. . '"~---- ~--~-.:>crmoo'.C.c:tor.::,-rJ-\.-rr.-KCtV'.c:,1--.0.c; . . :ZlS . . 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 29 MADISON 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 ACTUAL (NON-GAAP BASIS) GENERAL AND SPECIAL REVENUE FUNDS 6 D NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS 7 ADDIDONAL FINANCIAL INFORMATION COMBINING STATEMENTS SPECIAL REVENUE FUND E COMBINING BALANCE SHEET 18 F COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 20 CAPITAL PROJECTS FUND G COMBINING BALANCE SHEET 22 H COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 23 DEBT SERVICE FUND I COMBINING BALANCE SHEET 24 J COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES 25 SCHEDULES 1 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 26 2 SCHEDULE OF STATE REVENUE 28 3 SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS 29 ,, MADISON COUNTY BOARD OF EDUCATION -TABLE OF CONTENTS- SECTION I FINANCIAL ADDmONAL FINANCIAL INFORMATION SCHEDULES ALLOTMENTS AND EXPENDITURES GENERAL FUND - QUALITY BASIC EDUCATION PROGRAMS (QBE) 4 BY PROGRAM 30 5 BY SITE 31 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 WITII GOVERNMENT AUDITING STANDARDS REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITII 0MB CIRCULARA-133 SECTION ill AUDITEE'S RESPONSE TO PRIOR YEAR FINDINGS AND QUESTIONED COSTS SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS SECTIONN FINDINGS AND QUESTIONED COSTS SCHEDULE OF FINDINGS AND QUESTIONED COSTS SECTION! FINANCIAL RussELL W. HINTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 2, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Madison 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 Madison 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 Madison 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 material 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. 2001ARL-13 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: * 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 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 accuracy 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 ofthe Madison County Board ofEducation as ofJune 30, 2001, and the results of its operations for the year then ended, inconformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated July 2, 2002, on our consideration of the Madison 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 Madison 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 information has been subjected to the auditing procedures applied in the audit ofthe 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 ofthe food service inventories 2001ARL-13 as discussed in the third paragraph, and except for the effects ofthe matters referred to in the fourth paragraph, such information is fairly stated, in all material respects, in relation to the general-pwpose financial statements taken as a whole. 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 2001ARL-13 State Auditor MADISON COUNTY BOARD OF EDUCATION MADISON COUNTY BOARD OF EDUCATION COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUP JUNE 30. 2001 ASSETS Cash and Cash Equivalents. 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 Capital Lease Agreements GENERAL FUND GOVERNMENTAL FUND TYPES SPECIAL CAPITAL REVENUE PROJECTS FUND FUND $ 858,326.41 $ 341,477.49 $ 0.00 3,019,971.22 245,412.80 38,146.45 14,229.31 Total Assets $ 3,878,297.63 $ 639,266.05 $ 0.00 LIABILITIES AND FUND EQUITY LIABILITIES Accounts Payable Salaries Payable Expired Grant Balances Payable Retainages Payable Deferred Revenue Capital Lease Agreements General Obligation Bonds Payable Total Liabilities FUND EQUITY Fund Balances Reserved For Bus Replacement Funds For Continuation of Other Programs For Debt Service For Expired Grant Balances/Questioned Costs For Inventories Food Donated Commodities Purchased Food For Purpose of Bond Issue Unreserved Undesignated Total Fund Equity $ 748,161.24 $ 2,680,332.46 63,440.31 266,395.15 512.41 7,361.76 $ 3,428,493.70 $ _~33::..:.7..r.a7,..::.09:..:..6;:o.::3:_ $ 161,593.41 33,750.00 $ 38,146.45 14,229.31 254,460.52 249,180.66 $ $ 449,803.93 $ 301,556.42 $ Total Liabilities and Fund Equity $ 3,878,297.63 $ 639,266.05 $ The notes to the general-purpose financial statements are an integral part of this statement. -2- 0.00 0.00 0.00 EXHIBIT"A" DEBT SERVICE FUND $ 2,439,199.83 324,151.61 ACCOUNT GROUP GENERAL LONG-TERM DEBT TOTALS (Memorandum Only) JUNE 30, 2001 JUNE 30, 2000 $ 3,639,003.73 $ 3,329,590.69 3,589,535.63 3,192,996.21 $ 2,763,351.44 38,146.45 14,229.31 2,763,351.44 32,761.58 10,184.98 2,162,413.94 5,181,648.56 201,351.40 5,181,648.56 201,351.40 6,992,586.06 236,046.63 $ 2,763,351.44 $ 8,146,351.40 $ 15,427,266.52 $ 15,956,580.09 $ 811,601.55 $ 785,378.12 2,946,727.61 2,652,017.51 512.41 1,274.56 195,388.00 7,361.76 $ 201,351.40 201,351.40 236,046.63 7,945,000.00 7,945,000.00 9,155,000.00 $ 8,146,351.40 $ 11,912,554.73 $ 13,025,104.82 $ 2,763,351.44 0.00 $ 2,763,351.44 $ 161,593.41 $ 114,635.09 33,750.00 108,750.00 2,763,351.44 2,162,413.94 469.43 38,146.45 14,229.31 32,761.58 10,184.98 513.51 503,641.18 501 746.74 $ 3,514,711.79 $ 2,931,475.27 $ 2,763,351.44 $ 8,146,351.40 $ 15,427,266.52 $ 15,956,580.09 -3- MADISON 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 Community Services Operations Capital Outlay Debt Service Principal Interest Paying Agent Fees Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES (USES} Capital Leases 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 $ 20,221,317.78 $ 5,924,723.33 691,158.12 $ 26,837,199.23 $ 318,975.00 2,371,669.13 687,916.14 3,378,560.27 $ 18,774,295.77 $ 432,360.71 _ 524,332.39 825,874.95 549,942.73 1,705,278.64 119,905.26 1,871,638.44 1,120,779.15 230,033.96 223,144.76 5,919.86 208,591.85 67,175.73 73,293.95 1,470,297.07 199,810.18 74,807.06 27,236.78 4,527.02 42,500.00 35,925.80 1,619,988.97 8,397.88 $ 26,732,568.15 $ $ 104,631.08 $ 3,483,490.76 -104,930.49 $ 32,480.50 -$ -83,596.95 $ -51, 116.45 $ 24,799.19 24,799.19 $ 53,514.63 $ -80,131.30 396,289.30 372,258.52 5,384.87 4 044.33 FUND BALANCE JUNE 30 $ The notes to the general-purpose financial statements are an integral part of this statement. -4- 449,803.93 $ ==3=0=1'='5=56=.4=2= EXHIBIT"B" CAPITAL PROJECTS FUND DEBT SERVICE FUND TOTALS (Memorandum Only) YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 20,540,292.78 $ 19,318,452.40 2,371,669.13 2,330,123.97 $ 2,169,902.81 8,094,626.14 6,282,796.73 $ 565.72 31,631.25 1,411,271.23 1,278,355.75 $ 565.72 $ 2,201,534.06 $ 32,417,859.28 $ 29,209,728.85 $ 20,244,592.84 $ 17,914,704.40 $ 59,876.99 632,170.89 599,139.45 825,874.95 577,179.51 1,705,278.64 119,905.26 1,871,638.44 1,125,306.17 272,533.96 259,070.56 1,625,908.83 8,397.88 268,468.84 688,339.99 569,480.24 711,475.84 615,802.64 1,310,987.13 83,554.29 1,591,724.53 1,079,643.72 79,052.92 155,111.89 1,551,359.49 8,235.36 4,183,212.78 $ 1,210,000.00 385,405.00 5,191.56 1,277,175.73 458,698.95 5,191.56 1,120,256.13 502,924.07 6,866.56 $ 59,876.99 $ 1,600,596.56 $ 31,876,532.46 $ 32,172,731.98 $ -59,311.27 $ 600,937.50 $ 541,326.82 $ -2,963,003.13 $ 58,797.76 $ 58,797.76 $ 32,480.50 $ 16,375.00 83,596.95 23,955.81 -83,596.95 -23,955.81 $ 32,480.50 $ 16,375.00 $ -513.51 $ 600,937.50 $ 573,807.32 $ -2,946,628.13 513.51 2,162,413.94 2,931,475.27 5,881,021.71 5,384.87 4 044.33 -2,634.94 -283.37 $======o=.o=o= $ 2,763,351.44 $ 3,514,711.79 $ 2,931,475.27 -5- MADISON 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 $ 18,871,828.84 $ 20,221,317.78 5,!:i54, 134.00 561,994.00 5,924,723.33 691,158.12 Total Revenues EXPENDITURES $ 24,987,956.84 $ 26,837,199.23 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 Community Services Operations Capital Outlay Debt Service $ 18,081,776.23 $ 18,774,295.77 576,760.00 486,458.04 796,847.36 548,245.00 1,760,449.00 120,930.00 1,830,495.00 1, 115,265.00 234,407.27 1,613.76 3,768.71 432,360.71 524,332.39 825,874.95 549,942.73 1,705,278.64 119,905.26 1,871,638.44 1,120,779.15 230,033.96 223,144.76 5,919.86 218,446.85 208,591.85 140,469.68 Total Expenditures $ 25,775,462.22 $ 26,732,568.15 Excess of Revenues over (under) Expenditures $ -787,505.38 $ 104,631.08 OTHER FINANCING SOURCES (USES} Other Sources Other Uses $ 15,579.24 $ 32,480.50 -83,596.95 Total Other Financing Sources (Uses) $ '15,579.24 $ -51, 116.45 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -771,926.14 $ 53,514.63 FUND BALANC!; JULY 1, 2000 Adjustments Food Inventory - Net Change in Period Donated Commodities Purchased Food 979,171.27 -597.51 396,289.30 SPECIAL REVENUE FUND ACTUAL (BUDGET BUDGET BASIS} $ 244,891.00 $ 318,975.00 2,487,685.77 2,371,669.13 713,532.00 687,916.14 $ 3,446,108.77 $ 3,378,560.27 $ 1,324,359.35 $ 1,470,297.07 186,270.00 145,789.00 199,810.18 74,807.06 21,133.38 27,236.78 1,340.00 42,500.00 82,549.27 1,647,738.00 12,000.00 4,527.02 42,500.00 35,925.80 1,619,988.97 8,397.88 $ 3,463,679.00 $ 3,483,490.76 $ -17,570.23 $ -104,930.49 $ 24,799.19 $ 24,799.19 $ -17,570.23 $ -80,131.30 300,580.90 372,258.52 201,189.71 5,384.87 4,044.33 FUND BALANCE JUNE 30, 2001 $ 206,647.62 $ 449.803.93 $ 484,200.38 $ 301,556.42 The notes to the general-purpose financial statements are an integral part of this statement. -6- MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE'36. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES REPORTING ENTITY The Madison County Board of Education (School District) was established under the laws of the State of Georgia and operates under the guidance of a school board elected by the voters and a 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 ~ompose its legal entity. FUND ACCOUNTING The School District uses funds and an account group to report on its financial position and the results of its 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 a(fect expendable available financial resources. General Fixed Assets are recorded as expenditures in the various funds at the time of purchase. A 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 reporting 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 and the account group presented in this report are as follows: GOVERNMENTAL FUND TYPES - are used to account for all or most of a 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. -7 - MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SPECIAL REVENUE FUND - the fund used to account for the proceeds of spedfic 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-term 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 and capital lease obligations. 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 i_n 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 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 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 salestaxes, 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. - 8- ' . ~ ~.'./.; '. .:t:: :. : .,,. ~: MADISON COUNTY BOARD OF EDUCATION NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE'30; 2001. EXHIBIT "D" Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures are generally recognized when the related fund liability is incurred. A substantial number of personnel of the School District were employed for a one hundred and ninety day period beginning in August 2000 and ending in early June 2001. Employment contracts for these employment periods typically 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 are disbursed to the School District in the same twelve month period. In accordance with generally accepted accounting principles, salary and fringe benefit expenditures and the related revenue from the State to fund these contracts are recorded in the fiscal period covered by these financial statements. BUDGET The Madison 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 govel?]Illental 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 p~ovisions 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. 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 -9- MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Madison County Board of Commissioners fixed the property tax levy for the 2000 tax year (calendar year) on December 18, 2000 (levy date). Taxes were due on March 1, 2001 (lien date). Taxes collected within the current fiscal year ~r within 60 days after year-end are reported as revenue in fiscal year 2001. The Madison County Tax Commissioner bills and collects the property taxes for the School District. Property tax revenues during the fiscal year ended June 30, 2001 for maintenance and operations amounted to $5,741,073.13 and for school bonds amounted to $670,360.54. Tax millage rates levied for the 2000 tax year (calendar year) for the Madison County Board of Education were as follows (a mill equals $1 per thousand dollars of assessed value): School Operations School Bonds 13.95 mills 1.59 mills 15.54 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 $1,478,952.67 and was recorded in ~e Debt Service Fund. The State will terminate collection of this tax once an additional $3,201,203.95 has been collected or on March 31, 2003, 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 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 arid 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 c9mponent of net current assets. - io - MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO Tiffi GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 200i Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES GENERAL OBLIGATION BONDS The School District issues general obligation bonds to provide funds for the acquisition and construction ofmajor 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 ofthe 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 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. lnterfund 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: - 11 - MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 2: DEPOSITS (1) Surety bond signed by a surety company duly qualified andauthorized to transact business within the State of Georgia, (2) Insurance on accountsprovided by the Federal 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 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 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 Banlc, the Federal Home Loan Banlc, the Federal Intermediate Credit Banlc, the Central Banlc for Cooperatives, the Farm Credit Banlcs, the Federal Home Loan Mortgage Association, and the Federal National Mortgage Association. CATEGORIZATION OF DEPOSITS At June 30, 2001, the banlc balances were $5,172,161.54. The amounts ofthe total banlcbalances 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, 2001, as follows: - 12 - {,'' MADISON COUNTY BOARD OF EDUCATION NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 EXHIBIT "D" Note 2: DEPOSITS Risk Category Bank Balance 1 $ 2,629,955.79 2 2,542,205.75 3 0.00 Total $ 5.172.161.54 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 ofassets; 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, errors or omissions and job related illness or injuries to employees. 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 it is 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 of Year Liability Claims and Changes in Estimates Claims Paid .End ofYear Liability $ 0.00 $ 8.391.00 $ 8.391.00 $ . 0.00 $ 0.00 $ 1.001.00 $ 1,001.00 $ 0.00 - 13 - . MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30. 2001 Note 4: RISK MANAGEMENT The School District has purchased surety bonds to provide additional insurance coverage as follows: Position Covered Supe' rintendent All Employees Amount $ 1,000,000.00 $ 100,000.00 Note 5: GENERAL LONG-TERM DEBT CAPITAL LEASES The Madison County Board of Education has entered into various lease agreements as lessee for a vehicle and office equipment. These lease agreements quaiify as capital leases for accounting purposes and, therefore, have been recorded at the present value of the future minimum lease payments as of the date of their inception. GENERAL OBLIGATION DEBT OUTSTANDING General Obligation Bonds currently outstanding are as follo~s: Purpose Interest Rates Amount General Government- Series 1997 3.75%-4.05% . General.Government - Refunding - Series 1993 2.75% - 5.50% $ 3,290,000.00 4.655;000.00 $7,945,000.00 . The changes in General Long-Tenn Debt during the fiscal year ended June 30, 2001, were as follows: Capital Leases General Obligation Bonds Total Balance July 1, 2000 $ 236,046.63 $ 9,155,000.00 $ 9,391,046.63 Additions Capital Leases 32,480.50 32,480.50 . Deductions Debt Retired 67.175.73 1.210.000.00 1.277.175.73 Balance June 30, 2001 $ 201,351.40 $ 7.9~5,000.Q0 $8,146,351.40 - 14 - MADISON COUNTY'BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE30,2001 Note 5: GENERAL LONG-TERM DEBT At June 30, 2001, payments due by fiscal year which includes principal and interest for these items are as follows: Fiscal Year Ended June 30 Capital Leases General Obligation Bonds Total Debt 2002 2003 2004 2005 2006 2007 - 2011 2012 $ 142,390.24 116,880.00 14,399.60 13,613.52 1,134.46 $1,714,565.00 1,776,725.00 1,661,226.25 552,526.25 554,327.50 2,776,128.75 554,850.00 $ 1,856,955.24 1,893,605.00 1,675,625.85 566,139.77 555,461.96 2,776,128.75 554,850.00 Total Principal and Interest $ 288,417.82 $ 9,590,348.75 $ 9,878,766.57 Deduct: Imputed Interest 87,066.42 Net Present Value of Future Minimum Lease Payments $ 201,351.40 Note 6: SHORT-TERM DEBT The School District obtains temporary loans in advance ofproperty tax collections, depositing the proceeds in its General Fund. This short-term debt is to provide cash for operations until property tax collections are received by the School District. Article IX, Section V, Paragraph V of the Constitution ofthe State of Georgia limits the aggregate amount of short-term debt to 75 percent of the total gross income from taxes collected in the preceding year and requires all short-term debt to be repaid no later thari December 31 of the calendar year in which the debt was incurred. Temporary Loans Beginning Balance Additions Payments Ending Balance $ Q,QQ $1.325.QQQ,QQ $1.325.0QQ,QQ $ Q,QQ Note 7: ON-BEHALF PAYMENTS The School District has recognized revenues and expenditures in the amount of $409,659.77 for health insurance and retirement contributions paid on the School District's behalfby the following State Agencies. - 15 - MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO THE GENERAL-PURPOSE FINANCIAL STATEMENTS JUNE 30, 2001 Note 7: ON-BEHALF PAYMENTS Georgia Department of Education Paid to the Georgia Department of Community Health For Health Insurance ofNon-Certified Personnel In the amount of.$316,846.42 Paid to the Teachers Retirement System of Georgia For Teachers Retirement System (TRS) Employer's Cost In the amount of $22,026.35 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 $70,787.00 Note 8: CONTINGENT LIABILITIBS 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. Note 9: RETIREMENT PLANS TEACHERS RETIREMENT SYSTEM OF GEORGIA (TRS) TR_S PLAN DESCRIPTION Substa.IJ.tially 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 ofTrustees 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: - 16 - MADISON COUNTY BOARD OF EDUCATION EXHIBIT "D" NOTES TO TIIE GENERAL-PURPOSE FINANCIAL STATEMENTS . JUNE 30. 200i Note 9: RETIREMENT PLANS Fiscal Year 2001 2000 1999 P.ercentage Contributed 100% 100% 100% Required Contribution $ 1,905,261.08 $ 1,708,196.46 $ 1,682,729.72 - 17 - MADISON 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 $ 377,917.88 1,662.55 $ 50,000.00 38,146.45 141229.31 Total Assets $ 431,956.19 $ ===5=0=,0=00==00= LIABILITIES AND FUND EQUITY LIABILITIES Cash Overdraft Accounts Payable Salaries Payable Expired Grant Balances Payable Deferred Revenue Total Liabilities FUND EQUITY Fund Balances Reserved For Continuation of Other 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. - 18 - $ $ 22,102.63 108,297.14 50,000.00 $ 1301399.77 $ 50,000.00 $ 38,146.45 14,229.31 2491180.66 $ 0.00 $ 301,556.42 $ 0.00 $ 431,956.19 $ ===5=0=,0=00===00=== EXHIBIT"E" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 10,149.59 $ 3,410.02 $ 391,477.49 $ 454,302.38 193,750.25 245,412.80 259,142.60 38,146.45 14,229.31 32,761.58 10,184.98 $ 203,899.84 $ 3,410.02 $ 689,266.05 $==7=5=6=,3=9=1-.5...4= $ 41,337.68 158,098.01 512.41 3 951.74 $. $ 203,899.84 $ $ 3,410.02 3,410.02 $ 50,000.00 $ 63,440.31 266,395.15 512.41 7,361.76 387,709.63 $ 62,874.54 70,757.31 249,695.17 806.00 . 384,133.02 $ 75,000.00 $ 38,146.45 14,229.31 32,761.58 10,184.98 $ 0.00 $ 0.00 249,180.66 254,311.96 $ 0.00 $ 0.00 $ 301,556.42 $ 372,258.52 $ 203,899.84 $ 3,410.02 $ 689,266.05 $ ==7=5=6=,3=91=.54= - 19 - MADISON 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 School Administration Student Transportation Services Central Support Services Other Support Services Food Services Operation Community Services Operations Total Expenditures Excess of Revenues over (under) Expenditures OTHER FINANCING SOURCES Operating Transfers In Excess of Revenues and Other ~inancing 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 $ 124,834.00 $ 873,697.51 616,326.16 $ 1,614,857.67 $ 194,141.00 194141.00 $ 195,553.98 $ 1,619,988.97 $ 1,619,988.97 $ $ -5,131.30 $ 195,553.98 -1A12.98 0.00 $ -5,131.30 $ 297,258.52 5,384.87 4 044.33 1 412.98 0.00 0.00 $ 301,556.42 $ ====0==00= See notes to the general-purpose financial statements. -20- EXHIBIT"F" FEDERAL PROGRAMS OTHER PROGRAMS TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 $ 1,497,971.62 $ $ 1,497,971.62 $ $ 71,589.98 71,589.98 $ 318,975.00 $ 2,371,669.13 687,916.14 3,378,560.27 $ 333,623.82 2,330,123.97 649,238.37 3,312,986.16 $ 1,274,743.09 53,220.20 $ 74,807.06 27,236.78 4,527.02 42,500.00 35,925.80 8,397.88 $ 1,521,357.83 $ $ -23,386.21 $ $ 146,589.98 146,589.98 $ -75,000.00 $ 1,470,297.07 $ 199,810.18 74,807.06 27,236.78 4,527.02 42,500.00 35,925.80 1,619,988.97 8,397.88 3,483,490.76 $ -104,930.49 $ 1,532,860.12 37,461.06 75,235.68 25,473.62 199.80 3,676.93 33,979.50 49,316.25 1,530,678.90 8,235.36 3,297,117.22 15,868.94 23,386.21 0.00 24,799.19 23,955.81 . $ 0.00 $ -75,000.00 $ -80,131.30 $ 39,824.75 0.00 75,000.00 372,258.52 335,352.08 5,384.87 4 044.33 -2,634.94 -283.37 $ 0.00 $ 0.00 $ 301,556.42 $ ====3=7=2=,2=58=.5=2= - 21 - MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET CAPITAL PROJECTS FUND JUNE 30. 2001 EXHIBIT"G" ASSETS Cash and Cash Equivalents Accounts Receivable BOND LOTTERY PROCEEDS PROJECT TOTALS JUNE 301 2001 JUNE 301 2000 $ 0.00 $ 0.00 $ 0.00 $ 66,307.71 129,593.80 Total Assets $ 0.00 $ 0.00 $ 0.00 $ ===19=5=.9=0=1.=51= LIABILITIES AND FUND EQUITY LIABILITIES Retainages Payable FUND EQUITY Fund Balances Reserved For Purposes of Bond Issue Unreserved Undesignated $ Total Fund Equity $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ Total Liabilities and Fund Equity $ 0.00 $ 0.00 $ $ 195,388.00 $ 0.00 0.00 $ 513.51 0.00 513.51 s o.oo ==19=5='9=0=1=.5=1 See notes to the general-purpose financial statements. - 22- MADISON COUNTY BOARD OF EDUCATION COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES CAPITAL PROJECTS-FUND YEAR ENDED JUNE 30, 2001 EXHIBIT"H" BOND PROCEEDS LOTTERY PROJECT TOTALS YEAR ENDED JUNE 30, 2001 JUNE 30, 2000 REVENUES State Funds Other Funds $ 564.38 $ 1.34 $ $ 565.72 1,295,938.00 57 476.70 Total Revenues $ 564.38 $ 1.34 $ 565.72 $ 1,353,414.70 EXPENDITURES Current Support Services Business Administration Capital OuUay Building and Building Improvements $ 51.70 $ 0.00 $ 59,876.99 $ 59,876.99 3,893,081.50 Total Expenditures $ 0.00 $ 59,876.99 $ 59,876.99 $ 3,893,133.20 Excess of Revenues over (under) Expenditures $ 564.38 $ -59,875.65 $ -59,311.27 $ -2,539,718.50 OTHER FINANCING SOUBCES (USES) Operating Transfers In Operating Transfers Out $ 59,875.65 $ 59,875.65 $ 1,878,340.58 $ -1 077.89 -1 0TT.89 -1,878,340.58 . Total Other Financing Sources (Uses) $ -1 077.89 $ 59,875.65 $ 58,797.76 $ 0.00 Excess of Revenues and Other Financing Sources over (under) Expenditures and Other Financing Uses $ -513.51 $ 0.00 $ -513.51 $ -2,539,718.50 FUND BALANCE JULY 1 513.51 0.00 513.51 2,540,232.01 FUND BALANCE JUNE 30 $ 0.00 $ 0.00 $ 0.00 $ 513.51 See notes to the general-purpose financial statements. MADISON COUNTY BOARD OF EDUCATION COMBINING BALANCE SHEET DEBT SERVICE FUND JUNE 30, 2001 EXHIBIT"!" ASSETS Cash and Cash Equivalents .Accounts Receivable Total Assets FUND EQUITY Fund Balances Reserved For Debt Service Unreserved Undesignated Total Fund Equity PROPERTY TAXES FOR BOND'DEBT SPECIAL PURPOSE LOCAL OPTION SALES TAX TOTALS JUNE 30, 2001 JUNE 30, 2000 $ 483,749.81 $ 1,955,450.02 $ 2,439,199.83 $ 1,894,753.68 38,381.20 285,770.41 324,151.61 267,660.26 $ 522,131.01 $ 2,241,220.43 $ 2,763,351.44 $ 2,162,413.94 $ 522,131.01 $ 0.00 2,241,220.43 $ 0.00 2,763,351.44 $ 0.00 2,162,413.94' 0.00 $ 522,131.01 $ 2,241,220.43 $ 2,763,351.44 $ 2,162,413.94 See notes to the general-purpose financial statements. -24- MADISON 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 301 2001 JUNE301 2000 $ 690,950.14 $ 6,761.02 1,478,952.67 $ 2,169,902.81 $ 1,930,744.97 24,870.23 31,631.25 25,023.98 $ 697,711.16 $ 1,503,822.90 $ 2,201,534.06 $ 1,955,768.95 $ 300,000.00 $ 236,795.00 2,016.56 910,000.00 $ 148,610.00 3,175.00 1,210,000.00 $ 385,405.00 5.191.56 1,070,000.00 429,119.98 6,866.56 $ 538,811.56 ,$ 1,061,785.00 $ 1,600,596.56 $ 1,505,986.54 $ 158,899.60 $ 442,037.90 $ 600,937.50 $' 449,782.41 363,231.41 1,799,182.53 2.162.413.94 1,712,631.53 FUND BALANCE JUNE 30 $ 522,131.01 $ 2,241,220.43 $ 2,763,351.44 $ 2,162,413.94 See notes to the general-purpose financial statements. -25- MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" FUNDING AGENCY PROGRAM/GRANT CFDA NUMBER PASS THROUGH 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 Nutritior:i Program Food Services School Breakfast Program National School Lunch Program . . 10.553 . 10.555 N/A $ 202,453.23 (2) NIA 563,795.30 $ 1,512,539.99 (3) Total Child Nutrition Cluster $ 766,248.53 $ 1,512,539.99 Other Programs Pass-Through From Georgia Department of Education Food and Nutrition Program Food Distribution Program (1) 10.550 NIA Fresh Produce Program (1) 10.550 N/A 91,009.98 16,439.00 91,009.98 16,439.00 Total U.S. Department of Agriculture $ 873,697.51 $ 1,619,988.97 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 Preschool Capacity Building Improvement . 84.027 . 84.173 . 84.173 NIA $ 489,863.68 $ NIA 56,753.30 NIA 13,153.00 490,840.20 (3) 56,753.30 13,155.30 (3) Total Special Education Cluster $ 559,769.98 $ 560,748.80 Other Programs Pass-Through From Georgia Department of Eaucation Elementary and Secondary Education Act TiUel Grants to Local Educational Agencies 84.010 NIA Title II Eisenhower Professional Development 84.281 N/A Title Ill Technology Literacy Challenge Fund Grants 84.318 NIA Title VI Innovative Education Program Strategies 84.298 NIA .Class Size Reduction 84.340 NIA Goals 2000 State and Local Education Systemic Improvement Grants 84.276 NIA Safe and Drug-Free Schools and Communities 84.186 NIA Vocational Education Basic Grants to States High School Program Basic Grant 84.048 NIA 644,899.82 15,301.71 90,147.37 27,356.00 106,693.00 20,372.42 33,431.32 644,899.82 15,301.71 90,147.37 27,356.00 124,063.71 (3) 2,302.51 (3) 20,372.42 36,165.49 (3) Total U.S. Department of Education $ 1,497,971.62 $ 1,521,357.83 Total Federal Financial Assistance N/A = Not Available 26- $ 2,371,669.13 $ 3,141,346.80 MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED JUNE 30, 2001 SCHEDULE "1" Notes to the Schedule of Expenditures of Federal Awards (1) The amounts shown for the Food Distribution Program and the Fresh Produce 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. Major Programs are Identified by an asterisk (0 ) 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 Madison 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 generai.purpose financial statements. -27- MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF STATE REVENUE YEAR ENDED JUNE 30, 2001 SCHEDULE "2" AGENCY/FUNDING GRANTS 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-:12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program Media Center Program Staff and Professional Development Indirect Cost Categorical Grants Pupil Transportation Regular Bus Replacement Nursing Services Principal Supplements Vocational Supervisors Deferred Summer Salaries (Prior Year) Deferred Summer Salaries (Current Year) Education Equalization Funding Grant Food Services Vocational Education Other State Programs At-Risk Summer School Program Health Insurance Innovative Programs Mentor Teachers Preschool Handicapped Program Remedial Summer School Teachers' Retirement Lottery Programs Agriculture Technology Program High School Computers in the Classroom Office of Treasury and Fiscal Services Public School Employees Retirement CONTRACTS Education, Georgia Department of Reading First Program Human Resources, Georgia Department of Family Connection GOVERNMENTAL FUND TYPES SPECIAL GENERAL REVENUE FUND FUND TOTAL $ 935,648.00 157,215.00 2,642,552.00 581,464.00 1,339,889.00 2,125,287.00 1,620,657.00 769,087.00 212,838.00 429,451.00 1,558,190.00 335,888.00 11.~72.00 466,347.00 275,643.00 173,901.00 420,172.00 117,940.00 2,569,463.00 $ 935,648.00 157,215.00 2,642,552.00 581,464.00 1,339,889.00 2,125,287.00 1,620,657.00 169,087.00 212,838.00 429,451.00 1,558, 190.00 335,888.00 11,672.00 466,347.00 275,643.00 173,901.00 420,172.00 117,940.00 2,569,463.00 728,767.00 214,271.00 104,547.00 19,554.00 30,613.00 -2,276, 193.00 2,588, 195.03 1,346,910.00 $ 90,717.64 6,590.35 316,846.42 5,000.00 4,401.00 68,225.00 4,531.99 22,026.35 124,834.00 100,000.00 94,141.00 728,767.00 214,271.00 104,547.00 19,554.00 30,613.00 -2,276, 193.00 2,588, 195.03 1,346,910.00 124,834.00 90,717.64 6,590.35 316,846.42 5,000.00 4,401.00 68,225.00 4,531.99 22,026.35 100,000.00 94,141.00 70,787.00 70,787.00 82,224.00 50,000.00 82,224.00 50,000.00 See notes to the general-purpose financial statements. $ 20,221,317.78 $ 318,975.00 $ 20,540,292.78 -28- MADISON COUNTY BOARD OF EDUCATION SCHEDULE OF APPROVED LOCAL OPTION SALES TAX PROJECTS YEAR ENDED JUNE 30, 2001 SCHEDULE 3 PROJECT ORIGINAL ESTIMATED COST (1) CURRENT ESTIMATED COSTS (2) AMOUNT EXPENDED IN CURRENT YEAR (3) AMOUNT EXPENDED IN PRIOR YEARS (3) PROJECT STATUS Retiring a portion of the previously incurred 1993 general obligation debt of the school district of not.more than $1,625,000.00. $ 1,625,000.00 $ 1,625,000.00 $ 0.00 $ 0.00 Ongoing Addition to and the renovation, repair, improvement and equipping of existing school buildings and other buildings and facilities useful or desirable in connection therewith, lnduding, but not limited to, the addition of new dassrooms and technology infrastructure, the acquisition, construction and equipping of school buildings and other buildings or facilities useful or desirable in connection therewith; a new elementary school; and the acquisition of real and personal property in connection with these projects. The spending limit on these projects is $6,000,000.00. 6,000,000.00 7,2951938.00 208,486.99 6,919,808.27 Ongoing $ 7,625,000.00 $ 8,920,938.00 $ 208,486.99 $ 6,919,808.27 (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 the projects. lndudes all cost from project inception to completion. (3) The voters of Madison County approved the imposition of a 1% sales tax to fund the above projects and retire associated debt. Amounts expended for these projects may indude sales tax proceeds, state, local property taxes and/or other funds over the life of the projects. See notes to the general-purpose financial statements. -29- MADISON COUNTY BOARD OF EDUCATION GENERAL FUND QUALITY BASIC EDUCATION PROGRAM (QBE} ALLOTMENTS AND EXPENDITURES BY PROGRAM YEAR ENDED JUNE 30, 2001 SCHEDULE "4" DESCRIPTION ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS SALARIES OPERATIONS TOTAL 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 Grades (6-8) Program High School General Education (9-12) Program Vocational Laboratory (9-12) Program Students with Disabilities Category I Category II Category Ill Category IV CategoryV Gifted Student - Category VI Remedial Education Program Alternative Education Program 1,040,718.00 $ 174,870.00 2,939,302.00 646,761.00 1,490,354.00 2,363,950.00 1,802,651.00 855,453.00 2,834,173.00 518,717.00 306,597.00 193,430.00 1,236,275.57 $ 160,507.69 3,089,725.05 373,073.28 1,806,198.50 2,404,555.62 2,451,951.32 711,269.77 336,399.09 542,141.55 1,792,325.10 18,231.85. 11,260.21 405,587.13 283,595.28 216,989.22 14,536.25 $' 1,250,811.82 160,507.69 65,180.11 3,154,905.16 373,073.28 42,280.77 1,848,479.27 , 34,040.94 2,438,596.56 37.,252.58 2,489,203.90 125,392.71 836,662.48 8,038.89 8,270.56 30,730.69 3,355.99 634.42 8,310.31 4,773.08 1,994.20 344,437.98 550,412.11 1,823,055.79 21,587.84 11,894.63 413,897.44 288,368.36 218,983.42 TOTAL DIRECT INSTRUCTIONAL PROGRAMS $ 15,166,976.00 $ 15,840,086.23 $ 384,791.50 $ 16,224,877.73 Media Center Program Staff and Professional Development 467,357.00 131,184.00 647,368.48 34,228.63 147,744.85 97,236.93 795,113.33 131,465.56 TOTAL QBE FORMULA FUNDS $ 15,765,517.00 $ 16,521,683.34 $ 629,773.28 $ 17,151,456.62 (1) Comprised of State Funds plus Local Five Mill Share. See notes to the general-purpose financial statements. 30- MADISON COUNTY BOARD OF EDUCATION GENERAL FUND - QUALITY BASIC EDUCATION PROGRAM {QBE) ALLOTMENTS AND EXPENDITURES - BY SITE YEAR ENDED JUNE 30, 2001 SCHEDULE "5" Hull-Sanford Elementary School Danielsville Elementary School Colbert Elementary School Madison County Middle School Comer Elementary School Ila Elementary School Madison County High School Alternative School Central Office (Alternative Education Program) Transportation Facility TOTAL (1) Comprised of State Funds plus Local Five Mill Share. ALLOTMENTS FROM GEORGIA DEPARTMENT OF EDUCATION (1) ELIGIBLE QBE PROGRAM COSTS $ 1,139,045.00 $ 1,102,359.00 2,161,888.00 2,338,610.50 1,587,899.00 1,823,265.18 3,303,505.00 3,262,096.07 1,328,942.00 1,362,107.66 1,633,439.00 1,803,747.70 3,818,828.00 4,117,825.65 184,300.08 193,430.00 163,189.30 67,376.59 $ 15,166,976.00 $ 16,224,877.73 See notes to the general-purpose financial statements. - 31 - SECTION II COMPLIANCE AND INTERNAL CONTROL REPORTS RussELL W. H1NTON STATE AUDITOR (404) 656-2174 DEPARTMENT OF AUDITS AND ACCOUNTS 254 Washington Street, S.W., Suite 214 Atlanta, Georgia 30334-8400 July 2, 2002 Honorable Roy E. Barnes, Governor Members of the General Assembly Members of the State Board of Education and Superintendent and Members of the Madison 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 of Madison County Board of Education as of and for the year ended June 30, 2001, and have issued our report thereon dated July 2, 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 Madison 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 ofour 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 and performing our audit, we considered Madison 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 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 Madison County Board ofEducation'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-6951-01-02. 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-6951-01-02 to be a material weakness. This report is intended solely for the information and use of the management, members of the Madison 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, r--:)~