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

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MCINTOSH COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

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

CHANGES IN FUND BALANCES - BUDGET AND ACTIJAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

7

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

8

ADDmONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

18

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

20

SCHEDULES

1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS

22

2 SCHEDULE OF STATE REVENUE

24

3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS

25

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

26

5

BY SITE

27

MCINTOSH COUNfY BOARD OF EDUCATION -TABLE OF CONTENTS-
SECTION II COMPLIANCE AND INTERNAL CONIROL REPORTS REPORT ON COMPLIANCE AND ON INTERNAL CONIROL 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 CONIROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULARA-133
SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
SECTION IV FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS

SECTION I FINANCIAL

w. RUSSELi,

HINTON

STATE AUDITOR

(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa!>hmgton Street, S.W., Suite 214 Atlanta, Georgia 30334-8400
March 21, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board ofEducation
and Superintendent and Members ofthe McIntosh County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements of the McIntosh County Board 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 responsibility of the McIntosh County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica and the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free ofmaterial misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our op1mon.
As described in the notes to the general-purpose financial statements, the Board of Education's financial statements have been prepared using certain accounting practices and policies which, in our opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:

2002ARL-13

* School activity accounts maintained at the individual schools are not included in the
general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended June 30, 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 prior to June 30, 2001, 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 variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects on the general-purpose financial statements of the matters referred to in the preceding paragraph, the general-purpose financial statements referred to above present fairly, in all material respects, the financial position of the McIntosh County Board of Education as ofJune 30, 2002, and the results ofits operations for the year then ended, in conformity with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated March 21, 2003, on our consideration of the McIntosh County Board of Education's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit.
Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the McIntosh County Board of Education taken as a whole. The accompanying combining statements (Exhibits E and F) and the financial schedules (Schedules 1 through 5), which includes the Schedule ofExpenditures ofFederal Awards as required by U. S. Office ofManagement and Budget Circular A-133, Audits ofStates, Local Governments, and Non-Profit Organizations, are presented for purposes of additional analysis and are not a required part of the general-purpose financial statements. Such information has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effects of the matters referred to in the third paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
2002ARL-13

A copy ofthis report has been filed as a permanent record in the office ofthe State Auditor and made available to the press ofthe State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
Respectfully submitted,

RWH:gp 2002ARL-13

State Auditor

MCINTOSH COUNTY BOARD OF EDUCATION

. - - - - - - - - - - - - - - - - - - - - - - - - ----------- - -- - --
MCINTOSH COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALL FUND TYPES AND ACCOUNT GROUP
JUNE 30, 2002

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
General Fixed Assets Land Buildings Equipment

GOVERNMENTAL FUND

SPECIAL

GENERAL

REVENUE

FUND

FUND

$ 1,658,917 97 $

207,490.28

175,436.13

99,401.31

15,110.97 5,326.21

Total Assets

$

118341354.10 $ ___3_2_11_a_2_8.,7.7.

LIAB!LmES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Contracts Payable Retainages Payable Deferred Revenue
Total LlabilitJes
FUND EQUITY
Investment in General Fixed Assets Fund Balances
Reserved For lnventones Food Donated Commodities Purchased Food For SPLOST Projects
Unreserved Undes,gnated
Total Fund Equity

$

43,690.68 $

34,831.58

144,372.68

778.17

$

44468 85 $

179,204.26

$

15,11097

5,326.21

$ 1,789,885 25 $ 1,789,885.25 $

127,687.33 148,124.51

Total Liabilities and Fund Equity

$

118341354.10 S_ _,,;3;:2_,71.;3;;:;2~8.7.7;,,,

The notes to the general-purpose financial statements are an integral part of this statement -2-

EXHIBIT"A"

TYPES CAPITAL
PROJECTS FUND
$ 2,382, 170.27

ACCOUNT GROUP GENERAL FIXED ASSETS

TOTALS

(Memorandum Only)

JUNE 301 2002

JUNE 30, 2001

$

4,248,578.52 $

3,341,806.10

1,000,000.00

1,000,000.00

1,500,000.00

219,055.60

493,893.04

670,597.06

$

642,926.29

7,246,763.80

2,913,075.96

15,110.97 5,326.21
642,926.29 7,246,763.80 2,913,075.96

20,171.07 6,747.35
642,926.29 7,246,763.80 2,727,922.11

$

101802,766.05 $ 1615651674.79 s 1s11ss1933.78

$

62,171.10

30,720.90

$

92,892.00

$

78,522.26 $

55,242.08

144,372.68

121,522.49

62,171.10

30,720.90

778.17

$

316,565.11 $

176,764 57

$

10,802,766.05 $ 10,802,766.05 $ 10,617,612.20

$

3,508,333.87

0.00

$

3,508,333.87 $

0.00 10,802,766.05 $

15,110.97 5,326.21
3,508,333.87
1,917,572.58
16,249,109.68 $

20,171.07 6,747.35
2,957,346.39
2,378,292.20
15,980,169.21

$

3,601,225.87 $

101802,766 05 s 1615651674 79 s 1s11561933 78

-3-

MCINTOSH 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

EXPENDJTURES

Current

lnstn.Jction

Support Services

Pupil Services

lmprovernen1 of lnstn.Jctional SeMces

Educational Media Services

General Administration

School Administration

Business Administration

Maintenance and Operation of Plan1

Student Transportation Services

Central Support Services

i'

Other Support SeMc:es Food Services Operabon

Community Services Operations

Capital Outlay

Total Expenditures

Excess of Revenues over (under) Expenditures

OTHER FINANCING SOURCES {USES}

Operabng Transfers In Operabng Transfers Out

Total Other Financing Sources (Uses)

Excess of Revenues and Other Finanang Sources over (under) Expenditures and Other Financing Uses

FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL FUND

SPECIAL REVENUE
FUND

$ 8,021,402.36 $
3,176,470.58 106,041.99
$ 11,303,914.93 $

390,007.79 1,603,748.92
144,660.39
2,138,417.10

$ 7,357,363.12 $
300,367.37 399,916.09 256,927.80 254,839.43 857,641.70 153,893.01 1,386,211.99 562,550.91
2,121.91 86,806.67 12,178.78 99,404.17

963,733.96
36,906.66 93,187.82
64,871.14 1,548.16
2,324.58
179,043.50 831,212.88

$ 11,730,222.95 $

$

-426,308.02 $

2,172,828 70 -34,411.60

$

$

-44,246.06

$

-44,246.06 $

$

-470,554.08 $

2,260,439.33

44,246.06
44,246.06
9,834.46 144,TT1.29
-5,060.10 -1 421.14

FUND BALANCE JUNE 30

$

1,7891885.25

$ ___1_48_,_12_4_5_1
1

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

-4-

EXHIBIT"B"

CAPITAL PROJECTS
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30. 2002

JUNE 30. 2001

$ 8,411,410.15 $ 8,022,641.28

1,603,748.92

1,449,183 85

$ 1,281,395.45

4,457,866.03

4,631,561.14

91,725.17

342.427.55

399,786.43

$ 1.373.120.62 $ 14.815.452.65 $ 14.503.172.70

$ 8,321,097.08 $ 7,868,117.18

$

822.133.14

337,274.03 493,103.91 256,927.80 319,710.57 859,189.86 153,893.01 1,386,211.99 564,875.49
2,121.91 265,850.17 843,391.66
99,404.17 822.133.14

291,n9.35 392,615.n 235,008.33 320,410.48 692,148.39 130,108.82 938,419.92 535,444.04
1,289.55 224,590.88 804,004.09
50,666.70 734,512.28

$

822.13314 $ 14.725.184.79 $ 13.219.115.78

$

550,987.48 $

90,267.86 $ 1.284.056.92

$

44,246.06 $

43,437.96

-44.246.06

-43.437.96

$

0.00 $

0.00

$

550,987.48 $

90,267.86 $ 1,284,056.92

2,957,346.39

5,362,557.01

4,076,227.22

-5,060.10 -1 421.14

1,087.99 1184.88

$

315081333.87 s

5,446,343.63 $

5,362,557.01

-5-

MCINTOSH COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - CNON-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

s 7,838,227.00 s 8,021,402 36

3,206,000 00 70,000 00

3,176,470.58 106,041.99

Total Revenues

$ 11,114,227.00 $ 11,303,914 93

EXPENDITURES
Current Instruction Support Sennces Pupil Sennces Improvement of lnstructJonal Sennces EducatJonal Media Sennces General Adm1mstra1Jon School Administration Bus111ess Administration Maintenance and Operation of Plant Student Transportation Services Central Support Sennces Other Support Sennces Food Sennces Operation Community Sel'IIIC8S Operations
Ceprtal Outlay

$ 8,105,422 00 $ 7,357,383.12

275,74200 388,108 00 262,937 00 291,700.00 930,039.00 139,813 00 1,078,871.00 809,088.00
5,00000 48,000 00 14,532 00 119,795.00 98,500.00

300,367 37 399,916.09 256,927.80 254,83943 857,841.70 153,893.01 1,388,211.99 582,550.91
2. 121.91 88,80887 12,178 78 99,40417

Total Expenditures

$ 12,343,347 00 $ 11,730,222 95

Excess of Revenues over (under) Expenditures

$ -1,229,120 00 $ -426,308 02

Oil::IEB FINANCING SOURCES CUSESl
Other Sources Other Uses
Total Other F111ancing Sources (Uses)

$ -44,24806 $ -44 248 06

Excess of Revenues and Other F111ancing Sources over (under) Expenditures and Other F111ancing Uses

$ -1,229,120.00 $

-470,55408

fl.!ND ~AbANCE JULY l 200]
AdJustments Food Inventory - Net Change 111 Penod
Donated Commod1bes Purchased Food

2,118,219 72 2,260,439 33

FUND BAbANCE JUNE 30 2002

$ 887.09912 s 1i7a9188S.2s

SPECIAL REVENUE FUND

BUDGET

ACTUAL

s 601,879.00 s 390,007 79
1,702,275.00 1,603,748 92

203,000 00

144,660.39

$ 2,507,154 00 $ 2,138,41710

$ 1,199,387.00 $ 963,733.96

111,nsoo 22,348.00

36,906.66 93,187.82

75,061.00 1,91700

84,871.14 1,548.16

323.00
199,842 00 890,500.00

2,324 58
179,043.50 831,212 88

$ 2,507, 154 00 $ 2,172,828 70

$

0.00 $ -34 411.60

$ 44,248 08

$ 44,246 06

$

000 $

9,834 46

140,158 58

144,n1.2s

-191.51

-5,060 10 -1 421 14

$ 139 967.07 $ 148 124 51

The notes to the general-purpose finanaal statements are an 111tegrel part of this statement -7-

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
REPORTING ENTITY
The McIntosh County Board of Education (School District) was established under the laws ofthe State of Georgia and operates under the guidance of a school board elected by the voters and a Superintendent appointed by the Board. The School District is organized as a separate legal entity and has the power to levy taxes and issue bonds. Its budget is not subject to approval by any other entity. Accordingly, the School District is a primary government and consists of all the organizations that compose its legal entity.
FUND ACCOUNTING
The School District uses funds and an account group to report on its financial position and the results ofits operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions or activities. A fund is a separate accounting entity with a self-balancing set of accounts. An account group is a financial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect expendable available financial resources.
Although "school activity accounts" are maintained at the individual schools, neither the assets, liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these accounts are reflected in these financial statements. To conform to generally accepted accounting principles, these accounts should be recorded in the general-purpose financial statements.
The general-purpose financial statements account for all State, Federal, Taxes and Other funds under control of the School District, in compliance with generally accepted accounting principles applicable to governmental units, unless otherwise disclosed in these notes. Funds and the account group presented in this report are as follows:
GOVERNMENTAL FUND TYPES - are used to account for all or most ofthe School District's educational activities. Governmental Fund Types include:
GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.
SPECIAL REVENUE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
- 8-

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
ACCOUNT GROUP
GENERAL FIXED ASSETS ACCOUNT GROUP -A financial reporting device used to account for all general fixed assets acquired or constructed for use by the School District.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds.
Governmental funds are accounted for using the modified accrual basis ofaccounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available. Property taxes, sales taxes and interest are considered to be susceptible to accrual. Nonexchange transactions, m which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in whic_h all eligibility requirements have been satisfied.
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2002, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2001 and ending in early June 2002. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2001 and ending in August 2002. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2002, compensation under these employment contracts had
-9-

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS

nJNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 subsequent to June 30, 2002. Also, the State's portion 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 similar expenditures and related revenues for contractual services completed prior 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 expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The McIntosh County Board of Education's budget is a complete financial plan for the School District's fiscal year and is based upon estimates of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure ofthe budget at any level. The budget for all governmental funds is prepared by fund, function and object. The legal level of budget control was established by the Board at the aggregate level. The budget for governmental funds was prepared on a basis other than generally accepted accounting principles.
The budget process begins when the School District's administration prepares a tentative budget for the Board's approval. After approval ofthis tentative budget by the Board, such budget is advertised at least once in a newspaper ofgeneral circulation in the locality. At the next regular meeting ofthe Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year. All unexpended budget authority lapses at fiscal year-end.
CASH AND CASH EQUIVALENTS
COMPOSITION OF DEPOSITS Cash and cash equivalents consist ofcash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition in authorized financial institutions. Georgia Laws OCGA 45-8-14 authorize the School District to deposit its funds in one or more solvent banks or insured Federal savings and loan associations.
INVESTMENTS'
COMPOSITION OF INVESTMENTS Investments made by the School District in nonparticipating interest-earning contracts (such as certificates ofdeposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase ofone year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with

- 10 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a maturity at purchase greater than one year are reported at fair value. The Official Code ofGeorgia Annotated Section 36-83-4 authorizes the School District to invest its funds and in selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation ofthe United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State ofGeorgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions ofthe State of Georgia.
RECEIVABLES
Receivables consist ofgrant reimbursements due on Federal, State or other grants for expenditures made but not reimbursed and other receivables disclosed from information available. Receivables are recorded when either the asset or revenue recognition criteria has been met. Receivables recorded on the general-purpose financial statements do not include any amounts which would necessitate the need for an allowance for uncollectible receivables.
PROPERTY TAXES
The McIntosh County Board of Commissioners fixed the property tax levy for the 2001 tax digest year (calendar year) on November 1, 2001 (levy date). Taxes were due on January 30, 2002 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end on the 2001 tax digest are reported as revenue in fiscal year 2002. The McIntosh County Tax Commissioner bills and collects the property taxes for the School District, withholds 2.5% oftaxes collected as a fee for tax collection and remits the balance oftaxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2002 for maintenance and operations amounted to $3,097,435.42.
- 11 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The tax millage rate levied for the 2001 tax year (calendar year) for the McIntosh County Board of Education was as follows (a mill equals $1 per thousand dollars of assessed value):

School Operations

15,194 mills

SALES TAXES

Special Purpose Local Option Sales Tax revenue during the year amounted to $1,281,395.45 and is to be used for capital outlay for educational purposes or debt service. This sales tax was authorized by local referendum and the sales tax must be re-authorized at least every five years.

INVENTORIES

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

GENERAL FIXED ASSETS

General fixed assets purchased, including capital outlay costs, are recorded as expenditures in the various funds at the time of purchase. All purchased general fixed assets are valued at cost where historical records are available and at estimated historical cost where no historical records exist. Donated general fixed assets are recorded at fair market value on the date donated. Disposals are deleted at recorded cost. No depreciation has been provided on General Fixed Assets. The cost of normal maintenance and repairs that do not add to the value ofassets or materially extend the useful lives of the assets is not capitalized.

COMPENSATED ABSENCES

Compensated absences represent obligations ofthe School District relating to employees' rights to receive compensation for future absences based upon service already rendered. This obligation relates only to vesting accumulating leave in which payment is probable and can be reasonably estimated. No liability has been recorded in the individual funds for the current portion of this obligation as this amount is deemed immaterial to the general-purpose :financial statements.

- 12 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Additionally, the dollar value of accumulated compensated absences at June 30, which will be payable from future resources has not been recorded in the General Long-Term Debt Account Group as this liability is also deemed to be immaterial to the fair presentation ofthese financial statements.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements ofexpenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY -TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum ofmoney which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate ofthe face value of such surety bond and the market value of securities pledged shall be equal to not less than 110 percent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. Ifa depository elects the pooled method (OCGA 45-8-13.1) the aggregate ofthe market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool balance. OCGA Section 45-8-11 (b) provides an officer holding public funds may, in his discretion, waive the requirement for security in the case ofoperating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(1) Surety bond signed by a surety company duly qualified and authorized to transact business within the State of Georgia,
(2) Insurance on accounts provided by the Federal Deposit Insurance Corporation,

- 13 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 2: DEPOSITS

(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,

(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,

(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute that created the authority authorized the use of the bonds for this purpose,

(6) Industrial revenue bonds and bonds ofdevelopment authorities created by the laws ofthe State of Georgia, and

(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government both as to principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, the Central Bank for Cooperatives, the Farm Credit Banks, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association.

CATEGORIZATION OF DEPOSITS At June 30, 2002, the bank balances were $6,110,070.56. The amounts ofthe total bank balances are classified into three categories of credit risk:

Category 1 - Cash that is insured (e.g., Federal depository insurance) or collateralized with securities held by the School District or by the School District's agent in the School District's name.
Category 2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Category 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized with securities held by the pledging financial institution, or by its trust department or agent but not in the School District's name.)

The School District's deposits are classified by risk category at June 30, 2002, as follows:

Risk Category

Bank Balance

1

$ 200,007.95

2

5,910,062.61

3

0.00

Total

$ 6,110,070.56

- 14 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2002

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: GENERAL FIXED ASSETS

The following is a summary ofchanges in the General Fixed Assets Account Group during the fiscal year:

Land

Buildings Equipment

Total

Balance July 1, 2001 Additions Deletions Balance June 30, 2002

$ 642,926.29 $7,246,763.80 $2,727,922.11 $10,617,612.20

347,329.06 347,329.06

162,175.21

162,175.21

$ 642,926.29 $ 7.246.763,80 $2,913,075.96 $10.802.766,05

Note 5: RISK MANAGEMENT

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

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

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the General Fund with expenditure and liability being reported when it is probable that a loss has occurred, and the amount ofthat loss can be reasonably estimated. The School District has not incurred any liabilities for unemployment compensation during the past two fiscal years.

The School District participates in the Georgia Education Workers' Compensation Trust, a public entity risk pool organized on December 1, 1991, to develop, implement and administer a program of workers' compensation self-insurance for its member organizations. The School District pays an annual premium to the Trust for its general insurance coverage. Additional insurance coverage is provided through an agreement by the Trust with the United States Fidelity and Guaranty Company to provide coverage for potential losses sustained by the Trust in excess of $350,000.00 loss per occurrence, up to $2,000,000.00.

- 15 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 5: RISK MANAGEMENT

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

Position Covered

Amount

Superintendent Each Principal

$ 100,000.00 $ 25,000.00

Note 6: ON-BEHALF PAYMENTS

The School District has recognized revenues and expenditures in the amount of $158,926.91 for health insurance and retirement contributions paid on the School District's behalf by the following State Agencies.

Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance of Non-Certified Personnel
In the amount of$138,645.91

Office of Treasury and Fiscal Services Paid to the Public School Employees Retirement System For Public School Employees Retirement (PSERS) Employer's Cost In the amount of $20,281.00

Note 7: SIGNIFICANT COMMITMENTS

The following is an analysis ofsignificant outstanding construction or renovation contracts executed by the School District as of June 30, 2002, together with funding available:

Project

Unearned Executed Contracts

Funding Available From State

New McIntosh County High School

$9,587,582.44 $3,915,431.00

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

Note 8: CONTINGENT LIABILITIES

Amounts received or receivable principally from the Federal government are subject to audit and review by grantor agencies. This could result in requests for reimbursement to the grantor agency for any expenditures which are disallowed under grant terms. The School District believes that such disallowances, if any, will be immaterial to its overall financial position.

- 16 -

MCINTOSH COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2002

Note 8: CONTINGENT LIABILITIES

The School District is a defendant in various legal proceedings pertaining to matters incidental to the performance ofroutine School District operations. The ultimate disposition ofthese proceedings is not presently determinable, but is not believed to be material to the general-purpose financial statements.

Note 9: ACCUMULATED EMPLOYEES' LEAVE

The School District's twelve month employees earn vacation leave at the rate oftwo weeks per year. After five years of consecutive service, twelve month employees earn vacation leave at the rate of three weeks per year. Employees with over fifteen years ofconsecutive service earn vacation leave at the rate offour weeks per year. A maximum ofone week ofvacation leave can be carried forward to another year provided that it is used within the first quarter of the new fiscal year. Upon retirement or termination of employment, unused accumulated vacation leave will be paid to the employee at their current rate ofpay. See Note 1 - Compensated Absences

Note 10: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

TRS PLAN DESCRIPTION Substantially all teachers, administrative and clerical personnel employed by local school districts are covered by the Teachers Retirement System ofGeorgia (TRS), which is a cost-sharing multiple employer defined benefit pension plan. TRS provides service retirement, disability retirement and survivors benefits for its members in accordance with State statute. The Teachers Retirement System of Georgia issues a separate stand alone financial audit report and a copy can be obtained from the Georgia Department of Audits and Accounts.

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board ofTrustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 9.24% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2002 2001 2000

100% 100% 100%

$ 709,029.32 $ 798,049.93 $ 769,412.65

- 17 -

MCINTOSH COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2002

ASSETS Cash and Cash Equivalents Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Total Assets
LIABILITIES AND FUND EQUITY LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable
Total Liabilities
FUND EQUITY Fund Balances Reserved For Inventories Food Donated Commodities Purchased Food Unreserved Undesignated Total Fund Equity
Total Liabilities and Fund Equity

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

160,608.34 $

49,857.36

10,851.06

15,110.97 5.326.21

$

191,896.58 $--==4m:9i::!1:8111151..,7..3.....,6

$

9,243.15 $

9,067.74

34.528.92

40.789.62

$

43,772.07 $

49.857.36

$

15,110.97

5,326.21

127,687.33 $

0.00

$

148,124.51 $

0.00

$

191,896.58 $ ==--==4-=9=,8=5..7.,...36==

See notes to the general-purpose financial statements. -18 -

EXHIBIT"E"

FEDERAL
PROGRAMS

TOTALS

JUNE 30, 2002

JUNE 301 2001

$

210,465.70 $

194,041.95

$

88,550.25

99,401.31

150,405.62

15,110.97 5,326.21

20,171.07 6l47.35

$

88,550.25 $

s____ 3301304.19

3_1_1._36_s_.s_s

$

2,975.42 $

2,975.42 $

70,059.82

16,520.69

34,831.58

35,012.39

69,054.14

144,372.68

121,522.49

$

88,550.25 $

182,179.68 $

226,594.70

$

s_ _ _ _=o.=o_o_

$

0.00 $

15,110.97 $ 5,326.21

20,171.07 6,747.35

127,687.33

117,852.87

148,124.51 $ _ _ _144_,7_7_1___.2__9_

$

88,550.25 $

330,304.19 $ ,._.......,::i,37..,1-=,3...,6..,5,.,.9,...9

- 19 -

---------------------- --------------------------
MCINTOSH 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 Services Improvement of Instructional Services General Administration School Administration Student Transportation Services Other Support Services Food Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other Financing Sources over (under) Expenditures
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food
FUND BALANCE JUNE 30

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

58,548.00 $

331,459.79

637,838.95

144,660.39

$

841,047.34 $

331,459.79

$

334,075.14

32,799.03 1,597.93

$

831,212.88

619.85

$

831,212.88 $

369,091.95

$

9,834.46 $

-37,632.16

$

9,834.46 $

144,771.29

-5;060.10 -1 421.14

37,632.16
0.00 0.00

$

1481124.51 $===-===o-.o=o

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

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS YEAR ENDED
JUNE 30, 2002 JUNE 30, 2001

$

390,007.79 $

390,956.21

$

965,909.97

1,603,748.92

1,449,183.85

144,660.39

153,764.41

$

965,909.97 $ 2,138,417.10 $ 1,993,904.47

$

629,658.82 $

963,733.96 $

910,515.94

4,107.63 91,589.89 64,871.14
1,548.16 2,324.58 178,423.65

36,906.66 93,187.82 64,871.14
1,548.16 2,324.58 179,043.50 831,212.88

66,384.44
38,509.35
58,046.46
4,300.00 96.26
141,012.07 789,928.43

$

972,523.87 $ 2.172.828.70 $ 2,008.792.95

$

-6,613.90 $

-34,411.60 $

-14,888.48

6,613.90

44,246.06

43,437.96

$

0.00 $

9,834.46 $

28,549.48

0.00

144,771.29

113,948.94

-5,060.10 -1421.14

1,087.99 1,184.88

$

0.00 $

148,124.51 $ ==-144==1'..1..1.._2=-9

- 21 -

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

SCHEDULE "1"

FUNDING AGENCY
PROGRAM/GRANT
Agnculture, U S Department of Child Nutnt1on Cluster Pass-Through From Georgia Department of Education Food and Nutnllon Program Food Services School Breakfast Program National School Lunch Program
Total Child Nutnllon Cluster
Other Programs Pass-Through From Georgia Department of Education Food and Nutnllon Program Food D1slribullon Program (1)
Total U. S. Department of Agnculture
Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Educabon lndlVICluals with D1sebilibes Education Act Part B - Specaal Educallon Flow Through Capacity Bu1lchng Improvement Grant Preschool
Total Specaal Educabon Cluster
Other Programs Pass-Through From Georgia Department of EducatiOn Elementary and Secondary Educabon Act TIiie I Grants to Local EducatJonal Agencies Tlllell Eisenhower Professional Development Tlllelll Technology Literacy Challenge Fund Grants TiUeVI lnnovabve Educabon Program Strategies Class Size ReductJon TrtteX Funds for the Improvement of Educabon Chnsta McAuliffe Fellowship Program
Vocabonal EducatJon - Basic Grants to States
High School Program Basic Grant
Total U S Department of Educabon

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

. 10.553 . 10 555

NIA $ NIA
$

182,358.54 417 29417 $
599,850.71 $

(2) 793,024.64 (3)
793,024 84

10.550

NIA $

38,188.24 637,838.95 $

38,188.24 831,212.88

84027 84.027 84.173

NIA $ NIA NIA
$

135,630 48 $ 4,341.83 19 TT4 96
159,747.27 $

135,630 48 4,341 83 191TT4 96
159,747.27

84 010 84.281 84 318 84298 84.340
84 215
84.048

NIA

509,519 44

509,600 68 (3)

NIA

21,419.26

22,305 52 (3)

NIA

128,500.00

126,549 69 (3)

NIA

15,124.00

15,497 67 (3)

NIA

80,135.00

85,092 07 (3)

NIA

14,000 00

14,252 61 (3)

NIA $

39,465 00 965,909 97 $

39,478 36 (3) 972,52387

Total Federal Financial Assistance NIA c Not Available

$

1 803,736 75

1

-22-

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

SCHEDULE "1"

Notes to the Schedule of Expenditures of federal Awards
(1) The amounts shown for the Food D1stnbubon Program represents the Federally assigned value of nonmonetary assistance for donated commodities received end/or consumed by the system dunng the current fiscal year
(2) Expenditures for the School Breakfast Program were not maintained separately end ere included in the 2002 National School Lunch Program
(3) Expenditures for this program include State, end/or Other Funds Expenditures are not maintained by fund source
Ma,or Programs are identified by en astensk (*) in front of the CFDA number
The School D1stnct did not provide Federal Assistance to any Subrecip1ent
The accompanying schedule of expenditures of Federal awards includes the Federal grant actnnty of the McIntosh County Board of Educebon and IS presented on the modified eccN&I basis of eccounbng which 1s the baSJs of eccounbng used in the presentation of the general-purpose finenasl statements

See notes to the general-purpose financial statements

23

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Education, Georgia Department of Qualrty Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program - Early Intervention Program Pnmary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Upper Elementary Grades - Early Intervention (4-5) Program Middle Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Dlsablhtles Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Addruonal Instruction - 20 Days Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Sparsity Nursing Services Principal Supplements Vocational Supervisors Education Equalization Funding Grant Food Services Vocational Education Other State Programs Apprenticeship Program Heatth Insurance Post Secondary Options Preschool Handicapped Program Statewide After School (4-8) Program Statewide Reading (K-3) Program Student Achievement Lottery Programs Ass1stlve Technology Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program
Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Human Resources, Georgia Department of Family Conned10n First Steps Grant

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$ 361,954.00 136,024.00
1,051,527.00 165,908.00 593,532.00 110,231.00
1,010,094.00 610,622.00 330,996.00
26,580.00 137,969.00 323,919.00 83,094.00 32,2TT.OO 23,882.00 60,378.00 70,017.00 166,888.00 50,946.00 31,689.00 1,141,946.00

$ 361,954.00 136,024.00
1,051,527.00 165,908 00 593,532.00 110,231.00
1,010,094.00 610,622.00 330,996.00
26,580.00 137,969.00 323,919.00 83,094.00 32,2TT.OO 23,882.00 60,378.00 70,017.00 166,888.00 50,946 00 31,689.00 1,141,946.00

292,785.00 56,818.00 86,473.00 54,821.00 7,782.00 14,713.00
531,480.00 $
17,923.83
2,000.00 138,645.91
198.00 17,917.00 20,264.80 27,552.71 114,228.00

58,548.00
5,251.00 47,TT5.00

292,785.00 56,818 00 86,473.00 54,821.00 7,782.00 14,713.00
531,480.00 58,548.00 17,923.83
2,000.00 138,64591
198.00 17,917.00 20,264.80 27,552.71 114,228.00
5,251.00 47,TT5 00

278,433.79

278,433.79

20,281.00

20,281.00

88,500.00 8 54611

88,500.00 8,546.11

See notes to the general-purpose finanaal statements

$ 8,021,402 36 $ 390,007.79 $ 8,411,410.15 - 24-

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

SCHEDULE "3"

PROJECT
Constructing and equipping a new high school, parking areas and grounds, including acquisition of any necessary real and personal property, acqu1smon, construction and equipping additional classrooms, instructional and support space, as well as remodeling, renovabng, furnishing and equipping eXJSbng school district facilities, including classrooms, instructional and support space, acquiring any necessary personal property, including computers and other technology, and paying expenses incident thereto

ORIGINAL ESTIMATED
COST (1)

CURRENT ESTIMATED COSTS (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)

AMOUNT EXPENDED IN PRIOR YEARS (3)

PROJECT STATUS

$ 8,000,000.00 $ 11,000.000.00 $ 822,13314 $ 256,025.16 Ongoing

(1) The School District's original cost estimate as specified in the resolution calling for the imposition of the Local Option Sales Tax.
(2) The School District's cunent estimate of total cost for the proJed. Includes all cost from project inception to completion.
(3) The voters of McIntosh County approved the Imposition of a 1% sales tax to fund the above project. Amounts expended for this project may include sales tax proceeds, state, local property
taxes and/or other funds over the life of the project.

See notes to the general-purpose financial statements

- 25-

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

MCINTOSH COUNTY BOARD OF EDUCATION GENERAL FUND- QUALITY BASIC EDUCATION PROGRAM {QBE!
ALLOTMENTS AND'EXPENDITURES - BY PROGRAM YEAR ENDED JUNE 30. 2002

SCHEDULE "4"

DESCRIPTION
Direct lnstrudlonal Programs Kindergarten Program Kindergarten Program-Early lntervenbon Program Primary Grades (1-3) Program Primary 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 Vocational Laboratory (9-12) Program Students with Olsabllltles Category I Category II Category Ill Category IV Gifted Student - Category VI Remedial Education Program Alternative Education Program
TOTAL DIRECT INSTRUCTIONAL PROGRAMS
Media Center Program Staff and Professional Development

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

s 418,325.00

419,966.24 $

9,816.28 $

429,782.52

157,208.00

202,290.46

2,693.14

204,983.60

1,215,292.00 1,300,858.89

57,553.50

1,358,412.39

191,747.00

210,798.25

1,167.53

211,965.78

685,969.00

741,836.52

35,205.48

1n,042.oo

127,398.00 1,167,406.00
705,720.00 382,545.00 697,881.00
27,601.00 69,781.00 801921.00

129,614.67 1,165,618.65
844,384.82 402,261.84
1,652.16 134,847.60 619,561.69
25,293.42 84,393.36 81,805.39 120.704.06

923.34 82,703.86 83,240.46 62,022.26
1,447.34 6,044.00
808.05 372.17
29.50 21948.45

130,538.01 1,248,322.51
927,625.28 484,284.10
1,652.16 136,294.94 625,605.69 26,101 47 64,765.55
81,834.89 1231652.51

s

5,927,794.00 $ 6,465,888.04 $ 346,975.36 $ 6,812,863.40

192,880.00 36,626.00

185,025.78 5~.96

68,884.87 361990.91

253,890.65 42,213.87

TOTALQBEFORMULAFUNDS

$

6,157,300.00 $ 6,656,136.78 S 452,831.14 $ 7,108,967.92

(1) Comprised of State Funds plus Local Five MIU Share.

See notes to the general-purpose financial statements.

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MCINTOSH COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITYBASIC EDUCATION PROGRAM (QBE)
ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2002

SCHEDULE "5"

SITE
McIntosh County Middle School McIntosh County Academy High School Todd Grant Elementary School Central Office (Alternative Education Program) Other Auxiliary Facility
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION {1)

ELIGIBLE QBE PROGRAM COSTS

$

1,400,731.00 $

1,568,552.50

1,370,558.00

1,565,614.80

3,075,584.00

3,600,964.32

80,921.00

77.731.78

$

5,927,794.00 $-===6.,..,8=12,..,8=6=3=.40=--

See notes to the general-purpose financial statements. -27-

SECTIONil COMPLIANCE AND INTERNAL CONTROL REPORTS

..

RussELL W. H1NTON
STATE AUDITOR
(404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Washington Street, S W., Surtc 214 Atlanta, Georgia 30334-8400
March 21, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the McIntosh County Board of Education
REPORT ON COMPLIANCE AND ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Ladies and Gentlemen:
We have audited the financial statements ofMcIntosh County Board ofEducation as of and for the year ended June 30, 2002, and have issued our report thereon dated March 21, 2003. This report was qualified for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether McIntosh County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions oflaws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination offinancial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered McIntosh County Board ofEducation's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal
2002YB-10

control over financial reporting. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control over financial reporting that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control over financial reporting and its operation that we consider to be material weaknesses.

This report is intended solely for the information and use of the management, members of the McIntosh County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.

Respectfully submitted,

~



RWH:gp 2002YB-10

State Auditor

Russi,:u. \V. H1NTON
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
254 Wa,hmgton Street. S W., Su11c 214 Atlanta, Georgia 30334-8400
March 21, 2003

Honorable Sonny Perdue, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the McIntosh County Board of Education
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH 0MB CIRCULAR A-133
Ladies and Gentlemen:
Compliance
We have audited the compliance of McIntosh County Board of Education with the types of compliance requirements described in the U.S. Office ofManagement and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2002. McIntosh County Board ofEducation's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility ofMcIntosh County Board of Education's management. Our responsibility is to express an opinion on McIntosh County Board of Education's compliance based on our audit.
We conducted our audit ofcompliance in accordance with auditing standards generally accepted in the United States ofAmerica; the standards applicable to financial audits contained in Government Auditing Standards. issued by the Comptroller General ofthe United States; and 0MB Circular A133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis. evidence about the McIntosh County Board of Education's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on McIntosh County Board ofEducation's compliance with those requirements.
2002SA-10

In our opinion, the McIntosh County Board ofEducation complied, in all material respects, with the requirements referred to above that are applicable to each ofits major Federal programs for the year ended June 30, 2002.
Internal Control Over Compliance
The management of McIntosh County Board of Education is responsible for establishing and maintaining effective internal control over compliance with requirements of laws, regulations, contracts and grants applicable to Federal programs. In planning and performing our audit, we considered McIntosh County Board of Education's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to determine our auditing procedures for the purpose ofexpressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration ofthe internal control over compliance would not necessarily disclose all matters in the internal control that might be material weaknesses. A material weakness is a condition in which the design or operation ofone or more ofthe internal control components does not reduce to a relatively low level of risk that noncompliance with applicable requirements of laws, regulations, contracts and grants that would be material in relation to a major Federal program being audited may occur and not be detected within a timely period by employees in the normal course ofperforming their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use of the management, members of the McIntosh County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
Respectfully submitted,
~~-~
RWH:gp 2002SA-10

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

MCINTOSH 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

FINDING CONTROL NUMBER AND STATUS

FS-6981-01-01

Previously Reported Corrective Action Implemented

SECTION IV FINDINGS AND QUESTIONED COSTS

MCINTOSH COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002
I SUMMARY OF AUDITOR'S RESULTS
1. Type of Report Issued on the Financial Statements The auditor's opinion on the McIntosh County Board ofEducation's financial statements was qualified for various departures from generally accepted accounting principles.
2. Reportable Conditions in Internal Control Disclosed by the Audit of the Financial Statements The audit report for the McIntosh County Board ofEducation did not disclose any reportable conditions related to the financial statements.
3. Noncompliance Material to the Financial Statements The audit of the McIntosh County Board of Education disclosed no instances of noncompliance that were deemed to be material to the financial statements.
4. Reportable Conditions in Internal Control Over Major Programs The audit report for the McIntosh County Board ofEducation did not disclose any reportable conditions in internal control over major programs.
5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the McIntosh County Board of Education's report on compliance with requirements applicable to major programs was unqualified.
6. Audit Findings Required to be Reported by Section .510(a) ofOMB Circular A-133 The McIntosh County Board ofEducation's audit did not disclose audit findings required to be reported by section .510(a) of 0MB Circular A-133.
7. Major Programs Federal awards audited as major programs are as follows: 10.553 Food and Nutrition Program - Food Services - School Breakfast Program 10.555 Food and Nutrition Program - Food Services - National School Lunch Program
8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.
9. Low Risk Auditee The McIntosh County Board of Education qualified as a low risk auditee as defined by Section .530 ofOMB Circular A-133.
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
No matters were reported.
- 1-

MC.I-N.T. OS-H COUNTY BOARD OF EDUCATION SCHEDULE ,OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30. 2002 III FEDERAL AWARD FINDINGS AND QUESTIONED C0STS No matters were reported.
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