285,879.60 
 
423,637.91 
 
163,029.03 
 
$ 
 
631,350.94 $ 
 
285,879.60 
 
$ 
 
211,647.40 
 
46,050.76 
 
4,818.40 19,308.83 
3,152.92 
 
$ 
 
630,825.50 
 
901.29 
 
$ 
 
630,825.50 $ 
 
285,879.60 
 
$ 
 
525.44 $ 
 
0.00 
 
223,150.50 
 
0.00 
 
1,560.63 1 694.45 
 
FUND BALANCE JUNE 30 
 
$ 
 
226,931.02 $=====0.=00=== 
 
See notes to the general-purpose financial statements. - 20 - 
 
 EXHIBIT"F" 
'I 
 
FEDERAL PROGRAMS 
 
TOTALS 
 
YEAR ENDED I 
 
JUNE 30, 2001 
 
JUNE 30, 2000 
 
$ 
 
330,563.60 $ 
 
447,231.97 
 
$ 
 
663,334.13 
 
1,086,972.04 ' 
 
9,, 68,277.44 
 
163,029.03 
 
t45,753.73 
 
I 
 
$ 
 
663,334.13 $ 1,580,564.67 $ 1,461,26_3.14 
 
$ 
 
209,587.52 $ 
 
421,234.92 $ 
 
370,771.96 
 
I 
 
362,238.45 
 
408,289.21 
 
356,738.40 
 
23,532.94 
 
23,532.94 
 
I 
:26,971.46 
 
56,271.04 
 
61,089.44 
 
166,812.03 
 
1,650.34 
 
20,959.17 
 
127,958.21 
 
3,829.89 6,223.95 
 
6,982.81 6,223.95 
 
I 9,662.25 
i 5,950.30 
 
631,726.79 
 
623,657.69 
 
,I 
 
$ 
 
663,334.13 $ 1,580,039.23 $ 1,488,522.30 
 
I 
 
$ 
 
0.00 $ 
 
525.44 $ 
 
127,259.16 
 
0.00 
 
223,150.50 
 
255,852.63 
 
1,560.63 1 694.45 
 
-5,152.06 
I -290.91 
 
$ 
 
0.00 $ 
 
226,931.02 $ ==2=2=3=1,=50==50= 
 
I 
 
- 21 - 
 
 LINCOLN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
 
REGULAR 
 
GEORGIA STATE FINANCING AND 
INVESTMENT COMMISSION 
 
$ 
 
1,184.99 $ 
 
0.00 
 
Total Assets 
 
$ 
 
1,184.99 $====0==00= 
 
LIABILITIES AND FUND EQUITY 
LIABILITIES 
Cash Overdraft Contracts Payable Retainages Payable 
Total Liabilities 
FUND EQUITY 
Fund Balances Reserved For SPLOST Projects Unreserved Undesignated 
Total Fund Equity 
 
$ 
 
1184.99 $ _ _ _ _ _0~.:::.;00::,_ 
 
$ 
 
1184.99 $ _ _ _ _ _0~.:::.;00::.... 
 
Total Liabilities and Fund Equity 
 
$ 
 
1 184.99 $ =====o==bo= 
 
See notes to the general-purpose financial statements. - 22 - 
 
 I 
i 
EXHIBIT"G" 
I 
I 
 
SPECIAL 
 
PURPOSE 
 
LOCAL OPTION 
 
TOTALS 
 
SALES TAX 
 
JUNE30, 2001 
 
JUNE 30, 2000 
 
I 
 
$ 
 
1,184.99 $ 
 
121,724.24 
 
$ 
 
97,463.64 
 
87 644.70 
 
97,463.64 87 644.70 
 
I 
135,432.18 
I 
136 4'84.33 
I 
 
I 
 
$ 
 
185 108.34 $ 
 
186,293.33 $ 
 
393,640.75 
 
i 
 
I 
 
$ 
 
122,257.27 $ 
 
122,257.27 $ 
 
135,502.29 
 
174,277.00 
 
46,302.00 
 
I 
 
$ 
 
122,257.27 $ 
 
122 257.27 $ 
 
256,081.29 
 
I 
I 
 
I 
 
$ 
 
62,851.07 $ 
 
62,851.07 $ 
 
1'36,414.22 
 
0.00 
 
1 184.99 
 
I 
I 1145.24 
 
i 
 
i 
 
$ 
 
62,851.07 $ 
 
64,036.06 $ 
 
137,559.46 
 
I 
 
$ 
 
185 108.34 $ 
 
186,293.33 $ 
 
J93,640.75 
 
rI - 23 - 
I 
I 
 
 LINCOLN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30, 2001 
 
REVENUES State Funds Taxes Other Funds Total Revenues 
EXPENDITURES Capital Outlay Building and Building Improvements 
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES) 
Operating Transfers In Operating Transfers Out 
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources 
over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1 
FUND BALANCE JUNE 30 
 
REGULAR 
 
GEORGIA sTATE FINANCING AND 
INVESTMENT COMMISSION 
 
$ 
 
13,186.80 
 
$ 
 
39.75 
 
$ 
 
39.75 $ 
 
131186.80 
 
$ 
 
0.00 $ 
 
68 763.61 
 
$ 
 
39.75 $ 
 
-55,576.81 
 
$ 
 
55,576.81 
 
$ 
 
55 576.81 
 
$ 
 
39.75 $ 
 
0.00 
 
1 145.24 
 
0.00 
 
$ 
 
1 184.99 $ =====o=.o=o= 
 
see notes to the general-purpose financial statements. - 24 - .. 
 
 I 
I 
EXHIBIT"H" 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS 
 
YEAR ENDED \ 
 
JUNE 30, 2001 
 
JUNE: 30, 2000 
 
I 
 
I 
 
$ 
 
13,186.80 $ 
 
1~8,681.20 
 
$ 
 
133,482.20 
 
8 531.46 
 
133,482.20 8 571.21 
 
174,007.82 
I 
17 605.27 
 
I 
 
$ 
 
142,013.66 $ 
 
155,240.21 $ 
 
310,294.29 
 
I 
 
I 
 
I 
 
$ 
 
160,000.00 $ 
 
228,763.61 $ 
 
470,254.00 
 
I 
 
$ 
 
-17 986.34 $ 
 
-73,523.40 $ -159,959.71 
 
I 
 
$ 
 
55,576.81 $ 
 
3~8,108.32 
 
$ 
 
-55,576.81 
 
-55,576.81 
 
-338, 108.32 
 
$ 
 
-55,576.81 $ 
 
0.00 $ 
 
I 
I 0.00 
 
$ 
 
-73,563.15 $ 
 
-73,523.40 $ -159,959.71 
 
I 
 
. I 
 
136,414.22 
 
137,559.46 
 
297,519.17 
 
$ 
 
62,851.07 $ 
 
64,036.06 $ ==1=3=7=,5=59=.4=6= 
 
I 
I 
I 
 
- 25 - 
 
 LINCOLN COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30. 2001 
 
EXHIBIT "I" 
 
ASSETS Cash and Cash Equivalents Investments Accounts Receivable 
 
PROPERTY TAXES FOR BOND DEBT 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS JUNE 30, 2001 JUNE 30, 2000 
 
$ 
 
671.53 $ 
 
4,255.91 $ 
 
4,927.44 $ 
 
4,283.51 
 
486.15 
 
486.15 
 
458.55 
 
49.65. 
 
49.65 
 
934.75 
 
Total Assets 
 
$ 
 
721.18 $ . 
 
4 742.06 $ 
 
5 463.24 $ ===5=67=6=.8=1= 
 
LIABILITIES AND FUND EQUITY 
 
LIABILITIES 
 
Cash Overdraft 
 
FUND EQUITY 
 
Fund Balances 
 
Reserved 
 
For Debt Service 
 
$ 
 
Unreserved 
 
Undesigriated 
 
Total Fund Equity 
 
$ 
 
721.18 $ 0.00 
721.18 $ 
 
$ 
 
934.75 
 
4,742.06 $ 0.00 
4 742.06 $ 
 
5,463.24 $ 0.00 
5 463.24 $ 
 
4,742.06 0.00 
4 742.06 
 
Total Liabilities <!nd Fund Equity 
 
$ 
 
721.18 . $ 
 
4 742.06 $ 
 
5 463.24. $ ===5=6=76=.8=1= 
 
See notes to the general-purpose financial statements. 
 
- 26 - 
 
 i 
I I 
LINCOLN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 
. DEBT SERVICE FUND 
YEAR ENDED JUNE 30, 2001 
 
EXHIBIT "J" 
 
'-, 
REVENUES Taxes Other Funds Total Revenues 
EXPENDITURES Debt Service Principal Interest Paying Agent Fees Total Expenditures 
Excess of Revenues over (under) Expenditures FUNDBALANCEJULY1 
FUND BALANCE JUNE 30 
 
I 
~ROPERTY TAXES FOR 
I 
BOND DEBT 
I 
 
SPECIAL PURPOSE LOCAL OPTION SALES TAX 
 
TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 
 
$ 
 
2,633.48 $ 
 
356,320.00 $ 
 
s 358,953.48 
 
347,041.95 
 
127.84 
 
127.84 
 
107.90 
 
s 2,761.32 $ 
 
356,320.00 $ 
 
359,081.32 $ 
 
347 149.85 
 
$ 
 
I 
$ .I 2,040.14 
 
i $ j 2,040.14 $ 
 
I 
 
$ 
 
I 
I 
 
721.18 $ 
 
I 
 
0.00 
 
205,000.00 $ 151,320.00 
356,320.00 $ 0.00 $ 
4 742.06 
 
205,000.00 $ 151,320.00 
2 040.14 
358,360.14 $ 
721.18 $ 
4 742.06 
 
185,000.00 159,182.50 
2 030.78 
346,213.28 
936.57 
3,805.49 
 
I 
 
I $ 
 
721.18 $ 
 
4 742.06 $ 
 
5463.24 $ 
 
4 742.06 
 
See notes to the general-purpose financial statements. 
 
- 27 - 
 
 LINCOLN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "1" 
 
FUNDING AGENCY PROGRAM/GRANT 
 
CFDA NUMBER 
 
PASSTHROUGH 
ENTITY ID 
NUMBER 
 
FEDERAL REVENUE IN PERIOD 
 
EXPENDITURES -IN PERIOD 
 
Agriculture, U. S. Department of 
 
Child Nutrition Cluster 
 
Pass-Through From Georgia Department of Education 
 
Food and Nutrition Program 
 
Food Services School Breakfast Program 
 
... 
 
National School Lunch Program 
 
10.553 10.555 
 
N/A $ 103,403.04 
 
NIA 
 
287,318.44 $ 
 
(2) 601,665.70 (3) 
 
Total Child Nutrition Cluster 
 
$ 390,721.48 $ 
 
601,665.70 
 
Other Programs 
 
Pass-Through From Georgia Department of Education 
 
Food and Nutrition Program 
 
Food Distribution Program (1) 
 
10.550 
 
N/A 
 
Pass-Through From Office of School Readiness 
 
Food and Nutrition Program 
 
Child and Adult Care Food Program 
 
10.558 
 
NIA 
 
29,159.80 3,756.63 
 
29,159.80 (2! 
 
Total U.S. Department of Agriculture 
 
$ 423,637.91 $ 
 
630,825.50 
 
Education. U.S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Capacity Building Improvement Grant Flow Through Preschool 
 
84.173  84.027 
84.173 
 
NIA 
 
$ 
 
3,856.00 $ 
 
N/A 
 
115,714.80 
 
NIA 
 
51,813.00 
 
3,856.00 115,714.80 51,813.00 
 
Total Special Education Cluster 
 
$ 171,383.80 $ 
 
171,383.80 
 
Other Programs Direct Impact Aid Pass-Through From Georgia Department of Education Elementary and Secondary Education Act Title I Grants to Local Educational Agencies Title II Eisenhower Professional Development Title VI Innovative Education Program Strategies Class Size Reduction Goals 2000 State and Local Education Systemic Improvement Gra,nts Safe and Drug-Free Schools and Communities Vocational Education - Basic Grants to States High School Program Basic Grant 
Total U. S. Department of Education 
 
84.041 
84.010 84.281 84.298 84.340 
84.276 84.186 
84.048 
 
48,925.00 
 
(4) 
 
NIA 
 
. 298,214.89 
 
NIA 
 
13,583.05 
 
NIA 
 
13,026.93 
 
NIA 
 
39,529.00 
 
N/A 
 
93,039.00 
 
NIA 
 
6,639.46 
 
N/A 
 
27,918.00 
 
$ 712,259.13 $ 
 
298,214.89 13,583.05 13,026.93 39,529.oo 
93,039.00 6,639.46 
27,918.00 663,334.13 
 
Total Federal Financial Assistance 
N/A = Not Available 
 
- 28- 
 
$ 1,135,897.04 $====1=,2,;;,,94=la'i=15=9,;,;;.6~3 
 
 j 
LINCOLN COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 
YEAR ENDED JUNE 30. 2001 
 
SCHEDULE "1" 
 
Notes to the Schedule of Expenditures of Federal Awards 
 
(1) The amounts shown for the Food Distribution Program r~bresents the Federally assigned value ~f nonmonetary 
 
assistance for donated commodities "received and/or consumed by the system during the current fiscal year. 
 
(2) Expenditures for the Child and Adult Care Food Program !and the School Breakfast Program were not maintained 
 
separately and are included in the 2001 National School [unch Program. 
 
I 
(3) Expenditures for this program include State, and/or Other, Funds. 
 
Expenditures are not maintained by fund source. 
 
i 
 
(4) Funds earned on this program do not require reporting of:expenditures. 
 
I 
Major Programs are identified by an asterisk (') in front of the CFDA number. 
 
. 
 
1 . 
 
The School District did not provide Federal Assistance to any Subrecipient. 
 
 
 
The accompanying schedule of expenditures of Federal awardl includes the Federal grant activity of the 
Lincoln County Board of Education and is presented on the mddified accrual basis of accounting which is 
the bas;, of ac"'""'"' ""' '" the prese"tatlo" of the ''"'"'t""'o" '"'"cial statem'"" 
 
See notes to the general-purpose financial statements. 
 
- 29- 
 
 LINCOLN COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "2" 
 
AGENCY/FUNDING 
 
GOVERNMENTAL FUND TYPES 
 
SPECIAL 
 
CAPITAL 
 
GENERAL 
 
REVENUE 
 
PROJECTS 
 
FUND 
 
FUND 
 
FUND 
 
GRANTS 
 
Education, Georgia Department of 
 
Quality Basic Education 
 
Direct Instructional Cost 
 
Kindergarten Program 
 
$ 281,326.00 
 
$ 
 
Kindergarten Program - Early Intervention Program 
 
27,218.00 
 
Primary Grades (1-3) Program 
 
834,833.00 
 
Primary Grades - Early Intervention (1-3) Program 
 
131,046.00 
 
Upper Elementary Grades (4-5) Program 
 
523,204.00 
 
Middle School (6-8) Program 
 
741,968.00 
 
High School General Education (9-12) Program 
 
885,079.00 
 
Vocational Laboratory (9-12) Program 
 
342,158.00 
 
Students with Disabilities 
 
Category I 
 
18,517.00 
 
Category II 
 
161,743.00 
 
Category Ill 
 
378,082.00 
 
Category IV 
 
95,489.00 
 
Gifted Student - Category VI 
 
32,862.00 
 
Remedial Education Program 
 
33,116.00 
 
Alternative Education Program 
 
70,539.00 
 
Media Center Program 
 
141,752.00 
 
Staff and Professional Development 
 
36,733.00 
 
Indirect Cost 
 
980,432.00 
 
Categorical Grants 
 
Pupil Transportation 
 
Regular 
 
261,960.00 
 
Bus Replacement 
 
77,804.00 
 
Sparsity 
 
39,301.00 
 
Nursing Services 
 
47,442.00 
 
Principal Supplements 
 
6,097.00 
 
Vocational Supervisors 
 
11,453.00 
 
Education Equalization Funding Grant 
 
558,248.00 
 
Food Services 
 
$ 44,684.00 
 
Vocational Education 
 
31,393.00 
 
Other State Programs 
 
At-Risk Summer School Program 
 
1,680.41 
 
Health Insurance 
 
138,112.54 
 
Preschool Handicapped Program 
 
20,585.00 
 
Remedial Summer School 
 
4,118.67 
 
Teachers' Retirement 
 
8,386.54 
 
Lottery Programs 
 
Computers in the Classroom 
 
31,187.00 
 
Georgia State Financing and Investment Commission Reimbursement on Construction Projects 
 
$ 13,186.80 
 
Office of School Readiness Pre-Kindergarten Program 
 
254,692.60 
 
Office of Treasury and Fiscal Services Public School Employees Retirement 
 
28,422.00 
 
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program 
 
19,860.00 22,270.45 
 
TOTAL 
281,326.00 27,218.00 834,833.00 131,046.00 523,204.00 741,968.00 
885,079.00 342,158.00 
18,517.00 161,743.00 378,082.00 95,489.00 32,862.00 33,116.00 70,539.00 141,752.00 36,733.00 980,432.00 
261,960.00 77,804.00 39,301.00 47,442.00 6,097.00 11,453.00 
558,248.00 44,684.00 31,393.00 
1,680.41 138,112.54 20,585.00 
4,118.67 8,386.54 
31,187.00 
13,186.80 
254,692.60 
28,422.00 
19,860.00 22,270.45 
 
$ 6,993,230.61 $ 330,563.60 $ 13,186.80 $ 7,336,981.01 
 
See notes to the general-purpose financial statements. 
 
 30- 
 
 i 
I 
I 
LINCOLN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 
YEAR ENDED JUNE 30, 2001 
 
SCHEDULE "3" 
 
PROJECT 
Retiring in part of previously incurred general obligation debt 
Renovating technology lab at high school 
 
ORIGINA~ ESTIMATED 
. 1 
COST (1) 
 
CURRENT ESTIMATED COSTS (2) 
 
AMOUNT EXPENDED IN CURRENT 
YEAR (3) 
 
AMOUNT EXPENDED 
IN PRIOR YEARS (3) 
 
I 
$ 1,790,035.00 $ 1,790,035.00 $ 
I 
118,863,1 118,863.50 
 
356,320.00 $ 
 
674,012.34 118,863.50 
 
PROJECT STATUS 
Ongoing Completed 
 
Constructing elementary school classroom additions 
 
.616.000r 540,457.61 
 
68,763.61 
 
471,694.00 Completed 
 
Constructing and adding new choral music classroom at Lincoln County High School 
 
136.000T 136,000.00 
 
Ongoing 
 
Constructing and adding band canopy and loading area 
 
70.00~r 
 
70,000.00 
 
Constructing and improving new roof for vocational building 
Renovating and replacing wooden bleachers 
 
132,600.00 
 
. 
 
-I 
 
160,000.00 
 
132,600.00 299,210.53 
 
288,326.53 
 
10,884.00 
 
I 
I $ 3,023,498.50 $ 3,087,166.64 $ 
 
713.410.14 $ 1,275,453.84 
 
L I1( The ~ci,ool District's origioal oost estimate a, specified lo re,ol,tioo o,lliog foe the impooilioo ofthe Loo,I Optioo 
 
Sales Tax. . 
 
. 
 
. . 
 
.I . . 
 
. 
 
Ongoing 
Ongoing Completed 
 
(2) The School District's current estimate of total cost for the projects. Includes all cost from project inception to completion. 
I 
(3) The voters of Lincoln County approved the imposition of a~% sales tax to fund the above projects and retire 
!  associated debt. Amounts expended for these projects m~y include sales tax proceeds, state, local property 
taxes and/or other funds over the life of the projects. 
 
I 
 
See notes to the general-purpose financial statements. 
 
:I 
1 
I 
I . 31 - 
I 
I 
 
 LINCOLN COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY- .BASIC EDUCATION PROGRAM {QBE) 
EARNINGS AND EXPENDITURES S:'f,PROGRAM YEAR ENDED JUNE 30. 2001 
 
SCHEDULE "4" 
 
DESCRIPTION 
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Primary Grades (1-3) Program Primary Grades-Early Intervention (1-3) Program Upper Elementary Grades_ (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Gifted Student  Category VI Remedial Education Program Alternative Education Program 
TOTAL DIRECT INSTRUCTIONAL PROGRAMS 
Media Center Program Staff and Professional Development 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
SALARIES 
 
OPERATIONS 
 
TOTAL 
 
$ 
 
310,522.00 $ 368,659.12 $ 14,607.90 $ 
 
383,267.02 
 
30,043.00 
 
71,002.84 
 
71,002.84 
 
921,471.00 
 
893,771.39 
 
16,082.31 
 
909,853.70 
 
144,646.00 
 
159,075.86 
 
159,075.86 
 
577,501.00 
 
596,986.92 
 
26,544.44 
 
623,531.36 
 
818,969.00 
 
889,147.07 
 
57,619.08 
 
946,766.15 
 
976,932.00 1,187,288.03 
 
79,360.73 
 
1,266,648.76 . 
 
377,667.00 
 
381,737.91 
 
109,115.96 
 
490,853.87 
 
721,684.00 
 
374,413.84 
 
25,242.05 
 
399,655.89 
 
236,664.56 
 
236,664.56 
 
52,393.38 
 
530.88 
 
52,924.26 
 
36,273.00 
 
49,466.44 
 
3,751.25 
 
53,217.69 
 
36,553.00 
 
84,450.91 
 
2,778.00 
 
87,228.91 
 
77,860.00 
 
71,399.79 
 
125.59 
 
71,525.38 
 
$ 
 
5,030,121.00 $ 5,416,458.06 $ 335,758.19 $ 5,752,216.25 
 
156,463.00 40,544.00 
 
131,475.76 60,293.39 
 
55,341.95 27,880.69 
 
186,817.71 88,174.08 
 
TOTAL QBE FORMULA FUNDS 
 
$ 
 
5,227,128.00 .. ~ 5,608,227.21 $ 418,980.83 $ 6,027,208.04 
 
(1) Comprised of State Funds plus Local Five Mill Share. 
 
See notes to the general-purpose financial statements. 
 
 32  
 
 1. 
LINCOLN COUNT BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE) 
EARNINGS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30 2001 
I 
 
SCHEDULE "5" 
 
SITE 
Lincoln County Middle School Lincoln County Elementary School Lincoln County High School CenJral Office (Alternative Education Program) 
 
ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) 
 
ELIGIBLE QBE PROGRAM COSTS 
 
$ 
 
974,506.00 $ 
 
1,098,106.59 
 
2,383,481.00 
 
2,631,317.21 
 
1,594,274.00 
 
1,911,96~.84 
 
77,860.00 
 
110,823.61 
 
TOTAL (1) Comprised of State Funds plus Local Five Mill Share. 
 
$ 
 
5,030,121.00 $ ====5=,7=5=2=,2=1=6.=2=5 
 
See notes to the gene,al-pu,pose financ;a1 statements.I 
' - 33 - 
 
 . I 
i 
SECTION II I 
I 
COMPLIANCE AND INTERNAL CONTROL REPORTS 
 
 t 1ssE1.1. \V. H1r,,Tc)r-. 
STATE AUDITOR (404) 656-2174 
 
DEPARTMENT OF AUDITS AND ACCOUNTS 
 
i""gia 254 Washingt~In Street. S. W. .. Suite :::! I4 
 
Atlaota. 
 
J03'4-K400 
 
Marnh 14, 2002 
 
Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Lincoln County Board of Education 
 
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OFJFINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AlJJDITING STANDARDS 
 
Ladies and Gentlemen: 
 
We have audited the financial statements of Uincoln County Board of Education as of and for the year ended June 30, 2001, and have issued our~eport thereon dated March 14, 2002. This report was 
I 
qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financi~l statements. We condu~ted our audit in accordance with auditing standards generally accepted ih the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the . Comptroller General of the United States. 
 
Compliance 
 
As part of obtaining reasonable assurance alfout whether Lincoln County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations; contrac~s and grants, noncompliance with which could have a direct and material effect on the determination bf financial statement amounts. However, providing an opinion on compliance with those provisioris was not an objective of our audit, and accordingly, we do not express such an opinion. The resultsiof our tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards. 
 
Internal Control Over Financial Reporting 
 
, In planning and performing our audit, we considered Lincoln County Board of Education's internal control over financial reporting in order to d~termine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal 
 
2001 YB-41 
 
I 
 
. 
 
 control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that \we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design.or  operation ofthe internal control over financialjreporting that; in ourjudgment, could adversely affect Lincoln County Board ofEducation's ability to record, process, summarize and report financial data consistent with assertions of management in ,the financial statements. The reportable condition is described in the accompanying Schedule ofFihdings and Questioned Costs as item FS-6901-01-01. 
A material weakness is a condition in which lhe design or operation of one or more of the internal control components does not reduce to a reladvely low level the risk that misstatements in amounts  that would be material in relation to the fina~cial statements being audited may occur and not be detected within a timely period by employee1s in the normal course of performing their assigned functions. Our consideration of the internal cbntrol over financial reporting would not necessarily disclose all matters in the internal control tHat might be reportable conditions and, accordingly, would not necessarily disclose all reportablJ conditions that are also considered to be material weaknesses. However, we consider item FS-6901-01-01 to be a material weakness. 
fo; This report is intended solely the infoJation and use of the m~agement, members of the 
Lincoln County Board of Education, Federal a'warding agencies and pass-through entities and is not intended to be and should not be used by any6ne other than these specified parties. 
Respectfully submitted, 
----- w ~ 
 
RWH:gp 2001 YB-41 
 
State Auditor 
 
 I 
 
ussE1.1. \V. H11',TON 
STATE AUDITOR 1404) 656-2174 
 
DEPARTMENT OF Lt\.UDITS AND ACCOUNTS 
 
ro,g;, 254 Washingthn S1rcet. S.W.. Suite 214 
 
I 
 
At lama, 
 
30334-X400 
 
March 14, 2002 
 
Honorable Roy E. Barnes, Governor  Members of the General Assembly Members of the State Board of Education 
and Superintendent and Members of the Lincoln County Board of Education 
 
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133 
 
Ladies and Gentlemen:_ 
 
Compliance 
 
We have audited the compliance ofLincoln County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to!each ofits major Federal programs for the year ended June 30, 2001. Lincoln County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the ~ccompanying Schedule of Findings and Questioned _Costs. Compliance with the requirements ofjlaws, regulations, contracts and grants applicable to each of its major Federal programs is the re$,ponsibility of Lincoln County Board of Education's management. Our responsibility is to expres~ an opinion on Lincoln County Board of Education's compliance based on our audit. 
 
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards adplicable to financial audits contained in Government Auditing Standards, issued by the Comptrolle~ General of the United States; and 0MB Circular Al 33, Audits of States, Local Governme11ts, ahd Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan abd perform the audit to obtain reasonable assurance about whether noncompliance with the type' s ofI compliance requirements referred to aboye that could have a direct and material_ effect on a major Fe~eral program occurred: An audit includes examining, on a test basis, evidence about the Lincoln <.I:ounty Board of Education's compliance with those requirements and performing such other proce~ures as we considered necessary in the circumstances. We believe that our audit provides a re_asonable basis for our opinion. Our audit does not provide a legal determination on Lincoln County Board[ of Education's compliance with those requirements. 
 
2001SA-10 
 
I 
 
 In our opinion, the Lincoln County Board of1Education complied, in all material respects, with the requirements referred to above that are applic1able to each of its major Federal programs for the year 
ended June 30, 2001. 
 
Internal Control Over Compliance 
 
The management of Lincoln County Boaro of Education is responsible for establishing arid . maintaining effective internal control over :'compliance with requirements of laws, regulations, 
contracts and grants applicable to Federal p~ograms. In planning and performing our audit, we considered Lincoln County Board ofEducatidn's internal control over compliance with requirements that could have a direct and material effect dn a major Federal program in order to determine our auditing procedures for the purpose of expreJsing our opinion on compliance and to test and report 
I 
on internal control over compliance in accordance with 0MB Circular A-133. 
 
Our consideration ofthe internal control over!compliance would not necessariiy disclose all matters 
 
in the internal control that might be material weaknesses. A material weakness is a condition in 
 
"Yhich the design or operation ofone or more 6fthe internal control components does not reduce to a 
 
 relatively low level of risk that noncomplianbe with applicable requirements of laws, regulations, 
 
contracts and grants that would be material in!relation to a major Federal program being audited may 
 
. 
 
I 
 
occur and not be detected within a timely period by employees in the normal course ofperforming 
 
their assigned functions. We noted no matterJ involving the internal control over compliance and its 
 
operation that we consider to be material welknesses. 
 
 
 
This report is intended solely for the infojation and use of the management, members of the 
 
.Lincoln County Board ofEducation, Federal Jwarding agencies and pass-through entities and is not 
 
intended to be and should not be used by an~one other than these specified parties. 
 
'. 
 
Respectfully submitted, 
 
RWH:gp 2001SA-10 
 
 SECTION ill 
I 
AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS 
I 
'! 
 
 I 
LINCOLN COUNTY BOARD OF EDUCATION 
AUDITEE'S RESPONSE 
SUMMARY SCHEDULE OF PRIOR YIEAR FINDINGS AND QUESTIONED COSTS 
I 
YEAR ENDED JUNE 30, 2001 
 
PRIOR YEAR FINANCIAL STATEMENT fINDINGS AND QUESTIONED COSTS 
 
I 
 
FINDING CONTROL NUMBER AND STATUS 
 
I 
 
. 
 
FS-6901-99-01 FS-6901-00-01 
 
Further Action Not Warranted I 
inresolved - See Corr~ctive Action/Responses 
 
CORRECTIVE ACTION/RESPONSES 
 
GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6901Loo-01 
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During Fiscal Year 2002, the school system joined with other members ofCSRA-RESA to I 
employ a fixed assets employee. Her duties include taking an inventory of our current fixed assets and assigning a value td them. She plans to complete an initial inventory as of June 30, 2002,to give us a good beginning inventory for Fiscal Year 2003. Then, she will assist us in maintaining fixed assets additions throughout the year. Once we have a fixed assets inventory and the ability to b6ok it through the accounting program, this finding will be fully corrected. This correction will be in place prior to the end of Fiscal Year 2003. 
 
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SECTION IV 
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FINDINGs AND QUESTIONED COSTS 
 
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LINCOLN COUNTY! BOARD OF EDUCATION 
 
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
 
YEAR ENDED JUNE 30, 2001 
 
I . SUMMARY OF AUDITOR'S RESULTS 
 
I. Type of Report Issued on the Financial slatements The auditor's opinion on the Lincoln d:ounty Board of Education's financial statements was qualified for various departures from generally accepted accounting principles. 
 
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements 
 
The audit report for the Lincoln County Board of Education disclosed a financial statement 
 
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reportable condition related to the following control category. 
 
General Fixed Assets 
 
The reportable condition described aoove is considered to be a material weakness. 
 
3. Noncompliance Material to the Financial,Statements . 
 
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The audit of the Lincoln Countyj Board of Education disclosed no instances of 
 
noncompliance that were deemed to oe material to the financial statements. 
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4. Reportable Conditions in Internal Control Over Major Programs 
 
The audit report for the Lincoln County Board of Education did not disclose any reportable 
 
conditions in internal control over mdjor programs. 
 
5. Type of Report Issued on Co~pliance fol Major Programs The auditor's opinion on the Lincoln dounty Board ofEducation's report on compliance with requirements applicable to major pro~ams was unqualified. 
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6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Lincoln County Board of Educatipn's audit did not disclose audit findings required to be reported by section .510(a) of 0MB <rircular A-133. 
 
7. Major Programs Federal awards audited as major programs are as follows: I 0.553 Food and Nut~t~on Pro~am - Food Sen:'ices - Sc?ool Breakfast Program . I 0.555 Food and Nutnt10n Program - Food Services - National School Lunch Program 
 
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00. 
 
9.  Low Risk Auditee 
 
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The Lincoln County Board of Education qualified as a low risk auditee based on a waiver 
 
granted by the U: S. Department ofEtlucation. 
 
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 LINCOLN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS 
YEAR ENDED JUNE 30, 2001 
 
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS 
 
GENERAL FIXED ASSETS 
 
Failure to Maintain General Fixed Assets Account Group 
 
Reportable Condition - Material Weakness 
 
 
 
Repeated From Prior Year 
 
Finding Control Number: FS-6901-01-01 
 
The Lincoln County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for the maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed records should be maintained of all additions and deletions to the General Fixed Assets Account Group. 
 
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS 
 
No matters were reported. 
 
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