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LUMPKIN ,COUNTY BO~RDOF. EDUCATION

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:o.' DAHLONEGA, GEORGIA. : ' . , . .J

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REPORT ON AUDIT ' -

: .-oF THE.FINANCIAL STATEMENTS--

; FbR'THE ilSCAL-YEAR ENDED-JUNE jo; 2002

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Russell W. "Hinton

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LUMPKIN COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

l'INANCIAL

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

EXHIBITS

GENERAL-PURPOSE FINANCIAL STATEMENTS

COMBINED STATEMENTS - OVERVIEW

A

COMBINED BALANCE SHEET

ALL FUND TYPES AND ACCOUNT GROUP

2

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

4

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES ANO

CHANGES IN FUND BALANCES - BUDGET AND ACTIJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

6

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STAITMENTS

7

ADDITIONAL FINANCIAL INFORMATION

COMBINING AND INDIVIDUAL FUND STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

20

F

COMBINING STATEMENl OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

22

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

24

H

COMBINING STATEMENI OF REVENUES, EXPENrnTUR.ES

AND CHANGES IN FUND BALANCES

26

DEBT SERVICE fUND

I

COMBINING BAI ANCE SHEET

28

J

COMBINING STATEMENT OF REVENUES, EXPEND[ I UIU,S

AND CHANGES IN FUND BALANCES

29

K

FIDUCIARY FUND TYPES

STATEMENT OF CHANGES IN ASSETS AND LIABILI rILS

AGENCY FUND

30

LUMPKIN COUNTY BOARD OF EDUCA'I ION - TABLE OF CONTENTS -

Page

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

31

2 SCHEDULE OF STATE REVENUE

33

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

35

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALffi' BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

36

5

BY SITE

37

SECIION fl COMPLIANCE AND INTERNAL CONTROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORD<\NCE WITH OMD CIRCULAR A-133
SECTION m
AUDITEE'S RESPONSE TO PRJOR YEAR FINDINGS AND QUESTIONED COS IS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUES I IONI:D COSTS

SECJION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION! FINANCIAL

Rt1,,H I W. 111:-0 ION
STAT!: AU('ltTOn (40,I\ G5G-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2"4 \VJ..,hmgwn ".ttrcl't ~ \\' ~ullt.:- 214 AIIJntJ Gcorg:1.1 30'~ ~..t-8--t()(J
June 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendent and Members of the LumpJ..m County Board ofEducahon
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen
We have audited the accompanying general-purpose financial statements of the Lumpkin County Bo,ud of Education, as of and for the year ended June 30, 2002, as listed in the table of contents These general-purpose financial statements are the respons1b1llty of the Lumpkin County Board of Education's management Our respons1b1llty 1s to express an opinion on these general-purpose finJnc1JI ~tatements based on our audit
We conducted our audit m accordance with auditing standards generally accepted m the United State~ of Amenca and the standards applicable to financial audits contained in Government Audning Standards, issued by the Comptroller General of the United States Those standards require that we pldn and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmatenal misstatement An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements An audit also includes assessing the accounting pnnc1ples used and significant estimates made by management, as well as evaluating the overall financial statement presentation We believe that our audit provides a reasonable basis for our opinion
As dcscnbed in the notes to the general-purpose financial statements, the Board of Education's finJnc1al statements have been prepared using certain accounting prJCt1ces and policies which, in our opinion, vary in some respects from generally dCcepted accounting pnnc1ples These variances are dcscnbed as follows

2002ARL-13

The general-purpose financial statements of the Board of Educat10n did not contam a General Fixed Assets Account Group to account for property and eqmpment owned by the Board of Education which should be mcluded to conform to generally accepted accountmg pnnc1ples.
School activity accounts mamtamed at the md1v1dual schools are not mcluded m the general-purpose financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should be mcluded m the general-purpose financial statements
The aggregate effects on the general-purpose financial statements of these vanances or om1ss10ns have not been determmed, but are believed to be matenal
In our opm1on, except for the effects on the general-purpose financial statements of the matters referred to m the precedmg paragraph, the general-purpose financial statements referred to above present fairly, m all matenal respects, the financial pos1t10n of the Lumpkm County Board of Educallon as ofJune 30, 2002, and the results of its operat10ns for the year then ended, m conformity with accountmg pnnc1ples generally accepted m the Umted States of Amenca
In accordance with Government Aud1tmg Standards, we have also ISsued our report dated June 5, 2003, on our consideration of the Lumpkm County Board of Education's mtemal control over financial reportmg and our tests of its compliance with certam prov1s10ns of laws, regulat10ns. contracts and grants. That report 1s an mtegral part of an audit performed m accordance with Government Aud1tmg Standards and should be read m conJunctlon with tlus report m cons1denng the results of our audit
Our audit was performed for the purpose of formmg an opm10n on the general-purpose financial statements of the Lumpkm County Board of Educat10n taken as a whole The accompanymg combmmg and md1Y1dual fund statements (E,h1b1ts E through K) and the financial schedules (Schedules 1 through 5), which mcludes the Schedule of Expenditures of Federal Awards as required by U S Office of Management and Budget Circular A-I 33, Audit~ ofStates, Local Governments, and Non-Profit Orgam=atwns, are presented for purposes of add1t1onal analysis and are not a reqmred part of the general-purpose financial statements Such mformat1on has been subJected to the aud1tmg procedures applied m the audit of the general-purpose financial statements and m our op1mon, except for the effects of the matters referred tom the third paragraph, such mformallon 1s fairly stated, mall matenal respects, m relat10n to the general-purpose financial statements taken as a whole
2002ARL-13

A copy ofth1s report has been filed as a permanent record m the office of the State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Sechon 506-24
Respectfully submitted,

RWHas 2002ARL-13

State Auditor

I UMPKIN COUNTY BOARD or EDUCATION

LUMPKIN COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND IXPES AND ACCOUNT GROUP JUNE 30 2002

=
Cash alld Ca.sh Equivalents
Investments
Accounts Receivable
lnventooes Food Donated CommodrtJes Purchased Food
Amount Avallable 1n Debt Service Fund
Amounl to be Provided in Future Years For Payment of Bond Debt Capital Lease Agreements
Total Assets

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 2 786 407 78 s

9741568 $ 7,296 061 18

54 56

2,134 882 46

217 208 50

9 255 67 6 753 03

s 4 921 290 24 $

330 632 88 s 729611574

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Contracts Payable Retainages Payable Deferred Revenue Funds Held for Others Capital Lease Agreements General Obligation Bonds Payable
Total Llab1llbes
FUND EQUITY
Fund Balances Reserved For Arbitrage Rebale Tax For Debt Service For lnventones Food Donated Commoclrtle! Purchased Food For Purpose of Bond Issue For State Capital OuUay Pro,acts Unreserved Undes1i:;nated
Total Fund Equrty

s

564 943 68 S

1 863 273 93

43 145 32 13158398

42 540 52

1e 024 oo
640 808 04

s 242821761 S

217 269 82 S _ __c6,c5c,9s,Bc,3c,,2_,04c,___

s
s 2 93 072 63 s 2.493 072 63 s

g 255 67 6,753 03
$
97 354 36
ti3 363 06 s

2 961 400 91 230 009 45
3 ,u-1 873 34
6 636 283 70

Total Uabd1ties and Fund Equity

s 4 921 290 24 $

330 632 88 s 7296.11574

The notes to the general-purpose financial statement.! are an integral part ol th1s statement 2-

DEBT SERVICE
FUND

FIDUCIARY FUND TYPE
AGENCY FUND

s

7t.4,535 04 s

135 26

6 953 922 78

457 085 66

ACCOUNT GROUP
GENERAL LONGTERM
DEBT

TOTALS

jMemorandum On!:t:}

JUNE 30 2002

JUNE 301 2001

s 10 974 554 94 s 12 988 807 84

6 953 977 34

10 695,816 62

2 809,156 62

278275115

s a 205 523 "a

9 255 67 6 753 03
8 205 523 48

13 407 50 7 944 56
6 887 881 94

s 8 205 523 ,48 s

13159,47652 5 000 000 00

13159 ,476 52 5 000 000 00

1491711806 720 23

135 26 s 26 365 000 00 s ,4711869760 s 48 294 448 00

s

104 10

s

608 089 00

590,753 70

1 994 857 91

190811010

2 220 71

19 024 00

770 751 54

640 808 0,4

1 085 731 86

'112 540 52

26 315 14

s

135 26

135 26

135 28

s 5 000 000 00

5,000 000 00

720 23

21 385 000 00

21 365 000 00

21 805 000 00

s

135 26 s 26 365 000 00 s 29 670 454 73 s 26 189 B42 64

s 8 205 523 48
000
s 8,205 523 48 s 8 205 523 48 s

s

88 8S4 58

s a 205 523 .c0

6 887 881 94

9 255 87 6 753 03 2 961 400 91 230 009 45

13 407 50 7 944 56 12 867 379 83

0 035 300 33

2 239 106 95

s 17 448 242 87 s 22 104 605 36

13526 s 26 365 000 00 s 4711869760 s '116 294 4'118 00

3

LUMPKIN 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 lnstrucbon Support Servrces Puptl Services
Improvement or lnstruct10nal S81'V1Ce5 Educat10nal Mech.a ServlC&S
General Adm1mstrat1on
School Admm1strat1on
Business Admin1stratLon Maintenance and Operation of Plant Student Transportation Serv1ees Central Support Services Other Support SeMCes Food SeMCeS OperabOn Community Se.MCOs Operations Caprtal Outlay Debt SeMCe Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES (USES\
Accrued Interest on Bonds Sold Proceeds from Genoral Obhga!IOn Bonds
Par Value Capital Leases Operating Transfers In Oporal1n9 Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures end Other Fananc:mg Uses
f-UNP BALANCE JULY 1
Food lnven1ory Net Change In Pe,1od Donated Commod1t1es Purchased Food
FUND BALANCE JUNE 30
The notes to the general-purpose finanoal statements are en mtegral part of this statement
-4-

GENERAL FUND

SPECIAL REVENUE
FUND

s 14 130,453 88 s
26 &41 90 8 029 395 78
246 583 65
s $ 22 433 075 21

467 558 59 1 750 643 OJ
419 557 23
2 637 758 85

$ 14 742 689 59 s
794 976 64 51302454 502 524 61 29071169 132661928 194 483 07 1 771 910 28 1 594 529 78 135 607 92
31 241 71 62 919 88
31 055 43
720 23 10 77

, 226 629 98
21373612 84 873 33 344 70 16 880 66
3091526
-45 432 74 952,185 97
4 824 23

s 21 993 025 42 s

s

440 049 79 s

2 575 822 99 61 935 86

$

s

-35 ODO 00

$

-35 000 00 $

$

405 049 79 $

2 088 022 84

35 000 00
35 000 00
&6 935 66 21 772 5G
--4 153 83 -1 191 53

s 2 493 072 63 $ _ _.,,.:a13a.3:;;6"3"06"'"

EXHIBIT ~aN

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only)
YEAR ENDED

JUNE 30 2002

JUNE 30 2001

$

367 132 SO

$ '\496514497 $ 1621369663

s 2,504,161 19

1 777 284 93 10 533 556 97

1492,12040 971117077

2 143 180 19

154 417 69

2 963 738 76

1 634 754 83

s 251031269 S 265857888 $ 3023972563 S 29,051,94263

s

345 059 69

13 421,110 66
s
s 13 766 170 35 s s -1125585766 $

s 15 969,319 57 s 16 189 075 33

1 008,712 76 597 897 87 502 869 31 307 592 35
1 326 619 28 539 542 76
1 771 910 28 1 625 445 04
135 607 92 76 674 45
1015105 85 4 824 23
13 452 166 09

1436770 53 85 908 57
440 306 09 284 655 18 1 359 916 39 312 069 31 1 509 521 61 140342971 148 728 43
63 869 83 944 236 47
2 735 70 10 784 040 50

440,000 OD 111527000
454 00

440 720 23 111528077
<54 00

66164267 678 748 75
2962

1 555 724 00 $ 39 890 742 76 s 36 305 884 69 110285488 $ -9 65101713 s -7 253 942 06

s 5 000 000 00 s
-214 786 66
s 4 785 213 34 s

$ 214 786 66
214 786 66 $

s
5 000 ODO 00 249 786 66 -249 786 66
5 000 000 00 s

33 226 67 8 900 000 00
517 980 63 -517 980 63 8 933 226 67

s -6 470 644 32 s
13 106 928 02

1 317,641 54 $ -4 651 017 13 $ 1 679 284 61

6 887 881 94

22 104 605 36

20 422 308 66

-4 153 83 -1 191 53

191608 1 096 01

s

6 636 283 70 $

e,2051523 48 s 11 448 242 a1 s 22 104 605 36

- 5-

LUMPKIN COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - (NON-GAAP BASIS}
GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30 2002

EXHIBIT "C"

GENERAL FUND

BUDGET

ACTUAL

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenuos

$ 13 559 642 00 $ 35 910 00
6 377,352 00 210 673 00

14 130,453 88 2664190
8,029 395 76 246 563 65

$ 22.163 777 00 $ 22,433,075 21

EXPENDITURES
Cwrent Instruction Support Services Pupil Services lmPfovement of lnstrucbonal Services Educational t/ted1a Sel'Vlces General Adm1rnstrahon School Admm1strat1on Business Adm1111strat1on Mamtenanc:e and OperatJOn of Plant Student Transportation Serv1ces Central Support Services Other Support Serv,ces Food SeMCeS Operabon Commurnty Services Operations
Capital Outlay Debt Service
Total Expendrtures
Excess of Reverrues over (under) Expenditures

$ 14 669 061 00 $ 14 742,689 59

745,731 00 467,294 00 456162 00 292 307 00 1,316,075 00 212 216 00 1616,69800 1,449,17700 152,526 00
35 525 00 61,892 00

794 976 64 513 024 64 502 524 61 29071169 1,326,819 26 194 463 07 1 771 910 26 1 594 529 76 135,607 92
31 241 71 62 919 86

127,474 00

3105543 731 00

s 22 044 160 00 $ 21 993 025 42

$ 139 617 00 $ 440 049 79

OTHER FINANCING SOURCES {USES!

Other Sources Other Uses

$

-35 000 00 s

-35 000 00

Total Olhor F1nanong Sources (Uses) $ -35.000 00 $

-35.000 00

Excess of Revenues and Other Fmanang Sources

over (under) Expenditures and Other Financing

Uses

$

104 617 00 $

405 049 79

FUND BALANCE JULY 1 2001
AdJustmonts Food lnventcwy - Net Change m Penod
Donated Commodrties Purchased Foods

2,363,164 00 12 668 00

2,066 022 64

FUND BALANCE JUNE 30 2002

$ 2 460 439 00 $ 2,493,072 63

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 510 700 00 $ 467 558 59
1 850,733 00 1 750 643 03

418 611 00

419 557 23

$ 2.760,04400 s 2,637,756 65

s 1 306 509 00 $ 1 226 629 96

216,711 00 67 555 00
21 769 00

21373612 64,673 33 344 70 16,660 66

30 600 00
46 091 00 1 000, 122 00
6 000 00

30,915 26
45,432 74 952,165 97
4,624 23

s 2.717.357 00 s 2 575,822 99
$ 62 687 00 $ 61 935 66

$ 35 000 00 $

35 000 00

$ 35 000 00 $ 35,000 00

$ 97 687 00 $ 26 550 00 4 573 00

96 935 66 21 772 56
-4 153 83 -1191 53

$ 13061000 $ 11336306

The notes to the general-purpose financial statements are an Integral part or lh.Js statement
-6-

LUMPKIN COUNTY BOARD OF EDUCATION

EXIIIBil "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The Lumpkm County Board of Education (School D1stnct) was estabhshed under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a Supenntendent appomted by the Board The School D1stnct 1s orgamzed as a separate legal enl!ty and has the power to levy taxes and issue bonds. Its budget 1s not subJccl to approval by any other entity Accordmgly, the School D1stncl 1s a pnmary government and consists of all the orgamzallons that compose its legal entity
FUND ACCOUNTING
The School D1stnct uses funds and an account group to report on its financial pos1l1on and the results of1ts operat10ns Fund accountmg 1s designed to demonstrate legal comphance and to md financial management by segregatmg transactions related to certam governmental functions or act1v1ties A fund 1s a separate accountmg entity with a self-balancmg set of accounts An account group 1s a financial reportmg device designed lo provide accountab1hty for certam assets and liab1lit1es that are not recorded m the funds because they do not directly afTect expendable avm Iable financial resources
General Fixed Assets are recorded as expenditures m the vanous funds at the time of purchase A General Fixed Assets Account Group 1s not presently mmntamed by the School D1stnct To conform to generally accepted accountmg pnnc1ples, a General Fv,ed Assets Account Group should be mamtamed for reportmg the cost of assets acquired by governmental fund types
Although "school ac1Iv1ty accounts" are mamtamed at the md1v1dual schools, neither the assets, liab1lit1cs and fund equity, nor the revenues. expenditures and changes m fund balances of these accounts are reflected m these financial statements To conform to generally accepted accountmg pnnc1ples, these accounts should he recorded m the general-purpose financial statements
The general-purpose financial statements account for all State, Federal, Ta,es and Other funds under control of the School D1stnct, m compliance with generally accepted accountmg pnnc1ples applicable to governmental umts, 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 educat10nal act1v1t1es Governmental Fund Types mclude
GENERAL FUND - the fund used to account for all financial resources of the School D1stnct except those required to be accounted form another fund These transactions relate to resources obtamed and used for services provided by a board of education

- 7-

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for maJor capital proJects) that are legally restncted to expenditures for specified purposes These funds are received pnmanly from the Georgia Department of Education and from the Federal government to accomplish specific educat10nal objectives
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acqms11Ion or construction ofmaJor capital fac1ht1es
DEBT SERVICE FUND- the fund used to account for the accumulallon ofresourccs for, and the payment of, general long-term pnnc1pal, mtcrest and paymg agent fees
FIDUCIARY FUND TYPE - the fund used to account for assets held by a government urnt m a trustee capacity or as an agent for md1v1duals, pnvate organ1zat1ons, other government umts and/or other funds This fund mcludes.
AGENCY FUND - the fund used to account for assets held m a fiduciary capacity for other funds, governments, or md1v1duals
ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reportmg device used to account for general obhgal!on debt outstandmg and capital lease obhgallons
BASIS OF ACCOUNTING
The accountmg and financial reportmg treatment apphed to a fund 1s detcrmmed by its measurement focus All governmental funds are accounted for usmg a current financial resources measurement focus With this measurement focus, only current assets and current hab1ht1cs generally are mcluded on the balance sheet Operatmg 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
Liab1hlles which are expected to be financed from available spendable resources arc reported as hab1ht1es m the governmental funds Other hab1hlles, which are not expected to be financed from available spendable resources, are reported m the General Long-Tenn Debt Account Group
Agency funds are purely custodial m nature and do not mvolve measurement ofrcsults ofopera!lons
Governmental funds are accounted for using the modified accrual basis of accounting under which
Revenues are recogrnzcd when suscephble to accrual (1 e , when they become both measurable and available) "Measurable" means the amount of the transact10n can be determined and "available" means collectible w1thm the current penod or ~oon enough thereafter to be used to pay hab1hhes of
- 8-

LUMPKIN COUNTY BOARD OF EDUC'ATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
the current penod The School D1stnct considers receivables collected w1thm sixty days after yearend to be available Property taxes, sales taxes and mterest are considered to be susccpuble to accrual Nonexchange transacllons, m which the School D1stnct gives (or receives) value without d1rectly rece1vmg (or g1vmg) equal value m exchange, melude property taxes, local opt10n sales taxes, mtergovemmental grants and donations Revenue for property taxes 1s recogruzed m the fiscal year for which the taxes are levied Revenue from sales taxes 1s recogmzed m the fiscal year the resources are received or suscepuble to accrual Revenue from grants and donations 1s recogmzed m the fiscal year m which all ehgib1hty requirements have been sausfied
Expenditures arc generally recogmzed when the related fund hab1hty 1s mcurred
A substantial number of personnel of the School D1stnct were employed for a one hundred and nmety day penod beginnmg m August 2001 and endmg m early June 2002 Employment contracts for these employment penods typically specify that compensation be paid m twelve equal monthly payments beg1nnmg m September 2001 and end mg m August 2002 State grants to fund the State's share of these contracts are disbursed to the School D1stnct m the same twelve month penod In accordance with generally accepted accountmg pnnc1ples, salary and frmge benefit expenditures and the related revenue from the State to fund these contracts are recorded m the fiscal pcnod covered by these financial statements.
BUDGET
The Lumpkm County Board of Education's budget 1s a complete financial plan for the School D1stnct's fiscal year and 1s based upon estimates of expenditures together with probable fundmg sources There 1s no statutory proh1b1t1on regardmg overexpcnd1ture of the budget at any level The budget for all governmental funds 1s prepared by fund, funcuon 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 accountmg pnnc1ples
The budget process begms when the School D1stnct's admm1strallon prepares a tental!ve budget for the Board's approval After approval ofth1s tentallve budget by the Board, such budget 1s advemscd al least once ma newspaper of general c1rculallon m the locality At the next regular meetmg of the Board after advertisement, the Board receives comments on the tentallve budget, makes rcv1s1ons as necessary and adopts a final school budget This final budget 1s then submitted, m accordance with prov1s1ons of the Quahty Basic Educal!on Act, OCGA Secuon 20-2-167(c), to the Georgia Department of Educat10n The Board may mcrease or decrease the budget at any time dunng the year All unexpended budget authonty lapses at fiscal year-end

-9-

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash eqmvalents consist ofcash on hand. demand deposits and short-tenn investments with ongmal matunt1es of three months or less from the date of acqu1S1t1on m authonzed financial mshtutlons Georgia Laws OCGA 45-8-14 authonze the School D1stnct to deposit its funds m one or more solvent banks or msured Federal savmgs and loan associations
INVESTMENTS
COMPOSITION OF INVESTMENTS Investments made by the School D1stnct m nonpart1c1patmg mterest-earnmg contracts (such as certificates of deposit) and repurchase agreements are reported at cost Part1c1patmg mterest-earnmg contracts and money market mvestrnents with a matunty at purchase ofone year or less are reported at amortized cost Both part1c1patmg mterest-earnmg contracts and money market mvestrnents with a matunty at purchase greater than one year are reported at fair value The Official Code of Georgia Annotated Section 36-83-4 authonzes the School D1stnct to mvest its funds and m selectmg among options for mvestment or among mst1tut1onal bids for deposits, the highest rate ofreturn shall be the obJecllve, given equivalent cond11tons of safety and hqmd1ty Funds may be mvested m the followmg
(I) Obhgallons issued by the State of Georgia or by other states,
(2) Obhgattons issued by the United States government,
(3) Obhgatlons fully msured or guaranteed by the United States government or a United States government agency,
(4) Obhgatmns of any corporation of the Umte<l States government,
(5) Pnmc banker's acceptances,
(6) The Local Government Investment Pool admm1stered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other pohttcal subd1v1S1ons of the State of Georgia
RECEIVABLES
Receivables consist of grant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from mfonnallon available Receivables
- 10 -

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STA'I EM EN'I S

JUNE 30, 2002

Note I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

PROPERTY TAXES

The Lumpkin County Board ofComm1ss10ners fixed the property tax levy for the 2001 tax digest year (calendar year) on October 11, 2001 (levy date) Taxes were due on December 31, 2001 (hen date) Taxes collected w1thm the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue m fiscal year 2002 The Lumpkm County Tai.. Commissioner b1 lls and collects the property taxes for the School D1stnct, withholds 2 5% ofta.xes collected as a fee for tax collcct10n and remits the balance oftaxes collected to the School D1stnct Property tax revenues dunng the fiscal year ended June 30, 2002 for maintenance and opcrat10ns amounted to S7,716,999 I 5 and for school bonds amounted to $54 95

The tax millage rate levied for the 200 I tax year (calendar year) for the Lumpkm County Board of Educat10n was as follows (a mill equals $1 per thousand dollars of assessed value)

School Operations

~mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue dunng the year amounted to $2,504, I06 24 and 1s to be used for capital outlay for educational purposes or debt service This ~ales tax was authonzcd by local referendum and the sales tax must be re-authonzed at least every five years

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used m the preparalion of meals are reported on the Combined Balance Sheet at their Federally assigned value Purchased foods invcntones are reported on the Combined Balance Sheet at cost (first-m, first-out) Donated food commod1t1es arc recorded as revenues and expenditures at the time commodity items are received Purchased foods inventones are recorded as expenditures at the time of purchase The invcntones reported on the balance sheet for donated food commodities and for purchased foods are equally offset by reservations of fund balance which md1cates that these amounts do not constitute "available spendable resources" even though they are a component of net current assets

- 11 -

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
GENERAL OBLIGATION BONDS
The School D1stnct issues general obhgatlon bonds to provide funds for the acqu1s1tlon and construction ofmaJor capital fac1ht1es Bond premmms and discounts, as well as issuance costs, are recogmzed in the financial statements dunng the year bonds arc issued General obhgatlon bonds are direct obhgat10ns and pledge the full faith and credit ofthe government The outstanding amount of these bonds 1s recorded in the General Long-Term Debt Account Group
INTERFUND TRANSACTIONS
The School D1stnct has the following types of interfund transactions
Reimbursements of expenditures 1mt1ally made from a fund that are properly apphcable to another fund arc 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 transactions other than reimbursements
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are capt10ned "Memorandum Only" to indicate that they arc 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 consohdation lntcrfund chminat10ns have not been made in the aggrcgal!on of this data
Note 2 DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGAJ Section 45-8-12 provides that there shall not be on deposit at any llme in any depository for a l!me longer than ten days a sum of money which has not been secured by surety bond, by guarantee of insurance. or by collater.il The aggregate of the face value of such surety bond and the market value of sccunt1es pledged shall be equal to not less than 110 percent of the pubhc funds bemg secured after the deduction ofthe amount ofdeposit msurnnce
If a depository elects the pooled method (OCGA 45-8-13 I) the aggregate of the market value ofthe
sec unties pledged to secure a pool ofpubhc funds shall be not less than 110 percent ofthe daily pool balance OCGA Section 45-8-11 (b) provides an officer hold mg public funds may, in his d1scrct10n, waive the requirement for secunty m the case ofoperating funds placed m demand deposll checking accounts
Acceptable secunty for deposits consists of any one of or any combmat10n of the following

- 12 -

LUMPKIN COUNTY BOARD OF EDUCA'I ION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2 DEPOSITS AND INVESTMENTS
(I) Surety bond signed by a surety company duly quahfied and authorized to transact busmess w1thm the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of mdebtedness or other direct obhgallons of the Umted States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of mdebtedness or other obligations of the counties or mumc1paht1es of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, prov1dmg that the statute that created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of mdebtedness, or other obhgallons of a subs1d1ary corporat10n of the Umted States government, which are fully guaranteed by the Umted States government both as to principal and mterest or debt obhgat1ons issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credll Bank, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Assoc1allon, and the Federal Nallonal Mortgage Assoc1at10n
CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $11,684,053 65 The amounts of the total bank balances are classified mto three categories of credit risk
Category I - Cash that 1s msured (e g, Federal depository msurance) or collaterah7ed with secunlles held by the School D1stnct or by the School D1stnct's agent m the School District's name
Category 2 - Cash collatcrahzed with securities held by the plcdgmg financial mst11ut1on's trust department or agent m the School District's name
Category 3 - Uncollaterahzed deposits (This mcludcs any bank balance that 1s collaterahzed with secuntles held by the pledgmg financial mst1tut1on, or by its trust deparllnent or agent but not m the School District's name )
The School D1stnct's deposits arc classified by nsk category at June 30, 2002, as follows

- 13 -

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2. DEPOSITS AND INVESTMENTS

Risk Categorv

Bank Balance

I

$ 216.661 23

2

3,453,306 06

3

8,014,086 36

Total

$I 1,684 053.65

CATEGORIZATION OF INVESTMENTS At June 30, 2002, the carrying value of the School D1stnct's total investments was $6,953,977 34 which 1~ matenally the same as fair value This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State of Georgia, Office ofTreasury and Fiscal Scrnces which are not requucd to he categonzcd since the School D1stnct did not own any specific 1denufiable ~ecunues in the pool The investment pohcy of the State of Georgia, Office of Treasury and F1sc<1l Services for the Local Government Investment Pool (Pnmary L1qmd1ty Portfoho) does not provide for investment in denvatlves or s1m1lar investments A descnpt1on ofthe Pnmaf") L1qu1d1ty Portfolio 1s as follows

The Pnmary L1qmd1ty Portfolio consists of Georgia Fund I. which 1s a combination local and state go\crnment investment pool, and Fund 6 Georgia Fund l 1s a stable net asset value investment pool which follow, Standard and Poor', cntena for AAAm rated money market funds The pool is not rcg1,tered with the SEC as an investment company but docs 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 hkc pool The pool's pnmary ob1ecuves arc safety of capital, investment income, liqu1d1ty and d1ver,1ficauon while maintaining pnnc1pal ($1 00 per share value) Net ~set value 1s calculated weekly to ensure stab1hty The pool d1stnbutes earmngs (net of management fees) on a monthly ba,1s and values part1c1pant's shares sold and redeemed based on $ I 00 per share Pooled cash and La,h equivalents and investments arc reported at cost which approximate, fatr value The pool does not 1~~ue any legally binding guarantees to support the value of the shares Part1c1pauon in the pool 1s voluntary and depo,1ts consist of funds from local governments, operating and trust funds of Georgia', ~tale agenc1e~, colleges and umvers1ucs, and current operating funds of the State of Georgia', General Fund

lnve~tmcnts in Georgia Fund I and Fund 6 are dtrected toward short-term instruments ~uch as U S Treasury obhgat1ons, secunt1es issued or guaranteed as to pnnc1pal and intere~t by the U S Government or any of 1ts agencies or instrumentalitle~, banker's acceptances and repurchase agreements The weighted average matunty of Georgia Fund 1 may not exceed 60 days The weighted average maturity for Georgia I-und I on June 30. 2002, was O 12 years The average 1me,tment durauon for I-und 6 on June 30. 2002. was O75 years

- 14 -

LUMPKIN COUNn' BOARD OF EDUCATION

EXHIBI I "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 3 NON-MONETARY TRANSACTIONS

The School D1stnct receives food commod1t1es from the Umted States Department of Agriculture (USDA) for school breakfast and lunch programs These commod1\les are recorded at their Federally assigned value. See Note I - Inventories

Note 4 RISK MANAGEMENT

The School D1stnct 1s exposed to vanous nsks of loss related to torts, theft of, damage to, and destruction of assets, errors or om1ss1ons, Job related illness or mJunes to employees, acts of God and unemployment compensation

The School D1stnct has obtamed commercial msurance for nsk ofloss associated with torts, assets, errors or om1ss1ons and acts of God The School D1stnct has neither s1gmficantly reduced coverage for these nsks nor mcurred losses (settlements) which exceeded the School D1stnct's msurance coverage m any of the past three years

The School D1stnct 1s self-msurcd with regard to unemployment compensat10n claims The School D1stnct accounts for claims w1thm the General Fund with expenditure and hab1hty bemg reported when 1t 1s probable that a loss has occurred, and the amount of that loss can be reasonably estimated

Changes m the unemployment compensation claims hab1hty dunng the last two fiscal year; are as follows

Begmmng of Year Liab1hty

Claims and Changes m Esl!mates

Claims Paid

End of Year L1ab1htv

2001 2002

$

000 s

0 00 $

0 00 s

0 00

$

000 $

417 00 $

417 00 $

0 00

The School D1stnct part1c1pates m the Georgia School Boards Associat10n Workers' Compensation Fund, a pubhc entity nsk pool organized on July 1, 1992, to develop, implement, and administer a program ofworkers' compensat10n self-insurance for its memberorgamzat1ons The School D1stnct pays an armual premmm to the Fund for its general msurance coverage Add1\lonal insurance coverage 1s provided through an agreement by the Fund with the Umted States F1dehty and Guaranty Company to provide coverage for potential losses sustained by the Fund in excess of $350,000 00 loss per occurrence, up to the statutory hm1t

The School D1stnct has purchased a surety bond to provide add11!onal insurance covernge as follows

Pos1t10n Covered

Amount

Superintendent

$ 50,000 00

- 15 -

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 5 OPERATING L[ASES

Lumpkin County Board of Lducatton has entered into vanous leases as lessee for copters, portable butldmgs and computers These leases are considered for accountmg purposes to be operatmg leases Lease expenditures for the year ended June 30, 2002, amounted to $57.256 68 Future mmunum lea<;e payments for these leases are as follows

Year Endmg

Amount

2003 2004 2005

$ 41,953 56 37,089 82 8,048.60

Total Note 6 GENERAL LONG-TERM DEBT

$ 87,991 ,98

CAPITAL LEASES The Lumpkin County Board of Educat10n ha, entered mto vanou, lease agreements as lessee for modular cla,srooms and renovation proJects mcludmg a Qualified Zone Academy Bond lease. The,e lea,c agreements qualify as capital leases for accountmg purposes and, therefore. have been recorded at the present value ofthe future mm1mum lease payment, as ofthe date oftheu mception

GENERAL OBLIGATION DEBT OUTSTANDING General Obltgat10n Bonds currently outstandmg are as follov,,s

Pumosc

Interest Rates

Amount

General Government - Senes 1996 General Government - Senc, 1997 General Government - Sene~ 2000

3 85%- 4 75% 4 95%- 5 35%
48%

$ 3,640,000.00 8,825.000 00 8,900.000 00

$2 I,365.000.0Q
The changes m General Long-Term Debt dunng the fiscal year ended June 30, 2002, were as follows

- 16 -

LUMPKIN COUNTY BOARD OF EDUCATION

EX1IIBI1 "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 6 GENERAL LONG-TERM DEBT

Balance July I, 200 I

Capital Leases

General Obhgat1on
Bonds

Total

s

72023 $21,805,000 00 $21,805,720 23

Add111ons Capital Leases

5,000,000 00

5,000,000 00

Deductions Debt Retired

720 23

440 000 00

440,720 23

Balance June 30. 2002

$ ~.QQ0,!lllQ.QO $2 J,1(i5_ 000.00 S2G,3G5,000,00

At Junc 30, 2002, payments due by fiscal year which mcludes principal and mterest for these items are as follows

Fiscal Year Ended June 30

Capital Leases

General Obhgat10n
Bonds

Total Debt

2003 2004 2005 2006 2007 2008 - 2012 2013-2017

S 5,000,000 00

$ 3,101,780 00 3,155,041 25 3,205,668 75 3,258,342 50 3,312,603 75 6, I97,426 25 6,228,287 50

$ 3,101,780 00 3,155,041 25 3,205,668 75 3,258,342 50 3,312,603 75 6,197,426 25 11,228,287 50

Total Pnnc1pal and Interest $ 5.Q.00 000 0..0 $28,459,150 00 $13,459,150.0Q

Note 7 ON-BEHALF PAYMENTS

The School D1stnct has recogmLed revenues and expenditures m the amount of S294,124 67 for health msurance and rellrement contnbut10ns paid on the School District's beh..1lfby the followmg State Agencies

- 17 -

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBI f "D"

NOTES TO THE GENERAL-PURI'OSE HNANCIAL S fAfEMENTS

JUNE 30, 2002

Note 7 ON-BEHALF PAYMENTS

Georgia Department of Education Paid to the Georgia Department ofCommuruty Health For Health Insurance of Non-Certified Personnel In the amount of$257,699.15

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (IRS) Employer's Cost In the ainount ofS2,978 52

Office of Treasury and Fiscal Services Paid to the Pubhc School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the ainount of $33,447 00

Note 8 SIGNIFICANT COMMITMENTS

The following 1s an analysis ofs1gmficant outstanding construction or renovation contracts executed by the School D1stnct as of June 30, 2002, together with fun<lmg available

Pro1ect

Unearned Executed Contracts

Funding Available From Stale

High School Concessions Stand M1<ldle School Renovallons SAO! S-693-065

$ 79,342 00 2,578,432 J4 1,742,307 95
s 4,400,ogz..Q2

$ 2,589,576 00
s 2,589 576 oo

The amounts descnbed in this note are not reflected in the general-purpose financial statements

Note 9 CONTINGENT LIABILITIES

Amounts received or receivable pnnc1pally from the Federal government arc suhJect to audit and review by grantor agencies This could result in requests for reimbursement to the granter agency for any expenditures which are disallowed under grant tem1s The SlhooJ D1stncl bchcves that such d1saJlowances, 1f any, w1Jl be 1mmalcnaJ to its ovcralJ financial pos11Ion

- I8 -

LUMPKIN COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTFS TO THE GENERAL-PURPOSE FINANCIAL STATEMEl'ffS

JUNE 30, 2002

Note 10 RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substanllally all teachers, adm1mstra1Ive and clencal personnel employed by local school d1stncts are covered by the Teachers Rellrement System of Georgia (TRS), which 1s a cost-shanng multiple employer defined benefit pens10n plan TRS provides service rellrcmcnl, d1sab1hty rellrement and survivors benefits for Its members m accordance with State statute The Teachers Reurement System of Georgia issues a separate stand alone financial audit report and a copy can be oblamcd from the Georgia Department of Aud!ls and Accounts

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School D1stnct who are covered by TRS arc required by State statute to contnbute 5% of their gross eammgs to TRS The School D1stnct makes monthly employer contnbut10ns lo IRS at rates adopted by the IRS Board of Trustees m accordance wllh State statute and as advised by their mdependent actuary The reqmred employer contnbutJon rate 1s 9 24% and employer contnbullons for the current fiscal year and the preceding two fiscal years arc as follows

Fiscal Year

Percentage Conlnhuted

Required Contnbut10n

2002 2001 2000

100% 100% 100%

$1,216,481 16 S1,370,19943 $1,292,716 98

- 19 -

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

ASSETS
Cash and Cash Equivalents
Accounts Receivable
Inventories Food Donated Commod1l1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

162,207 37 $

0 00

9,255 67 6 753 03

Total Assets

$

178,216 07 $--~-=0=00==

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salanes Payable Expired Grant Balances Payable Deferred Revenue
Total L1ab1ht1es
FUND EQUITY
Fund Balances Reserved For Inventories Food Donated Commod1t1es Purchased Food UnreseNed Undes,gnated
Total Fund Equrty

$

17,837 25

47,436 26

$

65 273 51

$

9,255 67

6,753 03

96 933 86 $

000

s

112 942 56 $

000

Total L1ab1ht1es and Fund Equity

$

178 216 07 $ --~-==0=00==

See notes to the general-purpose financial statements
- 20 -

EXHIBIT "E"

FEDERAL PROGRAMS

OTHER PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 30 2001

$

17,20421 $

179,41158 $

140,64049

$

189,609 37

27,599 13

217,208 50

69,687 64

9,255 67 6 753 03

13,407 50 7 944 56

$

189 609 37 $

44 803 34 $

412 628 78 $ ===2=3=1,;;6;;;;80~19;;,.

$

81,99590

25,308 07
81,27752 s

1 027 88

$

189 609 37 $

$ 2,870 20 41 512 64 44 382 84 $

81,99590 43,145 32 $ 131,583 98
42 540 52
299.265 72 $

40,524 26 140,847 52
2,220 71 26,315 14
209 907 63

9,255 67 $ 6,753 03

13,407 50 7,944 56

$

o oo $ _ _ _~4=20~50~

97 354 36

420 50

000 $

420 50 $

113 363 06 $ _ _..:2c:,1.:.7.:..:72:c.,;56=--

$

189 609 37 S

44 803 34 $

412 628 78 s _ _2_3_1._6..,ao._..1s._

- 21 -

LUMPKIN 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 SeMces Pupil Services Improvement of Instructional Services Educational Media Services General Admm1strat1on Student Transportat1on Services Other Support Services Food Services Operation Community Services Operations
Total Expenditures
Excess of Revenues over (under) Expendrtures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Fmancmg Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change m Penod Donated Commod1t1es Purchased Food

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

79.006 00 $

539.632 88

395 482 95

$ 1 014 121 83 $

189.057 00 189 057 00

$

189,057 00

$

952,185 97

$

952 185 97 s

189 057 00

$

61.935 86 $

000

35 000 00

$

96,935 86 $

000

21.352 06

0 00

-4,15383 -1 191 53

FUND BALANCE JUNE 30

$

112 942 56 $ -~-~0,;,.0:;;0;..

See notes to the general-purpose financial statements - 22

EXHIBIT "F"

FEDERAL
PROGRAMS

OTHER PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

$ $ 1,211,01015
$ 121101015 $

199,495 59 $ 24 074 28
223 569 87 $

467,558 59 $ 1,750,643 03
419 557 23
2 637 758 85 $

362,458 66 1,490,772 76
372,288 22
2,225,519 64

$ 1,037,572 98

28,256 84 $ 84,873 33
344 70 16,880 66 30,915 26
7,342 15

4 824 23

$ 1 21101015 $

$

000 $

$ 185,479 28
38,090 59
223 569 87 $ 000 $

1,226,629 98 $
213,736 12 84,873 33 344 70 16,880 66 30,915 26 45,432 74
952,185 97 4 824 23
2,575,822 99 $
61,935 86 $

1,012,554 63
221,371 85 56,001 86 2,76315 15,991 14 14,059 14 14,603 00
932,508 31 2 735 70
2,272,588 78
-47,069 14

35 000 00

1798063

$

0 00 $

0 00 $

96,935 86 S

-29,088 51

000

420 50

21,77256

47,848 98

-4, 153 83 -1 191 53

1,916 08 1 096 01

$

0 00 $

420 50 $

113 363 06 $ =~.;2;.;.1;;,7.:,:72:;.56:::;:,,,

- 23 -

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

ASSETS Cash and Cash Equivalents Investments Accounts Rece1Vable
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Contracts Payable Retamages Payable
Total L1ab1ht1es FUND EQUITY
Fund Balances Reserved For Arbitrage Rebate Tax For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undes1gnated Total Fund Eqwty
Total L1ab1ht1es and Fund Equity

REGULAR

BOND PROCEEDS

$ 3,553,844 82 $ 2,967,661 35

54 56

$ 315531844 82 $ 2 967 715 91

s

9,242 00

99 729 48 $

$

108 971 48 $

631500 6 315 00

$ 2,961,400 91

$ 3 444 873 34

0 00

$ 3 444 873 34 $ 2 961 400 91

$ 315531844 82 S _ _2_9_6_7,.7"'15""'9""1"=

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

EXHIBIT"G"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

774,555 01 $ 7,296,061 18 $ 9,833,684 31

54 56

5,052,775 05

76 952 06

s

774 555 01 $ 729611574 $ 14963.41142

$

9,782 00 $

19,024 00 $

770,751 54

534 763 56

640 808 04

1 085 731 86

544 545 56 $

659 832 04 $ 1856483 40

$

88,884 58

$ 2,961,400 91

12,867,379 83

s

230,00945

230,009 45

000

3 444 873 34

15066361

s

230,009 45 $ 6,636,283 70 $ 13,106,928 02

s

774 555 01 $ 729611574 $ 1496341142

- 25 -

LUMPKIN COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30. 2002

REVENUES
State Funds Other Funds
Total Revenues
EXPENDITURES
Current Support Services Business Adm1n1strat10n
Capital Outlay Land and Land Improvements Building and Building Improvements
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from General Obhgat1on Bonds Par Value
Capital Leases Operabng Transfers In Operating Transfers Out
Total Other Financing Sources (Uses)
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
FUND BALANCE JUNE 30

REGULAR

BOND PROCEEDS

$

67 204 36 $ 2,075,575 61

$

67 204 36 $ 2 075 575 61

s

345,059 69

1 363 420 48 $ $ 1.708 480 17 $ $ -1 641 275 81 $

106 258 58 106.258 58 1969,31703

$ 5,000,000 00

1,085,615 00 $

644,835 58

-1 150 129 46

-12 609 016 11

$ 4 935 485 54 $ -1196418053

s 3,294,209 73 $ -9,994,863 50

150 663 61

12.956,264 41

3 444 873 34 $ _ _,2,..,.;;.96;;,1"',4"'0"'0""9;;,1""

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

EXHIBIT "H"

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS

YEAR ENDED

JUNE 30, 2002

JUNE 30, 2001

s

367,13250 $

---~4~00~2=2~

$

367 532 72 $

367,13250 $ 214318019
2,510,312 69 $

1,798,58775 79725145
2,595,839 20

$

345,05969 $

133,167 51

s 1195143160

1342111066

371,396 28 10,150,953 19

$ 11 951 431 60 $ 13,766,170 35 $ 10,655,516 98
s -11,583,898 88 $ -11255857 66 $ -8 059 677 78

$ 8,425,636 65

$ 5,000,000 00

$ 11,816,451 67

13,546,902 25

8,428,369 90

-2 543 34

-13 761 688 91

-7 928 369 90

$ 11,813,908 33 $ 4,785,213 34 $ 8,925,636 65

s

s 230,009 45 $ -6,470,644 32

865,958 87

000

13,106,928 02

12,240,969 15

$

23000945 $ 6,636,28370 $ 13,106,92802

- 27 -

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

EXHIBIT "I"

ASSETS Cash and Cash Equivalents Investments Accounts Receivable

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2002

JUNE 30, 2001

$

159 21 $

794.375 83 $

s 794.535 04

808.296 16

6.953,922 78

6.953.922 78

5.643.041 57

457 065 66

457 065 66

436 544 21

Total Assets

$

159 21 $ 8 205 364 27 $ 8,205 523 48 $ 6 887 881 94

FUND EQUITY

Fund Balances Reserved For Debt Service UnreseNed Undes1gnated

$

159 21 $ 8.205,364 27 $ 8,205.523 48 $ 6.887.881 94

000

000

000

0 00

Tolal Fund Equrty $

15921 $ 8 205 364 27 $ 8 205 523 48 $ 6 887 881 94

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

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

EXHIBIT J

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION
SALES TAX

TOTALS YEAR ENDED JUNE 30, 2002 JUNE 30 2001

REVENUES
Taxes
Other Funds
Total Revenues EXPENDITURES

$

s 54 95

2 504 106 24 $ 2 504 161 19 $ 2 48186717

2 529 96

15188773

15441769

275 600 45

s s s 2 584 91

s 2 655 993 97

2 658 578 88

2 757 467 62

Debt Sel'Vlce Pnnapal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures

s

0 00 $

s 440 ODO 00

440 000 00 $ 400 DOD OD

111527000

111527000

666 140 00

454 00

454 00

29 62

$

s s s 0 00

1 555 724 00

1 555 724 00

1 066 169 62

$

s 2 584 91 $ 1 100 269 97

1 102 854 88 $ 1 691 298 OD

OTHER FINANCING SOURCES \USES)
Accrued lnteresl on Bonds Sold Proceeds from General Obllgat1on Bonds
Par Value Operating lransfers In Operating Transfers Out
Total Other F-inanc1ng Sources (Uses)

s
s -271 792 12 s -27179212 s

486,578 78 s
s 486 578 78

s
486 578 78 271 792 12 214 786 66 $

33 226 67 474 363 35
507 590 02

Excess of Revenues and Other F1nanc1ng Sources

s s ave, (underJ Expenditures and Olher F1nancmg Uses s -269 207 21

1 586 848 75

1317641 54 $ 219888802

FUND BALANCE JULY 1

269 366 42

6 618 515 52

6 887 881 94

688 993 92

FUND BALANCE JUNE 30

15921 $ 820536427 S 820552348 S 688788194

See notes lo the general purpose r,nanoal statements

- 29-

LUMPKIN COUNTY BOARD OF EDUCATION STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
FIDUCIARY FUND TYPES - AGENCY FUND
YEAR ENDED JUNE 30, 2002

EXHIBIT "K"

PALS PROGRAM ASSETS
Cash and Cash Equrvalents
LIABILITIES Funds Held for Others

BALANCE JULY 1, 2001

ADDITIONS

DEDUCTIONS

BALANCE JUNE 30, 2002

$

135 26 S

684 80 $

684 80 $ _ _ _13_5._2_6..,

$

135 26 $

684 80 $

684 80 $----13_5_2_6_

See notes to the general-purpose financial statements - 30 -

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

SCHEDULE "1"

cUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture U S Department of Ch11d Nutrruon Cluster Pass-Through From Georgia Department of Education Food and Nutnhon Program Food Services SchoOI Breakfast Program National Schoof Lunch Program

10 553 10 555

NIA

$ 101 222 80

NIA

382 117 02 $

(2) 895 892 91 (3)

Total Child Nulnbon Cluster

$ 483 339 82 $

895 892 91

Other Programs Pass-Through From Georgia Department of Education Foarj and Nutnttoo Program Food Oastnbutlan Program (1 J Pass-Through From Office of Treasury and Fiscal Services Na!K>Oal Fores! Reserve Funds
1 o\al U S Department of Agnc.utture

10 550 10 665

NIA

56 293 06

NIA

26 641 90

s 566 274 78 $

56 293 06 4 952 185 97

Education U S Departmenl of Special Education Cluster Pass-Through From Georgia Department of Education lnd1vk:luals with 01sab1ht1es Education Ac! Part B Special Education Capaoty Bu1ld1ng llllPfOvement Flow Through Preschool
Total Speoal Education Cluster

64 173 84 027 84 173

NIA

s

7 262 00 $

NIA

33631041

NIA

28 295 00

s 37186741 $

7 262 00 33631041
28 295 00
371867-41

Other Programs Pass Through From Georgi.a Department of Educalron Comprehens,ve Sd'lool Reform Oemon5trabon Pre>tecl Elementary and Secondary Education Act Tille I Granls to Local Educational Agencies T1tle\l Eisenhower Professmnal Development Tille VI lnnovatrve Education Program Strategies Class Size ReducilOfl Safe and Drug Free School& and Commurn\1c& Vocational E:ducatmn - 8.ls1c Grants to States High School Program Basic Grant
Total U S Department of Education

84 332
84 010 84 281 84 298 84 340 B4 \B6
84 048

NIA

104 000 00

104 000 00

NIA

554 006 10

554 006 10

NIA

20 277 00

20 277 00

NIA

19 690 00

19 690 00

NIA

81 159 00

81 159 00

Nlf<

1303600

13 036 00

NIA

27 523 00

27 523 00

s $ 1 191 558 51

1 191 558 51

Health and Human Services U S Department of Pass Through From Ninth D1smct Opportunity Incorporated Head Start

93 600

NIA

s 19 451 &I s

19 451 64

Total Federal Fmanoal ASSlstarico
N/A = Not Available

- 31 -

$ 1 777 284 93 S _ __.,2..1.6::,3:.,1:.96~12:_

LUMPKIN COUNTY BOARD OF EDUCATION
SCHEDULE OF EXPENDITURES OF FEDERAl AWARDS
YEAR ENDED JUNE 30 2002

SCHEDULE "1"

Notes JO the Schedule of ExpeQd1turos qf Federal Awards
(1 J The amounts shown for the Food O1stnbutl0fl Program represents the Federally asSJgned value of nonmonctary assistance for donated commod1ues recetved and/0< consumed by the system dunng the current fiscal year
(2) Expenclltures for the School Breakfast Program were nol mamtamed
separately and are mcluded 1n the 2002 Nahooal School lunch Program
(3) Expenditures for this program mclude State and/or Other Funds Expenditures are not ma.mta1ned by fund source
(4) Funds earned on this program do not require reporbng of expenchtures
MaJor Programs are 1dentlfied by an estensk (") m front of the CFOA number
The School D1stnct did not provide Federal Assistance to any Subreopient
The accompanying schedule of expenditures of Federal awards mdudes the Federal gram acbVlty of the Lumpkin County Board of Education and Is presented on the modified acaual bastS of accounting which ls lhe baslS of accounting used In the presenlahon of the general-purpose financial statements

Sec notes to the generalpurpose fmanc1at statements 32 -

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

SCHEDULE "T

AGENCY/FUN PING
GRANTS Educat10r1 Georgia Department or Oua~ty Bes1c Education Direct \nstrudtOnal Cost Kindergarten Program K.J:ndergarten Program - Eerty lntervent10n Program Pnmery Grades (1-3) Program Pnmary Grades - Early lntervenbon (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades (4-5) Program Early lntervenhon Program Middle School (6-8) Program High School Genaral Educabon (9-12) Program Vocabonal laboratory (9-12) Program Students with D1s.ablllbes Category I Category II Category Ill Category IV Category V Itinerant Supplemental Speech Gifted Student - Category VI Remedial EducatlOll Program Aflemaltve Program Media Center Programs 20 Days ol Add1tionel Instruction Staff Oevek)pment Programs Indirect Cost Categoncal Grants Pupil Transportation Regular Bus Replacement Nurs111g ServlCBS Pnnopal Supplements Vocabonel SupeMsors SparSlly AltemetJve Program Deferred Summer Salanes (Current Year) Deferred Summar Salanes (Pnor Year) EducetlOllal Equallzahon Formula Food Services Vocational EducatlOll Other State Programs Health lnsuranc:o Mentor Teachers Preschool Hand,capped Program Teachers' Re-.irement K 3 Stat8Wlde Reading Program 4-8 StateWICle After School Program Lottery Programs Computers In the Classroom AssLStJv8 Technology Vocabonal Technology Program High School
Georgia State Fananong and Investment Commission Reimbursement on Construction Projeels
orrice or Treasury and Fl-seal SeN1ces Pubhc School Employees Retirement

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

GENERAL

REVENUE

PROJECTS

FUND

FUND

FUND

TOTAL

$

789,375 00

131,541 00

1,638,002 00

530 333 00

922 341 00

213 966 00 1 733 747 00 1 332 143 00
358,658 00

125 371 00 304 019 00 833 798 00
71 626 00 5 539 00 836 00 3 983 00
573 315 00 25 783 00 126 518 00
298 962 00 88 0().1 00 56 586 00
1 827 402 00

$ 789 375 00 131 541 00
1 638 002 00 530 333 00 922,341 00
213 966 00 1 733 747 00 1,332 143 00
358 658 00
125 371 00 304 019 00 833 798 00
71,626 00 5 539 00 836 00 3 983 00
573 315 00 25 783 00 126 518 00
298 962 00 88 004 00 56 566 00
1 827 402 00

429 868 00 131 961 00
82 346 00 14,380 00 16 060 00 35 889 00 1 793 505 95 -1 691 100 80 240 965 00
$ 674 249 00

79 006 00

257 699 15 3 672 DO
46 816 00 2 978 52
37 086 06 28 784 00

81 325 00 7 732 00
100 000 00

429 868 00 131 961 00
82 346 00 14 380 00 16 060 00 35 889 00 1 793 505 95 -1 691 100 80 240 965 00 79 006 00 674 249 00
257 699 15 3 672 00
4681600 2 978 52
37,086 06 28 784 00
81 325 00 7 732 00
10000000

$ 367 132 50

367 132 50

33 447 00

33 447 00

33

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

SCHEDULE "2"

AGENCY/FUNDING
CONTRACT Human Resources Georgia Department of Fem1ly Conll8ctl00

GOVERNMENTAL FUNO TYPES

GENERAL

SPECIAL
REVENUE

CAPITAL PROJECTS

FUND

FUND

FUND

TOTAL

s 199495 59

s 199 495 59

s 14 130,453 88 s 467 558 59 s 367 132 50 s 14 965 144 97

See notes to the general-purpose fineooal statements

- 34 -

LUMPKIN COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS
YEAR ENPEP JUNE 30 2002

SCHEDULE "3"

PROJECT
Provide funds for the payments or pnnopal end Interest due on the Sanes 1996 and 1997 Bonds thrOu:gh August 1 2002 end funding en escrow account to make addrttonsl payments or pnnapal end interest on said bonds
Acquinng construc:ting and eqi.npping one new elementary school ecqumng compute~ and computer technology eqU1pment for the school system end edcl1ng to renovating Improvmg and equIppmg exi&llng school bolldings end other but.lch:ngs end faolrtles useful or deSJrable an connectlon therB'Mth paying any general obllgaUOn debt of I.he Lumpkin County School Otstnd m con1uncbon With the Imposruon of such sales and use tex end pay the expenses IOCdent to ecromphsh the foregoing
Payng a poruon of the pnncrpa/ and interest due on the Lumpklll County School Dastnct's Senes 1996 and Senes 1997 General Ob11gebon Bonds from February 1 2003 Uvough end 1nclud1ng August 1 2007

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT
YEAR (3)

AMOUNT EXPENDED
IN PRIOR
YEARS (31

STATUS

$ 870000000 S 870000000 S 155572400 $ 313762837 Ongomg

13,294 408 00 13 294 408 00

2,355,592 00

2,355 592 00

290 991 82 Ongoing Ongoing

$ 24 350 000 00 S 24 350 000 00 S 1 555 724 00 S 3 428 620 19

(1) The School Distnct's ongmal cost es!Jmate es speofted in the resolutJon calhng for the ImposItIon of the Local Opbon Sales Tax
(2) The School D1stnct's current estimate of total cost for the prof8d:s Ir.dudes eU cost from pro,ect incept.Jon to complet1on
(3) The voters of Lumpkin County approved the ImposrtIon of a 1% sales tax to fund the above proj8ctS and retire asSOC1eted debt Amounts expended for these prqccts may mclude sales tax proceeds state, local property taxes end/or other funds over the hie or the proJects

See notes to the general-purpose finanaal statements 35

LUMPKIN COUNTY BOARD OF EDUCATION
GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES BY PROGRAM
YEAR ENOED JUNE 30 2002

SCHEDULE "4"

DESCRIPTION

ALLOTMENTS FROM GEORGIA DEPARTMENT OF
EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

Dlred lnstrucbonal Programs

Kr.ndergarten Program

$

Kindergarten Program-Eer1y lnterventron Program

Primary Grades (1-3) Program

Pnmary Gracles-Earty Intervention (1-3) Program

Upper Elementary Grades (4-5) Program

Upper Elementary Grades-Earty Intervention (4-5)

Program

Middle School (6-8) Program

High School General Education (9-12) Program

Vocational Laboratory (9-12) Program

Students wtth Dlsabtlrtles

Catego,y I

Category II

Category Ill

Category IV

Category V

Gifted Student Category VI

Remedial Educabon Program

Ahemabve Education Program

951 3-41 00 $
158 531 00
1,974 090 00 639 148 00
1,111,58900

884,004 60 $ 275,354 26 1 672,925 78 654 817 66 1,269,098 85

257,868 00 2 089,480 00 1,605,474 00
432 248 00 1,621,178 00
690,949 00 31,073 00 152 477 00

243451 08 2,038 832 88 1,652 904 91
727 165 09
3-4 040 15 411,007 88 1 1TT,285 10
18,031 43 27,640 80 651 033 51 184 363 65
121 873 85

44 729 24 $ 7,719 81
7294713 12,908 45 46 856 63
3 678 10 109 869 38 14407318 143 429 46
2 031 01 7 963 62 109 399 78 1 967 80
711 54 10,357 17
427 32 69 172 52

928,733 84 283 074 07 1,745,872 91 667 726 11 1,315,955 48
247,129 18 2 148 702 26 1,796,978 09
870 594 55
36,071 16 418 971 50 1 286 684 68
19,999 23 28 352 3-4 661,390 68 184 790 97 19104637

TOTAL DIRECT INSTRUCTIONAL PROGRAMS

$

11 715,446 00 s 12 043,831 48 $ 788 242 14 $ 12,832,073 62

Medla center Program Staff and Profess10nal Development

360 304 00 68 196 00

339 545 62 48 360 96

100 495 35 54 372 90

440 040 97 102 733 86

TOTAL QBE FORMULA FUNDS

$

1214394600 $ 1243173806 $ 94311039 $ 1337484845

(1) Compnsed of State Funds plus Local Ftve Mill Share

See notes to lhe general-purpose financial statements

. 36-

LUMPKIN COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30. 2002

SCHEDULE "5"

SITE New Lumpkin County High School Long Branch Elementary School Lumpkin County Middle School Lumpkin County Elementary School Central Office (Alternative Education Program)
TOTAL
(1) Compnsed of State Funds plus Local Five M,11 Share

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

2,753,577 00 $

3,440,747 80

3,002,593 00

3,062,262 76

2,769,051 00

2,992,790 53

3,037,748 00

3,336,272 53

152 477 00

$

11,715,446 00 $ 12 832,073 62

See notes to the general-purpose financial statements - 37 -

SECTION n
COMPLIANCE AND INTERNAL CONTROL REPORTS

{11,,ti I W ll1no,
S lAI L AUOITQn ll0-1165'32 ,4

DEPARTMENT OF AUDITS AND ACCOUNTS
254 WJ~hmgton ~trcct ~ W ~ullc 214
Atl ..mta, Glorg1.1 Jtn 14-8--ilKI
June 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Supenntendcnt and Members of the Lumpkin County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEME"JTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen
We have aud!led the financial statements of Lumpkin County Board ofEducauon as of and for the year ended June 30, 2002, and have issued our report thereon dated June 5, 2003 This report was quahlied for vanous departures from generally accepted accounting principles, as 1dent1licd in the auditor's report on the general-purpose linanc1al statements We conducted our audit in accord,mce with auditing standards generally accepted in the Umtcd States of America and the standards apphcablc to financial audits contained in Government Auditing StJndards, issued by the Comptroller General of the Umted States
Comphance
As part of ohtaining reasonable assurance about whether Lumpkin County Board of Educal!on's financial statements are free of matenal misstatement, we performed tests of its comphance with certain provisions of laws, regulations, contracts and grants, noncomphJIJce with which could have a direct and material effect on the dcterminat10n of financial statement amounts However, providing an op1mon on comphance wllh tho~e provisions was not an obJect1ve of our audit. and accordingly, we do not express such an op1mon The results ofour tests disclosed no instances ofnoncomphance that arc required to be reported under Government Auditing Standards
Internal Control Over Fmanc1al Reporting
In planning and performing our audit, we considered Lumpkin County Board of Education's internal control over financial reporting in order to deternune our aud1tmg procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-41

control over financial reportmg However, we noted a ccrtam matter mvolvmg the mtemal control over financial reportmg and its operation that we consider to be a reportable cond1l!on Reportable cond1l!ons mvolve matters commg to our attention relatmg to s1gmficant dcfic1cnc1es m the design or operal!on of the mtemal control over financial reportmg that, m ourJudgment, could adversely affect Lumpkm County Board ofEducal!on's ab1hty to record, process, summanze and report financial data consistent with assertions of management m the financial statements The reportable cond1l!on 1s descnbed m the accompanymg Schedule offmdmgs and Questioned Costs as item FS-6931-02-01
A matenal weakness 1s a cond1t10n m wluch the design or operat10n of one or more of the mtcmal control components does not reduce to a relatively low level the nsk that misstatements m amounts that would be matenal m relal!on to the financial statements bemg audited may occur and not be detected w1thm a l!mely penod by employees m the normal course of perform mg the1r assigned funcl!ons Our cons1derat10n of the mtemal control over financial reportmg would not necessanly disclose all matters m the mtemal control that might be reportable cond1t10ns and, accordmgly, would not nccessanly disclose all reportable cond1l!ons that are also considered to be matenal weaknesses However, we consider item FS-6931-02-01 to be a matenal weakness
This report 1s mtended solely for the mformat1on and use of the management, members of the Lumpkm County Board ofEducal!on, Federal awardmg agencies and pass-through cnl!Ues and 1s not mtended to be and should not be used by anyone other than these specified parties
Respectfully submitted,

RWH as 2002YB-41

State Auditor

of c,;

'Iii' ' I

~. . >

.., fl lo

I SSLI I W. HINION
SIAIL AUDITOfl
1.i....:1 &56-2 /,l

DEPARTMENT OF AUDITS AND ACCOUNTS
2'1l WJ-,hinglon 'ilrL'Cl ~ W '-.,u1Lc 214 All,rntJ, Gcor!!l,I 303]4-84()()
June 5, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Educallon
and Supenntendent and Members of the Lumpkm County Board of Educallon
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen
Comphance
We have audited the comphancc of Lumpkm County Board of Education with the types of comphancc requirements descnbed m the US Office o/Managcmem and Budget (OMIJ) Circular A-133 Comphance Supplement that are apphcable to each of1ts ma1or Federal programs for the year ended June 30, 2002 Lumpkm County Board of Education's ma1or Federal programs arc 1dent1ticd m the Summary of Auditor's Results Sect10n of the accompanymg Schedule of Fmdmgs and Questioned Costs Comphance with the reqmrements of laws, regulations, contracts and grants apphcable to each of its maJor Federal programs 1s the respons1b1hty of Lumpkm County Bodrd of Education's management Our respons1b1hty 1s to express an opinion on Lumpkm County Board of Educat10n's comphancc based on our audit
We conducted our audll ofcomphance in accordance with aud1tmg standards generally accepted in the Umted States of America, the standards apphcable to financial audits contained m Government Aud1tmg Standards, issued by the Comptroller General of the Umted States, and 0MB Circular A133, Audas of States, Local Governments, and Non-Profit Orga111zut1011s Those standards and OM B Circular A-133 require that we plan and perform the audit to obtain reasonable .issurance about whether noncompliance with the types ofcomph.ince requirements referred to above th.it could have a direct and material effect on a maJor Federal program occurred An audit includes exam1mng, on a test basis, evidence about the Lumpkin County Board of Educallon's comphance with tho~e rcq uirements and performing such other procedures as we considered necessary in the circumstances We beheve that our audit provides a reasonable basis for our op1mon Our audit docs not provide a legal determmat1on on Lumpkm County Board ofEducallon's comphance wnh those requirements
2002SA-I0

In our op1mon, the Lurnpkm County Board of Educallon complied, mall maten al respects, with the reqmrements referred to above that are applicable to each ofns maJor Federal programs for the year ended June 30, 2002
Internal Control Over Compliance
The management of Lumpkm County Board of Educallon 1s responsible for establishmg and mamtammg effective mtemal control over compliance with requirements of laws, regulal!ons, contracts and grants applicable to Federal programs In plannmg and performmg our audit, we considered Lumpkm County Board of Educallon's mtemal control over compliance with rcqmrements that could have a direct and matenal effect on a maJor Federal program m order to deterrnme our aud1tmg procedures for the purpose of expressmg our opm1on on compliance and to test and report on mtemal control over compliance m accordance with 0MB C1rcular A-133
Our cons1deral!on ofthe mtemal control over compliance would not necessanly disclose all matters m the mtemal control that might be matenal weaknesses A material weakness 1s a cond1t1on m which the design or operation of one or more of the mtemal control components does not reduce to a rclallvely low level of nsk that noncompliance with applicable requ1rements of laws, regulat10ns, contracts and grants that would be matenal m relat10n to a maJor Federal program being audncd may occur and not be detected w1thm a timely penod by employees m the normal course ofperformmg their assigned funcllons We noted no matters mvolvmg the mtemal control over compliance and !Is operat10n that we consider to be material weaknesses
This report 1s mtended solely for the mformal!on and use of the management, members of the Lumpkm County Board ofEducallon, FederaJ awardmg agencies and pass-through enl!l!es and 1s not intended to be and should not be used by anyone other than these specified p.irt1es
Respectfully submitted,
-~~

RWHas 2002SA-10

Hmton State Auditor

SECTION TIJ
AUDITEE'S RESPONSE TO PRJOR YEAR FINDINGS AND QUESTIONED cos rs

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

Fil1H>ING CONTROL NUMBER AND STATUS

FS-6931-00-0 I FS-6931-01-0 I

Further Act10n Not Warranted Unresolved - See Correclive Acllon/Responses

CORRECTIVE ACTION/RESPONSES

GENERAL FIXED ASSETS Fa1 lure to Mamtam General Fixed Assets Account Group Fmdmg Control Number. FS-6931-01-01

Management has chosen not to mamtam a system-wide General Frxed Assets Account Group w1thm the formal accountmg records as required by generally accepted accountmg pnnc1ples This dec1s10n was made due to the limited number of personnel and the procedures required to establish a General Fixed Assets Account Group In order to comply with the 1mplementat1on of GASB 34, we plan to implement a procedure for mamtammg a system-wide General Fixed Assets Account Group

SECTION IV FINDINGS AND QUESTIONED COSTS

LUMPKIN COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
SUMMARY OF AUDITOR'S RESULTS
Type of Report Issued on the Financial Statements The auditor's opinion on the Lumpkin County Board ofEducat10n's financial statements was qualified for vanous departures from generally accepted accountmg pnnc1plcs
2 Reportable Cond11Ions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the Lumpkm County Board of E<lucat10n disclosed a financial statement reportable cond1t10n related to the followmg control category
General Fixed Assets
The reportable cond1t10n descnbed above 1s considered to be a material weakness
3 Noncompliance Malena! to the Financial Statements The audit of the Lumpkin County Board of Educahon d1scloscd no instances of noncompliance that were deemed to be matenal to the financial statements
4 Reportable Cond11Ions in Internal Control Over Ma1or Programs The audit report for the Lumpkin County Board of Education did not disclose any reportable cond11Ions in mternal control over maJor programs
5 Type of Report Issued on Comphance for Ma1or Programs The auditor's op1mon on the Lumpkm County Board of Educalton's report on compliance with requuements applicable to ma1or programs was unqualified
6 Audit Findings Reqmred to be Reported by Section 51 0(a) of 0MB Cucular A-133 The Lumpkm County Board ofEducalton's audit did not disclose audit findings required to be reported by secuon 510(a) ofOMB Circular A-133
7 Ma1or Programs Federal awards audited as maJor programs are as follows 84 010 Elementary and Secondary Educalton Act-Title I - Grants to Local Educational Agencies 84 027 lnd1v1duals with D1sab1llt1es Education Act - Part B - Special Educalton Flow Through 84 173 lnd1v1duals with D1sab1llt1cs Educat10n Act - Part B - Special Education Capacity Building Improvement 84 173 lnd1v1duals with D1sab1lllics Educalton Act - Part B - Special Educat10n Preschool
8 Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000 00
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LUMPKIN COUNfY BOARD OF CDUCATION SCHCDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDCD JUNE 30, 2002
SUMMARY OF AUDITOR'S RESULTS
9 Low Risk Aud1tee The Lumpkin County Board of Educauon qualified as a low nsk aud1tec as defined by Section 530 ofOMB Circular A-133
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain General Fixed AsseL~ Account Group Reportable Cond1t10n - Matenal Weakness Repeated From Pnor Year Finding Control Number FS-6931-02-01
The Lumpkin County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records a~ required by generally accepted accounting principles This cond1t10n results in the general-purpose financial ,tatements of the School Distnct being incomplctc and not in accordance with generally accepted accounting pnnc1ples. Appropnate action should be taken by the School D1stnct to establish accounting controls and procedures to provide for maintenance of a General Fixed A,~t, Account Group These subs1d1ary records ,hould include an inventory of land. building~ and equipment owned by the School D1stnct and should include. but may not be hmlled to. date acquired, acqu1s111on cost. estimated replacement cost. locat1on and de.cnpt1on Detailed records should be maintained of all add1t1ons and deletions to the General Fixed Assets Account Group
Ill FEDERAL AWARD FINDINGS AND QUl:S I JON ED COSTS
No matters were reported