-rA..,A'o.oo,_,.,~,.' ..R \' _, -1:.,n,. l'o. ;{001.;i.~-- ' , ' <, " ,._.' ,' . ,, ,.- : STATE'.OF GEORGIA--. -:DEPARTMENT:OF AUDITS AND ACCOUNTS ' - : ~ ' .. 1J ;- .. - ' ' , ' : - ..,, ~ ' / - ' ' I 1 " ,,_. .... f ,. ' ., f .. ,,._ , ' ' ',, .. ' ..... 1 ,,. ,. .- .;,- " I' ', '' ., ' ..._, - l ,,-: .. . ' .. ,. - '~ ., .' LO. NGCOUNTY BOARD ' ~ .O. F, EDUC.ATION . '. ... ',. : . .. ' : '' ' ..., LU' D-O':WI'C,I,/ GEO' R.G.IA '' 1 ' - ' REPORT ON AUDIT ."OF THE FINANCIAL STA~MENTS.', ' ,, \ ' ,, ,~ ,, - FOR THE FISCAL YEAR ENDED JUNE 30, 2002 ~ < _. _. ' ... ._., - .-.._t-; - . .' '' , , . . -,. ' ' . . "- . , ' ' , ..," '"- . ' ' ' ., ,, ' . ; ' 'I'' L ,, . . ' -' --:,., , ' I < . ' Russ~II w. Hil'!t0~. State 'Auditor J ~\ , ,, ' ' >, ,'/ ' ,' ;, . ' ,, ~ , . >' > ,, (~ I .,, '' . - , .. ' ! " I ' . . . " . ' . ' ., .. , . - ~ ,I' 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 w l{lJSSU.I I ll'IITO, STATi: AUOITOn (.110-t) f,')6 2171. 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, -- w.~ ..... ~ 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 Purchaseurces 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~tanllfety 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 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"