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

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LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

B

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITIJRES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDIDONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITIJRES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

I SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 2 SCHEDULE OF STATE REVENUE 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

2
4
7 8
20
22 24
26 28 29
1_ 30 32 33

LONG COUNTY BOARD OF EDUCATION - TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

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

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

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

SECTION I FINANCIAL

Rt'!'.!'.U.l \\'. HlNlON
STATE AUDITOR (404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
25..\ W,1,l11ngto11 ~t1eet. ~ W \u1le 21-l A1l.tnl,1 (ic111~1.1 l(Ji \-1-X-l(HJ
April 30, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Long County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Long County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility ofthe Long County Board ofEducation's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General ofthe United States. Those standards require that we pfan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. .We believe that our audit provides a reasonable basis for our opm1on.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2001ARL-13

* The general-purpose financial statements of the Board of Education did not contain a
General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included t!) conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position ofthe Long County Board of Education as of June 30, 2001, and the results of its operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated April 30, 2002, on our consideration ofthe Long County Board ofEducation's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements ofthe Long County Board ofEducation taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose
2001ARL-13

financial statements. Such infonnation has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole. A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code of Georgia Annotated Section 506-24.
Respectfully submitted,
RWH:as 2001ARL-13

LONG COUNTY BOARD OF EDUCATION

---- - - ------ ---

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

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Prepaid Items
lnventones Food Donated CommodIt1es Purchased Food
Amount Available m Debt Service Fund
Amount to be Provided m Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 1,208,816 60 $

140,382.13 $

50,671 49

2,184,939 47

33,940 27

357,713.51

136,212.52

49,519 09

7,762.51 8,160.67

Total Assets

$ 31529,968.59 $

239,764 67 $

408,385.00

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Contracts Payable Retamages Payable General Obligation Bonds Payable
Total Llabiht1es
FUND EQUITY
Fund Balances Reserved For Bus Replacement Funds For Continuation of Federal Programs For Debt Service For lnventones Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay ProJects Unreserved Undesignated
Total Fund Equrty

$

32,271.62 $

39,155.06 $

44,81644

2,048.24

137,805.38

1,937.00

25,325.08

103,277 11

6,500.00

$

36,256.86 $

202,285.52 $

154,593 55

$
$ 3,493,711 73 $ 3,493,711.73 $

7,762.51 8,160.67
$
21,555.97 37 479 15 $

200,552.05 53,239 40
0.00
253,791 45

Total L1abiht1es and Fund Equity

$ 3,529,968 59 $

239,764.67 $

408,385.00

The notes to the general-purpose finanaal statements are an integral part of this statement.
-2-
; I
1,

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30, 2001

JUNE 30, 2000

$

391,968.31

s 1,791,838 53 $ 1,122,045 24

30,615.09

2,607,208 34

2,861,081.52

59,158 85

244,890 46

464,893.53

796.00

7,762.51 8,160.67

8,061.46 5,634.85

$

481,742 25

481,742.25

526,885 18

5,563,257.75

5,563,257.75

5,688,114.82

$

481,742.25 $

6,045,000.00 $ 10,704,860.51 $ 10,677,512 60

$

116,243 12 $

222,003.74

139,853.62

96,863.14

27,262.08

9,562.88

103,277.11

31,631.56

6,500.00

102,285 38

$

6,045,000.00

6,045,000.00

6,215,000.00

$

s 6,045,000.00

6,438,135.93 $ 6,677,346.70

$

481,742.25

0.00

$

481,742.25

$

6,042.27

31,704.38

$

481,742.25

526,885.18

7,762.51 8,160 67 200,552.05 53,23940

8,061 46 5,634 85 502,841.76 121,192.25

3,515,267.70

2,797,803 75

$ 4,266,724 58 $ 4,000,165.90

$

48174225 $

6,045,000 00 $ 10,104,860.51 $ 10,677,512.60

- 3-

-- --- ----- ---- -----------------------------------------
LONG 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 AdminIstrat1on School Adm1nrstrat1on Business AdminIstrat1on Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation Community Services Operations
Capital Outlay Debt Service
Pnnc1pal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES {USES}
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated CommodIt1es Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$

8,024,205 18 $

83,933 38

1,691,808.93

274,303 44

$ 10,074,250 93 $

407,381 58 1,296,908 98
131,837 03
1,836,127 59

$

6,293,370 87 $

251,391 01 292,796 34 192,908 55 179,326 00 411,733.94 108,544 27 628,318 14 667,362 86
58,334.56 14500
19,067 98 63,867.09

881,830 31
36,852 54 126,293 87
5,999.22 54,616 08 22,936 58
1,136 24 7,662 70
979 60 883,106 60

$

9,167,16661 $

2,021,41374

$

907,084.32 $

-185,28615

s

$

-8,496 62

$

-8,496 62 $

7,447 46 7 447 46

$

898,587.70 $

2,595,124 03

-177,838 69 213,090 97

-298 95 2,525 82

FUND BALANCE JUNE 30

$

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

3,493,711 73 $ ==-=====3=7=4=79===15=>

EXHIBIT"B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 8,431,586 76 $ 7,428,407 69

1,380,842 36

1,430,267 74

$

428,638 58

2,120,447 51

2,097,187 66

$

255,385 55

12 116 99

673,643 01

685,787.73

$

255,385 55 $

440 755 57 $ 12,606,519 64 $ 11,641,650.82

s

667,708 98

$

$

667 708 98 $

$

-412 323 43 $

$ 7,175,201.18 $ 6,172,833.30

288,243 55 419,090.21 198,907 77 233,942 08 434,670 52 108,544 27 629,454 38 675,025.56
59,314 16 883,251 60
19,067 98 731,576 07

375,526 29 548,411 63 187,870.76 322,314.74 416,870.35 137,034 81 524,751 26 589,924.01
21,956.52 894,167.32
3,027,931.14

170,000 00 313,937.50
1,961.00

170,000 00 313,937.50
1,961.00

145,000 00 319,807 50
689 00

485,898 50 $ 12,342,187 83 $ 13,685,088 63

-45 142 93 $

264,331 81 $ -2,043,437 81

$

1,049 16

$

1 049 16

$

-411,274 27 $

665,065.72

$

8,496 62 $

261,594 26

-8 496 62

-261,594 26

s

0 00 $

000

-45,142.93 $ 526,88518

264,331.81 $ 4,000,165 90

-2,043,437.81 6,042,485 04

-298 95 2,525 82

726.73 391 94

$

253,791 45 $

481,742 25 $ 4,266:724 58 $ 4,000,165.90

-5-

LONG 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"

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Sel'Vlces Pupil Services Improvement of lnstrucltonal Se!'Vlces Educational Media Services General Adm1rnstrat1on School Admin1strat1on Business Administration Maintenance and Operation of Plant Student Transportation Sel'Vlces Other Support SeMces Food Services Operation Community Sel'Vlce Operations
Capital Outlay
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES}
Other Sources Other Uses
Total Other Financing Sources (Uses)
Excess of Revenues and Other F1nanang Sources over (under) Expenditures and Other Financing Uses
FUND BALANQE JULY 1. 2000
AdJustment Food Inventory - Net Change in Penod
Donated Commod1t1es Purchased Food

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 7,554,819 00 $ 8,024,20518

40,00000

83,933 38

1,617,000 00

1,691,808 93

50 000 00

274,30344

$ 9,261,81900 $ 10,074,250 93

$ 6,232,209.00 $ 6,293,370 87

417,61700 340,40600 212,381 00 218,156 00 462,95000 112,069 00 677,70900 645,26800
55,590.00
22600

251,391.01 292,796 34 192,908 55 179,326.00 411,733 94 108,544 27 628,318 14 667,36286
58,334 56 145.00
19,067.98 63,867.09

$ 9,374,581 00 $ 9,167,166 61

$ -112,762 00 $ 907,084 32

$

-8,496 62

$

-8,496 62

$ -112,762 00 $ 898,587 70

2,541,949 00

2,595,124 03

13,018 00

FUND BALANCE JUNE 3Q 2001

$ 21442,205 00 $ 31493?11.73

SPECIAL REVENUE FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$

s 447,686 00

407,381 58

1,646,927 00

1,296,908 98

132,850 00

131,837 03

$ 2,227,463 00 $ 1,836,127 59

$ 935,756.00 $ 881,830 31

28,595 00 204,353 00
6,360 00 59,418 00 26.005 00

36,852.54 126,293 87
5,999.22 54,616 08 22,936 58

1,136 00 21,152 00
1,250 00 821,138 00

1,136 24 7,662.70
97960 883,106 60

$ 2,105,163 00 $ 2,021,413 74

$

122,300 00 $ -185,286 15

$

$

-86,000 00

$

-86,000 00 $

7,447 46 7 447 46

$

36,300 00 $ -177,838 69

191,053 00

213,090 97

-1,263.00

-298 95 2,525 82

$ 226,090 00 $

37 479 15

The notes to the general-purpose finanaal statements are an Integral part of this statement -7-

-------------------- ---- --------

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Long County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable availabl~ financial resources.
General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for reporting the cost of assets acquired by governmental fund types.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-term principal, interest and paying agent fees.
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
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.
-9-

------ --------- ------------------------------

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in Sept~mber 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for.July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid in July and August 2001 was received and recorded as revenue in the fiscal year subsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services compl~ted prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Long County Board ofEducation's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper of general circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.

- 10-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist of cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not r~imbursed and other receivables disclosed from information available. Receivables
- 11 -

---------------------- -----

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.

PROPERTY TAXES

The Long County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on December 1, 2000 (levy date). Taxes were due on February 1, 2001 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Long County Tax Commissioner bills and collects the property taxes for the School District and remits the balance of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $1,677,785.03 and for school bonds amounted to $117,972.85.

Tax millage rates levied for the 2000 tax year (calendar year) for the Long County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations School Bonds

14.70 mills 1.00 mills

~mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $310,665.73 and was recorded in the Debt Service Fund. The State will terminate collection ofthis tax once an additional $802,086.83 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 Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities are recorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time ofpurchase. The inventories reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which indicates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets.

- 12 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. General obligation bonds are direct obligations and pledge the full faith and credit ofthe government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee of insurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent 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:

- 13 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.
CATEGORIZATION OF DEPOSITS At June 30, 2001, the bank balances were $2,592,321.73. 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 School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)
The School District's deposits are classified by risk category at June 30, 2001, as follows:

- 14 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 200 I

Note 2: DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

I

$ 492,955.50

2

2,099,366.23

3

0.00

Total

$ 2,592,321.73

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $2,607,208.34 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

The Primary Liquidity Portfolio consists of Georgia Fund 1, which is a combination local and state government investment pool, and Fund 6. Georgia Fund 1 is a stable net asset value investment pool which follows Standard and Poor's criteria for AAAm rated money market funds. The pool is not registered with the SEC as an investment company but does operate Georgia Fund 1 in a manner consistent with Rule 2a-7 ofthe Investment Company Act of 1940 and is considered to be a Rule 2a7 like pool. The pool's primary objectives are safety of capital, investment income, liquidity and diversification while maintaining principal ($1.00 per share value). Net asset value is calculated weekly to ensure stability. The pool distributes earnings (net of management fees) on a monthly basis and values participant's shares sold and redeemed based on $1.00 per share. Pooled cash and cash equivalents and investments are reported at cost which approximates fair value. The pool does not issue any legally binding guarantees to support the value ofthe shares. Participation in the pool is voluntary and deposits consist of funds from local governments; operating and trust funds of Georgia's state agencies, colleges and universities; and current operating funds of the State of Georgia's General Fund.

Investments in Georgia Fund I 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.

- 15 -

-------------- -

-- - - - - - - - -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

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

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

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

2000 2001

Beginnmg of Year Ltab1hty

Claims and Changes m Estimates

$

0.00 $

6,036.33 $

$

0.00 $

525.00 $

Claims Paid

End ofYear L1ab1hty

s 6,036.33

0.00

525.00 $

0.00

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December I, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per occurrence, up to $2,000,000.00.

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

- 16 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 4: RISK MANAGEMENT

Position Covered

Amount

Superintendent All Employees

$ 20,000.00 $ 20,000.00

Note 5: OPERATING LEASES

Long County Board of Education has entered into various leases as lessee for copiers. These leases are considered for accounting purposes to be operating leases. Lease expenditures for the year ended June 30, 2001, amounted to $100,851.16. Future minimum lease payments for these leases are as follows:

Year Ending

Amount

2002 2003 2004 2005

$ 100,512.36 94,432.20 84,208.11 2,592.00

Total

$ 281,744.67

Note 6: GENERAL LONG-TERM DEBT

GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follows:

Purpose

Interest Rates

Amount

General Government - Series 1993 General Government - Series 1997

3.00% - 5.50% 4.00% - 5.25%

$ 2,095,000.00 3,950,000.00

$ 6,045,000.00

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

- 17 -

---- - - --------------- --------- ----

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 6: GENERAL LONG-TERM DEBT

General Obligation
Bonds

Balance July I, 2000

$ 6,215,000.00

Deductions Debt Retired

170,000.00

Balance June 30, 2001

$ 6,045,000.00

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

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016 2017-2018

$ 496,840.00 508,717.50 519,527.50 529,167.50 542,597.50
2,745,557.50 2,825,405.00
1. 171,362.50

Total Principal and Interest Note 7: ON-BEHALF PAYMENTS

$ 9,339,175.00

The School District has recognized revenues and expenditures in the amount of $125,189.85 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 $92,616.65

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $2,006.20

- 18 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE 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 Retirement (PSERS) Employer's Cost In the amount of $30,567.00

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 under grant terms. The School District believes that such disallowances, if any, will be immaterial to its 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 System of Georgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

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

$ 639,093.35 $ 581,463.08 $ 579,890.52

- 19 -

LONG 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

$

37,982.03 $

50,238.49

33,940.27

2,423.09

7,762.51 8 160.67

Total Assets
LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable
Total L1abiht1es
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Inventories Food Donated Commodities Purchased Food Unreserved Undes1gnated
Total Fund Equity

$

90,268.57 $ ===5=0=,2=3=8=.4=9

$

9,974.90 $

11,134.43

42,814.52

39,104.06

$

52,789 42 $

50,238.49

$

7,762 51

8,16067

21,555.97 $

0.00

$

37 479.15 $

0.00

Total Liabilities and Fund Equity See notes to the general-purpose financial statements.
- 20-

$

90,268.57 $ ===5=0=,2=3=8=4=9

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$

52,161 61 $

140,382.13 $

129,925 46

33,940.27

154,345.62

47,096.00

49,519.09

107,669 45

7,762 51 8 160.67

8,061 46 5 634 85

$

99,257.61 $

239,764 67 $ ===40=5=,6=3=6=.8=4

$

17,720 11

$

18,045 73 $

39,155.06

74,689.74

55,886 80

137,805.38

96,863.14

25,325.08

25,325.08

3,272.88

$

99,257.61 $

202,285 52 $

192,545.87

$

31,704.38

$

7,762.51

8,160.67

8,061.46 5,634.85

$

0.00

21,555.97

167,690.28

$

0 00 $

37 479.15 $

213,090.97

$

99,257 61 $

239,764 67 $===40=5=,6=3=6=8=4

- 21 -

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SREC~LREVENUEFUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Adm1mstrat1on School Administration Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements.
- 22-

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

53,182.00 $

354,199.58

551,092.06

131,837 03

$

736,111.09 $

354,199.58

$

313,012.56

26,357.88

21,140.36 1,136.24

$

882,245.40

$

882,245 40 $

$

-146,134.31 $

361 647.04 -7,447.46

$

-146,134.31 $

181,386.59

-298.95 2,525.82

7 447 46
0.00 0.00

$

37 479.15 $ ========::0::.0i:0=

EXHIBIT "F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 301 2001

JUNE 30, 2000

$

407,381.58 $

400,188.83

$

745,816 92

1,296,908.98

1,378,705.87

131,837.03

121,251 63

$

745,816.92 $ 1,836,127.59 $ 1,900,146 33

$

568,817.75 $

881,830.31 $

844,951 05

10,494.66 126,293.87
5,999.22 54,616.08
1,796.22
7,662.70 979.60 861.20

36,852.54 126,293.87
5,999.22 54,616.08 22,936.58
1,136 24 7,662.70
979.60 883,106.60

35,344.84 248,343.31
5,626.49 52,101.27 21,519.76
3,225.00 8,395.32
894,095 32

$

777,521.30 $ 2,021,413.74 $ 2,113,602.36

$

-31,704.38 $

-185,286 15 $

-213,456.03

7 447 46

11,594.26

$

-31,704 38 $

-177,838.69 $

-201,861.77

31,704.38

213,090 97

413,834 07

-298.95 2,525 82

726.73 391.94

$

0 00 $

37 479 15 $ ==-=2=13=,0=90=.9=7

- 23 -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ---- ---
LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30, 2001

ASSETS Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Contracts Payable Retainages Payable
Total Llab1ht1es FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undes1gnated Total Fund Equity
Total L1ab1ht1es and Fund Equity

REGULAR

BOND PROCEEDS

$

0 00 $

200,552 05

$

0 00 $ ===20=0==,5=5=2=.0=5

$

200,552.05

$ _ _ _ ____=.;o:.;::.o,;;.o

000

$

0.00 $ _ _..;;;;2.;;;.;00;;.,5;;;.;5=2=.0-"'-5

$

0.00 $-======2=00==,5=5=2=.0=5

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

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

$

0.00

$

LOTTERY PROJECT

TOTALS

JUNE 30, 2001

JUNE 301 2000

$

200,552 05 $

543,873 47

35771351

357 713.51

559,42614

$

0.00 $

35771351 $

558,265.56 $ 1,103,299 61

$

149,880.56 $

149,880.56 $

184,699.24

44,816 44

44,816.44

119,617.71

103,277.11

103,277.11

31,631.56

6,500.00

6,500 00

102,285.38

$

304 474.11 $

304 474.11 $

438,233.89

$
$ _ _ _ _ _o_.o_o

$

0 00 S

$ 53,239.40
000
53,239 40 $

200,552.05 $ 53,239.40

502,841.76 121,192.25

0.00

41 031.71

253,79145 $ _ _..;;.66-'5"'-,0-'6=5""-.7=-2

$

0 00 $

35771351 $

558,265.56 $

1,103,299.61

- 25 -

- - - - - - ---------------- -- -
LONG 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 Other Funds Total Revenues
EXPENDITURES Capital Outlay Land and Land Improvements Building and Building Improvements Total Expenditures
Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses) Excess of Revenues and Other Financing Sources
over (under) Expenditures and Other Financing Uses FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

0.00 $

1 153 17

$

0 00 $

1 153 17

$

0.00 $

0.00

$

0 00 $

0 00

$

0.00 $

1 153 17

$

-41 031.71 $

-303,442.88

$

-41 031.71 $

-303,442.88

$

-41,031.71 $

-302,289.71

41 031 71

502,841.76

$

0.00 $ ===20=0=,5=5=2=.0=5

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

EXHIBIT"H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

LOTTERY PROJECT

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

132,903.80

$

410 41 $

253,821.97 $ _ _=2=55;.i.,3..a8=5.;..:;.5..;;...5

87,649.08

$

410.41 $

253,821 97 $

255,385.55 $ _ _=22=0""",5'""'5=2.;..:;.8..;;...8

$

33,217.30

$

42 491.28 $

625,217.70 $ ---=-66;:;..;7-'-',7""'0-=-8=.9.;;..8

2,967,595 71

$

42,491.28 $

625,217.70 $

667,708.98 $ 3,000,813 01

$

-42 080 87 $

-371,395 73 $

-412,323.43 $ -2,780,260 13

$

42,080 87 $

303,442.88 $

345,523.75 $ 2,311,968.29

-344 474.59

-2,061,968.29

$

42,080.87 $

303,442.88 $

1 049.16 $

250,000 00

$

0.00 $

-67,952.85 $

-411,274.27 $ -2,530,260.13

0 00

121,192.25

665,065.72

3,195,325.85

$

000 $

53,239.40 $

253,791 45 $

665,065.72

- 27 -

- - - - - - - - - - - - - - --- - - ---- - -- ------- ----------- ---
LONG 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

$ 36,833 59 $

355,134 72 $ 391,968 31 $ 385,648 73

30,615.09

30,615 09

86,423 46

7 677 10

51 481 75

59,158.85

54,812 99

Total Assets

$ 75,12578 $

406,616 47 $ 481,742 25 $ 526,88518

FUND EQUITY
Fund Balances Reserved For Debt Service Unreserved Undes1gnated

$ 75,125.78 $ 000

406,616 47 $ 0.00

481,742 25 $ 0.00

526,88518 0 00

Total Fund Equity

$ 75,12578 $

406 616 47 $ 481,742.25 $ 526,885.18

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

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "J"

COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

YEAR ENDED JUNE 30. 2001

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30. 2000

REVENUES

Taxes Other Funds

$ 117.97285 $ 5,827 66

310,665 73 $ 6 289 33

428.638 58 $ 12 116 99

445,409 54 13,250 94

Total Revenues

$ 123,800.51 $

316,955 06 $ 440 755.57 $ 458,660 48

EXPENDITURES

Debt Service Principal Interest Paying Agent Fees

$

85,000 00 $

111,365 00

68900

85,000.00 $ 202.572 50
127200

170,000 00 $ 313,937.50
1 961 00

145,000.00 319,807.50
689 00

Total Expenditures

$ 197,054.00 $

288,844 50 $ 485,898 50 $ 465 496 50

Excess of Revenues over (under) Expenditures $

-73,253 49 $

28.110 56 $ -45,142 93 $

-6,836 02

FUND BALANCE JULY 1

148,379.27

378,505 91

526,885 18

533,721.20

FUND BALANCE JUNE 30

$

75 125 78 $

406 616 47 $ 481,742 25 $ 526,885 18

See notes to the general-purpose financial statements

- 29 -

----------- ------ ----------
LONG 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 Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnt1on Program Food Services School Breakfast Program Nabonal School Lunch Program

. 10 553 . 10 555

NIA $ 120,756 20

NIA

394,207 37 $

(2) 846,116 91 (3)

Total Child Nutnlton Cluster

$ 514,963.57 $

846,116.91

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutnlton Program

Food DIstnbut1on Program (1)

10 550

NIA

36.128 49

36,128 49

Total U S Department of Agnculture

$ 551,092 06 $

882,245.40

Education, U S. Department of Special Education Cluster Pass-Through From Georgia Department of Education lnd1v1duals with D1sab1hltes Education Act Part B - Special Education Capacity Building Improvement Flow Through Preschool

84173 84 027 84.173

NIA $

2,240 00 $

NIA

122,594.02

N/A

8,873 00

2,240 00 122,594.02
8,873 00

Total Special Education Cluster

$ 133,707.02 $

133,707.02

Other Programs

Direct

Impact Aid

84.041

Pass-Through From Georgia Department of Educatton

Comprehensive School Reform Demonstration ProJect 84.332

NIA

Elementary and Secondary Education Act

Tltlel

Grants to Local Educational Agencies

84 010

NIA

Tltlell

Eisenhower Professional Development

84 281

NIA

Tille Ill

Technology Literacy Challenge Fund Grar:ts

84 318

N/A

TltleVI

Innovative Education Program Strategies

84 298

NIA

Class Size Reduction

84 340

NIA

Vocational Education - Basic Grants to States

High School Program

Basic Grant

84 048

NIA

Pass-Through From First D1stnct Regional Educational

Service Agency

d/b/a Live Oak Migrant Education Agency

Elementary and Secondary Education Act

Title I Migrant Education

84 011

NIA

62,594 66 71,148 00
363,523.20 16,000 00
11,62511 51,19800
38,701 00

(4) 71,148.00
363,523.20 20,677.28 27,02710 11,625.11 51,19800
38,701.00

59,914 59

59,914 59

Total U S Department of Education

$ 808,411 58 $

777.521 30

- 30-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Defense, U S Department of Direct Troops to Teachers

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

12 999

$ 21,338 72

(4)

Total Federal Financ,al Assistance
NIA = Not Available

$ 1,380,842 36 $ ===1,=65=9=,7=6=6=70=

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food D1stnbut1on Program represents the Federally assigned value of nonmonetary assistance for donated commod11ies received and/or consumed by the system dunng the current fiscal year
(2) Expendrtures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program
(3) Expenditures for this program Include State, and/or Other Funds Expenditures are not maintained by fund source
(4) Funds earned on this program do not require reporting of expenditures

Maior Programs are 1dent1fied by an astensk (*) in front of the CFDA number

The School D1stnct did not provide Federal Assistance to any Subrec,p1ent

The accompanying schedule of expenditures of Federal awards Includes the Federal grant act1v1ty of the Long County Board of Education and 1s presented on the modified accrual basis of accounting which Is the basis of accounting used in the presentation of the general-purpose financ,al statements

See notes to the general-purpose financ,al statements

- 31 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students wrth D1sab111t1es Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Educallon Program Altemallve Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Pnnc1pal Supplements Vocational Supervisors Migrant Educabon Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Pay for Performance Preschool Handicapped Program Remedial Summer School Special Education Low Incidence Grant Statewide Local Education Improvement Teachers' Retirement Lottery Programs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge Reading First Program

See notes to the general-purpose financial statements

- 32 -

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

477,033 00

37,517 00

1,168,409 00

81,306 00

504,348 00

943,972 00

647,720 00

224,676 00

20,544 00 61,556 00 337,315 00 40,308 00 14,941 00 77,515 00 154,221 00 64,659 00 50,858 00 165,513 00 48,155 00 1,081,438 00

$ 477,033 00 37,51700
1,168,409 00 81,306 00
504,348 00 943,972 00 647,720 00 224,676 00
20,544 00 61,556 00 337,315 00 40,308 00 14,941 00 77,515 00 154,221 00 64,659 00 50,858 00 165,513 00 48,155 00 1,081,438 00

282,797 00 89,375 00 36,383 00 55,344 00 7,812 00 9,955 00 16,412 00
860,286 00 $
10,19300

53,182 00

4,603 62 92,616 65 82,000 00 26,467 00
2,878 71 29,638 00 26,315 00
2,006 20

38,568 00

282,797 00 89,375 00 36,383 00 55,344 00 7,812 00 9,955 00 16,412 00
860,286 00 53,182 00 10,193 00
4,603 62 92,616 65 82,000 00 26,467 00
2,878 71 29,638 00 26,315 00
2,006 20
38,568 00

315,631 58

315,631 58

30,567 00

30,567 00

128,360 00 28 192 00

128,360 00 2B, 192 00

s $ 81024,205 18 $ 407 381 58

8 431,586 76

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

SCHEDULE "3"

PROJECT
Construction of a new Long County Elementary School

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR YEAR (3)

PROJECT STATUS

$ 7,044,038 00 $ 7,304,637 35 $ 827,790 20 $ 6,476,847 15 Ongoing

(1) The School D1stnct's ongmal cost estimate as specified m the resolution calhng for the ImposItIon of the Local Option Sales Tax
(2) The School D1stnct's current estimate of total cost for the pro1ect Includes all cost from pro1ect inception to completion
(3) The voters of Long County approved the 1mposItIon of a 1% sales tax to fund the above proiect and retire associated debt Amounts expended for the pro1ect may include sales tax proceeds, state, local property taxes and/or other funds over the hfe of the proiect

See notes to the general-purpose financial statements

- 33-

- - - - - - - - - - - - - - - - - - ----- - - - - - - - - -
LONG COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2001

SCHEDULE "4"

DESCRIPTION
Direct Instructional Programs Kindergarten Program Kindergarten Program-Early Intervention Program Pnmary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with D1sab1ht1es Category I Category II Category Ill Category IV Category V Gifted Student - Category VI Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL)
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

516,074 00 $ 534,802 09 $

10,540 91 $

545,343 00

40,588.00

56,977 36

108 00

57,085 36

1,264,034 00 1,114,458 57

35,613 32

1,150,071 89

87,960 00

77,290 85

4,515 87

81,806 72

545,625 00

521,879 40

14,12670

536,006 10

1,021,228 00 1,007,542 20

52,532 93

1,060,075.13

700,731.00

705,641 18

54,072 56

759,713.74

243,064.00

283,955 76

69,062.17

353,017 93

513,511.00

64,865 44

416 61

65,282 05

164,766 90

1,168.61

165,935.51

426,147 05

52,490 20

478,637.25

28,473 99

847 50

29,321 49

75 00

75 00

83,859.00

79,250 01

390.26

79,640.27

166,843 00

144,456 90

5,723 61

150,180.51

69,951.00

64,158 68

50000

64,658 68

55,021 00

53,590 59

1,365 46

54,956 05

$

5,308,489 00 $ 5,328,331 97 $ 303,474 71 $ 5,631,806.68

179,059.00 52,095.00

151,790 95 19,229.88

41,117 60 33,236 99

192,908.55 52,466.87

TOTAL QBE FORMULA FUNDS

s

5,539,643.00 $ 5,499,352 80 $ 377,829.30 $ 5,877,182 10

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

See notes to the general-purpose finane1al statements

- 34 -

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

SCHEDULE "5"

SITE Smiley Elementary School Long County School Central Office (Alternative Education Program)
TOTAL
(1) Compnsed of State Funds plus Local Five Mill Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,101,015.00 $

2,162,399.71

3,137,523.00

3,469,406.97

69,951 00

$

5,308,489.00 $ =====5=,6=31=,8=0=6=.6=8

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

Ru-;s1.u \\'. H,..,,oN
STATE AUDITOR (404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS

w 2:'i-1 W.i~lllll)}IOJl ~111:i:1. ~

"llllL' 21

Al l.1111.1. Gi:01 ~I.I 1{H>-1-X.1()()

April30,2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Long County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofLong County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated April 30, 2002. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether Long County Board ofEducation's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Long County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2001YB-41

control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Long County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings ~d Questioned Costs as item FS-6911-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6911-01-01 to be a material weakness.
This report is intended solely for the information and use of management, members of the Long County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

RWH:as 2001YB-41

State Auditor

Rll!-.SLI I \\'. Ht"l'IO'
STATE AUDITOR (404) 656 2174

DEPARTMENT OF AUDITS AND ACCOUNTS
::!'i-t WJ~li111gto11 ~IIL:L:t. S \\I. '-iu1IL: ::! 1-t Al l.1111.1 Cico1 g Id m:n-t->--t{)()
April 30, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Long 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 of Long County Board ofEducation with the types of compliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Complzance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Long County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Long County Board of Education's management. Our responsibility is to express an opinion on Long 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 applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Long County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on Long County Board of Education's compliance with those requirements.
2001SA-10

In our opinion, the Long County Board of Education complied, in all material respects, with the requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Long County Board ofEducation is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered Long County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation of one or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of management, members of the Long County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
RWH:as 2001SA-10

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

LONG COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2001

PRJOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6911-99-01 FS-6911-00-01

Further Action Not Warranted Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6911-00-01

The Long County Board ofEducation has determined that it is not economically feasible at this time to maintain a separate General Fixed Assets Account Group from the primary accounting systems provided by the Department of Education. Although the School District realizes the significant role the General Fixed Assets Account Group has on the financial statements, it has decided not to take any action at this time. The School District hopes that this issue will be addressed in the accounting system updates issued by the Department of Education.

SECTION IV FINDINGS AND QUESTIONED COSTS

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2001
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the Long County Board of Education's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Long County Board of Education disclosed a financial statement reportable condition related to the following control category.
General Fixed Assets
The reportable condition described above is considered to be a material weakness.
3. Noncompliance Material to the Financial Statements The audit ofthe Long County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Long County Board of Education did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Long County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .51 0{a) of 0MB Circular A-133 The Long County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The Long County Board of Education qualified as a low risk auditee based on a waiver granted by the U.S. Department of Education.
- 1-

-------------------- -------- --
LONG 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-6911-01-01 The Long County Board of Education (School District) did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required by generally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory ofland, 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 n;iaintained of all additions and deletions to the General Fixed Assets Account Group. III FEDERAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported.
-2 -