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

MACON 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

B

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES

ALL GOVERNMENTAL FUND TYPES

C

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND

CHANGES IN FUND BALANCES - BUDGET AND ACTUAL

(NON-GAAP BASIS)

GENERAL AND SPECIAL REVENUE FUNDS

D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

ADDITIONAL FINANCIAL INFORMATION

COMBINING STATEMENTS

SPECIAL REVENUE FUND

E

COMBINING BALANCE SHEET

F

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

CAPITAL PROJECTS FUND

G

COMBINING BALANCE SHEET

H

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

DEBT SERVICE FUND

I

COMBINING BALANCE SHEET

J

COMBINING STATEMENT OF REVENUES, EXPENDITURES

AND CHANGES IN FUND BALANCES

SCHEDULES

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

2 '.
4
20 22
24 25
26 27
28 30 33

MACON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS-

SECTION I

FINANCIAL

ADDITIONAL FINANCIAL INFORMATION

SCHEDULES

ALLOTMENTS AND EXPENDITURES

GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE)

4

BY PROGRAM

34

5

BY SITE

35

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

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

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

SECTION I FINANCIAL

Rt,ssELL \\'. H1NTON
STATE AUDITOR (404 i 656-2 174

0EPARTl\-1ENT OF AUDITS AND ACCOUNTS
25-1 Wasliin!!lon StrL't:L S. W.. Sui ti: 21 :.l Atlanta. Cit:m!!ia :~o:n-l-X-100
March 11, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Macon County Board of Education
INDEPENDENT AUDITOR'S COMBINED REPORT ON GENERAL-PURPOSE FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Ladies and Gentlemen:
We have audited the accompanying general-purpose financial statements ofthe Macon County Board of Education, as of and for the year ended June 30, 2001, as listed in the table of contents. These general-purpose financial statements are the responsibility of the Macon County Board of Education's management. Our responsibility is to express an opinion on these general-purpose financial statements based on our audit.
Except as discussed in the following paragraph, 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of mat~rial 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 opinion.
We did not observe the taking of either the Federal donated commodities inventory or purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
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
2001ARL-13

opinion, vary in some respects from generally accepted accounting principles. These variances are described as follows:
* The general-purpose financial statements of the Board of Education did not contain a General Fixed Assets Account Group to account for property and equipment owned by the Board of Education which should be included to conform to generally accepted accounting principles.
* School activity accounts maintained at the individual schools are not included in the general-purpose financial statements. To conform to generally accepted accounting principles, these accounts should be included in the general-purpose financial statements.
* The Board of Education did not recognize as expenditures, in the year ended June 30, 2001, a portion of salaries and the corresponding employer's cost of related benefits earned for contractual services completed prior to June 30, 2001. Also funds received, subsequent to June 30, 2001, from the Georgia Department of Education for the State's share of these unrecorded salaries and related benefits were not recorded as revenue in the year under review. Conversely, the similar expenditures and related
. revenues for contractual services completed prior to June 30, 2000, were improperly recorded in the year ended June 30, 2001. To conform to generally accepted accounting principles, revenues should be recorded when available and measurable and expenditures should be recorded when incurred, rather than when funds are received or disbursed.
The aggregate effects on the general-purpose financial statements of these variances or omissions have not been determined, but are believed to be material.
In our opinion, except for the effects of such adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the ~ccuracy of the food service inventories as discussed in the third paragraph, and 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 Macon County Board of Education as ofJune 30, 2001, 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 11, 2002, on our consideration ofthe Macon County Board ofEducation's internal control over financial reporting ~dour tests of its compliance with certain provisions oflaws, 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.
2001ARL-13

Our audit was performed for the purpose of forming an opinion on the general-purpose financial statements of the Macon County Board of Education taken as a whole. The accompanying combining statements (Exhibits E through J) and the financial schedules (Schedules 1 through 5),
which includes the Schedule of Expenditures of Federal Awards as required by U. S. Office of
Management and Budget Circular A-133, Audits of States, 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 infcprmation has been subjected to the auditing procedures applied in the audit of the general-purpose financial statements and in our opinion, except for the effect of adjustments, if any, on the Special Revenue Fund, as might have been determined to be necessary had we been able to satisfy ourselves as to the accuracy of the ,food service inventories as discussed in the third paragraph, and except for the effects of the matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-purpose financial statements taken as a whole.
A copy of this report has been filed as a permanent record in the office ofthe State Auditor and made available to the press of the State, as provided for by Official Code ofGeorgia Annotated Section 506-24.
----Respectfully submitted,
RWH:as 2001-ARL-13

MACON COUNTY BOARD OF EDUCATION

MACON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET
ALLFUNDTYPESANDACCOUNTGROUP JUNE 30, 2001

ASSETS
Cash and Cash Equivalents
Investments
Accounts Receivable
Inventories Food Donated Commodities Purchased Food
Amount Available in Debt Service Fund
Amount to be Provided in Future Years For Payment of Bond Debt

GENERAL FUND

GOVERNMENTAL FUND TYPES

SPECIAL

CAPITAL

REVENUE

PROJECTS

FUND

FUND

$ 3,547,887.04 $ 532,356.32 $

8,428.53

231,474.63

273,518.57

217,377.65

19,987.26 36,067.38

Total Assets

$ 3,821,405.61 $ 805,788.61 $ 239,903.16

LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts Payable Salaries Payable Contracts Payable Deferred Revenue General Obligation Bonds Payable
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs For Continuation of State Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

$ 949,669.57 $ 154,558.79

666.70

184,836.00

1B.4n:.57

$ 950,336.27 $ 357,872.36

$ 439,793.04

$ 19,987.26 36,067.38 $ 231,474.63 8,428.53

2,431,276.30

391,861.61

0.00

$ 2,871,069.34 $ 447,916.25 $ 239,903.16

Total Liabilities and Fund Equity

$ 3,821,405.61 $ 805,788.61 $ 239,903.16

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

EXHIBIT "A"

DEBT SERVICE
FUND $ 2,218,133.56
364,752.84

ACCOUNT GROUP GENERAL
LONG-TERM DEBT

TOTALS

(Memorandum Onl}'.)

JUNE 30, 2001

JUNE 30. 2000

$ 6,306,805.45 $ 6,973,736.51

231,474.63

317,117.19

855,649.06

648,360.45

19,987.26 36,067.38

20,449.91 16,403.93

$

2,582,356.40

2,582,356.40

2,221,913.98

4,674,643.60

4,674,643.60

5,743,086.02

$ 2,582,886.40 $

7,257,000.00 $ 14,706,983.78 $ 15,941,067.99

$

530.00

$ 1,104,758.36 $

561,383.31

185,502.70

177,870.71

36,279.02

18,477.57

$

7,257,000.00

7,257,000.00

7,965,000.00

$

530.00 $

7,257,000.00 $ 8,565,738.63 $ 8,740,533.04

$ 2,582,356.40
0.00 $ 2,582,356.40

$

4,571.08

19,883.28

$ 2,582,356.40

2,221,913.98

439,793.04

519,614.74

19,987.26 36,067.38 231,474.63
8,428.53

20,449.91 16,403.93 317,117.19 58,584.38

2,823,137.91

4,021,996.46

$ 6,141,245.15 $ 7,200,534.95

$ 2,582,886.40 $

7,257,000.00 $ 14,706,983.78 $ 15,941,067.99

-3-

MACON COUNTY BOARD OF EDUCATION

COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

,

ALL GOVERNMENTAL FUND TYPES

YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Taxes Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay Debt Service
Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under} Expenditures
OTHER FINANCING SOURCES {USES)
Operating Transfers In Operating Transfers Out
Total Other Financing Sources (Uses}
Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses
FUND BALANCE JULY 1
Food Inventory - Net Change in Period Donated Commodities Purchased Food

GENERAL' FUND

SPECIAL REVENUE FUND

$ 9,769,408.99 $ 118,488.06
3,794,207.32 265,530.73
$ 13,947,635.10 $

323,767.69 2;539,915.95
80,928.80
2,944,612.44

$ 9,444,427.67 $ 1,465,172.17

'-
353,255.25 445,256.32 371,857.32 249,695.46 1,300,789.72 254,993.45 1,471,712.60 834,420.32
22,638.24 100,365.96
189,242.12

86,607.12 35,302.65
80,019:28
22,178.04 46,761.51
71,880.48 1,348,806.47

$ 15,038.,654.43 $ $ -1,091,019.33 $

3,156,727.72 -212, 115.28

$

0.21

$

-0.21

$

-0.21 $

0.21

$ -1,091,019.54 $ 3,962,088.88

-212, 115.07 640,830.52

-462.65 19 663.45

FUND BALANCE JUNE 30

$ 2,871,069.34 $==4=4=7=9=1=6.=2=5

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

EXHIBIT "B"

CAPITAL PROJECTS
FUND

DEBT SERVICE
FUND

TOTALS

(Memorandum Only) YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$ 10,093,176.68 $ 9,749,388.88

2,658,404.01

2,446.943.81

$ 1,325,715.86

5,119,923.18

4,992,837.61

$

14.357.44

121 781.56

482,598.53

504,269.95

$

14,357.44 $ 1447497.42 $ 18,354,102.40 $ 17,693,440.25

$ 10,909,599.84 $ 9,731,288.74

$

150,155.85

439,862.37 480,558.97 371,857.32 329,714.74 1,300,789.72 254,993.45 1,493,890.64 881,181.83
22,638.24 172;246.44 1,348,806.47 339,397.97

524,852.75 464,156.34 342,107.74 350,640.63 1,063,196.59 226,767.14 1,455,176.22 829,277.29
23,362.12 88,112.32 1,123,919.37 805,781.99

$

708,000.00

377,041.00

2 014.00

708,000.00 377,041.00
2 014.00

220,000.00 388,371.00
1 219.00

$

150 155.85 $ 1.087,055.00 $ 19A32,593.oo $ 17,638,229.24

$

-135 798.41 $

360 442.42 $ -1,078,490.60 $

55 211.01

$

0.21

-0.21

$

0.00

$

-135, 798.41 $

360,442.42 $ -1,078,490.60 $

55,211.01

375,701.57

2,221,913.98

7,200,534.95

7,134,584.99

-462.65 19 663.45

5,931.24 4 807.71

$

239,903.16 $ 2,582,356.40 $ 6,141,245.15 $ 7,200,534.95

-5-

MACON COUNTY BOARD OF EDUCATION COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - {NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS
YEAR ENDED JUNE 30. 2001

EXHIBIT "C"

GENERAL FUND

ACTUAL

(BUDGET

BUDGET

BASIS)

REVENUES

State Funds Federal Funds Taxes Other Funds

$ 9,539,179.43 $ 138,000.00
3,310,000.00 134;505.00

9,769,408.99 118,488.06
3,794,207.32 265,530.73

Total Revenues EXPENDITURES

$ 13.121,684.43 $ 13,947,635.10

Current Instruction Support Services Pupil Services Improvement of Instructional Services Educational Media Services General Administration School Administration Business Administration Maintenance and Operation of Plant Student Transportation Services Central Support Services Other Support Services Food Services Operation
Capital Outlay

$ 9,323,137.43 $ 9.444,427.67

406,390.00 400,212.00 425,470.00 259,308.00 1,065,505.00 239,448.00 1,472,342.00 926,572.00
26,000.00 179,740.00

353,255.25 445,256.32 371,857.32 249,695.46 1,300,789.72 254,993.45 1,471,712.60 834.420.32
22,638.24 100,365.96

189,242.12

Total Expenditures

$ 14,724,124.43 $ 15,038,654.43

Excess of Revenues over (under) Expenditures $ -1,602,440.00 $ -1,091,019.33

OTHER FINANCING SOURCES {USES)

Other Sources

$

Other Uses

Total Other Financing Sources (Uses) $

8,000.00 $
8.000:00 $

-0.21 -0.21

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-1,594,440.00 $

-1,091,019.54

FUND BALANCE JULY 1. 2000

3,775,266.54

3,962,088.88

Adjustments Food Inventory - Net Change in Period
Donated Commodities Purchased Food

-56,931.15

FUND BALANCE JUNE 30. 2001

$ 2.123,895.39 $ 2,871,069.34

SPEC~LREVENUEFUND

ACTUAL

(BUDGET

BUDGET

BASIS)

$ 342,580.10 $ 323,767.69 2,574,284.19 2,539,915.95

83,650.00

80,928.80

$ 3,000,514.29 $ 2,944.612.44

$ 1.471.440.85 $ 1.465, 172.17

124,646.00 62,272.00

86,607.12 35,302.65

86,042.00

80,019.28

20,153.00 32,849.00
83,923.53 1,230,350.00

22,178.04 46,761.51
71,880.48 1,348,806.47

$ 3.111,676.38 $ 3,156,727.72 $ -111162.09 $ -212, 115.28

$

0.21

$

0.21

$ -111,162.09 $ -212, 115.07

619,862.01

640,830.52

-12,531.75

-462.65 19,663.45

$ 496 168.17 $ 447,916.25

The notes to the general-purpose financial statements are an integral part of this statement. -7-

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

REPORTING ENTITY

The Macon County Board ofEducation (School District) was established underthe 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 ahy 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 <!- ~elf-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 _runds because they do not directly affect expendable available' financial resources.

General Fixed Assets'"are recorded as expenditures in the various funds at the time of purchase. (\. General Fixed Assets Account Group is not presently maintained by the School District. To conform to generally accepted accounting principles, a General Fixed Assets Account Group should be maintained for repo~ing the cost of assets acquired by governmental fund types.

.

.

Although "school activity accounts" are maintained at the individual schools, neither the assets,

liabilities and fund equity, nor the revenues, expenditures and changes in fund balances of these

accounts are reflected in these financial statements. To conform to generally accepted accounting

principles, these accounts should be recorded in the general-purpose financial statements.

The general-purpose financial statements account for all State, Federal, Taxes and Other'funds under

control of the School District, in compliance with generally accepted accounting principles

applicable to governmental units, unless otherwise disclosed in these notes. Funds anq th_e ~ccount

group presented in this report are as "follows:



GOVERNMENTAL FUND TYPES - are used to account for all or most of a School District's

e

d

u

c

a

t

i

o

n-a

l

~

act

ivitie -

s

.

Governmenta--l F. und Types .includ. e-:

GENERAL FUND - the fund used to account for all financial resources of the School District except those required to be accounted for in another fund. These transactions relate to resources obtained and used for services provided by a board of education.

-8-

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SPECIAL REVEI\1UE FUND - the fund used to account for the proceeds of specific revenue sources (other than for major capital projects) that are legally restricted to expenditures for specified purposes. These funds are received primarily from the Georgia Department of Education and from the Federal government to accomplish specific educational objectives.
CAPITAL PROJECTS FUND - the fund used to account for financial resources to be used for the acquisition or construction of major capital facilities.
DEBT SERVICE FUND - the fund used to account for the accumulation ofresources for, and the payment of, general long-tem1 principal, interest and paying agent fees .
. ACCOUNT GROUP
GENERAL LONG-TERM DEBT ACCOUNT GROUP - A financial reporting device used to account for general obligation debt outstanding.
BASIS OF ACCOUNTING
The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All governmental funds are accounted for using a current financial resources measurement focus. With this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements ofthese funds present increases (i.e., revenues and other financing sources) and decreases (i.e., expenditures and other financing uses) in net current assets. Their reported fund balance is considered a measure of available spendable resources.
Liabilities which are expected to be financed from available spendable resources are reported as liabilities in the governmental funds. Other liabilities, which are not expected to be financed from available spendable resources, are reported in the General Long-Term Debt Account Group.
Governmental funds are accounted for using the modified accrual basis of accounting under which:
Revenues are recognized when susceptible to accrual (i.e., when they become both.measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectiple within the current period or soon enough thereafter to be used to pay liabilities of the current period. The School District considers receivables collected within sixty days after yearend to be available and therefore susceptible to accrual. Nonexchange transactions, in which the School District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, local option sales taxes, intergovernmental grants and donations. Revenue for property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from sales taxes is recognized in the fiscal year the resources are received or susceptible to accrual. Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied.

-9 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES .
Expenditures are generally recognized when the related fund liability is incurred.
A departure from the above definitions is the accounting treatment afforded the final two payments on General Fund teachers' and bus drivers' contracts, and the resources available from the Georgia Department of Education for the State's share of these contracts. During fiscal year 2001, a substantial number ofpersonnel ofthe School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Personnel contracts for this employment period specify that compensation be paid in twelve equal monthly payments beginning in September 2000 and ending in August 2001. State grants to fund the State's share of these contracts were disbursed from the Georgia Department of Education to the School District in the same twelve months. As of June 30, 2001, compensation under these employment contracts had been earned, but two of the twelve monthly payments, due for July and August 2001, had not been made. Payments for these two months were made and recorded as expenditures by the School District subsequent to June 30, 2001. Also, the State's portion ofthe compensation paid inJuly and August 2001 was received and recorded as revenue in the fiscal year supsequent to June 30, 2001. Conversely, the similar expenditures and related revenues for contractual services completed prior to June 30, 2000, were recorded in the year ended June 30, 2001. Generally accepted accounting principles require that revenues be recorded when available and measurable and that expenditures be recorded when incurred, rather than when funds are received or disbursed.
BUDGET
The Macon County Board ofEducation's budget is a complete financial plan for the School District's. fiscal year and is based upon estimates.of expenditures together with probable funding sources. There is no statutory prohibition regarding overexpenditure of the budget at any level. The budget f01: 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 om:e in a newspaper of general circulation in the locality. At the next regular meeting of the Board after advertisement, the Board receives comments on the tentative budget, makes revisions as necessary and adopts a final school budget. This final budget is then submitted, in accordance with provisions of the Quality Basic Education Act, OCGA Section 20-2-167(c), to the Georgia Department of Education. The Board may increase or decrease the budget at any time during the year.. All unexpended budget authority lapses at fiscal year-end.

- 10 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE.FINANCIAL STATEMENTS

JUNE 30, 2ooi

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 of deposit) and repurchase agreements are reported at cost. Participating interest-earning contracts and money market investments with a maturity at purchase of one year or less are reported at amortized cost. Both participating interest-earning contracts and money market investments with a maturity at purchase greater than one year are reported at fair value. The Official Code of Georgia Annotated Section 36-83-4 authorizes the School Distric.t to invest its funds. In selecting among options for investment or among institutional bids for deposits, the highest rate ofreturn shall be the objective, given equivalent conditions of safety and liquidity. Funds may be invested in the following:
(1) Obligations issued by the State of Georgia or by other states,
(2) Obligations issued by the United States government,
(3) Obligations fully insured or guaranteed by the United States government or a United States government agency,
(4) Obligations of any corporation of the'United States government,
(5) Prime banker's acceptances,
(6) The Local Government Investment Pool administered by the State of Georgia, Office of Treasury and Fiscal Services,
(7) Repurchase agreements, and
(8) Obligations of other political subdivisions of the State of Georgia.

(- 11 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 I

Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES'

RECEIVABLES

Receivables consist of grant 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 Macon County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year)on October 29, 2000 (levy date). Taxes were due on December 29, 2000 (lien date). Taxes collected within the current fiscal year or within 60 days after year-end are reported as revenue in fiscal year 2001. The Macon 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 of taxes collected to the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $3,761,490.57 and for school bonds amounted to $100,944.19.

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

School Operations School Bonds

15.20 mills _A_Q mills

15.60 mills

SALES TAXES

Special Purpose Local Option Sales Tax is to be used for capital outlay for educational purposes and debt service. Special Purpose Local Option Sales Tax revenue during the fiscal year amounted to $1,224,771.67 and was recorded in the Debt Service Fund. The State will terminate collection of this tax once an additional $981,559.53 has been collected or on June 30, 2002,. whichever occurs first.

INVENTORIES

FOOD INVENTORIES Inventories of donated food commodities used in the preparation of meals are reported on the Combined Balance Sheet at their Federally assigned value. Purchased foods inventories are reported on the Combined Balance Sheet at cost (first-in, first-out). Donated food commodities arerecorded as revenues and expenditures at the time commodity items are received. Purchased foods inventories are recorded as expenditures at the time of purchase. The inventories reported on the balance sheet

- 12 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JlJNE 30, 2001

Note I: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
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 OBLIGATION BONDS
The School District issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. Bond premiums and discounts, as well as issuance costs, are recognized in the financial statements during the year bonds are issued. In addition, general obligation bonds have been issued to refund existing general obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of the government. The outstanding amount of these bonds is recorded in the General Long-Term Debt Account Group.
INTERFUND TRANSACTIONS
The School District has the following types of interfund transactions:
Reimbursements of expenditures initially made from a fund that are properly applicable to another fund are recorded as expenditures in the reimbursing fund and as reductions of expenditures in the fund that is reimbursed.
Operating transfers are recorded for all interfund transactions other than reimbursements.
MEMORANDUM ONLY - TOTAL COLUMNS
Total columns on the general-purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to f~cilitate financial analysit Data in these columns do not present financial position or results ofoperations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
Note 2: DEPOSITS AND INVESTMENTS
COLLATERALIZATION OF DEPOSITS Official Code of Georgia Annotated (OCGA) Section 45-8-12 provides that there shall not be on deposit at any time in any depository for a time longer than ten days a sum of money which has not been secured by surety bond, by guarantee ofinsurance, or by collateral. The aggregate of the face value of such surety bond and the market value of securities pledged shall be equal to not less than 11 Opercent ofthe public funds being secured after the deduction ofthe amount ofdeposit insurance. If a depository elects the pooled method (OCGA 45-8-13.1) the aggregate of the market value ofthe securities pledged to secure a pool ofpublic funds shall be not less than 110 percent ofthe daily pool

- 13 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30. 2001

Note 2: DEPOSITS AND INVESTMENTS
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 of operating funds placed in demand deposit checking accounts.
Acceptable security for deposits consists of any one of or any combination of the following:
(I) 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 Feder~! Deposit Insurance Corporation,
(3) Bonds, bills, notes, certificates of indebtedness or other direct obligations of the United States or of the State of Georgia,
(4) Bonds, bills, notes, certificates of indebtedness or other obligations of the counties or municipalities of the State of Georgia,
(5) Bonds of any public authority created by the laws of the State of Georgia, providing that the statute t_hat created the authority authorized the use of the bonds for this purpose,
(6) Industrial revenue bonds and bonds of development authorities created by the laws of the State of Georgia, and
(7) Bonds, bills, notes, certificates of indebtedness, or other obligations of a subsidiary corporation of the United States government, which are fully guaranteed by the United States government .both as to_principal and interest or debt obligations issued by the Federal Land Bank, the Federal Home Loan Bank, the Federal Intermediate Credit Bank, the Central Bank for.Cooperatives, the Farm Credit Banks, the Federal I-Iome Loan Mortgage Association, and the Federal Natjonal Mortgage Association.
CATEGORIZATION OF DEPOSITS AtJune 30, 2001, the bank balances were $6,819,585.91. The amounts ofthe total bank balances are classified into three categories of credit risk:
Category. l - 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.
Category2 - Cash collateralized with securities held by the pledging financial institution's trust department or agent in the School District's name.
Catego~y 3 - Uncollateralized deposits. (This includes any bank balance that is collateralized . with securities held by. the pledging financial institution, or by its t.rust department or agent but not in the School District's name.)

- 14 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 2: DEPOSITS AND INVESTMENTS

The School District's deposits are classified by risk category at June 30, 2001, as follows:

Risk Category

Bank Balance

1

$2,418,133.56

2

1,369,178.39

3

3,032,273.96

Total

$ 6,819,585.91

CATEGORIZATION OF INVESTMENTS At June 30, 2001, the carrying value of the School District's total investments was $231,474.63 which is materially the same as fair value. This investment consisted entirely of funds invested in the Local Government Investment Pool administered by the State ofGeorgia, Office ofTreasury and Fiscal Services which are not required to be categorized since the School District did not own any specific identifiable securities in the pool. The investment policy ofthe State of Georgia, Office of Treasury and Fiscal Services for the Local Government Investment Pool (Primary Liquidity Portfolio) does not provide for investment in derivatives or similar investments. A description ofthe Primary Liquidity Portfolio is as follows:

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

Investments in Georgia Fuhd 1 and Fund 6 are directed toward short-term instruments such as U.S. Treasury obligations, securities issued or guaranteed as to principal and interest by the U. S. Government or any of its agencies or instrumentalities, banker's acceptances and repurchase agreements. The weighted average maturity of Georgia Fund 1 may not exceed 60 days. The weighted average maturity for Georgia Fund 1 on June 30, 2001, was 39 days. The average investment duration for Fund 6 on June 30, 2001, was 6 months.

- 15 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 2001

Note 3: NON-MONETARY TRANSACTIONS

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

Note 4: RISK MANAGEMENT

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

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

The School District has elected to self-insure for all losses related to natural disaster.. The School

District has not experienced any losses related to this risk in the past three years.

.

'

.

The School District is self-insured with regard to unemployment compensation claims. The School District accounts for claims within the same fund that the employee's salary and benefits were paid. Claims are accounted for with expenditure and liability being reported when itis probable that a loss has occurred, and the amount of that loss can-be reasonably estimated.

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

2000 2001

Beginning ofYef(r Liability

Claims and . Changes in
Estimates

"$

0.00 $

2,930.00 $

$

0.00 $

0.00 $

Claims. Paid

End of Year Liability

2,930.00 ,$

0.00

0.00 $

0.00

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 S~hool District pays an

annual premium to the Trust for its general i_nsuraqce coverage. Additional insurance coverage is

provided through an agreement by the Trust with the United States Fidelity and Guaranty Company

to provide coverage for potential losses sustained by the Trust in excess of $250,000.00 loss per

occurrence, up to $2,000,000.00.







'

'

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

--16- -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, '.2001

Note 4: RISK MANAGEMENT Position Covered
Superintendent Each Principal
Note 5: GENERAL LONG-TERM DEBT

Amount
$ 10,000.00 $ 5,000.00

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

Purpose

Interest Rates

Amount

General Government - Series 1994 General Government - Series 1997 General Government - Refunding - Series 1998

3.75% - 6.35% 4.95% 4.25% - 4.65%

$ 830,000.00 1,250,000.00 5,177,000.00

$ 7,257,000.Q0

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

General Obligation
Bonds

Balance July 1, 2000

$ 7,965,000.00

Deductions Debt Retired
\ Balance June 30, 2001

708,000.00 $ 7,257,000.00

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

- 17 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FfNANCIAL STATEMENTS

JUNE 30, 2001

Note 5: GENERAL LONG-TERM DEBT

Fiscal Year Ended June 30

General Obligation
Bonds

2002 2003 2004 2005 2006 2007 - 2011 2012 - 2016

$ 1,219,345.00 1,308,134.00 603,997.00 604,761.00 611,696.00 3,175,815.00 1,996,365.50

Total Principal and Interest

$ 9,520,113.50

Note 6: PRIOR YEAR DEFEASEMENT OF DEBT

In fiscal year 1999, the School District defeased certain general obligation bonds by placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust acc<?unt assets and the liability for the defeased bonds are not included in. the School District's general-purpose financial statements. At June 30, 2001, $4,640,000.00 of bonds are outstanding and are considered defeased.

Note 7: ON-BEHALF PAYMENTS

The

School

Dist.rict

has

recognized

revenues

and

expenditures

in

the

amount '

of $280,638.31

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 $216,105.51

Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of$19,486.80

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 $45,046.00

- 18 -

MACON COUNTY BOARD OF EDUCATION

EXHIBIT "D"

NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS

JUNE 30, 200 i

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.

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: RETIREMENT PLANS

TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS)

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

TRS CONTRIBUTIONS REQUIRED AND MADE Employees ofthe School District who are covered by TRS are required by State statute to contribute 5% of their gross earnings to TRS. The School District makes monthly employer contributions to TRS at rates adopted by the TRS Board of Trustees in accordance with State statute and as advised by their independent actuary. The required employer contribution rate is 11.29% and employer contributions for the current fiscal year and the preceding two fiscal years are as follows:

Fiscal Year

Percentage Contributed

Required Contribution

2001 2000 1999

100% 100% 100%

$ 1,080,301.57 $ 989,969.40 $ 935,775.42

- 19 -

MACON COUNTY BOARD OF EDUCATION COMBINING.BALANCE SHEET SPECIAL REVENUE FUND JUNE 30, 2001

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

SCHOOL FOOD
SERVICES FUND

LOTTERY PROGRAMS

$

505,930.36 $

49,229.22

40,308.93

19,987.26 36 067.38

Total Assets

$

602,293.93 $===4;,;;;9,1,,;;,2;,;;;2=9=2.2...

LIABILITIES AND FUND EQUITY
LIABILITIES
Cash Overdraft Accounts Payable Salaries Payable Deferred Revenue
Total Liabilities
FUND EQUITY
Fund Balances Reserved For Continuation of Federal Programs . For Continuation of State Programs For Inventories Food
>
Donated Commodities Purchased Food Unreserved Undesignated
Total Fund Equity
Total Liabilities and Fund Equity
See notes to the general-purpose financial statements.
-_20 - .

$

93,137.68 $

61,240.00

.$

154 377.68 $

11,825.70 26,228.00 11 175.52
49,229.22

$

19,987.26

36,067.38

391 861.61 $

0.00

$

447 916.25 $

0.00

$

602,293.93 $===4~9,1,,;;,2~2=9=2.2...

EXHIBIT"E"

FEDERAL PROGRAMS

TOTALS

JUNE 30, 2001

JUNE 30, 2000

$ 555,159.58 $

706,675.86

$

177,068.72

217,377.65

163,834.28

19,987.26 36,067.38

20,449.91 16,403.93

$

177068.72 $

828,591.87 $ ==9=0=7=,3=63=.9=8=

$

22,803.26 $

22,803.26

49,595.41

154,558.79 $

89,713.46

97,368.00

184,836.00

176,820.00

7 302.05

18,477.57

$

177,068.72 $

380,675.62 $

266,533.46

$

4,571.08

19,883.28

$

19,987.26

36,067.38

20,449.91 16,403.93

$

0.00

391,861.61

579,522.32

$

0.00 $

447 916.25 $

640,830.52

$

177,068.72 $

828,591 .87 $ ==9=0=7=,3=63==98=

- 21 -

r
I
?
MACON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
SPECIAL REVENUE FUND YEAR ENDED JUNE 30, 2001

REVENUES
State Funds Federal Funds Other Funds
Total Revenues
EXPENDITURES
Current Instruction Support Services Pupil Services Improvement of Instructional Services General Administration Maintenance and Operation cif Plant Student Transportation Services Other Support Services Food.Services Operation
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES
Operating Transfers In
Excess of Revenues and Other 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

$

82,204.00 $

1,002,915.20

76,026.56

$ f 161 145.76 $

241,563.69 241,563.69

$
$ 1 348 806.47 $ 1,348,806.47 $ $ -187,660.71 $

221,578.18 32,485.75 187.84 7,000.00 195.20
261,446.97 -19,883.28

$ -187,660.71 $ 616,376.16

-19,883.28 19,883.28

-462.65 19,663.45

$

447,916.25 $=====0-~00=

See notes to the general-purpose financial statements.

EXHIBIT"F"

FEDERAL PROGRAMS

TOTALS

YEAR ENDED

JUNE 30, 2001

JUNE 30, 2000

$

323,767.69 $

351,209.30

$ 1,537,000.75

2,539,915.95

2,328,327.48

4,902.24

80,928.80

75,862.53

$ 1,541,902.99 $ 2 944,612.44 $ 2,755,399.31

$ 1,243,593.99 $ 1,465,172.17 $ 1,375,694.27

54,121.37 35,302.65 79,831.44 15,178.04 46,566.31 71,880.48

86,607.12 35,302.65 80,019.28 22,178.04 46,761.51 71,880.48 1,348,806.47

54,199.69 46,511.31 79,348.25 10,877.41 29,660.31 44,838.93 1,123,919.37

$ 1,546,474.28 $ 3,156,727.72 $ 2,765,049.54

$

-4,571.291 $

-212,115.28 $

-9,650.23

0.21

0.21

$

-4,571.08 $

-212,115.07 $

-9,650.23

4,571.08

\ 640,830.52

639,741.80

-462.65 19,663.45

5,931.24 4 807.71

$

0.00 $

447,916.25 $ ==6=4=0"=,8=30==52=

- 23 -
f

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

EXHIBIT "G"

ASSETS Cash and Cash Equivalents Investments

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INV~STl'v\ENT COMMISSION

TOTALS JUNE 30, 2001 JUNE, 30, 2000

$

8,428.53 $

s 8,428.53

94,863.40

$ 231,474.63

231,474.63

317117.19

Total Assets

S 231,474.63 $

8 428.53 $ 239,903.16 $ 411 980.59

LIABILITIES AND FUND EQUITY
LIABILITIES
Contracts Payable
FUND EQUITY
Fund Balances Reserved For Purposes of Bond Issue For State Capital Outlay Projects Unreserved Undesignated
Total Fund Equity

s 36,279.02

$ 231,474.63 $
0.00 ;
$ 231,474.63 $

$ 8,428.53
o.oo.
8,428.53 $

231,474.63 $ 8,428.53
0.00
239,903.16 $

317,117.19 58,584.38
0.00
375 701.57

Total Liabilities and Fund Equity

$ 231,474.63 $

8 428.53 $ 239,903.16 $ 411,980.59

See notes to the general-purpose financial statements.

- 24 -

MACON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
CAPITAL PROJECTS FUND YEAR ENDED JUNE 30 2001

EXHIBIT "H"

REVENUES

BOND PROCEEDS

GEORGIA STATE FINANCING AND
INVESTMENT COMMISSION

TOTALS YEAR ENDED JUNE 30 1 2001 JUNE 30 1 2000

Other Funds EXPENDITURES

$ 14 357.44 $

0.00 $

14 357.44 $

22,869.36

Capital Outlay Land and Land Improvements Building and Building Improvements Equipment
Total Expenditures
Excess of Revenues over (under) Expenditures
OTHER FINANCING SOURCES (USES)

$

0.00 $

$

0.00 $

s 14 357.44 $

6,033.16 $ 53,092.19 91,030.50

6,033.16 $ 53,092.19 91,030.50

89,311.98 161,708.01 29 413.49

150,155.85 $ 150,155.85 $ 280,433.48

-150, 155.85 $ -135 798.41 $ -257,564.12

Operating Transfers In Operating Transfers Out

$ $ -100,000.00

Total Other Financing Sources (Uses) $ -100,000.00 $

Excess of Revenues and Other Financing Sources

over (under) Expenditures and Other Financing

Uses

$

-85,642.56 $

FUND BALANCE JULY 1

317117.19

100,000.00 $ 100 000.00 $

100,000.00 $ -100,000.00
0.00 $

150,000.00 -150,000.00
0.00

-50.155.85 $ 58,584.38

-135,798.41 $ 375 701.57

-257,564.12 633,265.69

FUND BALANCE JUNE 30

$ 231 474.63 $

8 428.53 $ 239,903.16 $ ==3=7=5=7=0=1=57=

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

25

MACON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001

EXHIBIT"!"

ASSETS Cash and Cash Equivalents Accounts Receivable
Total Assets

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS

JUNE 30, 2001

JUNE 30. 2000

$ 171,411.01 $ 2,046,722.55 $ 2,218,133.56 $ 2,039,210.54

3,669.24

361,083.60

364,752.84

182,703.44

$ 175,080.25 $ 2,407,806.15 $ 2,582,886.40 $ 2,221,913.98 .

LIABILITIES AND FUND EQUITY

LIABILITIES

Accounts Payable FUND EQUITY

$

530.00

Fund Balances Reserved For Debt Service Unreserved Undesignated
Total Fund Equity

$ 174,550.25 $ 0.00
$ 174,550.25 $

$

530.00

2,407,806.15 $ 2,582,356.40 $ 2,221,913.98

0.00

0.00

0.00

2,407,806.15 $ 2,582,356.40 $ 2,221,913.98

Total_ Liabilities an_d Fund Equity $ 175.080.25 $ 2 407 806.15 $ 2,582,886.40 $ 2,221,913.98

/'

See notes to the general-purpose financial statements.

- 26 -

MACON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
DEBT SERVICE FUND YEAR ENDED JUNE 30. 2001

EXHIBIT "J"

REVENUES
Taxes Other Funds
Total Revenues
EXPENDITURES
Debt Service Principal Interest Paying Agent Fees
Total Expenditures
Excess of Revenues over (under) Expenditures
FUND BALANCE JULY 1

PROPERTY TAXES FOR BOND DEBT

SPECIAL PURPOSE LOCAL OPTION SALES TAX

TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000

s $ 100,944.19
3,396.07
$ 104,340.26 $

1,224,771.67 $ 1,325,715.86 $ 1,290,080.97

118 385.49

121,781.56

87 054.71

1 343157.16 $ 1 447 497.42 $ 1 377 135.68

$ $ 188,520.50
2,014.00
$ 190,534.50 $'

708,000.00 $ 188,520.50

708,000.00 $ 377,041.00
2 014.00

s 896,520.50

1,087,055.00 $

220,000.00 388,371.00
1 219.00
609,590.00

$ -86,194.24 $

446,636.66 $ 360,442.42 $ 767,545.68

260,744.49

1,961,169.49

2,221,913.98

1,454,368.30

FUND BALANCE JUNE 30

$ 174,550.25 $ 2,407,806.15 $ 2,582,356.40 $ 2,221,913.98

See notes to the general-purpose financial statements.

- 27 -

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

. SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

Agriculture, U. S. Department of

Child Nutrition Cluster

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Services

School Breakfast Program

~'

National School Lunch Program

10.553 10.555

N/A

$ 278,987.19

(2)

NIA

659,191.10 $

1,284,069.56 (3)

Total Child Nutrition Cluster

$ 938,178.29 $

1,284,069.56

Other Programs

Pass-Through From Georgia Department of Education

Food and Nutrition Program

Food Distribution Program (1)

10.550

N/A

64,736.91

64,736.91

Total U.S. Department of Agriculture

$ 1,002,915.20 $

1,348,806.47

Education, U. S. Department of Special Education Cluster Pass-Through From Georgia Department of Education Individuals with Disabilities Education Act Part B - Special Education Flow Through Capacity Building Improvement Grant Pass-Through From Crisp County Board of Education Individuals with Disabilities Education Act Part B - Special Education Preschool

84.027 84.173
84.173

N/A

$ 140,454.90 $

NIA

3,380.27

140,459.27 3,380.27

NIA

11,051.28

11,086.35

Total Special Education Cluster

$ 154,886.45 $

154,925.89

Other Programs

Direct

Impact Aid

84.041

4,370.59

TitleX

21st-Century Community Learning Centers

84.287

466,733.20

Pass-Through From Georgia Department of Education

Elementary and Secondary Education Act

Title I Grants to Local Educational Agencies

84.010

N/A

761,944.29

Title II Eisenhower Professional Development

84.281

N/A

14,461.06

Title VI

Innovative Education Program Strategies

84.298

N/A

24,170.00

Class Size Reduction

84.340

NIA

.112,414.00

Vocational Education - Basic Grants to States

High School Program Basic Grant

84.048

N/A

2,391.75

Pass-Through From Chattahoochee-Flint RESA

Elementary and Secondary Education Act

Title I

Migrant Education

84.011

N/A

Safe and Drug-Free Schools and Communities

84.186

N/A

21,584.61 57,884.62

(5) 472,097.53 (3)
761,944.82 14,756.65 24,170.00
112,414.00
6,165.39
(4) (4)

Total U. S. Department of Education

$ 1,620,840.57 $

1,546,474.28

- 28-

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

SCHEDULE "1"

FUNDING AGENCY PROGRAM/GRANT
Justice, U.S. Department of Direct Public Safety Partnership and Community Policing Grant
Defense, U. S. Department of Direct Teacher and Teacher's Aide Placement Assistance Program

CFDA NUMBER

PASSTHROUGH
ENTITY ID
NUMBER
~

FEDERAL REVENUE IN PERIOD

EXPENDITURES IN PERIOD

16.710

$ 71,522.54

(4)

OFA

$ -36,874.30

(4)

Total Federal Financial Assistance N/A = Not Available

$ 2,658,404.01 $====2,=8=95=,2=8=0=.7=5

Notes to the Schedule of Expenditures of Federal Awards

(1) The amounts shown for,the Food Distribution Program represents the Federally assigned value of nonmonetary assistance for donated commodities received and/or consumed by the system during the current fiscal year.
(2) Expenditures for the School Breakfast Program were not maintained separately and are included in the 2001 National School Lunch Program.
(3) Expenditures for this program include State, and/or Other Funds. Expenditures are not maintained by fund source.
(4) Expenditures on this program were not maintained by fund source. (5) Funds earned on this program do not require reporting of expenditures.

Major Programs are identified by an asterisk (*) in front of the CFDA number.

The School District did not provide Federal Assistance to any Subrecipient.

The accompanying schedule of expenditures of Federal awards includes the Federal grant activity of the Macon County Board of Education and is presented on the modified accrual basis of accounting which is the basis of accounting used in the presentation of the general-purpose financial statements.

See notes to the general-purpose financial statements.

- 29 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Community Affairs, Georgia Department of Local Assistance Grant
Education, Georgia Department of Quality Basic Education Direct Instructional Cost Kindergarten Program Kindergarten Program.- Early Intervention Program Primary Grades (1-3) Program Primary Grades - Early Intervention (1-3) Program Upper Elementary Grades (4-5) Program Middle School (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category II Category Ill Category IV Remedial Education Program Alternative Education Program English Speakers of Other Languages (ESOL) Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Migrant Education Mid-term Adjustment Hold-Harmless Educational Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Mentoring Program Mentor Teachers Remedial Summer School Program Student Achievement - Team Leader Student Achievement - Literacy Institutes Teachers' Retirement Lottery Programs Computers in the Classroom
Office of School Readiness Pre-Kindergarten Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

25,000.00

$

25,000.00

474,359.00 41,761.00
1,444,322.00 38,780.00
740,540.00 1,325,580.00 1,042,776.00
320,311.00
319,723.00 183,681.00
59,566.00 142,146.00
97,071.00 18,840.00 208,416.00 50,756.00 1,317,429.00

455,321.00 140,868.00
61,265.00 8,853.00
11,881.00 5,641.00
110,966.00 603,402.00
$ 2,751.32

82,204.00

6,821.09 216,105.51
2,287.16 1,793.00 5,926.94 50,000.00 6,504.00 19,486.80

46,239.54

195,324.15

474,359.00 41,761.00
1,444,322.00 38,780.00
740,540.00 1,325,580.00 1,042,776.00
320,311.00
319,723.00 183,681.00
59,566.00 142,146.00
97,071.00 18,840.00 208,416.00 50,756.00 1,317,429.00
455,321.00 140,868.00
61,265.00 8,853.00
11,881.00 5,641.00
110,966.00 603,402.00
82,204.00 2,751.32
6,821.09 216,105.51
2,287.16 1,793.00 5,926.94 50,000.00 6,504.00 19,486.80
46,239.54
195,324.15

- 30 -

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

SCHEDULE "2"

AGENCY/FUNDING
GRANTS Office of Treasury and Fiscal Services Public School Employees Retirement
CONTRACTS Education, Georgia Department of Georgia's Reading Challenge School Improvement Program

GOVERNMENTAL FUND TYPES

SPECIAL

GENERAL

REVENUE

FUND

FUND

TOTAL

$

45,046.00

$

45,046.00

113,433.17 50,000.00

113,433.17 50,000.00

$ 9,769,408.99 $ 323,767.69 $ 10,093,176.68

See notes to the general-purpose financial statements.

- 31 -

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

SCHEDULE "3"

PROJECT

ESTIMATED ORIGINAL COST (1)

CURRENT ESTIMATED
COST (2)

AMOUNT EXPENDED IN CURRENT YEAR (3)(4)

AMOUNT EXPENDED
IN PRIOR YEARS (3)

PROJECT STATUS

Funding the repayment of the principal and interest on the School District's General Obligation School Bonds, Series 1994 maturing February 1, 1998 through August 1, 2003

s $ 3,900,000.00

3,900,000.00 $

550,891.00 $

1,436,767.75

Ongoing

The acquisition, construction, and equ_ipping of a new middle school, construction of renovations and additions to Macon County High School, purchasing future school sites, school furnishings, equipment and fixtures, and renovating, expanding and enlarging existing school facilities

8.833,640. 72

9,861,750.40

150,155.85

9,711,594.55 Ongoing

s 12.733,640.72 $ 13,761,750.40 $ 701,046.85 $ 11,148,362.30

(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 current estimate of total cost for each project. Includes all cost from project inception to completion.

(3) The voters of Macon County approved the imposition of a 1% sales tax to fund the above projects. Amounts expended for these projects may include sales tax proceeds, state. local property taxes and/or other funds over the life of the projects.

(4) In addition to the expenditures shown above. the School District has incurred interest to provide advance funding for the above projects as follows:

Prior Years

$ 238,425.00

Current Year
I
Total

84,150.00 $ ==3=2=2=,5=75=.0=0=

See notes to the general-purpose financial statements.

- 33 -

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

SCHEDULE "4"

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

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

SALARIES

OPERATIONS

TOTAL

$

548,608.00 $ 662,178.51 $ 27,602.84 $

689,781.35

48,298.00

46,094.91

2,884.85

48,979.76

1,670,393.00 1,964,489.50

59,155.00

2,023,644.50

44,850.00

57,025.31

4,171.63

61,196.94

856,452.00

790,076.84

34,967.77

825,044.61

1,533,065.00 1,596,308.84

99,511.91

1,695,820.75

1,205,995.00 1,465,662.13

74,384.41

1,540,046.54

370,447.00

351,066.72

20,315.05

371,381.77

651,089.00

323,204.08

8,763.23

331,967.31

409,166.27

5,232.49

414,398.76

3,888.96

778.55

4,667.51

164,395.00

188,592.79

188,592.79

112,265.00

275,947.30

11,056.61

287,003.91

21,790.00

25,539.21

656.40

26,195.61

$

7,227,647.00 $ 8,159,241.37 $ 349,480.74 $ 8,508,722.11

241,038.00 58,701.00

306,814.84 14,461.34

58,244.84 48,972.63

365,059.68 63,433.97

TOTAL QBE FORMULA FUNDS

7,527,386.00 $ 8,480,517.55 $ 456,698.21 $ 8,937,215.76

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

See notes to the general-purpose financial statements.

- 34 -

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

SCHEDULE "5"

Macon County Elementary School Macon County Middle School Macon County High School D. F. Douglass Alternative Center Central Office (Alternative Education Program)
TOTAL
(1) Comprised of State Funds plus Local Five Mill Share.

ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1)

ELIGIBLE QBE PROGRAM COSTS

$

3,598,843.00 $

4,323,212.52

1,686,038.00

1,904,503.88

1,830,501.00

2,121,117.53

159,888.18

112,265.00

$

7,227,647.00 $ =====8~,5=08=-'=72=2=.1=1

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

SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS

'l!SSELI. \V. HINTON
STATE AUDITOR (404) 656-2174

DEPARTl\1ENT OF AUDITS AND ACCOUNTS
:.'.'-l W:1sl1ingto11 Strct:l. S.\V.. Suitt: 21-l :\1 bnta. Georgia 1011-l-X-l(I()
March 11, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Macon 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 ofMacon County Board ofEducation as ofand for the year ended June 30, 2001, and have issued our report thereon dated March 11, 2002. This report was qualified for a scope limitation and for various departures from generally accepted accounting principles, as identified in the auditor's report on the general-purpose financial statements. Except as discussed in the following paragraph, 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.
We did not observe the taking of either the Federal donated commodities inventory or the purchased foods inventory at June 30, 2001, nor could we satisfy ourselves as to the accuracy of the amounts stated as inventories through alternative procedures.
Compliance
As part of obtaining reasonable assurance about whether Macon County Board of Education's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grants, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results ofour tests disclosed no instances ofnoncompliance that are required to be reported under Government Auditing Standards.
2001YB-41

Internal Control Over Financial Reporting
In planning arid performing our audit, we considered Macon County Board of Education's internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control over financial reporting. However, we noted a certain matter involving the internal control over financial reporting and its operation that we consider to be a reportable condition. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation ofthe internal control over financial reporting that, in ourjudgment, could adversely affect Macon County Board of Education's ability to record, process, summarize and report financial data consistent with assertions of management in the financial statements. The reportable condition is described in the accompanying Schedule ofFindings and Questioned Costs as item FS-6941-01-01.
A material weakness is a condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. Our consideration of the internal control over financial reporting would not necessarily disclose all matters in the internal control that might be reportable conditions and, accordingly, would not necessarily disclose all reportable conditions that are also considered to be material weaknesses. However, we consider item FS-6941-01-01 to be a material weakness.
This report is intended solely for the information and use ofthe management, members ofthe Macon County Board ofEducation, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
----Respectfully submitted,
RWH:as 2001 \713-41

IR1ussu.1. \\'. HtNTor-
STATE AUDITOR (404) 656-2174

DEPARTMENT OF AUDITS AND ACCOUNTS
2:i--1 \\\1sl1ington Street. S.W.. Suitt: 2 l'-1 :\t l;.1111;.i. (it:orgia W.s.,--1-~--l(J(l
March 11, 2002

Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education
and Superintendent and Members of the Macon 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 ofMacon County Board ofEducation with the types ofcompliance requirements described in the U.S. Office of Management and Budget (0MB) Circular A-133 Compliance Supplement that are applicable to each ofits major Federal programs for the year ended June 30, 2001. Macon County Board of Education's major Federal programs are identified in the Summary of Auditor's Results Section of the accompanying Schedule ofFindings and Questioned Costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major Federal programs is the responsibility of Macon County Board of Education's management. Our responsibility is to express an opinion on Macon County Board of Education's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Generai of the United States; and 0MB Circular Al 33, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and 0MB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types ofcompliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the Macon 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 Macon County Board of Education's compliance with those requirements.
2001SA-I0

In our opinion, the Macon County Board of Education complied, in all material respects, with the
requirements referred to above that are applicable to each of its major Federal programs for the year ended June 30, 2001.
Internal Control Over Compliance
The management of Macon 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 Macon County Board ofEducation's internal control over compliance with requirements that could have a direct and material effect on a major Federal program in order to detern1ine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with 0MB Circular A-133.
Our consideration of the 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 of performing their assigned functions. We noted no matters involving the internal control over compliance and its operation that we consider to be material weaknesses.
This report is intended solely for the information and use ofthe management, members ofthe Macon County Board of Education, Federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties.
'-
Respectfully submitted,
RWH:as 2001SA-10

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

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

PRIOR YEAR FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS

FINDING CONTROL NUMBER AND STATUS

FS-6941-98-01 FS-6941-99-01 FS-6941-99-02 FS-6941-00-01 FS-6941-00-02

Previously Reported Corrective Action Implemented Unresolved - See Corrective Action/Responses Further Action Not Warranted Unresolved - See Corrective Action/Responses Unresolved - See Corrective Action/Responses

CORRECTIVE ACTION/RESPONSES

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $275,661.96 Finding Control Number: FS-6941-99-01

This finding will be resolved by the Georgia Department of Education through a future increase in the School District's Local Five Mill Share portion of QBE allotments.

EXPENDITURES/LIABILITIES/DISBURSEMENTS Failure to Meet Expenditure Requirements Amount: $164,131.08 Finding Control Number: FS-6941-00-01

This finding will be resolved by the Georgia Department of Education through a future increase in the School District's Local Five Mill Share portion of QBE allotments.

GENERAL FIXED ASSETS Failure to Maintain General Fixed Assets Account Group Finding Control Number: FS-6941-00-02

Due to current staffing limitations and budgetary considerations prohibiting the hiring of additional administrative staff, the Macon County Board of Education has decided not to pursue the recording of general fixed assets on its financial statements.

SECTION IV FINDINGS AND QUESTIONED COSTS

MACON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001

I SUMMARY OF AUDITOR'S RESULTS

1. Type of Report Issued on the Financial Statements The auditor's opinion on the Macon County Board of Education's financial statements was qualified for a scope limitation and 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 Macon County Board of Education disclosed a financial statement reportable condition related to the following control category.

General Fixed Assets

The reportable condition described above is considered to be a material weakness.

3. Noncompliance Material to the Financial Statements The audit ofthe Macon County Board ofEducation disclosed no instances ofnoncompliance that were deemed to be material to the financial statements.

4. Reportable Conditions in Internal Control Over Major Programs The audit report for the Macon County Board of Education did not disclose any reportable conditions in internal control over major programs.

5. Type of Report Issued on Compliance for Major Programs The auditor's opinion on the Macon County Board ofEducation's report on compliance with requirements applicable to major programs was unqualified.

6. Audit Findings Required to be Reported by Section .51 0(a) of 0MB Circular A-133 The Macon County Board of Education's audit did not disclose audit findings required to be reported by section .510(a) ofOMB Circular A-133.

I

\

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

84.287 Title X - 21st-Century Community Learning Centers

8. Type "A" Program Dollar Threshold The dollar threshold for type "A" programs was $300,000.00.

9. Low Risk Auditee The Macon County Board of Education qualified as a. low risk auditee based on a waiver granted by the U.S. Department of Education.

I

\

\

- 1-

MACON COUNTY BOARD OF EDUCATION SCHEDULE OF FINDINGS AND QUESTIONED COSTS
YEAR ENDED JUNE 30, 2001
II FINANCIAL STATEMENT FINDINGS AND QUESTIONED COSTS
GENERAL FIXED ASSETS Failure to Maintain G~neral Fixed Assets Account Group Reportable Condition~ Material Weakness Repeated from Prior Year Finding Control Number: FS-6941-01-01
.The Macon County Board of Education did not maintain a system-wide General Fixed Assets Account Group within the formal accounting records as required bygenerally accepted accounting principles. This condition results in the general-purpose financial statements of the School District being incomplete and not in accordance with generally accepted accounting principles. Appropriate action should be taken by the School District to establish accounting controls and procedures to provide for maintenance of a General Fixed Assets Account Group. These subsidiary records should include an inventory of land, buildings and equipment owned by the School District and should include, but may not be limited to, date acquired, acquisition cost, estimated replacement cost, location and description. Detailed recorcjs should be maintained of all additions and deletions ofthe General Fixed Assets Account Group.
Management's Response:
We concur with this finding. Due to current GASB 34 requirements~ the Macon County Board of Education expects to eliminate this finding in the FY 03 fiscal year.
ill FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
No matters were reported.

j

-2-

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