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

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STATE'.OF GEORGIA--.

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LO. NGCOUNTY

BOARD

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EDUC.ATION

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FOR THE FISCAL YEAR ENDED JUNE 30, 2002



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LONG COUl',TY BOARD or [DUCATION
- I ABLE OF CONTl:N rs -

SECTIO"< I

FINANCIAL

INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INfORMATION SCHEDULE OF EXP[NDITUR[S OF FEDERAL AWARDS

EXHIBITS

GENERAL-PURPOSE flNANCIAL STATEMENTS

COMBINED STATEMENTS -OV[RVIE:.W

A

COMBINED BALANCI: SIIEET

ALL FUND TYPES AND ACCOUN I GROUP

2

B

COMBINED STA I EMENT 0~ REVENUES. EXPENDll lJRES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUE'>, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE fUNDS

7

D NOTES ro THE GENERAL-PURPOSE FINANCIAi STATEMENTS

8

ADDITIONAL FINANCIAL INFORM ATI01'

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING Sl ATEMENT or REVENUES, EXPEl',DITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

II

COMBINING STATEMENT OF RFVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

25

DEBT SERVICE FUND

I

COMBINING BALANCE SHEfT

26

J

COMBINING STATEMENT OF REVENUES. EXPENDITURES

AND CHANGES IN ~ UNO BALANCES

27

SCHfDULES

SCHEDULE OF EXPENDITURES 01 FFDERAL AWARDS

28

2 SCHEDULE OF SI ATE REVENUE

30

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

33

LONG COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS -

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

AI.LOTMEN rs AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

DY PROGRAM

5

RY SITE

Page
34 35

SECTION II
COMPLIANCE AND INTERNAL CONTROL REPORTS
REPORT ON COMPLIANCE AND ON INTERNAL CON rROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STA1 EMENTS PERFORMED IN
ACCORDANC[ WITH GOVERNMENT AUDITING STANDARDS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INT~.RNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133

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

S[CTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS A1'.D QUl:.STIONFD COSTS

Sf.CTJON I FINANCIAL

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STATi: AUOITOn

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DEPARTMENT OF AUDITS AND ACCOUNTS
2'i4 w.i.,..hrngton !->trcc1. ~ W ~1111c 2 ll Atl.rntJ, Gcorg1J 30.314-MOO
July 18, 2003

Honorable Sonny Perdue. Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the Long County Board of Education
INDEPI:NDEN"I AUDI !"OR'S COMBINED REPORT ON GENERAL-PURPOSE l'INANCIAL STATEMENTS AND SUPPLEMENTARY INrORMATION SCI IEDULE OF EXPENDITURES OF FCDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanying general-purpose financial statements of the Long County Board of Education, as of and for the year ended June 30, 2002. as hsted in the table of contents The,e general-purpose financial statements are the respons1b1hty of the Long County Board off.ducal!on's management Our respons1b1hty 1, to express an opinion on the,e general-purpose financial statements ba,ed on our audit
We conducted our audit m accordance with auditing standards generally accepted in the Umted States of Amenca and the ,tandards applicable to financml audits contained in Government Audning Standards, issued by the Comptroller General of the Umted States Those ,tandards require that we plan and perform the audit to obtain reasonable a,,urance about whether the financial statemenl!> arc free of material m1tatemcnt An audit includes examining. on a test ba,1s, evidence supponing the amounts and disclosures m the financial statements An audit abo include, as,essing the accounting pnnc1ples used and s1gmficant estimate, made by management, as well as evaluating the overall financial statc:ment pre~ntat10n We beheve that our audit provides a rea,onable basis for our op1mon
A, descnbcd m the notes to the general-purpose financial ,tatements, the Board of Education's financial statement, have heen prepared using cenam accounting practice, and pohc1cs which. m our opm1on, vary in some respects from generally accepted accounting principle, These variance, are described a, follows

2002ARL-l3

The general-purpose financial statement~ of the Board of Education did not contain a General Fixed Assets Account Group to account for property and eqmpment owned by the Board ol Education which should be included to conform to generally accepted accounting principles
School activity accounts maintained at the ind1v1dual schools are not included in the general-purpose financial statements To conform to generally accepted accounting pnnc1ples. these accounts should be included in the general-purpose financial statement\
The Board of Education did not recognw: as expenditures, in the year ended June 30, 2002, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2002 Also funds received, subsequent to June 30, 2002, from the Georgia Department of Education for the State's share of these unrecorded 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 pnor to June 30. 200 I, were improperly recorded in the year ended June 30. 2002 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 vananccs or om1ss1ons have not been determined, but are believed to be material
In our opinion, e'\cept 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 posltmn ofthe Long County Board of Education as of June 30, 2002, and the results of its operatmns for the year then ended. in conformity with accounting pnnc1ple~ generally accepted in the United States of Arnenca
In accordance with Government Auditing Standards. we have also issued our report dated July 18. 2003, on our cons1derallon of the Long County Board of Educatmn's internal control over financial reporting and our tests of Its compliance with certain provismns oflaw~. regulations, contracts and grants That report 1s an integral part of an audit performed in accordance with Government Audnmg Standards and should be read in conJuncuon with this report in cons1denng the results of our audit
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Long County Board ofEducatmn taken as a whole rhe accompanying combining statements (Exh1b1ts E through J) and the financial schedules (Schedules 1 through 5). which includes the Schedule of Expenditures of Federal Awards as reqmrcd by U S Office of Management
and Budget Circular A-133. Audlls ofStates, Local Government~. and Non-Profil Orgam=a/zons, are
presented for purpo:,es of add1t1onal analysis and are not a reqmred part of the general-purpose
2002ARL-13

financial statements Such mformat10n has been subjected to the aud1tmg procedures applied m the audtt of the general-purpose financial statements and m our op1mon, except for the effects of the matters referred tom the third paragraph, such mformat10n 1s fairly stated, mall matenal respects, m relation to the general-purpose financial statements taken as a whole

A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made

available to the press ofthe State, as provided for by Official Code ofGcorg1aAnnotated Section 50-

6-24

Respectfully submttted,
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Hmton State Auditor

RWHa~ 2002ARL-13

I ONG COUNTY RO ARD OF EDUCATION

LONG COUNTY BOARD OF EDUCATION
COMBINED BALANCE SHEET ALL FUND JYPES AND ACCOUNT GROUP
JUNE 30 2002

Cash end Cash Equrvalents Investments .Accounts Receivable lnverrtones
Food Donated Commodrues Purchased Food
Amount Available m Debt Service Fund
Amount to be Provtded in Future Years For Payment of Bond Debt
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

s

1 634 579 1~ $

s 197 501 81

200 552 05

2 053 056 76

34 769 61

11496530

69,516 31

13 725 68 6 718 98

s

380260122 S

322 232 59 S _ _.:;200::::,;5::,5::;2.:;0:::,5

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanea Payable Expired Grant Balances Peyable Contracts Paya~ Deferred Revenue Retatnages Payable General Obl,gat,on Bonds Payable
Total Liab11i11es
FUND EQUITY
Fund Balances Reserved ForDebtSeMce For lnventones Food Donated Comrnodtbes Purchased Food For Purpose of Bond lasue For State Ceprtel Outlay Protects Unreserved Undesagnated
Total Fund Equity
Total L1abcl1hes and Fund Equrty

s

6 879 00 s

37 042 62

4,337 50

150 432 46

58 453 89

s

11 216 50 s

245 928 97

s

s

3 791 364 72

s

s 3 791 384 72

13 725 68 6 718 98
s
55 858 96
76 303 62 s

200 552 05
0 00 200 552 05

$

s 3 6021601 22

322,232 59 s

200 552 05

The notu to the general-purpoe,e finanoal. t.ta'.ementa a~ en integral pert of thia statement -2

EXHIBIT "A"

DEBT SERVICE
FUND

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Only)

JUNE 30 2002

JUNE 30 2001

s

485,875 09

s 251850809 S 1 791,838 53

15,785 16

210361175

2 607 208 34

68181 12

252 662 73

244 890 46

s

569 841 37

5 285 158 63

13 725 68 6 718 BB 569 841 37
5 285 158 63

7 762 51 8 160 67 481 742 25
5 563 257 75

s

569 841 37 S

5 855 000 00 S 10 750 227 23 S 10 704 860 51

s

43 921 62 s

116 243 12

154 769 96

139 e53 62

27 262 08

103 277 11

58 453 89

s

5 855 000 00

5 855 000 00

6 500 00 6 045 000 00

s

5 855 000 00 s 6 112 145 47 s 6 438 135 93

s

569 841 37

0 00

s

569 841 37

s

569 841 37 s

481 742 25

13 725 68 67"1898 200 552 05

7 762 51 8 160 67 200 552 05 53 239 40

3 847 243 68

3 515 267 70

s

4 638 081 76 $

4 266 724 58

s

569 841 37 S

5 855 000 00 S 10 750 227 23 S 10 704 860 51

-3-

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

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil ServlC8s Improvement of lnstruchonel SeMCeS Educaltonal Mec:ha Services General Admm1stretion Sdloot Adm1mstrahon Busmess Adm1mstrallon Mamtenance and Operation of Plant Student TransportabOn Servk;es Other Support Serv,ces Food SeMces Operatt0n Community Servrces OperabOns
Capital Outlay
Debt Service
Pnncipal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES /USES!
Operating Transfers In Operating Transfers Out
Total Other Fmancmg Sources (Uses)
Excess of Revenues and Other Fmanong Sources over (under) Expenchtures and Other F1nanctng Uses
FUND BALANCE JULY 1
Food Inventory. Net Change m Penod Donated Commochtes Purchase<l Food

GENERAL FUND

SPECIAL REVENUE
FUND

$

8 390,593 81 $

16841855

1,573 044 32

198 742 19

$ 10,330 798 87 $

445 942 60 1 664 719 33
13895918
2 24962111

$

6,174,170 48 $

1,157,369 53

259,097 57 354 477 45 183,623 96 181,921 29 451,344 46
96 502 81 1,327,90341
657,424 88 85,802 47
60,81555

47,582 44 122 359 54
8 138 80 49,360 14 28 604 43
904 26 4,649 46 6,835 62
892 14 790 264 78

$

s 9 833 084 33

2 216 981 14

$

497 714 54 $

32 639 97

$

$

-200 041 55

$

-200 041 55 $

s

s 297 672 99

3 493,711 73

1,663 02
1 663 02
34 302 99 3747915
5 963 17 -1 441 69

FUND BALANCE JUNE 30

$

The notes to the general-purpose financial statements are an antegral part of ths statement -4 -

s _ _ _ _ 379138472

1s.3_0_3_s_2

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30 2002

JUNE 30 2001

s

8,836,536 41 $

8 431,586 76

1,833137 88

1 380,842 36

s

548,802 68

2 121 847 00

2 120,447 51

s

3 330 66

3 789 09

344 821 12

673 643 01

s

3 33066 $

552 591 77 $ 13 136 342 41 $ 12 606 519 64

$

218 778 37

$

$

s 218 778 37

$

-215 447 71 $

s

7,331 540 01 $

7,175 20118

306,680 01 476 836 99 191 762 76 231,30143 479 948 89
97 407 07 1,332 552 87
664 260 50 86 694 61
790 264 78 60 815 55
218,778 37

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

190 000 00 306643 65
4 019 22
s 500662 87

190,000 00 306 643 65
4,019 22
12,769 506 71 $

170 000 00 31393750
1 961 00
12,342,187 83

51 928 90 $

366 835 70 $

264 331 81

$

162 208 31 s

$

162 208 31 $

36 170 22 s
36170 22 $

200 041 55 s
-200 041 55
000 $

8 49662 -8 496 62
000

$

-53 239 40 $

88 099 12 s

366,835 70 s

264 331 81

253 791 45

481,742 25

4 266 724 58

4 000, 165 90

5,963 17 -1 441 69

-298 95 2,525 82

200 552 05 $

56984137 $ 4.63808176 $ 426672458

-5-

LONG COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES ANO CHANGES IN FUND BALANCES
BUDGET AND ACTUAL INON-GAAP BASIS! GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxo, Other Fwxts
To\al Revenues
EXPENDITURES
Current
lnstructton
Support Services Pup,\Services Improvement of lnstrucbonal Services Educabonel Media Services General Admm1strat:Jon School Admmlstrabon Business Admmstrabon Maintenance and Operabon of Plant Student Transportabon Services Other Support Sen,,ces
Food Services Operabon Community 5eMCeS Operabons
Total E -
Excess of Revenues over (under) Expenditures

s 8,280 397 00 s
42 000 00 1 503,806 00
140 000 00

8 390 593 81 16841855
1 573 044 32 198 742 19

s s 9 966 203 00

10 330,798 87

s s 8 61106400

6 174,170 48

31563500 32711000 192 702 00 191 080 00 413 528 00 100 128 00 734,327 00 680 793 00
90 630 00

259 097 57 35447745 183 623 96 181 921 29 451 344 46
96 502 81 1 327 90341
657 424 88 85 802 47

64 716 00
s 9 721 713 00 s s s 244 490 00

60 815 55 9 833 084 33
497 714 54

OTHER FINANCING SOURCES IUSESl
Other Sources Other U&eS
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1 2001
AclJUSttnenl Food lnvento,y - Net Change m Penod
Donated CommodHies Purchased Food

s $ -250 000 00 s -250 000 00 s

-200 041 55 -200,041 55

$

s -5,510 00

297,672 99

3,418,741 00

3493 711 73

19 464 00

FUND BALANCE JUNE 3Q 2002

S 3,432 695 00 S 3 791 384 72

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s s 450,363 00

445 942 60

1 586 588 00

1 664 719 33

130 925 00

138 959 18

s s 2 167 876 00

2,249 621 11

s 1,176 295 00 s 1 157 369 53

107 632 00 82 322 00 1182000 63471 00 39,709 00 904 00 4 743 00 9,478 00 1,75000
783,982 00

47,5&2 44 122,359 54
8 138 80 49 380 14 28 604 43
904 26 4 649 46 6 835 62
892 14 790 264 78

s s 2 282 106 00

2.216 981 14

s s -11423000

32 639 97

$

1 663 02

s

166302

s s -114 230 00
-24 235 00 24.235 00

34,302 99 37,479 15
5 963 17 -144169

s -114,23000 s _ _1_6_3.,0_3_6_2

The notes to the general-purpose finanaal statements ere en tntegrel pan of this statement -7 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STA rEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICA!,ff ACCOUNTING POLICIES
REPORTING ENTITY
The Long County Board of Education (School Distnct) 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 Supenntendent appointed by the Board The School Distnct 1s organized as a separate legal entity and has the power to levy taxes and issue bonds Its budget 1s not subject to approval by any other entity Accordmgly, the School D1~tnct is a pnmary government and consists of all the organizations that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1t10n and the results of its operations Fund accountmg 1s designed to demonstrate legal comphance and to aid financial management by segregatmg transact10ns related to certain governmental functions or activities A fund 1s a separate accountmg entity with a self-balancmg set of accounts An account group is a financial reportmg device designed to provide accountab1hty for certam assets and habihties that are not recorded m the funds because they do not duectly affect expendable available financial resources
General F1,ed Assets arc recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mamtamed by the School D1stnct To conform to generally accepted accountmg pnnciples, a General Fixed Assets Account Group should be mamtamed for reportmg the cost of assets acqmred by governmental fund types
Although "school act1v1ty accounts" are mamtamed at the md1v1dual schools, neither the assets, habihues and fund eqmty, nor the revenues, ell.pcnd1tures and changes m fund balances of these accounts arc reflected m these financial statements To conform to generally accepted accounting pnnc1ples. these accounts should be recorded m the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School D1stnct, in comphance with generally accepted accountmg pnnc1ples apphcablc to governmental units, unless otherwise disclosed m these notes Funds and the account group presented m this report are as follows
GOVERNMENTAL FUND TYPES - are used to account for all or most of the School D1stnct's cducat10nal activities Governmental Fund Types includ.:
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct e,cept tho,;c reqmred to be accounted form another fund These transaction~ 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 FINANCIALS I ATEMENTS

JUNL 30, 2002

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 ma_ior capital projects) that arc legally restncted to expenditure, for specified purposes These funds are received pnmanly from the Georgia Department of Educat10n and from the Federal government to accomplish specific educational obJect1ves
CAPITAL PROJECTS FUND-the fund used to account for financial resource, to be used for the acqu1s111on or construcuon ofmaJor capital fac1liue,
DEBT SERVICE FUND - the fund used to account for the accumulat10n ofreM>urces for. and the payment of. general long-term pnnc1pal, intere,t and paymg agent fees
ACCOUNT GROUP
GENERAL LONG-ftRM DEBl ACCOUNT GROUP - A financial reportmg device used to account for general obhgauon debt outstandmg
BASIS OF ACCOUNTING
The accountmg and financial reportmg treatment applied to a fund 1s determmed hy its measurement focus All governmental funds are accounted for usmg a current financml resources mea~urerncnt focu, Wnh this measurement focus. only current assets and current liab1liues generally are mcluded on the balance ,heet Opcratmg statements of these funds present mcreases (1 e. revenues and other financmg sources) and decreases (1 e. expenditures and other financmg uses) m net current assets. Their reported fund balance 1s considered a measure of available spendable resources
L1ab1liues which are expected to be financed from avmlable spendable resources arc reported a, liab1lit1es m the governmental funds Other liabiliue,, which are not expected to be financed from avmlable spendable resources, are reported m the General Long-Term Debt Account Group
Governmental funds are accounted for using the modi tied accrual basis of accountmg under which
Re\'Cnues are recognized when suscepuble to accrual (1 e., when they become both measurable and ava1lable) "Measurable" mean~ the amount of the transactlon can be determmed and "available" means collecuble WJthm the current penod or soon enough thereafter to be used to pay hab1hues of the current penod The School D1stnct consider, receivables collected w1thm SI'-tY days after yearend to be avmlable Property taxe~, sales taxes and mterest are considered to be suscepuble to accrual Noncxchangc transactions, m which the School D1stnct gives (or receives) value Without directly rece1vmg (or givmg) equal value m exchange. mclude property taxes. local opllon sales taxes. mtergovcmmental grants and donations Revenue for property taxes 1s recogruzed m the fiscal year for which the taxe~ are levied Revenue from !>ales taxes 1s recogmzed m the fi~al year the resources are received or susceptible to accrual Revenue from granl~ and donation, 1s recogmzed m the fiscal year m which all elig1h1hty reqmremcnts have been satisfied

-9-

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMEN'I S

JUNE 30. 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures are generally recognized when the related fund liab1hty 1s incurred,
A departure from the above defimllons 1s the accounting treatment afforded the final two payments on General Fund teachers' and bus dnvers' contracts, and the resources available from the Georgia Department of Educat10n for the State's share of these contracts Dunng fiscal year 2002. a substantial number of personnel of the School D1stnct were employed for a one hundred and mnety day penod beginning in August 2001 and ending in early June 2002 Personnel contracts for this employment penod specify that compensation be paid in twelve equal monthly payments beginning in September 200 I and ending in August 2002 State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Educat10n to the School D1stnct in the ,amc twelve month, A, of June 30. 2002. compensat10n under these employment contract~ had been earned, but two of the twelve monthly payments, due for July and August 2002. had not been made Payments for these two months were made and recorded as expenditures by the School District sub,equent to June 30, 2002 Also. the State's port10n ofthe compensation paid in July and August 2002 was received and recorded as revenue in the fiscal year subsequent to June 30, 2002 Conversely. the s1m1lar expenditures and related revenues for contractual services completed pnor to June 30. 2001. were recorded in the year ended June 30, 2002 Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditure, be recorded when incurred, rather than when funds are received or d1~bursed
BUDGET
The Long County Board ofEdueallon's budget 1s a complete financial plan for the School District's fiscal year and 1s based upon esllmates of expenditures together with probable funding sources There 1s no statutory proh1b1t10n regarding overexpend1ture of the budget at any level The budget for all governmental funds 1s prepared by fund. funct10n and obJect The legal level of budget control was established by the Board at the aggregate level The budget for governmental funds was prepared on a basis other than generally accepted accounting pnnc1ples,
The budget process begins when the School D1stnct's administration prepares a tentallve budget for the Board's approval After approval ofth1s tentative budget by the Board, such budget 1s advertised at least once in a newspaper of general circulation in the locality At the next regular meeting of the Board after advertisement. the Board receives comments on the tentative budget, makes rev1s1ons as necessary and adopts a final school budget This final budget is then submitted, in accordance with prov1,10ns of the Quahty Basic Educat10n Act, OCGA Section 20-2-167(c), to the Georgia Department of Educat10n, The Board may increase or decrease the budget at any lime during the year All unexpended budget authority lapses at fiscal year-end

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMl:.NTS

JUNE 30. 2002

Note I SUMMARY OF SIGNirlCANT ACCOUNTING POLICIES
CASH Al'iD CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash cqmvalents com,1s1 of cash on hand, demand deposits and ,hort-tenn mvestmcnts with ongmal matunties of three months or less from the date of acqms1t10n m authorized financial mstltutlons Georgia Laws OCGA 45-8-14 authorize the School District to deposit 1t, funds m one or more solvent banks or msured Federal savmgs and loan ~soc1at1ons
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1s1nct m nonpart1c1palmg mtercst-earnmg contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1pating mterest-earmng contnicts and money market mvestments with a matunty at purchase of one year or less are reported at amortized co,t Both part1c1patmg mtercst-earnmg contracts and money market mvestments with a maturity at purchase greater than one year are reported al fair value The Official Code of Georgia Annotated Section 36-83-4 authorizes the School District to mvest its funds and in selecting among options for mvestment or among msutut10nal bids for deposit,, the highest nite of return ,hall be the obJectlve. given eqmvalcnt cond1t10ns of safety and hqu1d1ty Funds may be mvested m the followmg
( I ) Obhgations issued by the State of Georgia or by other state,.
(2) Obhgat10ns issued by the Umtcd States government,
(3) Obhgat10ns fully msured or guanintecd by the Umted States government or a Umtcd States government agency,
(4) Obligations of any corpontllon of the Umted States govemmenL
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool adm1mstered by the State of Georgia. Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obhgat1ons of other pohtlcal subd1v1s10ns of the State of Georgia
RECEIVABLES
Receivable~ consist of grant reimbursements due on Federal, State or other grants for e'-pend1tures made but not reimbursed and other receivable, disclosed from mfonnat10n available Receivables
- II -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES ro THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

are recorded when either the asset or revenue recogmllon cntena has been met Receivables recorded on the general-purpose financial statements do not mclude any amounts which would necessnate the need for an allowance for uncollectible receivables

PROPERTY TAXES

The Long County Board ofComm1ss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 11,200 I (levy date) Tai.e~ were due on February 11, 2002 (hen date) Taxe, collected w1thm the current fiscal year or w1thm 60 days after year-end on the 2001 tax digest are reported as revenue m fiscal year 2002 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 D1stnct Property tax revenues dunng the fiscal year ended June 30. 2002 for mamtenance and operations amounted to $1,554.197 89 and for school bonds amounted to $229,166 13

Tax millage rates levied for the 2001 tax year (calendar year) for the Long County Board of Educat10n were a, follows (a mill equals $1 per thousand dollars of assessed value)

School Operatmns School Bonds

14.70 mills 1.00 mills

ll..Z.Q mills

SALES T .\XES

Special Purpose Local Option Sales Tax revenue dunng the year amounted to $319,636 55 and 1s to be u,ed for capital outlay for educat10nal purposes or debt service This sale, tax was authonzed by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES lnvcntones of donated food commod1t1es used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods mventones are reported on the Combmcd Balance Sheet at cost (first-m, first-out) Donated food commochue, are recorded as revenues and expend!lures at the time commodity items are received. Purchased foods mventones are recorded as expenditures at the lime of purchase. The mventones reported on the balance sheet for donated food commod1t1es and for purchased foods are equally offset by rescrvat10ns of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

- 12 -

LONG COUNl Y BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANl ACCOUNTING POLICIES
GENERAL OBl.lGATION BONDS
The School D1stnct issues general obhgat10n bond, to provide funds for the acqms11ton and con,tructlon of maJor capital facihtics Bond premiums and discounts. as well as 1,suance costs. are rccogmzed in the financial statements dunng the year bonds arc issued General obhgatton bonds are d1rect obhgat1ons and pledge the full faith and credit ofthe government lbe out~tan<lmg amount of these bonds 1s recorded in the General Long-Term Debt Account Group
INTERFLIND TRANSACTIONS
The School District has the following types of intcrfund transactions
Reimbursements ofexpenditures in1tially 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 1s reimbursed
Operating transfers are recorded for all interfund transactwns other than reimbursements
MEMORANDUM ONl.Y - TOTAL COLUMNS
Total columns on the general-purpose financial statements arc captioned "Memorandum Only" to m<l1cate that they are presented only to fac1htate financial analysis Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting pnnc1ples Neither are such data comparable to a consohdat1on Interfund ehminatlons have not been made in the aggregation of this data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Sectwn 45-8-12 provides that there shall not be on deposit at any time in any depository for a ttme longer than ten days a sum of money which has not been ,ccured 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 secunt1es pledged shall be equal to not less than I IO percent of the pubhc funds being secured after the deduction ofthe amount ofdeposit insurance If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate of the market value ofthe securities pledged to secure a pool of pubhc funds ,hall be not less than 110 percent ofthe daily pool balance OCGA Section 45-8-11 (b) provides an officer holding pubhc funds may, in h1~ discretion. wai vc the reqmrement for security in the case ofoperating funds placed in demand deposit checking accounts
Acceptable security for deposits con~1~t, of any one of or any combination of the following

- 13 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GEI\ERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 2 DEPOSITS AND INVESTMENTS
(I) Surety bond signed by a surety company duly qualified and authonzcd to transact busmess w1thm the State of Georgia
(2) Insurance on accounts proVJded by the Federal Deposll Insurance Corporat10n,
(3) Bonds, bills. notes, certificates of indebtedness or other direct obhgat10ns of the United States or of the State of Georgia,
(4) Bonds, b11ls. note,. certificates of mdebtedness or other obligations of the counties or mun1c1paht1es of the State of Georgia,
(5) Bonds of any pubhc authority created by the law, of the State of Georgia prov1dmg that the statute that created the authonty authonzed the use of the bonds for this purpose,
(6) lndustnal revenue bonds and bonds of development authont1es created by the laws of the State of Georgia. and
(7) Bonds. bills, notes, certificates of mdebtedness, or other obhgat.10ns of a subs1d1ary corporat10n of the United States government. which are fully guaranteed by the United States government both as to principal and mterest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank. the Federal Intermediate Credn Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal Nal!onal Mortgage Assoc1allon
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $3,286.908 03. The amounts ofthe total bank balances are classified mto three categones of credit risk
Category 1 Cash that 1s msurcd (e g, Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent m the School D1stnct's name
Category 2 Cash collaterahzcd with securities held by the pledgmg financial mst11ut1on's trust department or agent m the School D1stnct's name
Category 3 - Uncollateralil'.ed deposits (This includes any bank balance that 1s collateralized with sccuntles held by the pledgmg financial 1ns11tut10n. or by !Is trust department or agent but not m the School D1stnct's name )
The School D1stnct's <lepo,1ts are classified by risk category at June 30. 2002, as follow,.

14

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOfES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS

Risk Category

Bank Balance

I

$ 582,917 59

2

2,703,990 44

3

0 00

Total

$_1286 908,03

CAT[GORIZAl ION OF INVESTMl:NTS At June 30, 2002, the carrying value of the School D1stnct's total investments was $2, I03,611 75 which 1s matenally the same as fair value This investment consisted entirely of funds invested in the Local Government Investment Pool adm1mstered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not reqmred to be categorized since the School District did not own any specific 1denufiable securities in the pool The investment policy of the State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Pnmary L1qu1d1ty Ponfoho) does not provide for investment in denvatives or similar investments A description ofthe Primary L1qu1d1ty Portfolio 1s as follows

The Primary L1qu1d11y Portfolio consists of Georgia Fund I, which 1s a combinat10n local and ~tale government investment pool, and Fund 6 Georgia Fund I 1s a stable net asset value investment pool which follows Standard and Poor's cnteria for AAAm rated money market funds The pool is not registered with the SEC as an investment company but does operate Georgia Fund I in a manner consistent with Rule 2a-7 of the Investment Company Act of 1940 and 1s considered to be a Ruic 2a7 hl,.e pool The pool's pnmary obJecuves are !>llfety of capital, investment income, hqmd1ty and d1vers1fica11on while maintaining principal ($1 00 per share value) Net asset value 1s calculated weel,.ly to ensure stability. The pool d1stnbutes earnings (net of management fees) on a monthly basis and values part1c1pant's shares sold and redeemed based on$ I 00 per share Pooled cash and cash equivalents and investments arc reported at cost which approximates fair value The pool does not issue any legally hinding guarantees to support the value of the shares Part1c1pation in the pool 1s voluntary and deposits consist of funds from local governments, operating and trust funds of Georgia's state agencies, colleges and umvers1Ues, and current operating funds of the State of Georgia', General Fund

lnve~tment~ in Georgia Fund I and Fund 6 are d1rected toward short-term instruments such a, U S Treasury obligations, secuntles ISsued or guaranteed as to principal and interest by the U S Government or any of its agencies or in,trumcntalilles, banl,.cr's acceptances and rcpurcha,e dgreo:ment, The weighted average matunty of Georgia Fund I may not exceed 60 days The weighted average matunty for Georgia Fund I on June 30, 2002, was O 12 years The average investment duration for Fund 6 on June 30, 2002. was O75 years

- 15 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GFNERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3 NON-MONETARY TRANSACTIONS

The School Distnct receives food comrnod111es from the Umted States Department of Agnculture (USDA) for school breakfast and lunch programs These commod1t1es are recorded at their Federally assigned value See Note I - Inventories

Note 4 RISK MANAGEMENT

The School District 1s exposed to various nsks of lo~s related to torts; theft of, damage to, and destruction of assets, errors or omissions; _1ob related illness or m_1unes to employees, acts of God and unemployment compensation

The School District has obtamed commercial msurance for risk of loss associated with torts. a~sets and errors or omissions The School District has neither s1gmficantly reduced coverage for the~e nsks nor mcurred losses (settlements) which exceeded the School D1stnct's msurance coverage m any of the past three years

The School D1stnct has elected to self-msure for all losses related to acts of God. The School District has not expenenced any lo~se~ related to this nsk m the past three years

The School D1stnct 1s sclf-msured with regard to unemployment compensauon claims The School D1stnct accounts for claims withm the General Fund with expenditure and hab1hty bemg reported when It ts probable that a loss has occurred, and the amount ofthat loss can be reasonably csllmated

Changes m the unemployment compensation claims hab1hty during the last two fiscal yea~ are as follows

2001 2002

Begmnmg of Year Liability

Claims and Changes m l::st1mates

Claims Paid

End of Year L1ab1htv

$

000 $

525 00 $

525 00 $

0 00

$

0 00 $

250 00 $

250 00 $

0 00

The School D1stnct part1c1pates m the Georgia Education Workers' Compensation Trust. a pubhc entity nsk pool organized on December I. 1991. to develop, implement and admmister a program of workers' compensallon self-insurance for its member organizations The School D1stnc1 pays an annual premium to the Trust for its general insurance coverage Add1t1onal insurance coverage ts provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potenttal losses sustamed by the Trust m excess of $350,000 00 loss per occurrence, up to $2,000.000 00

The School D1stnct has purcha~ed surety bonds to provide additional msurance coverage a~ follows

- 16 -

LONG COUNTY BOARD OF EDUCATION

EXHIBI r "D"

NOTLS TO nm GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 4 RISK MANAGEMENT

Position Covered

Amount

Superintendent All employees

$ 20,000 00 $ 20,000 00

Note 5 GENERAL LONG-TERM DEBT
GENERAL OBLIGATION DEBT OUTS rANDING
General Obhgat10n Bonds currently outstandmg are as follows

Purpose

Intcrcst Rates

Amount

General Government - Scnes 1993 General Government - Senes 1997

3 00%- 5 50% 4 00%- 5 25%

$ 2,000,000 00 3,855,000 00

$j,855,000.00

The changes in General Long-Tem1 Debt dunng the fiscal year ended June 30, 2002, were a~ follows

General Obligation
Bonds

Balance July I, 200 I

$ 6,045,000 00

Deduct10ns Debt Retired

190 000 00

Balance June 30. 2002

$..5.,855,000.00

At June 30, 2002, payments due by fiscal year which mcludes pnnc1pal and mtcrest for these items are as follows

- 17 -

LONG COUNTY BOARD OF EDUCATION

EX! IIBIT "D"

NOTES TO THE GEN[RAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5 GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

2003 2004 2005 2006 2007 2008 - 2012 2013 - 2017 2018

$ 508.717 50 519.527 50 529.167.50 542_597 50 544.597 50
2,753,135 00 2,855,192 50
589,400 00

Total Pnnc1pal and Interest
Note 6 ON-BEHALF PAYMEN rs

$ 8,842,335.00

The School D1stnct has recognized revenues and expenditures in the amount of$138,847 65 for health insurance and rellrement contnbutlons paid on the School D1stnct's behalf by the following State Agencies

Georgia Department of Educat10n Paid to the Georgia Department ofCommumty Health For Health Insurance of Non-Certified Per<;0nncl In the amount of $116.075 65

Office of Treasury and F1~cal Services Paid to the Pubhc School Employees Retirement System For Pubhc School Employees Retirement (PSERS) Employer's Cost In the amount of $22.772 00

Note 7 CONTINGENT LIABILITIES

,\mounts received or receivable pnnc1pally from the Federal government are subject to audit and review by grantor agencies This could result m requests for re1mburscmcnt to the grantor agency for any expenditures which are disallowed under grant terms rhe School D1~tnct believes that such d1sallowances, 1f any, will be 1mmatenal to Its overall financial position

- 18 -

LONG COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

'iote 8 RETIREMEN1 PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA ([RS)

fRS PLAN DESCRIPTION Substantially all teachers, admm1strat1ve and clcncal persormel employed by local school d1stnct~ arc covered by the Teachers Retirement System of Georgia (fRS), which is a cost-shanng mul!Iple employer defined benefit pension plan TRS provide~ service retirement, d1sab1hty retuement and survivors benefit~ for its members m accordance with State statute The Teacher., Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtamed from the Georgia Department of Audits and Accounts

TRS CO!',;TRIBUTIONS REQUIRED AND MADE Employees of the School D1stnct who are covered by TRS are reqmred by State statute to contnbute 5% ofthe1r gro~~ earnings to TRS. The School D1stnct makes monthly employer contnbutions to TRS at rates adopted by the TRS Board of Trustees m accordance wnh State statute and as advised by theu independent actuary The required employer contnbution rate 1s 9 24% and employer contnbuuons for the current fiscal year and the precedmg two fiscal ye~ are as follows:

fiscal Year

Percentage Contnbuted

Reqmrcd Contnbut10n

2002 2001 2000

100% 100% 100%

$ 566,263 02 $ 639,093 55 $ 581.463 08

- 19 -

LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30. 2002

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
lnventones Food Donated Commodrt1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

62,23316 $

46,082 06

34,76981

6,16531

3,351 00

13,725 68 6,718 98

Total Assets

$

123 612 94 $=--4.;.;9=,4=33==06=

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total LJab1lrt1es
FUND EQUITY
Fund Balances Reserved For lnventones Food Donated Commod1t1es Purchased Food Unreserved Undeslgnated
Total Fund Equity
Total L1ab1hties and Fund Equfy
See notes to the general-purpose financ,al statements
- 20 -

$

6,095 44 $

10,912 20

41,21388

38,520 86

$

47,309 32 $

49,433 06

$

13,725 68

6,718 98

55,858 96 $

0 00

$

76,303 62 $

000

------ $

123 612 94 $

49,433 06

EXHIBIT "E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

89,18659 $

197 501 81 $

140,382 13

34,769 81

33,940 27

60,000 00

69,516 31

49 519 09

13,725 68 6,718 98

7,762 51 8,160 67

$

149,18659 $

322,232 59 $ _ _ _23_9",7""64"""'"'6""'7

$

20,034 98 $

37 042 62 $

39,155 06

70,697 72

150,432 46

137,805 38

25,325 08

58,453 89

58,453 89

$

149,186 59 $

245,928 97 $

202,285 52

$

13,725 68 $

6,718 98

7,762 51 8,160 67

55,858 96

21,555 97

$

000 $

76,303 62 $ _ __,3'--'7.,_4c:_7,:_9..::15=-

$

149,18659 $

322,232 59 $ _ _2_3;,;;9..,;7.6..4..6.7;.,

- 21 -

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

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil SeMces Improvement of lnstructJonal Services Educational Media Services General Adm1mstrat1on School Adm1mstrabon Business Adm1mstrabon Maintenance and Operation of Plant Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Penod Donated Commodities Purchased Food
FUND BALANCE JUNE 30
See notes to the general-purpose financial statements
- 22 -

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

60,182 98 $

385,75962

621,007 22

138,959 18

$

820,149 38 $

385,759 62

$

333,481 68

26,468 30

27,183 97 172 24

$

785 846 39

$

785 846 39 $

387,30619

$

34,302 99 $

-1 546 57

$

34,302 99 $

37,479 15

5,96317 -1 441 69

1,546 57
000 000

$

76 303 e2 $-~~--o_oo_

EXHIBIT "F"

FEDERAL
PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30. 2001

$

445,942 60 $

407,381 58

s

1,043,71211

1,664,719 33

1,296,908 98

138,959 18

131,837 03

$

1,043 712 11 $

2,249,621 11 $

1,836, 127 59

$

823,887 85 $

1,157,369 53 $

881,830 31

21,11414 122,359 54
8,138 80 49,380 14
1,420 46 904 26
4,477 22 6,835 62
892 14 4,418 39

47,582 44 122,359 54
8,138 80 49,380 14 28,604 43
90426 4,64946 6,83562
892 14 790 264 78

36,852 54 126,293 87
5,999 22 54,616 08 22,936 58
1,13624 7,662 70
97960 883 106 60

$

1,043,828 56 $

2,216,981 14 $

2,021,413 74

s

-11645 $

32,639 97 $

-185,286 15

116 45

1,663 02

7,447 46

$

000 $

34,302 99 $

-177,838 69

0 00

37,479 15

213,090 97

5,963 17 -1,441 69

-298 95 2,525 82

s

0 00 $

-~---- 76,303 62 $

37,479 15

- 23 -

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

EXHIBIT"G"

~ Cash and Cash Equivalents Investments
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overnran Accounts Payable Contracts Payable Retamages Payable
Total L1ab1lrttes FUND EQUITY
Fund Balances Reserved For Purpose of Bond Issue For State Caprtal Outlay Pro)eru Unreserved Undes19nated Total Fund Equity
Total Liabilities and Fund Equrty

BOND PROCEEDS

LOTTERY PROJECT

TOTALS JUNE 30 2002 JUNE 30 2001

S 200,552 05 $

000 $

200 552 05 $

200 552 05

357 713 51

$ 200,552 05 S

s___ 0 00 S 200,552 05

558=2aa6=5"'56""

$ 149,880 56 44,816 44 103,27711 6 500 00
$ 304,474 11

S 200 552 05

$

000 $ _ _-=.0.=cOO=-

S 200,552 05 $

000 S

200,552 05 S
000
200 552 05 S

200 552 05 53,239 40
0 00
253 791 45

$ 200 552 05 S

000 S 200 552 05 S 558 265 56

See notes to the general-purpose finanaal statements

- 24 -

LONG COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND
YEAR ENDER JUNE 30 2002

EXHIBIT "H"

BOND PROCEEDS

LOTTERY PROJECT

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30, 200\

REVENUES Other Funds

s

000 $ 3 330 66 $

s 3 330 66

255 385 55

EXPENDITURES
Capital Outlay Bu1ld1ng and Bmk:hng Improvements
Excess of Revenues over (under) Expenditures

$

0 00 $ 2\8 778 37 s 2\877837 s 667 708 98

$

000 s -2\544771 $ -2\5 447 7\ s -4\2 323 43

OTHER FINANCING SOURCES <USES)
Operating Transfers In Operab:ng Transfers Out
Total Other Financing Sources (Uses)

s 162 208 31 $ s 162 208 31 $

162 208 31 $
162,208 31 s

345 523 75 -344 474 59
1 049 16

Excess of Revenues end Other F1nanc,ng Sources
s over (under) Expenditures and Other Financing Uses

000 s -53 239 40 s

-53 239 40 $ -411 274 27

FUND BALANCE JULY 1

200 552 05

53 239 40

253,791 45

665 065 72

FUND BALANCE JUNE 30

$ 200 552 05 S

s___ 000 $

200 1552 05

2_5"3""7"'9'=1"4""5

See notes to the general-purpose fillclnoal statements

- 25 -

LONG COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30 2002

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable
Total Assets
FUND EQUITY Fund Balances
Reserved For Debt Servica
Unreserved Undes1gnated
Total Fund Equrty

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS JUNE 30, 2002 JUNE 30, 2001

$ 107,413 41 $

378,461 68 $ 485,875 09 $ 391 968 31

15,785 16

15,785 16

30,615 09

13,642 17

54 538 95

68181 12

59158 85

$ 13684074 $

433,00063 $ 569,841 37 $ 48174225

$ 13684074 $ 000

433,00063 $ 000

569,841 37 $ 000

481,742 25 000

$ 136,840 74 $

433 000 63 $ 569,841 37 $ 481,742 25

See notes to the general-purpose financial statements

- 26 -

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

EXHIBIT"J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Pnnopal Interest Pay,ng Agen1 Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SQURCES (USES)
Operating Transfers In Operabng Transfers Out
Total Other Finanang Sources (Uses)
Excess or Revenues and Other F1nanang Sources over (under) Expenditures and Other financng Uses
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30 2002 JUNE 30 2001

s 22916613 s
2 587 33
s s 231 753 46

319 636 55 s
1 201 7B
s 320 838 31

54B B02 6B s
3 789 09
s 552 591 77

428 638 58 12 116 99
440 755 57

s 95 000 00 s
107 837 50
701 00

s 203 538 50 s

$

28 214 96 s

95 000 00 s
198 806 15 3 318 22
297 124 37 s
s 23,713 94

190 000 00 s
306 643 65 4 019 22
500662 87 s
51 928 90 s

170 000 00 313 937 50
1 961 00
485 898 50
-45 142 93

s 36 170 22 s
-2 670 22

$

33 500 00 s

s 61 714 96 s
75 125 7B

2,670 22 $
2 670 22 s

38 840 4-4 -2 670 22
36 170 22

26 384 16 s
406 616 47

88 099 12 s
481 742 25

-45 142 93 526 885 18

FUND BALANCE JUNE 30

s 13684074 S

433 000 63 S 569 841 37 S 481 742 25

See notes to the general.purpose finallClal statements

27

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Agncutture u s Department or
Child Nutrmon Clusler Pass-Through From Georgia Department of Education Food and NutnbOn Program Food Services
School Breakfast Program National School lunch Program
Total Chlld Nutribon Cluster
Other Programs Pass-Through From Georgia Department of EducaUon Food and Nubibon Program Food DISlnbullon Program (1)
Total U S Department of Agl1culture
Edueallon U S Department of Speaal Educabon Cluster Pass-Through From Georgia Department of Educabon lndNlduals wrth Dasab1lrtles Education Act Pan B - Special Educa1JOn Capacrty Bu1kt1ng Improvement Flow Through Preschool
Total Special Educatton Cluster
Other Programs Dirac! Impact Ald Pass-Throogh From Georgia Departmen1 of Educs1lon
Comprehensive School Reform Demonstrallon Pftlf8ci Bementary end Secondary Education Act
Tille I Grants to Local Educational Agencies
TIiie II Eisenhower ProteS51Clnal Development
Tillelll Technology Literacy ChaUenge FWld Grams
TllleVI Jnnovabve EdocatK>n Program Strategres Class Size Reduction
Vocabonal EducabOn - Basic Grants to States High School Program
BaSIC Grant Pass-Through From First Distnd Regional Educabonal
5eMce Agency d/bla Lrve Oak Migrant Educauon Agency Elementary and Secondary Education Act Title I M,gran1 Educallon
Total U S Department of Educabon

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

10 553 10 555

NIA

s 164,933 93

NIA

s 414,222 43

s 579 156 36 s

(2) 743 995 53 (3)
743 995 53

10 550

NIA

41,850 86

s 821 007 22 s

4185086 785 846 39

64 027 64 027 64 173

NIA s

s 880 33

NIA

175,147 08

NIA

6 814 69

s 182 842 10 s

880 33 175 147 08
6 814 69
182,842 10

84 041

64 332

NIA

84 010

NIA

84 281

NIA

84 318

NIA

64 298

NIA

84 340

NIA

64 048

NIA

148 046 73 73 148 00
502 103 59 14 947 92 66 299 54 12 552 07 61 790 09
43,885 00

(4) 73 148 00
502,103 59 14 947 92 66 299 54 12 552 07 61,790 09
43,885 00

84 011

NIA

86 143 BO

86 260 25 (3)

s s 1 19175684

1 043 828 56

- 28 -

LONG COUITTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE 1

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

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDIT\JRES IN PERIOD

12 999

$ 20 371 82

(4)

Total Federal F1nanc1al Assistance NIA = Nol AV81lable

s 1 833 137 as s__1_e_2_9_s_1__9,..s

1

1

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for the Food DJstnbuoon Program represents the Federally assigned value of nonmonetary assistance for donated commodrtles recewed and/or consumed by the system dunng tho current fiscal year
(2) E,pendrtures for the School Breakfast Program _,, not mamtamed separately and are IOduded in the 2002 Nabonal School Lunch Program
(3) Expendotures Jot th,s program lldude State and/or Other Funds Expenditures are not maintained by fund source
(4) Fund!. earned on ttns program do not require reportmg of expenditures

Ma,or Programs are tdenl.Jfied by an estensk (*) rn front of the CFOA nwnber

The Sdlool Di:stnct did not provide Federal As6tstance to any Subreciptent

The accompanymg sd"ledute of expend1tut'8S of Federal awards mciudes the Federal grant ecttvlty of the Long County Board of Educabon and 1s presented on the mcxhfied accrual bas:s of accountlllg wluch 1s the basis of accounbng used m the presentatJon of the general-purpose finane&al statements

See notes to the general-purpose finenc&el statements

. 29

LONG COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30 2002

SCHEDULE 7

AGENCY/FUNDING
GRANTS Community Affairs Georgl& Department of Governor's Emergency Funds Local Assrstance Grant
Educabon Georgia Department of QuaJ1ly Basic Education Direct lnstrud1onal Cost Kindergarten Program Kindergarten Program - Earty lntervenbon Program Pnmary Grades ( 1-3) Program Pnmary Grades - Early lnlervenbon (1-3) Program Upper Elementary Grades (4--5) Program Upper Elementary Grades - Eerty lntervenbon (4-5) Program Middle Grades (6-8) Program High Sdlool General Educatt0n (9-12) Program Vocational Laboratory (9-12) Program Students wrth Orseb!11ties Category I Category II Category Ill Category IV Category V Grfted Student - Category VI Remecl181 Education Progl'llm Altemabve Educat,0n Program English Speakers of Other Languages (ESOL) Media Center Program Sta.ff and P r e ~ \ Oeve\opmen1 Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replaeement Spae;rty Spararty Altematvo Program Nursing Servces Pnnopal Supplements 20 Days Add!IIOl"lal Instruction Vocattonal Supervisors Migrant EducaltOn Educat10n EQU8hz8bon Funding Grant Food S.flrv1ces Other State Programs Extended Day - Technology Career H-,atth Insurance Nst1onel Teacher Certlficabon Pre.school Handicapped Program Speael Educahon Low lnadence Grant Student Achl8Vfl:rTl8n1
Tecimology I Career Other - Youth Apprenticeship
4 - 8 Statewide After Sdiool Program K 3 Statewtde Reading Program Lottery Program!, AsSlsbve Technology Computers., the Classroom

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

s 10 000 00
50 000 00

s

10 000 00

50 000 00

431 888 00 127 345 00 1 038 907 00 187 951 00 518 662 00 230 633 00 896 083 00 588 401 00 261 793 00
4141000 BO 625 00 356 616 00 40 884 00 1516500 71,328 00 11321600 61 981 00 68 479 00 165 960 00 3415600 1 121 764 00

431 888 00 127 345 00 1 038 907 00 187 951 00 518 662 00 230,633 00 896,083 00 588 401 00 261 793 00
41 410 00 BO 625 00 356 616 00 40 884 00 15 165 00 71 328 00 11321600 61 981 00 88 479 00 165 960 00 34 156 00 1 121 764 00

292 591 00 93 065 00 36 805 00 35 889 00 54 456 00 7 843 00 48911 00 12 242 00 1113500
1 00287800
s

60 182 98

13 643 00 116,075 65
5 744 00 21 490 00 10 797 00 30 717 00 2 000 00 34 208 Hi 24 085 00

4 944 00 47 750 00

292 591 00 93 065 00 38 605 00 35,889 00 5" 456 00 7 843 00 48 911 00 12 242 00 1113500
1 002 878 00 60,182 98
13 643 00 116 075 65
5 744 00 21 490 00 10,797 00 30 717 00
2 000 00 34 208 16 24 085 00
4 944 00 47 750 00

30-

LONG COUNTY BOARD QF EDUCATION SCHEDULE OF STATE REVENUE
YEAR ENDED JUNE 30 2002

SCHEDULE R2"

AGJ:NCYIFUNDING
GRANTS
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal SeMces Public School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

S 333 065 62 S 333 065 62

S ----"22'-'-77'-'2"00""---

22 n2 oo

:S 839059381 S 594260 S 883653641

See notes to the general-purpose finanoal statements 31

LONG COUNTY BOARD OF EDUCATION
SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENDED JUNE 30 2002

SCHEDULE "3"

PROJECT
Construd1on 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 YEARS (3)

PROJECT STATUS

s 7,044 038 00 $ 1,722 221 87 $ 417,584 52 $ 7 304 637 35 Ongoing

(1) The School OIStnct's onganal cost estimate as specfied m the resolution calling for the 1mpos1bon of H1e Local Opttan Sales Tax
(2) The School Oistnd's current estunate of total cost for lhe proJect lndudes an cost from protect mceptmn to complebon
(3) The voters of Long County approved the 1mpOS1t10n of a 1% sales tax to fund the above prorect and rebre associated debt Amounts expended for the project mey include sales tax proceeds, state, local property taxes and/or other funds over the life of the pro1ed

See notes to the general-purpose financial statements

. 33.

LONG COUNTY BOARD OF EDUCATION
GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM cQBEl
ALLOTMENTS AND EXPENDITURES BY PROGRAM
YEAR ENDED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION
DITed lnstrucbonal Programs Kindergarten Program Kindergarten Program-Ear1y Intervention Program Primary Grades (1-3) Program Pnmary Grades-Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades-Early Intervention (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program VocaUonal Laboratory (9-12) Program
Student& wrth DlsablllHes Category t Category II Category Ill Category IV Category V
Gifted Student Category V1 Remedial Educatron Program Alternative Educalmn 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

s

468 067 00 $ 509 141 48 $

7 740 26 $

516 681 74

13801300

124 900 88

124 900 68

112593500 1 066 542 01

20 690 03

1 087 232 04

203 695 00

191,312 50

191 312 50

561 103 00

492 376 04

18 006 14

510 382 18

250,959 00 971,147 00 637 690 00 263,723 00 579 491 00
77 303 00 122 700 00
67 173 00 74 215 00

237 449 86 946 000 59 597,987 80 267,638 46
70,771 81 120,398 41 461,709 51
65 937 66 1056893 79,012 79 11058268 60,748 96 66,866 58

29 146 26 60,644 69 10 063 74
138 37 674 32 7,8!14 98 234 00
995 28

237,449 86 975,146 87 658,632 49 297 702 22
70 910 18 121,072 73 469 564 49
66,171 66 10 568 93 80 008 07 110 562 88 60 748 96 66 866 58

$

5 561 214 00 $ 5 499 927 17 $ 156 168 09 $ 565611526

179 862 00 37 017 00

159 649 20 6 760 23

21 199 99 31 132 09

18084919 37 892 32

TOTAL QBE FORMULA FUNDS

$

5 778 093 00 $ 5 666 336 60 $ 208 520 17 $ 5 874 856 77

(1) compnsed of State Funds plus Local Five Mill Shara

See notes to the general-purpose flnanoal statements

34

LONG COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE\
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2 099,958 00 $

2,263,733 62

3.394,083 00

3.392,381 64

67,173 00

$

5 551 214 oo s_....;;5.;;6;;;56~.1;,;1,;:;5.;;26~

See notes to the general-purpose financ,a/ statements - 35 -

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

\1~~i ii w. HiN10!S
STATE AUDI TOH
(,1 1-,l f,_')(, ,'17-l

DEPARTMENT OF AUDITS AND ACCOUNTS
254 w.i. .hmgton ~tn:t.:t !:) W ~1111c 214
A1l,.rnt..1, (11:org:1..i 30314-8400
July 18. 2003

llonorablc Sonny Perdue. Governor Member., of the General Assembly \1cmbcr; of the State Board of Educatmn
and Supt=nntendent and Members of the Long County Board of Educallon
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL s1 ATEMENTS PERFORMED IN
ACCORDANCE WITH GOVL:RNMENT AUDITING STANDARDS
Lad1c, and Gentlemen
We have audited the financial slalcmenl~ of Long County Board of[~ducauon a.~ of and for the ye.ir
ended June 30. 2002, and have 1,sued our report thereon dated July 18, 2003 This report was qualified for vanous departure, from generally accepted accountmg pnnc1ple,. as idcnllfied m the auditor's report on the general-purpose financial statcmenl\ We conducted our audit m accordance with aud1tmg standards generally accepted m the Urnted States of Amenca and the ,tandards applicable to financial audits contamed m Government Aud1tmg Standards. issued by the Comptroller General of \he Urnted States
Compliance
A, part ofobtammg reasonable a<;;urance ahout whether Long County Board ofEducation', financial \latements arc free of matenal misstatement, we pcrfonncd te,t, of 1t, compliance with certam prov1s10n, of laws. regulat10ns. contracts and grant,. noncompliance with which could have a d1recl and matenal effect on the detennmauon ol financial statement amounts However. prov1dmg an opm1on on c,,mphance with those prov1s1ons v.as not an obJecllve of our audit. and accordmgly. we do not c'i.prc,, such an opmmn The result, of our test, disclosed no mstances ofnoncompliance that are rcqmred lo be reported under Government Aud1tmg Standards
Internal Control O, er Fmancml Rcportmg
In plannmg and perfonnmg our audit. we considered Long County Board of Educallon's mternal control over financial rcportmg m order to determmc our aud1tmg procedure~ for the purpose of cxpremg our opmmn on the financial statements and not to provide a.surance on the mternal
2002YB-4I

control over financial reporting However. we noted a ccrtam matter mvolvmg the internal control over linanc1al reporting and !Is operation that we consider to be a reportable cond1t1on Reportable cond1110n~ involve matters commg to our attention relating to significant dcfic1enc1cs m the de,1gn or opcrat10n ofthc internal control over financial reporting that. m ourJudgment. could adversely affect Long County Board of Educallon's ability to record. process. summarize and report financial data cons1,tent with a\\ert1ons of management m the financial statements The reportable cond1110n 1s dcscnbed m the accompanying Schedule ofFmdmgs and Que,t10ned Costs as item FS-691 1-02-01
A matcnal weakness 1s a cond1uon m which the dc,1gn or operat10n of one or more of the internal control components doe~ not reduce to a relallvely low level the nsk that misstatements m amounts that would be matcnal m relallon to the financial statements bemg audited may occur and not be detected w1thm a timely penod by cmployet:~ m the normal cour,e of perfonnmg their assigned functions Our cons1derat1on of the internal control over financial reporting would not necessarily d1~lose all matters m the internal control that might be reportable cond111ons and. accordingly. would not necessanly disclose all reportable cond111ons that are alw considered to be material
weaknesses However, we consider item I S-6911-02-0 I to be a material weakness
This report 1s intended ,olely for the mtormallon and use of management. members of thc Long County Board of I:,ducation. federal awarding agencies and pas,-through cnlltie, and 1~ not intended to be and should not be used hy anyone other than the~e specified parties
Respectfully submitted.
~-4~
Hmton State Auditor
RWH.as 2002YB-41

~l'SSHI W. HINIO'I
SJATE AUDITOR
~04 r~ ;;:,-;-,1

DEPARTMENT OF AUDITS AND ACCOUNTS
254 W,.1slungton ~lrccl, ~ W ~u11c 214 Atlanta C,curg,a 10314-X41Xl
July I8. 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board oflducat1on
and Supenntendent and Members of the Long County Board ofl'.ducauon
REPOR r ON COMPLIANCE WITH REQUIREMFN rs APPi ICABLE TO EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANC[ IN ACCORDANCE WI rJ I OMA CIRCULAR A-133
Ladies and Gentlemen
Compliance
We have audued the compliance of Long Count} Aoard of Education with the types ofcomphance requirements described m the US Office of Management and Budget (OM/JJ Cirwlar A-133 Compliance Supplement that are applicable to each of 11, maJor Federal programs for the year ended June 30. 2002 Long County Board of f:ducat1on', maJor Federal programs are 1dent1fied m the Summary of Auditor's Results Section of the accompanymg Schedule ofFmdmgs and Questioned Costs Compliance w11h the requirements of law,. regulations. contracts and grants applicable to each of us maJor Federal programs 1s the respons1b1hty of Long County Board of Edueallon's management Our respons1bihty 1s to exprcs, an opm1on on Long County Board of Education's compliance based on our audit
We conducted our audit ot compliance m accordance with aud1tmg standards generally accepted m the United States of Amenca, the Mandards applicable to financial audit, contamed m Government Aud1tmg Standard,, issued by the Comptroller General of the United States. and OM13 Circular Al33. 4ud111 of Sta/e1 Local Government\ and Non-Pro/ii OrRam:atwns Those standards and OM13 Circular A- I 33 reqmrc that we plan and perform the audit to obtam reasonable a-;surance about whether noncompliance with the types ofcompliance reqmrements referred to above that could have a direct and material effect on a maJor J'ederal program occurred An audit mclude~ exammmg. on a test basis, evidence about the Long County Board of Fducatlon's compliance with tho,c requirement, and performing such other procedure, as \\e considered necessaf) m the c1rcmnstances We believe that our audit provides a reasonable h~s1, for our opinion Our audit docs not prov1d.: a legal de1crmmat1on on Long County Board of Educatmn's compliance wnh those requirements
2002SA-l0

In our opin10n. the Long County Board of Educauon complied, in all matenal respect~. with the reqmrements referred to abov.: that arc applicable to each of 1ts maJor rederal programs for the year ended June 30, 2002
Internal Control Over Compliance
The management of Long County Board of Education 1s rcspom1ble for e~tablishing and mmntaining effective internal control over compliance wuh requirements of laws. regulauons, contracts and grant~ applicable to lederal program, In planning and perfonmng our audit, we considered Long County Board of Education's internal control over compliance with requirements that could have a direct and matenal effect on a maJor Federal program in order to determine our auditing procedures for the purpose of e,pressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133
Our cons1demt10n of the internal control over compliance would not necessanly disclose all matter., in the internal control that might be matenal weaknesses A matenal weakne,s 1s a cond111on in which the design or operation of one or more of the internal control components doe~ not reduce to a relauvely low level of nsk that noncompliance with applicable requirements oflaws, rcgulat1ons, contracts and grant~ that would be material m relallon to a maJor r ederal program bcmg audited may occur and not be detected within a timely penod by employee~ m the normal course of performmg their as~1gned functions We noted no matters mvolvmg the mternal control over compliance and its operation that we consider to be material weakne,scs
This report 1s mtended solely for the mformat10n and use of management, member., of the Long County Board ofEducat10n, l'ederal award mg agenc1c, and pas,-through enuues and 1s not intended to be and should not be used by anyone other than these specified parties
----Respectfully submitted, w.~ Hmton State Auditor
RWHas 200'.!SA-I0

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

I ONG COUNTY BOARD OF EDUCATION AUDITEE'S RESPONSE
SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2002

r PRJOR YEAR FINANCIAL STATEMEN FINDINGS AND OUES1 ION ED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-691 I-00-0 I FS-6911-01-01

I- urther Action Not Warrantcd Unresolved - See Corrective Act1on/Respom,cs

CORRECTIVE ACTION/RESPONSES
GENtRAL FIXED ASSE rs
I-allure to Mamtam Genernl Frxed AsM:ts Account Group findmg Control Number FS-6911-01-01

The Long County School D1stnct has detcrrnmed that 111~ not econom1cally feru.1ble at this time to mamtam a separntc General Fixed AsscL, Account Group from the primary accounting systems provided by the Depanment of Education Although the School D1stnct realizes the s1gmficant role the Genernl Fixed Assets Account Group ha~ on the financial statements, 11 has decided not to take any action at this time The School D1stnct hope~ that this issue will be addressed m the accounting system update~ issued by the Depanment of Educauon

SECTION IV FINDINGS AND QUES rlONEO COSTS

LONG COUNTY BOARD O~ EDUCA I ION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
rvpc of Report Issued on the Financial Statements The auditor's op1mon on the Long County Board of Education's financial statements was quahfied for various departure~ from generally accepted accounting pnnc1ples
2 Reportable Conditions in Internal Control Disclosed by the Audn of the Financial Statement~ The audn report for the Long County Board of Education disclosed a financial statement reportable cond1t10n related to the following control category
General FI xcd Assets
The reportable condn10n descnbed above 1s con~1dered to be a matenal wealness
3 Noncomphance Matenal to the Financial Statements The audit of the Long County Board of Education d1sclo~d no instance~ ofnoncomphancc that were deemed 10 be matcnal lo the financial statements
4 Reportable Cond1t10ns in Internal Control Over Major Programs The audit report for the Long County Board of Educatmn did not disclose any reportable conditions in internal control over maJor programs
5 Type of Report Issued on Compliance for Ma1or Program~ The auditor's opm1on on the Long County Board of Education's report on compliance with requirements applicable to maJor programs was unquahfied
6 Audit Findings Reguued to be Reported by Section 510(a) ofOMB Circular A-133 The Long County Board of Education's audit did not disclose audit findings reqmred to be reported by ~ct1on 510(a) ofOMB Cucular A-133
7 Ma1or Programs Federal award~ audited a~ maJor program~ are as follows IO 553 Food and Nutnt1on Program - Food Services - School Breakfast Program IO 555 Food and Nutnuon Program - Food Service~ - National School Lunch Program
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300.000 00
9 Low Risk Aud1tee The Long County Board of Education quahfied as a low nsl-. auditcc as defined by Secllon 530 of 0MB Cucular A-133
-I-

LONG COUNTY BOARD OF EDl reATION
SCH[DULE OF FINDINGS AND QUESTIONED COSTS Y[AR ENDED JUNE 30, 2002
II FINANCIAL s1 AT[MENT FINDINGS AND QUESTIONED COSTS GENERAL FIXED ASSETS Failure to Maintain General Fr"<ed Assets Account Group Reportable Cond111on - Material Weakness Repeated From Pnor Year Finding Control Number FS-6911-02-01 The Long County School District did not maintain a system-wide General fixed Assets Account Group within the formal accounting records as required by generally accepted accounting pnnc1ples This cond1t10n results m the general-purpose financial statements of the School D1str1ct being incomplete and not in accordance with generally accepted accounting pnnc1ple, Appropriate action should be taken by the School D1stnct to establish accounting control\ and procedures to provide for mamtenance of a General Fixed Assets Account Group These subs1d1ary records should include an mvcntory of land. buildings and equipment ovmed by the School D1stnct and should include. but may not be hm1tcd to. date acquired, acquisition cost. estimated replacement cost. locat10n and descnpt1on. Detailed records ,hould be mamtamed of all add1t1ons and deletions to the General F1'\ed Asset, Account Group lll FEDtRAL AWARD FINDINGS AND QUESTIONED COSTS No matters were reported
-2-